Document:

Silverhill Mines Inc.

Exhibit 10.3

STOCK PLEDGE AGREEMENT

This Stock Pledge Agreement (the "Agreement") is entered into this 17th day of December, 2010, by Selva Resources Corporation, a Nevada corporation (the "Pledgor"), Long Lane Capital, Inc., a Washington corporation (the "Pledgee"), and Matthew C. Maza (the "Escrow Agent").

RECITALS

1. The Pledgor has executed a promissory note in the amount of US $100,000, and has tendered the note, along with other good and valuable consideration to Pledgee.

2. The Pledgor has agreed to pledge to the Pledgee all of the 2009 Series “A” Preferred shares the Pledgor owns, on the terms and conditions set forth below, to secure the full performance of the Pledgor's obligations under the stock purchase agreement, the note, and this Agreement.

AGREEMENT

1. Definitions.

(a) Certificates. The term "Certificates" means the certificates evidencing ownership of the Collateral.

(b) Collateral. The term "Collateral" means the 10,000,000 2009 Series “A” Preferred shares of stock of Silver Hill Mines, Inc., a Nevada corporation, owned by the Pledgor.

(c) The Company. The term "the Company" means the Silver Hill Mines, Inc.

(d) Cure Period. The term "Cure Period" means a period of 10 days beginning with delivery of a notice of Default pursuant to Section 9 of this Agreement.

(e) Default. The term "Default" means the event which occurs if:

(i) the Pledgor fails to make, when due, any payment owed on any of the Obligations;

(ii) the Pledgor breaches any of the material terms of this Agreement, the Purchase Agreement, or the Note;

(iii) the Pledgor becomes insolvent;

(iv) a receiver is appointed for any part of the Pledgor's property;

(v) the Pledgor assigns any of its assets for the benefit of creditors;

(vi) the Pledgor files or is served with a petition for relief under the 

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Bankruptcy Code, or any similar state or federal statute, or a proceeding is instituted against the Pledgor seeking a readjustment of its indebtedness;

(vii) any of the Collateral is attached pursuant to a court order or other legal process;

(viii) the Pledgor admits, in writing, its inability to pay its debts as they become due; or

(ix) the Pledgor permits the Company either to dissolve or liquidate in whole or in part, or to purchase, redeem, or retire its capital stock without prior written approval of the Pledgee.

(f) Note. The term "Note" means that certain promissory note dated December 17, 2010, in the amount of $100,000 tendered by the Pledgor to the Pledgee.

(g) Obligations. The term "Obligations" means all of the debts, financial obligations and other duties owed by the Pledger to the Pledgee under the Stock Purchase Agreement, the Stock Grant and Option Agreement, the Promissory Note, this Agreement, and any other account or matter.

(h) Purchase Agreement. The term "Purchase Agreement" means that certain Stock Purchase Agreement, the Promissory Note, the Stock Grant and Option Agreement, the Irrevocable Joint Escrow Instructions and this Stock Pledge Agreement all dated the 17th day of December, 2010, between Pledgor and Pledgee.

2. Pledge of Shares and Creation of Security Interest. The Pledgor pledges the Collateral to the Pledgee to secure the full and punctual payment and discharge of the Obligations, and grants to the Pledgee a continuing security interest in the Collateral and any proceeds of the Collateral.

3. Escrow Agent. The Pledgor and the Pledgee appoint Matthew B. Maza, Attorney at Law, to serve as Escrow Agent. The Pledgor agrees to deposit the Certificates, together with a stock power endorsed in blank for each Certificate, with the Escrow Agent upon closing of the Purchase Agreements.

4. Covenants and Warranties of Pledgor.

The Pledgor covenants and warrants as follows:

(a) Payment of Indebtedness. The Pledgor will promptly pay and perform the Obligations when due. In doing so, the Pledgor shall comply fully with all terms and provisions of the Purchase Agreement, the Note, and this Agreement.

