Document:

Volcan Holdings, Inc.: Exhibit 10.1 - Prepared by TNT Filings Inc.

SUBSCRIPTION AGREEMENT 

          This
Subscription Agreement (this “Agreement”) is being delivered to the
purchaser identified on the signature page to this Agreement (the
“Subscriber”) in connection with its investment in Volcan Holdings, Inc.,
a Delaware corporation (“Pubco”), that will acquire all of the issued and
outstanding capital stock of Volcan Australia Corporation PTY Ltd., a New South
Wales corporation (“Volcan”), and succeed to the business of Volcan as
its sole line of business (on a combined, post-acquisition basis, Pubco and its
subsidiary, Volcan, are collectively referred to as the “Company”). The
Company is conducting a private placement (the “Offering”) of up to
$2,000,000 of units (“Units”) at a purchase price of $35,000 per Unit.
Each Unit shall consist of (i) 100,000 shares of common stock, par value $0.001
per share (the “Shares”) at a per share purchase price of $0.35 (the
“Share Purchase Price”) and (ii) five year warrants to purchase 100,000
shares of the Company’s common stock (the “Warrant Shares”) at a per
share exercise price of $1.00 (the “Exercise Price”), substantially in
the form attached hereto as Exhibit A (the “Warrants”). For
purposes of this Agreement, the term “Securities” shall refer to the
Units, the Shares, the Warrants, and the Warrant Shares. All funds received in
the Offering prior to the closing of the Offering (the “Closing”) shall
be held in escrow by American Stock Transfer & Trust Company (the “Escrow
Agent”) and, upon fulfillment of the other conditions precedent set forth
herein, shall be released from escrow and delivered to the Company at which time
the Units subscribed for as further described below shall be delivered, subject
to Section 8 hereof, to the Subscriber. 

1.      SUBSCRIPTION
AND PURCHASE PRICE 

          (a)     
Subscription. Subject to the conditions set forth in Section 2 hereof,
the Subscriber hereby subscribes for and agrees to purchase the number of Units
indicated on page 10 hereof on the terms and conditions described herein. 

          (b)     
Purchase of Units. The Subscriber understands and acknowledges that the
purchase price to be remitted to the Company in exchange for the Units shall be
set at $35,000 per Unit, for an aggregate purchase price as set forth on page 10
hereof (the “Aggregate Purchase Price”). The Subscriber’s delivery of
this Agreement to the Company shall be accompanied by payment for the Units
subscribed for hereunder, payable in United States Dollars, by wire transfer of
immediately available funds delivered contemporaneously with the Subscriber’s
delivery of this Agreement to the Company in accordance with the instructions
provided on Exhibit B. The Subscriber understands and agrees that,
subject to Section 2 and applicable laws, by executing this Agreement, it is
entering into a binding agreement. 

2.      ACCEPTANCE,
OFFERING TERM AND CLOSING PROCEDURES 

          (a)      Acceptance
or Rejection. The Subscriber understands and agrees that the Company
reserves the right to reject this subscription for Units in whole or part in any
order at any time prior to the Closing for any reason, notwithstanding the
Subscriber’s prior receipt of notice of acceptance of the Subscriber’s
subscription. In the event of rejection of this subscription by the Company in
accordance with this Section 2, or if the sale of the Units is not consummated
by the Company for any reason or no reason, this Agreement and any other
agreement entered into between the Subscriber and the Company relating to this
subscription shall thereafter have no force or effect, and the Company shall
promptly return or cause to be returned to the Subscriber the purchase price
remitted to the Escrow Agent, without interest thereon or deduction therefrom.

        (b)     
Closing. The Closing shall take place at the offices of Haynes and Boone,
LLP, 1221 Avenue of the Americas, 26th Floor, New York, New York
10020, or such other place as determined by the Company. The Closing shall take
place on a Business Day promptly following the satisfaction of the conditions
set forth in Section 8 below, as determined by the Company (the “Closing
Date”). “Business Day” shall mean from the hours of 9:00 a.m.
(Eastern Time) through 5:00 p.m. (Eastern Time) of a day other than a Saturday,
Sunday or other day on which commercial banks in New York, New York are
authorized or required to be closed. The Shares and Warrants purchased by the
Subscriber will be delivered by the Company promptly following the Closing. 

          (c)     
Following Acceptance or Rejection. The Subscriber acknowledges and agrees
that this Agreement and any other documents delivered in connection herewith
will be held by the Company. In the event that this Agreement is not accepted by
the Company for whatever reason, which the Company expressly reserves the right
to do, this Agreement, the Aggregate Purchase Price received (without interest
thereon) and any other documents delivered in connection herewith will be
returned to the Subscriber at the address of the Subscriber as set forth in 

this Agreement. If this Agreement is accepted by the Company,
the Company is entitled to treat the Aggregate Purchase Price received as an
interest free loan to the Company until such time as the Subscription is
accepted. 

          (d)      Rescission
Right. Notwithstanding anything to the contrary contained herein, the
Subscriber may rescind its subscription for Units at anytime prior to the
Closing for any reason or for no reason upon prior written notice of such
rescission election (the “Rescission Notice”). Upon receipt of a
Rescission Notice prior to the Closing, this Agreement and any other agreement
entered into between the Subscriber and the Company relating to this
subscription shall thereafter have no force or effect, and the Company shall
promptly return or cause to be returned to the Subscriber the purchase price
remitted to the Escrow Agent, without interest thereon or deduction therefrom.

