Document:

Loan Agrement between Avraham Bahry and Rodia Mihali

LOAN
AGREEMENT

DATED
AS OF ________________, 2004 BY AND BETWEEN:

Avraham
Bahry, of 1 Gan HaShikmim Street, Ganei-Yehuda - Savyon, Israel, and Rodia
Mihali, whose address for the purpose of service under this Agreement shall be
c/o Adv. Joseph Stabholz, Weizman 72, Tel-Aviv 62308 (collectively, the
“Lenders” and each of them a “Lender”); 

AND:

Hotel
Outsource Management International, Inc., a Delaware corporation, whose address
for the purposes of this Agreement shall be 63 Wall Street, Suite 1801, New
York, New York 10005 (the “Borrower”) 

WHEREAS:

The
Borrower requires immediate funds, which it has not yet succeeded in procuring
from banking institutions in the US and for which the proceeds from its recent
rights offering did not suffice; and 

WHEREAS:

The
Borrower has requested that the Lenders loan these funds to the Borrower in the
amount and under the terms set forth in this Agreement below; and 

WHEREAS:

Each
Lender is willing to make a loan to the Borrower, all subject to and in
accordance with the terms of this Agreement, 

THEREFORE,
THE PARTIES HAVE MADE CONDITION AND AGREED AS FOLLOWS:

 

	 	
      1
	
      Preamble
      and Headings 

1.1 The
Preamble, and any Appendices, Exhibits or Schedules to this Agreement,
constitute an integral part hereof. 

1.2 Section
headings are for convenience purposes only, and may not be used in the
construction or interpretation of this Agreement. 

	 	
      2
	
      The
      Loan 

2.1 Upon the
terms and conditions set forth in this Agreement, each Lender agrees to loan to
the Borrower the principal amount of USD 350,000.- (three hundred and fifty
thousand US Dollars) (the “Loan”). 

2.2 The Loan
will be made available to the Borrower within 3 business days of the date hereof
(hereinafter: the “Loan Date”), by means of SWIFT wire transfer to the
Borrower’s account No. 0605079633 at HSBC Republic Bank, a division of HSBC Bank
USA, in the branch located at 452, Fifth Avenue, New York, NY 10018.

	 	
      3
	
      Interest

3.1 The
Borrower shall pay interest on the entire outstanding balance of the Loan,
commencing as of the Loan Date, at the rate of 10% per annum (the “Interest”).

3.2 On the
Repayment Date (as defined below), the Borrower shall pay the Lenders, pari
passu, all of the Interest that has accrued and is outstanding on the Loan up
until that date. 

	 	
      4
	
      Repayment

4.1 The
Borrower shall repay the entire Loan, with all accrued Interest, in a single,
cash payment to each Lender, pari passu, no later than the 6 month anniversary
of the Loan Date (the “Repayment Date”). 

4.2 Notwithstanding
the foregoing, and notwithstanding the Lenders’ declaration that, as at the date
hereof, they would prefer for the Loan to be repaid in cash, the Lenders
nevertheless agree that the Borrower may elect to effect repayment of any part,
or all, of the Loan and/or accrued Interest, pari passu to the Lenders, no later
than the Repayment Date, by means of the issue to the Lenders of shares of the
Borrower’s common stock. The purchase price of each share so issued shall be
deemed to be $0.25, such that the outstanding balance of the Loan plus accrued
Interest shall be reduced, at the time of issue of such shares, by the sum of
$0.25 per share so issued. If, for example, the Repayment Date falls exactly on
the 6 month anniversary of the Loan Date, and the outstanding balance of the
Loan and the accrued Interest is $735,000, then the issue, on that date, of
2,940,000 shares of the Borrower’s common stock, to the order of the Lenders, as
set forth herein, would constitute full repayment of the Loan and all accrued
Interest. Furthermore, the Borrower will be entitled to combine repayment of the
Loan in the manner described in this Section 4.2 above with a rights offering to
all of its shareholders, at a price per share of $0.25, such that any shares
purchased by the Lenders in such rights offering may, at the election of either
the Lenders or the Borrower, be deemed fully paid, with the outstanding balance
of the Loan being reduced accordingly, by the total number of shares purchased
by each Lender multiplied by $0.25. 

4.3 If the
Borrower elects to repay any part of the Loan and/or accrued Interest by means
of the issue of shares as set forth in Section 4.2 above, then the shares must
be duly issued in the Lenders’ names, or to their order, pari passu, and
registered in the Lenders’ names, or to their order, in the Borrower’s share
register, and duly executed share certificates must be delivered to the Lenders,
or to their order, all no later than the Repayment Date. 

4.4 For
avoidance of any doubt, the Borrower undertakes to fully repay the Loan and all
accrued Interest, no later than the 6 month anniversary of the Loan Date, either
by means of a cash payment as set forth in Section 4.1 above, or by means of a
share issue, as set forth in Sections 4.2 and 4.3 above, or by means of a
combination of such cash payment and such share issue, provided that all such
repayments are made in the same way for both Lenders, pari passu. 

4.5 The
Borrower may at any time prepay to the Lenders, pari passu, any part of the
outstanding balance of the Loan and accrued Interest, by any of the methods set
forth in Section 4.4 above. 

