Document:

EXHIBIT 10.7

                          GUARANTY AND PLEDGE AGREEMENT

          GUARANTY AND PLEDGE AGREEMENT (this "Agreement"), dated as of June 23,
2005, among Ruby Mining Company, a Colorado corporation (the "Company"), G.
Howard Collingwood and Murray D. Bradley, Jr. (the "Pledgor"), and the pledgees
signatory hereto and their respective endorsees, transferees and assigns
(collectively, the "Pledgees").

                              W I T N E S S E T H:

          WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between Company and the Pledgees (the "Purchase Agreement"), Company has
agreed to issue to the Pledgees and the Pledgees have agreed to purchase from
Company certain of Company's 8% Callable Secured Convertible Notes, due three
years from the date of issuance (the "Notes"), which are convertible into shares
of Company's Common Stock, par value $.001 per share (the "Common Stock"). In
connection therewith, Company shall issue the Pledgees certain Common Stock
purchase warrants (the "Warrants"); and

          WHEREAS, as a material inducement to the Pledgees to enter into the
Purchase Agreement, the Pledgees have required and the Pledgor has agreed (i) to
unconditionally guarantee the timely and full satisfaction of all obligations of
the Company, whether matured or unmatured, now or hereafter existing or created
and becoming due and payable (the "Obligations") to the Pledgees, their
successors, endorsees, transferees or assigns under the Transaction Documents
(as defined in the Purchase Agreement) to the extent of the Collateral (as
defined in Section 5 hereof), and (ii) to grant to the Pledgees, their
successors, endorsees, transferees or assigns a security interest in the number
of shares of Common Stock currently owned by the Pledgor as set forth below the
Pledgor's signature on the signature page hereto (collectively, the "Shares"),
as collateral security for Obligations. Terms used and not defined herein shall
have the meaning ascribed to them in the Purchase Agreement.

          NOW, THEREFORE, in consideration of the foregoing recitals, and the
mutual covenants contained herein, the parties hereby agree as follows:

          1. Guaranty. To the extent of the Collateral, the Pledgor hereby
absolutely, unconditionally and irrevocably guarantees to the Pledgees, their
successors, endorsees, transferees and assigns the due and punctual performance
and payment of the Obligations owing to the Pledgees, their successors,
endorsees, transferees or assigns when due, all at the time and place and in the
amount and manner prescribed in, and otherwise in accordance with, the
Transaction Documents, regardless of any defense or set-off counterclaim which
the Company or any other person may have or assert, and regardless of whether or
not the Pledgees or anyone on behalf of the Pledgees shall have instituted any
suit, action or proceeding or exhausted its remedies or taken any steps to
enforce any rights against the Company or any other person to compel any such
performance or observance or to collect all or part of any such amount, either
pursuant to the provisions of the Transaction Documents or at law or in equity,
and regardless of any other condition or contingency. The Pledgor shall have no
obligation whatsoever to the Pledgees beyond the Collateral pledged for the
Obligations set forth herein.

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          2. Waiver of Demand. The Pledgor hereby unconditionally: (i) waives
any requirement that the Pledgees, in the event of a breach in any material
respect by the Company of any of its representations or warranties in the
Transaction Documents, first make demand upon, or seek to enforce remedies
against, the Company or any other person before demanding payment of enforcement
hereunder; (ii) covenants that this Agreement will not be discharged except by
complete performance of all the Obligations to the extent of the Collateral;
(iii) agrees that this Agreement shall remain in full force and effect without
regard to, and shall not be affected or impaired, without limitation, by, any
invalidity, irregularity or unenforceability in whole or in part of the
Transaction Documents or any limitation on the liability of the Company
thereunder, or any limitation on the method or terms of payment thereunder which
may now or hereafter be caused or imposed in any manner whatsoever; and (iv)
waives diligence, presentment and protest with respect to, and notice of default
in the performance or payment of any Obligation by the Company under or in
connection with the Transaction Documents.

          3. Release. The obligations, covenants, agreements and duties of the
Pledgor hereunder shall not be released, affected or impaired by any assignment
or transfer, in whole or in part, of the Transaction Documents or any
Obligation, although made without notice to or the consent of the Pledgor, or
any waiver by the Pledgees, or by any other person, of the performance or
observance by the Company or the Pledgor of any of the agreements, covenants,
terms or conditions contained in the Transaction Documents, or any indulgence in
or the extension of the time or renewal thereof, or the modification or
amendment (whether material or otherwise), or the voluntary or involuntary
liquidation, sale or other disposition of all or any portion of the stock or
assets of the Company or the Pledgor, or any receivership, insolvency,
bankruptcy, reorganization, or other similar proceedings, affecting the Company
or the Pledgor or any assets of the Company or the Pledgor, or the release of
any proper from any security for any Obligation, or the impairment of any such
property or security, or the release or discharge of the Company or the Pledgor
from the performance or observance of any agreement, covenant, term or condition
contained in or arising out of the Transaction Documents by operation of law, or
the merger or consolidation of the Company, or any other cause, whether similar
or dissimilar to the foregoing.