3.      THE
SUBSCRIBER’S REPRESENTATIONS, WARRANTIES AND COVENANTS 

          The
Subscriber hereby acknowledges, agrees with and represents, warrants and
covenants to the Company, as follows: 

          (a)      The
Subscriber has full power and authority to enter into this Agreement, the
execution and delivery of which has been duly authorized, if applicable, and
this Agreement constitutes a valid and legally binding obligation of the
Subscriber. 

          (b)     
The Subscriber acknowledges its understanding that the Offering and sale of the
Securities is intended to be exempt from registration under the Securities Act
of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) of
the Securities Act and the provisions of Regulation D promulgated thereunder
(“Regulation D”). In furtherance thereof, the Subscriber
represents and warrants to the Company and its affiliates as follows: 

          (i)     
The Subscriber realizes that the basis for the exemption from registration may
not be available if, notwithstanding the Subscriber’s representations contained
herein, the Subscriber is merely acquiring the Securities for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise. The Subscriber does not have any such intention. 

          (ii)      The
Subscriber realizes that the basis for exemption would not be available if the
Offering is part of a plan or scheme to evade registration provisions of the
Securities Act or any applicable state or federal securities laws. 

          (iii)     
The Subscriber is acquiring the Securities solely for the Subscriber’s own
beneficial account, for investment purposes, and not with a view towards, or
resale in connection with, any distribution of the Securities. 

          (iv)      The
Subscriber has the financial ability to bear the economic risk of the
Subscriber’s investment, has adequate means for providing for its current needs
and contingencies, and has no need for liquidity with respect to an investment
in the Company. 

          (v)      The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative
and/or tax advisor, if any (collectively, the “Advisors”) has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of a prospective investment in the Securities.
If other than an individual, the Subscriber also represents it has not been
organized solely for the purpose of acquiring the Securities. 

          (vi)     
The Subscriber (together with its Advisors, if any) has received all documents
requested by the Subscriber, if any, has carefully reviewed them and understands
the information contained therein, prior to the execution of this Agreement.

          (c)      The
Subscriber is not relying on the Company or any of its employees, agents,
sub-agents or advisors with respect to the legal, tax, economic and related
considerations involved in this investment. The Subscriber has relied on the
advice of, or has consulted with, only its Advisors. Each Advisor, if any, has
disclosed to the Subscriber in writing (a copy of which is annexed to this
Agreement) the specific details of any and all past, present or future
relationships, actual or contemplated, between the Advisor and the Company or
any affiliate or sub-agent thereof. 

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          (d)     
The Subscriber has carefully considered the potential risks relating to the
Company and a purchase of the Securities, and fully understands that the
Securities are a speculative investment that involves a high degree of risk of
loss of the Subscriber’s entire investment. 

          (e)      The
Subscriber will not sell or otherwise transfer any Securities without
registration under the Securities Act or an exemption therefrom, and fully
understands and agrees that the Subscriber must bear the economic risk of its
purchase because, among other reasons, the Securities have not been registered
under the Securities Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Securities Act and under the
applicable securities laws of such states, or an exemption from such
registration is available. In particular, the Subscriber is aware that the
Securities are “restricted securities,” as such term is defined in Rule 144
promulgated under the Securities Act (“Rule 144”), and they may not be
sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
Subscriber also understands that, except as otherwise provided in Section 5
hereof, the Company is under no obligation to register the Securities on behalf
of the Subscriber or to assist the Subscriber in complying with any exemption
from registration under the Securities Act or applicable state securities laws.
The Subscriber understands that any sales or transfers of the Securities are
further restricted by state securities laws and the provisions of this
Agreement. 

          (f)     
No oral or written representations or warranties have been made, or information
furnished, to the Subscriber or its Advisors, if any, by the Company or any of
its officers, employees, agents, sub-agents, affiliates, advisors or
subsidiaries in connection with the Offering, other than any representations of
the Company contained herein, and in subscribing for the Units, the Subscriber
is not relying upon any representations other than those contained herein. 

          (g)     
The Subscriber’s overall commitment to investments that are not readily
marketable is not disproportionate to the Subscriber’s net worth, and an
investment in the Securities will not cause such overall commitment to become
excessive. 

          (h)     
The Subscriber understands and agrees that the certificates for the Securities
shall bear substantially the following legend until (i) such Securities shall
have been registered under the Securities Act and effectively disposed of in
accordance with a registration statement that has been declared effective or
(ii) in the opinion of counsel for the Company, such Securities may be sold
without registration under the Securities Act, as well as any applicable “blue
sky” or state securities laws: 

  
              THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
      OR ANY APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED
      FOR INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED
      AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT FILED BY THE ISSUER WITH THE U.S. SECURITIES AND
      EXCHANGE COMMISSION COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR
      AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION
      IS NOT REQUIRED. 

  

          (i)      Neither
the Securities and Exchange Commission (the “SEC”) nor any state
securities commission has approved the Securities or passed upon or endorsed the
merits of the Offering. There is no government or other insurance covering any
of the Securities. 

          (j)     
The Subscriber and its Advisors, if any, have had a reasonable opportunity to
ask questions of and receive answers from a person or persons acting on behalf
of the Company concerning the Offering and the business, financial condition,
results of operations and prospects of the Company, and all such questions have
been answered to the full satisfaction of the Subscriber and its Advisors, if
any. 

          (k)      The
Subscriber is unaware of, is in no way relying on, and did not become aware of,
the Offering through or as a result of, any form of general solicitation or
general advertising, including, without limitation, any article, notice,
advertisement or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, or electronic mail over the
Internet, in connection with the Offering and is not 

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subscribing for Units and did not become aware of the Offering
through or as a result of any seminar or meeting to which the Subscriber was
invited by, or any solicitation of a subscription by, a person not previously
known to the Subscriber in connection with investments in securities generally.

