Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Corporation - Exhibit 10.3









November 2, 2006

John T. Perry 
6740 North Columbus 
Tucson, Arizona
85718

Re: Performance Bonus

As a Director, I am pleased to inform you that the Board of Directors
  has recognized the key role and significant efforts made by you in return for
  little or no cash remuneration over the course of the past year to: 

	
  bring the Nord Resources Corporation (“Nord”) back into compliance with its
  reporting obligations under the Securities Exchange Act of 1934, as
  amended, after a lapse in reporting of approximately six years; 

  
	
  address and settle a myriad of outstanding issues with various creditors,
  litigants, the Arizona Department of Environmental Quality and other third
  parties; 

  
	
  secure bridge financing for Nord, thereby preserving the assets for the
  benefit of Nord’s stockholders; and 

  
	
  generally position Nord to seek additional financing or as an attractive
  takeover target. 



The Board of Directors has observed that Nord’s management team
accomplished these milestones by the end of the quarterly period ended September
30, 2006.

In light of the foregoing, on October 16, 2006, the Board of
Directors resolved to award you a performance bonus of Three Hundred Thousand
Dollars ($300,000). In light of Nord’s current cash situation, however, your
bonus has been awarded to you on terms whereby it will be accrued and will be
payable when Nord has sufficient funds to make the payments, as shall be
determined in the sole discretion of the Board of Directors. Further, the bonus
will be paid to you only on condition that you shall indemnify, defend and save
harmless Nord, any successor corporation to NORD, and their respective officers
and directors, against liability for any payroll, income or other taxes that
NORD might otherwise be required to withhold, remit or pay in respect of such
bonus payments (the “Taxes”) in excess of the taxes that Nord withholds based on
its good faith judgment of the amount that is required to be withheld and
excluding taxes that are Nord’s responsibility to pay without withholding (i.e.,
the employer’s portion of employment taxes).




Accordingly, in consideration and as a condition of your bonus
grant, please sign and return the enclosed duplicate copy of this letter to
confirm your agreement as follows:

	1. 	
      Effective upon receipt by you of all or any portion of
      the performance bonus (subject to withholding), you will indemnify,
      defend, and hold harmless Nord and any successor corporation to Nord (a
      “Successor”), and their respective directors and officers (each, including
      Nord and any Successor, an “Indemnified Party”) for, from, and against any
      and all manner of action and actions, causes of action, claims, demands,
      debts, reimbursements, accounts, judgments, liabilities, costs, expenses
      and damages, in respect of Taxes, whether presently known or unknown,
      suspected or unsuspected, or primary or derivative, to which any
      Indemnified Party may become subject under applicable law or
    otherwise.

	 	 
	2. 	
      Nord will promptly deliver to you written notice setting
      forth in reasonable detail the nature and amount of the claim for
      indemnification made by an Indemnified Party under this letter
      agreement.

	 	 
	3. 	
      This letter agreement will be governed by and construed
      in accordance with the laws of the State of Arizona without regard to the
      principles of conflicts of laws of the State of Arizona.

	 	 
	4. 	
      This letter automatically will be assigned to, and inure
      to the benefit of, any Successor (whether through merger, consolidation or
      otherwise) without your consent.

	 	 
	5. 	
      This letter agreement may be executed in one or more
      counterparts, which, when taken together, shall constitute a single
      agreement.

	 	 
	6. 	
      Delivery of an executed copy of this letter agreement by
      electronic facsimile transmission or other means of electronic
      communication capable of producing a printed copy will be deemed to be
      execution and delivery of this letter agreement as of the date first above
      written.



Congratulations, and thank you for a job well done.

NORD RESOURCES CORPORATION

By: 

/s/ Douglas P. Hamilton

Doug Hamilton, Director




Accepted and agreed to as of the date first written above.

	Executed and delivered by John T. Perry, in 	) 	  
	the presence of: 	) 	  
	 	) 	 
	/s/ Christian
      Paul Guy 	) 	  
	Witness (Signature) 	) 	By: /s/ John T.
      Perry 
	  	) 	John T. Perry 
	Christian
      Paul Guy 	) 	  
	Name (please print) 	)