          4. Subrogation.

               (a) Unless and until complete performance of all the Obligations
to the extent of the Collateral, the Pledgor shall not be entitled to exercise
any right of subrogation to any of the rights of the Pledgees against the
Company or any collateral security or guaranty held by the Pledgees for the
payment or performance of the Obligations, nor shall the Pledgor seek any
reimbursement from the Company in respect of payments made by the Pledgor
hereunder.

               (b) In the extent that the Pledgor shall become obligated to
perform or pay any sums hereunder, or in the event that for any reason the
Company is now or shall hereafter become indebted to the Pledgor, the amount of
such sum shall at all times be subordinate as to lien, time of payment and in
all other respects, to the amounts owing to the Pledgees under the Transaction
Documents and the Pledgor shall not enforce or receive payment thereof until all
Obligations due to the Pledgees under the Transaction have been performed or
paid. Nothing herein contained is intended or shall be construed to give to the
Pledgor any right

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<PAGE>

of subrogation in or under the Transaction Documents, or any right to
participate in any way therein, or in any right, title or interest in the assets
of the Pledgees.

          5. Security. As collateral security for the punctual payment and
performance, when due, by the Company of all the Obligations, the Pledgor hereby
pledges with, hypothecates, transfers and assigns to the Pledgees all of the
Shares and all proceeds, shares and other securities received, receivable or
otherwise distributed in respect of or in exchange for the Shares, including,
without limitation, any shares and other securities into which such Shares may
be convertible or exchangeable (collectively, the "Additional Collateral" and
together with the Shares, the "Collateral"). Simultaneously herewith, the
Pledgor shall deliver to the Pledgees the certificate(s) representing the
Shares, stamped with a bank medallion guarantee, along with a stock transfer
power duly executed in blank by the Pledgor, to be held by the Pledgees as
security. Any Collateral received by the Pledgor on or after the date hereof
shall be immediately delivered to the Pledgees together with any executed stock
powers or other transfer documents requested by the Pledgees, which request may
be made at any time prior to the date when the Obligations shall have been paid
and otherwise satisfied in full.

          6. Voting Power, Dividends, Etc. and other Agreements.

               (a) Unless and until an Event of Default (as set forth in Section
7 hereof) has occurred, the Pledgor shall be entitled to:

                    (i) Exercise all voting and/or consensual powers pertaining
          to the Collateral, or any part thereof, for all purposes;

                    (ii) Receive and retain dividends paid with respect to the
          Collateral; and

                    (iii) Receive the benefits of any income tax deductions
          available to the Pledgor as a shareholder of the Company.

               (b) The Pledgor agrees that it will not sell, assign, transfer,
pledge, hypothecate, encumber or otherwise dispose of the Collateral.

               (c) The Pledgor and the Company jointly and severally agree to
pay all costs including all reasonable attorneys' fees and disbursements
incurred by the Pledgees in enforcing this Agreement in accordance with its
terms.

          7. Default and Remedies.

               (a) For the purposes of this Agreement, "Event of Default" shall
mean:

                    (i) default in or under any of the Obligations after the
          expiration, without cure, of any applicable cure period;

                    (ii) a breach in any material respect by the Company of any
          of its representations or warranties in the Transaction Documents; or

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<PAGE>

                    (iii) a breach in any material respect by the Pledgor of any
          of its representations or warranties in this Agreement.

               (b) the Pledgees shall have the following rights upon any Event
of Default:

                    (i) the rights and remedies provided by the Uniform
          Commercial Code as adopted by the State of New York (the "UCC") (as
          said law may at any time be amended);

                    (ii) the right to receive and retain all dividends, payments
          and other distributions of any kind upon any or all of the Collateral;

                    (iii) the right to cause any or all of the Collateral to be
          transferred to its own name or to the name of its designee and have
          such transfer recorded in any place or places deemed appropriate by
          the Pledgees; and

