Document:

Management Agreement Gomez

EXHIBIT 10 (d)

MANAGEMENT AGREEMENT

THIS AGREEMENT is made on October 29, 2004, 

BETWEEN

ON THE FIRST PART:

ITS Networks, Inc., a Florida, USA based telecom company, registered in USA, with a branch located in Spain ‘Teleconnect Comunicaciones, S.A.’ and ‘ITS Europe, S.L.’, located Edif. Marina Marbella, Avd. Severo Ochoa 28, Planta 9, 29600 Marbella (Malaga), Spain and represented by Mr. Gustavo Gomez Sanchez in his capacity as President(hereinafter, the "Company")

AND OF THE OTHER PART:

Shareworks Espa3a, S.L., a company located at C/Helsinki s/n, Palmeras del Golf M-PB-2, 29630 Benalmadena-Costa (Malaga), Spain with Fiscal Identity Number (C.I.F.) B-92434760 (hereinafter, the "Contractor") and represented by Mr. Walter Herman Cornelis de Haas of full legal age, of Dutch Nationality, married, and holder of Fiscal Identity Number (N.I.E.) X-5198936-Q (hereinafter, the "Professional")

The parties mutually acknowledge each other’s full capacity to formalize this Management Contract (hereinafter, the "Agreement")

PREAMBLE

WHEREAS, Professional presently is contracted by Company as its Executive Vice-President and as the Chief Executive Officer of its subsidiary Teleconnect Comunicaciones, S.A.;

WHEREAS, Company wishes, as approved by its Board of Directors and its Majority Shareholder on October 29, 2004, to renew the management contract in place today with Contractor and substitute it with this new Agreement with Contractor, which represents the Professional;

WHEREAS, Professional, Contractor and Company agree that this Management Agreement supersedes all other employment agreement(s) and contract(s) for services between the Contractor, Professional and Company written, implied or otherwise.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the Contractor and Company hereby agree as follows:

	  
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AGREEMENT

 

ARTICLE I

TERM OF MANAGEMENT AGREEMENT

 

    1.1    Contract. The Company agrees to contract the Contractor and the Contractor agrees to render services to the Company upon the terms and conditions hereinafter set forth.

    1.2    Term. The contracting of the Contractor by the Company as provided herein shallcommence on October 1, 2004 and is set for an unlimited time, unless terminated by mutual agreement or in accordance with the provisions of Article IV.

    1.3    Office and Support. Contractor shall be provided an office and reasonable support staff, including but not limited to access to secretarial services, at Company’s head and branch office(s).

    1.4    Place of Performance. In connection with Contractor’s assignment by the Company,Professional shall be based at Company’s principal place of business in Spain or in Madrid, Spain, except for required travel on Company’s business to an extent substantially consistent with Professional’s customary business travel obligations.

 

 

ARTICLE II

DUTIES OF THE CONTRACTOR

 

    2.1    Duties. The Contractor will be hired and the Professional assigned the title of Executive Vice-President, with responsibilities and authority as are customarily performed by such an officer and additional duties as may from time to time be assigned to Contractor by the Board of Directors of the Company. Contractor will continue to have for the term of this Agreement all authority and responsibility that Professional had at the time this Agreement commenced.

 

    2.2    Extent of Duties. Contractor shall devote sufficient time, attention and energies to the business of the Company in order to meet the objectives.

    2.3Disclosure of Information.

        2.3.1    The Contractor recognizes and acknowledges that the information, processes, developments, experimental work, work in progress, business, list of the Company’s customers and any other trade secret or other secret or confidential information relating to Company’s business as they may exist from time to time are valuable, special and unique assets of Company’s business. Therefore, Contractor agrees that:

	 
	 	2	 
	

	 

    

                (i)    Contractor will hold in strictest confidence and not disclose, reproduce, publish or use in any manner, whether during or subsequent to his employment, without the express authorization of the Board of Directors of the Company, any information, process, development or experimental work, work in process, business, customer lists, trade secret or any other secret or confidential matter relating to any aspect of the Company’s business, except as such disclosure or use may be required in connection with Contractor’s work for the Company.

                    (ii)    Upon request or at the time of leaving the employ of the Company, the Contractor will deliver to the Company, and not keep or deliver to anyone else, any and all notes, memoranda, documents and, in general, any and all material relating to the Company’s business.

        2.3.2    In the event of a breach or threatened breach by the Contractor of the provisions of this section 2.3, the Company shall be entitled to an injunction (i) restraining the Contractor from disclosing, in whole or in part, any information as described above or from rendering any services to any person, firm, corporation, association or other entity to whom such information, in whole or in part, has been disclosed or is threatened to be disclosed; and/or (ii) requiring that Contractor deliver to Company all information, documents, notes, memoranda and any and all other material as described above upon Contractor’s leave of the employ of the Company. 

 

ARTICLE III

COMPENSATION OF THE CONTRACTOR

 

    3.1    Fixed Fee. As compensation for services rendered under this Agreement, the Contractor shall receive an initial fixed fee of EUR 120.000 per annum to be paid in twelve equal payments accrued at the end of each calendar month. The amount will be incremented by adding on the Spanish VAT (IVA) required by law. This fixed fee shall be increased annually for cost-of-living at the applicable rate for the year in question at the beginning of each calendar year, plus any other increase which may be determined from time to time at the discretion of the Company’s Board of Directors. If increased, this fixed fee shall not be decreased thereafter during the term of this Agreement without the consent of the Contractor. The fixed fee provided in this subsection shall in no way be deemed exclusive and shall not prevent Contractor from participating in any other compensation or benefit plan of the Company. 

