**Employment      Agreement - Managing Director**

| 1 | Definitions |
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|   | 1.1 | “Agreement”                means this Agreement as amended from time to                time; |
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|   | 1.2 | “Board”                means the Board of Directors of PT Cendana                Indopearls; |
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|   | 1.3 | “Business                Day” means a day on which banks are open for business in Indonesia                excluding Saturday, Sunday and public                holidays; |
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|   | 1.4 | “the                Company” means PT Cendana Indopearls, a company registered in the Republic                of Indonesia; |
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|   | 1.5 | The                term Dollars ($) refers to Australian                Dollars. |
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| 2 |   | Duties                and Responsibilities |
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|   | 2.1 | You                shall hold the position of Managing Director of the Company for the                term                of this Agreement as defined in clause 3.1, but this appointment                shall be                subject to you retaining your directorship of both the Company and                its                associate, Atlas South Sea Pearl Limited, in accordance with their                respective constitutions. Your employment is at all times subject                to the                provisions of termination incorporated in this                Agreement. |
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|   | 2.2 | You                shall, unless prevented by ill-health, devote the whole of your time                during the business hours of the Company to the business of the Company                and shall use your best endeavours to promote the interests and welfare                of                the Company. |
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|   | 2.3 | As                the Managing Director of the Company, you shall undertake such duties                as                the Board from time to time directs. You are also required to undertake                the duties that are directed to you in terms of the management of                the                Company by the Board of Directors of Atlas South Sea Pearl Limited.                You                will be expected to carry out such hours of work as may from time                to time                be reasonably required to fulfil these duties which will be included                in                your normal hours of work. |
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|   | 2.4 | Your                duties and responsibilities are set out in the attached job description.                Because the job description cannot be all encompassing, your                responsibilities may extend beyond those listed in the attached job                description. |
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| 3 |   | Contract              Term  |
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|   | 3.1 | The                Commencement Date of this Agreement shall be 1st                January 2007. |
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|   | 3.2 | The                term of this Agreement will be three (3) years commencing from the                Commencement Date. This term may be extended at the mutual written                consent                of both parties. |
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|   | 3.3 | This                Agreement will terminate three (3) years from the Commencement Date                unless                otherwise extended under clause 3.2 or at an earlier date as may                be                determined under clause 9. |
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| 4 |   | Remuneration                Package |
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|   | 4.1 | You                shall be entitled, by way of remuneration for services carried out                under                this Agreement, to an annual net salary of $156,000. The benefit                shall be                available in equal monthly instalments paid in arrears into such                bank                account or in such a manner as shall be nominated by you and agreed                by the                Company. |
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|   | 4.2 | In                addition to the remuneration paid above, you shall be entitled to                the                following allowances and benefits: |
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|   | 4.2.1 | Travel                and Accommodation: |
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|   |   | You              are entitled to a travel allowance of up to $12,000 per annum, which              may              be used for the purpose of airfares and accommodation for you and your              family. The Company will be responsible for arranging and paying for              this              travel. Any unused portion of this allowance will not accrue as an              entitlement from year to year. |
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|   | 4.2.2 | Education                Allowance |
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|  |   | This              allowance is provided to assist you with the cost of education for              Liam              and Holly during the term of this contract. This allowance shall be              capped              at $25,000 per annum.  |
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|   | 4.2.3 | Accommodation                Allowance |
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|   |   | Accommodation              will be provided for you and your family by the company up to a limit              of              $15,000 per annum for the term of the contract. This will be paid for              by              the Company with all withholding taxes deducted and reported by the              Company on your behalf. All bonds and other deposits that are required              in              relation to the rental of this premises will be paid by the Company              and              will be your responsibility to ensure that these are refunded at the              end              of the lease. Where it is appropriate, the premises that is rented              by you              shall be made available for the use of storage and other work related              facilities. |
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|   | 4.2.4 | The                Company will pay for the use of a mobile telephone whilst your are                working                in Indonesia. Private telephone calls shall be kept to a minimum                on this                service. |
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|   | 4.2.5 | Insurance                will be provided for you and your family in relation to Travel, Medical                expenses, Medical evacuation and Kidnap and Ransom. While you are                in the                employ of the Company, you will be covered by Workers Compensation                (death                and disability) and Personal Accident insurance. While you are a                Director                of the Company, you will be covered by Directors and Officers insurance                for actions taken against you whilst acting in this                capacity. |
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|   | 4.3 | The                remuneration paid to your for your services to the Company, including                allowances, will be reviewed annually, commencing 12 months from                the                Commencement Date. |
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| 5 |   | Additional                entitlements |