(b) Ownership of Collateral. The Pledgor has marketable title to the Collateral, free from prior liens, encumbrances, or pledges of any kind.

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(c) Liens. The Pledgor will neither create nor permit the creation of any lien or other encumbrance of the Collateral without the prior written consent of the Pledgee.

(d) Transfers. The Pledgor will neither make nor permit any transfer of the Collateral, except as provided in this Agreement, without the prior written consent of the Pledgee.

(e) Reimbursement of Outlays. The Pledgor will reimburse Pledgee for any expenses reasonably incurred by the Pledgee in protecting or realizing on the Collateral.

(f)  Placement of Legend. The Pledgor shall place a legend on the Certificates stating that the shares represented by the Certificates are subject to the restrictions imposed by this Agreement.

(g) Securities Duly Authorized and Issued. The Collateral has been duly authorized and issued by the Company.

(h) No Distributions or Sale of Stock. The Pledgor shall not, without the prior written consent of the Pledgee, cause or allow the Company to

(1) issue new stock of any class with voting rights which would reduce the Silver Hill Mines 2009 Series “A”  Preferred stock to below 50% of the voting power of the Company or fail to reserve sufficient common shares upon conversion to common stock;

(2) declare or distribute a stock dividend or make any other distribution with respect to the Collateral;

(3) combine the already issued securities of the Company into a lesser number of shares; or

(i) Pledge of New Shares. If the Company issues any additional shares to the Pledgor, or undertakes a stock dividend, reclassification, reorganization or other change to the capital structure of the Company during the term of this Agreement, the Pledgor agrees to deposit immediately with the Escrow Agent all additional shares of stock or securities of the Company issued to the Pledgor. Such additional shares or securities shall be held subject to the terms of this Agreement in the same manner as the Collateral originally pledged under this Agreement.

(j) Financial Data. Upon request, the Pledgor shall provide to the Pledgee or the Pledgee's agent, quarterly and year-end financial statements, accounts payable records, invoices and purchase records, general ledgers, check vouchers, and any other supporting documents relating to the finances of the Company.

(k) Maintenance of Accurate Records. The Pledgor shall cause the Company to maintain accurate records and books of account in accordance with generally accepted accounting principles. The same accounting methods shall be consistently applied throughout the record periods. The Pledgee shall have the right to inspect, check, and make copies of the Company's 

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books and records at reasonable times without prior notice.

(l) Payment of Taxes and Indebtedness. The Pledgor shall cause the Company to pay promptly all liens, taxes, assessments, or contributions required by law which may come due and which are lawfully levied or assessed with respect to the Company, its assets, or any of the Collateral. The Pledgor will execute and deliver to the Pledgee, upon demand, certificates attesting to the timely payment or deposit of the sums owed on all such liens, taxes, assessments, or contributions. The Pledgor will make prompt payment on all obligations and indebtedness secured by the Collateral. The Pledgor shall fully comply with all terms and provisions of this and all other security instruments to which it is a party.

(m) Notice of Change of Address. The Company's books and records are maintained at its principal place of business, located at 3565 Las Vegas Blvd., Suite 723, Las Vegas, NV 89109. The Pledgor shall immediately notify the Pledgee if the Company changes the address of the office where it keeps its books and records.

(n) Maintain Corporation Existence. The Pledgor shall cause the Company to maintain its corporate existence and comply with all applicable federal, state, or local statutes and regulations. The Pledgor shall ensure that the Company maintains its properties and assets in good operating condition.

(o)  Merger or Sale of Assets. The Pledgor shall not permit the Company to enter into any merger agreement or to sell or lease all or substantially all of its assets without the prior written approval of the Pledgee.

(p) Guarantees. The Pledgor shall not permit the Company to assume, guarantee, or otherwise become liable on the obligation of any person or entity, except by endorsement of instruments for deposit or collection, or pursuant to transactions undertaken in the ordinary course of business, without the prior written approval of the Pledgee.