	  
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    3.2    Variable fee. The Contractor shall receive an additional variable fee equal to the same amount of the fixed fee, as defined in Section 3.1 above, at the time the variable is to be paid. The variable fee shall be accrued at the end of each fiscal year of the Company and charged through an invoice by the Contractor. In case of partial achievement of the set objectives the Company will pay a proportional variable fee. The variable fee is based on the achievement of objectives to be set with the Company. These objectives will be negotiated yearly and are subject to formal approval of the Board of Directors of the Company.

 

    3.3    Long Term Incentive. The Contractor shall participate in all future long term incentive plans of the Company (shares, stock options, stock bonuses, convertible bonds, etc.) in similar conditions to any other member of the executive team with a similar level of responsibility. Long term incentives are subject to formal approval of the Board of Directors of the Company. 

Additional shares, stock bonuses, stock options or other forms of compensation shall be determined by the Board of Directors from time to time.

 

    3.4    Other Benefits. Contractor and/or the Professional shall be entitled to participate in all of Company’s employee benefit plans including any retirement, pension, profit-sharing, stock options, insurance, hospital or other plans and benefits which now may be in effect or which may hereafter be adopted, it being understood that Contractor and/or the Professional shall have the same rights and privileges to participate in such plans and benefits as any other executive employee or contractor during the term of this Agreement. Participation in any employee benefit plans shall be in addition to the compensation provided in Section 3.1. 

 

Contractor shall be provided with a car by the Company on such lease terms to be determined by Company, provided that the monthly operating costs not exceed an amount of EUR 1.250. Contractor may elect to retain his personal car and collect this monthly amount of EUR 1.250 as an allowance. The car allowance shall be in addition to the compensation provided in Section 3.1. 

 

    3.5    Expenses. Contractor shall be entitled to prompt reimbursement for all reasonable expenses incurred by Contractor in the performance of his duties hereunder. Company shall advance reasonable estimates of such expenses upon request of the Contractor. Contractor shall not incur an unreasonable accumulation of expenses per annum as determined by the Company’s Board of Directors. In addition, the Contractor will receive an expense allowance of EUR 250 per month to cover payments smaller than EUR 25,00 each such as for example, but not limited to, parking fees, toll, train and bus tickets, taxi, food and beverages, internet access, telephone costs, copies, stamps, etc., which small expenses may not be charged to the Company. The expense allowance shall be in addition to the compensation provided in Section 3.1

 

	 
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    3.6    Insurance and Liability. The Company will assume all the legal responsibilities and costs of the Contractor and the Professional being part of, directly or indirectly, related to their company roles. The Company will bear the cost of an insurance policy to cover this risk.

 

    3.7    Conversion of Debt into Common Stock. The Contractor has the right to convert debt, which can consist of for example, but not limited to, accrued and unpaid fixed and variable fees, car and expense allowances, stock appreciation rights, etc., into free trading Common Stock of the Company at a stock price equal to 50% of the actual stock price on the date of exercising and at a dollar/euro exchange rate as per the date of exercising. The Company will bear the taxes, costs or expenses which arise on the issuance and transfer of the shares to the Contractor.

 

ARTICLE IV

TERMINATION OF AGREEMENT

 

    4.1    Termination. The Contractor’s employment hereunder may be terminated without any breach of this Agreement only under the following circumstances:

 

        4.1.1    By Contractor. Upon the occurrence of any of the following events, this Agreement may be terminated by the Contractor by written notice to Company:

 

                    (i)       the sale by Company of substantially all of its assets;

                    (ii)      the sale, exchange or other disposition, in one transaction or a series of related transactions, of at least 40% percent of the

                                                                              outstanding voting shares of Company;

                    (iii)     a decision by Company to terminate its business and liquidate its assets;

                    (iv)     the merger or consolidation of Company with another entity or an agreement to such a merger or consolidation or any other type of Reorganization;

                    (v)    Company makes a general assignment for the benefit of creditors, files a voluntary bankruptcy petition, files a petition or answer seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any law, there shall have been filed any petition or application for the involuntary bankruptcy of Company, or other similar proceeding, in which an order for relief is entered or which remains not dismissed for a period of thirty days or more, or Company seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of Company or any material party of its assets; or 

	 
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                    (vi)       there are material changes in Contractor’s duties and responsibilities without his written consent.

 

                    (vii)   There is a change in shareholder control in the Company

    4.1.2    Death. This Agreement shall terminate upon the death of the Professional.

 

    4.1.3    Disability. This Agreement shall not terminate upon the temporary disability of the Professional, but the Company may terminate this Agreement upon the permanent disability of the Professional. Professional shall be considered permanently disabled if: (i) he is disabled as defined in a disability insurance policy purchased by or for the benefit of the Contractor; or (ii) if no such policy is in effect, he is incapacitated to such an extent due to a medically determinable physical or mental condition that he is unable to perform substantially all of his duties for 9 consecutive months for Company that he performed prior to such incapacitation.

 

    4.1.4    Cause. The Company may terminate the Contractor’s employment hereunder for Cause. For purposes of this Agreement, the Company shall have "Cause" to terminate the Contractor’s employment hereunder upon the following: 

 

             (i)    the willful and continued failure by the Contractor substantially to perform his duties hereunder (other than any such failure resulting from the Contractor’s incapacity due to physical or mental illness), after demand for substantial performance is delivered by the Company that specifically identifies the manner in which the Company believes the Contractor has not substantially performed his duties; or

 

              (ii)    the willful engaging by the Contractor in misconduct which is injurious to the Company; or

 

                              (iii)    the willful violation by the Contractor of the provisions of this Agreement. For purposes of this paragraph, no act, or failure to act, on the part of the Contractor shall be considered "willful" unless done, or omitted to be done, not in good faith and without reasonable belief by him that his action or omission was in the best interest of the Company.

