Document:

Exhibit 10.5

    

      Exhibit
        10.5

       

      CHANGE
        OF CONTROL AND RETENTION AGREEMENT

       

      This
        Change of Control and Retention Agreement (the “Agreement”) is made and entered
        into as of March 13, 2006, by and between Interactive Intelligence, Inc.,
        an
        Indiana corporation (the “Company”), and {Executive Name} (the “Executive”).

       

      Recitals:

       

      WHEREAS,
        the Executive is a key employee of the Company who possesses valuable
        proprietary knowledge of the Company, its business and operations and the
        markets in which the Company competes; and 

       

      WHEREAS,
        the Company draws upon the knowledge, experience, expertise and advice of
        the
        Executive to manage its business for the benefit of the Company’s shareholders;
        and 

       

      WHEREAS,
        the Company recognizes that, if a Change of Control were to occur, the resulting
        uncertainty regarding the consequences of such an event could adversely affect
        the performance of, and the Company’s ability to attract and retain, its key
        employees, including the Executive; and 

       

      WHEREAS,
        the Company believes that the existence of this Agreement will serve as an
        incentive to the Executive to remain in the employ of the Company, and would
        enhance the Company’s ability to call on and rely upon the Executive if a Change
        of Control were to occur; and 

       

      WHEREAS,
        the Company and the Executive desire to enter into this Agreement to encourage
        the Executive to continue to devote the Executive’s full attention and
        dedication to the success of the Company, and to provide specified compensation
        and benefits to the Executive in the event of a Termination Upon Change of
        Control pursuant to the terms of this Agreement. 

       

      NOW,
        THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 

       

      
        	1.  	
                PURPOSE

              

      

       

      The
        purpose of this Agreement is to provide specified compensation and benefits
        to
        the Executive in the event of his Termination Upon Change of Control. Subject
        to
        the terms of any applicable written employment agreement between Company
        and the
        Executive, either the Executive or Company may terminate the Executive’s
        employment at any time for any reason. 

       

      
        	2.  	
                TERMINATION
                  UPON CHANGE OF CONTROL

              

      

       

      2.1
        Prior
        Obligations.
        In the
        event of the Executive’s Termination Upon Change of Control, the Executive shall
        be entitled to the benefits described in this Section 2.1. 

       

      2.1.1
        Accrued
        Salary and Vacation.
        All
        salary and accrued vacation earned through the date of the Executive’s
        Termination Upon Change of Control shall be paid to Executive within thirty
        (30)
        days after the date on which the Executive's employment terminates (the
“Termination Date”). 

       

      2.1.2
        Accrued
        Bonus Payment.
        The
        Executive shall receive a lump sum payment of any bonus amounts (a) attributable
        to any of the Company’s completed fiscal periods for which a bonus was earned
        but is unpaid on the Termination Date, and (b) attributable to any uncompleted
        fiscal period for which a potential bonus award exists, to the extent that
        any
        such bonus was earned and is unpaid on the Executive’s Termination Upon Change
        of Control, in each case within thirty (30) days after the Termination Date.
        For
        purposes of this Section 2.1.2, the amount of bonus "earned" for an uncompleted
        fiscal period shall be based on the level of performance achieved as of the
        Termination Date.

       

      2.1.3
        Expense
        Reimbursement.
        Within
        ten (10) days following submission to the Company of proper expense reports
        by
        the Executive, the Company shall reimburse the Executive for all expenses
        incurred by the Executive in connection with the business of the Company
        prior
        to the Termination Date, consistent with the Company’s expense reimbursement
        policy in effect at the time each such expense was incurred. 

       

      2.2
        Additional
        Cash Severance Benefits.
        In the
        event of the Executive’s Termination Upon Change of Control, the Executive shall
        be entitled to receive from the Company an amount equal to: (a) if the
        Termination Date is prior to or on the effective date of the Change of Control,
        the Executive's Base Salary; or (b) if the Termination Date is after the
        effective date of the Change of Control, Executive's Base Salary, multiplied
        by
        a fraction, the numerator of which is that number of days equal to (i) 365
        minus
        (ii) the number of days between the effective date of the Change of Control
        and
        the Termination Date, and the denominator of which is 365. Subject to the
        following two sentences, the amount set forth in this Section 2.2 shall be
        paid
        in cash in a single lump sum payment within thirty (30) days following the
        Termination Date or, if later, the effective date of the Change of Control.
        The
        payment described in this Section 2.2 may not be made before the expiration
        of
        the Revocation Period described in Section 5.3, and it will not be made in
        the
        event the Executive revokes the General Release described in Section 5.3
        within
        the Revocation Period. If the Executive is a "specified employee" as defined
        in
        Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended
        (the
        "Code"), the payment described in this Section 2.2 will not be made before
        the
        date that is six months after the Termination Date (or, if earlier, the date
        of
        the Executive's death).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      2.3
        Stock
        Options and Other Equity Grants.
        In the
        event of the Executive’s Termination Upon Change of Control, then all
        outstanding stock options and any other then unvested or restricted equity
        grant
        then held by the Executive (other than any grants the vesting of which is
        contingent upon specified performance criteria being met) that by their original
        terms would have become vested or exercisable, or upon which the restrictions
        would have lapsed, within two years following the Termination Upon Change
        of
        Control, shall have their vesting or exercisability accelerated and any
        restrictions thereon shall lapse, such that (a) 100% of all shares subject
        to
        each of the Executive’s options that by their original terms would have become
        vested or exercisable within two years following the Termination Upon Change
        of
        Control, shall fully vest and become exercisable and shall remain so exercisable
        in accordance with their terms, and (b) 100% of all shares of each of the
        Executive’s other equity grants that by their original terms would have become
        vested and the restrictions thereon would have lapsed within two years following
        the Termination Upon Change of Control, shall vest and all restrictions thereon
        shall lapse. If the Termination Upon Change of Control is such that the
        Termination Date occurs during the period commencing on or after the date
        that
        the Company first publicly announces a definitive agreement designed to result
        in a Change of Control, then all outstanding stock options and any other
        then
        unvested or restricted equity grant then held by the Executive shall remain
        in
        effect and not be cancelled until such time as (i) the Change of Control
        occurs,
        in which case such options and other unvested or restricted equity grants
        shall
        be treated as described in the first sentence of this Section 2.3; or (ii)
        the
        definitive agreement is terminated prior to the Change of Control, in which
        case
        the options and other unvested or restricted equity grants will terminate
        and be
        forfeited on the date of the termination of the definitive agreement; provided,
        however, that in no event may any options remain outstanding after the
        applicable expiration date of the option. Notwithstanding the foregoing,
        with
        regard to any equity grant the vesting of which is contingent upon specified
        performance criteria being met, the effect of the Executive's Termination
        Upon
        Change of Control shall be determined pursuant to the specific provisions
        of the
        applicable award agreement.

       

      2.4
        COBRA.
        In the
        event of the Executive’s Termination Upon Change of Control, the Company shall
        offer the Executive and his eligible family members the opportunity to elect
        to
        continue their medical, dental and vision coverage (if any) under the Company's
        benefit plans pursuant to the continuation coverage requirements of the
        Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”). The
        Executive shall be responsible for paying the required monthly premiums for
        that
        coverage, but, at the time of payment of the cash severance benefits described
        in Section 2.2, the Company shall also pay to the Executive a lump sum cash
        stipend equal to twelve (12) times the monthly premium then charged to qualified
        beneficiaries for COBRA continuation coverage for the Executive (if then
        covered) and any family members then covered under the Company’s medical,
        dental, and vision plans (if any). The Executive may, but is not obligated
        to,
        use the stipend for the payment of COBRA premiums. The Company will pay the
        stipend to the Executive whether or not the Executive or anyone in his family
        elects COBRA continuation coverage, whether or not the Executive continues
        COBRA
        continuation coverage for a full 12 months, and whether or not the Executive
        receives medical, dental, or vision benefits from a subsequent employer during
        the period in which he would otherwise be entitled to receive COBRA continuation
        coverage. 

