Document:

ex10-5.htm

 

Exhibit 10.5

AMENDMENT TO OPERATING AGREEMENT

THIS AMENDMENT TO OPERATING AGREEMENT (the “Amendment”), dated as of August 3, 2011, is made and entered into by and among MINERAL RIDGE GOLD, LLC, a Nevada limited liability company (the “Company”), GOLDEN PHOENIX MINERALS, INC., a Nevada corporation and a member of the Company (“GPXM”) and SCORPIO GOLD (US) CORPORATION, a Nevada corporation and a member and manager of the Company (“Scorpio US”).

 

Recitals

 

A.           GPXM and Scorpio US are the sole owners of the Company.  GPXM and Scorpio US are parties to that certain Operating Agreement for Mineral Ridge Gold, LLC dated as of March 10, 2010 (as amended, modified, supplemented or restated, the “Operating Agreement”), which governs the management, operation and administration of the Company.

 

B.           GPXM, Scorpio US and the Company desire hereby to amend the Operating Agreement as set forth herein and to ratify and confirm the Operating Agreement (as so amended).

 

Agreement

 

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

 

1.           Defined Terms.  Capitalized terms used but not defined in this Amendment shall have the meanings given thereto in the Operating Agreement.

 

2.           Agreements and Amendments to the Operating Agreement.

 

a.           The Operating Agreement is hereby amended to the extent necessary to give effect to the provisions of this Amendment and to incorporate the provisions of this Amendment into the Operating Agreement.  The Operating Agreement, together with this Amendment, shall be read together and have effect so far as practicable as though the provisions thereof and the relevant provisions hereof are contained in one document.

 

b.           The Operating Agreement is hereby amended by deleting Section 4.2(b)(i) therefrom and substituting the following therefor:

 

In the event that Scorpio US elects, at its sole and absolute discretion, to fund one hundred percent (100%) of the capital expenditures required to place the Properties into Commercial Production, as and when required, and subsequently brings the Properties into Commercial Production within 30 months from the Closing Date (as defined below), the Members’ respective Ownership Interests shall automatically adjust such that Scorpio US’s Ownership Interest shall increase to eighty percent (80%) and GPXM’s Ownership Interest shall decrease to twenty percent (20%).

 

  

  

  

c.           The Operating Agreement is hereby amended by deleting the definition of “Commercial Production” from Exhibit D to the Operating Agreement and substituting the following therefor:

 

“Commercial Production” means the production or processing of a minimum of at least 3,500 ounces per month of gold Products from Mining Operations at or on the Properties for a period of at least four (4) consecutive calendar months, as such rate of production or processing is determined by the Management Committee in accordance with good mining industry practices.

 

d.           GPXM, Scorpio US and the Company agree that the amended definition of Commercial Production shall be used and applied in all instances in the Operating Agreement.  GPXM and Scorpio US, as the sole members of the Company, together with the Company, further agree that the Operating Agreement, as amended hereby, is ratified, confirmed, continued and shall remain effective in accordance with its terms.

 

3.           Miscellaneous Provisions.

 

a.           The Operating Agreement as amended by this Amendment is hereby ratified, approved, confirmed and continued in each and every respect, and the parties hereto agree that the Operating Agreement remains in full force and effect in accordance with its terms.  All references to the Operating Agreement in any other document or instrument shall hereafter be deemed to refer to the Operating Agreement as amended hereby.

 

b.           This Amendment shall be governed by and construed in accordance with the laws of the State of Nevada, excluding that body of law relating to conflict of laws.

 

c.           This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

d.           This Amendment shall be binding upon and inure to the benefit of the Company, GPXM and Scorpio US, and their respective successors and assigns permitted by the Operating Agreement.

 

 

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

 

	  	
The Company:

	  	  
	  	
MINERAL RIDGE GOLD, LLC

	  	  
	  	  
	  	
By:

	  	
Name:

	  	
Title:

	  	  
	  	  
	  	
GPXM:

	  	  
	  	
GOLDEN PHOENIX MINERALS, INC.