          (l)     
The Subscriber has taken no action that would give rise to any claim by any
person for brokerage commissions, finders’ fees or the like relating to this
Agreement or the transactions contemplated hereby. 

          (m)      The
Subscriber acknowledges that any estimates or forward-looking statements or
projections furnished by the Company to the Subscriber were prepared by the
management of the Company in good faith, but that the attainment of any such
projections, estimates or forward-looking statements cannot be guaranteed by the
Company or its management and should not be relied upon. 

          (n)      (For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents
that such fiduciary has been informed of and understands the Company’s
investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent
with the provisions of ERISA that require diversification of plan assets and
impose other fiduciary responsibilities. The Subscriber or Plan fiduciary (i) is
responsible for the decision to invest in the Company; (ii) is independent of
the Company and any of its affiliates; (iii) is qualified to make such
investment decision; and (iv) in making such decision, the Subscriber or Plan
fiduciary has not relied primarily on any advice or recommendation of the
Company or any of its affiliates. 

          (o)      The
Subscriber will indemnify and hold harmless the Company and, where applicable,
its directors, officers, employees, agents, advisors, affiliates and
shareholders, and each other person, if any, who controls any of the foregoing
from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all fees, costs and expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any claim, lawsuit, administrative proceeding or investigation whether commenced
or threatened) (a “Loss”) arising out of or based upon any representation
or warranty of the Subscriber contained herein or in any document furnished by
the Subscriber to the Company in connection herewith being untrue in any
material respect or any breach or failure by the Subscriber to comply with any
covenant or agreement made by the Subscriber herein or therein; provided,
however, that the Subscriber shall not be liable for any Loss that in the
aggregate exceeds such Subscriber’s Aggregate Purchase Price tendered hereunder.

          (p)     
The Subscriber is, and on each date on which the Subscriber continues to own
restricted securities from the Offering will be, an “Accredited Investor” as
defined in Rule 501(a) under the Securities Act. In general, an “Accredited
Investor” is deemed to be an institution with assets in excess of $5,000,000 or
individuals with a net worth in excess of $1,000,000 or annual income exceeding
$200,000 or $300,000 jointly with his or her spouse. 

          (q)      The
Subscriber has not authorized any person or entity to act as its Purchaser
Representative (as that term is defined in Regulation D in connection with the
Offering.

4.      THE
COMPANY’S REPRESENTATIONS, WARRANTIES AND COVENANTS 

          The
Company hereby acknowledges, agrees with and represents, warrants and covenants
to the Subscriber, as follows: 

          (a)     
The Company has the corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement has been duly
authorized, executed and delivered by the Company and is valid, binding and
enforceable against the Company in accordance with its terms. 

          (b)      The
Securities to be issued to the Subscriber pursuant to this Agreement, when
issued and delivered in accordance with the terms of this Agreement, will be
duly and validly issued and will be fully paid and non-assessable. 

          (c)     
Neither the execution and delivery nor the performance of this Agreement by the
Company will conflict with the Company’s organizational materials, as amended to
date, or result in a breach of any terms or provisions of, or constitute a
default under, any material contract, agreement or instrument to which the
Company is a party or by which the Company is bound. 

- 4 - 

         (d)      The
Company acknowledges and agrees that the Subscriber is acting solely in the
capacity of an arm’s length purchaser with respect to the Securities and the
transactions contemplated hereby. The Company further acknowledges that the
Subscriber is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by the Subscriber or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to the Subscriber’s purchase of the
Units. The Company further represents to the Subscriber that the Company’s
decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its
representatives. 

          (e)      The
Company will indemnify and hold harmless the Subscriber and, where applicable,
its directors, officers, employees, agents, advisors and shareholders, from and
against any and all Loss arising out of or based upon any representation or
warranty of the Company contained herein or in any document furnished by the
Company to the Subscriber in connection herewith being untrue in any material
respect or any breach or failure by the Company to comply with any covenant or
agreement made by the Company to the Subscriber in connection therewith;
provided, however, that the Company’s liability shall not exceed
the Subscriber’s Aggregate Purchase Price tendered hereunder. 

5.      PIGGY-BACK
REGISTRATION RIGHTS

          (a)      For
a period of twelve (12) months following the Closing Date, the Company shall
notify the Subscriber in writing at least twenty (20) days prior the filing of
any registration statement under Securities Act, in connection with a public
offering of shares of the Company’s common stock (including, but not limited to,
registration statements relating to secondary offerings of securities of the
Company but excluding any registration statements (i) on Form S-4 or S-8 (or any
successor or substantially similar form), or of any employee stock option, stock
purchase or compensation plan or of securities issued or issuable pursuant to
any such plan, or a dividend reinvestment plan, (ii) otherwise relating to any
employee, benefit plan or corporate reorganization or other transactions covered
by Rule 145 promulgated under the Securities Act, or (iii) on any registration
form which does not permit secondary sales or does not include substantially the
same information as would be required to be included in a registration statement
covering the resale of the Shares and the Warrant Shares and will afford the
Subscriber an opportunity to include in such registration statement all or part
of the Warrant Shares held by the Subscriber. In the event the Subscriber
desires to include in any such registration statement all or any part of the
Shares and the Warrant Shares held by the Subscriber, the Subscriber shall
within ten (10) days after the above-described notice from the Company, so
notify the Company in writing, including the number of such Shares and Warrant
Shares the Subscriber wishes to include in such registration statement. If the
Subscriber decides not to include all of its Shares and Warrant Shares in any
registration statement thereafter filed by the Company, the Subscriber shall
nevertheless continue to have the right to include any Shares and Warrant Shares
in any subsequent registration statement or registration statements as may be
filed by the Company with respect to the offering of the securities, all upon
the terms and conditions set forth herein. 