	 
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Notwithstanding the foregoing, the Contractor shall not be deemed to have been terminated for Cause without (i) reasonable notice to the Contractor setting forth the reasons for the Company’s intention to terminate for Cause and granting Contractor 90 days to cure or remedy (if possible) the reasons for termination; (ii) an opportunity for the Contractor, together with his counsel, to be heard before the Board, and (iii) delivery to the Contractor of a Notice of Termination as defined in section 4.2 hereof from the Board finding that in the good faith opinion of the Board the Contractor was guilty of conduct set forth above in clause (i), (ii) or (iii) of the preceding paragraph, subsection 4.1.4, and was unable to cure or remedy the reasons for termination, and specifying the particulars thereof in detail.

 

    4.2    Notice of Termination. Any termination of the Contractor’s employment by the Company or by the Contractor (other than termination pursuant to subsection 4.1.2 above) shall be communicated with 90 days written Notice of Termination to the other party. For purposes of this Agreement, a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated. The termination notice must be delivered by certified Post or Messenger service such that proof of delivery of notice is available.

 

    4.3    Term "Date of Termination". "Date of Termination" shall mean (i) if the Contractor’s employment is terminated by death of the Professional, the date of his death; and (ii) if the Contractor’s employment is terminated for any other reason, the date on which a Notice of Termination is received by Company or Contractor. The Contractor will have 90 days to facilitate the transition process as per the notice period in section 4.2 above. Contractor may agree in writing with Company a shorter period of time.

 

    4.4    Payment of Salary/Severance Pay Following Termination.

 

        4.4.1    In the event of temporary or permanent disability of the Professional as described in subsection 4.1.3 hereof, Contractor shall be entitled to receive all compensation payable up to the Date of Termination notwithstanding the temporary or permanent disability of the Professional; any such payment, however, shall be reduced by disability insurance benefits, if any, paid to Contractor under policies (other than group policies) for which Company pays all premiums and Contractor is the beneficiary.

 

        4.4.2    Following the termination of this Agreement by the Company for Cause as provided in subsection 4.1.4 hereof, the Contractor shall be entitled only to compensation through to the Date of Termination.

 

	 
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        4.4.3    Following the termination of this Agreement by Company for any reason other than Cause or permanent disability, or termination of this agreement by Contractor for any cause listed in subsection 4.1.1 above, then Company shall pay Contractor a lump sum severance payment equal to twice the Contractor’s fixed fee per annum at the Date of Termination as detailed in Section 3.1. This amount shall be paid within 5 business days of the date the Notice of Termination is delivered to Contractor. 

 

        4.4.4    Irrespective of the reason for termination of this Agreement, the Contractor will continue to be entitled to any stock, stock options, stock appreciation rights or other compensation already awarded to the Contractor before reception of the Notice of Termination. The Contractor will have 365 days as from the Date of Termination to exercise all his rights, such as, but not limited to, stock option rights, stock appreciation rights, right to convert debt into Common Stock of the Company, as described in Section 3.7.

 

    4.5    Remedies. Any termination of this Agreement shall not prejudice any other remedy to which the Company or Contractor may be entitled, either at law, equity, or under this Agreement.

 

ARTICLE V

INDEMNIFICATION

 

    5.1    Indemnification. To the fullest extent permitted by applicable law, Company agrees to indemnify, defend and hold Contractor harmless from any and all claims, actions, costs, expenses, damages and liabilities, including, without limitation, reasonable attorney’s fees, hereafter or heretofore arising out of or in connection with activities of Company or its Contractors, including other agents in connection with and within the scope of this Agreement or by reason of the fact that he is or was a director or officer of Company or any affiliate of Company. To the fullest extent permitted by applicable law, Company shall advance to Contractor expenses of defending any such action, claim or proceeding. However, Company shall not indemnify Contractor or defend Contractor against, or hold him harmless from any claims, damages, expenses or liabilities, including attorneys’ fees, resulting from the gross negligence or willful misconduct of Contractor. The duty to indemnify shall survive the expiration or early termination of this Agreement as to any claims based on facts or conditions which occurred or are alleged to have occurred prior to expiration or termination.

 

ARTICLE VI

GENERAL PROVISIONS

    6.1    Governing Law. This Agreement shall be governed by and construed in accordance with Spanish law. The jurisdiction of the Courts of Madrid, Spain is applicable on this Agreement.

	 
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    6.2    Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be submitted to and settled by arbitration in Madrid, Spain in accordance with the rules then existing of the Spanish Arbitration Association and judgment upon the award may be entered in any court having jurisdiction thereof. The prevailing party shall be entitled to the payment of their arbitration costs, including their attorneys’ fees.

    6.3    Entire Agreement. This Agreement supersedes any and all other Agreements, whether oral or in writing, between the parties with respect to the employment of the Contractor by the Company.

    6.4    Successors and Assigns. This Agreement, all terms and conditions hereunder, and all remedies arising here from, shall inure to the benefit of and be binding upon Company, any successor in interest to all or substantially all of the business and/or assets of Company, and the heirs, administrators, successors and assigns of Contractor. Except as provided in the preceding sentence, the rights and obligations of the parties hereto may not be assigned or transferred by either party without the prior written consent of the other party.

    6.5    Notices. For purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed postage prepaid, addressed as follows:

If to Company:            ITS Networks, Inc.

                      Edif. Marina Marbella

                                                              Severo Ochoa 28, 9th floor

                                                              E - 29600 Marbella (Malaga)

If to Contractor:       Shareworks Espa3a, S.L.

                                                              Palmeras del Golf M-PB-2

                                                              C/Helsinki s/n, Urb. Torrequebrada

                                                              E - 29630 Benalmadena-Costa (Malaga)

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

    6.6    Severability. If any provision of this Agreement is prohibited by or is unlawful or unenforceable under any applicable law of any jurisdiction as to such jurisdiction, such provision shall be ineffective to the extent of such prohibition without invalidating the remaining provisions hereof.

