Document:

CC Filed by Filing Services Canada Inc. 403-717-3898

SERVICE AGREEMENT

THIS AGREEMENT is dated for reference the 14th September, 2005

BETWEEN:

MAG SILVER

CORPORATION

, having an office at Bentall Tower 5, Suite 328, 550 Burrard Street, Vancouver, BC, V6C 2B5

(the “Company”)

AND:

CONTACT FINANCIAL CORPORATION, having an office at Suite 410–744 West Hastings St., Vancouver, BC, V6M  1A5

(the “Service Provider”)

WHEREAS the Company and the Service Provider wish to enter into this Agreement regarding the provision of the Service Provider’s services to the Company,

THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows:

1.

SERVICES

1.1

The Company hereby retains the Service Provider upon the terms and conditions of this Agreement, and the Service Provider hereby accepts such retainer on such terms and conditions.

1.2

The Service Provider shall provide the Company with expertise and assistance in the areas generally described in Schedule “A” to this Agreement.  If requested by the Company, the Service Provider

shall be a member of the Company’s Strategic Advisory Board at the pleasure of the Company.  

1.3

The Service Provider shall take direction from and report to the Company’s

chairman

 or to such other person as the Company’s president may direct.  The Service Provider shall devote sufficient time and attention to the Company’s business as may be required to properly perform

its

 duties hereunder.

1.4

The Service Provider covenants that

it

 shall not do, or fail to do, anything which could be reasonably expected to damage the reputation of the Company, its affiliates or any of its directors, officers, employees, contractors or consultants.

1.5

The Service Provider will ensure that the substantive content of any and all public communications by the Service Provider in respect of the Company will not be released to the public until it has been reviewed and consented to by a senior officer of the Company, which consent must be expressed in writing.

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2.

TERM

2.1

The term of this Agreement shall be as stated in Schedule “A”.

3.

REMUNERATION AND EXPENSES

3.1

The Service Provider’s remuneration will be as specified in Schedule “A”.

3.2

Subject to the limitations expressed below with respect to prior authorization, the Company shall reimburse the Service Provider for all reasonable expenses incurred by

it

 in furtherance of the Company's business.  The Service Provider shall, to the greatest extent possible, submit statements and receipts for all expenses claimed.  The Service Provider acknowledges and agrees that the Company’s obligation to reimburse those expenses is subject to the following limitations: 

(a)

the Company will only reimburse the Service Provider for those expenses that the Company considers reasonable or to which the Company has granted prior written authorization;

(b)

the Company will not be responsible for, and the Service Provider will be responsible for and pay expenses associated with the provision of office space and general office support services (e.g. staff, utilities, office equipment) that may be required by the Service Provider in connection with rendering the services to the Company; and

(c)

the Company will not be responsible for, and the Service Provider  will be responsible for  and will pay all costs of conducting the Service Provider’s business, including but not limited to, the expense and responsibility for any applicable insurance or municipal, provincial or federal licenses, permits, taxes or assessments of any kind, and payment of all business and employment taxes including, but not limited to, income taxes, Canada Pension Plan and Employment Insurance Act contributions, and worker’s compensation premiums.

4.

CONFIDENTIAL INFORMATION

4.1

The Service Provider shall keep all Confidential Information in confidence and not use or allow others to use

or disclose

any Confidential Information except for Company’s benefit and, if the Service Provider is a corporation or other entity, the Service Provider shall use its best efforts to ensure that all of its employees,

 

agents

,

 directors and officers who become privy to the Confidential Information are bound by the terms of this section.  In this Agreement, “Confidential Information” means all data, processes, formulations, analysis, methodologies and other information which is designated by Company as confidential or which would be reasonably understood  to be confidential information based on the substance of the information and the circumstances under which it is conveyed, whether orally or in writing, except for any part of the Confidential Information which:

(a)

is or becomes publicly available other than as a result of a disclosure by

Company

;

(b)

is or becomes available to the Service Provider from a source (other than Company or its representatives) which, to the best of the Service Provider’s knowledge after due inquiry, is not prohibited from disclosing such information to the Service Provider by a legal, contractual or fiduciary obligation; or

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(c)

the Service Provider demonstrates was properly in the Service Provider’s possession or control at the time of disclosure of that Confidential Information to it by the Company or its representatives.