(q) Conditional Resignation of Directorship. The Pledgor agrees to submit, on the date of this Agreement, its resignation as a director and officer of the Company, in the form attached as Exhibit “A”. The resignation shall be effective, at the option of the Pledgee, upon Default.

(r) Voting of Collateral upon Default. Upon Default, the Pledgee shall be entitled, after expiration of the Cure Period, to vote the Collateral held in escrow by the Escrow Agent, and to appoint new directors of the Company to serve in place of the directors then holding office.

5. Duties of Pledgee.

The Pledgee covenants and warrants as follows:

(a) Return of Collateral. The Pledgee shall ensure the return of the Collateral to the Pledgor upon the complete and satisfactory performance of the Obligations.

(b) Protection of Collateral. The Pledgee shall not sell the Collateral or engage in 

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any acts which will cause or contribute to the depreciation of the value of the Collateral, other than to take action necessary to levy upon the Collateral pursuant to a Default.

(c) Approval of Corporate Actions. The Pledgee shall not unreasonably withhold approval of proposed actions by the Company.

6. Exercise of Shareholder Rights.

(a) Receipt of Dividends and Distributions. As long as the Pledgor is not in Default, the Pledgor shall have the right to receive and retain any dividends or other distributions approved and paid on the Collateral.

(b) Right to Vote. As long as the Pledgor is not in Default, the Pledgor may vote the Collateral for all purposes allowed within the restrictions set by this Agreement, the Note, and the Purchase Agreement. The Pledgor agrees not to vote the shares or otherwise to act in any way which will undermine the value of the Collateral.

(c) Compliance with Securities Laws. The requirements of the federal securities laws, applicable blue sky or other state securities laws, and similar laws analogous in purpose or effect may limit the Pledgee's actions if the Pledgee elects, following a Default, to dispose of any part of the Collateral, and also may limit the subsequent transferee's ability to transfer the Collateral. Accordingly, the Pledgee agrees that if the Pledgee sells the Collateral at any public or private sale, the Pledgee will sell only to a buyer who will give further assurances, reasonably satisfactory in form and substance to Pledgor and its counsel, to the effect that the sale is exempt from registration under the federal Securities Act of 1933 as amended, and under applicable state securities laws.

7. Default and Return of Collateral.

(a) Notice of Default and Cure. The Pledgee shall deliver Notice of any Default to the Pledgor and to the Escrow Agent. The Pledgor shall have the right to cure any Default specified under Section 1(e)(i) or (ii) within the Cure Period. The Pledgor may not cure a Default described in Section 1(e)(iii) through (ix) of this Agreement. If the Pledgor fails to cure a Default within the Cure Period, or is prohibited from curing the Default, then, after expiration of the Cure Period, the Pledgee may pursue any and all remedies provided in this Agreement.

(b) Waiver of Presentment, Demand, and Protest. The Pledgor waives any right it may have to presentment, demand, or protest of any Default.

(c) Acceleration upon Default. In the event of a Default, following expiration of the Cure Period, the Obligations shall become immediately due and payable without further notice or demand, at the Pledgee's option.

(d) Pledgee May Register Shares. Should a Default occur, upon expiration of any Cure Period, the Pledgee may, immediately upon receipt of the Certificates and stock powers from the escrow agent, cause the Collateral to be transferred to the Pledgee's name on the stock records of the Company and may exercise any right normally incident to the ownership of the Collateral, 

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including the right to vote, to liquidate the Company, or to sell the Company's assets.

(e) Sale of Collateral. Upon receipt of the Certificates and stock powers, the Pledgee may sell all or any part of the Collateral at public or private sale or the Pledgee may keep the collateral in full satisfaction of the Obligation.  The Pledgee may purchase all or any part of the Collateral at the sale. Proceeds of any sale shall be applied first to pay all costs and expenses related to the Default and sale of the Collateral, including all attorneys' fees and the costs and expenses of the Escrow Agent, and second, to pay all amounts owed on the Obligations on the date of sale. The balance of the proceeds, if any, shall be remitted to the Pledgor.