                    (iv) the right to sell, at a public or private sale, the
          Collateral or any part thereof for cash, upon credit or for future
          delivery, and at such price or prices in accordance with the UCC (as
          such law may be amended from time to time). Upon any such sale the
          Pledgees shall have the right to deliver, assign and transfer to the
          purchaser thereof the Collateral so sold. The Pledgees shall give the
          Pledgor not less than ten (10) days' written notice of its intention
          to make any such sale. Any such sale, shall be held at such time or
          times during ordinary business hours and at such place or places as
          the Pledgees may fix in the notice of such sale. The Pledgees may
          adjourn or cancel any sale or cause the same to be adjourned from time
          to time by announcement at the time and place fixed for the sale, and
          such sale may be made at any time or place to which the same may be so
          adjourned. In case of any sale of all or any part of the Collateral
          upon terms calling for payments in the future, any Collateral so sold
          may be retained by the Pledgees until the selling price is paid by the
          purchaser thereof, but the Pledgees shall incur no liability in the
          case of the failure of such purchaser to take up and pay for the
          Collateral so sold and, in the case of such failure, such Collateral
          may again be sold upon like notice. The Pledgees, however, instead of
          exercising the power of sale herein conferred upon them, may proceed
          by a suit or suits at law or in equity to foreclose the security
          interest and sell the Collateral, or any portion thereof, under a
          judgment or decree of a court or courts of competent jurisdiction, the
          Pledgor having been given due notice of all such action. The Pledgees
          shall incur no liability as a result of a sale of the Collateral or
          any part thereof. All proceeds of any such sale, after deducting the
          reasonable expenses and reasonable attorneys' fees incurred in
          connection with such sale, shall be applied in reduction of the
          Obligations, and the remainder, if any, shall be paid to the Pledgor.

          8. Application of Proceeds; Release. The proceeds of any sale or
enforcement of or against all or any part of the Collateral, and any other cash
or collateral at the time held by the Pledgees hereunder, shall be applied by
the Pledgees first to the payment of the reasonable costs of any such sale or
enforcement, then to reimburse the Pledgees for any

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<PAGE>

damages, costs or expenses incurred by the Pledgees as a result of an Event of
Default, then to the payment of the principal amount or stated valued (as
applicable) of, and interest or dividends (as applicable) and any other payments
due in respect of, the Obligations. The remainder, if any, shall be paid to the
Pledgor. As used in this Agreement, "proceeds" shall mean cash, securities and
other property realized in respect of, and distributions in kind of, the
Collateral, including any thereof received under any reorganization, liquidation
or adjustment of debt of any issuer of securities included in the Collateral.

          9. Representations and Warranties.

               (a) The Pledgor hereby represents and warrants to the Pledgees
that:

                    (i) the Pledgor has full power and authority and legal right
          to pledge the Collateral to the Pledgees pursuant to this Agreement
          and this Agreement constitutes a legal, valid and binding obligation
          of the Pledgor, enforceable in accordance with its terms.

                    (ii) the execution, delivery and performance of this
          Agreement and other instruments contemplated herein will not violate
          any provision of any order or decree of any court or governmental
          instrumentality or of any mortgage, indenture, contract or other
          agreement to which the Pledgor is a party or by which the Pledgor and
          the Collateral may be bound, and will not result in the creation or
          imposition of any lien, charge or encumbrance on, or security interest
          in, any of the Pledgor's properties pursuant to the provisions of such
          mortgage, indenture, contract or other agreement.

                    (iii) the Pledgor is the sole record and beneficial owner of
          all of the Shares; and

                    (iv) the Pledgor owns the Collateral free and clear of all
          Liens.

               (b) The Company represents and warrants to the Pledgees that:

                    (i) it has no knowledge that any of the representations or
          warranties of the Pledgor herein are incorrect or false in any
          material respect;

                    (ii) all of the Shares were validly issued, fully paid and
          non-assessable; and

                    (iii) the Pledgor is the record holder of the Shares.

          10. No Waiver; No Election of Remedies. No failure on the part of the
Pledgees to exercise, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise by the Pledgees of any right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein provided are cumulative and are not exclusive of any
remedies provided by law. In addition, the exercise of any right or remedy of
the Pledgees at law

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<PAGE>

or equity or under this Agreement or any of the documents shall not be deemed to
be an election of Pledgee's rights or remedies under such documents or at law or
equity.

          11. Termination. This Agreement shall terminate on the date on which
all Obligations have been performed, satisfied, paid or discharged in full.

          12. Further Assurances. The parties hereto agree that, from time to
time upon the written request of any party hereto, they will execute and deliver
such further documents and do such other acts and things as such party may
reasonably request in order fully to effect the purposes of this Agreement. The
Pledgees acknowledge that they are aware that Pledgor shall have no obligations
whatsoever to the Pledgees beyond the Collateral pledged for the Obligations set
forth herein, and no request for further assurance may or shall increase such
Obligations.