4.6 Without
derogating from any statutory remedies and/or other remedies available under the
terms of this Agreement, if the Borrower is in default under this Agreement and
does not fully repay the Loan and accrued Interest in the manner set forth
above, no later than the Repayment Date, then each Lender shall be entitled to
elect, by means of written notice to the Borrower, whether repayment of such
Lender’s portion of the outstanding balance of the Loan and accrued Interest
must be made by means of cash payment, or by means of share issue under the
principles outlined above, or by a combination of these methods, and the
Borrower undertakes to comply with such election by each Lender. 

	 	
      5
	
      Late
      Payment

5.1 Without
derogating from any statutory remedies and/or other remedies available under the
terms of this Agreement, any sums not paid by the Borrower at the appointed time
under this Agreement shall be subject to interest at the highest rate of
interest then charged by Bank Leumi of Israel in respect of Dollar sums
overdrawn beyond an agreed credit facility, such interest to accrue from the
date payment was originally due until the date of actual payment; this interest
rate shall initially be determined on the date payment was originally due, and
thereafter monthly until the date of actual payment. Nothing in this Section 5
may be construed in any way as derogating from the Borrower’s undertaking and
obligation to repay the Loan and pay the Interest as set forth above. Arrears
interest accruing pursuant to the terms of this Section 5 shall, for all intents
and purposes, be deemed part of the Interest, as defined herein.

	 	
      6
	
      Specified
      Purpose of Loan

6.1 The
Parties hereby confirm and agree that the Borrower requested the Loan for the
sole purpose of using all of said Loan to invest in the Borrower’s subsidiary,
Hotel Outsource Services, Inc. (“HOS”), and to procure that a further $300,000
will be invested in HOS by Bartech Systems International, Inc. (“BSI”) and that
all of said Loan, together with said investment by BSI, will be used by HOS to
fund the purchase and installation of Bartech minibars, pursuant to purchase
orders which have been and/or will soon be entered into with BSI (the “Specified
Purpose”). The Specified Purpose will be subject to adjustment and amendment, by
mutual written consent of the Parties. 

6.2 The
Borrower hereby undertakes to use the Loan solely for the Specified Purpose and
not to use any part of the Loan for any purpose other than the Specified
Purpose.

6.3 The
Borrower hereby recognizes and acknowledges that the Lenders’ consent to make
the Loan to the Borrower in accordance with the terms hereof is inter alia
subject to and in reliance upon the Borrower’s undertaking as set forth in
Section 6.2 above, which is a fundamental condition of this
Agreement.

	 	
      7
	
      Borrower’s
      General Covenants

7.1 Borrower
shall keep proper records and books of account in accordance with generally
accepted accounting principles consistently applied, and shall maintain,
preserve and keep all of its properties and assets in good working order and
condition, subject to ordinary wear and tear. 

7.2 Borrower
shall conduct its affairs in such manner as is appropriate for a public company
whose shares are traded on the New York OTCBB, and in accordance with all laws
and regulations by which it is bound. 

7.3 Other
than in the ordinary course of business or otherwise as agreed to in writing by
the Lenders, on a case by case basis, Borrower shall not create, incur, or
assume any indebtedness, nor shall it create incur, assume or suffer any
mortgage, pledge, lien, security interest, charge or encumbrance of any kind or
nature in or upon any of its property or assets, whether now owned or hereafter
acquired, nor shall it sell, lease, assign, transfer or otherwise dispose of any
of its assets, including its accounts receivable.

	 	
      8
	
      Representations
      and Warranties

The
Borrower hereby represents and warrants to the Lenders as follows:

8.1 that it
is duly organized and existing under the laws of the jurisdiction in which it
was incorporated, with the requisite corporate or other power to own and operate
its properties and assets, and to carry on its business as presently conducted
and to execute and perform its obligations under this Agreement; 

8.2 that this
Agreement is valid and binding upon it and it is bound by it and obliged to act
in accordance with its terms; and that the execution and performance by it of
this Agreement, and compliance therewith, and the consummation of the
transactions contemplated by this Agreement will not result in any violation of
and will not conflict with, or result in a breach of any of the terms of, or
constitute a default under, any document, other obligation, law, regulation or
order to which it is or will be party or by which it is or will be bound;

8.3 that all
actions on its part and on the part of its directors and shareholders, required
for the authorization, execution, and performance by it, of this Agreement, and
the consummation of all the transactions contemplated herein, have been
obtained, or that they will be obtained within 30 days of the date hereof and
until such time as they are obtained no use will be made of the Loan, which
will, until such time, be deemed held in trust for the Lenders by the Borrower;

8.4 that this
Agreement and the entire contents thereof do not require that any notice be made
to any authorities, other than notice which has already been made by the
Borrower or which will be made by the Borrower in a timely manner, in accordance
with all laws and regulations by which the Borrower is bound. 

