GEOPHYSICAL SERVICES AGREEMENT
Contract # 11192- page 1
GEOPHYSICAL SERVICES AGREEMENT
THE AGREEMENT, made and entered into this 26th day of October, 2011, by and between
AMERILITHIUM CORPORATION (hereinafter called CLIENT) doing business at 000 Xxxxxxxx Xxxxxx
Xx., Xxx. 000 Xxxxxxxxx, XX 00000 and ZONGE International, Inc. (hereinafter referred to as ZERO), an
Arizona corporation doing business at 0000 Xxxx Xxxx Xxxxxx Xxxx, Xxxxxx, Xxxxxxx, 00000 XXX.
WITNESSETH:
1. At the request of CLIENT, ZERO will commence, undertake and thereafter diligently proceed with
electrical geophysical surveys in accordance with this GEOPHYSICAL SERVICES AGREEMENT.
2. This AGREEMENT covers surveys conducted according to the following:
Job Number: 11192
Location: Near Tonopah, Nevada
Project Name: Full Xxxxx
Survey Type: CSAMT
Survey Budget: $59,500
(Schedule D)
(Total Cost will not exceed $59,500 without written approval of client)
3. Attachment A describes the CONDITIONS OF AGREEMENT.
4. Attachment B is the Survey Charge Schedule and Attachment C is the Survey Charge Procedure to be
used with this AGREEMENT; Attachment D is the job estimate/proposal.
5. All amendments, modifications and extensions of this Agreement must be in writing by either party and
evidenced by mutual agreement of CLIENT and ZERO (signed by both parties).
IN WITNESS THEREOF, the parties hereto have executed this AGREEMENT as of the day and date first
above written.
ZONGE INTERNATIONAL, INC.
AMERILITHIUM CORPORATION
____________________________
_______________________________
Xxxxxx Xxxxxxx
Xxxxxxx Xxxxxxx
Chief Geophysicist
CEO
Contract # 11192- page 2
Attachment A
CONDITIONS OF AGREEMENT
1. CLIENT will supply necessary maps of the area to be surveyed and will acquire all necessary access
rights. Line location work as required is the responsibility of CLIENT but can be done by ZERO personnel
as part of the survey at the request of CLIENT. Brushing lines for access is the responsibility of CLIENT.
2. CLIENT shall provide reasonable security for ZERO personnel and equipment working on CLIENT
projects.
3. ZERO will conduct the survey as requested by CLIENT and shall provide for the purpose of such survey
the appropriate field and geophysical equipment with trained crew as required.
4. It is understood and agreed that ZERO is and shall be deemed and treated as an independent contractor
while engaged in the performance of the work herein defined.
5. Neither ZERO nor its employees will disclose information or show data and records gathered during this
survey to unauthorized third parties or use the same except for the sole purpose of the work for CLIENT
contemplated hereby without prior written authorization from CLIENT.
6. ZERO agrees to indemnify and hold harmless CLIENT against any and all loss and expense by reason of
liability imposed by the law upon CLIENT for personal injuries or death or damage to property arising in
consequence of the performance of this AGREEMENT by ZERO if such bodily injury, death, or damage to
property arises in whole or in part out of the negligence or any grounds of legal liability on the part of
ZERO.
7. ZERO will obtain and continue in force during the terms of this AGREEMENT at its own expense all
insurance specified below with insurers which are reasonably acceptable to CLIENT. ZERO shall furnish to
CLIENT and forward to its insurance advisors prior to commencement of services hereunder, certificates of
insurance evidencing the coverage required hereunder. CLIENT shall be named as additional insured under
ZERO’s Public Liability Insurance. The insurance to be obtained and continued in force by ZERO is the
following:
(a) Workmen's Compensation and Occupational Disease Disability Insurance to the extent required by
the laws of Arizona and jurisdiction wherein the work is to be performed.
(b) Comprehensive Public Liability Insurance with a limit of $1,000,000.00 per occurrence.
(c) Automobile liability insurance with a per occurrence limit of $500,000. for vehicles supplied by
ZERO, whether owned, leased or rented by ZERO, or borrowed from a third party.
Such insurance shall be primary to any other insurance in the event of loss and all retainages or deductibles
shall be ZERO's sole responsibility. ZERO agrees to furnish CLIENT on request certificates evidencing
such coverage.
In recognition of the relative risks and benefits of the Project to both CLIENT and ZERO, the risks have
been allocated such that CLIENT agrees, to the fullest extent permitted by law, to limit the liability of
ZERO to CLIENT for any and all claims, losses, costs, damages of any nature whatsoever or claims
expenses from any cause or causes, including attorney’s fees and costs and expert-witness fees and costs, so
that the total aggregate liability of ZERO to CLIENT shall not exceed $500,000.00, or ZERO’s total fee for
services rendered on the Project, whichever is greater. It is intended that this limitation apply to any and all
liability or cause of action however alleged or arising, unless otherwise prohibited by law.
