Document:

SEVERANCE, NON-COMPETE AND CONSULTING AGREEMENT

     THIS  SEVERANCE,  NON-COMPETE AND CONSULTING AGREEMENT (the "Agreement") is
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made  and  entered  into  as of July 1, 2004 (the "Effective Date") by and among
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Craig  Sloan (the "Consultant"), BMA Consulting, Inc. ("BMA") and The GSI Group,
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Inc.  (the  "Company").
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                                   WITNESSETH:

     WHEREAS,  prior to the date hereof, the Consultant has been employed as the
Chief  Executive Officer of the Company;

     WHEREAS, the Consultant and the Company have  each determined that it is in
the best interests of the Consultant and the Company  that  the Consultant's
employment with the Company terminate, effective July  1,  2004;

     WHEREAS,  the  Company  desires  to  engage the services of the Consultant,
acting  through  his  wholly  owned subsidiary BMA, to assist it with long-range
strategy,  strategic  decisions  regarding  the  Company  and  its  businesses,
decisions  regarding  the capital structure of the Company and other matters and
the  Consultant  desires  to  provide  such  consulting services to the Company;

     WHEREAS,  the  Consultant  has substantial and valuable knowledge regarding
the  Company  and  the  industry  in  which  it  conducts  business;  and

     WHEREAS,  the  Consultant  and the Company have reached agreement as to the
terms  and  conditions under which the Consultant will agree to remain available
to  the Company for the purposes described above notwithstanding the termination
of  his  employment  relationship  with  the  Company.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth  below  and  other  good  and  valuable  consideration,  the  receipt  and
sufficiency  of  which  are  hereby acknowledged, the parties do hereby agree as
follows:

1.     Termination  of  Employment. The Consultant's employment with the Company
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is  hereby  terminated,  effective  July  1, 2004. From and after such date, the
Consultant  is  and  will  be  considered  an  independent contractor under this
Agreement.  Nothing  in  this  Agreement  is  intended  to  create  any offer of
employment, partnership or joint venture. The Consultant shall have no authority
to  enter into any contracts or agreements on behalf of the Company. In no event
will the Consultant represent to any third party that he is an agent or employee
of  the  Company  or  connected with the Company in any way other than under the
terms  of  this Agreement. The Consultant will continue to serve on the Board of
Directors  of  the  Company  as  its  non-executive  Chairman.

2.     Agreement  Term. The initial term of the consulting arrangement set forth
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in  this  Agreement  shall  be  the  period beginning on the Effective Date and,
unless  sooner  terminated  as  provided herein, ending on October 31, 2007 (the
"Initial  Term").  Thereafter,  the  Agreement  shall  automatically  extend for
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additional  periods  of  one year each (an "Additional Term"), unless either the
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Consultant or the Company, as the case may be, provides notice of termination to
the  other party at least 90 days before the last day of the Initial Term or the
then  current  Additional Term, as the case may be. Following termination of the
consulting  arrangement  under  this  Agreement, the Consultant will continue to
comply  with  the requirements  of  Sections  6 and 7 of this Agreement.
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Throughout the Agreement, the  Initial  Term  and  the  Additional Terms are
collective referred to as the "Term."
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<PAGE>
3.     Scope  of  Services.  The  Consultant  agrees  to  provide  the following
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services  during  the  Term  of  this  Agreement:

(a)     During  the  Term,  the  Consultant  shall devote his time, energies and
talents  as  a senior advisor to the Company for the purpose of assisting in the
development  of  long- range strategy, strategic decisions regarding the Company
and its businesses, decisions regarding the capital structure of the Company and
other  matters  as  may  be reasonably requested by the Company (the "Consulting
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Services").  Additionally,  Consulting Services shall include direct interaction
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with  the Company's Board of Directors and/or various committees of the Board as
may be required from time to time. Consultant shall provide such services at the
direction  of  the  Chief  Executive  Officer  of  the  Company.

