Document:

Unassociated Document

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT AGREEMENT (the “Agreement”) entered into
effective the 1st day of
September 2010 (the “Effective
Date”), is by and between Desert Hawk Gold Crop., a corporation formed
under the laws of the State of Nevada (the “Employer”), and Rick
Havenstrite (the “Employee”).

    

    RECITALS:

    

    WHEREAS, the Employer desires to engage
the services of the Employee as President, and the Employee is willing to render
such services to the Employer in consideration of the terms and conditions
agreed to by the parties; and

    

    WHEREAS, the Board of Directors of the
Employer (the “Board”)
has approved the employment of the Employee on the terms and conditions set
forth in this Agreement;

    

    NOW THEREFORE, in consideration of the
mutual covenants and promises contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, the Employer agrees to employ the Employee, and the Employee
agrees to perform services for the Employer as an employee, upon the terms and
conditions set forth herein.

    

    
      	
              1.

            	
              TERM.

            

    

    

    The initial term of this Agreement
shall commence on the Effective Date and shall be for a period of four (4) years
(the “Initial Term”),
unless it is terminated earlier as provided herein.  Beginning on
expiration of the Initial Term, and on each anniversary thereafter, unless it is
terminated earlier as provided herein or unless the Employer delivers written
notice to the Employee of its intention not to extend the Agreement at least
ninety (90) days before the expiration of the Initial Term or any anniversary
date thereafter, the term of this Agreement shall automatically be extended for
unlimited additional one-year terms (the Initial Term and any extension or
extensions are referred to herein as the “Employment
Term”).  The terms of this Agreement shall be binding upon the
parties hereto from the Effective Date throughout the Employment
Term.  The restrictive covenants in Section 4(c) and in Section 9
hereof shall survive the termination of this Agreement.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    2.           TITLE
AND DUTIES.

    

    The Employee shall be employed as the
President of the Employer.  The Employee shall perform such services
consistent with his position as might be assigned to him from time to time by
the Board or the CEO and are consistent with the bylaws of the Employer,
including, but not limited to, service for any subsidiary, partnership, limited
liability company, joint venture, trust or other enterprise or entity controlled
by the Employer.  The Board has appointed the Employee to serve as the
President and Employee shall have such responsibilities and authority as is
commensurate with such office and as may be prescribed by the Board and bylaws
of the Employer.  The Board shall have the right to review and change
the duties, responsibilities, and functions of Employee from time to time as it
may deem necessary or appropriate; provided, however, that such duties,
responsibilities, and functions remain consistent with the Employees status as a
senior executive officer of the Employer.  The Employee shall report
directly to the CEO.

    

    
      	
              3.

            	
              LOCATION.

            

    

    

    The Employee’s place of employment
shall be in the Reno, Nevada, area and at the mining properties owned or
controlled by the Employer from time-to-time.

    

    4.           EXTENT
OF SERVICES.

    

    a.           Duty to Perform
Services.

    

    The Employee agrees not to engage in
any material business activities during the term of this Agreement except those
that are for the benefit of the Employer and its subsidiaries, and to devote not
less than 75% of his entire business time, attention, skill, and effort to the
performance of his duties under this Agreement for the Employer and any
corporation controlled by the Employer now or during the term of this
Agreement.  Notwithstanding the foregoing, the Employee may engage in
charitable, professional and civic activities that do not impair the performance
of his duties to the Employer, as the same may be changed from time to
time.  In addition, Employee may serve on the board of directors of up
to three companies not engaged in business which may reasonably compete with the
business of the Employer, provided that Employee shall not be required to render
any material services with respect to the operations or affairs of any such
company which would exceed 25% of his entire business time.  Nothing
contained herein shall prevent the Employee from managing his own personal
investments and affairs, including, but not limited to, investing his assets in
the securities of publicly traded companies; provided, however, that the
Employee’s activities do not constitute a conflict of interest, violate
securities laws, or otherwise interfere with the performance of his duties and
responsibilities as described herein.  The Employee agrees to adhere
to the Employer’s published policies and procedures, guidelines, and code of
conduct, as each is adopted from time to time, affecting directors, officers,
employees, and agents and shall use his best efforts to promote the Employer’s
interest, reputation, business and welfare.

    

    b.           Corporate
Opportunities.

    

    The Employee agrees that he will not
take personal advantage of any the Employer business opportunities that arise
during his employment with the Employer and that might be of benefit to the
Employer.  All material facts regarding such opportunities shall be
promptly reported to the Board for consideration by the
Employer.

    
      
         

      

      
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    c.           Non-Disparagement.

    

    The Employee agrees that, during the
Employment Term and for one year thereafter, he shall not, in any communications
with the press or other media or any customer, client or supplier of the
Employer, or any of Employer’s affiliates, criticize, ridicule or make any
statement which disparages or is derogatory of the Employer or its affiliates or
any of their respective directors or senior officers.

    

    5.           COMPENSATION
AND BENEFITS.

    

    a.           Base
Salary.

    

    The
Employee’s annual base salary shall be $120,000 (the “Initial Base
Salary”).  The base salary shall be payable in equal
installments in accordance with the Employer’s standard payroll
practices.  The Employee’s annual base salary shall be further
reviewed no less frequently than annually for increases in the discretion of the
Compensation Committee and/or Board, taking into account the compensation level
for employees with similar skills and responsibilities at companies comparable
to the Employer, the financial condition of the Employer, and the Employee’s
value to the Employer relative to other members of the executive management of
the Employer; provided, however, that at no time during the term of this
Agreement shall the Employee’s base salary be decreased from the base salary
then in effect except as part of an general program of salary adjustment by the
Employer applicable to all vice presidents and above.

    

    b.           Performance
Compensation.

    

    Employee
will be eligible to receive an annual bonus of a minimum of 10% and a maximum of
100% of the then applicable base salary, less applicable withholding taxes, upon
achievement of annual performance objectives to be determined in good faith by
the Compensation Committee or the Board and the Employee, which objectives for
the first year of this Agreement will be established within thirty (30) days of
the Effective Date.  Objectives for subsequent years will be
determined as set forth herein within thirty (30) days of each anniversary of
this Agreement.  Bonus payments will be paid to the Employee not later
than thirty (30) days following achievement of annual performance objectives,
but in no event later than thirty (30) days following each anniversary of this
Agreement.  At the option of the Employee, such bonus payments may be
paid in cash or in shares of common stock of the Company at the fair market
value on the date the bonus is earned.

    

    c.           Other
Benefits.

    

    During
the Employment Term, Employee will be entitled to participate in the employee
benefit plans currently and hereafter maintained by the Employer of general
applicability to other senior executives of the Employer, including, without
limitation, the Employer’s group medical, dental, vision, disability, life
insurance, flexible-spending account, 401(k) and other plans.  The
Employee shall be entitled to reimbursement for mileage at a reasonable
rate.

    
      
         

      

      
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    d.           Withholding
Taxes.

    

    The
Employer may make any appropriate arrangements to deduct from all benefits
provided hereunder any taxes reasonably determined to be required to be withheld
by any government or government agency.  The Employee shall bear all
taxes on benefits provided hereunder to the extent that no taxes are withheld,
irrespective of whether withholding is required.

    

    e.           Vacation and Sick
Leave.

    

    Employee will be entitled to paid
vacation of four (4) weeks per year in accordance with the Employer’s vacation
policy, with the timing and duration of specific vacations mutually and
reasonably agreed to by the parties hereto.  Any accrued but unused
vacation time at the expiration of this Agreement shall be payable to the
Employee upon expiration of this Agreement at the then applicable base salary
rate, except as provided in Section 6(c) and (e) hereof.  The Employee
shall be entitled to sick leave in accordance with the sick leave policy adopted
by the Employer from time to time for senior executives.

    

    f.      
     Reimbursement of
Business Expenses.

    

    The
Employer shall promptly reimburse the Employee for all reasonable travel,
entertainment and other expenses incurred or paid by the Employee in connection
with, or related to, the performance of his duties, responsibilities or services
under this Agreement, upon presentation by the Employee of such supporting
information and documentation as the Employer may reasonably request in
accordance with company policy and the requirements of the Internal Revenue
Code.

    

    6.           TERMINATION
OF EMPLOYMENT.

    

    a.           Termination Due
to Death.

