Document:

exh102.htm

    Exhibit
10.2

    

    DEQ
STANDARD CONTRACT

    

    
      	
              I.  

            	
              DEFINITIONS

            

    

    

    
      	
              A.        

            	
              DEPARTMENT
      shall mean the Department of Environmental Quality of Idaho, any division,
      section, office, unit, or other entity of that DEPARTMENT, or any of the
      officers or other officials lawfully representing that
      DEPARTMENT.

            

    

    

    
      	
               
      

            	
              B.

            	
              CONTRACTOR
      shall mean that individual, partnership, corporation, or other entity
      performing services under this CONTRACT. It shall include any
      subcontractor retained by the prime CONTRACTOR as permitted under the
      terms of this CONTRACT. It shall mean acting in an independent capacity,
      not as an officer, employee, or agent of the DEPARTMENT. It shall mean one
      who can provide the same or similar services to individuals or entities
      other than the DEPARTMENT.

            

    

    

    
      	
               
      

            	
              C.

            	
              CONTRACTING
      OFFICER shall mean that person appointed by the DEPARTMENT to administer
      this CONTRACT on behalf of the DEPARTMENT. The term includes, except as
      otherwise provided in this CONTRACT, an authorized representative of the
      CONTRACTING OFFICER acting within the scope of his/her
      authority.

            

    

    

    D.        CONTRACT
shall mean the originally negotiated and executed CONTRACT
(including

    Riders
and Appendices), any negotiated and executed AMENDMENT to this contract and/or
any TASK ORDER negotiated, executed and implemented pursuant to provisions of
this contract.

    

    
      	
              II.

            	
              RELATION
      OF PARTIES

            

    

    

    
      	
               
      

            	
              A.

            	
              The
      parties intend to establish an Independent Contractor/Principal
      relationship by this contract.

            

    

    

    
      	
               
      

            	
              1.

            	
              CONTRACTOR
      certifies that they are an Independent Contractor, and as an Independent
      Contractor will file all required forms and make the necessary payments
      appropriate to his Independent Contractor tax
  status.

            

    

    

    
      	
               
      

            	
              2.

            	
              CONTRACTOR
      acknowledges that their status as an Independent Contractor complies with
      26CFR31.3121 (c-2) Internal Revenue
Code.

            

    

    

    
      	
               
      

            	
              B.

            	
              The
      department is interested only in the quality of services provided and the
      final results to be achieved; the conduct and control of the worker will
      lie solely with the CONTRACTOR.

            

    

    

    
      	
               
      

            	
              C.

            	
              The
      CONTRACTOR is not to be considered an agent or employee of the DEPARTMENT
      for any purpose, and neither the CONTRACTOR nor their employees are
      entitled to any benefits of employment provided by the DEPARTMENT to its
      employees.

            

    

     

    
      	
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              D.

            	
              It
      is understood that the DEPARTMENT does not agree to use CONTRACTOR
      exclusively, and that CONTRACTOR is free to contract to perform similar
      services for other parties while under contract to the Department, so long
      as there is no interference with the performance of this
      Contract.

            

    

    

    III.      TERMINATION
FOR CONVENIENCE

    

    
      	
               
      

            	
              A.

            	
              The
      DEPARTMENT or CONTRACTOR may cancel this Contract at any time with or
      without cause upon thirty (30) days' written notice to the other party,
      and specifying the date of
termination.

            

    

    

    
      	
               
      

            	
              B.

            	
              Cancellation
      of the Contract by either party shall terminate the obligations or
      liabilities of the parties, except that the obligations or liabilities
      incurred prior to the termination date shall be
  honored.

            

    

    

    IV.      TERMINATION
FOR DEFAULT

    

    
      	
               
      

            	
              A.

            	
              CONTRACTOR
      default occurs if the CONTRACTOR fails to perform any of the covenants or
      conditions of this Contract; and the CONTRACTOR does not cure such defects
      in performance within ten (10) days after receipt of any written notice
      from the CONTRACTING OFFICER informing the CONTRACTOR of such defects in
      performance.

            

    

    

    
      	
               
      

            	
              B.

            	
              Upon
      default, the DEPARTMENT may cancel this Contract without any notice and
      may pursue any and all legal, equitable, and other remedies available to
      the DEPARTMENT.

            

    

    

    
      	
              C. 
             

            	
              If
      termination for default is effected by the DEPARTMENT, an equitable
      adjustment in the price provided in this CONTRACT shall be made,
      but:

            

    

    

    
      	
              1.      
        

            	
              The
      DEPARTMENT shall withhold any uncommitted funds for work not
      performed;

            

    

    

    
      	
              2.      
        

            	
              No amount shall be
      allowed for anticipated profit on unperformed services or other work;
      and

            

    

    

    
      	
               
      

            	
              3.

            	
              Any
      payment due the CONTRACTOR at the time of termination may be adjusted to
      cover any additional costs to the DEPARTMENT because of the CONTRACTOR'S
      default.

            

    

    

    
      	
               
      

            	
              D.

            	
              If
      termination for default is effected by the CONTRACTOR, or if termination
      for convenience is effected by the DEPARTMENT, the equitable adjustment
      shall include a reasonable profit for services or other work performed.
      The equitable adjustment for any termination shall provide for payment to
      the CONTRACTOR for services rendered and expenses incurred prior to the
      termination, in addition to termination settlement costs reasonably
      incurred by the CONTRACTOR relating to commitments which had become firm
      prior to the termination.

            

    

    

    
      	
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              D.        

            	
              Upon
      receipt of a termination action under paragraphs A. o:r B. above, the
      CONTRACTOR shall:

            

    

    

    1.         Promptly
discontinue all affected work (unless the notice directs otherwise);
and

    

    
      	
               
      

            	
              2.

            	
              Deliver
      or otherwise make available to the DEPARTMENT all data, drawings,
      specification, reports, estimates, summaries and such, other information
      and materials as may have been accumulated by the CONTRACTOR in performing
      this CONTRACT, whether completed or in
process.

            

    

    

    
      	
               
      

            	
              F.

            	
              Upon
      termination under paragraphs A. or B. above, the DEPARTMENT may take over
      the work and may award another party a contract to complete the work under
      this CONTRACT.

            

    

    

    
      	
               
      

            	
              G.

            	
              If,
      after termination for default of the CONTRACTOR to fulfill contractual
      obligations, it is determined that the CONTRACTOR had not failed to
      fulfill contractual obligations,
the

            

    

    termination
shall be deemed to have been for the convenience of the DEPARTMENT. In such
event, adjustment of the CONTRACT compensation shall be made as provided above
in paragraph D.

    

    
      	
               
      

            	
              H.

            	
              In
      the event of legal action, the prevailing party shall be reimbursed for
      any and all expenses that are incurred as a result of the default
      including, but not limited to, legal fees, and losses incurred due to
      default.