    6.7    Section Headings. The section headings used in this Agreement are for convenience only and shall not affect the construction of any terms of this Agreement.

	 
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    6.8    Survival of Obligations. Termination of this Agreement for any reason shall not relieve Company or Contractor of any obligation accruing or arising prior to such termination.

    6.9    Amendments. This Agreement may be amended only by written agreement of both Company and Contractor.

    6.10    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute only one legal instrument. This Agreement shall become effective when copies hereof, when taken together, shall bear the original signatures of both parties hereto. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart.

    6.11    Fees and Costs. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which that party may be entitled.

 

AND IN THE WITNESS WHEREOF, the parties, having read this Agreement, ratify and sign the same on all pages and in duplicate copies, each one being of equal power, at the place and on the date indicated on the first page of this document.

	 	 	 	 
	/s/ 	 	 	/s/ 
	

	 	 	

	ITS Networks, Inc.
Represented by Gustavo Gomez Sanchez	 	 	Shareworks Espa3a, S.L.
Represented by Walter Herman Cornelis de Haas

 

 

	 
	 	10Filed by Automated Filing Services Inc. (604) 609-0244 - Argentex Mining Corp. - Exhibit 10.1

  Exhibit 10.1

AGREEMENT Between 

 ARGENTEX MINING CORPORATION 

  And 

  CONNORS ARGENTINA S.A. for: 

 DIAMOND CORE DRILLING 

  (Surface) 

at: 

 PINGUINO,

  SANTA CRUZ, PROVINCE, 

  ARGENTINA 

January 19, 2005 

 MEMORANDUM OF AGREEMENT made this 20th 

  day of December, 2004.

	BETWEEN: 	Argentex Mining Corporation., 

        Suite 2000- West Hastings Street, 

        Vancouver B.C., 

        V6E 3X2, 

        Canada

      (hereinafter referred to as the “COMPANY”) 

	 	 
	AND: 	CONNORS ARGENTINA S.A., 

        Carril Rodriguez Pena #3360, 

        Coquimbito-Maipu, 

        Ciudad Mendoza 5515, 

        Provincia de Mendoza, 

        Argentina 

       (hereinafter referred to as the “CONTRACTOR”) 

The CONTRACTOR agrees to perform certain diamond drilling and
  related services on the lands of the COMPANY situated near Tres Cerros, Santa
  Cruz Province, Argentina and known as the Pinquino project on the following
  terms and conditions. 

 SPECIFICATIONS: 

 The CONTRACTOR agrees to sink by piping or to bore by diamond
  drilling three thousand (3,000) linear meters in approximately fifteen (15)
  holes with a maximum length of three hundred (300) linear meters at angles from
  minus 90 to minus 45. Average hole length will be approximately two hundred
  (200) meters.

 The COMPANY guarantees to the CONTRACTOR a minimum meterage
  of two thousand (2,000) linear meters. 

 It is agreed that the core from the holes shall be approximately
  61.00 and/or 47.60 millimeters in diameter known as HQ-3 and NQ, respectively,
  in the trade, and that said core shall be kept in boxes provided by the CONTRACTOR.

 COMMENCEMENT AND EXECUTION OF WORK: 

 Mobilization of the equipment shall commence approximately
  late January, 2005, or at a mutually agreeable date.

 Drilling shall commence immediately thereafter, or at a mutually
  agreeable date. 

 The COMPANY agrees to provide thirty (30) days notice prior
  to Mobilization. 

 2

 PRICES:

	A) 	Mobilization 
	 	 
	 	The CONTRACTOR will marshal the crew and all required
        equipment to the site of the first hole and made ready to drill for a
        lump sum of $5000.00. Should the CONTRACTOR encounter delays during
        the mobilization due to access problems on the property it shall be agreed
        that such delays will be chargeable at “FIELD COST” rates.

       Transportation costs of the drill crew from home domicile
        to the drill area will be for the CONTRACTOR’s account. 

       Mobile equipment required for off-loading the drill
        equipment at the staging area and required for the transport of the drill
        equipment for the duration of the drilling will be provided by the CONTRACTOR
        at no cost to the COMPANY. 

	 	 
	B) 	Demobilization 

       Time spent tearing down the drilling equipment and moving
        from the completion of drilling on the last hole to the CONTRACTOR’s
        warehouse will be charged as a lump sum of $5000.00. Should the CONTRACTOR
        encounter delays during the demobilization due to access problems on the
        property it shall be agreed that such delays will be chargeable at “FIELD
        COST” rates. 

       Mobile equipment required for loading the drill equipment
        at the staging area will be provided by the CONTRACTOR at no cost to the
        COMPANY. 

	 	 
	C) 	Drilling in Bedrock 

       For coring in bedrock at angles from minus 90 to minus
        45 degrees. 

	   	Core size	 	 NQ  	 	 HQ-3  	 
	 	 Depth interval  	 	  	 	  	 
	 	  	 	 	 	 	 
	 	 0  to  150  m. 	 $ 	  66.20  	 $ 	  68.20  	 
	 	 150  to 300 m.  	 $ 	  68.30  	 $ 	  70.30  	 

	D) 	Penetration of Overburden and Setting Casing - Price per Meter

      For piping and/or drilling in overburden at angles from minus 90 to minus
        45 degrees. 

	 	 Casing Size  	 	 NW  	 	 HW  	 
	 	 Depth interval  	 	  	 	  	 
	 	0  to  10 m.  	$	77.30 	$	 79.70 	 

3

 

	 	If the depth of overburden exceeds ten (10) meters,
        then the price for penetrating overburden will be at “FIELD COST”
        rates or the meterage rate, at the CONTRACTOR’s option for that
        portion of the overburden in excess of ten (10) meters . 