(b)     During  the  Term,  it  is understood by the parties that the Consultant
shall  work  primarily  in  the  Assumption,  Illinois  area  and  that  he will
frequently  be  required  to  travel  to  other  locations to perform Consulting
Services.  The  Company  will make available necessary resources at locations to
which  the  Consultant  is  required  to  travel.

(c)     During  the  Term,  the  Consultant  shall  devote  2/3  of  his time to
providing  the  Consulting  Services. For purposes of the foregoing, "2/3 of his
time" shall, over the course of the Term, equal approximately 1,200 man hours of
service annually, such time to be inclusive of time spent traveling on behalf of
the  Company.  The  Consultant  agrees  that  he  will  not undertake other time
commitments  that  could  materially  interfere  with his ability to provide the
Consulting  Services  pursuant  to  this  Agreement.

(d)     During  the  Term,  to  the  extent  not  inconsistent  with,  or  in
contravention  of,  the  provisions  of  this Agreement, the Consultant shall be
permitted  to provide consulting services to, or be employed by, other companies
or  employers.

4.  Compensation;  Severance.
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(a)     The Consultant (through BMA) shall receive compensation from the Company
as  follows  (the  "Consulting  Fees"):
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(i)     During  the Terms, the Consultant shall be paid fees on monthly basis in
the  amount  of FORTY TWO THOUSAND DOLLARS ($42,000.00) per month.  For purposes
of  this  Agreement,  a  proportionate  portion of such Consulting Fees shall be
deemed  to  be  earned  on  a  weekly basis throughout the Term. Throughout this
Agreement,  the  term  "Dollars"  shall  mean  U.S.  dollars.

(ii)     The Company shall pay and/or reimburse the Consultant for all customary
and  reasonable  travel  and other out-of-pocket expenses incurred in connection
with  the  performance  of  the  Consulting  Services.  Such  payment  and/or
reimbursement  shall  be  done  promptly  and  generally  in accordance with the
procedures  as  are  applicable  to  senior  executives  of  the  Company.
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<PAGE>

(b)     The  Consultant  is  not  entitled  to  paid  vacation,  paid  holidays,
participation  in  group  health insurance (except as provided in subsection (c)
below),  participation  in  any  retirement programs, premium or "overtime" pay,
workers'  compensation, severance payments (other than the severance payment set
forth  in  this  Agreement), or any other employment rights or benefits from the
Company.  The  Company  has  no  obligation  and  will  make  no withholdings or
deductions  from  compensation  for  any  federal  or state taxes or the Federal
Insurance  Contribution  Act  (FICA)  or  Federal  Unemployment Contribution Act
(FUTA). It will be the Consultant's responsibility to remit appropriate taxes to
the  proper  state  and  Federal,  as  well  as  any  other,  tax  authorities.

(c)     Beginning  on  the  Effective  Date  of  the Consultant's termination of
employment,  the  Consultant shall be entitled to continue to participate in the
Company's  welfare  benefit  plans (at the Consultant's cost and expense) to the
extent  and  for  the  period  permitted  by  COBRA.

(d)     The  Consultant  shall be paid a severance payment of $675,000 (equal to
18  months'  salary), to be paid in a lump sum. Such amount shall not be payable
unless  the  Initial  Term  is  completed  in  full; provided, however, that the
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Consultant  shall  nevertheless be entitled to receive such severance payment on
October  31,  2007  in  the  event  he fails to complete the Initial Term due to
termination  of  this  Agreement  pursuant  to  Section 5(a) or 5(d) below. This
payment  shall  be  in  addition  to  the  Stock  Buyback  (as  defined  below).