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|   | 5.1 | You                shall be entitled to 36 days of leave per annum (including weekends                and                public holidays) and 10 days of sick leave per annum. Annual leave                shall                accrue up to a maximum of 60 days during the term of the                Agreement. |
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|   | 5.2 | The                Company shall reimburse you for all reasonable out of pocket expenses                incurred along with all reasonable travel and accommodation costs                incurred                by you in the course of carrying out your duties under this Agreement.                You                shall produce to the Company the proper documentation to verify such                expenses for reimbursement |
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| 6 | Restriction |
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|   | 6.1 | You                shall not be a party to the trading of any of the shares or other                securities of Atlas South Sea Pearl Limited while you are in the                possession of any market sensitive information about the Company’s                business activities or operations. Any trading of the securities                of Atlas                South Sea Pearl Limited by you must be advised to the Company Secretary                of                Atlas South Sea Pearl Limited within five (5) days of this                transaction. |
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|   | 6.2 | If                you cease employment with the Company for whatever reason, you may                not                solicit the services of any existing employees of the Company for                the                benefit of any subsequent employment or business venture that you                may                undertake without the express approval of the Board of the                Company. |
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| 7 | Confidentiality |
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|   | 7.1 | You                may not, except as authorised or required by your duties, divulge                to any                person whatsoever any of the trade secrets or confidential information,                processes or dealings or any information concerning the organisation,                business, finances, transactions or affairs of the Company or any                associated entities which may come to your knowledge during the term                of                this Agreement. You shall keep with complete secrecy all confidential                information entrusted to you and shall not attempt to use any such                information in any manner which may injure or cause loss either directly                or indirectly to the Company or its business and its                associates. |
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|   | 7.2 | You                have no obligation to keep confidential pursuant to clause 7.1 any                information which: |
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|   | 7.2.1 | becomes                public knowledge; |
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|   | 7.2.2 | loses                its confidentiality through passage of time;                and |
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|   | 7.2.3 | loses                its confidentiality through a change in                circumstances. |
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| 8 | Ownership                of intellectual Property |
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|   | 8.1 | Any                discovery, invention, secret process or improvement in procedure                made or                discovered by you or any other employee of the Company under your                direction while you are employed (including past employment) by the                Company or its associates shall belong to and be the absolute property                of                the Company and its associates. |
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|   | 8.2 | If                requested to do so by the Company, you agree that you will (whether                during                or after the termination of this employment) apply or join in applying                for                letters of patent or other similar protection for any such discoveries,                invention, process or improvement as stated above and you will execute                all                instruments necessary to secure such                rights. |
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|   | 8.3 | The                Company retains ownership of any written material created by you                in the                performance of your duties under this Agreement in which copyright                does or                may subsist. |
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| 9 | Termination |
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|  | 9.1 | Your                engagement as Managing Director pursuant to this agreement may be                terminated on a date specified by the Company if any one or more                of the                circumstances mentioned in the following clause exist and the Company                gives notice to you specifying the circumstances complained of and                indicating its intention to terminate your                employment. |
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|  | 9.2 | The                circumstances referred to in the proceeding clause are where                you: |
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|  | 9.2.1 | commit                a serious or persistent breach of any of the provisions of this                Agreement; |
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|  | 9.2.2 | are                guilty of any grave misconduct or wilful neglect in the discharge                of your                duties under this Agreement; |
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|  | 9.2.3 | die                or become of unsound mind; |
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|  | 9.2.4 | commit                an act of bankruptcy or enter into, subsequent to the date of this                Agreement, any agreement or composition with your                creditors; |
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|  | 9.2.5 | are                  convicted of an indictable offence;                  or |
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|  | 9.2.6 | are                for a period of four (4) consecutive months or for a period aggregating                four (4) months within the term of the Agreement, unable, through                accident, illness or other physical or mental incapacity, to perform                your                duties under this Agreement. |
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|  | 9.3 | You                may terminate this Agreement at any time by providing one (1) months                written notice to the Company if: |
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|   | 9.3.1 | any                payment due from the Company to you pursuant to this Agreement remains                unpaid for a period of thirty (30)                days; |
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|   | 9.3.2 | the                Company breaches any clauses of this Agreement and such breach is                not                remedied within fourteen (14) days of written notice by                you. |