          (b)      Notwithstanding
the foregoing, if the managing underwriter or underwriters of any such proposed
public offering advise the Company that the total amount or kind of securities
which the Subscriber, the Company and any other persons intended to be included
in such proposed public offering is sufficiently large to adversely affect the
success of such proposed public offering, then the amount or kind of securities
to be offered for the various parties wishing to have shares of the Company’s
common stock registered shall be included in the following order: 

                         (i)     
If the Company proposed to register treasury shares or authorized but unissued
shares of its common stock (collectively, “Primary Securities”): 

                                   (A)     
first, the Primary Securities; 

                                   
(B)      second, the Shares and Warrant Shares
requested to be included in such registration, together with shares of its
common stock which do not constitute Shares, Warrant Shares or Primary
Securities (“Other Securities”) held by parties exercising similar
piggy-back registration rights (or if necessary, such Shares, Warrant Shares and
Other Securities pro rata among the holders thereof based upon the number of
such Shares, Warrant Shares and Other Securities requested to be registered by
each such holder). 

- 5 - 

                    (ii)     
If the Company proposed to register Other Securities: 

                                   
(A)      first, the Other Securities requested to
be included in such registration by holders exercising demand registration
rights; 

                                  
(B)      second, the Warrant Shares requested to
be included in such registration, together with Other Securities held by parties
exercising similar piggy-back registration rights (or if necessary, such Shares,
Warrant Shares and Other Securities pro rata among the holders thereof based
upon the number of such Shares, Warrant Shares and Other Securities requested to
be registered by each such holder). 

Anything to the contrary in this Agreement notwithstanding, the
Company may withdraw or postpone a registration statement referred to herein (a
“Registration Statement”) at any time before it becomes effective or
withdraw, postpone or terminate the offering after it becomes effective without
obligation to the Subscriber. 

          (c)     
In connection with its obligation under this Section 5, the Company will (i)
furnish to Subscriber without charge, at least one copy of any effective
Registration Statement and any post-effective amendments thereto, including
financial statements and schedules, and, if the Subscriber so requests in
writing, all documents incorporated therein by reference and all exhibits
(including those incorporated by reference) in the form filed with the SEC; and
(ii) deliver to the Subscriber and the underwriters, if any, without charge, as
many copies of the then effective prospectus included in the Registration
Statement, as the same may be amended or supplemented (including such prospectus
subject to completion) (the “Prospectus”), and any amendments or
supplements thereto as such persons may reasonably request. 

          (d)     
As a condition to the inclusion of its Shares, Warrant Shares, the Subscriber
shall furnish to the Company such information regarding the Subscriber and the
distribution proposed by the Subscriber as the Company may request in writing or
as shall be required in connection with any registration, qualification or
compliance referred to in this Agreement. 

          (e)      The
Subscriber agrees by acquisition of Shares and Warrant Shares that, upon receipt
of any notice from the Company of the happening of any event that, in the good
faith judgment of the Company’s Board of Directors, requires the suspension of
the Subscriber’s rights under this Section 5, Subscriber will forthwith
discontinue disposition of Shares and Warrant Shares pursuant to the then
current Prospectus until the Subscriber is advised in writing by the Company
that the use of the Prospectus may be resumed. If so directed by the Company, on
the happening of such event, the Subscriber will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in buyer’s
possession, of the Prospectus covering such Shares and Warrant Shares at the
time of receipt of such notice. 

          (f)      The
Subscriber hereby covenants with the Company (i) not to make any sale of Shares
and Warrant Shares without effectively causing the prospectus delivery
requirements under the Securities Act to be satisfied, and (ii) if such Shares
and Warrant Shares are to be sold by any method or in any transaction other than
on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq
Global Market, Nasdaq Capital Market or in the over-the-counter market, in
privately negotiated transactions, or in a combination of such methods, to
notify the Company at least 5 business days prior to the date on which the
Subscriber first offers to sell any such Warrant Shares. 

          (g)      The
Subscriber acknowledges and agrees that the Shares and Warrant Shares sold
pursuant to the Registration Statement described in this Agreement are not
transferable on the books of the Company unless the stock certificate submitted
to the transfer agent evidencing such Shares and Warrant Shares is accompanied
by a certificate reasonably satisfactory to the Company to the effect that (x)
the Shares and Warrant Shares have been sold in accordance with such
Registration Statement and (y) the requirement of delivering a current
Prospectus has been satisfied. 

          (h)      The
Subscriber shall not take any action with respect to any distribution deemed to
be made pursuant to such Registration Statement, which would constitute a
violation of Regulation M under the Securities Exchange Act of 1934, as amended,
or any other applicable rule, regulation or law. 

- 6 - 

          (i)      Upon
the expiration of the effectiveness of any Registration Statement, the
Subscriber shall discontinue sales of shares pursuant to such Registration
Statement upon receipt of notice from the Company of its intention to remove
from registration the shares covered by such Registration Statement which remain
unsold, and the Subscriber shall notify the Company of the number of shares
registered which remain unsold immediately upon receipt of such notice from the
Company. 