	  	  
	  	  
	  	
By:

	  	
Name:_______________________________

	  	
Title:________________________________

	  	  
	  	  
	  	
SCORPIO US:

	  	  
	  	
SCORPIO GOLD (US) CORPORATION

	  	  
	  	  
	  	
By:

	  	
Name:_______________________________

	  	
Title:________________________________

 

 

-3-ex10-6.htm

 

Exhibit 10.6

TERMINATION AGREEMENT

 

 

THIS TERMINATION AGREEMENT is dated as of August 3, 2011

 

AMONG:

 

	
  

	
GOLDEN PHOENIX MINERALS, INC., a Nevada corporation, with an address of 1675 E. Prater Way, Suite 102, Sparks, Nevada 89434 (“GPXM”)

 

 

	
  

	
MINERAL RIDGE GOLD, LLC, a Nevada limited liability company, with an address of 1515 7th Street, Elko, Nevada 89801 (“MRG”)

 

 

SCORPIO GOLD CORPORATION, a British Columbia corporation, with an address of 995 Germain Street, Val-d’Or, Quebec, Canada J9P 7H7 (“Scorpio”)

 

 

SCORPIO GOLD (US) CORPORATION, a Nevada corporation, with an address of 1515 7th Street, Elko, Nevada 89801 (“Scorpio US)

 

 

AND:

 

WATERTON GLOBAL VALUE, L.P., a British Virgin Islands limited partnership, with an address of c/o Waterton Global Resource Management, Inc., 199 Bay Street, Toronto, Ontario, Canada M5L 1E2 (“Waterton”)

WHEREAS:

 

A.                      GPXM, MRG, Scorpio and Waterton are parties to that certain Right of First Refusal Agreement dated October 20, 2010 (as amended, modified, supplemented or restated, the “ROFR”);

 

B.                      In connection with the ROFR, MRG granted to GPXM that certain Quitclaim Royalty Deed dated October 20, 2010 with respect to the real property of MRG located in Esmeralda County, Nevada, as the same was recorded in the Official Records of Esmeralda County, Nevada on October 20, 2010 at Document No. 0180651, Book 298, Page 0036, as amended by the Correction Quitclaim Deed dated October 20, 2010, which conveyed a twenty percent (20%) Net Profits Royalty on the terms and conditions set forth therein (as amended, modified, supplemented or restated, the “Royalty
Deed”); and

  

  

  

 

C.                      The parties hereto now wish to cancel, rescind, terminate and release the ROFR and the Royalty Deed.

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

 

	
1.

	
TERMINATION

 

The parties hereto acknowledge and agree that the ROFR and the Royalty Deed (and the royalty granted thereby) are hereby cancelled, rescinded, released and terminated and shall be of no further force or effect, effective as of the date hereof.

 

	
2.

	
RECONVEYANCE OF ROYALTY AND ROYALTY DEED

 

Concurrently with this Agreement, GPXM shall execute and deliver a Quitclaim Royalty Deed in favour of MRG, substantially in the form of the Royalty Deed, in order to remise, release, quitclaim and reconvey to MRG all right, title and interest of GPXM in and to the royalty and property subject to the Royalty Deed, which shall be filed with the Official Records of Esmeralda County, Nevada.

 

	
3.

	
FURTHER ASSURANCES

 

The parties hereto agree to execute and deliver any further deeds, reconveyances, documents, certificates and instruments and perform any further acts reasonably requested by any of the parties to this Agreement which are necessary or appropriate to carry out the intent of this Agreement and the transactions contemplated hereby.

 

	
4.

	
BENEFIT AND BINDING EFFECT

 

This Agreement will benefit and bind the parties and their successors and assigns and all persons claiming through them as if they had been a party to this Agreement.

 

	
5.

	
GOVERNING LAW

 

This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada.  The parties hereto hereby irrevocably and unconditionally submit and attorn to the jurisdiction of the courts of the State of Nevada, for any legal proceedings, suits, or actions arising out of or relating to this Agreement and the transactions contemplated hereby.

 

 

  

  

  

6.                            COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each such counterpart will be deemed to be an original and all such counterparts together will form one agreement, effective as of the reference date first set out above.  This Agreement may be validly executed and delivered by facsimile, portable document format (.pdf) or other electronic transmission (including e-mail), and a signature by facsimile, portable document format (.pdf) or other electronic transmission (including e-mail) shall be as effective and binding as an original signature.

 

 

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

 

 

GOLDEN PHOENIX MINERALS, INC.

 

By:________________________

Name:

Title:

 

MINERAL RIDGE GOLD, LLC

 

By:________________________

Name:

Title:

 

SCORPIO GOLD CORPORATION

 

By: ________________________

Name:

Title:

 

SCORPIO GOLD (US) CORPORATION

 

By: ________________________

Name:

Title:

 

WATERTON GLOBAL VALUE, L.P.,

by the General Partner of its General Partner,

CORTLEIGH LIMITED

 

By:  ________________________                                                    

Authorized Signatory

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