            

    

    

    
      	
              V.

            	
              ADDITIONAL
      PROVISIONS

            

    

    

    Additional
provisions, if any, are incorporated by reference on the cover sheet of this
contract.

    

    IV.       INDEMNIFICATION

    

    
      	
               
      

            	
              A.

            	
              The
      CONTRACTOR shall indemnify, defend, and save harmless the STATE OF IDAHO,
      and the DEPARTMENT, its officers, agents, and employees, from and against
      all liability, claims, damages, losses, expenses, actions, and suits
      whatsoever, including injury or death of others or any employee of the
      CONTRACTOR or subcontractor caused by or arising out of the CONTRACTOR'S
      negligent performance, act, or omission of any term of this
      Contract.

            

    

    

    
      	
               
      

            	
              B.

            	
              The
      DEPARTMENT shall indemnify, defend and save harmless the CONTRACTOR, its
      officers, agents, employees and subcontractors from and against all
      liability, claims, damages, losses, expenses, actions and suits
      whatsoever, including injury or death of others or any employee of the
      DEPARTMENT to the extent caused by or arising out of the DEPARTMENT'S
      negligent performance, act or omission of any term of this CONTRACT.
      Nothing in this provision shall extend the liability of the: DEPARTMENT
      beyond that provided in the Idaho Torts Claim Act, Idaho Code 6-901
      et.seq.

            

    

    

    
      	
               
      

            	
              C.

            	
              As
      an Independent Contractor, CONTRACTOR is responsible for all
      employee-related benefits, such as paid leaves and health insurance, and
      withholding and payment of
F.I.C.A.,

            

    

     

    
      	
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    F.U.T.A.,
and income taxes for Federal and State purposes. The DEPARTMENT shall not be
responsible for these employee related benefits and tax items, and shall be
indemnified and held harmless from any liability, cost or expenses, including
any interest, penalties and attorney's fees, that may be connected with the
CONTRACTOR'S failure to provide or pays such items.

    

    VII.     ASSIGNMENT
AND SUBCONTRACTING

    

    
      	
               
      

            	
              A.

            	
              This
      CONTRACT is to be binding on the heirs, successors and assigns of the
      parties hereto and is not to be assigned by either party without first
      obtaining the written consent of the other. No assignment of this CONTRACT
      shall be effective until the assignee assumes in writing the obligations
      of the assigning party, and delivers such written assumption to the other
      original party to this CONTRACT. Use of SUBCONTRACTORS by the CONTRACTOR,
      or subsidiary or affiliate firms of the CONTRACTOR, for technical or
      professional services shall not be considered an assignment of a portion
      of this CONTRACT.

            

    

    

    B.         The
parties agree that no services required under this CONTRACT may be performed
under SUBCONTRACT
unless both parties agree in writing.

    

    
      	
               
      

            	
              C.

            	
              Approved
      subcontracts will contain all appropriate Federal and State requirements
      and such conditions and provisions as the DEPARTMENT may deem
      necessary.

            

    

    

    
      	
              A.        

            	
              The
      CONTRACTOR understands and agrees to assume sole
      responsibility for the satisfactory performance of all subcontractors and
      subcontracted services.

            

    

    

    
      	
              VIII.

            	
              ACCOUNTING,
      AUDITING, RECORDS RETENTION AND ACCESS TO
  RECORDS

            

    

    

    
      	
               
      

            	
              A.

            	
              The
      CONTRACTOR shall maintain books, records, documents and other evidence
      directly pertinent to performance of EPA funded work under this CONTRACT
      in accordance with generally accepted accounting principles and practices
      consistently applied, and in accordance with 40 CFR 31.36(i)(l0) and (1
      1), in effect on the date this CONTRACT is signed by both parties. Records
      shall be retained for a period of three (3) years after final payment is
      made and all other pending matters are closed. If any litigation, claim,
      negotiation, audit or other action involving the records has been started
      before the expiration of the three-year period, the records must be
      retained until completion of the actions and resolution of all issues
      which arise from it, or until the end of the regular three-year period,
      whichever is later.

            

    

    

    The
CONTRACTOR shall also maintain financial information and data used in the
preparation or support of the cost submission required under 40 CFR 31.22 (for
negotiation of this CONTRACT), or negotiated change order, and a copy of the
cost summary submitted to the DEPARTMENT. The CONTRACTOR will obtain written
approval from the DEPARTMENT prior to disposal of any records. The U.S. EPA, the
Comptroller General of the United States, the U.S. Department of Labor, the
DEPARTMENT, any other agency of the State of Idaho or any of their authorized
representatives, shall have access to all such books, records, documents and
other evidence for purposes of inspection, audit and copying during

    

    
      	
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    normal
business hours.

    

    The
CONTRACTOR will provide proper facilities for such access and inspection. This
CONTRACT may be terminated upon any refusal of the CONTRACTOR to allow access to
the records as described above.

    

    B.           Audits

    

    
      	
               
      

            	
              1.

            	
              Audits
      conducted under this Section shall be in accordance with generally
      accepted auditing standards and established procedures and guidelines of
      any reviewing or audit agency(s).

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      DEPARTMENT'S monitoring and audit efforts shall include activities aimed
      at: (1) assessment of agreement operation at a given point in time; (2)
      comparison of actual performance versus established performance standards;
      (3) identification of agreement accomplishments and/or deficiencies in
      operation and administration; and (4) evaluation of agreement results,
      benefits and impact upon project objectives. The DEPARTMENT shall have the
      right to evaluate both the management and financial systems of the
      CONTRACTOR to ascertain that there is compliance with all of the
      provisions contained in this contract. In determining the adequacy of
      these systems, the DEPARTMENT shall utilize internal staff or arrange for
      an independent certified public accounting firm: (a) survey the
      CONTRACTOR'S system to obtain information through discussion, inquiry and
      observation of what the system is stated to be; (b) appraise the adequacy
      of the system in terms of standards prescribed herein; )c) select a number
      of transactions and trace them through the records to ascertain whether
      the system is actually followed and is effective; and (d) interview
      CONTRACTOR'S staff members to determine management and organizational
      needs.

            

    

    

    
      	
               
      

            	
              C.

            	
              The
      CONTRACTOR agrees to disclose all information and reports resulting from
      access to records under paragraph A. and B. of this Section to any of the
      agencies referred to in paragraph
A.

            

    

    

    
      	
               
      

            	
              D.

            	
              Access
      to records is not limited to the required retention periods. The
      authorized agencies designated in paragraph A of this Section shall have
      access to records at any reasonable time for as long as the records are
      maintained.

            

    

    

    
      	
               
      

            	
              E.