          13. Miscellaneous.

               (a) Modification. This Agreement contains the entire
understanding between the parties with respect to the subject matter hereof and
specifically incorporates all prior oral and written agreements relating to the
subject matter hereof. No portion or provision of this Agreement may be changed,
modified, amended, waived, supplemented, discharged, canceled or terminated
orally or by any course of dealing, or in any manner other than by an agreement
in writing, signed by the party to be charged.

               (b) Notice. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section prior to 6:30 p.m. (New
York City time) on a Business Day (as defined in the Purchase Agreement), (ii)
the Business Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this
Agreement later than 6:30 p.m. (New York City time) on any date and earlier than
11:59 p.m. (New York City time) on such date, (iii) the Business Day following
the date of mailing, if sent by nationally recognized overnight courier
services, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be
as follows:

If to the Company:                  Ruby Mining Company
                                    3490 Piedmont Road, Suite 304
                                    Atlanta, GA 30305
                                    Attention: Chief Executive Officer
                                    Telephone: (404) 231-8500
                                    Facsimile: (404) 231-9400

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<PAGE>

With copies to:                     Steven A. Cunningham, P.C.
                                    11660 Alpharetta Hwy., Suite 155
                                    Roswell, GA 30076
                                    Attention:   Steve Cunningham, Esq.
                                    Telephone:  (770) 442-2364
                                    Facsimile:   (770) 442-2365

If to the Pledgor:                  Mr. G. Howard Collingwood
                                    Mr. Murray D. Bradley, Jr.
                                    c/o Ruby Mining Company
                                    3490 Piedmont Road, Suite 304
                                    Atlanta, GA 30305
                                    Attention: Chief Executive Officer
                                    Telephone:  (404) 231-8500
                                    Facsimile: (404) 231-9400

If to the Pledgees:                 AJW Partners, LLC
                                    AJW Offshore, Ltd.
                                    AJW Qualified Partners, LLC
                                    New Millennium Capital Partners II, LLC
                                    1044 Northern Boulevard
                                    Suite 302
                                    Roslyn, New York  11576
                                    Facsimile No.:  (516) 739-7115
                                    Attention:  Corey S. Ribotsky

        With copies to:             Ballard Spahr Andrews & Ingersoll, LLP
                                    1735 Market Street, 51st Fl.
                                    Philadelphia, PA 19103
                                    Facsimile No.:  (215) 864-8999
                                    Attention:  Gerald J. Guarcini, Esquire

               (c) Invalidity. If any part of this Agreement is contrary to,
prohibited by, or deemed invalid under applicable laws or regulations, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

               (d) Benefit of Agreement. This Agreement shall be binding upon
and inure to the parties hereto and their respective successors and assigns.

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<PAGE>

               (e) Mutual Agreement. This Agreement embodies the arm's length
negotiation and mutual agreement between the parties hereto and shall not be
construed against either party as having been drafted by it.

               (f) New York Law to Govern. This Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York without regard to the principals of conflicts of law thereof. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and
Federal courts sitting in the city of New York, borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court or that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this agreement and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Guaranty and
Pledge Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

                                         RUBY MINING COMPANY

                                         By: ________________________________
                                            G. Howard Collingwood
                                            President

                                         PLEDGEES:

                                         AJW PARTNERS, LLC
                                         By:    SMS Group, LLC

                                                By: ____________________________
                                                   Corey S. Ribotsky
                                                   Manager

                                         AJW OFFSHORE, LTD.
                                         By:  First Street Manager II, LLC

                                                By: ____________________________
                                                   Corey S. Ribotsky
                                                   Manager

                                         AJW QUALIFIED PARTNERS, LLC
                                         By:  AJW Manager, LLC

                                                By: ____________________________
                                                   Corey S. Ribotsky
                                                   Manager

                                         NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                         By:  First Street Manager II, LLC

                                                By: ____________________________
                                                   Corey S. Ribotsky
                                                   Manager

                    [Signatures Continued on Following Page]

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<PAGE>

                             PLEDGOR:

                             ___________________________________________________
                             G. Howard Collingwood

                             Number of Shares subject to this pledge: __________

                             Date such Shares were acquired:

                             PLEDGOR:

                             ___________________________________________________
                             Murray D. Bradley, Jr.

                             Number of Shares subject to this pledge: __________

                             Date such Shares were acquired:

                                       10
<PAGE>EXHIBIT 10.8

                           LAIDLAW & COMPANY (UK) LTD.
                                 90 PARK AVENUE
                               NEW YORK, NY 10016

                                                                     May 5, 2005
Ruby Mining Company
1 Securities Center
Suite 304
3490 Piedmont Road
Atlanta, GA 30305

Attention: G. Howard Collingwood, CEO

RE: FINANCIAL ADVISORY AGREEMENT

Dear G. Howard:

Laidlaw & Company (UK) Ltd. ("Laidlaw") is pleased to act as the non-exclusive
financial advisor for Ruby Mining Company, a Colorado corporation, located in
Atlanta, Georgia (the "Company"), in connection with your proposed capital
transaction. The terms of our engagement are set forth below. We look forward to
working with you.