Contract # 11192- page 3
8. ZERO will at its own expense repair any damage to or replace all property of whatever kind or character,
whether publicly or privately owned, including the property of CLIENT, which may result from operations
under this AGREEMENT.
9. ZERO will exercise reasonable care in the performance of work hereunder, and will take the special
precautions necessary to avoid harm from conditions existing or created during the progress of the work
containing an unreasonable or peculiar risk of harm to persons or property.
10. ZERO will comply with all applicable laws, ordinances, and governmental regulations, including
permits and licenses required to render professional services, but CLIENT will obtain and pay for required
permits and licenses related to land access rights. Invoiced amounts submitted under this contract are net to
ZERO: job related taxes and government fees, whether applied direct or indirectly, with respect to the
conduct of work performed under this agreement are job expenses. ZERO will make all contributions with
respect to employment which pertain to ZERO's work hereunder. ZERO will pay promptly all costs and
expenses associated with its performance hereunder, except for those costs and expenses specifically
designated as being CLIENT's responsibility.
11. CLIENT shall pay ZERO in U.S. funds for services as supported by crew reports at the rates shown in
Attachment B.
12. CLIENT shall have the right to audit the books and records relating to the costs under the
AGREEMENT. ZERO agrees to maintain such books and records for a period of two years from the date
such costs were incurred and to make such books and records available to CLIENT at any time within the
two-year period.
13. ZERO shall submit to CLIENT invoices describing the services charged to CLIENT's reasonable
satisfaction and according to the terms of the AGREEMENT. Payment is to be made in the following
manner:
(a) Prepayment of funds to be earned hereunder by ZERO, in the amount of $5,950.00 (10%), which
shall be due prior to mobilization of the field crew and following receipt of invoice.
(b) Interim invoices are allowed each two weeks for completed field work, data processing and expenses.
CLIENT prepayment shall be used as a credit towards payment of the interim and/or final invoice. All
invoices are net and due within 30 days of presentation. Interest charges of one percent (1%) per month
will be added to all balances over 30 days.
(c) The final report shall be invoiced at the time of delivery to CLIENT.
14. After mobilization of the field crew to the job site, CLIENT has the right to terminate this
AGREEMENT by notice in writing after a minimum of two (2) days production. In addition, CLIENT will
pay for appropriate demobilization charges. Prior to mobilization, CLIENT may terminate this
AGREEMENT in writing without penalty, and ZERO will return to CLIENT prepayment funds minus
actual expenses incurred by ZERO in preparation for the project(s) covered by this AGREEMENT.
15. ZERO will perform and execute all work and services required pursuant to this survey in a proper,
careful and workmanlike manner. ZERO will act to protect the environment in accordance with CLIENT
policy and will comply with all applicable environmental laws and regulations. ZERO will obey all
occupational, health and safety laws, regulations and guidelines specified by CLIENT and will comply with
all applicable occupational health and safety laws and regulations.
16. ZERO will not be liable to CLIENT for delays caused by weather, necessary equipment repairs or other
acts beyond its control. CLIENT shall be invoiced only for food and lodging expenses during down-time
due to equipment failure/repairs or during maintenance.
Contract # 11192- page 4
17. Notwithstanding anything to the contrary contained herein, all records, drawings, maps, plans, data,
reports, or other graphic information gathered, prepared, and processed by ZERO under this AGREEMENT
shall be the sole property of CLIENT. A portion of such property shall be timely delivered to CLIENT in
accord with Attachment B. ZERO shall be responsible for the safe storage of the remainder of CLIENT's
property produced hereunder until such time as CLIENT may request its delivery to or on behalf of
CLIENT. None of CLIENT's property shall be copied, reprinted, distributed, published, or disclosed to
third parties by ZERO under any circumstance without the prior written consent of CLIENT.
This project will be billed according to the rates set out in Attachment B.
Contract # 11192- page 5
Attachment B
SURVEY CHARGE SCHEDULE FOR
Full Xxxxx Project, Xxx County, Nevada
PROVIDED BY ZONGE
4 Zonge Personnel
1 GDP-32 receiver
2 four-wheel drive vehicles
All required peripherals
PROVIDED BY CLIENT
Land access permits for the survey area
SURVEY SPECIFICATIONS
Scalar CSAMT along 3 lines as shown on the attached map totaling approximately 22,600 meters,
using 50 meter station spacings.
SYSTEM CHARGES:
Production time:
$ 3,450.00 per 10 hour field day
Standby and Weather time:
$
172.50/hour
EXPENSES:
Included in the above system charges
DATA PROCESSING/PLOTTING:
$750
FINAL REPORT GENERATION
Logistics Report
Included in above Data Processing charges.
