Document:

REAL
      ESTATE NOTE

    

    
      
        	$480,000.00	
                Birmingham, Alabama

                July 27,
                  2005

              

      

    

     

    The
      undersigned, for value received, promise to pay to the order of AULT
      GLAZER BODNAR ACQUISITION FUND, LLC the
      sum
      of Four
      Hundred Eighty Thousand and no/100 Dollars ($480,000.00) together
      with interest upon the unpaid portion thereof from date at the rate of
three
      percent (3%) above the “Prime Rate” as published in The
      Wall Street Journal. All
      unpaid principal, interest, and charges shall be due and payable in full on
      July
      31, 2010, which date shall be the maturity date of this Note. Said installment
      shall be payable at: 100 Wilshire Blvd., Suite 1500, Santa Monica, CA 90401
      or
      at such other place or places as the owner or holder hereof may from time to
      time designate.

    

    This
      note
      is secured by mortgage on real estate, executed to the payee herein. In the
      event of default under the terms of said mortgage, or in the event any
      installments shall remain unpaid for as much as ten days after the same becomes
      due, the holder hereof shall have the right and option to declare the entire
      indebtedness secured hereby to be at once due and payable.

    

    Each
      maker and endorser hereby waives all right of redemption under the Constitution
      and Laws of Alabama, and agrees to pay the cost of collection, including a
      reasonable attorney’s fee, if this obligation is not paid at maturity. Demand,
      protest and notice of protest, and all requirements necessary to hold them
      liable, are hereby waived by each and every maker and endorser of this
      note.

    

    This
      note
      is given, executed and delivered under the seal of the undersigned.

    

    If
      a
      scheduled installment payment is 10 days late, a late chare of 5% of the overdue
      installment will be charged but not less than 50 cents nor more than $100.00
      for
      each late charge.

    

    CAUTION:
      IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN
      IT.

     

    
      	 	
              Automotive
                Services Group, LLC

              

              

              /s/
                D. W. Grimsley,
                Jr.                      

              By: 
                D.
                W. Grimsley, Jr.

              Its:  
                ManagerBirmingham,
        Alabama

      August
        10, 2005

      

      ADDENDUM
        I

      

      This
        Addendum I (“Addendum I”) is an addendum to the Real Estate Note (“Note”)
        executed by D. W. Grimsley, Jr., (the “Undersigned”) the manager of Automotive
        Services Group, LLC, on July 27, 2005. This is also an Addendum to the Future
        Advance Mortgage Assignment of Rents and Leases and Security Agreement
        (“Security Agreement”) executed by the Undersigned on July 27, 2005. The Note
        and Security Agreement are fully incorporated by reference in this Addendum
        I.

      

      The
        Undersigned, for value received, promise to pay to the order of AULT GLAZER
        BODNAR ACQUISITION FUND, LLC, the sum of Seventy
        Five Thousand Dollars and no cents ($75,000)
        together
        with interest upon the unpaid portion thereof from the date at the rate of
        three
        percent (3%) above the “Prime Rate” as published in The
        Wall Street Journal.
        This
        note is secured by mortgage on real estate, executed to the payee herein.
        

      

      The
        Undersigned agrees that the $75,000 is allocated as follows:

      

      
        	 	
                1.

              	
                Ten
                  Thousand Dollars and no cents ($10,000) to the petty cash account
                  at First
                  Commercial Bank.

              

      

      
        	 	
                2.

              	
                Fifty
                  Thousand Dollars and no cents ($50,000) to Robert Hughes & Company for
                  building costs.

              

      

      
        	 	
                3.

              	
                Fifteen
                  Thousand Dollars and no cents ($15,000) to Wash Guys Solutions
                  for
                  equipment deposit. 

              

      

      

      This
        Addendum is given, executed and delivered under the seal of the
        Undersigned.

       

      
        	 	
                Automotive
                  Services Group, LLC

                
 

                /s/
                  D. W. Grimsley,
                  Jr.                  
                   

                By:
                  D.
                  W. Grimsley, Jr.

