Document:

Exhibit 10.12 License Agreement April 4 2013

Exhibit 10.12

LICENSE AGREEMENT

THIS LICENSE AGREEMENT dated for reference the 4th day of April, 2013.

BETWEEN:

BRANDSEED GROUP, LLC., a Virginia corporation 

(herein called “Licensor”)

AND:

HARBOR ISLAND DEVELOPMENT CORP., a Nevada corporation

(herein called “Licensee”)

WHEREAS:

A.

The Licensor has certain proprietary transactional direct marketing strategies and systems.  This software, along with all associated websites, peripheries, libriaries, modules as well as associated source  code and object code is hereby referred to as the “Software”. 

B.

The Software is designated herein as constituting the Intellectual Property rights concerned by the present license agreement. The know-how that the Licensor has developed concerning the Software is not within the licensed Intellectual Property rights (herein called the “IP Rights”).  

C.

The Licensee wishes to acquire from the Licensor and the Licensor agrees to grant to the Licensee the exclusive right to use the IP Rights. 

D.

The Licensor has agreed to grant the Licensee the exclusive right to use the IP Rights under the terms and conditions as set forth in this License Agreement and produce and distribute the Software on a worldwide basis. 

NOW THEREFORE in consideration of the premises and the respective covenants, agreements representations, warranties and indemnities of the parties herein contained and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged) the parties hereto covenant and agree as follows:

1.

DEFINED TERMS

1.1

For the purposes of this Agreement, unless the context otherwise requires, the following terms will have the respective meanings set out below and grammatical variations of such terms will have corresponding meanings:

(a)

“Business Day” means any day which is not a Saturday, Sunday or statutory holiday in New York;

(b)

“Closing” means the completion of the transactions contemplated in this Licence Agreement;

(c)

“Closing Date” means such date as the Licensor and the Licensee may mutually determine;

(d)

“IP Rights” has the meaning as ascribed in the whereas Clause B above.

1.2

Currency.  Unless otherwise indicated, all dollar amounts in this License Agreement are expressed in United States funds.

1.3

Sections and Headings.  The division of this License Agreement into Articles, sections and subsections and the insertion of headings are for convenience of reference only and will not affect the interpretation of this License Agreement.  Unless otherwise indicated, any reference in this License Agreement to an Article, section, subsection or Schedule refers to the specified Article, section or subsection of or Schedule to this License Agreement.

1.4

Number, Gender and Persons.  In this License Agreement, words importing the singular number only will include the plural and vice versa, words importing gender will include all genders and words importing persons will include individuals, corporations, partnerships, associations, trusts, unincorporated organizations, governmental bodies and other legal or business entities of any kind whatsoever.

1.5

Accounting Principles.  Except as otherwise stated, any reference in this License Agreement to generally accepted accounting principles refers to generally accepted accounting principles that have been established in the United States of America, including those approved from time to time by the American Institute of Certified Public Accountants or any successor body thereto.

1.6

Entire Agreement.  This License Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether written or oral.  There are no conditions, covenants, agreements, representations, warranties or other provisions, express or implied, collateral, statutory or otherwise, relating to the subject matter hereof except as herein provided.

1.7

Time of Essence.  Time will be of the essence of this License Agreement.

1.8

Applicable Law.  This License Agreement will be construed, interpreted and enforced in accordance with, and the respective rights and obligations of the parties will be governed by, the laws of Nevada. All claim demands, disputes, controversies, differences, or misunderstandings between the Parties relating to this Agreement shall be settled by arbitration before one arbitrator to be appointed in accordance with rules governing the American Arbitration Association, such proceeding to be held in Nevada and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. 

1.9

Amendments and Waivers.  No amendment or waiver of any provision of this License Agreement will be binding on either party unless consented to in writing by such party.  No waiver of any provision of this License Agreement will constitute a waiver of any other provision, nor will any waiver constitute a continuing waiver unless otherwise provided.

2.

GRANT OF LICENSE

2.1

The Licensor hereby grants to the Licensee, effective as of the Closing Date and for a period of five (5) years an exclusive worldwide license to use the

Software and IP Rights

 for a consideration of the License Fee defined in Article 5 hereafter (the “License”).

2.2

The License Agreement will take effect immediately upon the execution of this Agreement.

2.3

The Licensee agrees to assist the Licensor in recording this License Agreement with appropriate government authorities where such recording is required by law or regulation or where such recording is permitted or desired by the Licensor.