     1. THE OFFERING.

        We understand you wish to raise up to five million dollars ($5,000,000)
        through a private placement involving the sale of equity or debt
        securities to high net worth individuals and institutional investors
        (the "Offering"). You understand the actual terms of the Offering may
        depend on market conditions, and may be subject to negotiation between
        the Company and prospective investors. The Offering will be conducted in
        accordance with the exemption from the registration requirements of the
        Securities Act of 1933, as amended, and the rules and regulations
        promulgated there under (collectively, the "Securities Act"), and the
        qualification and registration requirements of applicable state and
        foreign securities or blue sky laws and regulations pursuant to a
        private placement memorandum and/or other disclosure materials prepared
        by the Company. We agree that we will not knowingly take any action in
        connection with the Offering that will prevent the Offering from
        complying with the requirements for such exemptions

     2. FEES AND EXPENSES.

        Concurrently with the closing of any part of the Offering, the Company
        will pay Laidlaw in cash, a fee equal to 8% of the gross proceeds
        received from the sale of securities to investors introduced to the
        Company by Laidlaw. The Company may, in its discretion, reject any
        proposed terms from a prospective investor.

        (a) In addition, the Company agrees to reimburse Laidlaw for its
            non-accountable expenses, including but not limited to reasonable
            fees of its legal counsel, of up to $25,000. Such fees will be
            payable out of the proceeds of the closing. In the event that the
            Company does not accept any proceeds pursuant to the Offering, then
            no fees shall be due.
<PAGE>
                                      -2-

        (b) Furthermore, upon the closing of the Offering, the Company shall
            grant Laidlaw five (5) year warrants for the purchase of an amount
            of shares equal to 5%of the securities issued in the Offering to
            investors introduced to the Company by Laidlaw. The Warrants shall
            be identical to those warrants sold in the Offering. The shares
            underlying the warrants shall have the same registration rights as
            those afforded the investors relative to the shares and warrants
            they purchase in the Offering.

     3. TERMS.

        (a) The term of this engagement shall be six months, however, either
            party may terminate this engagement at any time upon 10 days written
            notice to the other party. Upon termination, we will be entitled to
            collect all fees and warrants earned and expenses incurred through
            the date of termination.

        (b) The Company agrees to keep the contents of this agreement and the
            names of the parties with whom it has been negotiating with in
            confidence until the Closing. Further, the Company agrees that
            during the 60 days following the signing of this agreement it will
            not solicit investments from, or negotiate terms upon which it may
            be willing to sell securities to, any investor other than Laidlaw
            and potential investors who may be approached by Laidlaw to invest
            pursuant to this agreement.

        (c) If any part of the Offering is not closed during the term, for
            reasons other than termination of this letter by Laidlaw, and during
            the one year following termination of the engagement, any person or
            entity which we introduced, directly or indirectly, to the Company
            or with which we have had discussions or negotiations during the
            term on behalf of the Company, purchases securities from the Company
            (other than through an underwritten public offering) or enters into
            a definitive agreement to purchase securities of the Company, you
            agree to pay Laidlaw upon the close, a cash fee and warrant in the
            amount that would otherwise have been payable to Laidlaw had such
            transaction occurred during the term.

     4. REPRESENTATIONS, WARRANTIES AND COVENANTS.

        (a) You hereby authorize Laidlaw to transmit to the prospective
            purchasers of the securities material prepared by the Company with
            such exhibits and supplements as may from time to time be delivered
            by the Company to Laidlaw for such purpose and or copies of the
            Company's most recent filings with the Securities and Exchange
            Commission together with summary materials prepared by the Company
            (collectively "Material"). The Company authorizes Material to be
            sent out to prospective investors and upon specific request Laidlaw
            shall undertake to have prospective investors execute a
            confidentiality agreement. The Company represents and warrants the
            Material will not contain any untrue statement of a material fact or
            omit to state a material fact required to be stated therein or
            necessary to make the statements therein or in prior Materials, in
            light of the circumstances under which they were made, not
            misleading. The Company will advise Laidlaw immediately of the
            occurrence of any event or any other change known to the Company
            which results in the Material containing an untrue statement of a
            material fact or omitting to state a material fact required to be
            stated therein or necessary to make the statements therein or
            previously made, in light of the circumstance under which they were
            made, not misleading. Laidlaw agrees not to distribute to any
            investor or prospective investor any information concerning the
            Company, which has not been approved for

<PAGE>
                                      -3-

            such distribution by the Company. The Company will be responsible
            for updating, amending and supplementing the Materials prior to the
            closing of the Offering as required by applicable laws.