                Its:
                  ManagerBirmingham,
      Alabama

    September
      23, 2005

    

    ADDENDUM
      II

    

    This
      Addendum II (“Addendum II”) is an addendum to the Real Estate Note (“Note”)
      executed by D. W. Grimsley, Jr., (the “Undersigned”) the manager of Automotive
      Services Group, LLC, on July 27, 2005, the Future Advance Mortgage Assignment
      of
      Rents and Leases and Security Agreement (“Security Agreement”) executed by the
      Undersigned on July 27, 2005, and Addendum I (“Addendum I”) dated August 10,
      2005. The Note, Security Agreement and Addendum I are fully incorporated by
      reference in this Addendum II. 

    

    The
      Undersigned, for value received, promise to pay to the order of AULT GLAZER
      BODNAR ACQUISITION FUND, LLC, the sum of eighty
      seven thousand five hundred fifty two dollars and seventy five cents
      ($87,552.75) (“Advance”)
      together
      with interest upon the unpaid portion thereof from the date at the rate of
      three
      percent (3%) above the “Prime Rate” as published in The
      Wall Street Journal.
      This
      advance was to fund construction costs. This note is secured by mortgage on
      real
      estate, executed to the payee herein. 

    

    This
      Addendum II fully incorporates by reference the Note, Security Agreement and
      Addendum I for an aggregate Advance to date in the amount of
      $657,672.75.

    

    This
      Addendum II is given, executed and delivered under the seal of the
      Undersigned.

    

    
      	 	
              Automotive
                Services Group, LLC

              

              

              /s/
                D. W. Grimsley,
                Jr.                  
                 

              By:
                D.
                W. Grimsley, Jr.

              Its:
                ManagerExhibit 10.8
EMPLOYMENT AGREEMENT

THIS AGREEMENT is made effective as of May 01, 2004 (the "Effective Date").

BETWEEN:

          Bay Resources Ltd, a company  incorporated under the laws of Delaware,
          having its principal  office at 580 St. Kilda Rd. Level 8,  Melbourne,
          Victoria 3004 Australia (the "Company")

AND:

          Pinchas  T.  Althaus,  having  a  residence  at 675  Empire  Blvd.  3L
          Brooklyn, NY 11213 U.S.A. (the "Executive")

WHEREAS:
The  Company  wishes to retain the  services  of the  Executive  to provide  the
services  hereinafter  described  during  the  term  hereinafter  set  out.  NOW
THEREFORE  in  consideration  of the  mutual  covenants  and  agreements  herein
contained  and for  other  good and  valuable  consideration,  the  Company  and
Executive undertake and agree as follows:

Term
1.   The Company shall employ the  Executive  for a period  commencing as of the
     Effective Date and continuing until and including December 31, 2006.

Title
2.   The Executive will have the title of Chief Operating Officer.

Duties

3.   The Executive  shall serve the Company and any  subsidiaries of the Company
     in such capacity or  capacities  and shall perform such duties and exercise
     such powers  pertaining to the  management  and operation of the Company as
     may be  determined  from  time to time by the  board  of  directors  of the
     Company  consistent  with his  position  as Chief  Operating  Officer.  The
     Executive shall:

     (a)  devote his endeavours and best efforts during normal business hours to
          the business and affairs of the Company;

                                      -17-
<PAGE>

     (b)  perform those duties that may  reasonably be assigned to the Executive
          diligently and faithfully to the best of the Executive's abilities and
          in the best interests of the Company;

     (c)  use his best  efforts to promote  the  interests  and  goodwill of the
          Company;

     (d)  comply with all laws  applicable  to the  Company in carrying  out the
          Company's business;

     (e)  ensure that the policies and  procedures  of the Company as advised or
          communicated  are followed and complied with; (f) faithfully serve the
          Company;  and  (g)  comply  with  and  observe  all  lawful  requests,
          directions and restrictions made or imposed by a Director.

4.   From time to time the Company  will review and update the duties so that it
     accurately  outlines the current scope of the position.  This  procedure is
     jointly conducted by the Company in consultation with the Executive.  It is
     the Company's aim to reach agreement to reasonable changes. If an agreement
     is not possible the Company  reserves the right to insist on changes to the
     Executive's duties after consultation with the Executive.