(e)     Within  30  days  of  the  date  of  this  Agreement,  the Company shall
repurchase 948,052 shares of the voting common stock of the Company owned by the
Consultant  at  a  purchase price of $15.40 per share (the "Stock Buyback"). The
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closing of the Stock Buyback will be held at a mutually agreeable date, at which
time  proper  stock  transfer  documentation  acceptable to the Company shall be
delivered  by  the  Consultant.  The  Consultant will retain all other shares of
common  stock of the Company held by him that are not repurchased by the Company
pursuant  to  the  Stock  Buyback.

(f)     The  Consultant  shall  be  eligible for an annual bonus with respect to
each  fiscal  year  (or  part  thereof)  during the Term, in accordance with the
provisions  of  this subsection 4(f) (the Consultant's "Bonus"). Within the time
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period required by the Company's senior credit facility (or, if no such facility
or  time  period  exists,  within  30  days of the end of each fiscal year), the
Company  (acting  through  its  Chief  Executive  Officer  and  other members of
management  and in consultation with the Board of Directors) shall establish its
budgeted  EBITDA  for  the  following fiscal year. The Company's budgeted EBITDA
shall  be  calculated  as  required by the Company's senior credit facility from
time  to  time in effect (or, if there is no such credit facility or such credit
facility  does not define "EBITDA", such calculation shall be done in accordance
with  the Company's credit facility in effect on the date hereof). Following the
final  calculation of EBITDA with respect to any fiscal year of the Company, the
Consultant  shall  be  entitled  to  a lump sum bonus payment equal to 5% of the
amount  (if  any) by which the Company's EBITDA in such fiscal year exceeded the
budgeted  EBITDA  with  respect  to  such  fiscal year. With respect to the 2004
fiscal  year of the Company, the Consultant shall be eligible to receive a bonus
of  up to 5% of the amount (if any) by which the Company's EBITDA for the period
from July 3, 2004 through December 31, 2004 exceeds $13.7 million, the Company's
budgeted EBITDA for the second half of fiscal 2004. The Consultant shall also be
eligible  for a discretionary bonus of up to $250,000 with respect to any fiscal
year  of  the  Company,  at  the discretion of the Board and the Company's Chief
Executive  Officer, based on the quality of the Company's receivables and dealer
network,  as  well  as  other  factors  to  be  mutually  determined.
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<PAGE>

(g)     Notwithstanding  anything in this Agreement to the contrary, in no event
shall  the  Consultant  be  entitled  to receive Consulting Fees and Bonus in an
aggregate amount exceeding $900,000 in or with respect to any fiscal year of the
Company.

(h)     The  Company  will,  to  the  maximum  extent  permitted by law, defend,
indemnify  and  hold harmless the Consultant and the Consultant's heirs, estate,
executors  and  administrators  against  any  costs,  losses,  claims,  suits,
proceedings,  damages  or liabilities to which the Consultant may become subject
which arise out of, are based upon or relate to the Consultant's engagement with
the Company or any affiliate, including without limitation reimbursement for any
legal or other expenses reasonably incurred by the Consultant in connection with
investigation  and  defending  against  any  such costs, losses,  claims, suits,
proceedings,  damages or liabilities; provided that the Consultant acted in good
faith  and  in  a  manner he reasonably believed was in the best interest of the
Company  and,  with  respect  to  any  criminal  action  or  proceeding,  had no
reasonable  cause  to  believe  that  his  conduct  was  unlawful.

5.     Termination  and Rights Upon Termination. This consulting arrangement may
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be  terminated  by  the  Company  or  the  Consultant without any breach of this
Agreement  only  under  the  circumstances  described  in  this  Section  5.
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(a)     Death  or Disability. The consulting arrangement will terminate upon the
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death  of  the  Consultant  or  upon his becoming Disabled. For purposes of this
Agreement,  the  Consultant  shall  be  considered "Disabled" during at any time
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which  he has a physical or mental impairment which renders him incapable, after
reasonable  accommodation, to perform his obligations hereunder. In the event of
termination  under  this  subsection  (a),  the  Consultant shall be entitled to
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payment  of  all  earned  but  unpaid  Consulting  Fees  through  the  date  of
termination,  but  any  prepaid  but  unearned Consulting Fees shall be promptly
returned  to  the  Company.