    

    The
Employee’s employment and this Agreement shall terminate immediately upon his
death.  If the Employee’s employment is terminated due to his death,
his estate or his beneficiaries, as the case may be, shall be entitled
to:

    

    (i)           payment
of any unpaid portion of his base salary through the date of such
termination;

    

    (ii)          reimbursement
for any outstanding reasonable business expenses he incurred in performing his
duties hereunder;

    

    (iii)         the
right to elect continuation coverage of insurance benefits to the extent
required by law;

    

    (iv)         full
and immediate vesting of any unexercised stock options or restricted stock
grants;

    
      
         

      

      
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    (v)         any
pension survivor benefits that may become due pursuant to any employee benefit
plan or program of the Employer; and

    

    (vi)        payment
of any accrued but unpaid benefits, and any other rights, as required by the
terms of any employee benefit plan or program of the Employer, this Agreement,
or any other agreement between the Employer and the Employee.

    

    b.           Termination Due
to Disability.

    

    The
Employer may terminate the Employee’s employment at any time if the Employee
becomes disabled, upon written notice by the Employer to the
Employee.  For all purposes under this Agreement, “Disability” shall
mean that the Employee, at the time the notice is given, has been unable to
perform his duties under this Agreement for a period of not less than ninety
(90) days during any 180-day period as a result of the Employee’s incapacity due
to physical or mental illness.  If the Employee’s employment is
terminated due to his disability, he shall be entitled to:

    

    (i)          payment
of any unpaid portion of his base salary through the date of such
termination;

    

    (ii)         reimbursement
for any outstanding reasonable business expenses he has incurred in performing
his duties hereunder;

    

    (iii)        the
right to elect continuation coverage of insurance benefits to the extent
required by law;

    

    (iv)        full
and immediate vesting of any unexercised stock options or restricted stock
grants; and

    

    (v)         payment
of any accrued but unpaid benefits, and any other rights, as required by the
terms of any employee benefit plan or program of the Employer, this Agreement,
or any other agreement between the Employer and the Employee.

    

    As soon
as administratively possible following the Effective Date, the Employer shall
make available to the Employee, and other similarly-situated employees, a
disability benefit plan, paid by the Employer, that provides monthly payments to
Employee equal to at least two thirds (2/3) of the highest monthly base salary
Employee receives pursuant to this Agreement, which payment will continue for as
long as Employee remains disabled.

    
      
         

      

      
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    c.           Termination for
Cause.

    

    The
Employer may terminate the Employee’s employment at any time for Cause, provided
that it gives written notice of termination to the Employee as set forth
below.  If the Employee’s employment is terminated for Cause, as
defined below, he shall be entitled to:

    

    (i)          
payment of any unpaid portion of his base salary through the date of such
termination;

    

    (ii)      
   reimbursement for any outstanding reasonable business expenses
he incurred in performing his duties hereunder through the date of such
termination; and

    

    (iii)         the
right to elect continuation coverage of insurance benefits to the extent
required by law.

    

    If the
Employee shall be terminated for Cause under this Section 6(c), any of any
accrued but unpaid benefits, including, but not limited to, any performance
compensation under Section 5(b) hereof or any accrued but unused vacation time
under Section 5(e) hereof, and any other rights through the date of termination,
including any severance package benefits, as required by the terms of any
employee benefit plan or program of the Employer, this Agreement, or any other
agreement between the Employer and the Employee, shall be forfeited and the
Employer shall have no obligation to pay such amounts.

    

    For
purposes of this Agreement, a termination for “Cause”
shall mean:  (i) the final conviction of Employee of, or Employee’s
plea of guilty or nolo
contendere to, any felony or a crime involving dishonesty, fraud, or
moral turpitude; (ii) the indictment of Employee for any felony or a crime
involving dishonesty, fraud, or moral turpitude which, in the reasonable
good-faith judgment of the Board, has materially damaged, or could materially
damage, the reputation of the Employer or would materially interfere with the
performance of services by the Employee; (iii) the willful commission of fraud,
nonincidental misappropriation, embezzlement, or other dishonest act by Employee
against the Employer; (iv) Employee’s use of illegal drugs or alcohol on the
Employer’s premises, Employee’s use of illegal drugs or alcohol having an
adverse effect on the performance of the Employee’s duties hereunder, or
Employee’s use of illegal drugs or alcohol which, in the reasonable good-faith
judgment of the Board, has materially damaged, or could materially damage, the
reputation of the Employer; (v) Employee’s willful failure, gross negligence, or
gross misconduct in the performance of his duties to the Employer; (vi)
Employee’s gross malfeasance in the performance of his duties hereunder; (vii)
Employee’s nonfeasance in the performance of his duties hereunder not cured
within ten (10) business days after notice of such nonfeasance; (viii)
Employee’s failure to follow a written order which is both legal and reasonable;
or (ix) Employee’s breach of this Agreement not cured within ten (10) business
days after notice of such breach.

    
      
         

      

      
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    If the
Employer exercises its right to terminate the Employee for Cause, the Employer
shall: (1) give the Employee written notice of termination at least ten (10)
business days before the date of such termination specifying in detail the
conduct constituting such Cause, and (2) deliver to the Employee a copy of a
resolution duly adopted by a majority of the entire membership of the Board,
excluding interested directors, after reasonable notice to the Employee and an
opportunity for the Employee to be heard in person by members of the Board,
finding that the Employee has engaged in such conduct.

    

    
      	
               
      

            	
              d.

            	
              Termination
      Without Cause or Constructive Termination Without
      Cause.

            

    

    

    The
Employer may terminate the Employee’s employment at any time without Cause,
provided that it gives written notice of termination at least ninety (90) days
before the date of such termination.  If the Employee’s employment is
terminated without Cause, or if there is a constructive termination without
Cause, as defined below, the Employee shall be entitled to receive from the
Employer the following:

    

    (i)          payment
of any unpaid portion of his base salary through the date of such
termination;

    

    (ii)         reimbursement
for any outstanding reasonable business expenses he incurred in performing his
duties hereunder;

    

    (iii)        the
right to elect continuation coverage of insurance benefits to the extent
required by law;

    

    (iv)        full
and immediate vesting of any unexercised stock options or restricted stock
grants;

    

    (v)        
payment of any accrued but unpaid benefits, and any other rights, as required by
the terms of any employee benefit plan or program of the Employer, this
Agreement, or any other agreement between the Employer and the
Employee;

    

    (vi)        payment
of amounts equal to any premiums for health insurance continuation coverage
under any the Employer health plans that is elected by the Employee or his
beneficiaries pursuant to Section 4980B of the Internal Revenue Code, at a time
or times mutually agreed to by the parties, but only so long as the Employee is
not eligible for coverage under a health plan of another employer (whether or
not he elects to receive coverage under that plan); and

    

    (vii)      subject
to limitations set forth below, a severance benefit in an amount equal to three
(3) times the Initial Base Salary if such termination occurs on or before August
31, 2011, and one and one-half (11⁄2) times the largest annual base salary plus
the largest annual performance compensation pursuant to Section 5(b) hereof
received by Employee under the Agreement if such termination occurs after August
31, 2011, but only if (x) Employee executes an agreement releasing the Employer
from any further liability under this Agreement, (y) the period for revoking
such release has expired, and (z) Employee has not materially breached the
Confidential Information Agreement.

    
      
         

      

      
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    The
Employee shall be deemed to have earned and the Employer shall pay to Employee
75% of the total severance benefit in Section 6(d)(vii) above within thirty (30)
days after all of the applicable conditions are satisfied.  The
remaining 25% of the severance benefit will be deemed earned by Employee, and
the Employer shall pay to Employee such remaining 25% of the severance benefit
within thirty (30) days following the first anniversary of the Employee’s
termination date unless the Employee materially breaches the Confidential
Information Agreement during the one year period following the Employee’s
termination date, in which case such remaining 25% of the severance benefit will
be deemed unearned and will not be paid.  All severance benefits paid
to the Employee shall be paid subject to all legally required payroll deductions
and withholdings for sums owed by the Employer to the Employee.

    

    For
purposes of this Agreement, constructive termination without Cause shall mean a
termination of the Employee at his own initiative following the occurrence,
without the Employee’s prior written consent, of one or more of the following
events not on account of Cause:

    

    
      	
               
      

            	
              (1)

            	
              a
      material reduction in the Employee’s then current base
    salary;

            

    

    

    
      	
               
      

            	
              (2)

            	
              a
      material diminution in the Employee’s authority, duties, or
      responsibilities;

            

    

    

    
      	
               
      

            	
              (3)

            	
              a
      material diminution in the budget over which the Employee retains
      authority;

            

    

    

    
      	
               
      

            	
              (4)

            	
              a
      material change in the geographic location at which the Employee must
      perform the services hereunder; or

            

    

    

    
      	
               
      

            	
              (5)

            	
              any
      other action or inaction which constitutes a material breach by the
      Employer of this Agreement.

            

    

    

    In the
event the Employee is terminated without Cause or there is a constructive
termination without Cause, the Employee shall provide the Employer with written
notice within ninety (90) days of the event and the Employer shall have thirty
(30) days to cure the default.

    

    e.           Voluntary
Termination.