(f) Remedies Cumulative. Upon Default, the Pledgee shall have all rights available to the Pledgee at law or in equity, including all rights available under the Washington Uniform Commercial Code, and all rights and remedies granted under this Agreement, the Note, and the Purchase Agreement. These rights and remedies shall be cumulative, and may be exercised singly or concurrently with all other rights and remedies the Pledgee may have. Nothing in this Agreement shall preclude the Pledgee from collecting any indebtedness without resorting to the Collateral.

(g) Order of Realization on the Collateral. The Pledgee may realize upon the Collateral in any order.

(h) Exercise of Conditional Resignation. Upon Default, the Pledgee may exercise the conditional resignation of the director and officer granted as part of this Agreement.

8. Duties of Escrow Agent.

The obligations and duties of the Escrow Agent are confined to those specifically enumerated in the following escrow instructions:

(a) Retain Certificates. The Escrow Agent shall retain possession of the Certificates and the stock powers, as agent of both the Pledgor and the Pledgee, until all of the Obligations have been fully paid and all of the Pledgor's duties under the Purchase Agreements have been performed, or until delivery of the Certificates and stock powers pursuant to paragraph (c) below.

(b) Notice to Escrow Agent upon Default. In the event of a Default, the Pledgee shall give written notice of the Default to the Pledgor and to the Escrow Agent.

(c) Delivery of Collateral. If the Escrow Agent has received satisfactory evidence that written notice of Default has been delivered to the Pledgor, then, upon expiration of the Cure Period, the Escrow Agent shall deliver the Certificates and stock powers to the Pledgee, unless prior to the expiration of the Cure Period the Pledgor has notified the Pledgee and the Escrow Agent to withhold delivery of the Certificates and stock powers to the Pledgee.

(d) Agent May Withhold Delivery. Should the Pledgor notify the Escrow Agent to withhold delivery of the Collateral to the Pledgee, the Escrow Agent shall not deliver the Collateral to either party until the controversy is settled by written agreement of the parties, by an order or decree of a court of competent jurisdiction, or by the certificate of an arbitration decision delivered 

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pursuant to Section 9(e) of this Agreement.

(e) Controversies with Third Parties. If any controversy arises between the Pledgor or the Pledgee and a third party, the Escrow Agent shall not be required to determine the controversy or to take any action. The Escrow Agent may await the settlement of any controversy by final, appropriate, legal proceedings, by written agreement, or by the certificate of an arbitration decision before taking any action with regard to the Collateral.

(f) Agent Institutes Legal Proceedings. The Escrow Agent may institute interpleader or other appropriate legal proceedings in connection with determining how and when to distribute the Collateral if the parties have failed to act for one hundred twenty (120) days after the Escrow Agent receives notice of Default under Paragraph (b) above.

(g) Agent Not Liable. The Escrow Agent shall not be liable for any loss which may occur by reason of false representations or other actions of the Pledgor or the Pledgee. The Escrow Agent shall not be liable for the exercise of its discretion in any particular manner except in instances of gross negligence or willful misconduct by the Escrow Agent.

(h) Division of Agent's Fees. The Pledgor will each pay all of the fees and charges of the Escrow Agent in connection with this Agreement, including any attorneys' fees and costs incurred by the Escrow Agent in connection with this Agreement. The fee agreed upon for the Escrow Agent's services is the fee normally charged by the Escrow Agent for its services at its customary hourly rates for time spent in connection with the escrow.