        (b) You agree that if you accept a subscription from a proposed investor
            you will enter into subscription, registration rights and other
            customary agreements that are negotiated as a part of the Offering.
            You also agree that your counsel will supply an opinion letter,
            satisfactory in form and substance to our counsel, which will be
            addressed to the investors. Such opinion will include customary
            items contained in legal opinions rendered in connection with
            private placement transactions, including, among other things,
            opinions on matters relating to organization and good standing,
            capitalization, corporate power and authority, non-contravention,
            exemption of the Offering and 10b-5 statements. In addition, at the
            closing of the Offering, the Company will provide Laidlaw with the
            same certificates of the officers of the Company as are furnished to
            the investors. If requested, the Company will, at the closing of the
            Offering, furnish Laidlaw with the same favorable opinion of its
            outside counsel as is furnished to the investors.

        (c) Laidlaw represents and warrants to the Company that (i) Laidlaw is a
            registered broker/dealer with the Securities and Exchange Commission
            ("SEC") and any state in which such registration is required and has
            and shall maintain such registrations as well as other necessary
            licenses and permits to conduct its activities under this letter,
            which shall be in compliance in all material respects with all
            federal and state laws relating to the offer and sale of securities;
            (ii) Laidlaw is a member in good standing of the National
            Association of Securities Dealers ("NASD"); and (iii) Laidlaw is not
            a party to any other agreement which would conflict with the terms
            of this letter.

     5. NO CONFLICT.

               Neither the execution and delivery of this letter by the Company
               nor the enumeration of the transactions contemplated hereby will,
               directly or indirectly, with or without the giving notice or
               lapse of time, or both: (i) violate any provisions of the
               Certificate of Incorporation or By-Laws of the Company, or (ii)
               violate, or be in conflict with, or constitute a default under,
               any agreement, lease, mortgage, debt or obligation of the Company
               or require the payment or pre-payment or other penalty with
               respect thereto.

     6. INDEMNIFICATION, CONTRIBUTION, AND CONFIDENTIALITY.

               The Company agrees to indemnify Laidlaw and related persons in
               accordance with the indemnification letter annexed hereto as
               Schedule A, the provisions of which are incorporated herein in
               their entirety, and shall survive the termination or expiration
               of this Agreement.

     7. GOVERNING LAW.

               This letter shall be governed by and construed in accordance with
               the laws of the state of New York applicable to contracts
               executed and to be wholly performed therein without giving effect
               to its conflicts of laws principles or rules. Each party hereto
               (1) agrees that any legal suit, action or proceeding arising out
               of or relating to this letter shall be instituted exclusively in
               New York State Supreme

<PAGE>
                                      -4-

               Court, County of New York, or in the United States District Court
               for the Southern District of New York, (2) waives any objection
               which the Company may have now or hereafter to the venue of any
               such suit, action or proceeding, and (3) irrevocably consents to
               the jurisdiction of the New York State Supreme Court, County of
               New York, and the United States District Court for the Southern
               District of New York in any such suit, action or proceeding. Each
               party hereto further agrees to accept and acknowledge service of
               any and all process which may be served in any such suit, action
               or proceeding in the New York State Supreme Court, County of New
               York, or in the United States District Court for the Southern
               District of New York and agrees that service and process upon
               such party mailed by certified mail to such party's address shall
               be deemed in every respect effective service of process upon such
               party, in any suit action or proceeding. THE PARTIES HERETO AGREE
               TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
               CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR
               ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

     8. ANNOUNCEMENT OF OFFERING.

               If the Offering is consummated, Laidlaw may at its expense and
               with the consent of the Company (which shall not be unreasonably
               withheld), place an announcement in such newspapers and
               periodicals as Laidlaw may desire in a manner that complies with
               all applicable laws, rules and regulations.

     9. ADVICE TO THE BOARD.

               The Company acknowledges that any advice given by Laidlaw to you
               is solely for the benefit and use of the Board of Directors of
               the Company and may not be used, reproduced, disseminated, quoted
               or referred to, without our prior written consent, except as may
               be required by law or in connection with any action or proceeding
               under paragraph 6.