5.   The Executive  shall be permitted to perform  outside  business  endeavours
     provided  that  such  activities  do  not  materially   conflict  with  the
     Executive's duties hereunder.

Hours of Work

6.   The  Executive  shall work such  hours  appropriate  to a position  of this
     seniority

Reporting Procedures

7.   The  Executive  shall  report to the  person  holding  the  office of Chief
     Executive  Officer.  The  Executive  shall  give a  written  report  on the
     operations  and business  affairs of the Company on a monthly  basis to the
     Secretary  by the third  business day and advise to the best of his ability
     and in accordance with reasonable  business  standards on business  matters
     that may arise from time to time during the term of this Agreement.

Remuneration

8.   The annual base salary payable to the Executive for his services  hereunder
     shall be US$110,000, exclusive of bonuses, benefits and other compensation.
     This  salary is an all  inclusive  salary  and is  provided  in lieu of all
     payments and obligations  specified in any applicable  awards including the
     weekly  wage  rate  of  ordinary  hours;  industry,   district  and  roster
     allowances;  leisure days;  public  holidays;  overtime;  shift and weekend
     penalties; leave loading payments and any other payments.

                                      -18-
<PAGE>

9.   The Company shall  provide the  Executive  with a statement of earnings and
     deductions in respect of each salary instalment paid.The annual base salary
     payable to the  Executive for his services  hereunder  for each  successive
     year of the term of this  Agreement,  exclusive  of bonuses,  benefits  and
     other  compensation,  shall  increase  by a  percentage  of the annual base
     salary  for the  immediately  preceding  year at a rate  determined  by the
     Remuneration  Committee of the Company.  The annual base salary  payable to
     the  Executive,  shall be payable in monthly  instalments in arrears on the
     1st day of each month or in such  other  manner as may be  mutually  agreed
     upon,  less,  in any case,  any  deductions  or  withholdings  required  by
     applicable law.  Payment of the salary will be by electronic funds transfer
     to a bank account in the USA nominated by the Executive.

10.  The Company shall provide the Executive with Executive benefits  comparable
     to those provided by the Company to other senior  executives of the Company
     generally and shall permit the Executive to  participate in any bonus plan,
     share purchase plan, retirement plan or similar plan offered by the Company
     to its  senior  executives  generally  in  the  manner  and  to the  extent
     authorized by the  Remuneration  Committee of the Company.  In addition the
     Executive  will be able to participate  in such extended  health,  medical,
     disability and insurance or other benefit plans  established by the Company
     and made available to other executives of the Company.

Stock Options

11.  The Company shall grant the Executive options to purchase 750,000 shares of
     common stock of the Company (the  "Options") at a per share  exercise price
     of US$1.00,  with the Options  vesting  over the period of the  contract as
     follows:  250,000 of the  Options  will vest as of the  Effective  Date,  a
     further  250,000  will vest at the mid-term  date of the  contact,  and the
     remaining  250,000  will vest on December  31st 2006.  The Options  will be
     issued subject to applicable  securities  laws, the availability of Options
     within the  Company's  stock option plan (the "Plan") and may be subject to
     hold periods.  In addition,  the Options shall be subject to the provisions
     of the Plan and the Company's  standard form of stock option  agreement (as
     executed, the "Stock Option Agreement").

12.  In the case of a Change  of  Control  (defined  below),  all  Options  then
     outstanding  will  immediately  vest for the  purpose of such  transaction.
     Furthermore,  in the event of a Qualifying Transaction (defined below), the
     acquirer,  whether a so-called "Capital Pool Company" ("CPC") or otherwise,
     shall issue to the Executive the same number of options to purchase  common
     shares of such  acquirer (or if no such shares exist a class of  securities
     having rights  similar to those  generally held by holders of common stock)
     under the same terms and  conditions as the Options at the per share market
     price of such acquirer on the date that such  transaction  is  consummated.
     Furthermore,  in the event of a Reverse  Takeover  (as such term is defined
     under  Policy 5.2 Changes of  Business  and  Reverse  Takeovers  of the TSX
     Venture  Exchange)  where  all or  substantially  all of the  assets of the
     Company are  transferred to a third party,  the Executive shall receive the
     same number of options to purchase common shares of such third party (or if
     no such shares exist a class of securities  having rights  similar to those
     generally  held by  holders  of  common  stock)  under  the same  terms and
     conditions as the Options at the per share market price of such third party
     on the date that such transaction is consummated