9. Arbitration.

Any dispute concerning the release of the Collateral from escrow or arising out of the sale or transfer of the Collateral pursuant to Section 7(e) of this Agreement will be settled by arbitration as set forth in this Section 9. No legal right of action may arise out of any such dispute until arbitration has been completed. Each party, however, will have full access to the courts to compel compliance with these arbitration provisions, to enforce an arbitration award, or to seek injunctive relief, whether or not arbitration is available or under way. The arbitration will take place as follows:

(a) Notice. The party demanding arbitration must deliver a written notice to the other party. The written notice must contain a demand for arbitration, a clear statement of the issue or issues to be resolved by arbitration, an appropriate reference to the provision of the Agreement which is involved, a statement describing the relief the party requests through arbitration, and the name and address of the arbitrator selected by the demanding party.

(b) Response. The party receiving the notice of the demand for arbitration must provide a written response to the demand within fifteen (15) days following receipt of the notice. The response must contain a clear statement of the respondent's position concerning the issues in dispute and the name and address of the arbitrator it selects as one of the arbitrators to hear the dispute. If the party receiving the notice of demand for arbitration fails to designate its arbitrator within the time allowed, the demanding party may apply to the presiding department of Spokane County Superior Court to designate the second arbitrator.

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(c) Third Arbitrator. Within seven (7) days following the selection of the second arbitrator, the two arbitrators selected in accordance with subsections (a) and (b) will select a third arbitrator. If they fail to do so within that time period, either party may apply to the Superior Court for Spokane County, State of Washington, to appoint a third arbitrator.

(d) Arbitration Meeting. The arbitrators will meet in Spokane, Washington within twenty (20) days after the selection of the third arbitrator and will allow each party an opportunity to submit oral or written evidence and argument concerning the issues in dispute. The three arbitrators may resolve only the questions submitted to arbitration, and must include as part of their consideration a full review of this Agreement and all material incorporated in this Agreement by reference.

(e) Decision. The decision of a majority of the arbitrators will be final and will bind the parties. The decision shall be issued in the form of a written certificate of decision.

(f) Consent to Change. By written consent of all parties to any dispute under this Agreement, the method of selection of arbitrators, or even the arbitrators selected, may be changed at any time.

(g) Payment of Costs. Subject to the attorneys' fees provision contained in Section 11(g), in any arbitration, each party will pay its own costs, witness fees, attorneys' fees, and the fees charged by the arbitrator it selects. The fees charged by the third arbitrator and the costs of the proceeding shall be borne equally.

(h) State Law. Except to the extent that the terms of this Agreement provide otherwise, the terms and provisions of Chapter 7.04 RCW are incorporated in and made a part of this Agreement.

10. Termination of Agreement. This Agreement shall remain in effect until the Obligations have been discharged in full, at which time it shall terminate, and the Escrow Agent shall return the Collateral to the Pledgor or its assigns.

11. Miscellaneous.

(a) Waiver. No right or obligation under this Agreement will be deemed to have been waived unless evidenced by a writing signed by the party against which the waiver is asserted, or by its duly authorized representative. Any waiver will be effective only with respect to the specific instance involved, and will not impair or limit the right of the waiving party to insist upon strict performance of the right or obligation in any other instance, in any other respect, or at any other time.

(b) Notice. Any notice or other communication required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given or made either (a) when delivered to the party to which it is directed, or (b) three (3) days after being deposited in the United States certified or registered mail, postage prepaid, return receipt requested, and properly addressed 

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to the party to which it is directed. A communication will be deemed to be properly addressed if sent to the Pledgor at 3565 Las Vegas Blvd., Suite 723, Las Vegas, NV 89109, if sent to the Pledgee at 18610 E. 32nd Avenue, Greeancres, WA 99016, and if sent to the Escrow Agent at 1425 Broadway, Suite 454, Seattle, WA 98122. At any time during the term of this Agreement, the Pledgor, the Pledgee, and the Escrow Agent may change the address to which notices and other communications must be sent by providing written notice of a new address within the United States to the other parties. Any change of address will be effective ten (10) days after notice is given.

(c) Modifications to Be in Writing. To be effective, any modification to this Agreement must be in writing signed by all parties to the Agreement.

