**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 Atlas South Sea Pearl                Ltd; |
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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 Atlas South Sea Pearl Ltd (ACN 009 220 053), a company                registered in Australia; |
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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, PT Cendana Indopearls, 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’s pearling activities by the Board of Directors of PT Cendana                Indopearls. 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 gross salary of $75,000. 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 | The                Company will pay for the use of a mobile telephone whilst your are                working                in Australia. Private telephone calls shall be kept to a minimum                on this                service. |
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|   | 4.2.2 | The                Company will make payments to your Australian superannuation fund                equivalent to the amount payable under the Superannuation Guarantee                Contribution Scheme (9% of gross salary at the time of signing this                contract). |
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|   | 4.2.3 | You                will be covered by Directors and Officers insurance for actions taken                against you whilst acting in this                capacity. |
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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 the Company 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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|   | 11.2 | Governing                Law |
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| The                Common Seal of **Atlas South** **Sea                Pearl Limited** was hereuntoaffixed                by authority of the Boardof                Directors in the presence of:  X___________________________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** |   | **Liaison/Public                Relations** |
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|   |                    1.1 | Represent                the company and its activities in a positive light to the press,                investment community, regulatory authorities,                etc. |
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|   |                    1.2 | Communicate                with the press, shareholders, stock brokers (including meetings and                presentations in Australia and the USA as required), bankers and                regulatory authorities in Australia such as the ASX, ASIC and the                USA such                as NASDAQ and the SEC; |
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|   |                    1.3 | Communicate                with Indonesian authorities such as the BKPM and the tax office as                required; |
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|   |                    1.4 | Actively                involve the company’s Indonesian representatives in its activities in                Indonesia; |
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|   |                    1.5 | Represent                the company in pursuit of other business and joint venture                opportunities. |
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| **2** |   | **Marketing** |
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|   |                    2.1 | Communicate                with Pearlautore International (and other wholesale organisations                as                required) regarding harvest forecasts, pearl prices and terms offered                by                customers, marketing strategies and other value adding                opportunities; |
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|   |                    2.2 | Negotiate                selling contracts with pearl wholesalers as                required; |
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|   |                    2.3 | Maintain                personal contact with individuals and organisations in the pearl                industry                on behalf of the company; |
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|   |                    2.4 | Where                possible, provide feedback to field operations to ensure that the                most                valuable pearl types in relation to colour, size and shape are being                produced. |
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