    

    If the
Employee voluntarily terminates his employment on his own initiative for reasons
other than his death, disability, or constructive termination without Cause, he
shall be entitled to:

    

    (i)           payment
of any unpaid portion of his base salary through the effective date of such
termination;

    

    (ii)          reimbursement
for any outstanding reasonable business expenses he has incurred in performing
his duties hereunder;

    
      
         

      

      
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    (iii)   
     the right to elect continuation coverage of
insurance benefits to the extent required by law; and

    

    (iv)        any
of any accrued but unpaid benefits and any other rights through the date of
termination, excluding any severance package benefits or accrued vacation time,
as required by the terms of any employee benefit plan or program of the
Employer, this Agreement, or any other agreement between the Employer and the
Employee.

    

    A
voluntary termination under this paragraph shall be effective upon thirty (30)
days’ prior written notice to the Employer unless the parties mutually agree to
extend the effective date.

    

    7.          
MITIGATION AND OFFSET.

    

    If the
Employee’s employment is terminated during the term of this Agreement pursuant
to the provisions of paragraph 6(d), above, the Employee shall be under no duty
or obligation to seek or accept other employment, and no payment or benefits of
any kind due him under this Agreement shall be reduced, suspended or in any way
offset by any subsequent employment.  The obligation of the Employer
to make the payments provided for in this Agreement shall not be affected by any
circumstance including, by way of example rather than limitation, any set-off,
counterclaim, recoupment, defense, or other right that the Employer may assert,
or due to any other employment or source of income obtained by the
Employee.

    

    8.          
ENTITLEMENT TO OTHER BENEFITS.

    

    Except as
expressly provided herein, this Agreement shall not be construed as limiting in
any way any rights or benefits the Employee, his spouse, dependents or
beneficiaries may have pursuant to any other employee benefits plans or
programs.

    

    
      9.         
CONFIDENTIALITY, INVENTIONS, AND CONFLICT OF INTERESTS
POLICY.

    

    

    Employee
agrees to abide by the terms of the Confidential Information and Invention
Assignment Agreement attached hereto as Exhibit A (the “Confidential
Information Agreement”) upon commencing employment
hereunder.

    

    
      10.        
CHANGE OF CONTROL

    

    

    In the
event of merger, consolidation, or similar transaction in which the Employer is
not the survivor, or the sale of all or substantially all of the assets of the
Employer, the Employer shall cause the survivor or the transferee to expressly
assume in writing the liabilities, obligations, and duties of the Employer under
this Agreement and shall provide a copy of such written assumption to the
Employee not less than ten (10) business days prior to the consummation of such
merger, consolidation, or similar transaction, or the sale of all or
substantially all of the assets of the Employer.

    
      
         

      

      
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    11.           ARBITRATION.

    

    Any
dispute or controversy arising under or in connection with this Agreement shall,
if the Employer or the Employee so elects, be settled by arbitration, in
accordance with the Commercial Arbitration Rules procedures of the American
Arbitration Association. Arbitration shall occur before a single arbitrator;
provided, however, that if the parties cannot agree on the selection of such
arbitrator within thirty (30) days after the matter is referred to arbitration,
each party shall select one arbitrator and those arbitrators shall jointly
designate a third arbitrator to comprise a panel of three
arbitrators.  The decision of the arbitrator shall be rendered in
writing, shall be final, and may be entered as a judgment in any court in the
State of Washington.  The Employer and the Employee each irrevocably
consent to the jurisdiction of the federal and state courts located in State of
Washington for this purpose.  The arbitrator shall establish the
extent of discovery permitted and shall be authorized to allocate the reasonable
costs of arbitration between the parties.  Notwithstanding the
foregoing, the Employer, in its sole discretion, may bring an action in any
court of competent jurisdiction to seek injunctive relief in order to avoid
irreparable harm and such other relief as the Employer shall elect to enforce
the Employee’s covenants herein.

    

    
      	
              12.

            	
              INDEMNIFICATION.

            

    

    

    The
Employer agrees that if the Employee is made a party, or is threatened to be
made a party, to any action, suit or proceeding, whether civil, criminal,
administrative, or investigative (a “Proceeding”), by reason of the
fact that he is or was a director, officer or employee or the Employer, or is or
was serving at the request of the Employer as a director, officer, member,
employee or agent of another corporation, partnership, limited liability
company, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is the Employee’s alleged action in an official capacity while serving as a
director, officer, member, employee or agent, the Employee shall be Indemnified
and held harmless by the Employer to the fullest extent permitted or authorized
by law and by the Employer’s articles of incorporation and bylaws.  To
the extent consistent with the foregoing, this obligation to indemnify the
Employee and hold him harmless shall continue even if he has ceased to be a
director, officer, member, employee or agent of the Employer or other such
entity described above, and shall inure to the benefit of the Employee’s heirs,
executors and administrators.  The Employer shall advance to the
Employee all reasonable costs and expenses incurred by him in connection with a
Proceeding within twenty (20) days after receipt by the Employer of a written
request for such advance.  Such request shall include an undertaking
by the Employee to repay the amount of such advance if it shall ultimately be
determined that the Employee is not entitled to be indemnified against such
costs and expenses.

    

    Neither
the failure of the Employer (including its Board, independent legal counsel or
stockholders) to have made a determination before such Proceeding concerning
payment of amounts claimed by the Employee under the paragraph above that
indemnification of the Employee is proper because he has met the applicable
standards of conduct, nor a determination by the Employer (including its Board,
independent legal counsel or stockholders) that the Employee has not met such
applicable standards of conduct, shall create a presumption that the Employee
has not met the applicable standards of conduct.

    
      
         

      

      
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    Employee
understands and acknowledges that the Employer may be required in the future to
undertake with the Securities and Exchange Commission to submit in certain
circumstances the question of indemnification to a court for a determination of
the Employer’s right under public policy to indemnify Employee and the
obligation to indemnify the Employee hereunder shall be expressly subject to the
outcome of such determination.

    

    13.        
GENERAL PROVISIONS.

    

    a.           Notices.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effective: (1) upon personal delivery; (2) upon deposit with the United States
Postal Service, by registered or certified mail, postage prepaid; or (3) in the
case of delivery by nationally recognized overnight delivery service, when
received, addressed as follows:

    

    If to the
Employer to:

    

    Robert E.
Jorgensen, CEO

    Desert
Hawk Gold Corp.

    8921 N.
Indian Trail Road, #288

    Spokane,
WA   99208

    

    With a
copy (which shall not constitute notice) to:

    

    Ronald N.
Vance

    Attorney
at Law

    1656
Reunion Avenue

    Suite
250

    South
Jordan, UT  84095

    

    If to the
Employee, to:

    

    Rick
Havenstrite

    1290
Holcomb Avenue

    Reno,
NV  89502

    

    or to
such other address or addresses as either party shall designate to the other in
writing from time to time by like notice.

    

    b.          Legal
Expenses.  Except as provided in Section 11 hereof, if any
legal action or other proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default, or
misrepresentation in connection with any of the provisions of this Agreement,
the successful or prevailing party or parties will be entitled to recover
reasonable attorneys’ fees and other costs incurred in that action or
proceeding, in addition to any other relief to which it or they may be
entitled.

    
      
         

      

      
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    c.           Assignability and
Binding Nature.  No rights or obligations may be assigned or
transferred by the Employer except that such rights or obligations may be
assigned or transferred pursuant to a merger or consolidation in which the
Employer is not the continuing entity, or the sale or liquidation of all or
substantially all of the assets of the Employer, provided that the assignee or
transferee is the successor to all or substantially all of the assets of the
Employer and such assignee or transferee assumes the liabilities, obligations,
and duties of the Employer, as contained in this Agreement, either contractually
or as a matter of law.  Notwithstanding any such assignment, the
Employer shall not be relieved from liability under this
Agreement.  The obligations of the Employee are personal and no rights
or obligations of the Employee under this Agreement may be assigned or
transferred by the Employee other than his right to receive compensation and
benefits, provided such assignment or transfer is otherwise permitted by
law.

    

    d.           Amendment.  This
agreement may be amended or modified only by a written instrument executed by
both the Employer and the Employee.

    

    e.           Exhibits.  Each
of the exhibits referenced in this Agreement is annexed hereto and is
incorporated herein by this reference and expressly made a part
hereof.

    

    f.           Pronouns.  Whenever
the context might require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular forms of
nouns and pronouns shall include the plural, and vice versa.

    

    g.           Captions.  The
captions appearing herein are for convenience of reference only and in no way
define, limit or affect the scope or substance of any section
hereof.