	 	
      9
	
      Events
      of Default

The
occurrence and continuation of any of the following events shall be considered
an Event of Default upon the occurrence of which the entire unpaid balance of
the Loan and Interest, and all reasonable costs of collection, including
reasonable attorney fees and expenses, shall become immediately due and payable:

9.1 the
Borrower shall fail to make any payment which it is obliged to make under the
terms of this Agreement; 

9.2 for the
avoidance of doubt it is hereby stipulated and emphasized that it is the
fundamental obligation and undertaking of the Borrower to repay the Loan and pay
the Interest, in their entirety, on the Repayment Date, and that failure by the
Borrower to repay the Loan and pay the Interest, in their entirety, on the
Repayment Date, shall be considered an Event of Default, regardless of the
reason for such failure, and without either Lender being required to deliver any
kind of notice to the Borrower; 

9.3 the
Borrower shall default in the performance of any material covenant or obligation
contained herein or in any other agreement, debenture, pledge, promissory note
or other instrument of indebtedness with a Lender and such default is not
remedied within thirty (30) days after the occurrence thereof; 

9.4 the
Borrower uses and/or attempts and/or purports and/or permits HOS to use the
Loan, or any part thereof, for any purpose other than the Specified Purpose, in
breach of the provisions of Section 6.2 above; 

9.5 the
Borrower fails to take any action required of it pursuant to Section 10.5 below.

9.6 any
representation or warranty made by or on behalf of the Borrower to the Lenders,
howsoever in connection with the Loan and/or this Agreement, shall at any time
prove to have been incorrect or misleading; 

9.7 any
judgment materially affecting the ability of the Borrower to repay the Loan and
pay the Interest shall be entered against the Borrower or any attachment, levy
or execution against a substantial portion of its properties shall remain
unpaid, or shall not be released, discharged, dismissed, suspended or stayed for
a period of thirty (30) days or more after its entry, issue or levy, as the case
may be; 

9.8 any
proceedings seeking to declare the Borrower bankrupt, or insolvent, or seeking
liquidation, winding up, reorganization, arrangement with creditors, composition
of debts or any other similar proceedings shall be initiated against the
Borrower, and such proceeding shall not be dismissed within thirty (30) days;

any event
shall occur materially affecting the ability of the Borrower to repay the Loan
and pay the Interest under the terms of this Agreement.

	 	
      10
	
      Security
      and Collateral

10.1 As
security and collateral for the full and timely fulfillment of all of the
Borrower’s undertakings pursuant to this Agreement, including the repayment of
the Loan and the payment of the Interest, on the Repayment Date, the Borrower
hereby grants the Lenders, pari passu, a first priority security interest in,
and lien upon, all of the Borrower’s rights and assets, of any kind whatsoever,
provided however that, solely in respect of rights or assets already encumbered
by the Borrower to a third party, prior to the date hereof and/or rights or
assets which are in the future acquired by the Borrower using funding received
from other parties and encumbered to said other parties (in each case, “Existing
Liens”), such security interest and lien in the Lenders’ favor shall be of
second priority, and shall be subordinate solely to said Existing Liens.

10.2 The
Borrower is hereby aware that, as security and collateral for the full and
timely fulfillment of all of the Borrower’s undertakings pursuant to this
Agreement, including the repayment of the Loan and the payment of the Interest,
on the Repayment Date, certain shareholders of the Borrower may grant the
Lenders a first degree charge and security interest over a total of 2,000,000 of
the shares of common stock which they hold in the Borrower. The Borrower hereby
confirms that there is no impediment to the grant of such charge and security
interest and that it will fully cooperate with the Lenders in facilitating the
exercise and realization of such charge and security interest, in favor of the
Lenders, upon receipt of such request by the Lenders following an Event of
Default. 

10.3 Upon the
occurrence of an Event of Default, and for as long as said Event of Default
remains uncured), the Lenders, pari passu, may, without prejudice to any and all
other rights, remedies and/or relief to which the Lenders may be entitled by
law, exercise and realize any and all security interests and/or collateral
granted to the Lenders pursuant to the terms hereof, including the security and
collateral as set forth in this Section 10 above, without in any way derogating
from the Borrower’s obligation to pay to the Lenders any and all sums still owed
by the Borrower to the Lenders pursuant to the terms hereof even after said
actions by the Lender. 

10.4 The
Borrower hereby recognizes, acknowledges and agrees that each Lender may, at any
particular time, hold various forms of security and/or collateral in respect of
the Loan, whether received from the Borrower or from any third party, including
the security and collateral as set forth in Section 10 above (all such security
and collateral being termed hereinafter, the “Collateral”), and that each
Lender’s rights herein with respect to the security and collateral as set forth
in Section 10 above shall remain in full force and effect regardless of, and in
addition to, any other Collateral then held by the Lenders, and each Lender
shall have full and absolute discretion as to the order and/or nature in which
it exercises and/or realizes its rights in the Collateral, if at all, and as to
the timing of any such exercise and/or realization, and the Borrower hereby
waives any and all claims, demands and/or actions, of any kind whatsoever,
against the Lenders, in this regard. 