4.2

The Service Provider agrees that it shall not, before or after termination or expiry of this Agreement, remove any reports

,

 information, property, or any other material belonging to the Company, or any reproductions thereof, without the prior written permission of the Company’s

chairman

..

4.3

The Service Provider acknowledges and agrees that, without prejudice to any and all rights of either party to this Agreement, an injunction may be the only effective remedy to protect a breach of the provisions of this section 4.  This section 4 will survive the termination of this Agreement.

5.

TERMINATION OF AGREEMENT

5.1

This Agreement may be terminated by the Company, at the end of the initial 3 month Guaranteed Period, with 30 day’s advance written notice to the Service Provider with full payment of the final 30 days being issued immediately to the Service Provider upon notice of termination.

5.2

The Service Provider may terminate this Agreement upon 30 days’ notice to the Company. Upon such an event, the Company will issue full payment of the final 30 days within one week of notice of termination.

5.3

The Service Provider acknowledges and agrees that the Company may, at its option, terminate this Agreement immediately upon written notice to the Service Provider where:

(a)

the Service

Provider

 has committed a material breach of the provisions of this Agreement, if such breach has not been cured to the Company’s satisfaction within 5 days of the Service Provider being notified of such breach by the Company (For greater certainty and without limiting the foregoing, a breach by the Service Provider of any of Section 1.4, 1.5 or 7.1 will be deemed to be a material breach of this Agreement);

(b)

the Service Provider or any of its directors

 or

 officers

has been convicted of an indictable criminal offence; or

(c)

the bankruptcy

,

 insolvency of the Service Provider or if the Service Provider has a receiving order made against it, makes an assignment for the benefit of creditors or takes the benefit of any statute for the time being in force relating to bankrupt or insolvent debtors for the orderly payment of debts.

6.

RELATIONSHIP

6.1

The Service Provider is an independent contractor of the Company, and no party to this Agreement will make any representations or statements indicating or suggesting that any joint venture, partnership, or other such relationship exists between the Company and the Service Provider.  The Company and the Service Provider will have no authority to assume or create obligations binding upon the other and will not take any action which may have the effect of creating the appearance of having such authority.  

7.

COMPLIANCE WITH LAWS

AND REGULATORY POLICIES

7.1

The Service Provider shall comply with all applicable statutes, rules and regulations and the lawful requirements and directions of any governmental authority having jurisdiction with respect to the provision of 

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his services.

8.

MISCELLANEOUS

8.1

The provisions of the schedules attached to this Agreement form an integral part of this Agreement.

8.2

Any notice or other communication given under this Agreement shall be in writing and shall be deemed to have been given if personally delivered to a party hereto at its address appearing on the first page of this Agreement (or to such other address as one party provides to the other in a notice given according to this subsection).  All notices and other communications shall be deemed to have been given and received on the first business day following its delivery as aforesaid.

8.3

The provisions of sections 4 of this Agreement shall survive the expiry or earlier termination of this Agreement.

8.4

Each provision of this Agreement is severable.  If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, the illegality, invalidity or unenforceability of that provision will not affect:

(a)

the legality, validity or enforceability of the remaining provisions of this Agreement, or

(b)

the legality, validity or enforceability of that provision in any other jurisdiction

except that if:

(c)

on the reasonable construction of this Agreement as a whole, the applicability of the other provision presumes the validity and enforceability of the particular provision, the other provision will be deemed also to be invalid or unenforceable; and

(d)

as a result of the determination by a court of competent jurisdiction that any part of this Agreement is unenforceable or invalid and, as a result of this Section 8.4, the basic intentions of the parties in this Agreement are entirely frustrated, the parties hereto will use all reasonable efforts to amend, supplement or otherwise vary this Agreement to confirm their mutual intention in entering into this Agreement.

