Exhibit 10.1
Promissory
Note
One this date of
December 1, 2005, in return for valuable consideration received,
the undersigned borrower(s) jointly and severally promise to pay to
Swallow Family LLC, the “Lender”, the sum of $100,000
(one hundred thousand dollars), or at the end of the loan period,
shares of Timberline Resources common stock at a conversion rate of
$.25/share or at the market price of the shares at that time,
whichever is less.
Terms of
Repayment: Starting on December 1, 2005,
and continuing thereafter from month to month until the date of
December 1, 2010, borrowers shall make payments of interest only in
the amount of $833.33.
Late
Fees: In the event that a payment
due under this Note is not made within ten (10) days of the time
set forth herein, the Borrower shall pay an additional late fee in
the amount of $100.
Prepayment: There is no prepayment
penalty. This Note may be paid in part or full in cash at any
time prior to end of the loan period without penalty.
Place of
Payment: All payments due under this
Note shall be made to Swallow Family, LLC, 905 South Jarvis Road,
Coeur d’Alene, Id. 83814.
Default:
In the event of
default, the borrower(s) agree to pay all costs and expenses
incurred by the Lender, including all reasonable attorney fees
(including both hourly and contingent attorney fees as permitted by
law) for the collection of this Note upon default, and including
reasonable collection charges (including, where consistent with
industry practices, a collection charge set as a percentage of the
outstanding balance of the Note) should collection be
referred