10.5 The
Borrower hereby undertakes, from time to time forthwith upon a Lender’s demand,
in order to guarantee the Lenders’ rights with respect to any current and/or and
future creditors, to take any action and sign any instrument and/or form and/or
agreement as per the Lenders’ request, in the event the Lenders and/or the
Borrower believes that any laws by which it or its assets are bound require such
action or signature in order to accord full validity to the Collateral, against
the whole world. Without in any way limiting or derogating from the Borrower’s
obligation and undertaking as set forth in this Section 10.5 above, and merely
as an additional form of protection for the Lenders, the Borrower hereby
undertakes to deliver to Avraham Bahry, at the execution hereof, a Power of
Attorney, in the form attached as Exhibit A’ hereto, by which the Borrower will
empower Avraham Bahry inter alia to take any and all action pursuant to this
Section 10.5, in the Borrower’s name and/or place and/or on its behalf, all as
set forth in Exhibit A. 

	 	
      11
	
      Miscellaneous

11.1 In view
of the fact that the Lenders are shareholders in the Borrower and are also
members of the Borrower’s Board of Directors, the Lenders hereby agree that, so
long as they own more than 1% of the Borrower’s issued and outstanding share
capital or are members of the Borrower’s Board of Directors, they will not
participate in any vote taken by any of the organs within the Borrower’s
corporate structure in connection with this Agreement. This clause is in
addition to, and without derogating from, the provisions of applicable law that
may apply to this Agreement in connection with its being an agreement between a
corporation and individuals who are shareholders and directors of that
corporation. 

11.2 Each
Lender shall be entitled, at any time and without requiring the consent of the
Borrower or any other individual, to assign all or any part of its rights under
this Agreement, including the security interests contemplated hereby, to any
other entity. The Borrower shall not be entitled to assign all or any part of
its rights and/or obligations under this Agreement, without the Lenders’ advance
written consent. 

11.3 No
Amendment to this Agreement, or any part thereof, shall be valid or binding upon
the Parties unless drawn up in writing and signed by both Parties. 

11.4 As used
in this Agreement, the term “including”, and all derivations thereof, shall mean
“including, without limitation”, unless expressly stipulated to the contrary.
Where the context permits, use of the singular number includes the plural and
vice versa and words denoting any gender shall include all genders.

11.5 No
failure or delay on the part of any party in exercising any right and/or remedy
to which it may be entitled hereunder and/or by law shall operate as a waiver by
that party of any right whatsoever. No waiver of any right under this Agreement
shall be deemed as a waiver of any further or future right hereunder, whether or
not such right is the same kind of right as was waived in a previous instance.

11.6 In case
any provision of the Agreement shall be declared invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and shall
continue in full force and effect. 

11.7 This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and replaces any previous agreements between the
parties, if at all, whether written or verbal, pertaining to any of the
subject-matter hereof. 

11.8 This
Agreement shall be governed by and construed in accordance with the laws of
Israel, without regard to its rules of conflict of laws. The parties hereby
agree and submit to the exclusive jurisdiction of the competent courts in the
city of Tel-Aviv, with respect to any claim or dispute arising out of and/or in
connection with this Agreement. For this purpose, Borrower hereby gives notice
that an address for service of court papers in any action relating to this
Agreement shall be c/o Bartech Mediterranean Ltd., 25 HaMered Street, Tel-Aviv,
Israel. 

11.9 Notices
sent by one party to the other under this Agreement will be sent by registered
mail to the addresses specified herein, delivered by hand, or transmitted by fax
and will be deemed to have reached their destination within 5 days of being
deposited with the Post Office for dispatch as registered mail (10 days in the
case of air mail), upon actual delivery when delivered by hand, and upon receipt
of the recipient’s confirmation of receipt when sent by fax. 

11.10 This
Agreement may be executed in any number of counterparts, in original or by
facsimile, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute one and the same
agreement. 

IN
WITNESS WHEREOF the parties have executed this Loan Agreement on the date first
above written: 

SIGNED
for and on behalf of 

Hotel
Outsource Management International, Inc. 

 

	
      By:
	
      /s/
      Jacob Ronnel

	 	 
	
      SIGNED
      by: 
	
      /s/
      Avraham Bahry

	 	
      Avraham
      Bahry

	 	 
	
      SIGNED
      by: 
	
      /s/
      Rodia Mihali

	 	
      Rodia
      Mihali 

I, Joseph
Stabholz, Adv., hereby confirm that to the best of my knowledge, the
representations and warranties delivered in Section 8.2, 8.3 and 8.4 above are
true and correct. 

/s/
Joseph Stabholz

Joseph
Stabholz, Adv.Exhibit 10.11

                            FALCON NATURAL GAS CORP.

                         EXECUTIVE EMPLOYMENT AGREEMENT

     THIS  EXECUTIVE  EMPLOYMENT  AGREEMENT  (this  "Agreement") is made between
Falcon  Natural  Gas  Corp.,  a  Nevada corporation and its affiliated companies
(collectively  referred  to  as  the  "Company"),  and  Massimiliano
Pozzoni("Executive"). Unless otherwise indicated, all references to Sections are
to  Sections in this Agreement. This Agreement is effective as of the "Effective
Date"  set  forth  in  Section  14  below.