                                      -19-
<PAGE>

13.  The  term  "Change  of  Control"  shall  mean  any  one  of  the  following
     transactions:  (i)  the  acquisition  in  a  transaction  or  a  series  of
     transactions (including a merger) by any person or organization, other than
     the Company or any of its  subsidiaries  or any  Executive  benefit plan or
     related  trust of the  Company or any of its  subsidiaries,  of  beneficial
     ownership of fifty percent (50%) or more (on a fully diluted  basis) of the
     combined  voting power of the then  outstanding  voting  securities  of the
     Company  entitled to vote generally in the election of directors or persons
     holding similar positions with the Company (including,  without limitation,
     a Qualifying  Transaction (as defined below);  (ii)  individuals who, as of
     the  date of this  Agreement,  constitute  the  Board of  Directors  of the
     Company (or  similar  body  elected to manage the  affairs of the  Company)
     cease for any  reason to  constitute  at least a  majority  of the Board of
     Directors (or similar body) as constituted  from time to time; or (iii) the
     sale or other  disposition of all or substantially all of the assets of the
     Company in one  transaction or series of related  transactions,  including,
     without  limitation,   a  Qualifying  Transaction.   The  term  "Qualifying
     Transaction" shall mean a transaction involving the acquisition of stock or
     assets by a CPC  where  following  such a  transaction  the CPC gains  full
     listing privileges on the Toronto Stock Exchange.

Holidays

14.  The  Executive  shall be entitled to three weeks' paid  holidays per fiscal
     year of the Company, excluding Company holidays and religious holidays, and
     at a time  approved  in  advance  by the  Chief  Executive  Officer,  which
     approval shall not be  unreasonably  withheld,  delayed or conditioned  but
     shall take into  account the staffing  requirements  of the Company and the
     need for the timely performance of the Executive's responsibilities. In the
     event that the  Executive  decides not to take all the vacation to which he
     is entitled in any fiscal year, the Executive  shall be entitled to take up
     to one week of such  vacation in the next  following  fiscal year at a time
     approved in advance by the Chief Executive Officer.

Expenses

15.  The  Executive  shall be  reimbursed  for all  reasonable  travel and other
     out-of-pocket  expenses  reasonably incurred by the Executive in connection
     with carrying out his duties hereunder. For all such expenses the Executive
     shall  supply the  Company  with  copies and  records  of all  invoices  or
     statements  in  respect of which the  Executive  seeks  reimbursement.  The
     Company may at its sole discretion provide reasonable expense advances upon
     request  and  will   promptly   reimburse   out-of-pocket   expenses   upon
     presentation of such vouchers and invoices.  Any expenses to be incurred by
     the Executive in excess of US$1,000 shall require the prior written consent
     of the Company.

Policies, Procedures and Instructions

16.  Policies,  procedures  and  instructions  exist for the  effective and safe
     operation  of the  Company's  business  and the  welfare and  interests  of
     Executives.  The  Executive  is  expected  to  comply  with  all  policies,
     procedures  and  instructions  that are  applicable  to their work area and
     responsibilities.  When  required  during the term of this  Agreement,  the
     Company  shall  exercise  its right to  replace or modify  existing  rules,
     policies,  procedures or  instructions or introduce new ones with which the
     Executive  will  be  required  to  comply.  A  transgression  of a  policy,
     procedure or instruction  may render the Executive  liable to  disciplinary
     action  or  termination.  Information  about new  policies  or  changes  to
     existing policies will also normally be provided in circulars,  e-mails, on
     notice boards and otherwise brought to the attention of Executives required
     to observe them.