(b)     Termination  by Consultant. The consulting arrangement may be terminated
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by  the  Consultant upon 90 days' notice in the event the Company is in material
default  of  its  obligations  under this Agreement. In the event of termination
under  this  subsection (b), including the Consultant giving timely notice under
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Section  2  of  his  intent  to  not  renew  this Agreement, Consultant shall be
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entitled to payment of all earned but unpaid Consulting Fees through the date of
termination,  but  any  prepaid  but  unearned Consulting Fees shall be promptly
returned  to  the  Company.

(c)     Termination  by  the  Company  for  Cause. The Company may terminate the
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consulting  arrangement,  at  any time and without any notice period, for Cause.
The  term  "Cause"  shall  be  as  defined  as:

(i)     the  willful  and continued failure by the Consultant, or the failure of
the  Consultant  as  a  result  of  his negligence, to substantially perform his
obligations  under  the  terms  of  this  Agreement;
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<PAGE>

(ii)     the willful engaging by the Consultant in conduct which is demonstrably
and  materially injurious to the Company, which conduct is not cured (or, if not
capable  of  being cured, ceased) within 30 days after notice to the Consultant;

(iii)     the  willful  commission  by  the  Consultant  of  any act of theft or
embezzlement  against  the  Company or with respect to any client or customer of
the  Company;  or

(iv)     any  material  breach  by  the  Consultant  of any of the provisions or
covenants  contained  in  this  Agreement.

In  the  event  of  termination  under  this subsection (c), Consultant shall be
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entitled to payment of all earned but unpaid Consulting Fees through the date of
termination.

(d)     Termination  by  the  Company  other  than  for  Cause.  The Company may
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terminate  the consulting arrangement, for any reason or no reason at the end of
the Term, upon 90 days notice, provided however, that the Company shall have the
right  to  terminate  this consulting arrangement at any time, for reasons other
than  Cause,  provided  that  the  Company compensates the Consultant as if such
termination  was  to  become effective at the earlier of (i) the end of the then
current  Term,  or  (ii)  18  months  following  the  date  notice is delivered.

6.  Noncompetition.
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(a)     The  Consultant  acknowledges  that  the  Company  is  currently  in the
business  of manufacturing, marketing and distributing, directly and through its
subsidiaries, grain storage bins, swine containment systems, chicken containment
systems and related products to the agricultural industry (the "Existing Company
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Business").  The  Existing Company Business and any related business that at any
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date  in  question  the  Company  or  any  of  its subsidiaries or affiliates is
actively  conducting,  has  definitive  plans  to  conduct, or has manifested an
intention  to  conduct or attempt to conduct in the future (where the Consultant
has  provided  services  to the Company related to the activity in question) are
collectively  hereafter  referred  to  as  "Company  Business."
                                            -----------------

(b)     The  Consultant  further  acknowledges  that  (i)  his  services  to the
Company,  its  subsidiaries  and  affiliates  are  unique  and  extraordinary as
construed  under  Illinois  law,  (ii)  the  Company  Business, and the services
provided  are  conducted  throughout  the  United  States  of  America and on an
international  basis,  (iii)  the  agreements  contained  in  this Section 6 are
essential to protect the business and goodwill of the Company, (iv) work for, or
affiliation  with,  a  Competitor,  as  defined below, will likely result in the
disclosure of the Company's confidential and proprietary information, and (v) he
has  the  means  to support himself and his dependents other than by engaging in
the  Company  Business  and  the provisions of Section 6(c) will not impair such
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ability.
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<PAGE>