                              W I T N E S S E T H:

     WHEREAS,  the  Company  desires  to  obtain  the services of Executive, and
Executive  desires  to  be employed by the Company upon the terms and conditions
hereinafter  set  forth;

     NOW,  THEREFORE,  in  consideration  of the premises, the agreements herein
contained  and other good and valuable consideration, receipt of which is hereby
acknowledged,  the  parties  hereto  agree  as  of  the  date hereof as follows:

     1. Employment. The Company hereby agrees to employ Executive, and Executive
hereby  agrees  to  serve  the  Company,  as  its  Vice  President  of  Business
Development  ("Employment")  and  as  a  Director  for  a period of one (1) year
beginning  on  the  Effective  Date. This Agreement is renewable upon the mutual
written  consent  of  the  parties.

     2. Scope of Employment.

          (a)  During  the Employment, Executive will serve as Vice President of
Business  Development.  In  that  connection,  Executive  will  (i)  devote  his
attention,  and  energies to the business of the Company and will diligently and
to  the  best  of  his  ability  perform  all  duties incident to his employment
hereunder  including,  but  not limited to, carrying out the exploration program
and  securing  financing; (ii) use his best efforts to promote the interests and
goodwill  of  the Company; and (iii) perform such other duties commensurate with
his office as the Board of Directors of the Company may from time-to-time assign
to  him.

          (b)  Section  2(a) shall not be construed as preventing Executive from
(i)  serving  on  corporate,  civic  or charitable boards or committees, or (ii)
making investments in other businesses or enterprises; provided that in no event
shall any such service, business activity or investment require the provision of
substantial  services  by  Executive  to  the  operations or the affairs of such
businesses or enterprises such that the provision thereof would interfere in any
respect  with  the  performance  of Executive's duties hereunder; and subject to
Section  6.

     3. Compensation and Benefits During Employment.  During the Employment, the
Company shall provide compensation to Executive as follows.

          (a)  The Company shall pay Executive $7,500 per month in equal monthly
installments. Executive shall be responsible for the payment of all taxes to the
Internal  Revenue  Service  as well as any and other taxes payable in the United
States. Executive indemnifies the Company with respect to the payment of any and
all  taxes  owing  and  due  from  Executive's  compensation.

<PAGE>

          (b)  The  Company  shall  reimburse  Executive  for  business expenses
incurred  by  Executive in connection with the Employment in accordance with the
Company's  then-current  policies.

          (c)  Executive will be entitled to participate in any health insurance
or  other  employee  benefit  plan  which  the  Company may adopt in the future.

<PAGE>

          (d) Executive will be entitled to five (5) weeks of vacation per year.

          (e) Executive will be entitled to participate in any incentive program
or  discretionary  bonus  program of the Company which may be implemented in the
future  by  the  Board  of  Directors.

          (f) Executive will be entitled to participate in any stock option plan
of  the  Company  which may be approved in the future by the Board of Directors.

          Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board or based upon the advice of counsel for the
Company  shall  be  conclusively  presumed to be done, or omitted to be done, by
Executive  in good faith and in the best interests of the Company and thus shall
not  be  deemed  grounds  for  Termination  for  Cause.

     4. Confidential Information.

          (a) Executive acknowledges that the law provides the Company with
protection  for  its  trade secrets and confidential information. Executive will
not disclose, directly or indirectly, any of the Company's confidential business
information  or  confidential  technical  information  to  anyone  without
authorization  from  the Company's management. Executive will not use any of the
Company's  confidential  business  information  or  confidential  technical
information  in any way, either during or after the Employment with the Company,
except  as  required  in  the  course  of  the  Employment.

          (b) Executive will strictly adhere to any obligations that may be owed
to  former  employers  insofar  as  Executive's  use  or  disclosure  of  their
confidential  information  is  concerned.

          (c)  Information will not be deemed part of the confidential
information  restricted  by  this  Section 4 if Executive can show that: (i) the
information was in Executive's possession or within Executive's knowledge before
the  Company  disclosed  it  to  Executive;  (ii)  the information was or became
generally  known  to  those  who  could  take  economic  advantage  of it; (iii)
Executive  obtained the information from a party having the right to disclose it
to  Executive  without  violation  of  any  obligation  to  the Company, or (iv)
Executive  is  required  to  disclose  the information pursuant to legal process
(e.g.,  a  subpoena),  provided  that Executive notifies the Company immediately
upon  receiving  or  becoming  aware  of  the  legal  process  in  question.  No
combination  of  information  will  be  deemed  to  be  within  any  of the four
exceptions in the previous sentence, however, whether or not the component parts
of  the  combination  are  within one or more exceptions, unless the combination
itself  and its economic value and principles of operation are themselves within
such  an  exception  or  exceptions.

<PAGE>

          (d) All originals and all copies of any drawings, blueprints, manuals,
reports, computer programs or data, notebooks, notes, photographs, and all other
recorded,  written,  or  printed  matter  relating  to  research,  manufacturing
operations,  or business of the Company made or received by Executive during the
Employment  are the property of the Company. Upon Termination of the Employment,
whether  or not for Cause, Executive will immediately deliver to the Company all
property  of the Company which may still be in Executive's possession. Executive
will  not remove or assist in removing such property from the Company's premises
under  any  circumstances,  either  during  the  Employment or after Termination
thereof,  except  as  authorized  by  the  Company's  management.

