Document:

exv10w8

 

Exhibit
10.8

MANAGEMENT SERVICES AGREEMENT

THIS AGREEMENT made as of February 1, 2004

BETWEEN:

LOPEZ & ASHTON Ltda., a partnership having an office at Enrique Foster Sur
20, Piso 19, Los Condes, Santiago, Chile

(“Manageco”)

AND:

COMPAÑÍA MINERA RUTILE RESOURCES LIMITADA, a Chilean company having a
registered and records office at Enrique Foster Sur 20, Piso 19, Los Condes,
Santiago, Chile, and a wholly owned subsidiary of White Mountain Titanium
Corporation

(“WMTC”)

WHEREAS:

A. WMTC owns the WMTC rutile mineral property (the “Cerro Blanco Project”) in Region III of Chile
and carries on a mining business; and

B. WMTC requires consulting and management services in respect of its business.

     NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the premises and other good
and valuable consideration (the receipt and sufficiency of which is hereby acknowledged) the
parties hereto covenant and agree as follows:

1.0 DEFINITIONS

1.1 In this Agreement the following terms have the meanings set forth after each unless otherwise
defined in the recitals to this Agreement:

	 	(a)	 	“Shareholders” means the shareholders of WMTC;
	 
	 	(b)	 	“Management Services” has the meaning collectively assigned by Section 3.1;
	 
	 	(c)	 	“Term” has the meaning assigned by Section 2.1.

2.0 TERM AND RENEWAL

2.1 WMTC hereby engages Manageco for a term (the “Term”) commencing on [February 1], 2004 and
ending on [December 31, 2005], subject to such extension as the parties may agree or earlier
termination as provided in Section 10.

 

3.0 OBLIGATIONS OF MANAGECO

3.1 The management services (the “Management Services”) to be provided by Manageco under this
Agreement will include, but not be limited to:

	(a)	 	maintaining a corporate head office for WMTC in Chile;
	 
	(b)	 	providing administrative services to WMTC, including the provision of accounting and
bookkeeping services and records, monthly financial reporting, liaison with company auditors,
payment of invoices, and other related matters;
	 
	(c)	 	providing receptionist, “junior” and other support services generally relating to providing
assistance to WMTC management in the performance of its duties (this does not include a
secretary for WMTC);
	 
	(d)	 	providing comprehensive legal representation for the company in Chile, including:

	 	-	 	preparing all filing necessary corporate filings with appropriate government
offices;
	 
	 	-	 	Legal representation of the company before Chilean government offices,
including the following: Foreign Investment Committee, Chilean Central Bank, Chilean
IRS, National Environmental Commission, Municipalities;
	 
	 	-	 	Dealings with ENAMI (the Chilean National Mining Company);
	 
	 	-	 	Land acquisition negotiations, due diligence and legal work;
	 
	 	-	 	Water right acquisition negotiations, due diligence and legal work;
	 
	 	-	 	Registrations of Contracts with respective entity (registrars of commerce,
mines, property registries, etc);
	 
	 	-	 	Due diligence and title search;
	 
	 	-	 	Environmental Impact Study support;
	 
	 	-	 	Labor and service agreements according to Chilean law;
	 
	 	-	 	Ensure compliance with Chilean IRS and legal regulations;
	 
	 	-	 	Mining easement agreements, negotiations with surface owners, execution of
legal documents;
	 
	 	-	 	Negotiations with electrical company for power;
	 
	 	-	 	Legal staff support;
	 
	 	-	 	Translations to English of Spanish for minor documents

	(e)	 	coordinating the relationship between WMTC and Scotiabank and other local financial
institutions providing financial services to WMTC;
	 
	(f)	 	providing advice to the Shareholders and management of WMTC and, if requested, attend
executive meetings of WMTC;
	 
	(g)	 	negotiating and approving long-term contracts and leases;
	 
	(h)	 	considering and advising on capital enhancing mergers, acquisitions and dispositions.

2

 

4.0 PURPOSES OF ENGAGEMENT

4.1 Manageco and WMTC acknowledge that the purposes of the engagement of Manageco are to assist
WMTC in rationalizing its business activities, to identify and advise as to the development of new
business activities for WMTC and to perform the administrative, legal and support functions
typically associated with operating a feasibility stage project in Chile.