    

    h.           Time.  All
reference herein to periods of days are to calendar days, unless expressly
provided otherwise.  Any reference herein to business days shall mean
any day other than Saturday, Sunday or other day on which commercial banks in
the State of Washington are authorized or required by law to remain
closed.  Where the time period specified herein would end on a weekend
or holiday, the time period shall be deemed to end on the next business
day.

    

    i.           Entire
Agreement.  This Agreement constitutes the entire agreement
between the Employer and the Employee and supersedes all prior agreements and
understandings, whether written or oral relating to the subject matter
hereof.

    

    j.           Severability.  In
case any provision hereof shall be held by a court or arbitrator with
jurisdiction over the Employer or the Employee to be invalid, illegal, or
otherwise unenforceable, such provision shall be restated to reflect as nearly
as possible the original intentions of the Employer and the Employee in
accordance with applicable law, and the validity, legality, and enforceability
of the remaining provisions shall in not way be affected or impaired
thereby.

    

    k.           Waiver.  No
delays or omission by the Employer or the Employee in exercising any right
hereunder shall operate as a waiver of that or any other right.  A
waiver or consent given by the Employer or the Employee or any one occasion
shall be effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    l.           Governing
Law.  This Agreement shall be construed, interpreted, and
enforced in accordance with the laws of the State of Washington, without regard
to its conflicts of laws principles.

    

    m.          Jurisdiction;
Service of Process. If neither the Employer or the Employee elects to be
governed by the provisions of Section 11 hereof, the parties to this Agreement,
acting for themselves and for their respective successors and assigns, without
regard to domicile, citizenship or residence, hereby expressly and irrevocably
elect as the sole judicial forum for the adjudication of any matters arising
under or in connection with this Agreement, and consent and subject themselves
to the jurisdiction of, the courts of the State of Washington located in County
of Spokane, and/or the United States District Court for the Eastern District of
Washington, in respect of any matter arising under this Agreement.

    

    n.           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

    

    o.           Full
Knowledge.  By their
signatures, the parties acknowledge that they have carefully read and fully
understand the terms and conditions of this Agreement, that each party has had
the benefit of separate counsel, or has been advised to obtain separate counsel,
and that each party has freely agreed to be bound by the terms and conditions of
this Agreement.  To the extent that a party elects not to consult with
such counsel, the party hereby waives any defense to inadequate representation
by counsel.

    

    p.           Construction.  This
Agreement shall be construed as though all parties had drafted it.

    

    q.           Non-Exclusivity
of Remedies.  The rights and remedies of the parties hereto
shall not be mutually exclusive, and the exercise of one or more of the
provisions of this Agreement shall not preclude the exercise of any other
provision.

    

    r.           Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, each of the parties hereto will be entitled
to specific performance.  Each of the parties agrees that monetary
damages may not be adequate compensation for any loss incurred by reason of any
breach of obligations described in the foregoing sentence and hereby agrees to
waive in any action for specific performance of any such obligation the defense
that a remedy at law would be adequate.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, each of the parties hereto has executed this Agreement the
respective day and year set forth below.

    

    
      	
              EMPLOYER:

            	
              Desert
      Hawk Gold Corp.

            
	 
      	 
      	 
      
	
              Date:  September
      13, 2010

            	
              By: 

            	
               /s/ Robert E. Jorgensen

            
	 
      	 
      	
              Robert
      E. Jorgensen, CEO

            
	 
      	 
      	 
      
	
              EMPLOYEE:

            	 
      	 
      
	 
      	 
      	 
      
	
              Date:  September
      13, 2010

            	
              /s/ Rick
      Havenstrite

            
	 
      	
              Rick Havenstrite,
      Individually

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXHIBIT
A

    TO

    RICK
HAVENSTRITE EMPLOYMENT AGREEMENT

    

    DESERT
HAWK GOLD CORP.

    CONFIDENTIAL
INFORMATION AND

    INVENTION
ASSIGNMENT AGREEMENT

    As a
condition of my employment with Desert Hawk Gold Corp., its
subsidiaries, affiliates, successors or assigns (together the “Company”), and in
consideration of my employment with the Company and my receipt of the
compensation now and hereafter paid to me by Company, including, but not limited
to, as provided in the Employment Agreement dated September 1, 2010, between the
Company and Rick Havenstrite (the “Employment Agreement”), I
agree to the following:

     

    1.           CONFIDENTIAL INFORMATION.

     

    (a)           Company
Information.  I agree at all times during the term of my
employment and thereafter, to hold in strictest confidence, and not to use,
except for the benefit of the Company, or to disclose to any person, firm or
corporation without written authorization of the Board of Directors of the
Company, any Confidential Information of the Company, except under a
non-disclosure agreement duly authorized and executed by the
Company.  I understand that “Confidential Information”
means any non-public information that relates to the actual or anticipated
business or research and development of the Company, technical data, trade
secrets or know-how, including, but not limited to, research, product plans or
other information regarding Company’s products or services and markets therefor,
customer lists and customers (including, but not limited to, customers of the
Company on whom I called or with whom I became acquainted during the term of my
employment), software, developments, inventions, processes, formulas,
technology, designs, drawings, engineering, hardware configuration information,
marketing, finances or other business information.  I further
understand that Confidential Information does not include any of the foregoing
items which have become publicly known and made generally available through no
wrongful act of mine or of others who were under confidentiality obligations as
to the item or items involved or improvements or new versions
thereof.

     

    (b)           Former Employer
Information.  I agree that I
will not, during my employment with the Company, improperly use or disclose any
proprietary information or trade secrets of any former or concurrent employer or
other person or entity and that I will not bring onto the premises of the
Company any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such employer,
person or entity.

     

    (c)           Third Party
Information.  I recognize that
the Company has received and in the future will receive from third parties their
confidential or proprietary information subject to a duty on the Company’s part
to maintain the confidentiality of such information and to use it only for
certain limited purposes.  I agree to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to
any person, firm or corporation or to use it except as necessary in carrying out
my work for the Company consistent with the Company’s agreement with such third
party.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    2.           INVENTIONS.

     

    (a)           Inventions
Retained and Licensed.  I have attached
hereto, as Exhibit A-1, a
list describing all inventions, original works of authorship, developments,
improvements, and trade secrets which were made by me prior to my employment
with the Company (collectively referred to as “Prior Inventions”), which
belong to me, which relate to the Company’s proposed business, products or
research and development, and which are not assigned to the Company hereunder;
or, if no such list is attached, I represent that there are no such Prior
Inventions.  If in the course of my employment with the Company, I
incorporate into a Company product, process or service a Prior Invention owned
by me or in which I have an interest, I hereby grant to the Company a
nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, worldwide
license to make, have made, modify, use and sell such Prior Invention as part of
or in connection with such product, process or service, and to practice any
method related thereto.

     

    (b)           Assignment of
Inventions.  I agree that I
will promptly make full written disclosure to the Company, will hold in trust
for the sole right and benefit of the Company, and hereby assign to the Company,
or its designee, all my right, title, and interest in and to any and all
inventions, original works of authorship, developments, concepts, improvements,
designs, discoveries, ideas, trademarks or trade secrets, whether or not
patentable or registrable under copyright or similar laws, which I may solely or
jointly conceive or develop or reduce to practice, or cause to be conceived or
developed or reduced to practice, during the period of time I am in the employ
of the Company (collectively referred to as “Inventions”), except as
provided in Section 2(F) below.  I further acknowledge that all
original works of authorship which are made by me (solely or jointly with
others) within the scope of and during the period of my employment with the
Company and which are protectible by copyright are “works made for hire,” as
that term is defined in the United States Copyright Act.  I understand
and agree that the decision whether or not to commercialize or market any
invention developed by me solely or jointly with others is within the Company’s
sole discretion and for the Company’s sole benefit and that no royalty will be
due to me as a result of the Company’s efforts to commercialize or market any
such invention.

     

    (c)           Inventions
Assigned to the United States.  I agree to assign
to the United States government all my right, title, and interest in and to any
and all Inventions whenever such full title is required to be in the United
States by a contract between the Company and the United States or any of its
agencies.