            	
              This
      section applies to all records pertaining to this CONTRACT, TASK ORDERS,
      CHANGE ORDERS and AMENDMENTS:

            

    

    

    1.           To
the extent the records pertain directly to performance of this
CONTRACT;

    

    2.           If
there is any indication that fraud, gross abuse or corrupt practices may he
involved; or

    

    3.           If
the CONTRACT is terminated for default or for convenience.

    

    
      	
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              F.

            	
              The
      CONTRACTOR agrees to account for all expenditures under this CONTRACT in
      accordance with generally accepted accounting principles, a cash or
      accrual method of accounting in accordance with 40 CFR 31.41 and to comply
      with the cost principles contained in 40 CFR 31.22 to determine allowable
      costs.

            

    

    

    
      	
               
      

            	
              G.

            	
              It
      is understood and agreed that in case of the termination of the existence
      of the CONTRACTOR by bankruptcy or any other reason, that all records in
      the CONTRACTOR'S possession, program and fiscal, relating to this CONTRACT
      shall become the property of the
DEPARTMENT.

            

    

    

    
      	
               
      

            	
              H.

            	
              PROPERTY
      MANAGEMENT

            

    

    

    The
CONTRACTOR must comply with the property management requirements set forth in 40
CFR 35.6335 through 40 CFR 35.6400, where applicable. The CONTRACTOR will submit
property inventory reports on an annual basis by January 1 of each year, when
the property is no longer needed and within 90 days from the end of the contract
period. The CONTRACTOR must comply with the requirements for inventory reports
set forth in 40 CFR 35.6660, where applicable.

    

    Inventory reports must include the
following:

    

    a. Description of
property;

    

    b. Manufacturer's serial number, model
number or other identification number;

    

    c. Source, including the assistance
identification number;

    

    d. Unit acquisition date and cost;
and

    

    e.
Location, use and condition (by site and activity) and the date this information
was recorded.

    

    IX.      
PROJECT ASSESSMENT AND CORRECTIVE ACTION

    

    The
CONTRACTOR will maintain an ongoing analysis of project performance as it
relates to project goals and objectives. Whenever the CONTRACTOR. determines
that goals are not being met as specified in the CONTRACT, the CONTRACTOR will
develop a corrective action plan to meet those goals. On a monthly basis, the
CONTRACTOR will be required to submit a report of the corrective action taken or
planned. Unless otherwise specified in the statement of work in an AMENDMENT or
TASK ORDER, the report will be due no later than the 10th of the following
month.

    

    

    

    

    

    

    

    
      	
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    X.        CONFIDENTIALITY

    

    
      	
               
      

            	
              A.

            	
              Where
      applicable, such as in the event of litigation, the CONTRACTOR shall not
      provide, disclose or reveal data, field notes, log books, photographs,
      computer stored information, drawings, specifications, reports, estimates,
      summaries or any other information or records including originals, copies,
      drafts, abstracts or information in any form generated or otherwise
      obtained in the performance of its responsibilities under this CONTRACT to
      any party other than the DEPARTMENT except upon compulsion by subpoena or
      other legal process. The CONTRACTOR shall provide prompt notice of service
      to the DEPARTMENT. The CONTRACTOR is not responsible for any of the above
      which may previously have been placed in the public domain. The DEPARTMENT
      will inform the CONTRACTOR in writing by certified mail when this clause
      is being invoked and what specific materials are considered
      confidential.

            

    

    

    
      	
               
      

            	
              B.

            	
              All
      such materials shall be the property of the DEPARTMENT and shall be
      returned to the DEPARTMENT within eighty (80) days of expiration or
      termination of the CONTRACT or upon written demand of the
      DEPARTMENT.

            

    

    

    
      	
               
      

            	
              C.

            	
              The
      CONTRACTOR shall require all SUBCONTRACTORS to comply with Subsection IX.A
      of this Contract by explicit reference or provision in each
      SUBCONTRACT.

            

    

    

    
      	
              XI.

            	
              APPROPRIATION
      BY LEGISLATURE REQUIRED

            

    

    

    It
is understood and agreed that the DEPARTMENT is a government entity, and this
Contract shall in no way or manner be construed so as to bind or obligate the
State of Idaho beyond the term of any particular appropriation of funds by the
State Legislature as may exist from time to time. In the event the Legislature
of the State of Idaho fails, neglects, or refuses to appropriate such funds as
may be required and designated to continue payment for this Contract, this
Contract shall be at such time automatically terminated and at an end. All
future rights and liabilities of the parties hereto shall thereupon cease within
thirty (30) days afier the notice to the CONTRACTOR.

    

    
      	
              XII.

            	
              EFFECT
      OF TERMINATION OF FEDERAL FUNDING

            

    

    

    In
the event Federal matching funds are reduced from current prorated levels, or
terminated, the financial participation of the State of Idaho may be reduced
accordingly or terminated.

    

    
      	
              XIII.

            	
              BINDING
      EFFECT OF FEDERAL PURCHASE OF SERVICE aEGULATIONS AND STATE
      PLANS

            

    

    

    This
agreement is subject to the provisions of any relevant Federal regulations and
any relevant provisions of the State Plan in effect at the time this Contract is
executed, or which thereafter became effective. Such Federal regulations and
State plans are on file in the Central Office of the Department Environmental
Quality and are available for inspection by the CONTRACTOR.

    

    

    

    

    

    
      	
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              XIV.

            	
              OBLIGATIONS
      OF THE CONTRACTOR

            

    

    

    
      	
               
      

            	
              A.

            	
              AUTHORIZATION
      TO PROCEED

            

    

    

    The
CONTRACTOR will not begin work on any services until this CONTRACT, any
AMENDMENT(S) or TASK ORDER(S) have been signed by the DEPARTMENT, the effective
date has been filled in and that date has arrived and passed. The CONTRACTOR;
SUBCONTRACTOR or their employees shall not render services to the DEPARTMENT
under the tenns of this CONTRACT until the CONTRACT has been fully signed by
each party and the CONTRACT has become effective. Furthermore, the DEPARTMENT is
in no way responsible for reimbursing the CONTRACTOR for services rendered prior
to the signature of the DEPARTMENT and the arrival of the effective date of this
CONTRACT. No employee or agent of the DEPARTMENT may authorize reimbursable
services to the CONTRACTOR except the Director of the DEPARTMENT in
writing.

    

    For
CONTRACTS utilizing TASK ORDERS, authorization to proceed on work as to scope,
cost and time for completion shall be in the form previously described for TASK
ORDERS. Each TASK ORDER shall have:

    

    
      	
               
      

            	
              1.

            	
              A
      preamble referencing the DEPARTMENT, the CONTRACTOR, PROJECT, TASK, TASK
      ORDER NUMBER and this CONTRACT.

            

    

    

    
      	
               
      

            	
              2.