                                      -20-
<PAGE>

Occupational Health and Safety

17.  The  Executive  acknowledges  that the  Company has a legal  obligation  to
     provide  a  safe  workplace  for  the   Executive.   The  Executive  has  a
     responsibility  to the  Company,  and to his or her fellow  Executives  and
     employees to assist the Company in providing a safe  workplace by observing
     all  relevant  workplace  Occupational  Health  and  Safety,  First Aid and
     workplace   accident  policies  and  procedures.   A  transgression  of  an
     Occupational Health and Safety,  First Aid or Workplace Accident work rule,
     policy,  procedure  or  instruction  may  render  the  Executive  liable to
     disciplinary  action or termination.  Information about Occupational Health
     and Safety rules will normally be provided in  circulars,  on notice boards
     and otherwise brought to the attention of all Executives.

Trading in Shares

18.  Refer to Attachment 1 and 2.

Confidentiality

19.  The  Executive  is required to covenant and warrant with and to the Company
     that during the term of his/her  employment and at all times thereafter the
     Executive  will not divulge  either  directly or  indirectly,  knowingly or
     inadvertently any knowledge or information concerning the business, affairs
     or  property  of  the  Company  other  than  as  required  by  law;  to the
     Executive's  legal or  financial  advisers  for the  purpose  of  obtaining
     professional  advice; or to the extent necessary to perform the Executive's
     duties  under  this  Agreement;  and the  Executive  will keep  secret  and
     confidential  the  secrets of the  Company  and will treat all  information
     acquired in the course of the Executive's  engagement  under this Agreement
     regarding the policies,  processes,  activities,  financial  affairs of the
     Company as secret and confidential.

20.  All  confidential  records,  documents and other papers,  together with any
     copies or extracts thereof, made or acquired by the Executive in the course
     of employment  shall be the property of the Company and must be returned to
     the Company on the termination of the Agreement.

21.  This clause shall survive termination of this Agreement for a period of ten
     years.

Conflict of Interest

22.  Executives  are not to engage in private  business  activities  which place
     them in a position of  conflict of interest  with the Company by gaining or
     standing to gain,  personal  profit or  position by the use of  information
     regarding  the  Company  activities  or further  activities  planned by the
     Company or by engaging in activities that adversely  affect the Executive's
     on the job performance.

Inventions

23.  Any  discovery  or invention or secret  process made or  discovered  by the
     Executive  during the currency of this  Agreement in connection  with or in
     any way  affecting or relating to the business of the Company or any of its
     subsidiaries  or capable of being  used or  adapted  for use  therein or in
     connection  therewith shall forthwith be disclosed to the Company and shall
     belong to and be the  absolute  property  of the Company or such one of its
     subsidiary  companies  whichever  is  the  applicable  company,  as  may be
     nominated by the Company for that purpose.

                                      -21-
<PAGE>

24.  The  Executive  shall,  if and when required to do so,  (whether  during or
     after the termination of this Agreement) at the Company's  expense apply or
     join in applying for letters patent or other similar protection in any part
     of the world for any such discovery,  invention,  process or improvement as
     aforesaid and shall execute all instruments and do all things  necessary to
     vest the said letters patent or other similar  protection when obtained and
     all  right  to an  interest  in the  same  in the  Company  or its  nominee
     absolutely  and as sole  beneficial  owner or in such  other  person as the
     Company may require.

Communication system

25.  It is agreed that compliance with reporting and/or communication structures
     established  by the Company will form part of the terms and  conditions  of
     the Executive.

26.  It is  understood  that  it  is  the  Executive's  responsibility  to  show
     initiative  in  ensuring  that  he  or  she  is   facilitating  a  suitable
     information flow.

27.  It is agreed that the Executive  will actively  participate  in all and any
     communication/reporting  programmes that the Company  introduces during the
     term of this Agreement.

28.  It is agreed  that during the term of this  Agreement  the  Executive  will
     supply in full and in a timely manner to the Company all  information  that
     the  Company  may  reasonably  require  for its  personnel/human  resources
     records.