2.4

The Licensor shall not continue to use the IP Rights for its business and shall not sell or agree to sell all or any portion of the IP Rights, other than as set out in Section 6.

2.5

The Licensor undertakes, for a period of ten years from the signature of the License Agreement, to keep in force the existing trademark registrations in the countries where they were filed, as applicable.

3.

USE OF LICENSE

3.1

The License is exclusive to the Licensee worldwide. 

4.

OWNERSHIP

4.1

Licensee acknowledges and agrees that, as between the parties to this License Agreement and subject to the rights and licenses granted herein, Licensor is, and at all times shall remain, the sole and exclusive owner of all right, title and interest, throughout the world, in and to all IP Rights, and any copies of the IP Rights, whether made on or behalf of Licensor or Licensee.

5.

LICENSE FEE

5.1

The license fee payable by the Licensee to the Licensor for the License shall be 110,000,000 restricted shares of the Licensee’s common stock (the “License Fee”

).

5.2

In addition to License Fee, and provided that Licensee makes all payments due under Section 5.1, Licensee shall be entitled to purchase all rights, title and interest in and to the Software and IP Rights for a lump sum payment of $100,000 at anytime during  which this Agreement is in effect.

6.

RIGHT OF FIRST PURCHASE

6.1

The Licensor shall give the Licensee a first right of purchase for the IP Rights, and the associated technology for so long as this License Agreement is in effect, in the event that: 

(a)

the Licensor, or a majority interest in the Licensor,  is sold, 

(b)

the Licensor intends to sell the IP Rights, and the associated technology or 

(c)

the Licensor effects any:

(i)

merger or consolidation of the Licensor with or into another entity,

  

(ii)

sale of all or substantially all of its assets in one or a series of related transactions, 

(iii)

tender offer or exchange offer (whether by the Licensor or any or another entity) is completed pursuant to which the Licensor’s shareholders are permitted to tender or exchange their shares for other securities, cash or property, 

(iv)

reclassification of 

its

 shares or any compulsory share exchange pursuant to which the Licensor’s shares are effectively converted into or exchanged for other securities, cash or property

, or

(d)

the Licensee or the majority interest in the Licensee is being acquired by a company in which the present shareholders of the Licensee are not part of.

However, clauses (iii) and (iv) above will only be applicable if the available shares pursuant to the tender offer or exchange offer represent more than the majority of the shares of the Licensor.

(collectively, the “ROFP Events”).

6.2

The right of first purchase may be exercised by the Licensee within 30 days following notice of a ROFP Event by notifying the Licensor in writing. The purchase price of the IP Rights and the associated technology shall be the aggregate amount due under Section 5

..

7.

TERMINATION AND EXTENSION

7.1

Except as otherwise provided in Section 2.6, this License Agreement shall terminate automatically at the end of the term specified in Section 2.1.

7.2

The Licence Agreement will be terminated if a bankruptcy proceeding is filed against the Licensee.

8.

INDEMNIFICATION, REMEDIES, SURVIVAL

8.1

For the purposes of this Section 8 terms “Loss” and “Losses” mean any and all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs, and expenses, including without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses, but excluding any indirect, consequential or punitive damages suffered by Licensor or Licensee including damages for lost profits or lost business opportunities.

8.2

Agreement of Licensor to Indemnify

(a)

Licensor will indemnify, defend, and hold harmless, to the full extent of the law, for a period of three years from the termination of the License Agreement, the Licensee and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by the Licensee and its shareholders by reason of, resulting from, based upon or arising out of:

(i)

the breach by Licensor of any representation or warranty of Licensor contained in or made pursuant to this License Agreement, any Licensor document or any certificate or other instrument delivered pursuant to this License Agreement; or

(ii)

the breach or partial breach by Licensor of any covenant or agreement of Licensor made in or pursuant to this License Agreement, any Licensor document or any certificate or other instrument delivered pursuant to this License Agreement.

8.3

Agreement of Licensee to Indemnify

(a)

Licensee will indemnify, defend, and hold harmless, to the full extent of the law, for a period of three years from the termination of this License Agreement, the Licensor from, against, for, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by Licensor by reason of, resulting from, based upon or arising out of:

(i)

the breach by Licensee of any representation or warranty of Licensee contained in or made pursuant to this License Agreement, any Licensee document or any certificate or other instrument delivered pursuant to this License Agreement; or

(ii)

the breach or partial breach by Licensee of any covenant or agreement of Licensee made in or pursuant to this Agreement, any Licensee document or any certificate or other instrument delivered pursuant to this License Agreement.