            	
              A
      description of the services to be provided, including work products, and
      the estimated time schedule for
completion.

            

    

    

    3.           Any
special conditions not covered in this CONTRACT.

    

    4.           ATTACHMENTS
and SIGNATURES sections

    

    
      	
               
      

            	
              b.

            	
              The
      CONTRACTOR'S obligations under this Section are in addition to the
      CONTRACTOR'S other obligations under this
  CONTRACT.

            

    

    

    XV.  
   FEDERAL AND STATE AUDIT EXCEPTIONS

    

    When
Federal or State audits indicate that payments to the CONTRACTOR do not meet the
applicable Federal or State rules and regulations, the CONTRACTOR shall refund
and pay to the DEPARTMENT any payments made arising from the CONTRACTOR'S
ineligible or improper receipt or use of Federal financial participation funds,
and the DEPARTMENT must refund such payments to the applicable Federal funding
agency.

    

    
      	
              XVI.

            	
              AFFIRMATIVE
      ACTION/EQUAL EMPLOYMENT OPPORTUNITY

            

    

    

    
      	
               
      

            	
              A.

            	
              The
      CONTRACTOR hereby agrees to provide all services funded through or
      affected by this CONTRACT without discrimination on the basis of race,
      color, national origin, age or physical/mental impairment, and to comply
      with all relevant sections of:

            

    

    

    

    

    

    
      	
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    1.           Title
VI of the Civil Rights Act of 1964, as amended;

    

    2.           Section
504 of the Rehabilitation Act of 1973, as amended; and

    

    3.           The
Age Discrimination Act of 1975 as amended

    

    4.           The
Americans With Disabilities Act of 1990.

    

    
      	
               
      

            	
              B.

            	
              The
      CONTRACTOR agrees to provide equal employment opportunity and take
      affirmative action in employment on the basis of race, color, national
      origin, religion, sex, age, physical/mental impairment and all relevant
      sections of:

            

    

    

    
      	
               
      

            	
              1.

            	
              Executive
      Order 11246, as amended by Executive Order
  11375;

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      applicable provisions of the Department of Labor regulations (48 CFR, Part
      22);

            

    

    as amended;

    

    
      	
               
      

            	
              3.

            	
              Section
      503 of the Rehabilitation Act of 1973,
and

            

    

    

    4.           Sections
402 of the Vietnam Era Veterans Readjustment Assistance Act of
1974.

    

    C.           The
CONTRACTOR agrees to comply with the Civil Rights, equal employment
opportunity

    Labor Law and other requirements under
40 CFR, Part 7.

    

    
      	
               
      

            	
              D.

            	
              The
      CONTRACTOR agrees to comply with the requirements for small, minority
      women's and labor surplus area businesses in 40 CFR 31.36(e) in its award
      of any SUBCONTRACT under this
CONTRACT.

            

    

    

    
      	
               
      

            	
              1.

            	
              The
      CONTRACTOR agrees to assure that each of these business entities is given
      the opportunity to participate in subcontract awards under this contract.
      This policy applies to all SUBCONTRACTS for supplies, construction and
      services under this CONTRACT.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      CONTRACTOR shall file a quarterly report on a form to be provided by the
      DEPARTMENT, listing all small, minority and women's business enterprises
      that were subcontracted to during the preceding quarter. A form must be
      filed even if a small or disadvantaged business was not
      utilized.

            

    

    

    
      	
              XVII.

            	
              CONFLICT
      OF INTEREST

            

    

    

    
      	
               
      

            	
              A.

            	
              Organizational
      Conflicts of Interest

            

    

    

    
      	
               
      

            	
              1.

            	
              The
      CONTRACTOR warrants that to the best of the CONTRACTOR'S knowledge and
      belief, there are no relevant facts or circumstances which could give rise
      to actual,

            

    

    

    
      	
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    apparent
or potential organizational conflicts of interest or that the CONTRACTOR has
disclosed all such relevant information.

    

    
      	
                2.        
      

            	
              The
      DEPARTMENT reserves the right to procure services from contractors other
      than the CONTRACTOR in the event the CONTRACTOR has an unresolvable
      conflict of interest which cannot be avoided. Such conflicts may include
      status as a potentially responsible party; present or proposed contractual
      arrangement with a potentially responsible party to be studied; present or
      proposed contractual agreements with a firm that manufactures or sells any
      substance or item to be studied, or present or proposed contractual
      agreements with a firm that manufactures or sells any substance or item in
      competition with a substance or item to be studied under this proposed
      contract.

            

    

    

    
      	
               
      

            	
              3.

            	
              Upon
      receipt of a work assignment, the CONTRACTOR shall identify any potential
      conflict of interest in its performance of services contemplated by the
      work assignment. If the DEPARTMENT determines that the CONTRACTOR has an
      unresolvable conflict which cannot be avoided, Section III and/or IV of
      this Contract will apply. The CONTRACTOR shall provide a Project Team
      which is qualified and free from potential conflict of interest to perform
      the services required by this CONTRACT, AMENDMENT(S) and/or task
      orders(s).

            

    

    

    B.        Individual
Conflicts of Interest

    

    With
regard to individual employees performing services under this CONTRACT, the
CONTRACTOR shall:

    

    
      	
               
      

            	
              1.

            	
              Notify
      the DEPARTMENT of any actual, apparent or potential conflict of interest
      involving any individual employee proposed to perform services under this
      CONTRACT, AMENDMENT(S) and/or TASK ORDER(S). In the event of any conflict
      of interest, the individual employee may be disqualified by the DEPARTMENT
      from taking part in any services creating the conflict of
      interest.

            

    

    

    
      	
               
      

            	
              2.

            	
              Require
      each individual professional employee proposed to work on any TASK ORDER
      to sign a copy of the "Individual Employee
  Agreement".

            

    

    

    XVIII.
CONTRACT DATA

    

    The
CONTRACTOR and the DEPARTMENT assure that the cost and pricing data submitted
for evaluation with respect to negotiation of prices for negotiated CONTRACTS,
lower tier SUBCONTRACTS and change orders are based or correct, accurate and
complete data supported by their books and records. If the DEPARTMENT or
appropriate Federal agency determines upon agreement by the CONTRACTOR that any
price (including profit) negotiated in connection with this CONTRACT, lower tier
SUBCONTRACT or AMENDMENT(S) and/or TASK ORDER(S) thereunder was increased by any
significant sum because the data provided are incomplete, inaccurate or not
current at the time of submission, then such price, cost or profit shall be
reduced accordingly and the CONTRACT shall be modified in writing.

    

    

    

    
      	
              DEQ
      Standard Contract

            	
              Page
      10

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    XIX.    EMPLOYMENT

    

    The
CONTRACTOR shall not accept employment from any party other than the DEPARTMENT,
or Federal agencies, for work directly related to the Site (services) covered
under this CONTRACT for a period of three (3) years from termination of the
CONTRACT, or until any litigation related to the Site is completed, whichever is
longer, unless it has received written release of this restriction from the
DEPARTMENT.