(d) Agreement Binding upon Successors and Assigns. This Agreement shall bind the Pledgor and its successors and assigns. All rights, privileges, and powers granted to the Pledgee under this Agreement shall benefit the Pledgee and its successors and assigns.

(e) Assignment of Agreement. At any time, the Pledgee may assign or transfer any of its rights or powers under this Agreement to any person or entity. The Pledgor may not transfer its rights, duties, or obligations under this Agreement without the prior written consent of the Pledgee.

(f) Further Assurances. Both the Pledgor and the Pledgee agree to take any further actions and to make, execute, and deliver any further written instruments which may be reasonably required to carry out the terms, provisions, intentions, and purposes of this Agreement.

(g) Attorneys' Fees and Costs. If the Pledgor or the Pledgee institutes legal proceedings, other than an arbitration as provided under Section 9, to settle any controversy arising under this Agreement, the Purchase Agreement, or the Note, the prevailing party in the action shall be entitled to recover its reasonable attorneys' fees and costs.

(h) Governing Law. This Agreement shall be enforced, governed, and construed in all respects in accordance with the substantive and procedural laws of the State of Washington.

(i) Venue. The parties to this Agreement agree that the proper venue of any action on this Agreement shall be in Spokane County, Washington.

(j) Severability. If any provision of this Agreement or any application of any provision is determined to be unenforceable, the remainder of this Agreement shall be unaffected. If the provision is found to be unenforceable when applied to particular persons or circumstances, the application of the provision to other persons or circumstances shall be unaffected.

(k) Headings. Headings used in this Agreement have been included for convenience and ease of reference only, and will not in any manner influence the construction or interpretation of any provision of this Agreement.

(l) References. Except as otherwise specifically indicated, all references in this Agreement to numbered or lettered sections or subsections refer to sections or subsections of this Agreement. All references to Exhibits refer to Exhibits attached to this Agreement. All references to 

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"this Agreement," or to any Exhibit to this Agreement, shall include any subsequent amendments to this Agreement, or to the Exhibit, as the case may be.

(m) Number and Gender. When required by the context:

(1) the word "it" will include the plural and the word "its" will include the singular;

(2) the masculine will include the feminine gender and the neuter, and vice versa; and

(3) the word "person" will include corporation, inn, partnership, or other form of association.

(n) Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which together will constitute a single agreement.

(o) Entire Agreement. This Agreement represents the entire understanding of the parties with respect to the subject matter of the Agreement. There are no other prior or contemporaneous agreements, either written or oral, among the parties with respect to this subject.

EXECUTED AND DELIVERED this 17th day of December, 2010.

PLEDGOR: /s/ Lisa Logan

Selva Resources Corp.

By: Lisa Logan

Title: Vice President

PLEDGEE:_/s/ Gregory Wilson

Long Lane Capital, Inc.

By:  Gregory M. Wilson

Title:  President

ESCROW AGENT: Matthew Maza

Matthew C. Maza, Esq.

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Exhibit 10.4

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

CONTINGENT COMMON STOCK PURCHASE WARRANT

To Purchase 2.0% Percent of the Shares of Common Stock of

SILVER HILL MINES, INC.

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Long Lane Capital, Inc., a Washington corporation (the “Holder”), is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date Long Lane Capital, Inc. gives notice of intent to purchase the shares (the “Initial Exercise Date”) and on or prior to the close of business March 30, 2011 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Silver Hill Mines, Inc., a Nevada corporation (the “Company”), up to a number of common shares (the “Warrant Shares”) of Common Stock, par value $.001 per share, of the Company (the “Common Stock”) representing no less than Two (2.0%) percent of the issued and outstanding common stock of the Company at the time of Exercise Notice, adjusting specifically for the planned Selva merger and reorganization, as well as financing relating to such payments of the Promissory Note associated to the transaction which encompass this Warrant, (the “Dilution Events”).  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).  If the planned Selva or other merger has not been completed on, or before March 30, 2011, the termination date will be tolled indefinitely until the completion of the merger. After the completion of the merger or business combination, the Holder will have ninety (90) days to subscribe for and purchase the common shares.