9.

REPRESENTATIONS AND WARRANTIES OF THE LICENSOR

9.1

The Licensor represents and warrants to the Licensee, with the intent that the Licensee will rely thereon in entering into this License Agreement and in concluding the transactions contemplated hereby, as follows:

(a)

Licensor warrants that to the best of its knowledge the use of the IP Rights as intended through this License Agreement, does not infringe upon the rights of third parties;

(b)

Licensor warrants that to the best of its knowledge the IP Rights is valid, maintained and enforceable towards third parties worldwide and that the IP Rights shall be properly maintained during the term of this License Agreement.

(c)

the execution and delivery of this License Agreement and the completion of the transactions contemplated hereby have been duly and validly authorized by all necessary limited liability company action on the part of the Licensor, and this License Agreement constitutes a valid and binding obligation of the Licensor enforceable against the Licensor in accordance with its terms; except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction;

(d)

neither the execution and delivery of this License Agreement nor the performance of the Licensor’s obligations hereunder will:

(i)

violate or constitute default under any order, decree, judgment, statute, by-law, rule, regulation, or restriction applicable to the Licensor, the IP Rights, or any contract, agreement, instrument, covenant, mortgage, or security, to which the Licensor is a party or which are binding upon the Licensor,

(ii)

to the knowledge of the Licensor, result in any fees, duties, taxes, assessments, penalties or other amounts becoming due or payable by the Licensee under any sales tax legislation. 

(iii)

give rise to the creation or imposition of any encumbrance on the IP Rights,

(iv)

violate or constitute default under any license, permit, approval, consent or authorization held by the Licensor, or

(v)

violate or trigger any liability on behalf of the Licensee pursuant to any legislation governing the licensing of the IP Rights by the Licensor;

(e)

the Licensor owns and possesses and has good and marketable title to the IP Rights free and clear of all encumbrances of every kind and nature whatsoever;

(f)

no person other than the Licensee has any written or oral agreement or option or any right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option for the purchase or acquisition from the Licensor of any of the IP Rights;

(g)

There are no actions, suits, proceedings, investigations, complaints, orders, directives, or notices of defect or noncompliance by or before any court, governmental or domestic commission, department, board, tribunal, or authority, or administrative, licensing, or regulatory agency, body, or officer issued, pending, or to the best of the Licensor’s knowledge threatened against or affecting the Licensor or in respect of the IP Rights;

(h)

there is no requirement applicable to the Licensor to make any filing with, give any notice to or to obtain any license, permit, certificate, registration, authorization, consent or approval of, any governmental or regulatory authority as a condition to the lawful consummation of the transactions contemplated by this Agreement, or that relate solely to the identity of the Licensee or the nature of any business carried on by the Licensee;

10.

REPRESENTATIONS OF THE LICENSEE

10.1

The Licensee represents and warrants to the Licensor as follows, with the intent that the Licensor will rely thereon in entering into this License Agreement and in concluding the transactions contemplated hereby, that:

(a)

the Licensee is a corporation duly incorporated, validly existing, and in good standing under the laws of the State of Nevada and has the power, authority, and capacity to enter into this License Agreement and to carry out its terms;

(b)

the execution and delivery of this License Agreement and the completion of the transactions contemplated hereby has been duly and validly authorized by all necessary corporate action on the part of the Licensee, and this Agreement constitutes a valid and binding obligation of the Licensee enforceable against the Licensee in accordance with its terms; except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction;

(c)

there is no requirement for the Licensee to make any filing with, give any notice to or obtain any license, permit, certificate, registration, authorization, consent or approval of, any government or regulatory authority as a condition to the lawful consummation of the transactions contemplated by this License Agreement;

(d)

neither the execution and delivery of this License Agreement nor the performance of the Licensee’s obligations hereunder will violate or constitute a default under the constating documents, by-laws, or articles of the Licensee, any order, decree, judgment, statute, by-law, rule, regulation, or restriction applicable to the Licensee, or any contract, agreement, instrument, covenant, mortgage or security to which the Licensee is a party or which are binding upon the Licensee;

(e)