8.5

This Agreement may not be assigned by either party hereto without the prior written consent of the other.  This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.

8.6

The laws of British Columbia and the laws of Canada applicable therein shall exclusively govern this Agreement.

8.7

This Agreement represents the entire agreement between the parties hereto and their respective principals and supersedes all prior agreements and understandings, whether written or oral, between the parties concerning the Service Provider's provision of services to the Company.  This Agreement may not be amended or otherwise modified except by an instrument in writing signed by both parties. 

8.8

This Agreement may be executed in counterparts, each of which shall be deemed to be an original and both of which shall constitute one agreement.  This Agreement may be delivered by fax.

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IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first above written notwithstanding its actual date of execution.

MAG SILVER

CORP.

/s/ “Gordon Neal”

Per:

______________________________________

Gord Neal, Vice President

CONTACT FINANCIAL CORPORATION

/s/ “Kirk Gamley”

Per:

______________________________________

Kirk Gamley, President

Schedule A

Details of Retainer

The Service Provider shall provide the Company with

its

 expertise and assistance, on a part time basis, in the following areas:

Investor Relations (including company information dissemination to interested parties, inquiry responses, assistance with company events, assistance with AGMs, advertising, etc.)  In this regard, the Service Provider acknowledges and agrees that it is of principal importance to the Company that the Service Provider initiate contact with and introduce the Company to relevant industry analysts, institutional and retail investors throughout North America and Europe.

General Shareholder Relations (including responding to shareholder inquiries, proper disclosure, news release & update dissemination, assistance with other disclosure issues, etc.)

Investor Database Development (creation and maintenance of an investor & shareholder database to be used for full, proper and timely disclosure)

Corporate Consultation (including assistance with internal company matters, news release & reporting issues, possible finance issues, etc.)

The term of this Agreement will commence on September 1st, 2005 (the “Start Date”) and terminate on December 1st, 2005. This period shall be known as the “Guaranteed Period”. The Company will pay a monthly fee in advance of services provided of CAD 6,000 to the Service Provider (plus 7 % GST) commencing September 1st, 2005. At the end of the Guaranteed Period, the Service Provider and the Company mutually consent to extend the Agreement on a month to month basis, subject to the terms and conditions of the Agreement.CC Filed by Filing Services Canada Inc. 403-717-3898

FIELD SERVICES AGREEMENT

THIS FIELD SERVICES AGREEMENT ("Agreement") is made this 1st day of March, 2007, between Compañia Minera Cascabel S.A. de C.V. and its U.S. affiliate, IMDEX INC. (hereinafter collectively referred to as "CASCABEL") and; MAG Silver Corp., a British Columbia corporation and its Mexican affiliate, Minera Lagartos S. A. de C.V. (hereinafter collectively referred to as "MAG").

WITNESSETH

WHEREAS, MAG has submitted to CASCABEL a proposal for work ("Proposal"), attached as Schedule A, and from time to time may submit additional proposals for work which it wishes CASCABEL to perform; and

WHEREAS, CASCABEL represents to MAG that it has the facilities, equipment personnel, experience, and capability of performing the work described in the Proposal in the manner prescribed by this Agreement. 

THEREFORE, in consideration of the mutual promises set forth in this Agreement, CASCABEL, and MAG agree as follows:

1)

Work to be performed by CASCABEL:  CASCABEL agrees to perform the tasks and provide the professional services (collectively, the "Work") set forth in Schedule A, which may be expanded or extended from time to time and to work with MAG to create future proposals of work for additional programs.  CASCABEL will give consultation and advice to MAG during the performance of the Work and agrees to furnish all labor, supervision, materials, tools, equipment, and services needed to complete the Work.  CASCABEL may sub-contract certain equipment and additional personnel deemed necessary, only with advance written approval from the MAG.