(c)     While  the Consultant is engaged by the Company, and for a period of two
years following the Consultant's date of termination, the Consultant agrees that
he  will  not directly or indirectly, whether as an employee, officer, director,
agent,  security  holder,  creditor, consultant, or otherwise, (i) engage in any
activity  that is in competition with the Company Business at the effective date
of  such termination or (ii) assist, perform services for, establish or open, or
have  any equity interest (other than ownership of 5% or less of the outstanding
stock  of  any  corporation  listed  on the New York Stock Exchange or quoted on
Nasdaq  National Market) in, any Competitor. "Competitor" means any person other
than the Company or any subsidiary or affiliate of the Company, that  engages in
any business in the United States and any other country where the Consultant was
assisting  the Company develop business within 6 months prior to the date of his
termination,  which business is substantially the same as or in competition with
the  Company  Business  at  the  effective  date  of  such  termination.

(d)     While  the Consultant is engaged by the Company, and for a period of two
years following the Consultant's date of termination, the Consultant agrees that
he will not directly or indirectly (i) take any action or make any statements to
any  person  (including,  without  limitation,  clients,  employees  or  other
professionals  in  the  insurance  business  or  legal  profession) that demean,
disparage  or  criticize the Company or any of its subsidiaries or affiliates in
any  manner,  (ii)  recruit,  solicit, engage or employ or induce, or attempt to
induce,  any  professional  employee  of  the  Company  or  its  subsidiaries or
affiliates  to  terminate  his or her employment, or (iii) solicit or attempt to
solicit  any  member/customer  of  the  Company  or  any  of its subsidiaries or
affiliates  to  establish  a  business relationship for himself or any person or
entity  other  than  the  Company  or  any  of  its  subsidiaries or affiliates.

(e)     During  any  period  in which Section 6(d) is in effect, the Company and
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its  subsidiaries  shall not take any action or make any statement to any person
or  entity (including, without limitation, members/customers, employees or other
professionals  in  the  insurance  business  or  legal  profession) that demean,
disparage  or  criticize  the  Consultant  in  any  manner.

7.     Confidential  Information. The Consultant agrees that, during the Term of
       -------------------------
this  Agreement  and  at  all  times  thereafter:

(a)     The  Consultant  shall  keep  secret  all  Confidential  Information and
Intellectual  Property which he may obtain during the term of this Agreement and
shall  not  reveal  or  disclose  it,  directly  or  indirectly, except with the
Company's  prior  written  consent.  The  Consultant  shall  make  use  of  the
Confidential  Information  or  Intellectual Property for his own purposes or for
the  benefit  of  anyone  other  than  the  Company and shall protect it against
disclosure,  misuse,  espionage,  loss  and  theft.

(b)     The  Consultant  acknowledges  and agrees that all Intellectual Property
created by the Consultant at the request of the Company is and shall be owned by
the  Company.  The Consultant hereby assigns and shall assign to the Company all
ownership  rights  that  he  may  possess in any such Intellectual Property. The
Consultant agrees to fully cooperate with the Company, at the Company's expense,
in  securing,  enforcing  and  otherwise  protecting  throughout  the  world the
Company's  interests  in  such  Intellectual  Property,  including,  without
limitation,  by  signing  all  documents  reasonably  requested  by the Company.
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<PAGE>

(c)     At  the  termination  of  this  Agreement, the Consultant shall promptly
deliver  to  the  Company  all  memoranda,  notes,  manuals, notebooks, computer
diskettes,  passwords,  encryption  keys,  electronic  mail and other written or
electronic  records  (and  all  copies  thereof) relating to the business of the
Company,  whether or not constituting or relating to Confidential Information or
Intellectual  Property,  that  he  may then possess or have control over. If the
Company  requests,  the  Consultant shall provide written certification all such
materials  have  been  returned.