     5.  Ownership of Intellectual Property.

          (a) The Company will be the sole owner of any and all of Executive's
Inventions that are related to the Company's business, as defined in more detail
below.

          (b) For purposes of this Agreement, "Inventions" means all inventions,
discoveries,  and  improvements  (including, without limitation, any information
relating  to  manufacturing  techniques,  processes,  formulas,  developments or
experimental  work, work in progress, or business trade secrets), along with any
and  all  other  work  product  relating  thereto.

          (c) An Invention is "related to the Company's business"
("Company-Related  Invention")  if it is made, conceived, or reduced to practice
by  Executive (in whole or in part, either alone or jointly with others, whether
or  not  during regular working hours), whether or not potentially patentable or
copyrightable  in  the U.S. or elsewhere, and it either: (i) involves equipment,
supplies,  facilities, or trade secret information of the Company; (ii) involves
the  time  for which Executive was or is to be compensated by the Company; (iii)
relates  to  the  business  of  the  Company  or  to  its actual or demonstrably
anticipated research and development; or (iv) results, in whole or in part, from
work  performed  by  Executive  for  the  Company.

          (d)  Executive  will  promptly  disclose  to  the  Company,  or  its
nominee(s), without additional compensation, all Company-Related Inventions.

          (e) Executive will assist the Company, at the Company's expense, in
protecting  any  intellectual  property rights that may be available anywhere in
the world for such Company-Related Inventions, including signing U.S. or foreign
patent applications, oaths or declarations relating to such patent applications,
and  similar  documents.

          (f) To the extent that any Company-Related Invention is eligible under
applicable  law  to  be  deemed a "work made for hire," or otherwise to be owned
automatically  by  the  Company,  it  will be deemed as such, without additional
compensation  to  Executive.  In some jurisdictions, Executive may have a right,
title,  or interest ("Right," including without limitation all right, title, and
interest  arising  under  patent  law,  copyright  law,  trade-secret  law,
semiconductor  chip  protection  law,  or  otherwise,  anywhere  in  the  world,
including  the  right  to  sue  for  present  or  past  infringement) in certain
Company-Related Inventions that cannot be automatically owned by the Company. In
that case, if applicable law permits Executive to assign Executive's Right(s) in
future  Company-Related  Inventions  at this time, then Executive hereby assigns
any  and  all  such  Right(s) to the Company, without additional compensation to
Executive;  if not, then Executive agrees to assign any and all such Right(s) in
any such future Company-Related Inventions to the Company or its nominee(s) upon
request,  without  additional  compensation  to  Executive.

<PAGE>

          (g) To the extent that Executive retains any so-called "moral rights"
or  similar  rights in a Company-Related Invention as a matter of law, Executive
authorizes  the  Company  or  its designee to make any changes it desires to any
part  of  that  Company-Related  Invention;  to combine any such part with other
materials;  and to withhold Executive's identity in connection with any business
operations  relating  to  that  Company-Related  Invention;  in any case without
additional  compensation  to  Executive.

     6.  Non-competition.  As a condition to, and in consideration of, the
Company's  entering  into this Agreement, and giving Executive access to certain
confidential and proprietary information, which Executive recognizes is valuable
to  the  Company  and,  therefore,  its protection and maintenance constitutes a
legitimate  interest  to  be  protected  by  the provisions of this Section 6 as
applied  to  Executive  and  other  employees  similarly  situated to Executive,
Executive  acknowledges  and  hereby  agrees  as  follows:

          (a) that Executive is and will be engaged in the business of the
Company;

          (b) that Executive has occupied a position of trust and confidence
with  the  Company  prior to the Effective Date, and that during such period and
the  period  of  Executive's Employment under this Agreement, Executive has, and
will,  become  familiar  with  the  Company's  trade  secrets  and  with  other
proprietary  and  confidential  information  concerning  the  Company;

          (c) that the obligations of this Agreement are directly related to the
Employment  and  are  necessary  to  protect  the  Company's legitimate business
interests;  and  that  the  Company's  need  for the covenants set forth in this
Agreement  is based on the following: (i) the substantial time, money and effort
expended  and  to  be  expended  by the Company in developing technical designs,
computer  program  source  codes,  marketing  plans  and  similar  confidential
information;  (ii) the fact that Executive will be personally entrusted with the
Company's  confidential  and proprietary information; (iii) the fact that, after
having  access  to  the Company's technology and other confidential information,
Executive  could  become  a  competitor  of  the  Company;  and  (iv) the highly
competitive  nature  of  the  Company's  industry,  including  the  premium that
competitors  of  the  Company  place  on  acquiring  proprietary and competitive
information;  and