     10. CONFLICTING ENGAGEMENTS.

               Nothing in this letter shall be construed to limit the ability of
               Laidlaw or its affiliates to pursue, investigate, analyze, invest
               in, or engage in investment banking, financial advisory or any
               other business relationship with entities other than the Company,
               notwithstanding that such entities may be engaged in a business
               which is similar to or competitive with the business of the
               Company, and notwithstanding that such entities may have actual
               or potential operations, products, services, plans, ideas,
               customers or supplies similar or identical to the Company's, or
               may have been identified by the Company as potential merger or
               acquisition targets or potential candidates for some other
               business combination, cooperation or relationship. The Company
               expressly acknowledges and agrees that it does not claim any
               proprietary interest in the identity of any other entity in its
               industry or otherwise, and that the identity of any such entity
               is not confidential information.
<PAGE>
                                      -5-

     11. INDEPENDENT CONTRACTOR.

               In carrying out its responsibilities under this letter, Laidlaw
               shall be an independent contractor and shall have no right or
               authority to assume or create any obligation on behalf of the
               Company.

     12. MISCELLANEOUS.

               The parties acknowledge and agree that with respect to phrases
               contained herein such as "as a results of our efforts,"
               "introduced to the Company by Laidlaw " or similar language, such
               phrases are intended to include any person or entity, directly or
               indirectly introduced to the Company by the undersigned. Thus, to
               the extent that the Company consummates any part of the Offering
               with any person or entity, whose introduction to the Company can
               be traced back, directly or indirectly, to a person or entity who
               was originally introduced to the Company by Laidlaw, Laidlaw is
               entitled to the compensation described herein.

               This Agreement, including its Schedules, constitutes the entire
               understanding of the parties with respect to the subject matter
               hereof and may not be altered or amended except in a writing
               signed by both parties. Upon expiration or termination of this
               Agreement, it is understood that the fee, expense,
               indemnification, reimbursement, contribution, and "tail"
               obligations of the Company (as provided in Section 3(b) hereto)
               shall survive any such expiration or termination and all fees and
               to the extent theretofore paid shall be retained by Laidlaw on a
               non-accountable basis.

               The execution of this Agreement does not constitute a commitment
               by Laidlaw or the Company to consummate any transaction
               contemplated hereunder and does not ensure the successful
               placement of securities of the Company or the success of Laidlaw
               with respect to securing any financing on behalf of the Company.
               The Companys engagement of Laidlaw is not intended to confer
               rights upon any person not a party hereto (including
               shareholders, directors, officers, agents, employees, or
               creditors of the Company) as against Laidlaw or its affiliates,
               or their respective directors, officers, employees or agents,
               successors or assigns. Laidlaw's engagement by the Company is not
               intended to confer rights upon any person not a party hereto
               (including shareholders, directors, officers, agents, employees,
               or creditors of the Company) as against the Company or its
               affiliates, or their respective directors, officers, employees or
               agents, successors or assigns. No promises or representations
               have been made except as expressly set forth in this agreement
               and the parties have not relied on any promises or
               representations except as expressly set forth in this agreement.
               Nothing contained herein should be construed as creating any
               fiduciary duties between the parties.

The rights and obligations of either party under this Agreement may not be
assigned or delegated by such party without the prior written consent of the
other party, and any other purported

<PAGE>
                                      -6-

assignment or delegation shall be null and void. If any provision of this
Agreement is determined to be invalid or unenforceable in any respect, then such
determination will not affect such provision in any other respect or any other
provision of this Agreement, which will remain in full force and effect. No
material provision of this agreement shall be deemed waived and no breach
excused, unless such waiver or consent excusing the breach shall be in writing
and signed by the party to be charged with such waiver or consent.

We look forward to working with you and developing a long-term relationship with
the Company.

                                            Very truly yours,
                                            LAIDLAW & COMPANY (UK) LTD.

                                            By: __________________________
                                                  Robert Bonaventura, President

