Document:

EXHIBIT 10.3

                                 Bonus Criteria
                          ("Named Executive Officers")

                                   ----------

                      Chief Executive Officer and President
                                Fiscal Year 2005
                                   Bonus Plan

The bonus plan is a curve resulting in a bonus of up to 50% of base salary tied
to meeting certain target increases in EPS performance during the 2005 fiscal
year.

                                   ----------

            President NextGen Healthcare Information Systems Division
                                Fiscal Year 2005
                                   Bonus Plan

          Bonus Based on a Formula Incorporating the Following Factors:

            o     Year over Year % divisional revenue growth

            o     Year over Year % divisional operating income growth

            o     Cap = 100% of Earned Base Salary

                                   ----------

             Executive Vice President, General Manager QSI Division
                                Fiscal Year 2005
                                   Bonus Plan

The bonus opportunity related to QSI divisional financial performance is 15% of
earned base compensation. This bonus would be earned on the basis on growth in
Operating Income and Revenue in accordance with an established formula.

Secondarily, a discretionary bonus opportunity of up to 10% earned base salary
is tied to meaningful participation on corporate projects assigned to him by the
CEO.

Any recommendation for payments to be made under this discretionary portion of
this bonus plan would be presented by the CEO to the Comp Committee/Board for
approval prior to any payments being rendered.

                                       1
<PAGE>

                                   ----------

                      Chief Financial Officer and Secretary
                                Fiscal Year 2005
                                   Bonus Plan

The bonus opportunity for up to $60,000 in bonus payment for the fiscal year
ended March 31, 2005 is related to the achievement of certain qualitative goals
as may be approved by the Compensation Committee of the Board of Directors
considering, among other factors, the timely filing of SEC periodic reports and
Board report package distribution, achieving collection goals, audit completion
and responsiveness.

                                       2EXHIBIT 10.4

                          Director Compensation Program

Directors of the Company who are also employees of the Company are not
compensated for their services as directors or committee members. Directors of
the Company who are not also employees receive a fee of $2,000 per month and
$2,000 per meeting of the Board, along with reasonable expenses for serving on
the Board of Directors. Directors who serve on a committee of the Board of
Directors receive an additional fee of $1,000 per committee meeting attended,
together with reasonable expenses for attendance at committee meetings. On
September 21, 2004, the Company's Directors were each granted 2,500 options to
purchase common stock of the Company. The options fully vest in six months from
the date of grant.

                                       3MINERAL PROPERTY OPTION AGREEMENT

                  THIS AGREEMENT dated for reference March 15, 2004.

BETWEEN:

                  JAMES  H.  FORBES,  420  Younge  Court,  Thunder Bay, Ontario,
                  P7E 6G4;

                  ("Forbes")

                                                               OF THE FIRST PART

AND:

                  STONECHURCH,  INC, a body corporate,  duly incorporated  under
                  the laws of the State of Nevada and having its head  office at
                  203 Bannerman Street North, Timmins, Ontario, P0n 1C0;

                  ("Stonechurch")

                                                              OF THE SECOND PART

W H E R E A S :

A. Forbes is the  registered and  beneficial  owner of the one mineral  property
claim located in the West  Shiningtree  Lake area,  Larder Lake Mining Division,
Ontario,  which claim is more  particularly  described  in Schedule "A" attached
hereto which forms a material part hereof (collectively, the "Claim");

B. Forbes has  agreed  to  grant  to S tonechurch the sole and exclusive  right,
privilege and option to  explore the Claim together with the sole and  exclusive
right,  privilege and option to purchase the Claim upon the terms and conditions
hereinafter set forth;

NOW THEREFORE THIS AGREEMENT  WITNESSETH  that in consideration  of  the  mutual
covenants and provisos herein contained,  THE PARTIES HERETO AGREE AS FOLLOWS:

1.                OPTIONOR'S REPRESENTATIONS

1.1               Forbes represents and warrants to Stonechurch that:

         (a)      Forbes is the  registered  and  beneficial  owner of the Claim
                  and holds the right to explore and develop the Claim;

         (b)      Forbes  holds the Claim free and clear of all  liens,  charges
                  and  claims of others,  and  Forbes  has a free and  unimpeded
                  right of access to the Claim and has use of the Claim  surface
                  for the herein purposes;