(d)     To the extent that any court of competent jurisdiction, federal or state
securities  agency  or other governmental authority seeks to have the Consultant
disclose  Confidential Information, it/he shall promptly inform the Company, and
he  shall  take  such  reasonable  steps  to  prevent disclosure of Confidential
Information  until  the  Company has been informed of such requested disclosure,
and the Company has had an opportunity to respond to such court, agency or other
governmental authority. To the extent that the Consultant obtains information on
behalf  of  the  Company  or  any  of its subsidiaries or affiliates that may be
subject  to  attorney-client  privilege  as  to  the  Company's  or  any  such
subsidiary's  or  affiliate's  attorneys,  the  Consultant shall take reasonable
steps  to  maintain the confidentiality of such information and to preserve such
privilege.

(e)     For  purposes of this Agreement, the following terms shall be defined as
set  forth  below:

(i)     "Confidential  Information"  shall  mean all information, in any form or
         -------------------------
medium,  that  relates  to  the business, strategic plans, competitive plans and
conditions,  marketing,  costs,  prices, products, processes, services, methods,
computer  programs  and  systems,  personnel,  customers,  claims,  research  or
development  of  the  Company  and  its subsidiaries or affiliates and all other
information  related  to the Company and its subsidiaries or affiliates which is
not  readily  available  to  the  public.

(ii)     "Intellectual  Property"  shall  mean  any  of  the following which are
          ----------------------
created by the Consultant at the request of the Company: (A) any idea, know-how,
invention,  discovery,  design, development, software, device, technique, method
or  process  (whether  or  not  patentable  or  reduced to practice or including
Confidential  Information)  and  related  patents  and  patent  applications and
reissues,  reexaminations,  renewals,  continuations-in-part, continuations, and
divisions  thereof;  (B)  any  copyrightable  work  (whether  or  not  including
Confidential  Information)  and  related  registrations  and  applications  for
registration;  (C)  any  trademarks, trade secrets and other proprietary rights;
and  (D)  any improvements, updates and modifications of the foregoing made from
time  to  time.

8.     Reasonableness  and  Reformation of Covenants. The Consultant acknowledge
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that  the  covenants in Sections 6 and 7 are reasonable under the circumstances,
                        ----------------
protect  the  Company's  legitimate  business  interests  in  its  customer
relationships  and  proprietary  information,  create  no undue hardships on the
Consultant,  and  have  no effect on any public interest. The Consultant further
acknowledges  that  continuation  of  the  compensation  to  be  paid under this
Agreement  is  dependent  on continued compliance with, and constitutes adequate
compensation  for,  the restrictions imposed under Sections 6 and 7, and will be
                                                   ----------------
sufficient  to  provide  a  livelihood  for  the  Consultant.  In  the event the
Consultant  breaches  the  covenants  in  Sections 6 and 7, the Company shall be
                                          ----------------
relieved  of  any  further  obligation to pay amounts remaining to be paid under
this  Agreement.  If  a court of competent jurisdiction shall find and determine
that  any  covenant  or  undertaking  by  the  Consultant in Sections 6 and 7 is
                                                             ----------------
unreasonably  broad or vague, the parties authorize the court to reformulate the
covenant  or  undertaking to comply with applicable law and agree to be bound by
the  reformulated  provision.
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<PAGE>

9.     Equitable Remedies. The Consultant acknowledges that the Company would be
       ------------------
irreparably  injured  by  a violation of Sections 6, 7 and 8, and he agrees that
                                         -------------------
the  Company,  in addition to any other remedies available to it for such breach
or threatened breach, shall be entitled to the following remedies, including but
not  limited  to a preliminary injunction, temporary restraining order, or other
equivalent  relief,  restraining  the  Consultant  from any actual or threatened
breach  of  either  Sections  6,  7 and 8. If a bond is required to be posted in
                    ---------------------
order  for  the  Company  to secure an injunction or other equitable remedy, the
parties  agree  that  said bond need not be more than a nominal sum. The parties
hereby agree that if the scope of enforceability of the restrictive covenants in
Section  6  is  in  dispute,  a  court  or  other  trier  of  fact
may  modify  and  enforce  the  covenant to the extent that it believes it to be
reasonable  under  the  conditions  existing  at  this  time.