    

    
      	
              XX.

            	
              SEVERABILITY

            

    

    

    If
any term or provision of this CONTRACT is held by the courts to be illegal or in
conflict with any Idaho law, the validity of the remaining terms and provisions
shall not be affected, and the rights and obligations of the parties shall be
construed and enforced as if the CONTRACT did not contain the particular term or
provision held to be invalid.

    

    
      	
              XXI.

            	
              NON-WAIVER
      OF BREACH

            

    

    

    Failure
of the CONTRACTOR or the DEPARTMENT to insist upon strict performance of any of
the covenants and conditions of this CONTRACT, or to exercise any option herein
conferred in any one or all instances, shall not be construed to be a waiver or
relinquishment of any such covenant or condition but the same shall be and
remain in full force and effect, unless such waiver is evidenced by the prior
written consent of the CONTRACTOR or the DEPARTMENT.

    

    
      	
              XXII.

            	
              LICENSES

            

    

    

    For
the duration of this CONTRACT, the CONTRACTOR will remain in effect and have in
possession all applicable licenses required by federal and state statutes and
county and city ordinances, including an Idaho business license, if so
required.

    

    XXIII.
CLEAN AIR AND CLEAN WATER ACTS

    

    The
CONTRACTOR shall comply with all applicable standards, orders or requirements
issued under Section 306 of the Clean Air Act (42 USC 1857(h)), Section 508 of
the Clean Water Act (33 USC 1368), Executive order 11738 and the Environmental
Protection Agency Regulations (40 CFR, Part 15). All violations are to be
reported to the appropriate federal or state agency.

    

    XXIV.
GOVERNED BY THE LAWS OF THE STATE OF IDAHO

    

    This
CONTRACT shall be governed by the laws of the State of Idaho and performed
therein.

    

    XXV.  
NOTICE OF CONTRACT EFFECTIVENESS

    

    It
is understood that this document is not effective until the appropriate
CONTRACTING OFFICER has signed the document, the effective date has been filled
in by the CONTRACTING OFFICER, and that date has arrived or passed. Neither the
CONTRACTOR nor his organization will render services

    

    

    
      	
              DEQ
      Standard Contract

            	
              Page
      11

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    to
the DEPARTMENT under the terms of this document until the document has been
fully signed by each party and the Contract has become effective. Furthermore,
the DEPARTMENT is in no way responsible for reimbursing the CONTRACTOR for
services rendered prior to the appropriate signature by the CONTRACTING OFFICER
of the DEPARTMENT and the arrival of the effective date of this
Contract.

    

    
      	 
      	
              CONTRACTOR'S
      Initials

            	
              TZH

            	 
      	
              Date

            	
              6/28/06

            
	 
      	 
      	
              GSS

            	 
      	 
      	
              6/29/06

            

    

    

    XXVI.
CERTIFICATION REGARDING LOBBYING

    

    The CONTRACTOR certifies
that:

    

    
      	
               
      

            	
              A.

            	
              None
      of the funds provided by this contract have been paid or will be paid by
      or on behalf of the CONTRACTOR to any person for influencing or attempting
      to influence an officer or employee of any governmental agency, amember,
      officer or employee of Congress or the State legislature in connection
      with the awarding, continuation, renewal, amendment, or modification of
      any contract, grant, loan, or cooperative
  agreement.

            

    

    

    
      	
               
      

            	
              B.

            	
              If
      any funds, other than funds provided by this contract, have been paid or
      will be paid to any person for influencing or attempting to influence an
      officer or employee of any governmental agency, a member, officer or
      employee of Congress or the State legislature in connection with this
      contract, the CONTRACTOR shall complete and submit Standard Form LLL,
      "Disclosure Form to Report Lobbying," in accordance with its instructions,
      and a copy of Standard Form LLL to the contracting
  agency.

            

    

    

    
      	
               
      

            	
              C.

            	
              The
      CONTRACTOR shall require that the language of this certification be
      included in any subcontract, at all tiers, (including grants, subgrants,
      loans, and cooperative agreements) entered into as a result of this
      contract, and that all subrecipients shall certify and disclose
      accordingly.

            

    

    

    
      	
               
      

            	
              D.

            	
              The
      CONTRACTOR understands that a false statement of this certification may be
      grounds for rejection or termination of this contract, and that their
      signature upon this contract is a material representation of fact upon
      which reliance was placed when this contract was made or entered into. In
      addition, under Section 1352, Title 31, U.S. Code, a false statement shall
      be subject to a civil penalty of not less than $10,000 and not more than
      $100,000 for each such false
statement.

            

    

    

    XXVII.
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY
MATTERS

    

    The CONTRACTOR certifies to the best of
its knowledge and belief that it and its principals:

    

    
      	
               
      

            	
              A.

            	
              Are
      not presently debarred, suspended, proposed for debamlent, declared
      ineligible, or voluntarily excluded from covered transactions by any
      Federal department or agency;

            

    

    

    B.           Have
not within a three year period preceding this proposal been convicted of or had
a civil

    

    

    

    
      	
              DEQ
      Standard Contract

            	
              Page
      12

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    judgment
rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public
(federal, state or local) transaction or contract under a public transaction;
violation of Federal of State antitrust statutes or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records, making false
statements, or receiving stolen property;

    

    
      	
               
      

            	
              C.

            	
              Are
      not presently indicted for or otherwise criminally or civilly charged by a
      government entity (federal, state, or local) with commission of any of the
      offenses enumerated in paragraph B of this certification;
    and

            

    

    

    
      	
               
      

            	
              D.

            	
              Have
      not within a three-year period preceding this contract had one or more
      public transactions (federal, state, or local) terminated for cause or
      default.

            

    

    

    The
CONTRACTOR understands that false statement on this certification may be grounds
for termination of the contract. In addition, under 18 0USC Sec. 1001, a false
statement may result in a fine of up to $10,000 or imprisonment for up to five
years, or both.

    

    XXVIII.
COMPLETE STATEMENT OF TERMS

    

    This
Contract, the Request for Proposal, the Request for Proposal Pre-Bid Questions,
DEQ Response and Request for Proposal Addendum, the Contractor's bid proposal
and related attachments constitutes the entire agreement between the parties
hereto and shall supersede all previous proposals, oral or written,
negotiations, representations, commitments, and all other communications between
the parties. It may not be released, discharged, changed or modified or assigned
in whole or in part, and no claim for additional services not specifically
provided herein will be allowed by the DEPARTMENT, except to the extent provided
by an instrument in writing signed by a duly authorized representative of the
CONTRACTOR and the DEPARTMENT.