<PAGE>
                                       2

         (c)      The Claim has been duly and validly  located and recorded in a
                  good  and  miner-like  manner  pursuant  to  the  laws  of the
                  Province of Ontario and are in good  standing in Ontario as of
                  the date of this Agreement;

         (d)      There are no adverse  claims or  challenges  against or to the
                  Forbes's  ownership  of or  title  to  the  Claim  nor  to the
                  knowledge of Forbes is there any basis therefor, and there are
                  no  outstanding  agreements  or options to acquire or purchase
                  the Claim or any portion thereof;

         (e)      Forbes has the full  right,  authority  and  capacity to enter
                  into this Agreement without first obtaining the consent of any
                  other person or body  corporate  and the  consummation  of the
                  transaction  herein  contemplated  will not  conflict  with or
                  result in any breach of any covenants or agreements  contained
                  in, or constitute a default  under,  or result in the creation
                  of any  encumbrance  under the  provisions  of any  indenture,
                  agreement or other instrument  whatsoever to which Forbes is a
                  party or by which he is bound or to which he is subject; and

         (f)      No  proceedings  are pending for, and Forbes is unaware of any
                  basis for, the institution of any proceedings which could lead
                  to the  placing of Forbes in  bankruptcy,  or in any  position
                  similar to bankruptcy.

1.2 The  representations and warranties of Forbes set out in paragraph 1.1 above
form a part of this  Agreement and are  conditions  upon which  Stonechurch  has
relied in entering into this Agreement and shall survive the  acquisition of any
interest in the Claim by Stonechurch .

1.3 Forbes will indemnify  Stonechurch from all loss, damage, costs, actions and
suits  arising out of or in  connection  with any breach of any  representation,
warranty,  covenant, agreement or condition made by Forbes and contained in this
Agreement.

1.4 Forbes  acknowledges  and agrees  that  Stonechurch  has  entered  into this
Agreement  relying on the  warranties  and  representations  and other terms and
conditions of this Agreement and that no information which is now known or which
may hereafter become known to Stonechurch shall limit or extinguish the right to
indemnity  hereunder,  and,  in  addition  to any other  remedies it may pursue,
Stonechurch  may deduct the amount of any such loss or damage  from any  amounts
payable by it to Forbes hereunder.

2.                STONECHURCH'S REPRESENTATIONS

Stonechurch  warrants  and  represents  to Forbes that it is a  body  corporate,
duly  incorporated  under the laws of the State of Nevada with  full  power  and
absolute capacity to enter into  this  Agreement  and  that  the terms  of  this
Agreement have been authorized by all  necessary  corporate  acts  and  deeds in
order to give effect to the terms hereof.

<PAGE>
                                       3
3.                GRANT OF OPTION

Forbes  hereby  gives and grants to  Stonechurch  the sole  and  exclusive  righ
 and option to acquire a l00% undivided right, title and interest  in and to the
Claim (the "Option"), subject to a 2% net smelter returns royalty and a 2% gross
overriding royalty on diamond production on the Claims,as described respectively
in  Schedules  B and C attached to this  Agreement,  by  performing the acts and
deeds and paying the sums provided for in paragraph 4.

4.                CONSIDERATION FOR THE GRANT OF OPTION

4.1 In order to keep the Option in respect of the Claim in good  standing and in
force and effect, Stonechurch shall be obligated to:

                  Cash Payment
                  ------------
         (a)      Pay to Forbes a total of $50,000 as follows:

                  (i)      $1,000 immediately upon execution of  this  agreement
                           by all parties;

                  (ii)     an additional $14,000 by September 15, 2005;

                  (iii)    an additional $15,000 by March 15, 2007; and

                  (iv)     an additional $20,000 by March 15, 2008.

                  Expenditure Commitments
                  -----------------------
         (b)      Incur, or cause to be incurred, exploration work on the Claims
                  totalling  at least  $200,000  by March 15,  2008,  which work
                  shall be conducted  by  Stonechurch  under the  direction of a
                  qualified geologist or project engineer, as follows:

                  (i)      $2,500.00 in  expenditures  on  the Claim by March 1,
                           2005.  Stonechurch's completion of these expenditures
                           is mandatory;

                  (ii)     No less than a further $2,500 of  expenditures  to be
                           incurred on the Claim by September 1, 2005;

                  (iii)    No less than a further $20,000 of expenditures  to be
                           incurred on the Claim by March 1, 2006;

                  (iv)     No less than a further  $50,000 of expenditures to be
                           incurred on the Claim by March 1, 2007; and

                  (v)      No less than a further $125,000 of expenditures to be
                           incurred on the Claim by March 1, 2008.