     

    (d)           Maintenance of
Records.  I agree to keep
and maintain adequate and current written records of all Inventions made by me
(solely or jointly with others) during the term of my employment with the
Company.  The records will be in the form of notes, sketches,
drawings, and any other format that may be specified by the
Company.  The records will be available to and remain the sole
property of the Company at all times.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (e)           Patent and
Copyright Registrations.  I agree to assist
the Company, or its designee, at the Company’s expense, in every proper way to
secure the Company’s rights in the Inventions and any copyrights, patents, mask
work rights or other intellectual property rights relating thereto in any and
all countries, including the disclosure to the Company of all pertinent
information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments which the Company
shall deem necessary in order to apply for and obtain such rights and in order
to assign and convey to the Company, its successors, assigns, and nominees the
sole and exclusive rights, title and interest in and to such Inventions, and any
copyrights, patents, mask work rights or other intellectual property rights
relating thereto.  I further agree that my obligation to execute or
cause to be executed, when it is in my power to do so, any such instrument or
papers shall continue after the termination of this Agreement.  If the
Company is unable because of my mental or physical incapacity or for any other
reason to secure my signature to apply for or to pursue any application for any
United States or foreign patents or copyright registrations covering Inventions
or original works of authorship assigned to the Company as above, then I hereby
irrevocably designate and appoint the Company and its duly authorized officers
and agents as my agent and attorney in fact, to act for and in my behalf and
stead to execute and file any such applications and to do all other lawfully
permitted acts to further the prosecution and issuance of letters patent or
copyright registrations thereon with the same legal force and effect as if
executed by me.

    Exception to
Assignments.  I understand that
the provisions of this Agreement requiring assignment of Inventions to the
Company do not apply to any invention that I developed entirely on my own time
without using the Company’s equipment, supplies, facilities, or trade secret
information, except for those inventions that
either:  (i)  relate at the time of conception or reduction
to practice of the invention to the Company’s business, or actual or
demonstrably anticipated research or development of the Company; or
(ii)  result from any work performed by me for the
Company.

     

    3.           CONFLICTING
EMPLOYMENT.  I agree that, during the
term of my employment with the Company, my obligations regarding conflicting
employment, or potentially conflicting employment, will be governed by the
Employment Agreement.

     

    4.           RETURNING
COMPANY DOCUMENTS.  I agree that, at the time of leaving the
employ of the Company, I will deliver to the Company (and will not keep in my
possession, recreate or deliver to anyone else) any and all devices,
records, data, notes, reports, proposals, lists, correspondence, specifications,
drawings blueprints, sketches, materials, equipment, other documents or
property, or reproductions of any aforementioned items developed by me pursuant
to my employment with the Company or otherwise belonging to the Company, its
successors or assigns, including, without limitation, those records maintained
pursuant to paragraph 2(D).  In
the event of the termination of my employment, I agree to sign and deliver the
“Termination Certification” attached hereto as Exhibit A-2.

     

    5.           NOTIFICATION
OF NEW EMPLOYER.  In the event that I leave the employ of the
Company, or become employed by other employers, I hereby grant consent to
notification by the Company to my other employers about my rights and
obligations under this Agreement.

     

    6.           CONFLICT
OF INTEREST GUIDELINES.  I agree to diligently adhere to the
Conflict of Interest Guidelines attached as Exhibit A-3
hereto.

     

    7.           REPRESENTATIONS.  I
agree to execute any proper oath or verify any proper document required to carry
out the terms of this Agreement.  I represent that my performance of
all the terms of this Agreement will not breach any agreement to keep in
confidence proprietary information acquired by me in confidence or in trust
prior to my employment by the Company.  I hereby represent and warrant
that I have not entered into, and I will not enter into, any oral or written
agreement in conflict herewith.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    8.           GENERAL
PROVISIONS.  This Agreement shall be subject to the Employment
Agreement, including, but not limited to, the General Provisions of Section 13
thereof, which agreement is incorporated herein by this reference.

     

    
      	
              Date:  September
      13, 2010

            	
              /s/ Rick Havenstrite

            
	 
      	
              Rick
      Havenstrite, Employee

            

    

    

    
      
        	
                Witness:

              	 
      
	 
      	 
      
	
                /s/ David W Stromswold

              	 
      
	
                Signature

              	 
      
	 	 
	
                David W. Stromswold

              	 
      
	
                Name
      (typed or printed)

              	 
      

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Exhibit A-1

     

    LIST
OF PRIOR INVENTIONS

    AND
ORIGINAL WORKS OF AUTHORSHIP

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Title

                                  	 
      	
                                    Date

                                  	 
      	
                                    Identifying Number or Brief

                                    Description

                                  
	 
      	 
      	 
      	 
      	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    x  No
inventions or improvements

     ̈  Additional
Sheets Attached

    

    
      	
              Signature
      of Employee:  

            	
              /s/ Rick Havenstrite

            	 
      
	 
      	
              Rick
      Havenstrite

            	 
      

    

    

    Date:  September
13, 2010

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Exhibit A-2

     

    DESERT
HAWK GOLD CORP.

     

    TERMINATION
CERTIFICATION

    This is
to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items belonging to
Desert Hawk Gold Corp.,
its subsidiaries, affiliates, successors or assigns (together, the “Company”).

    I further
certify that I have complied with all the terms of the Company’s Employment,
Confidential Information and Invention Assignment Agreement signed by me,
including the reporting of any inventions and original works of authorship (as
defined therein), conceived or made by me (solely or jointly with others)
covered by that agreement.

    I further
agree that, in compliance with the Employment, Confidential Information and
Invention Assignment Agreement, I will preserve as confidential all trade
secrets, confidential knowledge, data or other proprietary information relating
to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, data bases, other original works of
authorship, customer lists, business plans, financial information or other
subject matter pertaining to any business of the Company or any of its
employees, clients, consultants or licensees.

    

    
      
        
          	
                  Date:  

                	
                    

                	 

        

      

    

    

    
      	 
      	 
      
	 
      	
              Rick
      Havenstrite

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    Exhibit A-3

     

    DESERT
HAWK GOLD CORP.

     

    CONFLICT
OF INTEREST GUIDELINES

    It is the
policy of Desert Hawk Gold
Corp. to conduct its affairs in strict compliance with the letter and
spirit of the law and to adhere to the highest principles of business
ethics.  Accordingly, all officers, employees and independent
contractors must avoid activities which are in conflict, or give the appearance
of being in conflict, with these principles and with the interests of the
Company.  The following are potentially compromising situations which
must be avoided.  Any exceptions must be reported to the CEO or to the
Board of Directors and written approval for continuation must be
obtained.

    1.           Revealing
confidential information to outsiders or misusing confidential
information.  Unauthorized divulging of information is a violation of
this policy whether or not for personal gain and whether or not harm to the
Company is intended.

    2.           Accepting
or offering substantial gifts, excessive entertainment, favors or payments which
may be deemed to constitute undue influence or otherwise be improper or
embarrassing to the Company.

    3.           Initiating
or approving personnel actions affecting reward or punishment of employees or
applicants where there is a family relationship or is or appears to be a
personal or social involvement.

    4.           Initiating
or approving any form of personal or social harassment of
employees.

    5.           Investing
or holding outside directorship in suppliers or customers, including financial
speculations, where such investment or directorship might influence in any
manner a decision or course of action of the Company.

    6.           Borrowing
from or lending to employees, customers or suppliers.

    7.           Acquiring
real estate, mining or other property of interest to the Company.

    8.           Improperly
using or disclosing to the Company any proprietary information or trade secrets
of any former or concurrent employer or other person or entity with whom
obligations of confidentiality exist.

    9.           Unlawfully
discussing prices, costs, customers, sales or markets with competing companies
or their employees.

    10.         Making
any unlawful agreement with distributors with respect to prices.

    11.         Improperly
using or authorizing the use of any inventions which are the subject of patent
claims of any other person or entity.

    12.         Knowingly
permitting the Company to enter into a contract, agreement, or transaction with
another corporation, firm or association in which one or more of the directors
or officers of the Company are directors or officers or are financially
interested in the other entity.

    13.         Making
or authorizing a payment to a foreign office, a foreign political party or party
office, or any candidate for a foreign political office for the purpose of
obtaining or retaining business for or with, or directing business to, the
Company with the intent to induce the recipient to misuse his official position
to direct business wrongfully to the Company or any other person.

    14.         Knowingly
permitting the Company to make loans or extend credit to its directors or
executive officers.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Each
officer, employee and independent contractor must take every necessary action to
ensure compliance with these guidelines and to bring problem areas to the
attention of higher management for review.  Violations of this
conflict of interest policy may result in discharge.

    
      
         

      

      
        2CONSULTING
AGREEMENT

    

    This
Consulting Agreement (the “Agreement”), dated this 1st
day of September 2010, (the “Effective Date”) is by and
between Desert Hawk Gold Corp., a Nevada corporation (hereinafter referred to as
the “Company”), and Eric
L. Moe, an individual (hereinafter referred to as the “Service
Provider”).

    

    Recitals:

    

    A.          The
Company desires to engage the Service Provider on a non-exclusive basis to
provide certain management consulting and advisory services for the Company as
set forth in this Agreement.

    

    B.          The
Service Provider is in the business of providing such services and has agreed to
provide the services on the terms and conditions set forth in this
Agreement.

    

    NOW,
THEREFORE, in consideration of the faithful performance of the obligations set
forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Service Provider and the
Company hereby agree as follows.