       Where overburden is being drilled at meterage rates,
        setting casing, the cost of casing shoes and normal wear and tear on casing
        will be for the CONTRACTOR’s account.

       Where overburden is being drilled at “FIELD COST”
        rates, placing and pulling casing and the cost of casing shoes will be
        charged to the COMPANY. 

	 	 
	E)	Drilling Fluids and Additives 

      Drilling prices include the cost of drilling mud, drilling
        fluid additives used in the course of normal drilling.

       Lost circulation and hole stabilization products and
        other materials such as, but not limited to heavy mixes of bentonite gel,
        Quik-Seal, rod grease and other materials required for maintaining or
        improving return circulation, conditioning the hole or safeguarding the
        in-hole tools shall be chargeable at the “FIELD COST” rates.
      

	 	 
	F) 	Diamond Tool Costs 

      The cost of diamond bits and reaming shells consumed
        during the course of normal drilling will be for the CONTRACTOR’s
        account. 

	 	 
	G) 	Cementing, Reaming, Hole Conditioning 

        It is agreed that if a hole requires advancing
        or reaming of casing, wedging, conditioning, reaming of drill rods, drilling
        or reaming of cave, hole size reducing, or other such measures in order
        for drilling to proceed, the COMPANY will pay for such activities at “FIELD
        COST” rates. 

       Casing, drill rods, down-hole tools, or other materials
        left in the hole at the request of the COMPANY, lost in the hole, or damaged
        upon recovery will be charged at “FIELD COST” rates.

       In cases where holes are cemented, the time spent preparing
        cement and placing cement, waiting for cement to properly harden, and
        drilling out the cement will be chargeable at “FIELD COST”
        rates. 

4

	H) 	Field Cost 

       Any reference to “FIELD COST” in this Agreement
        shall be interpreted as follows: 

      i) Man-hourly rates 

       All labour provided by the CONTRACTOR while operating
        at “FIELD COST” will be at an all-inclusive rate of $30.00
        per man hour.

       A full-time supervisor’s labour shall not be chargeable
        unless he is performing “FIELD COST” functions. 

       The labour of extra crew above the regular three (3)
        man drill crew will not be chargeable unless they are performing “FIELD
        COST” functions. 

      ii) Drill rig hourly rate 

       Drill rig time when operating at “FIELD COST”
        will be charged at the rate of $90.00 per rig-hour including fuel,
        rig lubricants, and three (3) man crew.

       iii) Extra Equipment: 

       The CONTRACTOR agrees to provide extra equipment as
        follows: 

      a) a front end loader @ $40.00 per hour including
        operator 

      iv) Materials Consumed and Services Provided
        

       When drilling is proceeding at “FIELD COST”
        rates, all materials, supplies or services provided by the CONTRACTOR
        shall be chargeable at the CONTRACTOR’s cost plus transportation,
        sales taxes, and a nominal 15% for accounting and overhead. 

       Drilling tools or drill steel lost in the hole or damaged
        beyond further use as a result of ground conditions will be chargeable
        to the COMPANY at the CONTRACTOR’s cost with no markup applied

	 	 
	I)	Moves 

       It is agreed that the COMPANY will pay at “FIELD
        COST” rates for all moving between holes in excess of four (4) rig-hours
        per move. Moving time after the expiry of said rig-hours shall be chargeable
        at “FIELD COST” rates, for both crew and equipment time.

5

	 	Notwithstanding any free time allowed on any move,
        if the CONTRACTOR is required to move back onto a previously drilled hole
        for any reason, the COMPANY will pay at “FIELD COST” rates
        for all moving time to and cleaning out the old hole. All moving time
        from a hole where there has been less than fifty (50) meters of core drilling
        in that hole will be charged at “FIELD COST” rates. 

       Moving shall be interpreted to include (but not limited
        to) tearing down, dismantling machinery, moving equipment, installing
        water lines, securing timber, transportation, site preparation, time spent
        waiting for daylight and setting up. 

       Drilling of anchors when required will be chargeable
        at “FIELD COST” rates as a separate item.

	 	 
	J) 	Drill Sites and Set-Ups 

       The COMPANY will provide drill sites, construct drill
        pads or platforms at no cost to the CONTRACTOR. 

	 	 
	K) 	Walking or Traveling Time 

       The COMPANY agrees to pay for all walking and/or travelling
        time from the accommodation location to the drill area and return in excess
        of two (2) hours per man per day at the rate of $30.00 per man-hour.
      

	 	 
	L) 	Water Supply 

       The CONTRACTOR agrees to supply and install water lines
        and pumps from an adequate source provided by the COMPANY .

       If a water truck or trucks are required, the CONTRACTOR
        shall provide suitable units to haul water from a COMPANY-supplied source
        to the drill site and shall be chargeable at a rate of $ 220.00 per
        day per truck including operators.

       Delays due to source of supply problems from a COMPANY-supplied
        source will be chargeable at “FIELD COST” rates. 

       The COMPANY shall pay for any water that must be purchased.
      

	 	 
	M) 	Delays 

       It is agreed that at the same time as the COMPANY notifies
        the CONTRACTOR to cease drilling on a hole, the COMPANY shall inform the
        CONTRACTOR of the site of the next hole to be drilled. Should the COMPANY
        fail to locate sites or for any cause for which it is responsible for
        the delay of the operation of the drill, the COMPANY agrees to pay the
        CONTRACTOR at the “Standby Rate” for the period that the operation
        of the drill has been delayed by such failure. 

6

	 	It is agreed that when the operation, moving, mobilization
        or demobilization of the drill rig or ancillary equipment is delayed because
        of weather, terrain difficulties or for other reasons beyond the control
        of the CONTRACTOR , such delays shall be chargeable to the COMPANY to
        a maximum of eight (8) hours per shift. 