       

      2.5
        Indemnification.
        In the
        event of the Executive’s Termination Upon Change of Control, (a) the Company
        shall continue to indemnify the Executive against all claims related to actions
        arising prior to the termination of the Executive’s employment to the fullest
        extent permitted by law or provided in the organizational documents of the
        Company or by contract, and (b) if the Executive was covered by the Company’s
        directors’ and officers’ insurance policy, or an equivalent thereto (the
“D&O Insurance Policy”), immediately prior to the Change of Control, the
        Company or its Successor shall continue to provide coverage under a D&O
        Insurance Policy for twenty-four (24) months following the Executive’s
        Termination Upon Change of Control on substantially the same terms of the
        D&O Insurance Policy in effect immediately prior to the Change of Control,
        unless the annual cost
        of
        such “tail” D&O Insurance Policy is not available at
        a cost
        not greater than 200% of the annual premium paid on the date of the Change
        of
        Control by the Company for such insurance (the “Insurance Cap”), in which case
        the Company shall cause to be obtained as much comparable insurance for as
        long
        a period (not to exceed twenty-four (24) months following the effective date
        of
        the Change of Control)
        as is
        available for a cost not to exceed the Insurance Cap;
        provided,
        however,
        that if
        the agreement relating to the Change of Control provides terms at least as
        favorable as those in this subsection (b) with respect to a "tail" D&O
        Insurance Policy for the benefit of the Executive, then the terms of such
        agreement shall control and this subsection (b) shall be of no further force
        or
        effect. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	3.  	
                FEDERAL
                  EXCISE TAX UNDER SECTION 280G 

              

      

       

      3.1
        Avoidance
        of Excise Tax.
        If any
        amounts payable to the Executive under this Agreement or otherwise would
        be
        subject to the excise tax or denial of deduction imposed by Sections 280G
        and
        4999 of the Code (an "Excess Parachute Payment"), then the amounts payable
        under
        this Agreement or otherwise shall be reduced, or portions of applicable options
        or then unvested or restricted equity awards shall not vest or become
        exercisable as provided herein, in order to avoid any Excess Parachute
        Payment.

       

      3.2
        Calculation
        by Independent Public Accountants.
        Unless
        the Company and the Executive otherwise agree in writing, any calculation
        of the
        amount of any Excess Parachute Payments shall be made in writing by the
        Company’s independent public accountants (the “Accountants”), whose
        determination, absent manifest error, shall be conclusive and binding upon
        the
        Executive and the Company. For purposes of making such calculation, the
        Accountants may rely on reasonable, good faith interpretations concerning
        the
        application of Sections 280G and 4999 of the Code. The Company and the Executive
        shall furnish to the Accountants such information and documents as the
        Accountants may reasonably request in order to make the required calculation.
        The Company shall bear all fees and expenses the Accountants may charge in
        connection with such calculation. 

       

      
        	4.  	
                DEFINITIONS 

              

      

       

      4.1
        Capitalized
        Terms Defined.
        Capitalized terms used in this Agreement shall have the meanings set forth
        in
        this Section 4, unless the context clearly requires a different meaning.
        

       

      4.2
        “Base
        Salary”
        means
        the greater of (a) the annual salary of the Executive in effect immediately
        prior to the Change of Control, or (b) the annual salary of the Executive
        in
        effect immediately prior to the Termination Date. 

       

      4.3
        “Cause”
        means a
        good faith determination, on a reasonable basis, by not less than two thirds
        of
        the members of the Board of Directors of the Company (the “Board”) that the
        Executive: 

       

      (a)
        willfully failed to follow the lawful written directions of the Board of
        Directors of the Company provided to the Executive prior to such failure;
        provided that no termination for such Cause shall occur unless the Executive:
        (i) has been provided with notice, specifying such willful failure in reasonable
        detail, of the Company’s intention to terminate the Executive for Cause; and
        (ii) has failed to cure or correct such willful failure within thirty (30)
        days
        of receiving such notice;

       

      (b)
        engaged in gross misconduct which is materially detrimental to the Company;
        provided that no termination for such Cause shall occur unless the Executive:
        (i) has been provided with notice, specifying such gross misconduct in
        reasonable detail, of the Company’s intention to terminate the Executive for
        Cause; and (ii) has failed to cure or correct such gross misconduct within
        thirty (30) days of receiving such notice;

       

      (c)
        willfully failed to comply in any material respect with the Company’s
        Confidentiality and/or Proprietary Rights Agreement, the Company’s insider
        trading policy, or any other reasonable policies of the Company, in each
        case
        provided, or reasonably made available, to the Executive prior to such failure,
        where non-compliance would be materially detrimental to the Company; provided
        that no termination for such Cause shall occur unless the Executive: (i)
        has
        been provided with notice, specifying such willful failure in reasonable
        detail,
        of the Company’s intention to terminate the Executive for such Cause, and (ii)
        has failed to cure or correct such willful failure within thirty (30) days
        of
        receiving such notice; or

       

      (d)
        has
        been convicted of a felony (other than a felony arising from a violation
        of a
        motor vehicle law) or a crime involving moral turpitude, or it has been
        determined by a court that he or she committed a fraud, against the Company
        or a
        fraud against any other person or entity that is materially detrimental to
        the
        Company.

       

      4.4
        “Change
        of Control”
        means:

       

      (a)
        the
        acquisition by any “person” (as such term is used in Sections 13(d) and 14(d) of
        the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the
“beneficial ownership” (as defined in Rule 13d-3 promulgated under the Exchange
        Act), directly or indirectly, of securities of the Company representing fifty
        (50%) percent or more of (i) the then outstanding shares of common stock
        of the
        Company, or (ii) the combined voting power of the Company’s then outstanding
        voting securities; provided, however, that the following acquisitions shall
        not
        constitute a Change of Control: (i) any
        acquisition directly from the Company (excluding
        an acquisition by virtue of the exercise of a conversion privilege),
        (ii) any acquisition by the Company, (iii) any acquisition
        by any
        employee benefit plan (or related trust) sponsored or maintained by the Company
        or any entity controlled by the Company, (iv) any acquisition by Donald
        E.
        Brown, M.D. or person controlled by him, or (vi) upon the death of Donald
        E.
        Brown, M.D., any acquisition triggered by his death by operation of law,
        by any
        testamentary bequest or by the terms of any trust or other contractual
        arrangement established by him;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      (b)
        the
        Company is party to a merger or consolidation, or series of related
        transactions, which results in the voting securities of the Company outstanding
        immediately prior thereto failing to continue to represent (either by remaining
        outstanding or by being converted into voting securities of the surviving
        entity), directly or indirectly, at least fifty (50%) percent of the combined
        voting power of the voting securities of the Company or such surviving entity
        outstanding immediately after such merger or consolidation;

       

      (c)
        the
        sale or disposition of all or substantially all of the Company’s assets, or
        consummation of any transaction, or series of related transactions, having
        similar effect (other than to a subsidiary of the Company);

       

      (d)
        a
        change in the composition of the Board within any consecutive two-year period,
        as a result of which fewer than a majority of the directors are Incumbent
        Directors. “Incumbent Directors” shall mean directors who either (i) were
        directors of the Company as of the effective date of this Agreement, or (ii)
        are
        elected, or nominated for election, to the Board with the affirmative votes
        of a
        least a majority of those directors whose election or nomination was not
        in
        connection with an actual or threatened proxy contest related to the election
        of
        directors to the Company; or

       

      (e)
        the
        dissolution or liquidation of the Company.

       

      4.5
         “Disability”
        means
        the inability to engage in any substantial gainful activity by reason of
        any
        medically determinable physical or mental impairment that can be expected
        to
        result in death or can be expected to last for a period of not less than
        twelve
        (12) months.

       

      4.6
         “Good
        Reason”
        means
        the occurrence of any of the following conditions, without the Executive’s
        written consent:

       

      (a)
        assignment to the Executive of a title, position, responsibilities or duties
        that is not a Substantive Functional Equivalent to the title, position,
        responsibilities or duties which the Executive had immediately prior to the
        Change of Control;

       

      (b)
        a
        reduction in the Executive’s Base Salary or target bonus opportunity in effect
        immediately prior to the Change of Control (subject to applicable performance
        requirements with respect to the actual amount of bonus compensation earned
        that
        are similar to the applicable performance requirements in effect immediately
        prior to the Change of Control);

       

      (c)
        the
        failure of the Company (i) to continue to provide the Executive an opportunity
        to participate in any benefit or compensation plans provided to employees
        who
        held positions with the Company or its Successor comparable to the Executive’s
        position immediately prior to the Change of Control, or (ii) to provide the
        Executive all other fringe benefits (or the equivalent) in effect for the
        benefit of any employee group which includes any employee who held a position
        with the Company or its Successor comparable to the Executive’s position
        immediately prior to the Change of Control;

       

      (d)
        the
        Company’s requiring the Executive to (i) relocate to any office or location more
        than 50 miles (one-way) from the Company's office where the Executive was
        based
        immediately prior to the Change of Control, or (ii) to engage in travel in
        the
        performance of services for the Company at a frequency or for a duration
        substantially in excess of such travel required by the Company prior to the
        Change of Control;

       

      (e)
        a
        material breach of this Agreement by the Company, including failure of the
        Company to obtain the agreement of a Successor to perform all of the obligations
        of the Company under this Agreement; or

       

      (f)
        any
        act, set of facts or omissions with respect to the Executive that would,
        under
        applicable law, constitute a constructive termination of the
        Executive.