          (d) that for a period commencing on the Effective Date and ending one
(1)  month  following Termination as provided in Section 11, Executive will not,
directly  or  indirectly,  serve  as  employee,  agent, consultant, stockholder,
director, co-partner or in any other individual or representative capacity, own,
operate,  manage, control, engage in, invest in or participate in any manner in,
act  as  consultant  or advisor to, render services for (alone or in association
with any person, firm, corporation or entity), or otherwise assist any person or
entity  that  directly  or  indirectly  engages or proposes to engage in (i) the
same,  or a substantially similar, type of business as that in which the Company
engages;  or (ii) the business of the manufacturing, distribution or sale of (A)
products  manufactured,  distributed, sold or license by the Company at the time
of  Termination;  or  (B)  products  proposed  at  the time of Termination to be
manufactured,  distributed,  sold  or licensed by the Company, anywhere in North
America  (the  "Territory");  provided,  however

<PAGE>

          (e) that nothing contained herein shall be construed to prevent
Executive from investing in the stock or securities of any competing corporation
listed  on any recognized national securities exchange or traded in the over the
counter  market  in  the  United States, but only if (i) such investment is of a
totally  passive  nature  and  does  not  involve Executive devoting time to the
management  or  operations  of  such  corporation and Executive is not otherwise
involved  in  the  business  of  such corporation; and if (ii) Executive and his
associates  (as  such  term is defined in Regulation 14(A) promulgated under the
Securities  Exchange  Act  of  1934,  as  in  effect  on  the  Effective  Date),
collectively,  do not own, directly or indirectly, more than an aggregate of two
(2)  percent  of  the  outstanding  stock  or  securities  of  such corporation.

     7. Legal Fees and Expenses.  In the event of a lawsuit, arbitration, or
other  dispute-resolution  proceeding  between the Company and Executive arising
out of or relating to this Agreement, the prevailing party, in the proceeding as
a  whole  and/or in any interim or ancillary proceedings (e.g., opposed motions,
including  without  limitation  motions  for preliminary or temporary injunctive
relief)  will be entitled to recover its reasonable attorneys' fees and expenses
unless  the court or other forum determines that such a recovery would not serve
the  interests  of  justice.

     8.  Successors.

          (a) This Agreement shall inure to the benefit of and be binding upon
(i)  the  Company  and  its  successors  and  assigns  and  (ii)  Executive  and
Executive's  heirs and legal representatives, except that Executive's duties and
responsibilities  under  this Agreement are of a personal nature and will not be
assignable  or  delegable  in  whole  or  in  part.

          (b) The Company will require any successor (whether direct or
indirect,  by  purchase,  merger,  consolidation  or  otherwise)  to  all  or
substantially  all  of  the  business  and/or  assets  of  the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent  that  the  Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "the Company" shall mean the Company
as  hereinbefore  defined  and  any  successor  to its business and/or assets as
aforesaid  which  assumes  and  agrees to perform this Agreement by operation of
law,  or  otherwise.

     9.  Arbitration.

          (a) Except as set forth in paragraph (b) of this Section 9 or to the
extent  prohibited  by applicable law, any dispute, controversy or claim arising
out  of  or  relating to this Agreement will be submitted to binding arbitration
before  a  single  arbitrator  in  accordance  with  the  National Rules for the
Resolution  of  Employment  Disputes  of the American Arbitration Association in
effect  on  the  date  of the demand for arbitration. The arbitration shall take
place  before  a single arbitrator, who will preferably but not necessarily be a
lawyer  but who shall have at least five years' experience in working in or with
mining  companies. Unless otherwise agreed by the parties, the arbitration shall
take place in the city in which Executive's principal office space is located at
the  time  of  the  dispute  or  was  located  at the time of Termination of the
Employment  (if  applicable).  The  arbitrator  is  hereby  directed to take all
reasonable  measures not inconsistent with the interests of justice to expedite,
and  minimize  the  cost  of,  the  arbitration  proceedings.

<PAGE>

          (b) To protect inventions, trade secrets, or other confidential
information  of  Section  4, and/or to enforce the non-competition provisions of
Section  6,  the  Company  may  seek  temporary,  preliminary,  and/or permanent
injunctive  relief  in  a court of competent jurisdiction, in each case, without
waiving  its  right  to  arbitration.

          (c) At the request of either party, the arbitrator may take any
interim  measures s/he deems necessary with respect to the subject matter of the
dispute, including measures for the preservation of confidentiality set forth in
this  Agreement.

          (d) Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction.

     10.  Indemnification.

          (a)  Company shall to the full extent permitted by law or as set forth
in  the  Articles of Incorporation, and any future amendments, and the Bylaws of
the  Company, indemnify, defend and hold harmless Executive from and against any
and  all  claims,  demands, liabilities, damages, losses and expenses (including
attorney's  fees,  court costs and disbursements) arising out of the performance
of  duties  hereunder  except  in  the  case  of  willful  misconduct.

          (b)  Executive shall indemnify the Company with respect to the payment
of  any  and  all  taxes  owed  under  this  Agreement.

     11.  Termination

          This  Agreement  and  the  employment relationship created hereby will
terminate  (i) upon the death or disability of Executive under Section 11 (a) or
11(b); (ii) with cause under Section 11 (c); (iii) for good reason under Section
11  (d);  or  (iv)  without  cause  under  Section  11(e).