2)

Right of First Refusal granted to MAG by CASCABEL for Silver Properties: As part of this agreement, CASCABEL, Dr. Peter Megaw, Dr. Tony Kuehn and Ing. Porfirio Padilla Lara agree to grant MAG the right of first refusal to examine all silver properties currently in CASCABEL’s control, or brought to CASCABEL or as may be known or offered to CASCABEL or its subsidiaries by others.  Where deemed appropriate by MAG and solely at MAG’S discretion, MAG may lease, option, purchase, joint venture or otherwise acquire an interest in such silver properties as may be known or offered by CASCABEL, or its subsidiaries, to MAG.  CASCABEL will inform MAG in writing of the availability of each project and MAG will have up to 60 days to make a decision to invest in, or lease the named property.  In the event that MAG decides not to invest in or lease the named property, or fails to inform CASCABEL of its decision regarding the property within 60 days of being informed by CASCABEL of its availability, CASCABEL shall be free to dispose of or make other arrangements on the property with others.

3)

Finders Fees:  In recognition of the work carried out by CASCABEL to introduce the properties envisaged in Para: 2 above, MAG agrees to pay to CASCABEL such Finders Fees on each new Property of Merit not already controlled by CASCABEL, introduced by CASCABEL, as may be reasonably negotiated between CASCABEL and MAG and as shall be approved by the TSX Venture Exchange, (The “Exchange”.)  Properties already owned or otherwise controlled by CASCABEL shall be negotiated in good faith between MAG and CASCABEL independent of any Finder’s Fee.

4)

CASCABEL’S Personnel:  CASCABEL shall at all times remain alert to MAG's interest and shall communicate to MAG's representative ideas, suggestions, literature, references and other information which in CASCABEL'S professional opinion may contribute to the success of MAG's mineral exploration and development efforts for services performed under this Agreement.

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5)

MAG'S Representative:  MAG hereby designates Daniel MacInnis or another person as may be appointed by the Board of MAG, in writing, as its representative(s) to consent, approve, and otherwise act on behalf of MAG in respect of material matters under this Agreement.

6)

Term of Agreement: The term of this Agreement shall be for 12 months from the effective date specified above unless sooner terminated by MAG.  MAG may terminate this Agreement at any time following one month after the effective date upon notice, and if MAG terminates before the completion of all Work, it shall make payment only for CASCABEL'S services rendered and costs incurred through the date of notice of termination.  This shall include costs due from CASCABEL to subcontractors contracted for the Work and approved by MAG.

7)

Time for Performance:  CASCABEL shall promptly commence to Work and conduct its Work with all due speed.  CASCABEL shall complete the Work under this Agreement by the termination date specified in Schedule A, unless time for completion is extended.  If CASCABEL is delayed in the execution of its Work by any cause for which MAG is responsible, or any cause which is beyond reasonable control of CASCABEL;  CASCABEL shall, upon written application to MAG at the time of such delay, be granted such reasonable extension of time as MAG shall deem equitable and just.  

8)

Compensation, Invoicing and Payment:  For services rendered, MAG shall pay CASCABEL as per the appended Estimate of Rates and Charges (Schedule B).  Such payments shall be for both office work and fieldwork and shall be based on rates in U.S. dollars.  Payments to IMDEX shall be made in US dollars directly to IMDEX.  Payments to Minera CASCABEL in Mexico may be made in Mexican Pesos based on exchange rate on day CASCABEL submits invoice.  This exchange rate shall be placed on all invoices.  

a)

MAG shall pay reasonable expenses incurred by CASCABEL while CASCABEL personnel are away from home base, performing services for MAG.  Such expenses shall include those incurred for food, travel and lodging.  MAG shall pay CASCABEL  $25.00 per day plus $.45/kilometer traveled in CASCABEL'S two-wheel drive vehicle, and $.50/kilometer traveled in CASCABEL'S four-wheel drive vehicle and monthly charges shall not exceed $1,500 per month per vehicle without prior approval.  Said mileage, or minimum day rates, shall constitute full payment to CASCABEL and CASCABEL shall pay all costs incurred to provide said vehicle including fuel, oil, and maintenance.  Some project areas may only be accessible by extremely rough roads, in which case CASCABEL may petition MAG for an excess tire wear charge of an amount to be determined between the parties. MAG shall also pay for costs incurred by CASCABEL in purchasing office supplies and publications required in the performance of CASCABEL'S service, but such items shall be owned by MAG.