          (j)      In
the case of the registration of any underwritten primary offering initiated by
the Company (other than any registration by the Company on Form S-4 or Form S-8
(or any successor or substantially similar form), or of (i) an employee stock
option, stock purchase or compensation plan or of securities issued or issuable
pursuant to any such plan, or (ii) a dividend reinvestment plan) or any
underwritten secondary offering initiated at the request of a holder of
securities of the Company pursuant to registration rights granted by the
Company, the Subscriber agrees not to effect any public sale or distribution of
securities of the Company, except as part of such underwritten registration,
during the period beginning fifteen (15) days prior to the closing date of such
underwritten offering and during the period ending ninety (90) days after such
closing date (or such longer period as may be reasonably requested by the
Company or by the managing underwriter or underwriters). 

          (k)      Anything
to the contrary contained in this Agreement notwithstanding, when, in the
opinion of counsel for the Company, registration of the Shares and Warrant
Shares is not required by the Securities Act, in connection with a proposed sale
of such Shares and Warrant Shares, the Subscriber shall have no rights pursuant
to this Section 5. In furtherance and not in limitation of the foregoing, the
Subscriber shall have no rights pursuant to this Section 5 at such time as all
of the Subscriber’s Warrant Shares may be sold without limitation pursuant to
Rule 144. 

6.      USE
OF PROCEEDS 

          The
Company anticipates using the gross proceeds from the Offering as follows: (i)
approximately $100,000 for offering expenses and (ii) the remainder for general
corporate purposes including growth initiatives and capital expenditures. 

7.      ESCROW
RELEASE 

          The
Subscriber acknowledges that the Company may act on the Subscriber’s behalf,
solely for the sake of convenience, in connection with confirmation to the
Escrow Agent that the Closing has occurred and thereby direct the Escrow Agent
to disburse the Subscriber’s subscription funds held in escrow to the Company at
such time. In doing so, however, the Company makes no representation or warranty
to the Subscriber with respect to any due diligence investigations concerning
the Company, all of which shall be and remain the Subscriber’s own
responsibility. 

8.      CONDITIONS
TO ACCEPTANCE OF SUBSCRIPTION 

          The
Company’s right to accept the subscription of the Subscriber is conditioned upon
satisfaction of the following conditions precedent on or before the date the
Company accepts such subscription: 

          (a)      As
of the Closing, no legal action, suit or proceeding shall be pending that seeks
to restrain or prohibit the transactions contemplated by this Agreement. 

          (b)      The
representations and warranties of the Company contained in this Agreement shall
have been true and correct in all material respects on the date of this
Agreement and shall be true and correct as of the Closing as if made on the
Closing Date. 

          (c)      The
Company shall have provided the Subscriber with a substantially completed draft
of a Current Report on Form 8-K containing such information about Volcan as
would be required to be disclosed in a Registration Statement on Form 10 (the
“Jumbo 8-K”), and following receipt of such Jumbo 8-K, the Subscriber
shall have reconfirmed, in writing, its subscription hereunder. 

          (d)      Pubco
shall have consummated its acquisition of Volcan’s issued and outstanding
capital stock. 

- 7 - 

9.      PRICE
PROTECTION; OTHER PROVISIONS 

          (a)      Excepted
Issuances. The term “Excepted Issuances” means the issuance of (i)
shares of the Company’s common stock or options to employees, officers,
consultants or directors of the Company pursuant to any stock or option plan
duly adopted for such purpose by a majority of the non-employee members of the
Board of Directors or a majority of the members of a committee of non-employee
directors established for such purpose, or (ii) securities upon the exercise or
exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of the
Company’s common stock issued and outstanding on the date of this Agreement,
provided that such securities have not been amended since the date of this
Agreement to increase the number of such securities or to decrease the exercise,
exchange or conversion price of such securities, or (iii) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company, provided that any such issuance shall
only be to a person which is, itself or through its subsidiaries, an operating
company in a business synergistic with the business of the Company and in which
the Company receives benefits in addition to the investment of funds, but shall
not include a transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary business is
investing in securities. 

          (b)     
Anti-Dilution Price Protection. Other than in connection with the
Excepted Issuances, if, at any time during the twelve (12) months following the
Closing Date (the “Exclusion Period”), the Company issues or sells any
shares of any class of the Company’s common stock or any warrants or other
convertible security pursuant to which shares of any class of the Company’s
common stock may be acquired at a price less than $0.35 per share (as the same
may have been adjusted after the date of this Agreement and before the date of
such sale as a result of a capital adjustment, such as, but not necessarily
limited to, a stock split, or pursuant to the provisions of this Section 9(b)),
then the Company shall promptly issue additional shares of its common stock to
the Subscriber in an amount sufficient that the Share Purchase Price (as
previously adjusted, if relevant) paid hereunder, when divided by the total
number of shares of its common stock issued will result in an actual Share
Purchase Price equal to such lower price (this is intended to be a “full
ratchet” adjustment). Such adjustment shall be made successively whenever such
an issuance is made.

          (c)      Option
Plan Restrictions. The only officer, director, employee and/or consultant
stock option or stock incentive plan currently in effect or contemplated by the
Company shall provide for no more than 40 million shares of the Company’s common
stock. No other plan will be adopted nor may any options not included in such
plan be issued until expiration of the Exclusion Period. 

          (d)      Maximum
Exercise of Rights. In the event the exercise of the rights described in
Section 9(b) would result in the issuance of an amount of common stock of the
Company that would exceed the maximum amount that may be issued to the
Subscriber calculated in the manner described in Section 2.3 of the Warrants,
then the issuance of such additional shares of the Company’s common stock to the
Subscriber will be deferred in whole or in part until such time as such
Subscriber is able to beneficially own such common stock without exceeding the
maximum amount set forth in Section 2.3 of the Warrants. The determination of
when such common stock may be issued shall be made by each Subscriber as to only
such Subscriber. 