    

    
      	
               
      

            	
              Any
      Riders, Appendices, Attachments, and all other information attached to
      this Contract serve to supplement the terms and conditions of this
      Agreement, and do not change or eliminate any provision of this
      Agreement.

            

    

    

    IN
WITNESS WHEREOF, the parties have executed this agreement.

    

    
      	
              CONTRACTOR:

            	 
      	
              STATE OF
      IDAHO:

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              BY:

            	
              GREG
      STEWART

            	 
      	
              BY:

            	
              TONI
      HARDESTY

            
	 
      	 
      	 
      	 
      	 
      
	
              NAME:

            	
              Greg
      S. Stewart

            	 
      	
              NAME:

            	
              Toni
      Hardesty

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              TITLE:

            	
              President

            	 
      	
              TITLE:

            	
              Director

            
	 
      	
              Stewart
      Contracting Inc.

            	 
      	 
      	
              Department
      of Environmental Quality

            

    

    

    

    

    

    
      	
              DEQ
      Standard Contract

            	
              Page
      13

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              DATE:

            	
              06/29/06

            	
              DATE:

            	
              06/29/06

            

    

    

    Contractor’s
Mailing Address:

    

      Stewart
Contracting Inc.

      202
S. Division, P.O. Box 1275

      Pinehurst,
Idaho 83850

    

    

    Telephone
# 208-682-9018

    

    

    

    

    

    

    

    

    

    

     

    

    

    

    

    

    

    

    

    

    

    
      	
              DEQ
      Standard Contract

            	
              Page
      14exh103.htm

    Exhibit
10.3

    

    
      	 
      	
              U.S.
      Silver

            
	
              [LOGO]

            	
              P.O.
      Box 440

            
	 
      	
              1040
      Lake Gulch Road

            
	 
      	
              Wallace,
      ID 83873

            
	 
      	
              208.752.1116

            

    

    

    PROFESSIONAL
SERVICES AGREEMENT

    

    This
PROFESSIONAL SERVICES AGREEMENT, entered into as of the 12   day of
   February ,
2008 is between Coeur D'Alene Contract Mining hereinafter called
“Contractor,” is Box 1058, Pinehurst, Idaho 83850 and U.S. Silver - Idaho, Inc.,
hereinafter called "U.S. Silver.", whose address is P.O. Box 440, Wallace, ID
83873-0440,

    

    U.S.
Silver desires the services of Contractor to provide mining labor and services
as described in the Letter of Authorization

    

    Contractor
represents that entity is qualified and desires to perform the services
requested by U.S. Silver.

    

    NOW
THEREFORE, for and in consideration of the mutual promises and covenants herein
contained to be kept and performed by the parties hereto, the parties agree as
follows:

    

    I.
U.S. SILVER'S
REPRESENTATIVE

    

    1.
U.S. Silver's representative for the project shall be designated in the
individual letter(s) of Authorization which are contemplated by this
agreement.

    

    2.
U.S. Silver may, by a Notice in writing signed by U.S. Silver's authorized
agent, appoint additional or substitute representatives.

    

    II.
CONTRACTOR'S
REPRESENTATIVE

    

    1.
Contractor's Representative for the project shall be designated in the
individual letter(s) of Authorization which are contemplated by this
agreement.

    

    2.
Contractor may, by a Notice in writing signed by Contractor's authorized agent,
appoint additional or substitute representatives.

    

    III.
SCOPE OF
SERVICES

    

    1. Contractor shall perform
the services pursuant to the terms and conditions of this Agreement as set forth
in a separate Letter of Authorization to be delivered by U.S. Silver. The
individual Letter(s) of Authorization are incorporated into this Agreement by
this reference. Each individual Letter of Authorization shall refer to this
Agreement. If Contractor believes that any Letter of Authorization or any
written instructions is not clear with regard to any particular, it shall
promptly notify U.S. Silver to such effect and seek clarification.

      S.I.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.
All services performed by Contractor under this Agreement shall be in accordance
with the Letter of Authorization and written instructions to Contractor from
U.S. Silver's representative. The letter of Authorization and written
instructions shall more particularly describe the services to be performed, and
shall specify the place of performance, the date of performance, and the date of
completion of the services.

    

    3.
From time to time, Contractor shall engage in discussions with authorized U.S.
Silver personnel, especially with regard to interpretation of data or findings
developed or made while performing services under this agreement, to the end
that U.S. Silver is kept closely and timely advised.

    

    4.
Contractor shall not contact any third parties in connection with performance of
the contracting services without prior authorization from U.S.
Silver.

    

    5.
Upon the written request of the U.S. Silver's Representative, Contractor shall
prepare and deliver to U.S. Silver written progress reports or other pertinent
information as U.S. Silver may from time to time request.

    

    6.
Contractor agrees that it is responsible for and will pay promptly all costs and
charges incurred by itself for labor, machinery, tools, supplies, and expenses
used in completing the work as agreed, and to take such steps as are necessary
to ensure that no lien or other such charge related to the Contractor's work
shall be registered against the Company or the property. The Contractor further
agrees that it shall be responsible for the payment of all assessments for
Workers' Compensation, insurances, statutory burdens, Sales Taxes, and other
such applicable charges relating to its own labor and supplies purchased, and
the Contractor further covenants and agrees to keep all accounts
current.

    

    7.
The Contractor agrees that if any employee is unqualified to perform the jobs
assigned or is otherwise objectionable, that he shall be replaced.

    

    IV.
COMPENSATION AND
EXPENSES

    

    1.
Compensation for services performed under this Agreement shall be according to
the schedule set forth in Exhibit A - Fee Schedule, attached hereto. Except as
otherwise provided in Exhibit A, all amounts shall be in United States
dollars.

    

    2.
At the discretion of U.S. Silver, Contractor shall be subject to audit of
records, costs, and expenses billed to U.S. Silver using generally accepted
accounting and auditing procedures.

    

    3.
Except as otherwise provided in Exhibit A or Letter of Authorization, Contractor
shall prepare and submit to U.S. Silver on two week basis, or as otherwise
agreed, a detailed statement of charges. The statement shall set forth the dates
and locations of services and shall show the advanced footage and payment
requested for the work performed. Statements shall be directed to the attention
of the Kelly Grof, U.S. Silver - Idaho, Inc., P.O. Box 440, Wallace, ID
83873-0440. Subject to verification by U.S. Silver, payments of amounts due less
than existing set-offs, shall be made by U.S. Silver within twenty days after
receipt of such statements.

    

    4.
A daily work sheet showing the location, names, and work activity of all
employees charged to the U.S. Silver account shall be approved by the U.S.
Silver representative no

    

    

    
      	
              2

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    later
than two work days after the work was performed. A copy of this work sheet shall
accompany the request for payment.