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|   | 9.4 | If                there is mutual agreement between the Company and you, this Agreement may                be terminated for a reason that is not mentioned above by either                party                giving three (3) months (or some other agreed period) written notice                to                the other party detailing the reasons for the Agreement being terminated.                In the event of such a termination taking place, there shall be no                special                termination payments made by the Company unless such a payment is                mutually                agreed between both parties. |
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| 10 | Indemnity |
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| 11 | General |
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|  | 11.1 | Duties                as Director of Associated Companies |
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|   |   | You              will be required to fulfil additional tasks separate to this Agreement              as              a Director of Atlas South Sea Pearl Limited. These responsibilities              and              duties are accepted as being part of the fulfilment of your obligations              under this Agreement with the Company. |
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|   | 11.2 | Governing                Law |
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|   |   | This              Agreement shall be governed by the Law of Western Australia except              to the              extent that the labour laws of Indonesia may              apply. |
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| The                Common Seal of PT Cendana**Indopearls                  was hereunto affixed by**authority                    of the Board of Directorsin                      the presence of: X___________________________President                        Director | )))) |    |
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| Signed                by Joseph Taylor | ) | X      |
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| in                the presence of:     | ) |   |

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**JOB      DESCRIPTION**

**(Managing      Director)**

| **1** |   | **General                Administration** |
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|   |                   1.1 | General                supervision of all management staff including the promotion of harmonious                working relationships between management and                staff; |
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|   |                   1.2 | Respond                to queries and incidents in the                field; |
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|   |                   1.3 | Personnel                administration including hiring, dismissal, dispute resolution, review                of                performance and review of remuneration for all Perth based staff                and                Indonesian based expatriates; |
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|   |                   1.4 | Provide                for staff training and development in Indonesia and Australia to                ensure                that the Group’s objectives are                met; |
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|   |                   1.5 | Ensure                that management succession planning is in place for the rotation                of senior                staff who leave the organisation; |
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|   |                   1.6 | Review                insurance requirements and deal with claim issues as they                arise; |
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|   |                   1.7 | Prepare                information for Board and Executive Committee                meetings; |
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|   |                   1.8 | Communicate                with Directors, suppliers and statutory authorities in Australia                and                Indonesia; |
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|   |                   1.9 | Occupation,                health & safety review; |
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|   |                   1.10 | Advise                on immigration issues for expat. staff in                Indonesia; |
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|   |                   1.11 | Establish                and maintain good working relationships with all levels of government                in                Indonesia. |
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| **2** |   | **Financial** |
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|   |                   2.1 | Oversee                the preparation, presentation and discussion with the Board and management                of annual budget forecasts and the reporting to the Board on prior                year                results against budget forecasts for that                period; |
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|   |                   2.2 | Prepare                business plans as required by the                Board; |
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|   |                   2.3 | Review                the preparation of annual reports and half yearly reports including                review                of operations and all other compliance matters within the statutory                time                limits; |
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|   |                   2.4 | Liaise                with auditors and tax advisors as required to ensure compliance with                laws                and maximisation of financial planning                opportunities; |
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|   |                   2.5 | Supervise                the preparation of monthly management                accounts; |
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|   |                   2.6 | Management                of cash flow, ensuring that sufficient reserves are available as                directed                by the Board; |
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|   |                   2.7 | Ensure                that expenditure controls for the purchase of fixed assets and other                high                value items such as nuclei and consulting services are in place and                adhered to by Perth and Indonesian based                operations. |
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| **3** |   | **Operational** |
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|   |                   3.1 | Ensure                that best practice oyster husbandry techniques are adopted in the                field                for the best possible pearl production                results; |
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|   |                   3.2 | Ensure                complete documentation of technology, know how and operational procedures                to ensure smooth succession in the event of key managers leaving                the                group’s employment; |
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|   |                   3.3 | Continue                to promote the best possible nucleating techniques and practices                and                ensure that staff are sufficiently trained to perform this                task; |
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|   |                   3.4 | Visit                Waigeo and other pearl farming sites (if they are developed in the                future)                as required to ensure operations are running as                reported; |
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|   |                   3.5 | Oversee                the planning of pearl harvests, including the review of nuclei                requirements, followed by the shipment of the pearls from Indonesia                and                customs clearance to Australia. |
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