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dard Drilling Services Agreement This Agreement, made this 20°i day of June 2001 between: Spectrum Exploration, Inc. and California Concentrate Co. 2365 Wigwam Dr. 18678 North Hwy 99 Stockton, CA 95205 Acampo, CA 95112 hereinafter called_"Contractor hereinafter called Client" _ _.. �'y�.� SCOPE AND FEES Contractor agrees to provide services to Client for the project at: California Concentrates Facility!Acampo, CA consistent with the scope and for the fees as described in the document attached dated: June 14th, 2001. GENERAL CONDITIONS 1. Contractor shall invoice Client periodically for services performed under this Agreement. Client shall pay such invoices upon receipt. Invoices not paid within thirty(30)days of the invoice date shall be subject to a late payment charge of 1%percent per month. The invoice amounts shall be presumed to be correct unless Client notes Contractor in writing within fourteen(14)days of receipt. 2. Contractor shall perform services in a manner consistent with the standard of care and skill ordinarily exercised by members of its profession practicing under similar conditions in the geographic vicinity and at the time the services are performed. Contractor warrants that all materials and services are free from material defect and conform to all requirements of all applicable federal, state and local laws and regulations. Contractor warrants that it is duly licensed and/or certified to perform services under this Agreement. This Agreement does not create a fiduciary responsibility to Client by Contractor. 3. Client shall secure the permission necessary to allow Contractor's personnel and equipment access to the Project site at no cost to Contractor. 4. Contractor is not responsible for the completion or quality of work which is dependent upon or performed by the Client or third parties not under the direct control of Contractor,nor is Contractor responsible for their acts or omissions a for any damages resulting therefrom. 5. Client and Contractor each agree to defend, indemnify and hold harmless the other from any claim, damage or liability for injury, loss, cost or expense, including, but not limited to reasonable attorneys'fees in defending such matters and in enforcing the terms of this paragraph,to the extent such claims or damages result directly or indirectly from the negligent actions or willful misconduct of each parry. Neither party shall indemnify the other against liability for damages to the extent caused by the negligence or willful misconduct of the other. 6. All disputes between Contractor and Client shall be subject to non-binding mediation. Either party may demand mediation by serving a written notice stating the essential nature of the dispute and the amount of time or money claimed, and requiring that the mediation proceeds within sixty(60)days of service of notice. The mediation shall be administered by the American Arbitration Association or by such other person or organization as the parties may agree upon. No action or suit may commence unless the mediation does not occur within ninety(90) days after service of notice, the mediation occurred but did not resolve the dispute,or a statute of limitation would elapse if suit was not filed prior to sixty(60)days after service of notice. 7. Contractor shall obtain at its own expense Workers Compensation Insurance, Employers Liability Insurance, General Liability Insurance, and Automobile Liability Insurance for bodily injury and property damage. If requested by Client,Contractor will furnish evidence or coverage with a certificate or insurance poor to commencement of the work. Contractor assumes the risk of damage to its own supplies and equipment. 8. Contractor shall be responsible for jobsite safety of its awn employees and of its subcontractors,If applicable. 9. This Agreement may be terminated by either party upon ten (10) days written notice sent first class mail, return receipt requested. In the event of a termination,unless due to the default of Contractor,Client shall pay for all of Contractors reasonable charges for work performed,project-speck materials and demobilization. 10. Except for actions,such as for enforcement of mechanic's liens,which are required by statute to be brought in a specific venue, in the event that litigation is instituted under the terms of this Agreement,the same is to be brought and tried in the judicial jurisdiction of the court of the county in which this Agreement is executed. Client waives the right to have the suit brought,or tried in,or removed to,any other country or judicial jurisdiction. 11. Neither Client nor Contractor shall assign its interest in this Agreement without the written consent of the other. 12. This Agreement, including attachments incorporated herein by reference, represents the entire agreement and understanding between 4W-parties. The relationship between the parties is limited to the performance of services as set forth herein and does not constitute a joint venture, partnership or loyee- employer relationship. Any moderations to this Agreement shall be in writing and signed by authorized representatives of the parties. The s of this Agreement shall prevail over any different a additional terms contained in Client's purchase order of other fortes unless agreed ir� fng by rector. One condition or covenant b either party shall not be construed as a waiver of an other term,condition a amens ormaewaiversaFanyterm, Y Y.. Spectrum Expl ration, Inc. BY: By: i Print Name: Bre da Crawford Print Name: ANDY ALE ER Title: Operations Manager Title: V.PRESIDENT Date: June 20, 2001 Date: JUNE 20 2001 Spectrum Exploration, Inc. 2365 Wigwam Drive 209.465.8712 tel Stockton,California 209.465.8773 fax 95205