10.     Consultant  Conflicts.  The  Consultant warrants that he is not bound by
        ---------------------
another  employment  agreement,  consulting agreement, non-compete agreement, or
confidentiality  agreement  with  other  individuals, companies or entities that
would  conflict  with  his  entering  into  this  Agreement.

11.     Assignment.  The  rights and obligations under this Agreement may not be
        ----------
assigned  by  the  Company  or  the Consultant, except that any successor to the
Company  shall  succeed  to  the  Company's  rights  and  obligations under this
Agreement.

12.     Notices.  All notices to the Company required under this Agreement shall
        -------
be  given  in  writing  to  the  President  of  the  Company. All notices to the
Consultant  required  under  this  Agreement  shall  be  given in writing to the
Consultant  at  the  last  location  indicated  on  the  Company's  records.

13.     Choice  of Law. This Agreement will be governed by and interpreted under
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the  laws  of  the  State  of  Illinois,  irrespective  of  any  conflict of law
provisions  of  any  state.  All  disputes  shall  be  arbitrated  or  litigated
(whichever  is  applicable)  in  Chicago,  Illinois. The Consultant, BMA and the
Company hereby submit to the personal jurisdiction of the United States District
for  the  Central  District  of  Illinois or the Illinois Supreme Court, for the
purposes  of  the  enforcement  of  the  provisions  of  this  Agreement.

14.     Entire  Agreement.  Unless  otherwise  specifically  noted  herein, this
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Agreement  constitutes  the  entire agreement between the parties concerning the
subject matter hereof and supercedes all prior or contemporaneous agreements, if
any,  between  the  parties  relating  to  this  consulting  arrangement.

15.     Amendment.  This  Agreement may be amended, supplemented or changed only
        ---------
by  a  writing  to  that  effect  signed  by  the  parties.
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<PAGE>

     IN WITNESS WHEREOF, each of the Consultant and the Company has caused these
presents  to  be executed in its name and on its behalf on this 8th day of July,
2004,  all  as  of  the  Effective  Date.

CRAIG  SLOAN

BMA  CONSULTING,  INC.
By
Its

THE  GSI  GROUP,  INC.
By
Its

                                        9
<PAGE>Filed by Automated Filing Services Inc. (604) 609-0244 - Linux Gold Corp. - Exhibit 4.8

Exhibit 4.8

AGREEMENT

THIS MEMORANDUM OF AGREEMENT is dated for reference this 1st day of May, 2003.

BETWEEN:

  
    
       EDWARD SKODA 

        P.O. Box 367 Lomas Del Manglar

        Chapala, Jalisco Mexico 45900 

      (hereinafter referred to as the "Vendor")

    

  

OF THE FIRST PART

AND:

  
    
       LINUX GOLD CORP. 

        1103 – 11871 Horseshoe Way

        Richmond, B.C. V7A 5H5

       ("hereinafter referred to as the "Purchaser")

    

  

OF THE SECOND PART

WHEREAS: 

	 A.      	 the Vendor is the recorded and beneficial owner
        of TY Gold, TY Gold 2 & 3 (21 units), situated in the Lillooet Mining
        Division of the Province of British Columbia (hereinafter called the "said
        claim"); 

	 
	 B.      	 the Vendor is desirous of selling all of its right,
        title and interest in and to the said claim to the Purchaser and the Purchaser
        is desirous of acquiring same (subject to the reservation 2% net smelter
        return interest (hereinafter called the "NSR") as hereinafter described);
      

 NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration
  of the mutual covenants, agreements and conditions set forth herein, the parties
  hereto agree as follows: 

	 1.      
	 Subject to the reservation of the NSR
        interest hereinafter described, the Vendor hereby sells, assigns and sets
        over to the Purchaser for their own use absolutely all of its right, title
        and interest in and to the said claim for the consideration more particularly
        described in Paragraph 2 hereof. 

