Exhibit 4.07

THIS
AGREEMENT MADE AS OF THE 31st day of December, 2005.

BETWEEN:

| |  | DAVID GAROFALO,of the Town of Richmond Hill, in the
Province of Ontario,                        
| |  | ------------------------------------------------------------------------------------------------
| |  | (hereinafter called the "Employee")                                                             
| |  | OF THE FIRST PART                                                                               
| |  |  and                                                                                          
| |  | AGNICO-EAGLE MINES LIMITED,a corporation
Incorporated under the laws of the Province of Ontario,
| |  | (hereinafter called the "Corporation")                                                          
| |  | OF THE SECOND PART                                                                              

WHEREASthe Employee is presently serving the Corporation in the capacity of Vice President, Finance and Chief Financial Officer;

AND WHEREASthe corporation and the employee are parties to a previous Employment Agreement made prior to the date of this Agreement
("the Previous Agreement");

AND WHEREASthe parties wish to enter into this Agreement to supersede the terms of the Previous Agreement;

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NOW THEREFORE THIS AGREEMENT WITNESSETH THATin consideration of the mutual covenants and agreements herein contained and for other good
and valuable consideration, the receipt, adequacy and sufficiency whereof is hereby acknowledged, the parties agree as follows:

1.EMPLOYMENT

The Employee shall serve the Corporation as its Vice President, Finance and Chief Financial Officer or in any other capacity bearing similar responsibilities, and
he shall perform the duties and exercise the powers as are usually performed and exercised by such an officer, subject always to the control and direction of the Chief Executive Officer.

2.BEST EFFORTS

The Employee shall faithfully serve the Corporation during the continuance of this employment as described in paragraph 1 hereof and shall use his best
efforts and ability to promote the interests of the Corporation

3.PLACE OF EMPLOYMENT

The Employee shall be based in the City of Toronto, in the Province of Ontario, and unless agreed by the Employee the Corporation shall not transfer him to any
place outside the City of Toronto or its environs to perform his duties under the terms of the Agreement.

4.REMUNERATION



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5.HEALTH AND WELFARE

The Employee shall be entitled to participate in such group benefit, share purchase and stock option plans as are available to the Corporation's executive
employees from time to time including, without limitation, dental, drug and medical plan, life, disability and accident insurance and pension plan.

6.AUTOMOBILE AND BUSINESS EXPENSES

The Employee shall be provided with an automobile allowance of One Thousand Six Hundred Dollars ($1,600) per month and shall further be reimbursed for all
business expenses actually and properly incurred by him in connection with his duties under paragraph 1 herein, upon furnishing to the Corporation statements and vouchers in respect of expenses
so incurred, as and when required to do so by the Corporation.

7.VACATION

During the employment of the Employee as described in paragraph 1 herein, the Employee shall from time to time be entitled to a vacation of five
(5) weeks in each calendar year, such vacation not to be cumulative. Such vacation shall be taken at such times as the Employee, in consultation with the Chief Executive Officer may determine,
having regard to the operations of the Corporation.

8.STOCK OPTION

The Employee shall be granted stock options from time to time as determined by the Compensation Committee of the Corporation which options will be in accordance
with the Corporation's Stock Option Plan.

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9.TERMINATION

a)    Termination for Cause



b)    Termination Due to Disability



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c)     Termination Without Cause



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d)    Resignation by Employee



10.NOTICES

Any notice in writing required or permitted to be given to the Employee hereunder shall be sufficiently given if delivered to the Employee personally or mailed by
registered mail, postage, prepaid, addressed:



Any
notice in writing required or permitted to be given to the Corporation hereunder shall be given by registered mail, postage, prepaid, addressed to the Corporation at:



Any
notice mailed as aforesaid shall be deemed to have been received on the fourth business day following the date of mailing.

Any
such address for the giving of notices hereunder may be changed by notice in writing as provided herein.

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11.GOVERNING LAW

This Agreement shall be deemed to have been made in and shall be construed in accordance with the laws of the Province of Ontario and the courts of Ontario shall
have exclusive jurisdiction in connection therewith.

12.ENTIRE AGREEMENT

This Agreement constitutes the entire agreement operative between the parties in connection with the Employee's employment and supersedes all prior agreements and
understandings. No modification or amendment will be effective unless it is in writing and signed by the parties hereto.

13.SUCCESSORS AND ASSIGNS

This Agreement shall ensure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and
assigns.

IN WITNESS WHEREOFthe parties have executed this Agreement.

|SIGNED, SEALED AND DELIVERED |  | ) |  |                            |  | 
|---------------------------- |  | - |  | -------------------------- |  | 
|                             |  | ) |  |                            |  | 
|in the presence of:          |  | ) |  |                            |  | 
|                             |  | ) |  |                            |  | 
|                             |  | ) |  | DAVID GAROFALO            
|                             |  |   |  |                            |  | 
|Witness                      |  |   |  |                            |  | 
|                             |  |   |  | AGNICO-EAGLE MINES LIMITED
|                             |  |   |  | Per:                       |  | 
|                             |  |   |  |                            |  | 

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