                  Advance Royalty Payments
                  ------------------------

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                                       4

         (c)      Stonechurch  agrees  to  pay to  Forbes  advance  net  smelter
                  returns  royalty  payments  on the Claim of $10,000  per year.
                  Advance net smelter  return  royalty  payments shall be due on
                  the March 1 each year commencing March 1, 2009, and continuing
                  on  March  1 of  each  calendar  year  thereafter  until  this
                  Agreement is terminated.  All such advance net smelter returns
                  royalty  payments  that  Stonechurch  makes to Forbes shall be
                  fully  credited  toward any monies due under the provisions of
                  paragraph 10.

                  Assessment Work

         (d)      Pay, or cause to be paid, to Forbes, or on Forbes's behalf, as
                  Stonechurch may determine,  all Claims payments and assessment
                  work  required  to keep  the  Claim  and this  Option  in good
                  standing during the term of this Agreement.

4.3 Stonechurch  shall  deliver  all  consideration  due  to  the  Forbes  under
paragraph 4.1 directly in his name.

5.                PERIPHERAL INTEREST

Stonechurch  agrees that any other right or interest  acquired  in  any  mineral
property  claim  group  within a two kilometer distance of the boundaries of the
Claim  will form  part of the Claim for  the  purpose  of  this  agreement.  Any
additional  mineral  property right  or  interest  that Stonechurch  may acquire
shall be included under the provisions of paragraph 6.1.

6.                RIGHT TO ABANDON PROPERTY INTERESTS

6.1 Should Stonechurch,  in its sole discretion,  determine that any part of the
Claim no longer warrants further  exploration and development,  then Stonechurch
may  abandon  such  interest  or  interests  without  affecting  its  rights  or
obligations under this Agreement, so long as Stonechurch provides Forbes with 30
days notice of its  intention to do so. Upon receipt of such notice,  Forbes may
request  Stonechurch  to  retransfer  the title to such interest or interests to
him, and Stonechurch  hereby agrees to do so, and upon expiry of the 30 days, or
upon the earlier transfer thereof,  such interests shall cease to be part of the
Claim for the purposes of this Agreement.

6.2 Any Claim that  Stonechurch  returns to Forbes in accordance  with paragraph
6.1 shall have a minimum of one year of assessment  work credited  against it at
the time of return.

7.                TERMINATION OF OPTION

7.1 Subject to paragraph 7.2, the Option shall terminate if Stonechurch fails to
make the required cash payments,  advance royalty payments or, fails to complete
the required  assessment work in accordance with paragraph 4.1 herein within the
time periods specified therein.

7.2 If Stonechurch shall be in default of any requirement set forth in paragraph
4.1 herein,  Forbes  shall give written  notice to  Stonechurch  specifying  the
default and Stonechurch  shall not lose any rights granted under this Agreement,
unless  within  30 days  after  the  giving of  notice  of  default  by  Forbes,
Stonechurch  has  failed to take  reasonable  steps to cure the  default  by the
appropriate performance.

<PAGE>
                                       5

7.3 If the  Option is  terminated  in  accordance  with  paragraphs  7.1 and 7.2
herein,  Stonechurch  shall have no interest  in or to the Claim,  and all share
issuances,  expenditures  and payments  made by  Stonechurch  to or on behalf of
Forbes under this Agreement shall be non-refundable by Forbes to Stonechurch for
which  Stonechurch  shall have no recourse.  Within 60 days of such termination,
Stonechurch shall transfer the Claim back to Forbes, failing which, Forbes shall
have the  right to act as  attorney  for  Stonechurch  for the  purpose  of such
transfer.

8.                ACQUISITION OF INTERESTS IN THE PROPERTY

At such time as Stonechurch has made the required cash payments and  exploration
expenditures in accordance with paragraph 4.1 herein,  within  the  time periods
specified  therein,  then the Option shall be deemed to  have  been exercised by
Stonechurch,  and  Stonechurch  shall  have  thereby,  without  any further act,
acquired an undivided 100% interest in and to the Claim.