          (a)  Disability. Company shall have the right to terminate the
               employment  of  Executive  under this Agreement for disability in
               the  event Executive suffers an injury, illness, or incapacity of
               such  character  as  to substantially disable him from performing
               his  duties  without  reasonable  accommodation  by  Executive
               hereunder  for a period of more than thirty (30) consecutive days
               upon  Company  giving at least thirty (30) days written notice of
               termination.

<PAGE>

          (b)  Death. This agreement will terminate on the Death of the
               Executive.

          (c)  With Cause. Company may terminate this Agreement at any time
               because  of  (i)  Executive's  material breach of any term of the
               Agreement,  (ii)  the  determination by the Board of Directors in
               the  exercise  of  its  reasonable  judgment  that  Executive has
               committed  an  act  or  acts constituting a felony or other crime
               involving moral turpitude, dishonesty or theft or fraud; or (iii)
               Executive's  negligence  in  the  performance  of  his  duties
               hereunder.

          (d)  Good Reason. The Executive may terminate his employment for "Good
               Reason" by giving Company ten (10) days written notice if:

               (i)  he is assigned, without his express written consent, any
                    duties  materially  inconsistent with his positions, duties,
                    responsibilities,  or  status  with  Company  as of the date
                    hereof,  or  a  change  in his reporting responsibilities or
                    titles  as  in  effect  as  of  the  date  hereof;

               (ii) his compensation is reduced; or

               (iii) Company does not pay any material amount of compensation
                    due  hereunder  and  then  fails  either  to pay such amount
                    within  the  ten  (10)  day  notice  period  required  for
                    Termination  hereunder  or  to  contest  in  good faith such
                    notice.  Further,  if  such  contest  is not resolved within
                    thirty  (30)  days,  Company  shall  submit  such dispute to
                    arbitration  under  Section  9.

          (e)  Without Cause. Company may terminate this Agreement without
               cause.

     12.  Obligations  of  Company  Upon  Termination.

          (a)  In  the  event  of  the  termination  of  Executive's  employment
pursuant  to  Section 11 (a), (b) or (c), Executive will be entitled only to the
compensation  earned  by  him hereunder as of the date of such termination (plus
life  insurance  or  disability  benefits).

          (b) In the event of the termination of Executive's employment pursuant
to  Section  11  (d)  or (e), Executive will be entitled to receive as severance
pay,  an  amount  equal to the monthly compensation provided for in Section 3(a)
multiplied by a factor of three (3) in addition to all payments of salary earned
through  the  date  of  termination  in  one  lump  sum.

     13.  Other Provisions.

          (a) All notices and statements with respect to this Agreement must be
in  writing.  Notices  to  the Company shall be delivered to the Chairman of the
Board  or  any  vice  president  of  the  Company.  Notices  to Executive may be
delivered  to  Executive  in  person  or  sent  to Executive's then-current home
address  as  indicated  in  the  Company's  records.

<PAGE>

          (b) This Agreement sets forth the entire agreement of the parties
concerning  the  subjects covered herein; there are no promises, understandings,
representations,  or  warranties of any kind concerning those subjects except as
expressly  set  forth  in  this  Agreement.

          (c) Any modification of this Agreement must be in writing and signed
by  all parties; any attempt to modify this Agreement, orally or in writing, not
executed  by  all  parties  will  be  void.

          (d) If any provision of this Agreement, or its application to anyone
or under any circumstances, is adjudicated to be invalid or unenforceable in any
jurisdiction,  such  invalidity  or  unenforceability  will not affect any other
provision or application of this Agreement which can be given effect without the
invalid  or  unenforceable  provision  or application and will not invalidate or
render  unenforceable  such  provision or application in any other jurisdiction.

          (e) This Agreement will be governed and interpreted under the laws of
the United States of America and the laws of the State of New York as applied to
contracts  made  and  carried  out  in  New  York  by  residents  of  New  York.

          (f) No failure on the part of any party to enforce any provisions of
this Agreement will act as a waiver of the right to enforce that provision.

          (g) Section headings are for convenience only and shall not define or
limit the provisions of this Agreement.

          (h) This Agreement may be executed in several counterparts, each of
which  is  an  original.  It  shall  not  be  necessary  in making proof of this
Agreement  or  any counterpart hereof to produce or account for any of the other
counterparts.  A copy of this Agreement signed by one party and faxed to another
party  shall  be deemed to have been executed and delivered by the signing party
as  though  an  original. A photocopy of this Agreement shall be effective as an
original  for  all  purposes.

     14.  Summary of Terms of Employment

          Effective Date                  April 1st,  2004

          Term                            One year, renewable

          Office / Position               Vice President of Business Development

          Salary                         $7,500 per month

     This Agreement contains provisions requiring binding arbitration of
disputes.  By  signing this Agreement, Executive acknowledges that he or she (i)
has  read  and  understood  the entire Agreement; (ii) has received a copy of it
(iii)  has  had  the  opportunity  to ask questions and consult counsel or other
advisors  about  its  terms;  and  (iv)  agrees  to  be  bound  by  it.

<PAGE>

Executed to be effective as of the Effective Date.

Falcon Natural Gas Corp., by:

/s/ Massimiliano Pozzoni
----------------------------
Massimiliano Pozzoni
Director

<PAGE>

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