Exhibit 10.3
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U.S.
Silver
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[LOGO]
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P.O.
Box 440
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1040
Lake Gulch Road
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Wallace, ID 83873
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208.752.1116
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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.
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
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Initials for U.S. Silver
MAH
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Initials for Contractor
S.I.
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later than two work days after the work was
performed. A copy of this work sheet shall accompany the request
for payment.
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