10.     
MISCELLANEOUS PROVISIONS 

          (a)      All
parties hereto have been represented by counsel, and no inference shall be drawn
in favor of or against any party by virtue of the fact that such party’s counsel
was or was not the principal draftsman of this Agreement. 

          (b)      Each
of the parties hereto shall be responsible to pay the costs and expenses of its
own legal counsel in connection with the preparation and review of this
Agreement and related documentation. 

          (c)     Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged
or terminated except by an instrument in writing signed by the party against
whom any waiver, modification, discharge or termination is sought. 

          (d)      The
representations, warranties and agreement of the Subscriber and the Company made
in this Agreement shall survive the execution and delivery of this Agreement and
the delivery of the Securities. 

- 8 - 

          (e)     
Any party may send any notice, request, demand, claim or other communication
hereunder to the Subscriber at the address set forth on the signature page of
this Agreement or to the Company at Level 34, 50 Bridge Street, Sydney 2000
(including personal delivery, expedited courier, messenger service, fax,
ordinary mail or electronic mail), but no such notice, request, demand, claim or
other communication will be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any party may change the address
to which notices, requests, demands, claims and other communications hereunder
are to be delivered by giving the other parties written notice in the manner
herein set forth. 

          (f)     
Except as otherwise provided herein, this Agreement shall be binding upon, and
inure to the benefit of, the parties to this Agreement and their heirs,
executors, administrators, successors, legal representatives and assigns. If the
Subscriber is more than one person or entity, the obligation of the Subscriber
shall be joint and several and the agreements, representations, warranties and
acknowledgments contained herein shall be deemed to be made by, and be binding
upon, each such person or entity and its heirs, executors, administrators,
successors, legal representatives and assigns. This Agreement sets forth the
entire agreement and understanding between the parties as to the subject matter
hereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them. 

          (g)      This
Agreement is not transferable or assignable by the Subscriber. 

          (h)      This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without giving effect to conflicts of law principles. 

          (i)      The
Company and the Subscriber hereby agree that any dispute that may arise between
them arising out of or in connection with this Agreement shall be adjudicated
before a court located in the City of New York, Borough of Manhattan, and they
hereby submit to the exclusive jurisdiction of the federal and state courts of
the State of New York located in the City of New York, Borough of Manhattan with
respect to any action or legal proceeding commenced by any party, and
irrevocably waive any objection they now or hereafter may have respecting the
venue of any such action or proceeding brought in such a court or respecting the
fact that such court is an inconvenient forum, relating to or arising out of
this Agreement or any acts or omissions relating to the sale of the securities
hereunder, and consent to the service of process in any such action or legal
proceeding by means of registered or certified mail, return receipt requested,
postage prepaid, in care of the address set forth herein or such other address
as either party shall furnish in writing to the other. 

          (j)      This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. 

[Signature Pages Follow] 

- 9 - 

ALL SUBSCRIBERS MUST COMPLETE THIS PAGE 

          IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the ____ day of
____________ 2008. 

	_____________________________	x $35,000 for each Unit 	= $_____________________. 
	Units subscribed for 	 	Aggregate Purchase Price 

Manner in which Title is to be held (Please Check One):

	1.    _____	Individual 	7.    _____	Trust/Estate/Pension or Profit sharing Plan
  
	  	  	  	Date Opened:______________ 
	2.    _____	Joint Tenants with Right of 	8.    _____	As a Custodian for 
	  	Survivorship 	  	 
    
	  	  	  	Under the Uniform Gift to Minors Act of the
  
	  	  	  	State of 
	  	  	  	
	3.    _____	Community Property 	9.    _____	Married with Separate Property 
	4.    _____	Tenants in Common 	10.  _____	Keogh 
	5.    _____	Corporation/Partnership/ Limited 	11.  _____	Tenants by the Entirety 
	  	Liability Company 	  	  
	6.    _____	IRA 	  	  

ALTERNATIVE DISTRIBUTION INFORMATION 

          To
direct distribution to a party other than the registered owner, complete the
information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN IRA INVESTMENT.

Name of Firm (Bank, Brokerage, Custodian): 

Account Name: 

Account Number: 

Representative Name: 

Representative Phone Number: 

Address: 

City, State, Zip: 

- 10 - 

IF MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

INDIVIDUAL SUBSCRIBERS MUST COMPLETE THIS PAGE 11. 
SUBSCRIBERS WHICH ARE
ENTITIES MUST COMPLETE PAGE 12. 

EXECUTION BY NATURAL PERSONS 

_____________________________________________________________________________
Exact
Name in Which Title is to be Held 

	 	 	 
	Name (Please Print) 	 	Name of Additional Purchaser 
	 	 	 
	 	 	 
	Residence: Number and Street 	 	Address of Additional Purchaser 
	 	 	 
	 	 	 
	City, State and Zip Code 	 	City, State and Zip Code 
	 	 	 
	 	 	 
	Social Security Number 	 	Social Security Number 
	 	 	 
	 	 	 
	Telephone Number 	 	Telephone Number 
	 	 	 
	 	 	 
	Fax Number (if available) 	 	Fax Number (if available) 
	 	 	 
	 	 	 
	E-Mail (if available) 	 	E-Mail (if available) 
	 	 	 
	 	 	 
	(Signature) 	 	(Signature of Additional Purchaser)
  

ACCEPTED this ___ day of _________ 2008, on behalf of the
Company. 

	 	By: 	 
	 	 	Name: 
	 	 	Title: 

- 11 - 

EXECUTION BY SUBSCRIBER WHICH IS AN ENTITY

(Corporation, Partnership, LLC, Trust, Etc.) 