9.                RIGHT OF ENTRY

For so long as the Option  continues in full force and effect, Stonechurch,  its
employees,  agents,  permitted  assigns  and  independent contractors shall have
the sole and exclusive right and option to:

         (a)      enter upon the Claim;

         (b)      have exclusive and quiet possession of the Claim;

         (c)      incur expenditure;

         (d)      bring  upon and  erect  upon the  Claim such mining facilities
                  as  Stonechurch  may  consider advisable; and

         (e)      remove from the Claim and sell or otherwise dispose of mineral
                  products.

10.               NET SMELTER RETURNS ROYALTY

10.1 On the date  Stonechurch  commences  commercial  production  on the  Claim,
Forbes  shall be entitled to receive and  Stonechurch  shall pay to Forbes 2% of
net smelter returns.  "Commercial  production" shall not include milling of ores
for the  purpose of testing  or  milling by a pilot  plant or milling  during an
initial tune-up period of a plant.

10.2 Stonechurch shall be under no obligation whatsoever to place the Claim into
commercial  production  and  in  the  event  they  are  placed  into  commercial
production, Stonechurch shall have the right, at any time, to curtail or suspend
such production as it, in its absolute discretion, may determine.

<PAGE>
                                       6

11.               OPERATOR

11.1 After the execution of this  Agreement,  Stonechurch,  or at  Stonechurch's
option, its respective associate or nominee or such other unrelated entity as it
may  determine,  will act as the  operator  of the Claim  under this  Agreement.
Stonechurch,  if  operator,  may resign as the operator at any time by giving 30
calendar  days prior  written  notice to Forbes,  and within such 30 day period,
Stonechurch  may appoint  another  party who covenants to act as the operator of
the Claim upon such terms as Stonechurch sees fit.

11.2 Notwithstanding  paragraph 11.1, Forbes shall have the right to conduct and
supervise all of Stonechurch's exploration and development work on the Claim and
to be compensated at competitive industry rates.

12.               POWER AND AUTHORITY OF THE OPERATOR

12.1 After the execution of this Agreement,  the Operator shall have full right,
power and authority to do everything  necessary or desirable in connection  with
the  exploration  and  development  of the Claims and to determine the manner of
operation of the Claim as a mine.

12.2 Where possible, the Operator shall insure that all field work is conducted,
and that all assay and work  program  results  are  verified,  by a third  party
independent from Stonechurch.

13.               REGISTRATION OF PROPERTY INTERESTS

Upon  the request of Stonechurch, Forbes shall assist Stonechurch to record this
Agreement with the  appropriate mining recorder and, when required, Forbes shall
further provide  Stonechurch  with  such recordable documents as Stonechurch and
its  counsel  shall require to record  its due interest in respect of the Claim.

14.               FURTHER ASSURANCES

The parties hereto agree to do or cause to be done all acts or  things necessary
to implement and carry into effect the provisions and intent of this Agreement.

15.               FORCE MAJEURE

                  If  Stonechurch is prevented from or delayed in complying with
any  provisions  of this  Agreement  by reasons  of  strikes,  labour  disputes,
lockouts,  labour  shortages,  power  shortages,   fires,  wars,  acts  of  God,
governmental  regulations  restricting  normal operations or any other reason or
reasons beyond the control of Stonechurch,  the time limited for the performance
of the various  provisions of this  Agreement as set out above shall be extended
by a period of time equal in length to the period of such  prevention and delay,
and Stonechurch,  insofar as is possible,  shall promptly give written notice to
Forbes of the  particulars of the reasons for any prevention or delay under this
section,  and  shall  take all  reasonable  steps to  remove  the  cause of such
prevention  or delay and  shall  give  written  notice to Forbes as soon as such
cause ceases to exist.

16.               CONFIDENTIAL INFORMATION

No information furnished by Stonechurch to Forbes hereunder in  respect  of  the
activities carried out on the Claim by Stonechurch, or related to  the  sale  of
mineral products derived from the Claim,  shall be  published by  Forbes without

<PAGE>
                                       7

the prior written  consent of  Stonechurch,  but such consent in  respect of the
reporting  of factual data shall not be  unreasonably withheld. Forbes, shall be
entitled to copies of all exploration work and development data that Stonechurch
may acquire in conducting  work on the Claim,  in written and electronic format,
to be provided as the data is generated

17.               ENTIRE AGREEMENT

This  Agreement  constitutes the  entire agreement to date between  the  parties
hereto  and   supersedes  every previous  agreement, communication, expectation,
negotiation,   representation or understanding, whether oral or written, express
or implied,  statutory or otherwise,  between the parties hereto with respect to
the subject matter of this Agreement.