5.0 IMPLEMENTATION OF PLANS

5.1 Manageco will coordinate with WMTC management to make all necessary arrangements to provide
such required administrative services as may be required by WMTC.

6.0 STANDARD

6.1 Manageco will cause its duties hereunder to be performed in an efficient and businesslike
fashion save and except insofar as Manageco may be prevented from so doing by force majeure, labour
disturbances, strikes, lockout, legal requirements, casualties, accidents, fire, or any cause
beyond the reasonable control of Manageco.

7.0 EXCLUSIVE SERVICES

7.1 WMTC acknowledges and agrees that during the Term of this Agreement or any renewals thereof
Manageco may not carry on or be engaged in or concerned with or advise in the operating of any
other business or enterprise, which may place Manageco in a position which conflicts with its
obligations under this Agreement.

8.0 WMTC DIRECTION

8.1 It is agreed and understood that Manageco at all times will be entitled to rely on and to act
upon the instructions or directions received from WMTC and without limiting the generality of the
foregoing, the receipt by Manageco of instructions or directions from WMTC will constitute full and
sufficient authority for Manageco to act in accordance therewith.

9.0 FEES

9.1 WMTC will pay a monthly management fee to Lopez & Ashton, concerning the provision of
Management Services by Manageco to WMTC during the previous one month period of time, in an amount
equal to sum of the following:

(i) US$11,000 or CH$6,600,000, whichever is greater, as of the last day of each month during the
Term concerning the provision of Management Services, other than those set out in (ii);

(ii) US$1,000 or for office space to include an executive suite, and use of all common areas, and
office infrastructure, such as high speed internet, voice mail, conference room, kitchenette,
commonary expenses for electricity, water, a/c and cleaning, etc.

The payments in (i) above shall be inclusive of any taxes that might otherwise be payable.

9.2 Manageco shall be entitled to have paid to third parties, costs incurred on behalf of WMTC in
connection with the performance of, and to be reimbursed an amount equal to Manageco’s direct or
out-of-pocket costs of supplying the Management Services and otherwise complying with its
obligations under this Agreement.

3

 

10.0 EVENTS OF TERMINATION

10.1 This Agreement will be subject to termination, without further liability, upon the occurrence
of any one of the following events:

	 	(a)	 	if Manageco defaults in the performance or observance of any of the covenants,
duties, or obligations of Manageco contained in this Agreement and such default
continues for a period of 30 days after WMTC gives written notice thereof to Manageco,
then WMTC will be entitled to terminate this Agreement and all rights of Manageco which
may accrue to Manageco pursuant to this Agreement after the date of the giving of such
notice will be absolutely forfeited; provided, however, that if the default referred to
in the notice in the reasonable opinion of WMTC requires more time to remedy or cure
than such 30 day period, then WMTC will not terminate this Agreement pursuant to this
Section 10.1 if Manageco commences remedying or curing the default within such 30 day
period and thereafter diligently and continuously proceeds to completely remedy or cure
the default;
	 
	 	(b)	 	if WMTC defaults in its obligations hereunder to pay any fees or costs herein
mentioned or to reimburse Manageco pursuant to Section 9 of this Agreement, Manageco
will be entitled to terminate this Agreement if such default continues for 60 days
after Manageco gives written notice of such default to WMTC;
	 
	 	(c)	 	if any bankruptcy petition is filed against Manageco and a final adjudication
of bankruptcy entered thereon, or if Manageco makes an assignment for the benefit of
its creditors, then WMTC will have the option (exercisable by giving notice in writing
to Manageco or to its assignee, trustee in bankruptcy, or other legal representative
within 90 days after the act or event giving rise to such option) to terminate this
Agreement; and
	 
	 	(d)	 	written agreement of the parties to terminate this Agreement.
	 
	 	(e)	 	in the event that the sale of the shares of WMTC or White Mountain Titanium
Corporation, or sale of substantially all of the assets of WMTC.