_____________________________________________________________________________
Name
of Entity (Please Print) 

Date of Incorporation or Organization: 

State of Principal Office: 

Federal Taxpayer Identification Number: 

	 	 
	Office Address 	 
	 	 
	 	 
	City, State and Zip Code 	 
	 	 
	 	 
	Telephone Number 	 
	 	 
	 	 
	Fax Number (if available) 	 
	 	 
	 	 
	E-Mail (if available) 	 

	 	By: 	 
	 	 	Name: 
	 	 	Title: 
	[seal] 	 	

	Attest: 		 	 
	 	(If Entity is a Corporation) 	 	 
	 	  	 	 
	 		 	 
	 		 	Address 

ACCEPTED this ____ day of __________ 2008, on behalf of the
Company. 

	 	By:	 
	 	 	Name: 
	 	 	Title: 

- 12 - 

INVESTOR QUESTIONNAIRE 

Instructions: Check all boxes below which correctly describe
you. 

	 ̈ 	
      You are (i) a bank, as defined in Section 3(a)(2)
      of the Securities Act of 1933, as amended (the “Securities Act”),
      (ii) a savings and loan association or other institution, as
      defined in Section 3(a)(5)(A) of the Securities Act, whether acting in an
      individual or fiduciary capacity, (iii) a broker or dealer
      registered pursuant to Section 15 of the Securities Exchange Act of 1934,
      as amended (the “Exchange Act”), (iv) an insurance company
      as defined in Section 2(13) of the Securities Act, (v) an
      investment company registered under the Investment Company Act of 1940, as
      amended (the “Investment Company Act”), (vi) a business
      development company as defined in Section 2(a)(48) of the Investment
      Company Act, (vii) a Small Business Investment Company licensed by
      the U.S. Small Business Administration under Section 301 (c) or (d) of the
      Small Business Investment Act of 1958, as amended, (viii) a plan
      established and maintained by a state, its political subdivisions, or an
      agency or instrumentality of a state or its political subdivisions, for
      the benefit of its employees and you have total assets in excess of
      $5,000,000, or (ix) an employee benefit plan within the meaning of
      the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”) and (1) the decision that you shall subscribe for and
      purchase shares of common stock and warrants to purchase common stock (the
      “Units”), is made by a plan fiduciary, as defined in Section 3(21)
      of ERISA, which is either a bank, savings and loan association, insurance
      company, or registered investment adviser, or (2) you have total assets in
      excess of $5,000,000 and the decision that you shall subscribe for and
      purchase the Shares is made solely by persons or entities that are
      accredited investors, as defined in Rule 501 of Regulation D promulgated
      under the Securities Act (“Regulation D”) or (3) you are a
      self-directed plan and the decision that you shall subscribe for and
      purchase the Units is made solely by persons or entities that are
      accredited investors.

	 	 
	 ̈	
      You are a private business development company as defined
      in Section 202(a)(22) of the Investment Advisers Act of 1940, as
      amended.

	 	 
	 ̈	
      You are an organization described in Section 501(c)(3) of
      the Internal Revenue Code of 1986, as amended (the “Code”), a
      corporation, Massachusetts or similar business trust or a partnership, in
      each case not formed for the specific purpose of making an investment in
      the Units and its underlying securities in excess of $5,000,000.

	 	 
	 ̈	
      You are a director or executive officer of Volcan
      Australia Corporation PTY Ltd.

	 	 
	 ̈	
      You are a natural person whose individual net worth, or
      joint net worth with your spouse, exceeds $1,000,000 at the time of your
      subscription for and purchase of the Units.

	 	 
	 ̈	
      You are a natural person who had an individual income in
      excess of $200,000 in each of the two most recent years or joint income
      with your spouse in excess of $300,000 in each of the two most recent
      years, and who has a reasonable expectation of reaching the same income
      level in the current year.

	 	 
	 ̈	
      You are a trust, with total assets in excess of
      $5,000,000, not formed for the specific purpose of acquiring the Units and
      whose subscription for and purchase of the Units is directed by a
      sophisticated person as described in Rule 506(b)(2)(ii) of Regulation
      D.

	 	 
	 ̈	
      You are an entity in which all of the equity owners are
      persons or entities described in one of the preceding
  paragraphs.

- 13 - 

Check all boxes below which correctly describe you.

With respect to this investment in the Units, your: 

	Investment Objectives: 	Q Aggressive Growth 	Q Speculation 	  
	 	 	 	 
	Risk Tolerance: 	 ̈ Low Risk 	 ̈ Moderate Risk 	Q High Risk 

Are you associated with a FINRA Member Firm?
 ̈
Yes     ̈ No 

Your initials (purchaser and co-purchaser, if applicable)
  are required for each item below:

	_____   _____	
      I/We understand that this investment is not guaranteed.
      

	 	
       

	_____   _____	
      I/We are aware that this investment is not liquid.
  

	 	
       

	_____   _____	
      I/We are sophisticated in financial and business affairs
      and are able to evaluate the risks and merits of an investment in this
      offering. 

	 	
       

	_____   _____	
      I/We confirm that this investment is considered “high
      risk.” (This type of investment is considered high risk due to the
      inherent risks including lack of liquidity and lack of diversification.
      Success or failure of private placements such as this is dependent on the
      corporate issuer of these securities and is outside the control of the
      investors. While potential loss is limited to the amount invested, such
      loss is possible.) 

          The
Subscriber hereby represents and warrants that all of its answers to this
Investor Questionnaire are true as of the date of its execution of the
Subscription Agreement pursuant to which it purchased the Units. 