    

    V.
AGREEMENT
DURATION

    

    1.
This Agreement shall commence on the date hereof and shall be in effect through
the completion of work, unless sooner terminated, or unless the work described
the Letter of Authorization is completed, or until the services of the
Contractor are no longer needed.

    

    2.
Either party may terminate this Agreement upon ten days written notice to the
other party at the addresses listed above, sent by certified mail with return
receipt requested. After such termination, Contractor may be instructed to
prepare and deliver to U.S. Silver a final report.

    

    VI.
COMPLIANCE WITH STATE
AND FEDERAL LAWS

    

    1.
Contractor shall comply with all requirements of any applicable State, Federal,
International, or Local laws, rules, or regulations. Contractor represents that
he has all licenses or other authorizations required to enable him to perform
services hereunder in the state or country where the services are to be
performed.

    

    2.
Contractor shall be fully and solely responsible for conducting all operations
under this Agreement at all times in such a manner as to avoid the risk of
bodily harm to persons and damage to property. Contractor shall obtain a
contractor's identity number from the Mine Safety and Health Administration
(MSHA) if so required by MSHA. Contractor must abide by U.S. Silver's safety
policies and best practices while working on any U.S. Silver
property.

    

    VII.
INDEPENDENT
CONTRACTOR

    Contractor
is and shall be in the performance of all work, services, and activities under
this Agreement an Independent Contractor. The parties acknowledge that U.S.
Silver has no right to control the details of Contractor's services. Contractor
shall not in any way or at any time be an employee or agent of U.S. Silver, and
shall not indicate or represent to any third patty that Contractor is an
employee or agent of U.S. Silver. Contractor shall have no power to commit U.S.
Silver to any third party.

    

    VIII.
PROFESSIONAL
RESPONSIBILITY

    Contractor
agrees to perform the services under this Agreement, in accordance with the
standards of care, skill, and diligence normally provided by competent
professionals in the performance of services in respect to work similar to that
contemplated by this Agreement.

    

    IX.
HOLD
HARMLESS

    Contractor
agrees to defend, indemnify, and hold U.S. Silver and affiliated and subsidiary
companies and their employees, agents, officers, and directors harmless against
all costs, loss, or damage (including attorneys fees) arising from Contractor's
breach of this agreement or negligence in the performance of the services
hereunder, except only claims arising out of accidents resulting from the sole
negligence of U.S. Silver.

    

    

    

    

    

    
      	
              3

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    X.
NONDISCLOSURE AND
OWNERSHIP OF WORK PRODUCT

    

    1.
Contractor shall not, without the prior consent of U.S. Silver, disclose the fad
that U.S. Silver and Contractor have entered into this Agreement.

    

    2.
All reports, publications, exhibits, films, data, conclusions, maps, and other
work product furnished by U.S. Silver to Contractor or obtained or developed by
Contractor under this Agreement and all information regarding U.S. Silver's
business plans, operations, properties, practices, methods, inventions, and
discoveries shall be and remain the property of U.S. Silver, and the same shall
be kept confidential by Contractor, who shall not disclose the same to any third
person directly or indirectly except upon the prior written consent of U.S.
Silver. Upon termination of this Agreement or upon the prior request of U.S.
Silver, Contractor will deliver such work product and information to U.S.
Silver.

    

    3.
Contractor shall not, within two years of the termination of this Agreement,
acquire any interest, whether direct or indirect, in any mining claims, leases,
mining rights, or fee lands in the area within one mile of the mining claims in
the Coeur/Galena mining area without U.S. Silver's prior written consent. Any
interest acquired in violation of this paragraph shall, at U.S. Silver's request
and at no cost to U.S. Silver be conveyed to U.S. Silver by
contractor.

    

    XI.
AMENDMENT-ENTIRE
AGREEMENT

    

    This
Agreement may only be amended in writing, signed by each party hereto. There
shall be no oral amendment of this written contract. This instrument, together
with any Letter of Authorization and written instructions, constitutes the
entire agreement between parties with respect to its subject matter and
supersedes any negotiations and discussions between the parties. There shall be
no implied terms or covenants.

    

    XII.
INSURANCE
COVERAGE

    

    Contractor
agrees to obtain the following insurance:

    

    1.
Workmen's Compensation Insurance; in full compliance with all applicable federal
and state laws, rules and regulations, covering all employees of Contractor
engaged in operation.

    

    2.
Comprehensive General Liability Insurance, including coverage for owned,
non-owned and hired vehicles, under which U.S. Silver shall also be named as an
additional insured, covering bodily injury and property damage arising from
operations and premises involved in the work to be performed, including
contractual liability, covering the obligation assumed in this Agreement, with
limits of not less than $1,000,000 for the injury or death of one person, and
with limits of not less than $2,000,000 for the injuries or death of more than
one person as a result of one accident or occurrence.

    

    3.
Professional Liability insurance having a limit of not less than $1,000,000 per
claim and in the aggregate.

    

    

    

    

    

    

    
      	
              4

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    4.
Contractor agrees to provide, within 10 days of the execution of this Agreement,
a certificate of Contractor's insurance coverage pursuant with the requirements
of this provision.

    

    XIV.
ASSIGNMENT

    

    Neither
this Agreement nor any payments due to Contractor hereunder shall be assigned,
nor shall any services provided for herein be subcontracted by Contractor
without first obtaining U.S. Silver's written consent.

    

    XV.
BINDING
EFFECT

    

    The
terms of this Agreement shall apply to and be binding upon the successors and
permitted assigns of the respective parties hereto.

    

    XVI.
APPLICABLE
LAW

    Any
disputes between the parties relating in any way to this Agreement shall be
governed by the substantive law of the State of Idaho without regard for any
conflict of laws or choice of laws rules or principles that would permit or
require the application of the laws of any other jurisdiction.

    

    XVII.
ENTIRE AGREEMENT

    This
Agreement constitutes the entire Agreement between the parties with respect to
the subject matter hereof.

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

    

    

    

    
      	
              U.S.
      SILVER - IDAHO, INC.

            	 
      	
              CONTRACTOR:

            
	 
      	 
      	 
      	
              COUER D’ALENE CONTRACT
      MINING

            
	 
      	 
      	 
      	 
      	 
      
	
              By:

            	
               MARK A
      HARTMANN

            	 
      	
              By:

            	
              STEVE
      IVIE

            
	 
      	 
      	 
      	 
      	 
      
	
              Name,
      Title

            	 
      	 
      	
              Name,
      Title

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              Mark
      A. Hartmann - President

            	 
      	
              Steve
      Ivie   /    owner

            

    

    

    

    

    

    

    

    

    

    

    

    
      	
              5

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              U.S.
      Silver

            
	
              [LOGO]

            	
              P.O.
      Box 440

            
	 
      	
              1040
      Lake Gulch Road

            
	 
      	
              Wallace,
      ID 83873

            
	 
      	
              208.752.1116

            

    

    

    EXHIBIT
A

    Mob/demob
and approved standby shall be charged at a rate of $65/hr per man.