    

    1.           Engagement.  The
Company hereby engages the Service Provider, and the Service Provider hereby
accepts the engagement, to provide certain management consulting and advisory
services for the Company subject to and in compliance with the terms and
conditions of this Agreement.  The Service Provider shall report to
and coordinate all activities with the CEO or the Board of
Directors.

    

    2.           Term of
Service. The Company hereby retains the Service Provider for a period of
four (4) years beginning as of the Effective Date (the “Term”).  The Term
and any extension thereof shall be referred to herein as the “Consulting
Period.”

    

    3.           Services to Be
Provided.  During the Consulting Period the Service Provider
shall provide the following services to the Company:

    

    a.           Management and Business Consulting
and Advisory Services.  During the term of this Agreement,
Service Provider will provide those services customarily provided by a
management and business consultant and advisor, including, but not limited to,
the following (the “Services”):

    (i)           Perform
reasonable secretarial services for the CEO as needed;

    (ii)          Organize
and maintain accurate and complete corporate books and records, including, but
not limited to, the corporate minute book;

    (iii)         At
the request of the Board of Directors, serve as corporate secretary for the
Company or any of its subsidiaries;

    (iv)         Record
and maintain accurate minutes of all meetings of the Board of
Directors;

    (v)          Coordinate
with the Company’s bookkeeper and accounting personnel in organizing and
maintaining accurate financial records of the Company and reviewing and paying
all invoices in a timely manner;

    (vi)         Supervise
the payment, filing, and recording of all BLM maintenance fees, state mineral
lease fees, property taxes on patented claims, permit fees, and other fees and
costs required to maintain leasehold interests in and mining activities on all
mining claims and leases of the Company;

    (vii)        Maintain
schedules of affirmative obligations of the Company contained within contractual
obligations and advise management of required actions pursuant
thereto;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (viii)       Advise
and assist management in the preparation and filing of its initial S-1
registration statement, and any pre or post-effective amendments thereto, or any
future registration statements or other filings under the Securities Act of
1933, as amended (the “Securities Act”);

    (ix)         Advise
management and assist in implementing reasonable corporate governance policies
and procedures reasonably applicable to public companies;

    (x)          Advise
management and assist in implementing reasonable disclosure controls and
procedures which are effective to ensure that material information required to
be disclosed by the Company in reports filed or submitted by the Company under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded,
processed, summarized, and reported within the time periods specified in
the  rules and forms of the Securities and Exchange Commission (the
“SEC”), and which are
designed to ensure that material information required to be disclosed by the
Company in such reports is accumulated, organized and communicated to the
Company’s management, including its principal executive officer and principal
financial officer, as appropriated, to allow timely decisions regarding required
disclosure;

    (xi)         Advise
and assist management in creating and maintaining suitable committees for the
Board of Directors;

    (xii)        Advise
management and assist in preparation of periodic reports to be filed by the
Company with the Securities and Exchange Commission under the Exchange
Act;

    (xiii)       Coordinate
ongoing education of management as to its responsibilities, obligations, and
liabilities under the Securities Act and the Exchange Act, and rules and
regulations promulgated there under, state corporate and securities laws and
regulations, and industry standards for mining companies;

    (xiv)       Assist
in preparation of materials required pursuant to Rule 15c2-11 in application for
quotation of the Company’s common stock on the OTC Bulletin Board;

    (xv)        Assist
in locating suitable market makers for the application to the OTC Bulletin Board
and to make a market in the Company’s common stock thereafter;

    (xvi)       Locate
and propose to the Company a suitable investor relations firm;

    (xvii)      Advise
and assist management in preparation for listing of the Company’s securities on
a senior exchange;

    (xviii)     Assist
and advise management as to creation and maintenance of the Company’s internal
control over financial reporting including those policies and procedures that
(a) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of
the Company, (b) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with
authorizations of management and directors; and (c) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the Company’s assets that could have a material effect on
the financial statements;

    (xix)        Assist
and advise management in preparation of its annual report on the Company’s
internal control over financial reporting;

    (xx)         Advise
and assist the Company’s principal financial officer in duties as the chief
financial officer of a reporting company under accounting standards and in
compliance with the Exchange Act;

    (xxi)        Coordinate
with the Company’s auditor’s in the audit of the Company’s financial statements
and the review of interim financial statements;

    (xxii)       Advise
and assist management in expansion of the Company’s operations;

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (xxiii)      Advise
and assist management in locating suitable target companies and property
acquisitions in the mining industry;

    (xxiv)     Advise
and assist management in any merger and acquisition activities;

    (xxv)      Coordinate
communications and interact with the lessors of the Company’s mining
claims;

    (xxvi)     Purchase
and maintain office equipment for the Spokane office of the Company;
and

    (xxvii)    Coordinate
all Services rendered with legal counsel or accounting personnel for the
Company, or with other professional service providers, as
appropriate.

    

    b.           Time
Commitments.  The Service Provider shall devote a minimum of
50% of his entire business time, attention, skill, and effort to the performance
of his duties under this Agreement and shall furnish the Company monthly
statements evidencing the number of hours and a reasonable description of the
Services provided.

    

    c.           Manner of Services
Provided.  The Service Provider agrees that the Services will
be rendered in a “workmanlike manner,” consistent with the manner of performance
by other consultants providing the same or similar services as being rendered
hereunder.  Service Provider will ensure that only the most recent and
accurate information as provided by the Company and/or its affiliates or made
available to the Service Provider is used in performing the
Services.

    

    d.           Services for
Subsidiaries.  The Service Provider shall, at the request of
the CEO or the Board of Directors of the Company, perform services for any
subsidiary of the Company similar to the Services set forth herein.

    

    e.           Conflicts of
Interest.  Service Provider will inform the Company of any
possible conflicts of interest or business, personal or family relationships
with any third party providers or with any investors introduced to the
Company.

    

    f.           Money Raising or Market Making
Services.  The Service Provider shall not provide services in
connection with the offer or sale of securities of the Company in a
capital-raising transaction and shall not directly or indirectly promote or
maintain a market for the Company’s securities.

    

    4.           Devotion of
Time.  During the Consulting  Period, the Service
Provider shall expend adequate working time to perform the services set forth
herein; shall devote his best efforts, energy and skill to the services of the
Company and the promotion of its interests; and shall not take part in
activities detrimental to the best interests of the Company.  Nothing
in this Agreement shall preclude the Service Provider during the term of this
Agreement from engaging, directly or indirectly, in any business activity which
is not competitive with the then existing business of the Company.

    

    5.           Disclosure of
Material Events.  The Company shall promptly disclose to the
Service Provider those events or discoveries which are known and/or reasonably
anticipated that, in the judgment of the Company may have a material impact on
the stock price, business operations, future business, or public perception of
the Company and which may have a material impact on the ability and
effectiveness of the Service Provider in providing the Services
hereunder.  It shall be understood that excluded from this disclosure
shall be information deemed to be non-public or “inside”
information.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    6.           Service Provider
Not a Broker-Dealer/ Prohibition from Participation in the Sale of
Securities.  The Company
acknowledges that the Service Provider is not licensed as a broker-dealer under
applicable federal and state securities laws.  Consequently, none of
the Services hereunder are intended to be those of a
broker-dealer.  Pursuant to Rule 3a4-1 of the Exchange Act, the
Service Provider agrees not to perform, and the Company expressly prohibits the
Service Provider from performing the following services: (a) making any sales of
Company securities; (b) discussing the price of any Company securities; (c)
delivering any offering materials for Company securities; (d) discussing the
terms, rights or characteristics of any Company securities; and (e) discussing
any investment in the business or securities of Company, except to direct any
inquiries regarding the foregoing to authorized representatives of
Company.  Service Provider hereby represents and warrants to the
Company that Service Provider is not an associated person of a broker or dealer
as defined in Rule 3a4-1 of the Exchange Act.  At no time shall the
Service Provider provide services which would require the Service Provider to be
registered or licensed with any federal or state regulatory body or
self-regulating agency.

    

    7.           Compensation.  In
consideration for services provided by the Service Provider to the Company, the
Company shall provide the following compensation to Service
Provider:

    

    a.           Cash.  In
consideration of the Services to be rendered hereunder, the Company agrees to
pay the Service Provider a fee of $10,000 per month during the Term of this
Agreement.  The fee shall be paid to Service Provider on or before the
tenth (10th)
business day following the month during which the Services were
provided.  Fees earned during any partial month shall be adjusted by
the number of days during such month.