18.               NOTICE

18.1 Any notice  required to be given under this Agreement shall be deemed to be
well and  sufficiently  given if delivered,  or if mailed by registered mail, in
the case of Forbes addressed to him as follows:

                  James H. Forbes
                  420 Younge Street
                  Thunder Bay, Ontario
                  P7E 6G4

and in the case of Stonechurch addressed as follows:

                  STONECHURCH, INC.
                  203 Bannerman Street North,
                  Timmins, Ontario
                  P0N 1C0

                  Attention: Bryan McKay, President

and any  notice  given as  aforesaid  shall be  deemed to have  been  given,  if
delivered,  when  delivered,  or if mailed by  registered  mail,  on the  fourth
business day after the date of mailing thereof.

18.2 Either party  hereto may from time to time by notice in writing  change its
address for the purpose of this section.

19.               OPTION ONLY

Until the Option is exercised, this is an option only and except as specifically
provided  otherwise,  nothing herein  contained shall be construed as obligating
Stonechurch  to do any  acts  or  make  any  payments hereunder  and any acts or
payments  made  hereunder  shall not be  construed as  obligating Stonechurch to
do any further acts or make any further payments.

<PAGE>
                                       8

20.               RELATIONSHIP OF PARTIES

Nothing  contained  in this  Agreement  shall,  except to the extentspecifically
authorized hereunder,  be deemed to  constitute  either party  hereto a partner,
agent or legal representative of the other party.

21.               TIME OF ESSENCE

Time shall be of the essence of this Agreement.

22.               TITLES

The  titles to the  respective  sections  hereof  shall not be  deemed a part of
this  Agreement  but shall be regarded as having been used for convenience only.

23.               CURRENCY

All  funds  referred  to  under  the  terms  of  this  Agreement  shall be funds
designated in the lawful currency of the United Stares of America.

24.               SEVERABILITY

In the  event  that any of the  paragraphs  contained  in this Agreement, or any
portion  of  thereof,  is  unenforceable  or  is declared invalid for any reason
whatsoever,   such   unenforceability  or   invalidity  shall  not  affect   the
enforceability  or  validity  of  the  remaining   terms  or  portions   thereof
contained in this  Agreement and such  unenforceable  or invalid  paragraph,  or
portion thereof, shall be severable from the remainder of the Agreement.

25.               APPLICABLE LAW

The situs  of the  Agreement i s  Timmins,  Ontario,  and for all purposes  this
Agreement will  be  governed  exclusively  by  and  construed  and  enforced  in
accordance with the laws prevailing in the Province of Ontario.

26.               ENUREMENT

This  Agreement  shall  enure to the benefit of and be binding  upon the parties
hereto and their respective successors and assigns.

<PAGE>

                                       9

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

                                                              STONECHURCH, INC.

                                                     per:
/s/ James Forbes                                         /s/  Bryan McKay
--------------------------------                     ---------------------------
James H. Forbes                                      Bryan McKay, President

<PAGE>

                                       10

                                  SCHEDULE "A"
                                  ------------
               TO THAT CERTAIN AGREEMENT MADE AS OF MARCH 15, 2004
                  BETWEEN JAMES H. FORBES AND STONECHUCH, INC.

The West  Shiningtree  Lake claim block consists of a total of one claim located
in the Larder Lake Mining Division,  Canada with the following record number and
area:

Township.       Recording Date        Record No.           Acreage
---------       --------------        ----------           -------
Asquith         December 31, 2003     3007093              160

<PAGE>

                                       11

                                  SCHEDULE "B"
                                  ------------
               TO THAT CERTAIN AGREEMENT MADE AS OF MARCH 15, 2004
                  BETWEEN JAMES H. FORBES AND STONECHURCH, INC.

                 DEFINITION OF GROSS OVERRIDING ROYALTY ("GORR")

(All capitalized  terms used herein shall have the definitions  contained in the
Agreement, unless otherwise specified.)

Pursuant to the Agreement to which this Appendix is attached, Forbes is entitled
to a  royalty  (the  "GORR")  equal  to 2% of the  Average  Appraised  Value (as
hereinafter  defined) of all gem and  industrial  diamonds recovered, sorted and
graded  from  the  Claims  (the  "Diamonds"), free  and  clear  of  all costs of
development and operations.