       

      Notwithstanding
        the foregoing, nothing described in any of subsections (a) through (f) above
        shall constitute Good Reason unless Executive provides Company written notice,
        in reasonable detail, of his or her belief that an action or inaction
        constituting such Good Reason has occurred and the Company fails to cure
        or
        correct such action or inaction, within thirty (30) days of its receipt of
        such
        written notice, such that the asserted Good Reason no longer exists.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      4.7
        “Substantive
        Functional Equivalent”
        means
        that, following a Change of Control, the Executive’s position must:

       

      (a)
        be in
        a substantive area of the Executive’s competence (e.g., finance or executive
        management) and not materially different from the position occupied immediately
        prior to the Change of Control;

       

      (b)
        allow
        the Executive to serve in a role and perform duties functionally equivalent
        to
        those performed immediately prior to the Change of Control; and

       

      (c)
        not
        otherwise constitute a material, adverse change in authority, title, status,
        responsibilities or duties from those of the Executive immediately prior
        to the
        Change of Control, causing the Executive to be of materially lesser rank
        or
        responsibility.

       

      4.8
        “Successor”
        means
        the Company as defined above and any successor to or assignee of substantially
        all of its business and/or assets. 

       

      4.9
        “Termination
        Upon Change of Control”
        means:

       

      (a)
        any
        termination of the employment of the Executive by the Company without Cause
        during the period commencing on or after the date that the Company first
        publicly announces a definitive agreement that results in a Change of Control
        (even though still subject to approval by the Company’s shareholders and other
        conditions and contingencies, but provided that the Change of Control actually
        occurs) and ending on the date which is eighteen (18) months following the
        Change of Control; or

       

      (b)
        any
        resignation by Executive for Good Reason where (i) such Good Reason occurs
        during the period commencing on or after the date that the Company first
        publicly announces a definitive agreement that results in a Change of Control
        (even though still subject to approval by the Company’s shareholders and other
        conditions and contingencies, but provided that the Change of Control actually
        occurs) and ending on the date which is eighteen (18) months following the
        Change of Control, and (ii) such resignation occurs within six (6) months
        following the occurrence of such Good Reason.

       

      Notwithstanding
        the foregoing, the term “Termination Upon Change of Control” shall not include
        any termination of the employment of the Executive: (1) by the Company for
        Cause; (2) by the Company as a result of the Disability of the Executive;
        (3) as
        a result of the death of the Executive; or (4) as a result of the retirement
        of
        the Executive or other voluntary termination of employment by the Executive
        for
        any reason other than Good Reason. 

       

      Anything
        to the contrary in this Agreement notwithstanding, if a Change in Control
        occurs
        and if Executive's employment with the Company was terminated either by the
        Company without Cause or by Executive for Good Reason, within six (6) months
        prior to the effective date of the Change of Control, and if it is reasonably
        demonstrated by Executive that such termination of employment (a) was at
        the
        request of a third party who has taken steps reasonably calculated to effect
        a
        Change of Control or (b) otherwise arose in connection with or anticipation
        of a
        Change of Control, then for all purposes of this Agreement, such termination
        shall constitute a "Termination Upon Change of Control."

       

      5.
         EXCLUSIVE
        REMEDY 

       

      5.1
        No
        Other Benefits Payable.
        The
        Executive shall be entitled to no other termination, severance or change
        of
        control compensation, benefits, or other payments from the Company as a result
        of any Termination Upon a Change of Control with respect to which the payments
        and/or benefits described in Section 2 have been provided to the Executive,
        except as expressly set forth in this Agreement. 

       

      5.2
        No
        Limitation of Regular Benefit Plans.
        Except
        as provided in Section 5.4 below, this Agreement is not intended to and shall
        not affect, limit or terminate any plans, programs or arrangements of the
        Company that are regularly made available to a significant number of employees
        or officers of the Company, including, without limitation, the Company’s stock
        option plans. 

       

      5.3
        Release
        of Claims.
        Notwithstanding anything in this Agreement to the contrary, the Executive
        shall
        not be entitled to receive the severance benefits described in Section 2.2
        of
        this Agreement or the stipend described in Section 2.4 of this Agreement
        unless
        (a) the Executive executes and delivers to the Company a general release
        of
        claims substantially in a form provided to the Executive by the Company prior
        to
        any Change of Control (the "General Release") and (b) the Executive does
        not
        revoke the General Release during the period of time (if any) specified in
        the
        General Release during which the Executive may revoke it ("Revocation Period").
        If the Executive is at least age 40 at the time he executes the General Release,
        the General Release will provide for a Revocation Period of at least seven
        (7)
        days (or such longer period required by applicable law for the General Release
        to be effective). If the General Release does not provide for a Revocation
        Period, then the Revocation Period shall be deemed to have expired on the
        date
        the Executive executes the General Release. The General Release shall not
        require the Executive to release any rights the Executive may have to be
        indemnified by the Company or that are otherwise provided under this Agreement.
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      5.4
        Noncumulation
        of Benefits.
        The
        Executive may not cumulate cash severance payments, stock option vesting
        and
        exercisability and other equity grant, based on the Executive ceasing to
        be an
        employee of the Company, under this Agreement, any other written agreement
        with
        the Company and/or another plan or policy of the Company. 

       

      6.
         NON-SOLICITATION 

       

      For
        a
        period of twelve (12) months after the Executive’s Termination Upon Change of
        Control, the Executive will not solicit the services or business of any employee
        or consultant of the Company, which, if accepted, would result in the
        discontinuance of that person’s or entity’s relationship with or to the Company,
        without the written consent of the Company. 

       

      7.
         ARBITRATION 

       

      7.1
        Disputes
        Subject to Arbitration.
        To the
        extent permitted by law, any claim, dispute or controversy arising out of
        this
        Agreement (other than claims relating to misuse or misappropriation of the
        intellectual property of the Company), the interpretation, validity or
        enforceability of this Agreement or the alleged breach hereof shall be submitted
        by the parties to binding arbitration by a sole arbitrator under the rules
        of
        the American Arbitration Association; provided, however, that (a) the arbitrator
        shall have no authority to make any ruling or judgment that would confer
        any
        rights with respect to the trade secrets, confidential and proprietary
        information or other intellectual property of the Company upon the Executive
        or
        any third party; and (b) this arbitration provision shall not preclude the
        Company from seeking legal and equitable relief from any court having
        jurisdiction with respect to any disputes or claims relating to or arising
        out
        of the misuse or misappropriation of the Company’s intellectual property.
        Judgment may be entered on the award of the arbitrator in any court having
        jurisdiction. 

       

      7.2
        Costs
        of Arbitration.
        All
        costs of arbitration, including reasonable attorneys fees of the Executive,
        will
        be borne by the Company, except that, if the Executive initiates arbitration
        and
        the arbitrator finds the Executive’s claims to be frivolous, the Executive shall
        be responsible for his own costs and attorneys fees. 

       

      7.3
        Site
        of Arbitration.
        The
        site of the arbitration proceeding shall be in Indianapolis, Indiana.

       

      8.
         NOTICES 

       

      For
        purposes of this Agreement, notices and all other communications provided
        for in
        the Agreement shall be in writing and shall be deemed to have been duly given
        when delivered or five (5) business days after being mailed, return receipt
        requested, as follows: 

       

      If
        to the
        Company: Interactive
        Intelligence, Inc.

      7601
        Interactive Way

      Indianapolis,
        Indiana 46278

      Attention:
        Chief Executive Officer

       

      and,
        if
        to the Executive, at the address indicated below. Either party may provide
        the
        other with written notices of change of such party’s address, which shall be
        effective upon receipt by the other party. 

       

      9. MISCELLANEOUS
        PROVISIONS 

       

      9.1
        Heirs
        and Representatives of the Executive; Successors and Assigns of the
        Company.
        This
        Agreement shall be binding upon and shall inure to the benefit of and be
        enforceable by the Executive’s personal and legal representatives, executors,
        administrators, successors, heirs, distributees, devises and legatees. This
        Agreement shall be binding upon and inure to the benefit of and be enforceable
        by the successors and assigns of the Company. The Company shall require any
        Successor, by agreement in form and substance satisfactory to Executive,
        to
        expressly assume and agree to perform this Agreement in the same manner and
        to
        the same extent that the Company would be required to perform it if no
        succession had taken place.

       

      9.2
        Amendment
        and Waiver.
        No
        provision of this Agreement shall be modified, amended, waived or discharged
        unless the modification, amendment, waiver or discharge is agreed to in writing,
        specifying such modification, amendment, waiver or discharge, and signed
        by the
        Executive and by an authorized officer of the Company (other than the
        Executive). No waiver by either party of any breach of, or of compliance
        with,
        any condition or provision of this Agreement by the other party shall be
        considered a waiver of any other condition or provision or of the same condition
        or provision at another time. 

       

      9.3
        Withholding
        Taxes.
        All
        payments made under this Agreement shall be subject to reduction to reflect
        all
        federal, state, local and other taxes required to be withheld by applicable
        law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      9.4
        Severability.
        The
        invalidity or unenforceability of any provision or provisions of this Agreement
        shall not affect the validity or enforceability of any other provision hereof,
        which shall remain in full force and effect. 