Confirmed and accepted as of
the ______ day of May, 2005

RUBY MINING COMPANY

By: _______________________________
      G. Howard Collingwood, CEO

<PAGE>
                                      -7-

                                    SCHEDULE
                                    --------

                                 INDEMNIFICATION

     Recognizing that matters of the type contemplated in this engagement
sometimes result in litigation and that Laidlaw's role is advisory, the Company
agrees to indemnify and hold harmless Laidlaw, its affiliates and their
respective officers, directors, employees, agents and controlling persons
(collectively, the "Indemnified Parties"), from and against any losses, claims,
damages and liabilities, joint or several, related to or arising in any manner
out of any transaction, financing, proposal or any other matter (collectively,
the "Matters") contemplated by the engagement of Laidlaw hereunder, and will
promptly reimburse the Indemnified Parties for all expenses (including fees and
expenses of legal counsel) as incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim related to or
arising in any manner out of any Matter contemplated by the engagement of
Laidlaw hereunder, or any action or proceeding arising there from (collectively,
"Proceedings"), whether or not such Indemnified Party is a formal party to any
such Proceeding. Laidlaw agrees to provide prompt written notice to the Company
with respect to any Proceeding brought against any of the Indemnified Parties
with respect to indemnification sought hereunder. Notwithstanding the foregoing,
the Company shall not be liable in respect of any losses, claims, damages,
liabilities or expenses that a court of competent jurisdiction shall have
determined by final judgment resulted solely from the gross negligence or
willful misconduct of an Indemnified Party. The Company, at its sole discretion
and sole cost and expense, may, after notice to Laidlaw, assume the defense of
any such pending or threatened Proceeding, including the employment of counsel
reasonably satisfactory to Laidlaw. Notwithstanding the Company's election to
appoint counsel to represent the Indemnified Parties in an action, the
Indemnified Parties shall have the right to employ one separate counsel for
themselves, and the Company shall bear the reasonable fees, costs and expenses
of such separate counsel if (i) the use of counsel chosen by the Indemnifying
Parties to represent the Indemnified Parties would present such counsel with a
conflict of interest, (ii) the Company shall not have employed counsel
reasonably satisfactory to the Indemnified Parties to represent the Indemnified
Parties within a reasonable time after notice of the institution of such action
or (iii) the Company shall authorize in writing the Indemnified Parties to
employ separate counsel at the expense of the Company. The Company further
agrees that it will not, without the prior written consent of Laidlaw, settle,
compromise or consent to the entry of any judgment in any pending or threatened
Proceeding in respect of which indemnification may be sought hereunder (whether
or not Laidlaw or any Indemnified Party is an actual or potential party to such
Proceeding), unless such settlement, compromise or consent includes an
unconditional release of Laidlaw and each other Indemnified Party hereunder from
all liability arising out of such Proceeding.

          The Company agrees that if any indemnification or reimbursement sought
pursuant to this letter were for any reason not to be available to any
Indemnified Party or insufficient to hold it harmless as and to the extent
contemplated by this letter, then the Company shall contribute to the amount
paid or payable by such Indemnified Party in

<PAGE>
                                      -8-

respect of losses, claims, damages and liabilities in such proportion as is
appropriate to reflect the relative benefits to the Company and its stockholders
on the one hand, and Laidlaw on the other, in connection with the Matters to
which such indemnification or reimbursement relates or, if such allocation is
not permitted by applicable law, not only such relative benefits but also the
relative faults of such parties to the Company and/or its stockholders and to
Laidlaw with respect to Laidlaw's engagement shall be deemed to be in the same
proportion as (i) the total value paid or received or to be paid or received by
the Company and/or its stockholders pursuant to the Matters (whether or not
consummated) for which Laidlaw is engaged to render financial advisory services
bears to (ii) the fees paid to Laidlaw in connection with such engagement. In no
event shall the Indemnified Parties contribute or otherwise be liable for an
amount in excess of the aggregate amount of fees actually received by Laidlaw
pursuant to such engagement (excluding amounts received by Laidlaw as
reimbursement of expenses).

               The Company further agrees that no Indemnified Party shall have
any liability (whether direct of indirect, in contract or tort or otherwise) to
the Company for or in connection with Laidlaw's engagement hereunder except for
losses, claims, damages, liabilities or expenses that a court of competent
jurisdiction shall have determined by final judgment resulted solely from the
gross negligence or willful misconduct of such Indemnified Party. The indemnity,
reimbursement and contribution obligations of the Company shall be in addition
to any liability which the Company may otherwise have and shall be binding upon
and inure to the benefit of any successors, assigns, heirs and personal
representatives of the Company or an Indemnified Party.

        The indemnity, reimbursement, contribution provisions set forth herein
shall remain operative and in full force and effect regardless of (i) any
withdrawal, termination or consummation of or failure to initiate or consummate
any Matter referred to herein, (ii) any investigation made by or on behalf of
any party hereto or any person controlling (within the meaning of Section 15 of
the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange
Act of 1934, as amended) any party hereto, (iii) any termination or the
completion or expiration of this letter or Laidlaw's engagement and (iv) whether
or not Laidlaw's shall, or shall not be called upon to, render any formal or
informal advice in the course of such engagement.

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