	 
	 2.      
	 As consideration for the sale of the said
        claim by the Vendor to the Purchaser, the Purchaser hereby agrees to pay
        to the Vendor the sum of TEN THOUSAND DOLLARS (CAD$10,000) as follows:
      

	 
	 	 (a)     
      
	 The sum of FIVE THOUSAND DOLLARS (CAD$5,000) upon execution hereof (the
      receipt whereof by the Vendor is acknowledged); 
	 
	 	 (b)      
	 The sum of FIVE THOUSAND DOLLARS (CAD$5,000) on or before the 1st day
      of June, 2003. 
	 
	 3.      
	 The Purchaser agrees to issue 150,000
        shares of Linux Gold Corp. to the Vendor as follows: 

	 
	 	 (a)      
	 100,000 shares upon signing and approval from regulatory bodies. 
	 
	 	 (b)      
	 TEN THOUSAND DOLLARS (CAD$10,000) upon completion of Phase I no later
      than December 1, 2003. 
	 
	 	 (c)      
	 TEN THOUSAND DOLLARS (CAD$10,000) upon completion of Phase II no later
      than December 1, 2004. 

 - 2 -

	 	 (d)      
	 50,000 shares upon completion of Phase III no later
        than December 1, 2005. 

	 
	 4.      	 The Vendor covenants and agrees with the
        Purchaser as follows: 

	 
	 	 (a)     
      
	 That the said claim is in good standing at the date
        hereof, free and clear of any encumbrances, liens or charges as the case
        may be; 

	 
	 	 (b)      
	 That neither the Vendor nor any of its predecessors
        in interest or title have done anything whereby the said claim may become
        encumbered; 

	 
	 	 (c)      
	 That the Vendor has the right to enter into this
        agreement and to dispose of the interest in and to the said claim which
        is hereby covenanted for sale. 

	 
	 5.      	 Concurrently with the execution of this
        agreement, the Vendor shall execute a Bill of Sale transferring the said
        claim to the Purchaser, to be released to the Purchaser forthwith upon
        payment of the sum of FIVE THOUSAND DOLLARS (CAD$5,000) by the Purchaser
        to the Vendor. 

	 
	 6.      	 The parties acknowledge and agree that
        the Vendor shall retain an interest in two percent (2%) of the net smelter
        return to be derived from mining activities conducted on the said claim.
        For the purpose of this agreement the term "NSR" shall mean the net income
        from the production of ores, concentrates, minerals or metals from the
        said claim after deducting from all exploration, development and capital
        costs and all other charges and expenses whatsoever and taxes (other than
        income taxes) as reported in audited statements to be maintained by the
        Purchaser on the said claim. If any dispute should arise as to the meaning
        or application of this term such dispute shall be referred to the auditors
        of the Purchaser who shall resolve the dispute in accordance with generally
        accepted accounting principles and whose decision shall be binding upon
        the parties hereto. 

	 
	 7.      	 The Purchaser may purchase the NSR for
        ONE MILLION DOLLARS ($1,000,000) for each one percent (1%), prior to commercial
        production, in shares or in cash. 

	 
	 8.      	 This agreement shall enure to the benefit
        of and be binding upon the parties hereto, their respective heirs, executors,
        administrators, successors or assigns as the case may be. 

 IN THE EVENT that this agreement is not executed on or before
  the 2nd day of May, 2003, this Agreement is nul and void. 

 IN WITNESS WHEREOF the parties hereto have executed this Agreement
  as of the day and year first above written. 

	 LINUX GOLD CORP.  	  	 EDWARD SKODA  
	  	 	 
	 "John Robertson"  	  	 "Edward Skoda"  
	 Signature  	  	 Signature  
	 	 	 
	 John Robertson  	  	 Edward Skoda  
	 Print Name  	  	 Print Name  
	 	 	 
	 President  	  	 Owner  
	 Title  	  	 Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]