Termination

For Cause

29.  The Company may terminate the employment of the Executive without notice or
     any payment in lieu of notice for cause. The term "cause" shall mean

     (a)  if there is a  repeated  and  demonstrated  failure on the part of the
          Executive to perform the material duties of the  Executive's  position
          in a competent  manner and where the Executive fails to  substantially
          remedy the failure within a reasonable  period of time after receiving
          written  notice of such failure from the  Company,  provided  that the
          Executive  shall  have no less  than  thirty  (30)  days to cure  such
          breach;

     (b)  if the  Executive  is convicted  of a criminal  offence  (other than a
          misdemeanour); or

     (c)  if the Executive disobeys reasonable  instructions given in the course
          of employment by the Chief Executive Officer or the board of directors
          of  the  Company  that  are  not  inconsistent  with  the  Executive's
          management  position  and  not  remedied  by the  Executive  within  a
          reasonable  period  of time  after  receiving  written  notice of such
          disobedience,  provided  that the  Executive  shall  have no less than
          thirty (30) days to cure such breach.

                                      -22-
<PAGE>

For Disability/Death

     (d)  This  Agreement may be terminated by the Company upon thirty (30) days
          written notice to the Executive if the Executive  becomes  permanently
          disabled.  The  Executive  shall be deemed to have become  permanently
          disabled if in any year during the employment  period,  because of ill
          health, physical or mental disability,  or for other causes beyond the
          control of the Executive,  the Executive has been continuously  unable
          or unwilling or has failed to perform the  Executive's  duties for one
          hundred twenty (120)  consecutive  days, or if, during any year of the
          employment  period,  the Executive has been unable or unwilling or has
          failed to perform his duties for a total of one hundred  eighty  (180)
          days, consecutive or not. The term "any year of the employment period"
          means  any  period  of  twelve  (12)  consecutive  months  during  the
          employment period.

     (e)  This Agreement  shall  terminate  without notice upon the death of the
          Executive.

Severance Payments

30.  Upon termination of the Executive's employment at any time during the Term

     (a)  for cause; or

     (b)  by the voluntary  termination  of  employment by the Executive  (other
          than for good reason);

the  Executive  shall  not be  entitled  to any  severance  payment  other  than
compensation  earned by the Executive before the date of termination  calculated
pro rata up to and including the date of termination.

Good Reason

31.  The Executive may  terminate  his  employment  with the Company at any time
     during the Term  without  notice to the Company for good  reason.  The term
     "good reason" shall mean the occurrence of any one of the following:  (i) a
     material  reduction or diminution in the Executive's  authority,  duties or
     responsibilities (including,  without limitation, with respect to office or
     title) hereunder;  (ii) any reduction in the then applicable base salary or
     the  Executive's  eligibility  to  participate  in any  Executive  benefits
     program,   retirement  plan  or  executive   incentive  bonus  programs  as
     contemplated  by Section 11 hereof;  (iii) unless agreed by you in advance,
     any  relocation  of your place of work to a location  more than thirty (30)
     miles from New York,  New York USA; or (iv) any other  material  failure on
     the  part of the  Company  to  comply  with  any  other  provision  of this
     Agreement  or  any  stock  option  agreement  executed  by the  parties  as
     contemplated herein.

                                      -23-
<PAGE>

32.  If the Executive's employment is terminated during the Term for good reason
     or any other reason  other than the reasons set forth in paragraph  29, the
     Executive shall be entitled to receive the lesser of:

     (f)  the total of:

          (i)  3 months' salary at the then applicable base salary rate; and

          (ii) the present value, as determined by the Chief Executive  Officer,
               acting  reasonably,  of the benefits described in paragraph 8 and
               10 that  would be  enjoyed  by the  Executive  during the next 24
               months  assuming his  employment  was not terminated and assuming
               the then current  level of benefits  were  continued for those 24
               months.

     The payment  described in this paragraph 32 is the only  severance  payment
     the  Executive  will  receive  in the  event  of the  termination  of  this
     Agreement for reasons contemplated in paragraph 31.