       

      9.5
        Choice
        of Law.
        The
        validity, interpretation, construction and performance of this Agreement
        shall
        be governed by the laws of the State of Indiana, without regard to where
        the
        Executive has his residence or principal office or where he performs his
        duties
        hereunder. 

       

      9.6
        No
        Duty to Mitigate.
        The
        Executive is not required to seek alternative employment following termination,
        and payments called for under this Agreement will not be reduced by earnings
        from any other source, except as expressly provided herein. 

       

      9.7
        Employment
        Agreement.
        The
        Employment Agreement, dated as of {Blank}, by and between Executive and the
        Company (the "Employment Agreement") shall continue in full force and effect.
        To
        the extent there is a conflict between any of the terms of this Agreement
        and
        any of the terms of the Employment Agreement, the terms of this Agreement
        shall
        control. Without limitation of the foregoing, in the event Executive receives
        payments hereunder, he shall not be entitled to the payment referenced in
        Section 5(b) of the Employment Agreement. This Agreement and the Employment
        Agreement represent the entire agreement and understanding between the parties
        as to the subject matter herein (whether oral or written and whether express
        or
        implied). 

       

      9.8
        Code
        Section 409A Standards.
        To the
        extent that this Agreement is subject to the standards for nonqualified deferred
        compensation plans established by Code Section 409A (the "Section 409A
        Standards"), it will be effected, interpreted, and applied in a manner
        consistent with the Section 409A Standards. To the extent that any terms
        of this
        Agreement would subject the Executive to gross income inclusion, interest,
        or
        additional tax pursuant to Code Section 409A, those terms are to that extent
        superseded by the applicable Section 409A Standards.

       

      IN
        WITNESS
        WHEREOF,
        each of
        the parties has executed this Agreement, in the case of the Company, by its
        duly
        authorized officer, as of the day and year first above written.

       

      Executive:

      

                                     
        

      {Executive
        name}

      {address}

      

      Interactive
        Intelligence, Inc.

      

      

      /s/
        Donald E. Brown

      Donald
        E.
        Brown

      Chief
        Executive OfficerDun Glen Lease

Exhibit 10.1

MINING LEASE WITH OPTION TO PURCHASE

This Agreement, effective as of the 1st day of March, 2006, is between Scoonover Exploration LLC, (“Owner”, whether one or more), whose address is Scoonover Exploration LLC, c/o E.L. Hunsaker III – Managing Member, P.O. Box 2021, Elko, Nevada 89803, and HuntMountain Resources (“HuntMountain”), whose address is HuntMountain Resources, c/o Tim Hunt - President, 1611 N. Molter Road #201, Liberty Lake, WA 99019.

Owner represents that he is the owner of and is in possession of certain unpatented lode mining claims located in: Sections 1, 2, 10, 11, 12, 14, 15, 22, and 23; Township 33 North, Range 36 East, Pershing County, Nevada (the “Property” or the “Dun Glen Project”), more particularly described in Exhibit A attached to this Agreement and incorporated by reference in this Agreement.

HuntMountain desires to obtain and Owner is willing to grant a mining lease of the Property, together with an exclusive option to purchase the Property.

NOW THEREFORE, in consideration of an advance royalty payment in the amount of Five Thousand Dollars ($5,000.00) previously paid to Owner, the receipt and sufficiency of which are acknowledged by Owner, and further in consideration of the mutual covenants and conditions contained in this Agreement, the parties agree as follows:

Lease.  Owner leases the Property to HuntMountain, together with all appurtenances and water rights incident to the Property and all improvements and personal property on the Property.

Additional Property.  (a)  Owner represents that he has no interest in any mining property, fee lands, or water rights (except the Property) within one mile from the outside property boundary of the Dun Glen Project shown in Exhibit C attached to this Agreement and incorporated by reference in this Agreement.  If Owner has any such interest it shall, at HuntMountain’s option, be deemed a part of the Property for the purposes of this Agreement.

(b)  If during the term of this Agreement, Owner locates or otherwise acquires an interest in any mining property, fee lands, or water rights within the area described in the foregoing subparagraph (a), the interest shall, at HuntMountain’s option, be deemed a part of the Property for the purposes of this Agreement.  If HuntMountain acquires any such interest, it shall be deemed a part of the Property for the purposes of this Agreement.

(c)  Owner shall use his best efforts to enter into a lease/option agreement for the claims owned by Heckman and Painter as set forth in Exhibit B attached to this Agreement and incorporated by reference in this Agreement. Upon entrance into a lease/option agreement to acquire the claims owned by Heckman and Painter shown in Exhibit B, and for consideration of $1.00, Owner will assign the agreement to HuntMountain Resources.  HuntMountain Resources will assume the lease/option agreement and make all payments and obligations referenced therein.

Page 1 of 20

Term.  (a)  The initial term of this Agreement shall be ten (10) years from the date of this Agreement, unless sooner surrendered or otherwise terminated, or until the earlier exercise of the option granted by the paragraph entitled “Option.”

(b)  HuntMountain may extend the initial term of this Agreement for an additional period of ten (10) years by giving Owner notice of the extension not less than thirty (30) days prior to the expiration of the initial term thereof. 

Exclusive Possession.  HuntMountain shall have the exclusive possession of the Property during the term of this Agreement.

Right of Ingress and Egress. HuntMountain shall have unrestricted rights ingress and egress to, across and upon the property.

Title.  (a)  Owner warrants that he is in possession of the Property, that he has the right to enter into this Agreement, that he knows of no other person asserting any interest in the Property or the ground covered thereby, and that the Property is free from all liens and encumbrances, except liens for property taxes not yet due and payable. Owner further warrants to HuntMountain the quiet enjoyment of the Property and the right to explore, develop, and mine the same.

(b)  Owner warrants that the unpatented mining claims included in the Property have been properly located, and that for each assessment year assessment work has been performed (or other steps taken in accordance with law) for the benefit of the claims. Owner warrants and will defend title to the Property and the ground covered thereby against all persons whomsoever.

(c)  Owner shall provide HuntMountain with recording data with respect to deeds, easements, or other documents which bear upon Owner’s title to the Property, and shall provide HuntMountain with copies of all such documents, together with all title opinions, in Owner’s possession or control. Owner shall, upon HuntMountain’s request record any such document in Owner’s possession or control which has not been recorded. Owner shall deliver to HuntMountain all abstracts in Owner’s possession or control. Upon the termination of this Agreement HuntMountain shall return all such abstracts to Owner.

(d)  At HuntMountain’s request, Owner shall take all action necessary (including judicial proceedings) to remove any cloud from or cure any defect in his title to the Property. If Owner fails or refuses to take any such action, HuntMountain may take such action in Owner’s name. Owner shall cooperate with HuntMountain in any such action taken. HuntMountain may recover from Owner or from any payments thereafter to become due to Owner under this Agreement all costs and expenses (including attorney’s fees) incurred by HuntMountain in any such action.

(e)  If the United States or any third person attacks the validity of any mining claim included in the Property for any reason except HuntMountain’s failure to comply with its obligation to perform assessment work or to record and file evidence thereof pursuant to this Agreement, HuntMountain shall have no obligation to defend the validity of the claim.

Page 2 of 20

(f)  If Owner owns a lesser interest in any part of the Property than the entirety thereof (or such other interest as may be set forth in Exhibit A), then all royalties payable under this Agreement with respect to that part of the Property shall be reduced proportionally and the purchase price payable under this Agreement shall be reduced proportionally (pro-rata on an acreage basis) with respect to that part of the Property.

Lesser Interest.  (a)  If Owner’s title fails as to any part of the Property, no royalty shall be payable with respect to the part of the Property as to which title has failed and the purchase price payable under this Agreement shall be reduced proportionally (pro-rata on an acreage basis) with respect to that part of the Property.

(b)  If Owner owns a lesser interest in any part of the Property than the entirety thereof (or such other interest as may be set forth in Exhibit A), then all royalties payable under this Agreement with respect to that part of the Property shall be reduced proportionally and the purchase price payable under this Agreement shall be reduced proportionally (pro-rata on an acreage basis) with respect to that part of the Property.

(c)  Subject to the provisions of the foregoing subparagraphs (a) and (b), if any part of the Property is subject to any royalties or other payments other than those specifically reserved to Owner in this Agreement, such royalties or other payments shall be deducted from any amounts payable to Owner under this Agreement.

Undivided Interests.  If the interest claimed by Owner in any part of the lands described in Exhibit A is less than 100%, the interest claimed by Owner is set forth in Exhibit A. Any representation or warranty of title made by Owner shall apply only to the interest set forth in Exhibit A. The royalty provided for in the paragraph entitled “Royalty” shall be reduced so as to be proportional to the interest set forth in Exhibit A with respect to each part of the Property. If Owner owns or hereafter acquires an interest in any part of the lands described in Exhibit A greater than that set forth in Exhibit A, such interest shall be deemed a part of the Property, Exhibit A shall be deemed amended to include such interest, and the royalty payable under this Agreement with respect to that portion of the Property shall be increased proportionally.