11.0 GENERAL

11.1 Notices

     Any notice, demand or other document to be given, or any delivery to be made hereunder, will
be deemed to be well and sufficiently given or made if delivered personally, or sent by facsimile,
or if mailed at any government post office by prepaid registered mail:

4

 

	 	(a)	 	in the case of Manageco, to:

Lopez & Ashton

Enrique Foster Sur 20, Piso 20,

Los Condes, Santiago, Chile

Attention: [Stephanie Ashton]

Facsimile: (56-2) 321-9070

Email: sda@lopezashton.cl

	 	(b)	 	in the case of WMTC to:

Compañía Minera Rutile Resources Limitada

Enrique Foster Sur 20, Piso 19,

Los Condes, Santiago, Chile

Attention: Michael Kurtanjek

Facsimile: (56-2) 321-9070

Email: mpk@wmtcorp.com

or to such other address any party may from time to time advise the other party in writing, and any
such notice will be deemed to have been received on the third business day after the mailing
thereof, or if delivered, when delivered, or if sent by facsimile, on the day such facsimile is
received. If such notice is mailed and there occurs prior to the deemed receipt of such notice a
mail strike, slowdown or other labour dispute which might affect the delivery of such notice, then
such notice will be effective only when actually delivered.

11.2 Enurement

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

11.3 Headings

     The headings of all Sections in this Agreement are inserted for convenience of reference only
and will not affect the construction or interpretation of this Agreement.

11.4 Applicable Law

     This Agreement will be construed and interpreted in accordance with the laws of Chile and the
parties agree to submit any dispute arising out of this Agreement exclusively to the courts of
Chile.

11.5 Further Assurances

     Each party will execute and deliver such further agreements and other documents and do such
further acts and things as the other party reasonably requests to evidence, carry out or give full
force and effect to the intent of this Agreement.

5

 

11.6 No Assignment

     Manageco may not assign this Agreement without WMTC’s written consent, but may engage persons
from time to time to assist it in carrying on its obligations hereunder.

     IN WITNESS WHEREOF the parties hereto have executed this Agreement.

Lopez & Ashton Ltda.

	 	 	 
	By:

	 	/s/ Stephanie Ashton
	 

	 	Authorized Signatory

Compañía Minera Rutile Resources Chile Limitada

White Mountain Titanium Corporation

	 	 	 
	By:

	 	/s/ Michael Kurtanjek

	 

	 	Authorized Signatory

6

 

AMMENDMENT JANUARY 2005:

Amendment to Section 9.1 change in allowance for office rental and allotment for secretary:

(ii) CH$1,200,000 for two office spaces to include an executive suite, a junior suite and use of
all common areas, and office infrastructure, such as high speed internet, voice mail, conference
room, kitchenette, commonary expenses for electricity, water, a/c and cleaning, etc.

(iii) CH$638,000 allowance for bi-lingual secretarial support.

Lopez & Ashton Ltda.

	 	 	 
	By:

	 	/s/ Staphanie Ashton
	 

	 	Authorized Signatory

Compañía Minera Rutile Resources Chile Limitada

White Mountain Titanium Corporation

	 	 	 
	By:

	 	/s/ Michael Kurtanjek

	 

	 	Authorized Signatory<PAGE>
                                                                     EXHIBIT 4.1

                             SUPPLEMENTAL INDENTURE

         THIS SUPPLEMENTAL INDENTURE (this "Supplemental Indenture") is dated as
of October 27, 2005 between CITGO PETROLEUM CORPORATION, a Delaware corporation
(the "Company") and J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION (successor
in interest to Bank One, N.A., successor in interest to First National Bank of
Chicago), as trustee ("Trustee"). Capitalized terms used but not defined herein
shall have the meaning given to such terms in the Indenture (as defined below).