33.  If the  Executive's  employment  is terminated as a result of the permanent
     disability  or death of the  Executive,  the  Executive  or his estate,  as
     applicable,  shall be entitled  to  receive,  within 30 days of the date of
     such  termination,  the balance of the base salary that would  otherwise be
     paid to the Executive  during the remainder of the term of this  Agreement.
     The Executive agrees to reasonably  comply,  at the Company's sole expense,
     with all  requirements  necessary for the Company to obtain life  insurance
     for the Term.

Governing Law

34.  This  Agreement  shall be governed by and construed in accordance  with the
     laws of the State of New York.

Severability; Amendment; Integration

35.  If any provision of this Agreement,  including the breadth or scope of such
     provision,  shall be held by any  court  of  competent  jurisdiction  to be
     invalid  or  unenforceable,  in  whole  or  in  part,  such  invalidity  or
     unenforceability  shall not affect the  validity or  enforceability  of the
     remaining provisions, or part thereof, of this Agreement and such remaining
     provisions,  or part thereof,  shall remain  enforceable and binding.  This
     Agreement may not be changed or modified in whole or in part,  except by an
     instrument executed by both parties hereunder.  Other than the Plan and the
     Stock  Option  Agreement,  this  Agreement  contains  the entire  agreement
     between  the  parties  with  respect  to  the  subject  matter  hereof  and
     supersedes all prior and contemporaneous understandings with respect to the
     subject matter hereof, whether written or oral.

Currency

36.  In this Agreement, all references to currency mean United States of America
     currency.

Notice

37.  Any  notice  or  other  communication  required  or  permitted  to be given
     hereunder  shall be in writing  and either  delivered  by hand or mailed by
     prepaid   registered  mail.  At  any  time  other  than  during  a  general
     discontinuance  of postal service due to strike,  lock-out or otherwise,  a
     notice so mailed shall be deemed to have been received  three business days
     after the postmarked date thereof or, if delivered by hand, shall be deemed
     to have been  received at the time it is  delivered.  If there is a general
     discontinuance  of postal service due to strike,  lock-out or otherwise,  a
     notice  sent by  prepaid  registered  mail  shall be  deemed  to have  been
     received  three  business  days  after the  resumption  of postal  service.
     Notices  shall be addressed  as follows:

                                      -24-
<PAGE>

     (g)  if to the Company at: 580 St. Kilda Rd. Level 8,  Melbourne,  Victoria
          3004 Australia  Attention:  Mr. Joseph I. Gutnick  Facsimile:  +61 (3)
          8532-2805

     (h)  if to the Executive at: 725 Montgomery St. Brooklyn, N.Y. 11213 U.S.A.
          Attention: Pinchas T. Althaus Facsimile: +1 (718) 504-4870

Indemnification.

38.  The Company shall indemnify and hold the Executive harmless, to the maximum
     extent permitted by law and the Company's By-Laws or similar organizational
     document(s),  from and against any claim or liability  asserted against the
     Executive based on, arising out of or otherwise relating to the performance
     by the  Executive  of any of his  duties  hereunder,  except  for claims or
     liability  arising from the  Executive's  gross  negligence,  recklessness,
     wilful  misconduct or breach of this  Agreement.  The Company shall include
     the Executive in its Directors and Officers insurance plan.

                  [Remainder of Page Intentionally Left Blank]

                                      -25-
<PAGE>

IN WITNESS  WHEREOF this Agreement has been executed by the parties hereto as of
the day and year first above written.

Signed, Sealed and Delivered by                  )
Pinchas T Althaus in the presence of:            )

s/s Ann Marie Murison                            )
--------------------------------------------
Witness (Signature)                              )
Ann Marie Murison                                )s/s Pini Althaus
                                                 )*
--------------------------------------------
Name (please print)                              )
                                                 )
Level 8, 580 St Kilda Road Melbourne             )
Address                                          )
                                                 )
Australia                                        )
--------------------------------------------
City, Province                                   )
                                                 )
                                                 )
The Corporate Seal of Bay Resources Ltd was      )
affixed in the presence of:                      )
                                                 )
Per:   s/s JI Gutnick                            )
       -------------------------------------
       Authorized Signatory                      )
                                                 )
Per:   s/s PJ Lee                                )
       -------------------------------------
       Authorized Signatory                      )
                                                 )
                                                 )

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