	 	

	 	Time spent repairing or maintaining the CONTRACTOR’s
        equipment shall not be chargeable to the COMPANY. 

	 	

	N) 	Standby 

	 	

	 	Standby time is defined as that time during which
        the CONTRACTOR has been delayed in performing the work, due to the fault
        of the COMPANY.

	 	

	 	 In the event CONTRACTOR is delayed in performing
        any of its obligations under this Contract due to Act of God, CONTRACTOR
        shall promptly give notice to that effect to the COMPANY, so that the
        latter be informed of the extension of the term hereof, and no charge
        for Standby time shall be chargeable to the COMPANY. 

	 	

	 	 The Standby Rate will be $90.00 per rig hour.
        (three man crew and drill equipment) 

	 	

	 	 Any third party rentals or services provided by
        the CONTRACTOR for the benefit of the COMPANY shall be chargeable during
        standby periods. 

	 	

	O) 	Testing and Logging 

	 	

	 	Hole Surveying

	 	

	 	 The CONTRACTOR may supply equipment (depending upon
        availability) for the purposes of dip and/or azimuth testing in the holes.
        The following charges will apply according to the table: 

	  	 	 Sperry Sun		 	  Tropari		 	 Acid Test	 
	  	 	 	 	 	 	 	 	 	 
	  	 	 	 	 	 	 	 	 	 
	 Rental per Month  	 $ 	 2,500.00	 	 $ 	 600.00		 	n/c	 
	  	 	 	 	 	 	 	 	 	 
	  	 	 Cost per test		 	  		 	  	 
	 Depth interval  	 	  		 	  		 	  	 
	 0 to 150 m.  	 $ 	 70.00	 	 $ 	  70.00	 	 $ 	 65.00	 
	 150 to 300 m.  	 $ 	 80.00	 	 $ 	  80.00	 	 $ 	 75.00	 

No charge will be made for illegible tests.
 7

	 	Geophysical Logging 

	 	

	 	Geophysical hole logging equipment will be provided
        by the COMPANY. When the drill rig is required to stand by on a hole for
        the purposes of running geophysical logs, the time spent shall be chargeable
        at “FIELD COST” rates. 

	 	

	P) 	 Core Boxes 

	 	

	 	 The CONTRACTOR will supply wooden core boxes at
        no cost to the COMPANY. 

	 	

	 	 The CONTRACTOR will supply sufficient boxes and
        lids for three thousand (3,000) meters of core drilling upon the initial
        mobilization. Unless otherwise directed, the CONTRACTOR will supply one
        (1) lid for every box. Additional core boxes and lids required for an
        extension of drilling meterage will have freight costs added from the
        closest point of supply. 

	 	

	Q) 	Board and Lodging 

	 	

	 	 The COMPANY will provide a kitchen, cook and cookery,
        washroom facilities and a camp genset for the drill crew and the CONTRACTOR’s
        subcontractors at no cost to the CONTRACTOR for periods of mobilization,
        drilling and demobilization while based on the property.

	 	

	 	 The COMPANY shall provide sleeping quarters at no
        cost to the CONTRACTOR. Beds and linens will be provided by the CONTRACTOR
        at no cost to the COMPANY. 

	 	

	R) 	Handling of Drill Cuttings and Fluids
      

	 	

	 	 If the CONTRACTOR is required to haul, pump, or
        otherwise dispose of used drill fluids or cuttings at an approved disposal
        site, time and materials consumed in such activities will be chargeable
        at “FIELD COST” rates. 

	 	

	 	 If sumps for disposal of cuttings are required,
        the COMPANY shall construct these at no cost to the CONTRACTOR. 

	 	

	 	 In the event that it is not feasible to construct
        sumps, the CONTRACTOR shall take all reasonable precautions to prevent
        run-off or spillage of drill cuttings or used drill fluids into any water
        course. 

	 	

	S) 	 Hole Abandonment and Completion 

	 	

	 	 The CONTRACTOR agrees to cement off, plug or otherwise
        seal off completed holes as directed by the COMPANY and shall perform
        such work at “FIELD COST” rates. 

8

	 	Piezometers or other instrumentation
        that is required to be placed into a completed hole shall be provided
        by the COMPANY at no cost to the CONTRACTOR. Time spent by the CONTRACTOR
        to install such instrumentation shall be chargeable at “FIELD COST”
        rates. 

	 	

	T) 	 COMPANY to Provide 

	 	

	 	 Access 

	 	

	 	1) 
	 drill sites and access suitable for 4 X 4 pickups
        and wheeled skid mounted drill rigs 

	 	2) 
	access to water source   

	 	3) 
	rubber tired backhoe for the construction on recirculation
        sumps

	 	4) 
	all fuel normally consumed by the CONTRACTOR’S
        equipment

	 	
	

	 	 Permitting  

	 	
	

	 	1) 
	 all necessary land use, water use, camp, and work
        permits 

	 	
	

	 	Geological Control 

	 	
	

	 	1) 
	 instructions on dip and azimuth and confirmation
        of same prior to collaring the hole 

	 	2)
	 instructions on hole completion depth 

	 	
	

	 	 Unless otherwise specified herein, the
        COMPANY agrees to provide the above listed items in this Article (V) at
        no cost to the CONTRACTOR. 