"Average Appraised Value"means the average of the valuations in Canadian dollars
of the  Diamonds  determined  by  two  independent  graders,  one  appointed  by
Stonechurch and one appointed by Forbes.  Such independent graders shall be duly
qualified  and  accredited,  and shall sort,  grade and  value the  Diamonds  in
accordance  with industry  standards, having regard to, but without limiting the
generality  of the  foregoing,  the  commercial  demand  for  the Diamonds  Each
independent valuator shall value each particular  classification of the Diamonds
in  accordance with the industry pricebooks, standards and formulas. The parties
acknowledge that the intention is that the GORR is to be  paid to Forbes on this
basis,  regardless  of the  price or  proceeds  actually received by Stonechurch
for or in connection with the Diamonds or the manner in  which  a  sale  of  the
Diamonds to a third party is made, and without deduction.

Stonechurch  will calculate and pay the GORR to Forbes within 30 days of the end
of each  calendar  quarter,  based on all  Diamonds from the Property which were
graded in such calendar quarter.

Forbes shall not be entitled to  participate in the profits or be  obligated  to
share  in any  losses  generated  by the  Purchaser's  actual marketing or sales
practices.

Forbes shall also at his election have the right to take their GORR in kind.

<PAGE>
                                       12

                                  SCHEDULE "C"
                                  ------------
               TO THAT CERTAIN AGREEMENT MADE AS OF MARCH 15, 2004
                  BETWEEN JAMES H. FORBES AND STONECHURCH, INC.

                               NET SMELTER RETURNS

1. In the  Agreement,  "Net  Smelter  Returns"  means  the net  amount  of money
received  by  Stonechurch  for its own  account  from  the  sale of ore,  or ore
concentrates  or any other  products  from the  Claim to a smelter  or other ore
buyer  after  deduction  of smelter  and /or  refining  charges,  ore  treatment
charges,  penalties  and any and all  charges  made by the  purchaser  of ore or
concentrates,  less any and all  transportation  costs  which may be incurred in
connection with the transportation of ore or concentrates.

2. Payment  of Net  Smelter  Returns   by  Stonechurch  to Forbes  shall be made
quarterly within 45 days after the end of each fiscal quarter of Stonechurch and
shall  be  accompanied  by  unaudited  financial  statements  pertaining  to the
operations  carried out by Stonechurch  on the Claim.  Within 120 days after the
end of each fiscal year of Stonechurch in which Net Smelter  Returns are payable
to Forbes,  the records  relating to the  calculation of Net Smelter Returns for
such year shall be audited and any resulting  adjustments  in the payment of Net
Smelter Returns  payable to Forbes shall be made  forthwith.  A copy of the said
audit shall be  delivered  to Forbes  within 30 days of the end of such  120-day
period.

3. Each annual  audit shall be final and not  subject to  adjustment  unless the
Forbes delivers to Stonechurch  written  exceptions in reasonable  detail within
one month after Forbes receives the report.  Forbes, or his representative  duly
authorized in writing,  at his expense,  shall have the right to audit the books
and records of  Stonechurch  related to Net  Smelter  Returns to  determine  the
accuracy of the report, but shall not have access to any other books and records
of Stonechurch.  The audit shall be conducted by a chartered or certified public
accountant of recognized standing. Stonechurch shall have the right to condition
access to its books and  records  on  execution  of a written  agreement  by the
auditor  that all  information  will be held in  confidence  and used solely for
purposes of audit and resolution of any disputes  related to the report.  A copy
of Forbes's report shall be delivered to Stonechurch and the amount which should
have been paid  according  to Forbes's  report shall be paid  forthwith.  In the
event that the said  discrepancy is to the detriment of Forbes and exceeds 5% of
the amount actually paid by Stonechurch,  then Stonechurch  shall pay the entire
cost of the audit.

4. In the event  smelting or refining  are  carried out in  facilities  owned or
controlled,  in whole or in part, by Stonechurch,  charges,  costs and penalties
with respect to such operations, excluding transportation, shall mean reasonable
charges,  costs  and  penalties  for such  operations  but not in  excess of the
amounts that Stonechurch would have incurred if such operations were carried out
at facilities  not owned or controlled by Stonechurch  then offering  comparable
custom services.

5.  Forbes's  shall at his  election  have the right to take  their Net  Smelter
Return as it may pertain to precious  metals  defined as gold and platinum group
elements in kind.

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