ASSUMPTIONS:
Food and lodging available within 45 minutes of the project area.
Contract # 11192- page 6
Attachment C
SURVEY CHARGE PROCEDURES
C.1. CHARGE DEFINITIONS
PRODUCTION is defined as field time utilized for the purpose of obtaining field data, including two-way
transport each day from the crew's lodging facilities.
WEATHER is defined as climatic or atmospheric conditions that cause unsafe or impractical working
conditions. The maximum WEATHER that can be charged on any day is the actual time lost, not to exceed
10 hours.
STANDBY is defined as survey time lost through no fault of ZERO. Such situations could include, but not
limited to, restricted access to the field site, delays in the project due to CLIENT or CLIENT's agents,
failure of CLIENT-owned equipment, and delays related to government orders. The maximum STANDBY
that can be charged on any day is the actual time lost not to exceed 10 hours.
MAINTENANCE is defined as periodic routine repair and maintenance of field equipment. Generally one
day in 15 is taken for maintenance. Regardless of how many days are utilized for MAINTENANCE, not
more than 2 days in 15 may be charged to CLIENT hereunder.
DOWN TIME is defined as lost time due to failure of ZERO equipment or planning error on ZERO's part.
DAY OFF is defined as time off for the crew. Generally one day off is taken per week, subject to specific
requirements of each job.
MOBILIZATION or DEMOBILIZATION is defined as the transportation time for crew and equipment
moving between Reno and the project site, Nevada. This time is charged as STANDBY unless specified
otherwise.
C.2. FIELD CHARGE POLICY
1. COMBINED SYSTEM/LABOR CHARGE
Includes charges for instrumentation and personnel. Billed for each day on the project except down days,
maintenance days, travel days, and days off.
A standard production day is ten (10) hours of field work including travel time. However CLIENT may be
charged more or less than ten hours depending on the actual crew time logged as production. Charges to
CLIENT will be billed on an hourly basis.
2. JOB EXPENSE CHARGE
(a) Per Diem Expenses: typically $46 (or meals at cost) where not provided by CLIENT or included in
the daily cost.
(b) Lodging: At cost if not provided by CLIENT or included in the daily cost.
(c) Gasoline: At cost if not provided by CLIENT or included in the daily cost.
(d) Field Supplies (Expendable Materials): At cost if not included in the daily cost.
(e) Misc: At cost with CLIENT approval
3. OTHER SERVICES
Special requests for geophysical consulting services, select processing/plotting tasks, and computer
modeling can be provided at an additional charge.
Contract # 11192- page 7
Attachment D
Zonge International can acquire the data for a daily rate of $3,450.00 inclusive of
expenses for fuel, motel and meals. This rate is for a four-person crew and is based on a
10 hour day which includes travel from the location of accommodations to and from the
site. Down-time due to inclement weather will be charged at half-rate. Down time due to
Zonge equipment malfunction or other reason that is the fault of Zonge, will not be billed.
We estimate 14 to 16 days to complete the CSAMT survey.
Mobilization to and from the project, from Sparks, Nevada will be covered in a one-time
charge of $ 1,000.00.
Data processing and preparation of a logistics report covering data acquisition will be
charged at $ 750.00.
Survey lines can be established by Zonge for a daily rate of $850.00 per day, if requested.
We estimate three days to complete the survey control which includes travel time from
Sparks to the project site and back. Survey will be established using a Trimble Pro-XRS
sub-meter grade differential GPS. Line control in the field will utilize NAD27 UTM 11N
coordinates.
Instrumentation will consist of a Zonge GDP-32II, multi-channel receiver. The signal
source will be a either a Zonge GGT-30, 30 KVA transmitter powered by a ZMG-30
motor-generator or a Zonge GGT-10, 10 KVA transmitter powered by a ZMG-09 motor-
generator, depending on signal strength and accessibility of transmitter sites.
Deliverable products will consist of a digital data acquisition logistics report covering
data acquisition, with the following:
- Line Location Map
- Pseudo sections of observed Cagniard resistivity and impedance phase data.
- Digital data will be provided on a CD-ROM.
To summarize the estimated costs:
Mobilization:
$
1,000.00
Data acquisition: 14-16 days @ $3,450.00:
$ 48,300.00 – 55,200.00
Data acquisition logistics report preparation:
$
750.00
Total estimated costs:
$ 50,050.00 – 56,950.00
Optional Grid GPS stake-out: 3 days @ $850.00 $ 2,550.00
Total estimated costs including GPS stake-out:
$ 52,600.00 – 59,500.00
Contract # 11192- page 8
Production rates depend on access, weather and ambient electrical noise conditions, all of
which are beyond our control.
Figure 1: Map of the Full Xxxxx Project CSAMT lines provided by Client.