	 	
	

	U) 	CONTRACTOR to Provide
        

	 	
	

	 	 Drill rigs 

	 	
	

	 	1) 
	 one wheeled skid mounted 25HH drill rig (or equivalent)
      

	 	
	

	 	  Drill Rods and Casing
        

	 	
	

	 	1) 
	 HQ and NQrods in sufficient quantity to reach depths
        contemplated (300 meters) 

	 	2)
	 HW and NW casing in sufficient quantities to reach
        bedrock (10 meters) 

	 	3) 
	HQ-3 core barrels

	 	4) 
	rod sloops as required 

	 	5) 
	one front end loader for drill rig moves 

	 	
	

	 	Water Supply 

	 	
	

	 	1) 
	500 meters of waterline

9

	 	2)
	 supply pumps

	 	3) 
	coil stove(s) for water line, if required 

	 	4) 
	water storage tanks 

	 	5) 
	water trucks if required

	 	
	

	 	Mud Mixing Equipment
        

	 	
	

	 	1) 
	one mud mixing tank and mixers

	 	2) 
	one mud tank 

	 	
	

	 	Diamond Tools
        

	 	
	

	 	 All necessary diamond products
        including bits, reamer shells, casing shoes and tricones.

	 	
	

	 	Other Equipment
        

	 	
	

	 	All necessary hand tools
        and spares deemed necessary for the work 

	 	
	

	 	Mobile Equipment
        

	 	
	

	 	1)
	 4 X 4 pickups as required for crew travel and rig
        servicing 

	 	2) 
	

	 	
	

	 	Communications
        

	 	
	

	 	1) 
	 satellite phone, rig-to-camp and hand-held radios
        as required 

	 	

	V) 	Crewing.
        

	 	

	 	 The CONTRACTOR will provide
        personnel to carry the work out on a twelve (12) hour, two (2) shift basis,
        seven (7) days per week.

	 	

	 	 Each drilling shift will
        be operated by one driller and one helper and one fifth man. The work
        will be supervised by a runner foreman. 

	 	

	 	 The CONTRACTOR may provide
        extra personnel for non-drilling activities such as site clearing, expediting,
        waterline maintenance, or loader operating and drill rig support.

	 	

	 	 The total number of CONTRACTOR
        personnel and that of his subcontractors is estimated at nine (9) persons
        for the scope of the program as follows: 

	 	

	 	Two drillers

        Two helpers

        One “fifth” men 

10

	 	Four water truck drivers 

	 	

	 	 The CONTRACTOR may at any time or from time to time
        change the crews in accordance with field breaks, duty tours, statutory
        requirements, or other circumstances requiring a crew movement.

	 	

	W) 	 First Aid and Survival

	 	

	 	 Each drill will be supplied with a complete First
        Aid kit which complies with the regulations of the Province having jurisdiction.
      

	 	

	 	 Where the conditions require, the CONTRACTOR will
        provide survival kits, emergency shelters and food supplies at each drill
        site. 

	 	

	 	The COMPANY agrees to provide medivac services in
        the event of emergency at no cost to the CONTRACTOR where medical services
        are not readily available or where the distances to hospitals or clinics
        preclude prompt medical care. 

	 	

	AA) 	 Removal of Drill Rig Wastes 

	 	

	 	 The CONTRACTOR shall collect and dispose of all
        drill rig wastes such as oily rags, lubricant containers and oily soils,
        etc. Where provincial regulations dictate that such wastes be disposed
        of in an approved waste disposal site, any disposal fees chargeable shall
        be reimbursed to the CONTRACTOR by the COMPANY. 

	 	

	AB) 	VAT 

	 	

	 	 Prices stated do not include VAT. This tax will
        be charged where applicable, and shown as a separate item on all invoices.
      

	 	

	AC) 	 Payments 

	 	

	 	 Invoices will be rendered twice monthly, covering
        half-monthly periods, and will be due and payable upon receipt. Unless
        otherwise indicated, all prices are in US dollars. Interest
        charges of 18% per annum will commence 21 days after the due date. 

	 	

	 	 The CONTRACTOR shall submit a Factura to the COMPANY
        for each approved invoice which shall be quoted in US dollars. Such facturas
        shall be payable by the COMPANY within 15 days of receipt. Payments may
        be made in Canada or Miami by mutual agreement. The CONTRACTOR warrants
        that all applicable Argentine taxes owed by the CONTRACTOR arising from
        the work will be paid, regardless of where payment of invoices is made.
      

	 	

	 	 If the COMPANY should dispute any item on an invoice,
        this shall not constitute cause to withhold payment for undisputed items.

11

	 	The CONTRACTOR shall prepare and submit to the COMPANY’s
        representative daily drilling reports showing the progress of the work.
        Such daily drilling reports shall form the basis for invoicing; such reports
        shall be subject to correction of errors or omissions by head office personnel
        to ensure invoices are prepared in accordance with this Agreement. 

	 	

	AD)	 The COMPANY agrees, upon signing this Agreement
        and prior to the commencement of the work, to provide assurances satisfactory
        to the CONTRACTOR that the COMPANY has sufficient financial resources
        to pay all invoices rendered in accordance with the Agreement. Such assurances
        may include the deposit of monies to be held by the CONTRACTOR and applied
        to the final invoice, establishment of trust accounts, or other such financial
        assurances agreed to by both parties. 

	 	

	 GENERAL 
	 	

	a) 	The CONTRACTOR shall pipe and drill on the site selected
        by the COMPANY’S representative and will deliver at the drill site
        only to such persons as the COMPANY may designate all cores and samples
        taken from the holes drilled. 

	 	

	b)	 The CONTRACTOR agrees that all information and data
        relating to the work obtained or collected by or coming to the attention
        of the CONTRACTOR, its officers, employees, agents or subcontractors shall
        be for the exclusive use and benefit of the COMPANY. The CONTRACTOR agrees
        that it shall not, and it shall use its reasonable best efforts to ensure
        that its employees, agents or subcontractors do not, divulge to anyone
        other than the COMPANY or its duly authorized representatives any information
        or data concerning the progress or results of the work, except as directed
        in writing by the COMPANY. 