The License Fee to be issued to the Licensor under this Agreement will, when so issued, be duly authorized, validly issued, fully paid, non-assessable, free of any encumbrances and not subject to any preemptive rights or rights of first refusal created by statute or the charter documents or Bylaws of Licensee or any agreement to which Licensee is a party or is bound and will be issued in compliance with federal and state securities laws; and

(f)

Except as disclosed in the Licensee SEC documents, (i) there are no actions, suits, proceedings, investigations, complaints, orders, directives, or notices of defect or non-compliance by or before any court, governmental or domestic commission, department, board, tribunal, or authority, or administrative, licensing, or regulatory agency, body, or officer issued, pending, or to the best of the Licensee’s knowledge threatened against or affecting the Licensee; and (ii) the Licensee is in compliance in all material respects with all applicable laws applicable to Licensee and its business.

(g)

The Licensee will use its reasonable best efforts to ensure the commercial success of the Software during the life of this License Agreement. 

11.

NON MERGER

11.1

The representations, warranties, covenants, and agreements of the Licensor contained herein and those contained in the documents and instruments delivered pursuant hereto or in connection herewith will survive the Closing Date and the term of this License Agreement, and notwithstanding the completion of the transactions contemplated hereby, the waiver of any condition contained herein (unless such waiver expressly releases the Licensor of such representation, warranty, covenant, or agreement), or any investigation by the Licensee, same will remain in full force and effect.

11.2

The representations, warranties, covenants, and agreements of the Licensee contained herein and those contained in the documents and instruments delivered pursuant hereto or in connection herewith will survive the Closing Date and the term of this License Agreement, and notwithstanding the completion of the transactions contemplated hereby, the waiver of any condition contained herein (unless such waiver expressly releases the Licensee of such representation, warranty, covenant, or agreement), or any investigation by the Licensor, same will remain in full force and effect.

12.

FURTHER ASSURANCES

12.1

From time to time subsequent to the Closing Date, the parties covenant and agree, at the expense of the requesting party, to promptly execute and deliver all such further documents and instruments and do all such further acts and things as may be required to carry out the full intent and meaning of this Agreement and to effect the transactions contemplated hereby.

13.

ASSIGNMENT

13.1

This Agreement may not be assigned by any party hereto without the prior written consent of the other parties hereto.

14.

SUCCESSORS AND ASSIGNS

14.1

This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

15.

COUNTERPARTS

15.1

This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.

16.

NOTICES

16.1

Any notice required or permitted to be given under this Agreement will be in writing and may be given by personal service or by prepaid registered mail, and addressed to the proper party at such address as specified by each of the Parties hereto.  Any notice sent by registered mail as aforesaid will be deemed conclusively to have been effectively given on the fifth business day after posting; but if at the time of posting or between the time of posting and the third business day thereafter there is a strike, lockout or other labour disturbance affecting postal service, then such notice will not be effectively given until actually received.  Any notice transmitted by electronic facsimile will be deem conclusively to have been effectively given if evidence of receipt is obtained before 5:00 p.m. (recipient’s time) on a Business Day, and otherwise on the Business Day next following the date evidence of receipt of transmission is obtained by the sender.

17.

TENDER AND EXTENSIONS

17.1

Tender may be made upon the Licensor or Licensee or upon the solicitors for the Licensor or Licensee and such solicitors are expressly authorized by their respective clients to confirm extensions of the Closing Date.

18.

REFERENCE DATE

18.1

This Agreement is dated for reference as of the date first above written, but will become binding as of the date of execution and delivery by all parties hereto and subject to compliance with the terms and conditions hereof, the transfer and possession of the Business Assets will be deemed to take effect as at the close of business on the Closing Date.  References herein to the date of the Agreement or to the date hereof shall be deemed to mean the date set forth in the preamble to this Agreement.

IN WITNESS WHEREOF the parties have executed and delivered these presents on the dates indicated below.

BRANDSEED GROUP, LLC.

Per:

/s/ Chuck Anton

Chuck Anton

Title: President

HARBOR ISLAND DEVELOPMENT CORP.

Per:

/s/ Chuck Anton

Chuck Anton

Title: PresidentExhibit 10.15 Share Conversion Agreement

Exhibit 10.15

SHARE CONVERSION AGREEMENT

THIS SHARE CONVERSION AGREEMENT (the “Agreement”) dated as of September 11, 2012, is by, between, and among Desert Hawk Gold Corp., a Nevada corporation (the “Company”), and each purchaser executing this Agreement as a purchaser (each, a “Purchaser” and collectively, the “Purchasers”).