Royalty.  (a)  HuntMountain shall pay an advance minimum royalty to Owner on the dates and in the amounts as follows:

$15,000 upon the execution of this Agreement

$22,500 upon the first anniversary of this Agreement 

$25,000 upon the second anniversary of this Agreement

$27,500 upon the third anniversary of this Agreement

$30,000 upon the fourth anniversary of this Agreement

$32,500 upon the fifth anniversary (and each anniversary thereafter) of this

               Agreement

These advance minimum royalty payments shall be in lieu of any obligation on the part of HuntMountain, express or implied, to explore, develop, mine, or perform any work on or in connection with the Property, except as provided in the paragraph entitled and “Assessment Work”.

Page 3 of 20

(b)  Subject to the provisions of the paragraphs entitled “Undivided Interests” and “Lesser Interest”, HuntMountain shall pay to Owner a royalty of three percent 3 % of the Net Smelter Returns from all ores, minerals, or other products removed from the Property and sold or processed by HuntMountain. There shall be credited against the production royalty payments provided for in this subparagraph (b) all advance minimum royalties previously paid pursuant to the foregoing subparagraph (a).

(c)

At any time during the term of this Agreement HuntMountain shall have the right to purchase up to two (2) percentage points of the Net Smelter Returns royalty for one million Dollars ($1,000,000.00) per percentage point. There shall be credited against the royalty production purchase price provided for in this subparagraph (c) all advance minimum and Net Smelter Returns royalties previously paid pursuant to the foregoing subparagraphs (a) and (b).

(d)

 

“Net Smelter Returns” means-- 

(i)  in the case of ores, minerals, or other products which are sold by HuntMountain in the crude state, the amount received by HuntMountain from the purchaser of the ores, minerals, or other products, less Allowable Deductions,

(ii)  in the case of ores, minerals, or other products which are processed by or for the account of HuntMountain to produce concentrates or other saleable intermediate products which are sold by HuntMountain, the amount received by HuntMountain from the purchaser of the concentrates or other saleable intermediate products, less Allowable Deductions, 

(iii)  in the case of ores, minerals, or other products which are processed by or for the account of HuntMountain to produce concentrates or other saleable intermediate products which are smelted or otherwise further processed by or for the account of HuntMountain, an amount equal to the market value of the concentrates or other saleable intermediate products f.o.b. the plant producing the concentrates or other saleable intermediate products (which amount shall be deemed to have been received by HuntMountain), less Allowable Deductions,

(iv)  in all other cases, the amount received by HuntMountain from the purchaser of the ores, minerals, or other products (or, if such ores, minerals, or other products are deemed to be sold, an amount equal to the market value thereof f.o.b. the plant producing the same (which amount shall be deemed to have been received by HuntMountain)), less Allowable Deductions.

(e)

“Allowable Deductions” means, to the extent borne or to be borne by HuntMountain:

(i)  sales, severance, and other similar taxes,

(ii)  charges for and taxes on transportation from the mine or, if the ores are processed, the plant producing the concentrates or other saleable products, to the place of sale,

Page 4 of 20

(iii)  insurance and security costs and charges,

(iv)  purchaser’s, smelting, refining, and other treatment charges or costs,

(v)  representation, assaying, and umpire costs and fees, and

(vi)  marketing costs and commissions.

If ores, minerals, or other products are deemed to have been sold, Allowable Deductions shall include amounts representing the items enumerated above to the extent that they would have been borne by HuntMountain had the ores, minerals, or other products actually been sold.

Stockpiling.  (a)  HuntMountain may stockpile any ores, minerals, or other products produced from the Property at such place or places as HuntMountain may elect, either upon the Property or upon other property.

(b)  If HuntMountain stockpiles or holds in inventory any ores, minerals, or other products upon other property for a period longer than six (6) months, such ores, minerals, or other products shall be deemed to have been sold, and HuntMountain shall pay to Owner the royalty determined as provided in the paragraph entitled “Royalty”.

Commingling.  HuntMountain may commingle ores, minerals, or other products from the Property (“Subject Ore”) with ores, minerals or other products from other property (“Other Ore”).  Before commingling, HuntMountain shall weigh and sample the Subject Ore and Other Ore in accordance with sound mining and metallurgical practice for moisture and metal content and assay the samples to determine metal content.  HuntMountain shall keep records showing weights or volumes, moisture, percent metal content, and gross metal content of the Subject Ore and Other Ore.  Royalties shall be allocated between Subject Ore and Other Ore on the basis of gross metal content, with due regard being given to the difference, if any, between the royalty rate on the Subject Ore and the royalty rate on Other Ore.

Payment.  (a)  HuntMountain shall make all payments due Owner under this Agreement by check which shall be made payable to all owners jointly and shall be transmitted to Owner as provided in the paragraph entitled “Notices”.

(b)  All royalty payments shall be made on or before the 25th day of the calendar month following the calendar quarter in which payment is received or deemed to have been received for such ores, minerals, or other products.

(c)  Royalty payments shall be accompanied by a statement indicating the amount of ores, minerals, or other products sold or processed and the computation of the royalty being paid. The statement shall be conclusively presumed true and correct after the expiration of ninety (90) days after the date furnished, unless within the ninety (90) day period Owner takes written exception, specifying with particularity the items excepted to and the ground for each exception. Owner shall be entitled to an independent audit of the matters covered by the statement, at Owner’s expense, provided that the audit is conducted by an accounting firm of recognized 

Page 5 of 20

standing, at least one of whose members is a member of the American Institute of certified Public Accountants.

(d)  If at any time during the term of this Agreement it appears that one or more third parties may have a claim of ownership in the Property, the minerals lying in or under the Property, or royalties or other payments with respect to the Property, HuntMountain may withhold from any payments which would otherwise be due to Owner under the terms of this Agreement an amount sufficient to satisfy the claims.  HuntMountain shall deposit the amount withheld in escrow, giving notice of the deposit to Owner, the amount to remain in escrow until the controversy is resolved by decision of a court or arbitrators, or otherwise. Owner shall pay when due and before delinquent all taxes required by this Agreement to be paid by Owner and all mortgage and other payments required to preserve Owner’s interest in the Property. Owner shall furnish HuntMountain with receipts or other evidence of such payments. If at any time during the term of this Agreement it appears that any one or more third parties may have a claim against the Property by reason of any tax, mortgage, or other lien, HuntMountain may pay any past due payments and shall be subrogated to all rights of the holder against Owner. If HuntMountain makes any payments to one or more third parties as a result of any claim of ownership, tax, mortgage, or lien, either by way of contract, settlement, compromise, pursuant to final judgment of any court of record, or otherwise, HuntMountain may recover from Owner or from payments thereafter to become due to Owner under this Agreement the amount of any payment and all costs and expenses (including attorneys’ fees) incurred by HuntMountain in connection with the claim of ownership, tax, mortgage, or lien.

Operations.  (a)  During the term of this Agreement, HuntMountain shall have free and unrestricted access to the Property, and shall have the right (i) to explore and develop the property.   After exercising the option to purchase, HuntMountain shall have the right to mine the Property, and to extract, remove, and sell or otherwise dispose of for its own account any and all ores, minerals, or other products, (ii) to remove ores, air, water, waste, and materials from the Property or from other property by means of underground or surface operations on or in the Property or on or in other property, (iii) to deposit ores, water, waste, tailings, and materials from the Property or other property on or in the Property, and to use any part of the Property for waste dumps and tailings disposal areas, (iv) to conduct on or in the Property general mining, treatment, processing, and related operations respecting the Property and other property, and to use an¥ part of the Property for any purposes incident to such operations, and (v) to construct, use, and maintain on the Property such roads, improvements, structures, equipment, personal property, and fixtures as may be necessary or convenient for the conduct of HuntMountain’s operations.

(b)  HuntMountain shall conduct all operations on the Property in a good and workmanlike manner and in accordance with accepted mining practice. All decisions with respect to exploration, development, and mining of the Property and the selling of ores, minerals, concentrates, or other products from the Property, including all decisions regarding the commencement, suspension, resumption, or termination of any operations, shall be made by HuntMountain in its sole discretion. HuntMountain may sell ores, minerals, or other products, and may stockpile ores, minerals, or other products for any length of time before selling the same. There are no covenants or agreements regarding these matters other than those expressly set forth in this Agreement.

Page 6 of 20

(c)  HuntMountain may use any mining method, whether or not the method is in general use at the time of the execution of this Agreement, including without limitation, underground mining (including methods, such as block caving, which result in the disturbance or subsidence of the surface), surface mining (including strip mining, open pit mining, and dredging), and in situ mining (including solution mining, leaching, gasification, and liquification).

(d)  HuntMountain shall comply with all laws and regulations governing its operations on the Property, including all laws and regulations regarding reclamation of the Property. If this Agreement is inconsistent with or contrary to any law or regulation, the law or regulation shall control and this Agreement shall be deemed to be modified accordingly.