         WHEREAS, the Company and the Trustee entered into an Indenture, dated
as of May 1, 1996 (the "Indenture"), providing for the issuance of the Company's
7 7/8% Senior Notes due 2006 (the "Securities");

         WHEREAS, the Company has proposed certain amendments to the Indenture
(the "Proposed Amendments") which, pursuant to Section 902 of the Indenture,
must be approved with the consent of Holders of no less than a majority in
principal amount of all Outstanding Securities;

         WHEREAS, pursuant to the Offer to Purchase and Consent Solicitation
Statement, dated October 13, 2005, and related Consent and Letter of Transmittal
(together, the "Consent Solicitation Statement"), the Company has offered to
purchase the Notes (the "Offer") and solicited the consents of the Holders of
the Notes to the Proposed Amendments, upon the terms and subject to the
conditions set forth therein;

         WHEREAS, the Company has received the valid consents of Holders of more
than a majority in principal amount of the Outstanding Securities in respect of
the Proposed Amendments set forth in this Supplemental Indenture; and

         WHEREAS, all conditions and requirements necessary to make this
Supplemental Indenture a valid, binding, and legal agreement, in accordance with
its terms, have been performed and fulfilled and the execution and delivery
hereof have been in all respects duly authorized.

         NOW THEREFORE, in consideration of the premises herein contained and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, it is mutually covenanted and agreed, as follows:

                                    ARTICLE I

                             AMENDMENTS TO INDENTURE

         SECTION 1.01. Amendments to Article Ten. On the date (the "Payment
Date") that the Company pays for all Securities validly tendered and not
withdrawn pursuant to the Offer (unless, prior to that time, the Company has
terminated this Supplemental Indenture as provided

<PAGE>
in Section 2.07 hereof), this Supplemental Indenture shall become operative and
the following Sections of the Indenture, and any corresponding provisions in the
Securities, shall be hereby deleted in their entirety and replaced with
"Intentionally Omitted":

         <Table>
         <Caption>

         EXISTING SECTION NUMBER                                 CAPTION
         -----------------------                                 -------
         <S>                                                     <C>
         Section 1005.........................................   Maintenance of Properties
         Section 1006.........................................   Insurance
         Section 1007.........................................   Payment of Taxes and Other Claims
         Section 1008.........................................   Limitation on Restricted Payments
         Section 1009.........................................   Specified Agreements
         Section 1010.........................................   Transactions with Affiliates
         Section 1011.........................................   Limitation on Liens
         Section 1012.........................................   Limitation on Sale and Leaseback Transactions
         Section 1013.........................................   Restricted and Unrestricted Subsidiaries
         Section 1014.........................................   Reports to Holders
         </Table>

         SECTION 1.02. Amendments to Article Five. On the Payment Date (unless,
prior to that time, the Company has terminated this Supplemental Indenture as
provided in Section 2.07 hereof), this Supplemental Indenture shall become
operative and Section 501 shall be hereby amended and restated to read in its
entirety as follows:

         "SECTION 501. Events of Default. An "Event of Default" occurs with
respect to the Securities of a series if:

         (i)   the Company defaults in any payment of interest on any Security
of such series when it becomes due and payable, and such default continues for a
period of 30 days;

         (ii)  the Company defaults in the payment of the principal of or
premium, if any, on any Security of such series when the same becomes due and
payable at maturity, upon acceleration, required repurchase, or otherwise;

         (iii) the Company fails to comply with any of its agreements or
covenants in, or provisions of, the Securities or this Indenture (other than
clause (i) or (ii) above) and the default continues for the period and after the
notice specified below;

         (iv)  Intentionally Omitted;

         (v)   Intentionally Omitted;

         (vi)  Intentionally Omitted;

                                      -2-
<PAGE>

         (vii)  Intentionally Omitted;

         (viii) any other event specified as an "Event of Default" for such
series pursuant to Section 301(xv) hereof occurs.

         A default under clause (iii) of this Section 501 is not an Event of
Default with respect to the Securities of a series until the Trustee notifies
the Company in writing, or the Holders of at least 25% in principal amount of
the Securities of such series then Outstanding notify the Company and after
receipt of the notice. The notice must specify the default, demand that it be
remedied and state that the notice is a "Notice of Default". Such notice to the
Company shall be given by the Trustee if so requested in writing by the Holders
of at least 25% of the principal amount of the Securities of such series then
Outstanding."