RECITALS:

WHEREAS, the Purchaser has acquired shares of common stock (the “Shares”) of the Company in a nonpublic offering of the Shares as set forth in the Term Sheet dated September 11, 2012 (the “Offering”);

WHEREAS, the Company proposes to engage in mining activities on its mining claims located in the Gold Hill Mining District in Tooele County, Utah, and in particular on the Kiewit properties located on the Company’s mining properties (the “Kiewit Properties”);

WHEREAS, as an inducement for the Purchaser to acquire the Shares, the Company has offered to grant the Purchaser the right to convert the shares into the proceeds from the sale of gold from the Kiewit Properties as set forth in this Agreement;

WHEREAS, DMRJ Group I, LLC, a Delaware limited liability company (“DMRJ Group”) has advanced funds to the Company for its mining activities and holds a security interest in all property of the Company, including the Kiewit Properties, as set forth in the Security Agreement dated July 14, 2010, between the Company and DMRJ Group (the “Security Agreement”);

WHEREAS, notwithstanding its security interest in the Kiewit Properties, and its right to foreclose on the company’s property, DMRJ Group is willing to honor the right of the Purchaser to convert the Shares into proceeds from the sale of gold from the Kiewit Properties as provided herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter contained, the parties hereto, intending to be legally bound hereby, agree as follows:

ARTICLE I.

CONVERSION RIGHT

1.1

Right to Convert.  Subject to the terms and conditions hereof, the Company hereby grants to the Purchaser the right to convert his, her, or its Shares into cash payable from 5% of the sales price or market value of the gold produced from the Kiewit.

1.2

Conversion Period.  The Purchaser shall have the right to exercise the conversion right granted hereby for a period of twelve months commencing on the first day of production of marketable gold from the Kiewit Property and ending at 5:00 pm pacific time on the date which is one year thereafter (the “Conversion Period”).  The Company shall notify the Purchaser within five business days following the date on which production of marketable gold from the Kiewit Property commences.

1.3

Conversion Amounts.  During the Conversion Period, the Purchaser shall be required upon any conversion to convert not less than one-half of the Shares acquired in the Offering.  The Purchaser shall have the right to convert up to all of the Shares in one or more conversion events during the Conversion Period.  All conversions of Shares must be in increments of $1,000.

1.4

Establishment of Conversion Value.  The Shares converted pursuant to this Agreement shall be granted a conversion value equal to $1,000 per ounce of gold produced from the Kiewit Properties based on the purchase price of the Shares (the “Conversion Value”).  For example, if the Purchaser had acquired $100,000 of Shares, he would have a Conversion Value equal to 100 ounces of gold from the Kiewit Properties.

1.5

Source of Payments.  The funds used for the payment of the Conversion Value of the Shares as provided herein shall be derived solely from the sale of gold or the market value of gold produced from the Kiewit Properties (the “Disbursal Funds”).  The sole source of the Disbursal Funds shall be limited to 5% of the gold produced from the Kiewit Properties.  

1.6

Pro Rata Disbursal of Proceeds.  The disbursal of proceeds from the sale of the gold shall be divided pro rata among all of the investors in the Offering who exercise their right to convert Shares pursuant to this Agreement. 

1.7

Disbursal of Funds.  Funds shall be paid to the Purchaser pursuant to the terms of this Agreement from each sale of gold produced from the Kiewit Properties.  In the event that gold is produced from the Kiewit Properties during any calendar quarter (the “Production Quarter”) but is not sold during the calendar quarter subsequent to the Production Quarter, the Purchaser shall receive payment for the value of such gold based upon the market value of gold on the last business day of the Production Quarter (the “Fair Market Value”).  For purposes of this Agreement the Fair Market Value shall be the spot price of gold published in the Wall Street Journal.  Payments based upon the sale of gold from the Kiewit Properties shall be made not later than thirty (30) business days following receipt of funds for such sale.  Payments based upon gold produced during a Production Quarter shall be made not later than sixty (60) business days following the end of the calendar quarter subsequent to Production Quarter.  The Purchaser shall have the right to receive funds pursuant to this Agreement until the payment in full of the Conversion Value of the Shares based upon the number of ounces represented by such Conversion Value, after which the Purchaser shall have no further rights to receive proceeds from the gold produced at the Kiewit Properties.  