    

    b.           Performance
Compensation.  Service Provider will be eligible to receive an
annual bonus of a minimum of 10% and a maximum of 100% of the then applicable
base cash compensation upon achievement of annual performance objectives to be
determined in good faith by the Compensation Committee or the Board of Directors
of the Company and the Service Provider, which objectives for the first year of
this Agreement will be established within thirty (30) days of the Effective
Date.  Objectives for subsequent years will be determined as set forth
herein within thirty (30) days of each anniversary of this
Agreement.  Bonus payments will be paid to the Service Provider not
later than thirty (30) days following achievement of annual performance
objectives, but in no event later than thirty (30) days following each
anniversary of this Agreement.  At the option of the Service Provider,
such bonus payments may be paid in cash or in shares of common stock of the
Company at the fair market value on the date the bonus is earned.

    

    c.           Reimbursable
Expenses.  The Company agrees to reimburse the Service Provider
for all direct expenses authorized by the Company in writing incurred during the
Term of this Agreement.  The Service Provider shall submit invoices
for such expenses and shall provide such supporting information and
documentation as the Company may reasonably request in accordance with Company
policy and the requirements of the Internal Revenue Code.  The Company
shall pay such invoices within ten (10) days of receipt.

    

    d.           Prohibition of Compensation for
Securities Transactions.  The Company shall not be obligated to
pay the Service Provider any compensation in the form of commissions or other
remuneration based either directly or indirectly on transactions in securities
of the Company.

    

    8.           Termination and
Extension. The Term shall be sooner terminated or further extended under
the following circumstances:

    

    a.           Termination for Cause. The
Company shall be entitled, with or without prior notice, to terminate this
Agreement for cause, in which case no consulting fees or other compensation
(other than such fees that have already been earned by Service Provider) shall
be payable to Service Provider after such termination. “Cause” means Service
Provider’s (i) gross negligence in the performance or non-performance of any
material duties to the Company; (ii) commission of any material criminal act or
fraud or of any act that affects adversely the reputation of the Company; (iii)
habitual neglect of his duties that he is required to perform under this
Agreement; (iv) dishonesty; or (v) gross misconduct.  Such termination
shall not prejudice any other remedy under law or equity of the Company and the
failure of the Company to terminate Service Provider when cause exists shall not
constitute the waiver of the Company’s right to terminate this Agreement at a
later time.  Termination under this Section shall be considered “for
cause” for purposes of this Agreement.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    b.           Change of Control of Service
Provider.  The Company shall be entitled, upon thirty (30)
days’ written notice, to terminate this Agreement in the event of a change of
control of the Service Provider.  For purposes of this Section, “Change of Control” shall mean
(i) a merger or consolidation in which securities or other ownership interests
possessing more than fifty percent (50%) of the
total combined voting power or ownership of the Service Provider are transferred
to a person or persons different from the persons holding those securities
ownership interests immediately prior to such transaction; (ii) the sale,
transfer or other disposition of all or substantially all of the Service
Provider’s assets in complete liquidation or dissolution of the Service
Provider; or (iii) the death, termination, or resignation of any key employee,
representative or agent of the Service Provider who is principally engaged in
providing the Services to the Company hereunder.   The Service
Provider shall notify the Company within five (5) business days of any Change of
Control of the Service Provider.

    

    c.             Extension of Term. The
initial Term may be further extended with the express authorization of the
Company’s Board of Directors and Service Provider. Any extended term may be
terminated at any time at the will of the Board of Directors, with or without
cause.

    

    9.           Confidential
Information.  Service Provider recognizes and acknowledges that
certain information, including, but not limited to, information pertaining to
the financial condition of the Company, its systems, methods of doing business,
agreements with customers or suppliers, or other aspects of the business of the
Company or which are sufficiently secret to derive economic value from not being
disclosed (hereinafter “Confidential Information”) may
be made available or otherwise come into the possession of the Service Provider
by reason of this engagement with the Company.  Accordingly, the
Service Provider agrees that no agent, employee, or representative will (either
during or after the term of this Agreement) disclose any Confidential
Information to any person, firm, corporation, association, or other entity for
any reason or purpose whatsoever or make use to his or their personal advantage
or to the advantage of any third party, of any Confidential Information, without
the prior written consent of the Company.  The parties hereto agree
that the provisions of this Section shall not apply with respect to any
information that the Service Provider can document (i) is or becomes (through no
improper action or inaction by the Service Provider or any affiliate, agent,
consultant or employee) generally available to the public, or (ii) was in his
possession or known by him without any limitation on use or disclosure prior to
the Effective Date.  Service Provider shall, upon termination of this
engagement, return to the Company, and shall cause his agents, employees, and
representatives to return to the Company, all documents which reflect
Confidential Information (including copies thereof).  Notwithstanding
anything heretofore stated in this paragraph, the Service Provider’s obligations
under this Agreement shall not, after termination of Service Provider’s
engagement with the Company, apply to information which has become generally
available to the public without any action or omission of the Service Provider
(except that any Confidential Information which is disclosed to any third party
by an employee or representative of the Company who is authorized to make such
disclosure shall be deemed to remain confidential and protectable under this
provision).

    

    10.        Trading
Practices.  So long as the Service Provider is in possession of
any material non-public information of the Company, the Service Provider shall
not, directly or indirectly engage in the purchase or sale the common stock of
the Company.  During the Term of this Agreement, and for a period of
one year after the termination of this Agreement, the Service Provider shall
not, directly or indirectly, engage in any short selling activities of the
common stock of the Company.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    11.        Mutual
Indemnification.

    

    
      	
               
      

            	
              a.

            	
              Indemnification.

            

    

    

    (i)           The
Service Provider covenants and agrees to defend, indemnify and hold harmless the
Company, its officers, directors, and each person who controls the Company
within the meaning of the Securities Act from and against any damages (including
reasonable attorneys’, accountants’, and experts’ fees, disbursements of
counsel, and other related costs and expenses) arising out of or resulting from:
(A) any inaccuracy in or breach of any representation or warranty made by the
Service Provider in this Agreement; or (B) the failure of the Service Provider
to perform or observe fully any covenant, agreement or provision to be performed
or observed by such party pursuant to this Agreement.

    

    (ii)          The
Company covenants and agrees to defend, indemnify and hold harmless the Service
Provider from and against any damages (including reasonable attorneys’,
accountants’, and experts’ fees, disbursements of counsel, and other related
costs and expenses) arising out of or resulting from: (A) any inaccuracy in or
breach of any representation or warranty made by the Company in this Agreement;
or (B) the failure by the Company to perform or observe any covenant, agreement
or condition to be performed or observed by it pursuant to this
Agreement.

    

    
      	
               
      

            	
              b.

            	
              Third Party
      Claims.

            

    

    

    (i)           If
any party entitled to be indemnified pursuant to Paragraph (a) of this Section
(an “Indemnified Party”)
receives notice of the assertion by any third party of any claim or of the
commencement by any such third person of any actual or threatened claim, action,
suit, arbitration, hearing, inquiry, proceeding, complaint, charge or
investigation by or before any governmental entity or arbitrator and an appeal
from any of the foregoing (any such claim or Action being referred to herein as
an “Indemnifiable
Claim”) with respect to which another party hereto (an “Indemnifying Party”) is or may
be obligated to provide indemnification, the Indemnified Party shall promptly
notify the Indemnifying Party in writing (the “Claim Notice”) of the
Indemnifiable Claim; provided, that the failure to provide such notice shall not
relieve or otherwise affect the obligation of the Indemnifying Party to provide
indemnification hereunder, except to the extent that any damages directly
resulted or were caused by such failure.

    

    (ii)          The
Indemnifying Party shall have thirty (30) days after receipt of the Claim Notice
to undertake, conduct and control, through counsel of its or his own choosing,
and at its or his expense, the settlement or defense thereof, and the
Indemnified Party shall cooperate with the Indemnifying Party in connection
therewith; provided, that (A) the Indemnifying Party shall permit the
Indemnified Party to participate in such settlement or defense through counsel
chosen by the Indemnified Party (subject to the consent of the Indemnifying
Party, which consent shall not be unreasonably withheld), provided that the fees
and expenses of such counsel shall not be borne by the Indemnifying Party, and
(Bi) the Indemnifying Party shall not settle any Indemnifiable Claim without the
Indemnified Party’s consent.  So long as the Indemnifying Party is
vigorously contesting any such Indemnifiable Claim in good faith, the
Indemnified Party shall not pay or settle such claim without the Indemnifying
Party’s consent, which consent shall not be unreasonably withheld.

    

    (iii)         If
the Indemnifying Party does not notify the Indemnified Party within thirty (30)
days after receipt of the Claim Notice that it or he elects to undertake the
defense of the Indemnifiable Claim described therein, the Indemnified Party
shall have the right to contest, settle, or compromise the Indemnifiable Claim
in the exercise of its or his reasonable discretion; provided, that the
Indemnified Party shall notify the Indemnifying Party of any compromise or
settlement of any such Indemnifiable Claim.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    c.           Indemnification
Non-Exclusive.  The foregoing indemnification provisions are in
addition to, and not in derogation of, any statutory, equitable, or common-law
remedy any party may have for breach of representation, warranty, covenant or
agreement.