b)

MAG shall pay CASCABEL'S costs incurred in the employment of persons, equipment rentals, and service contractors required in the performance of Work for MAG.  However, CASCABEL shall not employ such persons, rent such equipment, or contract such services without prior consent of MAG.

c)

MAG has provided CASCABEL with a minimum advance payment of US$15,000 (The "Advance") before Work commenced, to be used for salaries and expenses incurred by CASCABEL in performance of Work for MAG.  CASCABEL shall submit invoices and statements to MAG setting forth the number of days worked for MAG and the expenses incurred on MAG’s behalf, documented by Project, with appropriate receipts, incurred in connection with performing services for MAG during a given billing period. 

d)

The billing period under this Agreement shall be either: monthly, or when accumulated invoicable expenses equal 75% of the advance.   CASCABEL shall add an overhead fee as appropriate, to the amount of each invoice billed, in accordance with the schedule in Schedule B. MAG shall have right to demand reasonable verification of all items shown on CASCABEL'S invoices, including copies of original invoices and supporting 

Page 2 of 8

documentation, couriered to MAG’s offices at the address below on a monthly basis.  Subject to verifications, MAG shall pay invoices within 15 days of receiving them at Bentall Tower 5, Suite 328 - 550 Burrard Street, Vancouver, BC – V6C 2B5. Canada.  At termination of Agreement, final invoicing shall clear the Advance with any balance due being returned to MAG.  If a balance is owed to CASCABEL at the end of the Agreement, this shall be payable within 15 days of submission of final reports to MAG.   

e)

MAG is encouraged to arrange direct billing with all major service contractors including, but not limited to, drilling contractors, road and/or building contractors, analytical laboratories, and metallurgical laboratories.  Should they not, MAG shall, where requested in writing by CASCABEL, provide CASCABEL with advance payments of 100% of the amounts required for any approved service contractors required for performance of Work, and exceeding 15% of the Advance. These amounts shall be kept in a separate bank account and shall be used only for the intended purposes.  

f)

CASCABEL shall submit separate invoices for professional services and expenses incurred relative to specific property blocks as requested and defined by MAG.  MAG will inform CASCABEL of any changes in the property divisions in sufficient time as to prevent delay in payment of invoices by MAG.

9)

Co-operation and Coordination:  CASCABEL shall cooperate with MAG's personnel in performing the Work required by this Agreement and shall keep MAG advised of the current status of all Work and of estimated completion times.  CASCABEL shall cooperate and coordinate it’s Work with MAG's other contractors and incorporate these contractor's contributions into its Work as necessary.  Any disputes between contractors shall be decided by MAG. 

10)

Indemnification:  To the fullest extent permitted by Mexican Law, CASCABEL shall save harmless and indemnify MAG, its officers, employees, agents, and affiliated companies from any liability for injury or death, and any proceedings and costs in connection therewith, including reasonable attorney fees, arising out of, or resulting from the performance of the Work, including any acts and/or omissions, including passive or active negligence of CASCABEL or any subcontractors or anyone directly or indirectly employed by either of them.

11)

Independent Contractor:  CASCABEL shall employ and direct all persons performing any Work under this Agreement.  Those persons, including all employees, servants, agents, and subcontractors engaged by CASCABEL, shall be at all times subject to the control and discretion of CASCABEL and shall not be the employees of, or subject to the discretion or control of MAG in any way.  The parties intend that CASCABEL shall be at all times an independent contractor and nothing contained in this Agreement shall be construed as making CASCABEL or any of its employees or subcontractors, agents of MAG.  CASCABEL shall determine the manner and method in which Work shall be performed and shall conduct the Work in the name of CASCABEL.

12)

Insurance:  CASCABEL shall be wholly responsible for deciding on the level of coverage and type and method of insuring its own activities and personnel engaged on MAG’s behalf.  For the avoidance of doubt, MAG shall in no way be responsible for any of the activities of CASCABEL and its personnel, sub contractors and others working under the direction of CASCABEL on MAG’s projects.  Where CASCABEL carries insurance or receives indemnities from others for work on MAG’s behalf, CASCABEL shall ensure that MAG is clearly identified and indemnified in such insurance policies and indemnities where offered.