1.8

Minimum Disbursal Funds.  The Disbursal Funds shall be based upon the sale price or Fair Market Value of the gold, as applicable, but in no event shall this amount be less than $1,000.

ARTICLE II.

CONVERSION PROCEDURES

2.1

Tender of Shares.  A Purchaser who elects to convert the Shares as set forth in ARTICLE I hereof shall surrender the certificate or certificates therefor (or the affidavit and indemnification referred to in Section 2.4 below with respect thereto in the event such certificate(s) has been lost, stolen or mutilated), duly endorsed or accompanied by duly endorsed stock powers, at the office of the Company, and shall give written notice to the Company at such office that such holder elects to convert the same and shall state therein the number of Shares being converted (the “Conversion Notice”).  Thereupon the Company shall promptly (but in any event within five (5) business days) issue and deliver, or cause to be issued and delivered, to such holder, at no cost to such holder, a certificate or certificates evidencing the Conversion Value of the Shares (the “Conversion Certificate”).  Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of the certificate or certificates representing the Shares (or the affidavit and indemnification referred to in Section 2.4 hereof with respect thereto) to be converted, and the Person entitled to receive the Conversion Certificate issuable upon such conversion shall be treated for all purposes as the record holder of such right on such date and the rights of the holder with respect to such Shares so converted shall cease (except with respect to the right to receive accrued and unpaid dividends and associated interest thereon, if any).  In case the number of Shares being converted is less than the number of the Shares represented by the certificate so tendered, the Company shall, upon such conversion, issue and deliver, or cause to be issued and delivered, to the holder thereof, at the expense of the Company, a new certificate or certificates for the number of Shares represented by the certificate or certificates surrendered that are not to be converted.

2

2.2

Payments by the Company.  The Company shall pay any and all issue taxes and other taxes and costs that may be payable in respect of the issuance or delivery of the conversion right represented by the Conversion Certificate upon conversion of the Shares.  

2.3

Compliance with Laws.  The Company shall take all such actions as may be necessary to assure that all Conversion Certificates may be so issued without violation of any applicable law or governmental regulation.

2.4

Replacement.  In the event the Purchaser exercises the right to convert the Shares hereunder, and upon receipt of evidence reasonably satisfactory to the Company (an affidavit of the registered holder will be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing one or more Shares, and in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company (provided that if the holder is an institutional investor, its own agreement will be satisfactory), or, in the case of any such mutilation upon surrender of such certificate, the Company shall cancel, or cause to be cancelled, on its books such lost, stolen, destroyed or mutilated certificate and shall (at the Company’s expense) issue and deliver, or cause to be issued and delivered, in lieu of such certificate a new certificate of like kind representing the number of Shares represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate.

ARTICLE III.

MISCELLANEOUS

3.1

Certain Definitions.  As used herein, the following terms shall have the meanings set forth below:

 “Person” shall mean any corporation, proprietorship, firm, partnership, limited partnership, trust, association, individual or other entity. 

3.2

Other Definitions.  In addition to the terms set forth in Section 3.1 and elsewhere in this Agreement, each of the following terms is defined in the section set forth opposite such term:

		
	Defined Term

	Location

	Agreement

	Preamble

	Company

	Preamble

	Conversion Certificate

	§2.1

	Conversion Period

	§1.2

	Conversion Notice

	§2.1

	Conversion Value

	§1.4

	Disbursal Funds

	§1.5

	DMRJ Group

	Recitals

	Fair Market Value

	§1.7

	Kiewit Properties

	Recitals

	Offering

	Recitals

	Production Quarter

	§1.7

	Purchaser

	Preamble

	Security Agreement

	Recitals

	Shares

	Recitals

3.3

Expenses.  Except as otherwise expressly provided herein, each party hereto shall bear its own expenses with respect to this Agreement and the transactions contemplated hereby.

3.4

Amendment.  This Agreement may only be amended, modified or supplemented pursuant to a written agreement signed by each of the parties hereto or the applicable parties to be bound by such amendment.

3

3.5

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

3.6

Notices.  All notices, consents, waivers, requests, instructions, or other communications required or permitted hereunder shall be in writing, and shall be deemed to have been duly given if (a) delivered personally (effective upon delivery), (b) sent by a reputable, established international courier service (effective one business day after being delivered to such courier service), or (c) mailed by certified mail, return receipt requested, postage prepaid (effective three business days after being deposited in the U.S. mail), addressed as follows (or to such other address as the recipient may have furnished for such purpose pursuant to this Section):

If to the Company:

7723 North Morton Street

Spokane, WA  99208

Attn:  Robert E. Jorgensen, Chief Executive Officer

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

Ronald N. Vance, Esq.