    

    12.           Independent
Contractor.  Service Provider agrees that in performing this
Agreement, he is acting as an independent contractor and not as an employee,
representative, or agent of the Company and shall provide all facilities and
equipment necessary to fulfill his obligations hereunder.  As an
independent contractor, the Service Provider shall make no representation as an
agent or employee of the Company, shall have no authority to bind the Company or
incur other obligations on behalf of the Company, and shall not be eligible for
any benefits which the Company may provide to its
employees.  Likewise, the Company shall have no authority to bind or
incur obligations on behalf of the Service Provider.  All persons
hired or retained by Service Provider to perform this Agreement, including, but
not limited to, his employees, representatives, and agents, shall be employees
or contractors of the Service Provider and shall not be construed as employees
or agents of the Company in any respect.  The Service Provider shall
be responsible for all taxes, insurance and other costs and payments legally
required to be withheld or provided in connection with Service Provider’s
performance of this Agreement, including without limitation, all withholding
taxes, worker’s compensation insurance, and similar costs.  The
Service Provider shall abide by all laws, rules, and regulations pertaining to
the Services to be provided hereunder.

    

    13.           Statutory
Disqualification.  Neither the Service Provider nor any of his
employees, representatives, agents, affiliates, or any other person providing
Services to the Company for or on behalf of the Service Provider hereunder is or
shall be during the Term subject to statutory disqualification as defined in
Section 3(a)(39) of the Exchange Act.

    

    14.           Miscellaneous
Provisions.

    

    a.           Notice.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effective: (i) upon personal delivery; (ii) in the case of delivery by mail
within the continental United States, on the fourth (4th)
business day after such notice or other communication shall have been deposited
in the mail, postage prepaid, return receipt requested; (iii) when sent by
either facsimile or email at the applicable facsimile number or email address
set forth below upon confirmation of transmission or receipt of mailing; or (iv)
in the case of delivery by internationally recognized overnight delivery
service, when received, addressed as follows:

    

    If to the
Company to:

    Robert E.
Jorgensen, CEO

    Desert
Hawk Gold Corp.

    8921 N.
Indian Trail Road, #288

    Spokane,
WA   99208

    FAX:  (509)
465-0775

    Email:  bjorg53@yahoo.com

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    With a
copy (which shall not constitute notice) to:

    Ronald N.
Vance

    Attorney
at Law

    1656
Reunion Avenue

    Suite
250

    South
Jordan, UT  84095

    FAX:  (801)
446-8802

    Email:
ron@vancelaw.us

    

    If to the
Service Provider, to:

    8305 N.
Colton Place

    Spokane,
WA  99208

    FAX:
(509) 466-0583

    Email:
emoe27@aol.com

    

    or to
such other address or addresses, facsimile number or numbers, or email address
or addresses as either party shall designate to the other in writing from time
to time by like notice.

    

    b.           Attorneys’
Fees.  If any legal action or other proceeding is brought for
the enforcement of this Agreement, or because of an alleged dispute, breach,
default, or misrepresentation in connection with any of the provisions of this
Agreement, the successful or prevailing party or parties will be entitled to
recover reasonable attorneys’ fees and other costs incurred in that action or
proceeding, in addition to any other relief to which it or he may be
entitled.

    

    c.           Additional
Remedies.  Service Provider acknowledges and agrees that, in
the event he shall violate any of the restrictions of this Agreement, the
Company will be without adequate remedy at law and will therefor be entitled to
enforce such restrictions by temporary or permanent injunctive or mandatory
relief obtained in an action or may have at law or in equity, and the Service
Provider hereby consents to the jurisdiction of such court for such purpose,
provided that reasonable notice of any proceeding is given, it being understood
that such injunction shall be in addition to any remedy which the Company may
have at law or otherwise.

    

    d.          Entire Agreement; Modification;
Waiver.  This Agreement constitutes the entire agreement
between or among the parties pertaining to the subject matter contained in it
and supersedes all prior and contemporaneous agreements, representations, and
understandings of the parties.  No supplement, modification, or
amendment of this Agreement will be binding unless executed in writing by all
the parties or the applicable parties to be bound by such
amendment.  No waiver of any of the provisions of this Agreement will
constitute a waiver of any other provision, whether or not similar, nor will any
waiver constitute a continuing waiver.  No waiver will be binding
unless executed in writing by the party making the waiver.

    

    e.          Survival of Covenants,
Etc.  All covenants, representations and warranties made herein
shall survive the making of this Agreement and shall continue in full force and
effect for a period of two years from the termination date of this Agreement, at
the end of which period no claim may be made with respect to any such covenant,
representation, or warranty unless such claim shall have been asserted in
writing to the indemnifying party during such period.

    

    f.           Assignment.  This
Agreement, as it relates to the engagement of the Service Provider, is a
personal contract and the rights and interests of the Service Provider hereunder
may not be sold, transferred, assigned, pledged or hypothecated, without the
prior written consent of the Company, which consent may be withheld for any
reason.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    g.          Binding on
Successors.  This Agreement will be binding on, and will inure
to the benefit of, the parties to it and their respective successors, and
assigns.

    

    h.          Governing Law and
Venue.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Washington applicable to contracts
made and to be performed in such State, without reference to the choice of law
principals thereof, and any and all actions to enforce the provisions of this
Agreement shall be brought in a court of competent jurisdiction in the State of
Washington and in no other place.

    

    i.           Rights Are
Cumulative.  The rights and remedies granted to the parties
hereunder shall be in addition to and cumulative of any other rights or remedies
either may have under any document or documents executed in connection herewith
or available under applicable law.  No delay or failure on the part of
a party in the exercise of any power or right shall operate as a waiver thereof
nor as an acquiescence in any default nor shall any single or partial exercise
of any power or right preclude any other or further exercise thereof or the
exercise of any other power or right.

    

    j.           Severability.  If
any provision of this Agreement is held invalid or unenforceable by any court of
final jurisdiction, it is the intent of the parties that all other provisions of
this Agreement be construed to remain fully valid, enforceable, and binding on
the parties.

    

    k.          Drafting.  This
Agreement was drafted with the joint participation of the parties and/or their
legal counsel.  Any ambiguity contained in this Agreement shall not be
construed against any party as the draftsman, but this Agreement shall be
construed in accordance with its fair meaning.

    

    l.           Headings.  The
descriptive headings of the various paragraphs or parts of this Agreement are
for convenience only and shall not affect the meaning or construction of any of
the provisions hereof.

    

    m.         Number and
Gender.  Wherever from the context it appears appropriate, each
term stated in either the singular or the plural shall include the singular and
the plural, and pronouns stated in either the masculine, the feminine, or the
neuter gender shall include the masculine, feminine, and neuter.

    

    n.       
  Counterparts;
Facsimile Execution.  This Agreement may be executed in any
number of counterparts and all such counterparts taken together shall be deemed
to constitute one instrument.  Delivery of an executed counterpart of
this Agreement by facsimile or email shall be equally as effective as delivery
of a manually executed counterpart of this Agreement.  Any party
delivering an executed counterpart of this Agreement by facsimile or email also
shall deliver a manually executed counterpart of this Agreement, but the failure
to deliver a manually executed counterpart shall not affect the validity,
enforceability, or binding effect of this Agreement.

    

    o.          Full Knowledge.  By
their signatures, the parties acknowledge that they have carefully read and
fully understand the terms and conditions of this Agreement, that each party has
had the benefit of counsel, or has been advised to obtain counsel, and that each
party has freely agreed to be bound by the terms and conditions of this
Agreement.

    

    SIGNATURE
PAGE FOLLOWS

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    SIGNATURE
PAGE

    

    IN
WITNESS WHEREOF, each of the parties hereto, thereunto duly authorized, has
executed this Agreement the respective day and year set forth
below.

    

    
      
        
          
            
              
                	
                        COMPANY:

                      	
                        Desert
      Hawk Gold Corp.

                      
	 
      	 
      
	
                        Date:  September
      16, 2010

                      	By
      	
                        /s/
      Robert E. Jorgensen

                      
	 	 	      
                        Robert
      E. Jorgensen, CEO

                      
	 
      	 
      
	
                        SERVICE
      PROVIDER:

                      	 
      
	 
      	 
      
	
                        Date:  September
      16, 2010

                      	
                        /s/
      Eric L. Moe

                      
	 
      	
                        Eric
      L. Moe,
Individually

                      

              

            

          

        

      

    

     

    
      
         

      

      
        10

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