    

    All
prices for the Contractor will be two times (2X) the rate listed
below

    

    With
a minimum of four miners and up to 6 miners, 4 hours of supervisor time will be
allowed per day at a rate of $85/hr. Supervision for more than six miners will
be agreed between the parties.

    

    Monthly
rental payment for jacklegs provided by Coeur d'Alene Mining Contractors shall
be $50/mo for each drill machine

    

    Breastdown
stopes 9' cut:

    Mining
width determined by the company based on vein width.

    Up
to a 7' mining width - $41.14/ft

    +7'-
8' mining width - $44.77/ft

    +8'
- 10' mining width - $52.03/ft

    +l0'
mining width - $56.86/ft

    Cleanout
will be paid at $7.26/ft when the cleanout is complete - including
finhoed

    

    Breast
up stopes 9' cut:

    Payment
will be the same as breastdown stopes, with the cleanout being paid as the stope
is mined. As an example, a stope up to a 7' mining width will pay
$48.40/ft

    

    Backstoping
6' cut:

    Up
to 7' mining width - $15.12/ft for drilling, $3.63/ft when blasting and ground
support is completed, and $11.49/ft when cleanout is completed.

    

    I
drifts 8' cut

    Up
to 7' mining width - $60.50/ft

    Track
mucking - $6.05/ft

    

    Track
drift with jumbo

    $75.02/ft

    $7.26/ft
for ditch

    

    Jackleg
drift

    $92.56/ft

    $6.66/R
for ditch

    

    3
cap raise prep

    $3872
for breaking to track + 23'

    $3872
for mucking and bolting

    $3872
for timber and complete services

    
      	
              6

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
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    Bunker
style prep

    Two
chutes and one manway

    $2500
for each complete chute to track + 38

    $6616
for the completed crib rnanway to track +38'

    

    5
cap raise prep

    $4840
for breaking to tk + 23'

    $4840
for mucking and bolting

    $4840
for complete timber and services

    

    

    3
Cap raise

    $12l/ft
when drilling complete

    $121/ft
when bolted and mucked

    $12l/ft
for complete timber and services

    

    Raise
Crib

    $27.22/ft
includes armor and seal

    

    Sandwall

    $53.85/ft
high ready for sand

    

    

    

    

    

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      	
              7

            	
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              Initials
      for Contractor   S.I.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Dear
Mr. Lambert and Mr. Ivie

    

    RE:
Letter of Authorization

    

    In
accordance with the terms and conditions of that certain Professional Services
Agreement dated   _  
between Coeur D' Alene Contract Mining and U.S. Silver - Idaho, Inc., your
professional services as a Mining Contractor will be required until U.S. Silver
determines the job has been completed.

    

    
      	
              I.

            	
              U.S. SILVER'S
      REPRESENTATIVE

            

    

    

    U.S. Silver's representatives shall be:
Kelly Grof and Mark Hartmann

    

    II.           CONTRACTOR'S
REPRESENTATIVE

    

    Coeur d’Alene Contract Mining's
representative shall be: Jeff Lambert or Steve Ivie

    

    III.           SCOPE OF
SERVICES

    

    1.
The specific mining contracting services to be performed are as
follows:

    a.   Stope prep on the
3700 and 4600 levels.

    b.   I drifts on the
3700 level

    

    2. Other conditions:

    a.
MSHA training is required for all Contractor personnel prior to work performed
on any U.S. Silver property.

    b. No illegal drugs, alcohol, or
firearms are permitted on site.

    c.
A pre-employment drug screen at a facility approved by U.S. Silver will be
required for all Contractor employees that work within this agreement. Drug
screen costs will be a responsibility of the Contractor.

    d. A post accident drug screen will be
required under the U.S Silver policy.

    e.
Contractor employees will be approved by U.S. Silver prior to the start of work
by that employee.

    f.
Materials and equipment provided by U.S. Silver to the Contractor shall
bereturned promptly to the Company at the request of the Company or within one
day of the termination of any or all employees working within this agreement.
Contractor shall reimburse U.S. Silver for the replacement cost of the materials
and equipment not returned.

    g.
Personal safety equipment and supplies shall be the responsibility of the
Contractor. U.S. Silver will provide self rescuers if necessary.

    h.
Equipment, tools, supplies, and other costs required for the mining or repair
activities will be the responsibility of U.S. Silver.

    i.
Any employee working for the contractor must have ATF clearance prior to working
underground.

    

    

    

    

    

    

    
      	
              8

            	
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              IV.

            	
              COMPENSATION AND
      EXPENSES

            

    

    The
compensation for such mining contracting services is as stated in Exhibit A of
the above referenced Agreement.

    

    
      	
              V.

            	
              WORK
      SCHEDULE

            

    

    

    U.S.
Silver will notify the Contractor of the weekly work schedule by Thursday of the
preceding week.

    

    
      	
              VI.

            	
              NON-DISCLOSURE AND
      OWNERSHIP OF WORK PROJECT

            

    

    

    Pursuant
to subparagraph 3 of Section X of the Professional Services Agreement,
Contractor shall not within two years from the date of the Letter of
Authorization acquire, without prior written consent, any interest, direct or
indirect, in any mining claims, leases, mining rights, or fee lands within the
U.S. Silver claim block areas or within a one mile radius surrounding the
existing claim peripheries, unless approved in writing by U.S. Silver's
representative.

    

    Should
you have any questions or wish to discuss this Letter of Authorization please
contact the U.S. Silver representative at the following address:

    

    U.S. Silver - Idaho, Inc.

    1041 Lake Gulch

    P.O. Box 440

    Wallace, ID 83873-0440

    

    I
have enclosed two complete copies of this Letter of Authorization and the
associated Professional Services Agreement. Please sign and return one copy of
each to acknowledge your receipt of both and your agreement to perform the
consulting services authorized hereby. Also append a copy of the insurance
certificate as specified in Paragraph XI1 of the Professional Services
Agreement.

    

    U.S.
Silver-Idaho, Inc.

    Mark
A. Hartmann

    President

    

    

    MARK
HARTMANN

    Signature
and date

    

    Agreed
to this   12  
day of
February, 20 08
.

    

    Coeur
d'Alene Contract Mining

    

    STEVE
IVIE

    Print
name and title

    

    

    

    

    

    

    
      	
              9

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    STEVE
IVIE    2-12-08

    Signature
and date

    

    

    

    

    

    

    

    

    

    

    

    

     

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      	
              10

            	
              Initials
      for U.S. Silver MAH

            
	 
      	
              Initials
      for Contractor   S.I.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]