Easements.  If requested by HuntMountain from time to time during the term of this Agreement, Owner shall execute, acknowledge, and deliver to HuntMountain one or more instruments granting to HuntMountain, without cost to HuntMountain, easements upon, over, or through the Property or upon, over, or through other property owned by Owner, for the construction, maintenance, use, and removal of pipe lines, telephone lines, electrical power or transmission lines, roads, railroads, tramways, flumes, ditches, shafts, drifts, tunnels, and other facilities necessary or convenient for HuntMountain’s operations on or in the Property or on or in other Property.

No Implied Covenants.  No covenants or conditions relating to the exploration, development, mining, or related operations on or in connection with the Property, or the timing thereof, other than those expressly provided in this Agreement, shall be implied. After commencing any exploration, development, mining, or related operations on or in connection with the Property, HuntMountain may in its sole discretion curtail or cease such operations so long as it continues to make any payments due Owner under this Agreement.

Protection from Liens and Damages.  HuntMountain shall keep the Property free of liens for labor performed or materials or merchandise furnished for use on the Property under this Agreement, and shall hold Owner harmless from all costs, loss, or damage which may result from any work or operations of HuntMountain or its possession or occupancy of the Property. Owner shall be responsible for and shall hold HuntMountain harmless for any preexisting environmental or reclamation liabilities. HuntMountain shall be responsible for and shall hold Owner harmless for any environmental or reclamation liabilities incurred during the term of this Agreement.

Taxes.  Owner shall pay all taxes levied against the Property prior to the date of this Agreement. HuntMountain shall pay all taxes levied against the Property during the term of this Agreement. In the case of taxes for the tax year in which this Agreement commences, and for the tax year in which this Agreement ends, there shall be an apportionment, HuntMountain to bear the proportion of taxes upon the Property applicable to the part of the tax year included under this Agreement, and Owner to bear the balance of the taxes.  HuntMountain shall pay all taxes levied during the term of this Agreement against all improvements, structures, equipment, personal property, and fixtures placed upon the Property by HuntMountain and all taxes levied against HuntMountain as an employer of labor.  All taxes shall be paid when due and before delinquent, but HuntMountain shall be under no obligation to pay any tax so long as the tax is 

Page 7 of 20

being contested in good faith and by appropriate legal proceedings and the nonpayment thereof does not adversely affect Owner or any right, title, or interest of Owner in or to the Property.

Insurance.  HuntMountain shall carry at all times during the term of this Agreement worker’s compensation and other insurance required by state laws and mining regulations, or HuntMountain may self-insure as to such matters if it qualifies as a self-insurer under the appropriate laws and regulations.

Inspection.  (a)  Owner or Owner’s authorized representative may enter on the Property at any reasonable time for the purpose of inspection, but shall enter at Owner’s own risk and so as not to hinder unreasonably the operations of HuntMountain. Owner shall indemnify and hold HuntMountain harmless from any costs, loss, or damage by reason of injury to or the presence of Owner or Owner’s representatives on the Property.

(b)  Owner or Owner’s authorized representative may, at any reasonable time, inspect any records pertinent and necessary for the purpose of substantiating the compliance of HuntMountain with the provisions of this Agreement.

Data.  (a)  Upon the execution of this Agreement, Owner shall deliver to HuntMountain all drill core, all geological, geophysical, and engineering data and maps, logs of drill holes, results of assaying and sampling, and similar data concerning the Property (or copies thereof) which are in Owner’s possession or control.

(b)  Upon the surrender or other termination of this Agreement (except by exercise of the option contained in the paragraph entitled “Option”), HuntMountain shall, within sixty (60) days after termination, (i) return to Owner all drill core and original data delivered by Owner to HuntMountain which are then in HuntMountain’s possession or control, and (ii) make available for inspection by Owner all factual geological and geophysical data and maps (not including interpretive data), logs of drill holes, and results of assaying and sampling pertaining to the Property which HuntMountain has obtained as a result of its exploration work under this Agreement and which are then in HuntMountain’s possession or control. Upon Owner’s request made within sixty (60) days after termination of this Agreement (except by exercise of the option contained in the paragraph entitled “Option”), HuntMountain shall, at Owner’s expense, provide Owner with the drill core designated by Owner and with copies of any portion of the geological and geophysical data and maps (not including interpretive data), logs of drill holes, and results of assaying and sampling designated by Owner.

(c)  HuntMountain makes no representation or warranty as to the accuracy or completeness of any such data or information, and shall not be liable on account of any use by Owner or any other person of any such data or information. HuntMountain shall not be liable for the loss or destruction of any drill core.

Confidentiality.  All information obtained by Owner or Owner’s authorized representatives from HuntMountain arising out of HuntMountain’s activities on the Property pursuant to this Agreement shall be kept strictly confidential by Owner and shall not be released to any third person except upon the prior written consent of HuntMountain.

Page 8 of 20

Option.  (a) Owner grants to HuntMountain during the term of this Agreement the sole and exclusive option to purchase the Property, together with all appurtenances and water rights incident thereto and all improvements and personal property thereon, free and clear of all liens and encumbrances, for a total purchase price of Five Thousand Dollars ($5,000.00). The delivery to Scoonover of a copy of a mine plan of operations approved by the lead government agency having responsibility for such approval or a final feasibility study approved by the HuntMountain Resources management shall be a condition precedent to the exercise of the option.  The Quit Claim Deed shall provide for the reservation of the Royalty by Owner and HuntMountain Resources’ covenant and obligations to pay the Royalty and Minimum Royalty Payments and HuntMountain Resources’ other obligations which shall survive Owner’s execution and delivery of the Deed.

(b) Owner grants to HuntMountain the exclusive right to purchase the Property, subject to the Royalty reserved by Owner and subject to HuntMountain’s obligations under the conveyance executed and delivered by Owner on the closing of the Option.  HuntMountain may exercise the Option at any time after HuntMountain commits to commence development of a mine or mining on the Property or completes a positive feasibility study for development or mining on the Property.  The Purchase Price for the Property shall be Five Thousand Dollars ($5,000.00).

(c) Notice of Election.  If HuntMountain elects to exercise the Option, HuntMountain shall deliver written notice to Owner.  On Owner’s receipt of HuntMountain’s notice of exercise of the Option, the parties shall make diligent efforts to close the conveyance of the Property, as applicable, within thirty (30) days after Owner’s delivery of the notice.

(d) Real Property Transfer Taxes.  HuntMountain shall pay the real property transfer taxes, if any, the costs of escrow and all recording costs incurred in closing of the Option.  The parties acknowledge that there are presently no real property transfer taxes assessed on the transfer of title to unpatented mining claims, including the unpatented mining claims which constitute the Property.

(e) Proration of Taxes.  Payment of any and all state and local real property and personal property taxes levied on the Property and not otherwise provided for in this Agreement shall be prorated between the parties as of the closing of any transaction on the basis of a thirty (30) day month.  The parties acknowledge that there are presently no real property taxes assessed against unpatented mining claims, including the unpatented mining claims which constitute the Property.

(f) Payment on Closing.  On closing of the Option, HuntMountain shall pay the Purchase Price to Owner in cash or by wire transfer.

(g) Conveyance on Closing.  If HuntMountain exercises and closes the Option, Owner shall execute and deliver to HuntMountain a conveyance of the Property which contains the reservation of the Royalty in this Agreement.  On the closing of the Option, the parties shall complete the conveyance by inserting the description of all of the unpatented mining claims which comprise the Property on closing of the Option.  The execution, delivery and recording of the conveyance shall not constitute a merger of HuntMountain’s obligations under this Agreement which shall survive the closing of the Option.  Owner and HuntMountain shall 

Page 9 of 20

execute and deliver such other written assurances and instruments as are reasonably necessary for the purpose of closing the purchase of the Property.

(h) Effect of Closing.  On closing of the Option, HuntMountain shall own the Property, subject to the Royalty reserved by Owner and HuntMountain’s obligations which survive exercise of the Option and the obligations stated in the conveyance of the Property.

Termination and Surrender.  (a)  If HuntMountain fails to comply with the provisions of this Agreement, including the paragraph entitled “Royalty”, and if HuntMountain does not initiate and diligently pursue steps to correct the default within thirty (30) days after notice has been given to it by Owner specifying with particularity the nature of the default, then upon the expiration of the thirty (30) day period, all rights, liabilities, and obligations of HuntMountain under this Agreement shall terminate, except that (i) HuntMountain shall have the rights provided in the paragraphs entitled “Removal of Property” and “Access”, and (ii) HuntMountain shall have those liabilities existing on the date of termination, the obligations provided in the paragraph entitled “Data”, and liability for payments under the paragraph entitled “Royalty” then due or, in the case of production royalties, then accrued. Any default claimed with respect to the payment of money may be cured by the deposit in escrow the amount in controversy (not including interest or claimed consequential, special, exemplary, or punitive damages) and giving of notice of the deposit to Owner, the amount to remain in escrow until the controversy is resolved by decision of a court or arbitrators, or otherwise.  If HuntMountain by notice to Owner disputes the existence of a default, then this Agreement shall not terminate unless HuntMountain does not initiate and diligently pursue steps to correct the default within thirty (30) days after the existence of a default has been determined by decision of a court or arbitrators, or otherwise.