13)

Confidentiality:   CASCABEL shall hold confidential and not disclose to others, except as authorized by MAG, any data or information discovered or developed on MAG's assignment, the contents of CASCABEL'S reports and recommendations to MAG, and any information relating to the policies, organization, operation, or other activities of a technical or general nature of MAG which is disclosed by MAG, unless data or information become available to the 

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general public from a source other than CASCABEL.  This confidentially covenant does not apply to any information now in public domain, CASCABEL’S possession, or any new information, which may hereafter come into CASCABEL'S possession except as herein above provided.  This confidentiality covenant is to remain in effect for a period of 1 year after the termination of this Agreement.

14)

At the termination of this Agreement: CASCABEL shall return to MAG any of its proprietary data or information which is in writing or other tangible form that are in CASCABEL'S possession.

15)

Non-Competition:  CASCABEL shall not claim, option, purchase, or otherwise acquire any mineral concessions within, or within a distance of 2 km of the external boundary of, any of MAG’s holdings in the project area(s), unless MAG gives express written permission for CASCABEL to do so.  (See also the Right of First Refusal in Para: 2 above.) 

16)

No-Hire Clause:  MAG may not directly hire any CASCABEL employee involved in any manner in Work for a period of 1 year after expiration date of this Agreement, unless MAG pays CASCABEL 20% of said employee's annual salary.  MAG shall make a signed copy of employment contract between MAG and said CASCABEL employee available before said employee’s start-up date with MAG, and MAG shall pay CASCABEL 20% of said employee’s full annual salary at that same time.  Said annual salary shall be determined as: annual salary; 12 times the employee's monthly salary; 50 times the employee's weekly salary; or 300 times the employee's daily salary.  Excepted from this requirement shall be any individual hired through CASCABEL at MAG’s request.

17)

Notices:  All notices and other communications to be given under this Agreement, including invoices, reports, and payments, shall be made in writing and shall be deemed to have been made if mailed or hand delivered to:

CASCABEL

CIA. MINERA CASCABEL S.A. DE C.V.

Avenida 13 #100

Colonia Bugambilias

Hermosillo, Sonora CP 83140

Attention:  Ing. Porfirio Padilla Lara

IMDEX

International Mineral Development and Exploration Inc;

5800 N. Cmo Escalante

Tucson, AZ.  USA  85718  

Attention: Dr. Peter Megaw

MAG

 

MAG SILVER CORP.

Bentall Tower 5

     

Suite 328 - 550 Burrard Street

Vancouver B.C.

Canada  V6C 2B5

Attention:  Daniel MacInnis

18)

Compliance with Applicable Laws and Regulations and Agreements:  CASCABEL represents that it and all of its employees and subcontractors who will perform work required by Mexican Law to be performed by licensed personnel shall be so licensed.  In carrying out its obligations under this Agreement, CASCABEL shall comply with all applicable Mexican Federal, State, and Local, laws, rules and regulations, and with the provisions of all agreements between MAG and the owner of the surface estate of all MAG's mining or exploration properties.

Page 4 of 8

19)

Taxes: A 15% Ad Valorem Tax (IVA) is mandated by Mexican law and shall be added to the total of each billing.  MAG may recover some of this at year’s end by filing the proper documentation with the Mexican Treasury (Hacienda).  CASCABEL shall pay all other occupational, business, excise or other taxes of any kind levied or imposed on CASCABEL.  CASCABEL shall have full and exclusive responsibility for the payment of any and all taxes and contributions levied or assessed against CASCABEL for unemployment insurance, employee liquidation (severance), old age retirement benefits, pensions, and annuities now imposed or imposed hereafter by any Mexican Federal or State government which are measured by wages, salaries or other remuneration paid to persons employed by CASCABEL in connection with the Work.