         SECTION 1.03. Amendments to Section 801. On the Payment Date (unless,
prior to that time, the Company has terminated this Supplemental Indenture as
provided in Section 2.07 hereof), this Supplemental Indenture shall become
operative and Section 801 shall be hereby amended and restated to read in its
entirety as follows:

         "SECTION 801. When Companies May Merge, etc. The Company shall not, and
shall not permit any Restricted Subsidiary to, merge or consolidate with or into
any other Person (other than a merger of a Restricted Subsidiary into the
Company, or a merger of a Restricted Subsidiary with another Restricted
Subsidiary) or sell, transfer, assign, lease, convey or otherwise dispose of all
or substantially all of its Property or assets to any Person, unless (i) the
entity formed by or surviving any such consolidation or merger (if the Company
is a party to the transaction and is not the surviving entity) or to which such
sale, transfer or conveyance is made (the "Surviving Entity") shall be a solvent
corporation, limited partnership or limited liability company organized and
existing under the laws of the United States or a State thereof or the District
of Columbia and such Surviving Entity expressly assumes, by supplemental
indenture satisfactory to the Trustee, executed and delivered to the Trustee in
accordance with the terms of this Indenture by such Surviving Entity, the due
and punctual payment of the principal of, premium, if any, and interest on all
the Securities, according to their tenor, and the due and punctual performance
and observance of all of the covenants and conditions of this Indenture to be
performed by the Company; and (ii) immediately before and after giving effect to
such transaction (and treating any Indebtedness which becomes an obligation of
the Surviving Entity or any Restricted Subsidiary as a result of such
transaction as having been Incurred by the Surviving Entity or such Restricted
Subsidiary at the time of such transaction), no Default or Event of Default
shall have occurred and be continuing."

                                   ARTICLE II

                                  MISCELLANEOUS

         SECTION 2.01. Instruments To Be Read Together. This Supplemental
Indenture is an indenture supplemental to and in implementation of the
Indenture, and said Indenture and this Supplemental Indenture shall henceforth
be read together.

                                      -3-
<PAGE>

         SECTION 2.02. Confirmation. The Indenture, as amended and supplemented
by this Supplemental Indenture, is in all respects confirmed and preserved.

         SECTION 2.03. Terms Defined. Capitalized terms used in this
Supplemental Indenture have been inserted for convenience of reference only, and
are not to be considered a part hereof and shall in no way modify or restrict
any of the terms and provisions hereof.

         SECTION 2.04. Headings. The headings of the Articles and Sections of
this Supplemental Indenture have been inserted for convenience of reference
only, and are not to be considered a part hereof and shall in no way modify or
restrict any of the terms and provisions hereof.

         SECTION 2.05. Governing Law. This Supplemental Indenture shall be
governed by and construed in accordance with the laws of the State of New York.

         SECTION 2.06. Counterparts. This Supplemental Indenture may be executed
in any number of counterparts, each of which so executed shall be deemed to be
an original, but all such counterparts shall together constitute but one and the
same instrument.

         SECTION 2.07. Effectiveness; Termination. The provisions of this
Supplemental Indenture will take effect immediately upon its execution and
delivery by the Trustee in accordance with the provisions of Sections 104, 903
and 904 of the Indenture; provided, that the amendments to the Indenture set
forth in Article I of this Supplemental Indenture shall become operative as
specified in Article I hereof. Prior to the Payment Date, the Company may
terminate this Supplemental Indenture upon written notice to the Trustee. Upon
receipt by the Trustee of any such notice of termination, this Supplement
Indenture shall be deemed terminated and of no further force or effect.

         SECTION 2.08. Acceptance by Trustee. The Trustee accepts the amendments
to the Indenture effected by this Supplemental Indenture and agrees to execute
the trusts created by the Indenture as hereby amended, but only upon the terms
and conditions set forth in the Indenture.

         SECTION 2.09. Responsibility of Trustee. The recitals contained herein
shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Supplemental Indenture.

                            [Signature Pages Follow]

                                      -4-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed, all as of the date first written above.

                                       CITGO PETROLEUM CORPORATION

                                       By:  /s/ Philip J. Reedy
                                            ------------------------------------
                                            Name: Philip J. Reedy
                                            Title: Treasurer

                                       J.P. MORGAN TRUST COMPANY, NATIONAL
                                       ASSOCIATION

                                       By:  /s/ B. Impala
                                            ------------------------------------
                                            Name: B. Impala
                                            Title: Assistant Vice President

                                      -5-

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