Ronald N. Vance & Associates, P.C.

Attorney at Law

1656 Reunion Avenue

Suite 250

South Jordan, Utah  84095

if to the Purchaser, at the address set forth on the Purchaser Signature Page hereto;

or to such other individual or address as a party hereto may designate for itself by notice given as herein provided. 

3.7

Waivers.  The failure of a party hereto at any time or times to require performance of any provision hereof shall in no manner affect the right of such party at a later time to enforce the same.  No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement shall be effective unless in writing, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach in other instances or a waiver of any other condition or breach of any other term, covenant, representation or warranty.

3.8

Interpretation.  The headings preceding the text of Articles and Sections included in this Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting this Agreement.  The use of the masculine, feminine or neuter gender herein shall not limit any provision of this Agreement.  The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively.

3.9

Applicable Law and Venue.  This Agreement and the rights and duties of the parties hereto shall be construed and determined in accordance with the laws of the State of Utah (without giving effect to any choice or conflict of law provisions), and any and all actions to enforce the provisions of this Agreement shall be brought in a court of competent jurisdiction in the State of Utah and in no other place. 

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3.10

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

3.11

Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

3.12

No Third Party Beneficiaries.  Except as otherwise provided herein, this Agreement is solely for the benefit of the parties hereto and, to the extent provided herein, their respective directors, officers, employees, agents and representatives, and no provision of this Agreement shall be deemed to confer upon other third parties any remedy, claim, liability, reimbursement, cause of action or other right.

3.13

Severability.  If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of the other provisions hereof shall remain in full force and shall not be affected thereby, and there shall be deemed substituted for such invalid, illegal or unenforceable provision a valid, legal and enforceable provision as similar as possible to the provision at issue.

3.14

Remedies Cumulative.  The remedies provided in this Agreement shall be cumulative and shall not preclude the assertion or exercise of any other rights or remedies available by law, in equity or otherwise.

3.15

Entire Understanding.  This Agreement sets forth the entire agreement and understanding of the parties hereto and supersedes all prior agreements, letters of intent, arrangements and understandings between the parties.

3.16

Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Facsimile transmissions of any signed original document, or transmission of any signed facsimile document, shall constitute delivery of an executed original.  At the request of any of the parties, the parties shall confirm facsimile transmission signatures by signing and delivering an original document.

3.17

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

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SIGNATURE PAGE

IN WITNESS WHEREOF, the undersigned has caused this Share Conversion Agreement to be executed, thereunto duly authorized, on the day and year set forth below.

Desert Hawk Gold Corp.

Date:  September 11, 2012

By  /s/ Robert E. Jorgensen

Robert E. Jorgensen, Chief Executive Officer

PERFORMANCE GUARANTEE

DMRJ Group I, LLC (“DMRJ Group”) hereby represents and warrants to each Purchaser, its, his, or her heirs, executors, administrators, successors, and assigns that in the event that DMRJ Group shall foreclose on the Kiewit Property pursuant to the Security Agreement, DMRJ Group shall pay to the Purchaser the Disbursal Funds (as defined in the above Agreement) to which the Purchaser shall be entitled pursuant to Article I of the above Agreement and to be bound by the terms of conditions thereof.  DMRJ Group further represents and warrants to the Purchasers that in the event of foreclosure and subsequent sale of the Kiewit Property, DMRJ Group will require any purchaser of the Kiewit Property to be bound by the terms of the above Agreement.

IN WITNESS WHEREOF, the undersigned has caused this document to be executed, thereunto duly authorized, on the day and year set forth below.

DMRJ Group I, LLC

Date:  September 11, 2012

By  /s/ Daniel Small

Name:  Daniel Small

Title:  Managing Director

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PURCHASER SIGNATURE PAGE

IN WITNESS WHEREOF, the undersigned has caused this Share Conversion Agreement to be executed, thereunto duly authorized on the day and year set forth below.

Date:  _____________, 2012

_________________________________________

Signature

Name: _________________________________________

Entity Name (if applicable): __________________________

Title (if applicable): _________________________________

Address: _________________________________________

_________________________________________________

_________________________________________________

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