20)

Late Payment Fee:  A fee of 1.5% per month shall be added for invoices unpaid over 30 days.  This fee shall be assessed on a monthly basis. 

21)

Assignments and Subcontracts:  This Agreement shall inure to and be binding on MAG and CASCABEL and their successors and assigns, and partners.  No assignment or delegation by CASCABEL shall relieve it of its obligations under this Agreement and CASCABEL may not assign or subcontract this Agreement without written consent from MAG.  MAG may assign its rights under this Agreement at any time to any affiliate.

22)

Governing Law:  This Agreement shall be governed by and construed under the Laws of the United States of Mexico in courts located in the State of Sonora.  If necessary to implement this clause and clause 8 of this Agreement, both parties will agree to do such things and carry out such acts as may be necessary to register a Spanish version of this agreement in Mexico.

23)

Business Relationship:  It is not the purpose or intent of this Agreement to create, and this Agreement shall never be construed as creating a joint venture, mining partnership, commercial partnership, or other mutual business relation.  CASCABEL understands and agrees that the consulting fees and Finders Fees paid shall be the total and complete compensation paid for all Work hereunder and that CASCABEL shall not be entitled to any other considerations such as commissions, royalties, or the like.

24)

Civil Unrest and Acts of God:  MAG understands that if, in the judgment of IMDEX/CASCABEL principals, riot, revolution or other political or social unrest renders entry into MAG’s work area hazardous, IMDEX/CASCABEL may choose to delay work until such time as entry may again be safely made. Furthermore, flood, earthquake, hurricane, tornado, or other Act of God may cause civil authorities to restrict access to a work area and IMDEX/CASCABEL may be forced to delay completion of work for such reasons.  In any such case, MAG shall be notified immediately so that alternatives can be discussed and/or the postponements provided by Mexican Law may be invoked in a timely manner.

25)

Kidnapping, Assault, or Robbery Insurance: In addition to the other charges and costs to be paid by MAG under this Agreement and its Schedules, MAG shall also pay a portion of CASCABEL’s insurance premium for kidnap, assault or robbery insurance, up to US$5,000 per year, which portion shall be equivalent to the portion of time spent on the Work under this agreement, when compared with the total time spent by CASCABEL on all of its clients in totality.  MAG shall have the right to inspect the appropriate time sheets to verify this calculation and also to examine and ensure that it is duly indemnified by any such Insurance put in place by CASCABEL for this purpose.

26)

Complete Agreement:  This Agreement and the Schedules annexed hereto constitute the entire understanding and agreement between the parties and supersedes all prior agreements, negotiations, and representations, whether written or oral, made prior to the execution of this Agreement.  This Agreement may be amended only by written instrument identified as an Amendment and signed by each party.

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IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first written above.

CIA. MINERA CASCABEL S.A. DE C.V.

By: /s/ “Ing. Porfirio Padilla Lara” 

     Ing. Porfirio Padilla Lara, Director General

INTERNATIONAL MINERAL DEVELOPMENT & EXPLORATION INC.

By: /s/  “Peter K.M. Megaw” 

     Dr. Peter K.M. Megaw, President

MAG SILVER CORP.

By: /s/ “Daniel MacInnis” 

   Mr. Daniel MacInnis, President

Page 6 of 8

Schedule A

“SCHEDULE A”

TO FIELD SERVICE AGREEMENT FOR MANAGEMENT OF EXPLORATIONS PROGRAMS IN MEXICO BY MINERA CASCABEL, S.A. de C.V.

Task and Professional Services to be provided by CASCABEL to MAG

1.

Supervise and support all Exploration Activities on MAG’S current and future projects in Mexico, as requested by MAG.  