(b)  Subject to the right of Owner to terminate this Agreement as provided in the foregoing subparagraph (a), controversy between the parties to this Agreement shall not interrupt operations under this Agreement.  In the event of any controversy, HuntMountain may continue operations under this Agreement and shall make the payments provided for in this Agreement notwithstanding the existence of the controversy.  Upon the resolution of the controversy, such payments or restitutions shall be made as required by the terms of the decision of the court or arbitrators, or otherwise.

(c)  Upon sixty (60) days written notice, HuntMountain may at any time terminate this Agreement as to all or any part of the Property by delivering to Owner or by filing for record in the appropriate office (with a copy to Owner) a recordable Surrender of this Agreement or a Partial Surrender describing that portion of the Property as to which this Agreement is surrendered. Upon mailing the Surrender or Partial Surrender to Owner or to the appropriate office, all rights, liabilities, and obligations of HuntMountain under this Agreement with respect to the portion of the Property as to which this Agreement is terminated shall terminate, except that (i) HuntMountain shall have the rights provided in the paragraphs entitled “Removal of Property” and “Access”, and (ii) HuntMountain shall have those liabilities existing on the date of termination, the obligations provided in the paragraph entitled “Data”, and liability for payments under the paragraph entitled “Royalty” then due or, in the case of production royalties, then accrued.

Page 10 of 20

Removal of Property.  For a period of six (6) months after the termination of this Agreement HuntMountain shall have the right (but not the obligation) to remove from the Property all broken or stockpiled ore, minerals, or other products (subject to the payment of royalties provided for in this Agreement), dumps, tailings, and residue, and all structures, equipment, personal property, and fixtures owned by HuntMountain or erected or placed on or in the Property by HuntMountain, except mine timbers in place. HuntMountain may keep one or more watchmen on the Property during the above-mentioned period.

Access.  For as long as necessary after termination of this Agreement, HuntMountain shall have the right of access to and across the Property for reclamation purposes.

Amendments, Relocations, and Patents.  During the term of this Agreement HuntMountain shall have the right (but not the obligation) to amend or relocate any or all of the unpatented mining claims included in the Property, to locate placer claims on ground theretofore covered by lode claims and vice versa, to locate mill sites on ground theretofore covered by mining claims and vice versa, and to locate any fractions existing on the date of this Agreement or resulting from the location, amendment, or relocation of mining claims or mill sites.  All such locations, amendments, or relocations shall be made in the name of Owner.  At the request of HuntMountain, Owner shall apply for patent for any or all of the unpatented mining claims and mill sites.  All expenses authorized by HuntMountain in connection with locating, amending, or relocating mining claims or mill sites or prosecuting patent proceedings shall be borne by HuntMountain. The rights of HuntMountain under this Agreement shall extend to all such locations, amended locations, relocations, and patented mining claims and mill sites. 

Compliance with Federal Land Policy and Management Act.  (a)  Owner warrants that the location notices or location certificates for the unpatented mining claims included in the Property have been timely filed in the proper office of the Bureau of Land Management pursuant to § 314(b) of the Federal Land Policy and Management Act of 1976, 43 U.S.C. § 1744(b).

(b)  Owner warrants that evidence of assessment work or notices of intention to hold for the unpatented mining claims included in the Property have been timely recorded in the proper county (or recording district) office and timely filed in the proper office of the Bureau of Land Management pursuant to § 314(a) of the Federal Land Policy and Management Act of 1976, 43 U.S.C. § 1744(a), for each assessment year for which such recording and filing was required to and including the assessment year ending September 1, 2005.

Assessment Work.  (a)  Owner warrants that the annual assessment work required to hold the Property has been performed for the assessment year ending September 1, 2005.  HuntMountain shall perform the assessment work for the benefit of the Property for the assessment year ending September 1, 2006 and for every year thereafter in which HuntMountain continues this Agreement beyond the 1st day of June of the assessment year. If any court or governmental agency decides that the work performed by HuntMountain does not constitute the kind of work required by federal or state law, HuntMountain shall nevertheless be deemed to have complied with the terms of this Agreement if the work done by HuntMountain is of the kind generally accepted in the mining industry as assessment work under existing law.

Page 11 of 20

(b)  HuntMountain shall be relieved of its obligation to perform assessment work for any period in which assessment work is not required or the assessment work requirement is suspended, and HuntMountain shall have the benefit of subsequent laws enacted which relate to assessment work, including any laws extending the time within which to perform assessment work. For each year in which HuntMountain performs assessment work, it will record in the office where the location notice or location certificate is recorded, and in any other proper office in the county (or recording district) in which the claims are located, and in the proper office of the Bureau of Land Management, an affidavit of assessment work or other document complying with the requirements of state law and the Federal Land Policy and Management Act of 1976 and the regulations implementing and supplementing the Act.

(c)  Owner represents that the Property is one contiguous group of mining claims, and agrees that work on any one or more of the claims will be for the benefit of all of the claims. Some or all of the Property is or may be held by HuntMountain together with one or more other properties in the same general area as a group, and assessment work may be performed on one or more of the claims in the group for the benefit of all of the claims in the group (including the claims which comprise or form a part of the Property) pursuant to a general plan tending to develop all of the claims in the group and to facilitate the extraction of ore therefrom. Assessment work so performed shall be deemed to have been performed on the claims included in the Property.

(d)  Owner represents that no report of geological, geophysical, and geochemical work (30 U.S.C. §§ 28-1 and 28-2) on the Property has been filed for any assessment year.

Federal Mining Claim Maintenance Fees.  If under applicable federal laws and regulations federal annual mining claim maintenance fees are required to be paid for the unpatented mining claims which constitute all or part of the Property, beginning with the annual assessment work period of September 1, 2005, to September 1, 2006, and not less than thirty (30) days before the applicable deadline (except for the assessment year ending on September 1, 2005), HuntMountain shall timely and properly pay the federal annual mining claim maintenance fees, and shall execute and record or file, as applicable, proof of payment of the federal annual mining claim maintenance fees and of Owner's intention to hold the unpatented mining claims which constitute the Property.  HuntMountain shall deliver to Owner proof of HuntMountain’s compliance with this Section not less than ten (10) days before the applicable deadline.  If HuntMountain elects to terminate this Agreement more than two (2) months before the deadline for payment of the federal annual mining claim maintenance fees for the succeeding annual assessment year, HuntMountain shall have no obligation to pay the federal annual mining claim maintenance fees for the Property for the succeeding assessment year.

Change in Federal Mining Law.  If the United States establishes a leasing system or other system of tenure for lands or minerals now subject to location under the mining laws, and if the new system gives Owner an election to acquire rights under the new system in exchange for or in modification of Owner’s existing rights, HuntMountain may make the election in the name of Owner with respect to any or all of the unpatented claims included in the Property. Thereafter, during the term of this Agreement HuntMountain shall pay all royalties, rentals, bonuses, fees, and other amounts required by the new system,. The rights of HuntMountain under this Agreement shall extend to the lease or other rights granted by the new system.

Page 12 of 20

Notices.  All notices and other communications to either party shall be in writing and shall be sufficiently given if (i) delivered in person, (ii) sent by fax or electronic communication, with confirmation sent by registered or certified mail, return receipt requested, or (iii) sent by registered or certified mail, return receipt requested.  All notices shall be effective and shall be deemed delivered (i) if by personal delivery, on the date of delivery, (ii) if by electronic communication, on the date of receipt of the electronic communication, and (iii) if by mail, on the date of mailing. Any notice given by or to E.L. Hunsaker III shall be notice by or to all Owners.  Until a change of address is communicated as indicated above, all notice to Owner shall be address:

Scoonover Exploration LLC

E.L. Hunsaker III – Managing Member

P.O. Box 2021

Elko, Nevada 89803

and all notice to HuntMountain shall be addressed:

HuntMountain Resources

Tim Hunt, President

1611 N. Molter Road #201

Liberty Lake, WA 99019

With a copy to:

Gregory B. Lipsker

Workland & Witherspoon PLLC

601 W. Main Ave., Suite 714

Spokane, WA 99201

Assignment.  (a)  The rights of either party under this Agreement may be assigned in whole or in part, subject to the provisions set forth below.

(b)  No change or division in the ownership of the Property or the payments provided for in this Agreement, however accomplished, shall enlarge the obligations or diminish the rights of HuntMountain. Owner covenants that any change in ownership shall be accomplished in such a manner that HuntMountain shall be required to make payments and to give notices to but one person, firm, or corporation, and upon breach of this covenant, HuntMountain may retain all monies otherwise due to Owner until the breach has been cured. No change or division in ownership shall be binding on HuntMountain until thirty (30) days after Owner has given HuntMountain a certified copy of the recorded instrument evidencing the change or division.