	 	

	c)	 The CONTRACTOR’S drilling crews will follow
        good drilling practices and shall use due care and diligence as shall
        enable them to recover such a percentage of core as the nature of the
        ground and the drilling tools being employed shall. All cores shall be
        become the possession of the COMPANY at the drill site. If the COMPANY
        requests that the core be moved by CONTRACTOR personnel or in CONTRACTOR’S
        vehicles, loss or damage of the core shall be at the COMPANY’S risk.
        

	 	

	 	

	d)	 The CONTRACTOR shall be responsible for, and will
        pay promptly all costs and charges incurred by itself for labour, machinery,
        tools, and supplies used in completing the work herein so that no lien
        or other such charges relative to the CONTRACTOR may be registered against
        the COMPANY or the property. The CONTRACTOR shall be responsible for the
        payment of assessments for Workers’ Compensation, Holiday Pay, Health
        and Medical premiums, Pension, Unemployment Insurance, Sales Tax, or other
        such applicable charges relative to its own labour and supplies purchased.
      

12

	e) 	The CONTRACTOR shall at all times enforce strict
        discipline and maintain good order among its employees and shall not retain
        on the project any person unfit for the work assigned to him. Any employee
        who is objectionable or unsatisfactory to the COMPANY shall be removed
        from the project and replaced forthwith by an employee acceptable to the
        COMPANY. 

	 	

	f) 	 The CONTRACTOR shall keep the camp and drill sites
        free from accumulation of waste and rubbish, and at the completion of
        the work shall leave the camp and drill sites in a clean condition acceptable
        to the COMPANY. 

	 	

	g) 	 The Contractor does not guarantee the direction
        of the hole beyond the collar. 

	 	

	h)	 Upon completion of the work herein contracted to
        be performed the CONTRACTOR shall have the right to remove within a reasonable
        period of time all temporary buildings and other fixtures including trade
        fixtures, machinery, equipment and appliances placed upon such lands by
        the CONTRACTOR. 

	 	

	i) 	 It is agreed that should cavities, caving materials,
        underground mine workings, loose materials, excessive water or gases,
        or tight hole conditions are encountered at a depth which would prevent
        successful drilling or render further drilling uneconomic in terms of
        the contract, the CONTRACTOR does not guarantee to drill or sink a hole
        to any specified depth, but will drill or sink as far as is practical
        under existing overburden and rock conditions and the COMPANY shall pay
        for every foot or meter sunk or drilled. 

	 	

	 	However, should the COMPANY request that further
        work be carried out in the hole beyond this point, then the CONTRACTOR
        shall continue work in the hole, but such work will proceed under “FIELD
        COST” rates with the COMPANY assuming all risk for in-hole tools
        and materials until normal coring conditions can be regained.

	 	

	j) 	 The CONTRACTOR agrees to carry the following insurance
        coverage at its sole expense: 

	-	Comprehensive General Liability 	equivalent of $Cdn1,000,000.00 	 
	 	 	 	 
	 -	Automobile Insurance, Liability

      for bodily injury and property

      damage	equivalent of $Cdn1,000,000.00 	 

	k) 	All costs resulting from the enforcement of government
        regulations or legislation concerning land use or pollution control measures
        which may apply to the work will be borne by the COMPANY. The COMPANY
        will indemnify and hold the CONTRACTOR harmless for any and all liability,
        claims, damages and expenses which may arise from events or activities
        in connection of the work which are 

13

	 	beyond the reasonable control of the CONTRACTOR,
        including but not limited to pollution of ground water, streams, lakes,
        or surrounding land by discharge of drilling fluids, drill cuttings, and
        wastes, except to the extent that such claims, liability, damages and
        expenses result from or are attributable to the negligent acts or omissions
        of the CONTRACTOR or its employees. 

	 	

	l) 	This Agreement shall be governed by and interpreted
        in accordance with the laws of Argentina.

	 	

	m) 	 Neither the CONTRACTOR nor the COMPANY shall be
        held responsible for any delays in carrying out the obligations of this
        Agreement resulting from Acts of God, strikes, fires, riots, casualties,
        inability to obtain labour or materials or other causes beyond the reasonable
        control of the CONTRACTOR or the COMPANY. 

	 	

	n) 	 Social benefits payable to employees in force at
        the time of signing of this Agreement are included in the quoted prices.
        All cost increases due to legislated benefit increases which arise after
        signing of this Agreement will be chargeable to the COMPANY, or shall
        be cause for renegotiation of rates herein. 

	 	

	o) 	 Delays due to source of supply problems where the
        CONTRACTOR is not required to supply the materials or services required
        under this Agreement will not be chargeable to the COMPANY. 

	 	

	p) 	 This Agreement will not be binding upon the COMPANY
        until approved in writing by an authorized officer thereof. 

	 	

	q) 	 This proposal is open for acceptance until January
        15th, 2005. The CONTRACTOR has the option to withdraw this proposal or
        modify its contents after this date. 

14

 Signed and Delivered

  in the presence of:

	  	  	 	ARGENTEX MINING CORPORATION	 
	 	 	 	 	 	 
	  	  	 	per:	/s/ KEN HICKS	 
	  	Witness 	 	 	  	 
	  	  	 	Title: 	VP Exploration	 
	  	  	 	 	 	 
	  	 	 	Date: 	January 19, 2005	 
	 	 	 	 	 	 
	  	 	 	CONNORS ARGENTINA
      S.A.	 
	  	 	 	 	 	 
	 	 	 	per: 	/s/ JAMIE
      HUTTON	 
	  	Witness 	 	 	  	 
	  	  	 	 	for           Alvaro
      Bermudez	 
	 	 	 	 	 	 
	  	 	 	Title:  	Legal Representative	 
	 	 	 	 	 	 
	  	 	 	Date:   	January 18,
      2005	 

 15

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