Work to include, but not exclusively:

o

Provision of technical supervision for the drill program and ongoing exploration program.

o

Provision of a support crew and geologists on site, including related transportation and lodging, as directed by MAG, during all phases of any drill program aimed at targets identified by CASCABEL/IMDEX.

o

Provision of supervision and all coordination for the drill contractor and any other contractors and suppliers deemed by CASCABEL to be necessary to complete the project and duly approved by MAG in accordance with this agreement.

o

Direct and close control of all core samples, assays, geological information, etc to ensure that geological work can be correctly reported to the market in accordance with the policies of the TSX Venture Exchange.

o

Provide a QP to certify that the work has been carried out in accordance with the above policies and to confirm the veracity of any Press Releases regarding the same, subject to prior review and Approval by CASCABEL  or IMDEX’s representatives.

o

Coordinate surface access, legal agreements and other issues with the surface landowners and mineral rights holders as necessary.

o

Any other work that may be necessary to ensure the reasonable completion of the exploration program. 

o

Any other duties that may be mutually agreed between CASCABEL and MAG in writing.

2.

Identify, prospect and assist MAG in negotiation and Lease, Purchase or Joint Venture of other mineral properties in Mexico, concentrating on Gold and associated base metals.  Such work to include:

o

Examination of potential projects for validity and due diligence of owners claims for Project.

o

Examination and confirmation of land and mineral holdings

o

Generation of potential exploration targets, including the preparation of exploration budgets, time tables etc.

o

Assistance in the negotiation of suitable Lease, Purchase or Joint Venture agreements to allow MAG to explore the properties and develop them assuming exploration success.  (The final decision to acquire the properties is totally at the discretion of MAG, as contemplated in this agreement.)

o

Any other work that may be necessary to ensure the reasonable completion of the exploration program.

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Schedule B

“SCHEDULE B”

MINERA CASCABEL, S.A. DE C.V.

2007 SCHEDULE OF CHARGES

PROFESSIONAL SERVICES     DAILY  FEES

Principal: (Peter, Tony or Porfirio) $650.00*

Senior US Geologist-Project Coordinator (Keating...PhD) $600.00*

Senior US Geologist-Project Coordinator (Lyons, McGlasson) $550.00*

Senior Project Manager (Gallardo, Arredondo, Ramirez, Gamiño) 

$375.00

Project Manager (Castillo) 

 $325.00

Senior Geologist 

$300.00

Senior Geologist  

$275.00

Project Geologist (bilingual) 

 $250.00

Project Geologist  

$230.00

Geologist (bilingual) 

 $225.00

Geologist  

$200.00

Jr. Geologist/Tech. Assistant (bilingual) 

 $175.00

Jr. Geologist/Tech. Assistant  

$150.00

Administrative Support 

 $250.00

Environmental Permitting & Support Coordinator  

$200.00

Accountant 

 $230.00

Surveyor/Landman 

 $250.00

CAD/GIS Draftsman/Computer Geologist, I.T. 

 $240.00

Draftsman 

 $130.00   

Project Logistics Coordinator  

$175.00

Sampling crew supervisor 

$100.00

Helper/Driver   

$80.00

Secretary (bilingual) 

 $200.00

Secretary  

$125.00

Office Helper 

 $ 60.00

EXPENSES

Direct Field related Costs (i.e. lodging, meals etc.)  

AT COST plus 10% Admin Fee

Expendable supplies, direct Office costs etc( i.e. Phone calls)

AT COST plus 10% Admin Fee

Vehicle  (4WD)

$25/day plus

$0.50/Kilometer 

Vehicle  (2WD)

$25/day plus

$0.45/kilometer

* US based personnel and their expenses billed through IMDEX in US

Note: Daily Fees for Principals are NOT subject to any OVERHEAD CHARGE. 

All subcontract work billed through Minera Cascabel will be subject to a 10% overhead fee.

ALL MEXICO CHARGES SUBJECT TO 15% I.V.A.

All office support, data processing and drafting billed on 8-hour day basis.

ALL ABOVE COSTS INCLUDE ALL BOOKKEEPING, ACCOUNTING, AND TAX REQUIREMENTS.  ALL QUOTES IN US DOLLARS.  PESO EXPENSES CONVERTED TO DOLLARS AT RATE PREVAILING WHEN EXPENSES INCURRED. 

(All bank transfer fees and exchange costs will be billed as expense costs)

1.5% /month Finance Charge will be added to all invoices unpaid over 30 days

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