Section 1.

Exercise.

a)

Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (or such other office 

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or agency of the Company as it may designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company); provided, however, within 10 Business Days of the date said Notice of Exercise is delivered to the Company, if this Warrant is exercised in full, the Holder shall have surrendered this Warrant to the Company and the Company shall have received  payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within 1 Business Day of receipt of such notice.  In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

b)

Exercise Price.  The exercise price of the Common Stock under this Warrant shall be $0.001, (the “Exercise Price”).

c)

Mechanics of Exercise. 

i.

Authorization of Warrant Shares.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).  

ii.

Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder physical delivery to the address specified by the Holder in the Notice of Exercise within 7 Business Days from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”).  This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company.  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price 

2

and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance of such shares, have been paid.  

iii.

Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

iv.

No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price.

v.

Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

vi.

Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

Section 3.

Fundamental Transaction. If, at any time while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another company, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another company or persons) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive no less than Two (2%) Percent of the successor or acquiring corporation or of the Company, if it is the surviving corporation

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Section 4.

Transfer of Warrant.

a)

Transferability.  Subject to compliance with any applicable securities laws and this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  

b)

Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

c)

Transfer Restrictions.

If

, at the 

time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be registered pursuant to an effective

registration

 statement under the Securities Act

 and 

under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without

 registration under

the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated under the Securities Act or a qualified institutional buyer as defined in Rule 144A(a) under the Securities Act

 A legend in substantially the following form has been or will be placed on any certificate(s) or other document(s) evidencing the Shares:

THE SECURITIES REPRESENTED BY THIS INSTRUMENT OR DOCUMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAW OF ANY STATE OF THE UNITED STATES OR FOREIGN JURISDICTION.  THE TRANSFER OF THESE SECURITIES IS PROHIBITED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING

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TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

Section 5.

Miscellaneous.

a)

Title to Warrant.  Prior to the Termination Date and subject to compliance with applicable laws and Section 4 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly endorsed.  The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company.

b)

No Rights as Shareholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof.  Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment.

c)

Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

d)

Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

e)

Authorized Shares.  

The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  

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Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

f)

Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the laws of the State of Washington, venue Spokane County.

g)

Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

h)

Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date.  If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

i)

Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Stock Purchase Agreement.

j)

Limitation of Liability.  No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

k)

Remedies.  Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights 

6

under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.  The Company agrees to pay all costs and expenses which the Holder may incur by reason of any Default, including, but not limited to, reasonable attorneys' fees, expenses, and costs incurred in any action undertaken with respect to this Note, or any appeal of such an action. Any judgment recovered by the Holder shall bear interest at the Default Rate.

l)

Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares.

m)

Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

n)

Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

o)

Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

Dated:  December 17, 2010

 

	
	SILVER HILL MINES, INC.

	By:/s/ Lisa Logan_

     Name: Lisa Logan

     Title:  President

7

NOTICE OF EXERCISE

TO:

SILVER HILL MINES, INC.

(1)

The undersigned hereby elects to purchase _____________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

(2)

Payment shall take the form of (check applicable box):

[  ] in lawful money of the United States; or

[ ] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

(3)

Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

_______________________________

The Warrant Shares shall be delivered to the following:

_______________________________

_______________________________

_______________________________

(4)  Accredited Investor.  The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: _____________________________________________________________

Signature of Authorized Signatory of Investing Entity: _______________________________________

Name of Authorized Signatory: _________________________________________________________

Title of Authorized Signatory: __________________________________________________________

Date: ______________________________________________________________________________

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

Dated:  ______________, _______

Holder’s Signature:

_____________________________

Holder’s Address:

_____________________________

_____________________________

Signature Guaranteed:  ___________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

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