(c)  If HuntMountain assigns an undivided interest in this Agreement, each holder of an undivided interest shall separately pay to Owner the royalties accruing with respect to that holder’s interest in the production from the Property. If HuntMountain assigns the whole of or an undivided interest in this Agreement, liability for breach of any obligation under this Agreement shall rest exclusively upon the holder of this Agreement or of an undivided interest who commits 

Page 13 of 20

the breach. If this Agreement is assigned as to a segregated portion of the Property, default by the holder of that portion shall not affect the rights of holders of any other portion.

(d)  Subject to HuntMountain’s rights under this Agreement, Owner shall have the right to assign, convey, encumber, or sell all or any part of its interest in this Agreement or the Property.  No change in ownership of Owner's interest in the Property shall affect HuntMountain's obligations under this Agreement unless and until Owner delivers and HuntMountain receives copies of the documents which demonstrate the change in ownership of Owner's interest.  Until HuntMountain receives Owner's notice and the documents required to be delivered under this Section, HuntMountain may continue to make all payments under this Agreement as if the transfer of Owner's ownership interest had not occurred.  No division of Owner's ownership as to all or any part of the Property shall enlarge HuntMountain's obligations or diminish HuntMountain's rights under this Agreement.

Inurement.  All covenants, conditions, limitations, and provisions contained in this Agreement apply to and are binding upon the parties to this Agreement, their heirs, representatives, successors, and assigns.

Force Majeure.  (a)  If HuntMountain shall be prevented by Force Majeure from timely performance of any of its obligations under this Agreement (except payment of money to Owner), the failure of performance shall be excused and the period for performance and the term of this Agreement shall be extended for an additional period equal to the duration of the Force Majeure.  Upon the occurrence and upon the termination of any Force Majeure, HuntMountain shall promptly notify Owner.  HuntMountain shall use reasonable diligence to remedy a Force Majeure, but shall not be required against its better judgment to settle any labor dispute or contest the validity of any law or regulation or any action or inaction of civil or military authority.

(b)  “Force Majeure” means any cause beyond HuntMountain’s reasonable control, including law or regulation; action or inaction of civil or military authority; inability to obtain any license, permit, or other authorization that may be required to conduct operations on or in connection with the Property; unusually severe weather; mining casualty; unavoidable mill shutdown; damage to or destruction of mine plant or facility; fire; explosion; flood; insurrection; riot; labor dispute; inability after diligent effort to obtain workmen or material; delay in transportation; acts of God; unavailability of a suitable market for the ores, minerals, or other products from the Property; and excessive cost of mining, milling, processing, or marketing, or insufficient prices available for the ores, minerals, or other products from the Property, which render HuntMountain’s operations uneconomic.

(c)  Force Majeure shall not excuse the failure to perform assessment work unless a deferment of assessment work has been obtained under 30 U.S.C. § 28b et seq., in which case failure to perform assessment work shall be excused only for the period of such deferment.  Force Majeure shall not excuse the failure to record or file any instrument required to be recorded or filed under the Federal Land Policy and Management Act of 1976.

Rule Against Perpetuities.  Any right or option to acquire any interest in real or personal property under this Agreement must be exercised, if at all, so as to vest such interest in 

Page 14 of 20

HuntMountain within twenty-one (21) years after the date of execution of this Agreement by both parties.

Short Form.  Contemporaneously herewith HuntMountain and Owner may have executed and delivered a Short Form of this Agreement. HuntMountain may record the Short Form or this Agreement, or both, as it may elect.

Modification.  No modification, variation, or amendment of this Agreement shall be effective unless it is in writing and is signed by all parties to this Agreement.

Entire Agreement.  This Agreement sets forth the entire agreement of the parties and supersedes all previous and contemporaneous agreements, representations, warranties, and undertakings, written or oral.

Construction.  (a)  The paragraph headings are for convenience only, and shall not be used in the construction of this Agreement. The term “Owner” shall be deemed to be singular or plural, and shall be deemed to be masculine, feminine, or neuter, whenever the construction of this Agreement so requires.

(b)  The invalidity of any provision of this Agreement shall not affect the enforceability of any other provision of this Agreement.

Governing Law.  The formation, interpretation, and performance of this Agreement shall be governed by the internal law (but not the conflicts of law rules) of the State of Washington. Venue to enforce any action arising hereunder shall lie in Spokane County, Washington.

Additional Documents.  Owner shall provide HuntMountain with such additional documents as may be necessary to carry out the purposes of this Agreement. If conditions change by reason of acquisitions, conveyances, assignments, or other matters relating to the title to or description of the Property, Owner and HuntMountain shall execute amendments of this Agreement and the Short Form of this Agreement, and any other documents which may be necessary to reflect such changed conditions.

Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original. If any person named as one of the Owners does not execute this Agreement, it shall nevertheless be binding upon those persons executing it.

Homestead Waiver.  Owner expressly waives and releases all rights, exemptions, and benefits under or by virtue of any homestead, homestead exemption, dower, courtesy, community property, or marital property laws now or hereafter in force in the state in which the Property is located.

Page 15 of 20

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

Scoonover Exploration LLC 

 /s/ E. L. Hunsaker

By: _______________________________

      E.L. Hunsaker III, Managing Member 

       

On this 13th day of March, 2006, before me, the under-signed, a Notary Public in and for the State of Nevada, personally appeared E.L. Hunsaker III to me known to be the Managing Member of Scoonover Exploration LLC, who executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said company, for the uses and purposes therein mentioned, and on oath stated that each was authorized to execute said instrument.  

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.  

/s/ Danielle Gardner

______________________________________________

Notary Public in and for Nevada State

9/23/09

My Commission Expires:  _________________________

HuntMountain Resources

/s/ Tim Hunt

By: ____________________________

 Tim Hunt, President

On this 24th day of February, 2006, before me, the undersigned, a Notary Public in and for the State of Washington, personally appeared Tim Hunt to me known to be the President of HuntMountain Resources, who executed the within and foregoing instrument and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that each was authorized to execute said instrument.  

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.  

/s/ Theron V Rust

______________________________________________

Notary Public in and for Washington State

11/25/07

My Commission Expires:  _________________________

Page 16 of 20

Dun Glen Project

Exhibit A

Scoonover Exploration LLC - HuntMountain Resources Agreement

Those certain unpatented lode mining claims located in:

Sections 1, 2, 10, 11, 12, 14, 15, 22, and 23; Township 33 North, Range 36 East,

Pershing County, Nevada, more particularly described as follows:

				
	Claim Name

	Date Located

	Owner

	BLM Claim Number

	Gus-1

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-2

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-3

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-4

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-5

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-7

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-8

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-9

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-10

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-11

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-12

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-13

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-14

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-15

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-16

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-17

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-18

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-19

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-20

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-21

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-22

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-23

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-24

	February 3, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-106

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-107

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-108

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Gus-109

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-20

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-21

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-22

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-23

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-26

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-27

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-28

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-29

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-30

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-31

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-32

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-33

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-38

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-39

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-40

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-41

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-42

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-43

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

Page 17 of 20

				
	MTR-44

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-45

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-46

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-47

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-50

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-51

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-52

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-53

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	MTR-54

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-3

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-4

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-6

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-7

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-8

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-9

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-10

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-14

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-15

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-16

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-17

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-11

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-12

	January 14, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-13

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-18

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-19

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-20

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-21

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-22

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-23

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-24

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-25

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-26

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-27

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-28

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-29

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	Sierra-30

	February 4, 2006

	Scoonover Exploration LLC

	Not Yet Issued

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

Page 18 of 20

Dun Glen Project

Exhibit B

Scoonover Exploration LLC - HuntMountain Resources Agreement

Those certain unpatented lode mining claims located in:

Sections 1, 2, 11, 12, and 14; Township 33 North, Range 36 East,

Pershing County, Nevada, more particularly described as follows:

				
	Claim Name

	Date Located

	Owner

	BLM Claim Number

	Black Hole #1

	 	Painter

	NMC123920

	Black Hole #2

	 	Painter

	NMC123921

	Monroe #1

	 	Painter

	NMC123922

	Monroe #2

	 	Painter

	NMC123923

	Monroe #3

	 	Painter

	NMC123924

	M.M. 1

	 	Painter

	NMC463692

	M.M. 2

	 	Painter

	NMC463693

	M.M. 8

	 	Painter

	NMC463699

	Nevada 1

	 	Heckman

	NMC123909

	Nevada 2

	 	Heckman

	NMC123910

	Nevada 3

	 	Heckman

	NMC123911

	Nevada 4

	 	Heckman

	NMC123912

	Nevada 5

	 	Heckman

	NMC123913

Page 19 of 20

Page 20 of 20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]