	 	 	 
	Name of Purchaser [please print] 	 	Name of Co-Purchaser [please print] 
	 	 	 
	 	 	 
	Signature of Purchaser (Entities please 	 	Signature of Co-Purchaser 
	provide signature of Purchaser’s duly 	 	  
	authorized signatory.) 	 	  
	 	 	 
	 	 	 
	Name of Signatory (Entities only) 	 	  
	 	 	 
	 	 	 
	Title of Signatory (Entities only) 	 	  

- 14 - 

VERIFICATION OF INVESTMENT ADVISOR/BROKER 

          I
state that I am familiar with the financial affairs and investment objectives of
the investor named above and reasonably believe that a purchase of the
securities is a suitable investment for this investor and that the investor,
either individually or together with his or her purchaser representative,
understands the terms of and is able to evaluate the merits of this offering. I
acknowledge: 

	 	(a) 	
      that I have reviewed the Subscription Agreement and forms
      of securities presented to me, and attachments (if any) thereto;

	 	 	 
	 	(b) 	
      that the Subscription Agreement and attachments thereto
      have been fully completed and executed by the appropriate party;
  and

	 	 	 
	 	(c) 	
      that the subscription will be deemed received by the
      Company upon acceptance of the Subscription
Agreement.

Deposit securities from this offering
directly to purchaser's account?  ̈ Yes  
  ̈ No 

If “Yes,” please indicate the account
number : _____________________________________

	 	 	 
	Broker/Dealer 	 	Account Executive 
	 	 	 
	 	 	 
	(Name of Broker/Dealer) 	 	(Signature) 
	 	 	 
	 	 	 
	(Street Address of Broker/Dealer Office) 	 	(Print Name) 
	 	 	 
	 	 	 
	(City of Broker/Dealer Office) (State) (Zip) 	 	(Representative I.D. Number) 
	 	 	 
	 	 	 
	(Telephone Number of Broker/Dealer Office) 	 	(Date) 
	 	 	 
	 	 	 
	(Fax Number of Broker/Dealer Office) 	 	(E-mail Address of Account Executive)
  

- 15 -Volcan Holdings, Inc.: Exhibit 10.2 - Prepared by TNT Filings Inc.

  
    THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF
      THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
      UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
      NOT REQUIRED. 

  

VOLCAN HOLDINGS, INC. 

No. 2008-_____

COMMON STOCK PURCHASE WARRANT 

                   
1.      Issuance. In consideration of good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by VOLCAN HOLDINGS, INC., a Delaware corporation (the
“Company”), ____________________________ or its registered assigns (the
“Holder”) is hereby granted the right to purchase at any time, on or after the
Issue Date (as defined below) until 5:00 P.M., New York City time, on the date
which is the five-year anniversary of the Issue Date (the “Expiration Date”),
__________________ (_______ ) fully paid and non-assessable shares (the “Warrant
Shares”) of the Company's common stock, $0.001 par value per share (the “Common
Stock”), at an initial exercise price per share (the “Exercise Price”) of $1.00
per share, subject to further adjustment as set forth herein. Reference is made
to the terms of that certain Subscription Agreement, dated as of the Issue Date
(the “Agreement”), to which the Company and certain named Subscribers are
parties. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Agreement. This Warrant was originally issued to the
Holder or the Holder's predecessor in interest on September ___, 2008 (the
“Issue Date”). 

                   
2.      Exercise of Warrants. 

                             
2.1      General. (a) This Warrant is
exercisable in whole or in part at any time and from time to time commencing on
the Issue Date. Such exercise shall be effectuated by submitting to the Company
(as set forth in Section 11 hereof) a completed and duly executed Notice of
Exercise (substantially in the form attached to this Warrant Certificate). The
date such Notice of Exercise is delivered to the Company shall be the “Exercise
Date,” provided that, if such exercise represents the full exercise of the
outstanding balance of the Warrant, the Holder of this Warrant shall tender this
Warrant Certificate to the Company within five (5) Trading Days (as defined
below) thereafter. The term “Trading Day” means any day during which the
Principal Market shall be open for business. The Notice of Exercise shall be
executed by the Holder of this Warrant and shall indicate (i) the number of
shares then being purchased pursuant to such exercise and (ii) if applicable (as
provided below), whether the exercise is a cashless exercise.

                             
(b)      The provisions of this Section 2.1(b) shall
only be applicable if, and only if, at any time which is two years after the
Issue Date, for any reason on the Exercise Date, there is no effective
registration statement naming the Holder as selling stockholder or no current
prospectus available pursuant to which the Holder would be entitled to sell the
Warrant Shares on such date. If such conditions exist, then this Warrant may
also be exercised at such time by means of a "cashless exercise". If the Notice
of Exercise form elects a “cashless” exercise, the Holder shall thereby be
entitled to receive a number of shares of Common Stock equal to (w) the excess
of the Current Market Value (as defined below) over the total cash exercise
price of the portion of the Warrant then being exercised, divided by (x) the
Market Price of the Common Stock. For the purposes of this Warrant, the terms
(x) “Current Market Value” shall mean an amount equal to the Market Price of the
Common Stock, multiplied by the number of shares of Common Stock specified in
the applicable Notice of Exercise, (y) “Market Price of the Common Stock” shall
mean the average Closing Price of the Common Stock for the three (3) Trading
Days ending on the Trading Day immediately prior to the Exercise Date, and (z)
“Closing Price” means the 4:02 P.M. closing bid price of the Common Stock on the
Principal Market on the relevant Trading Day(s), as reported by Bloomberg LP (or
if that service is not then reporting the relevant information regarding the
Common Stock, a comparable reporting service of national reputation selected by
the Holder and reasonably acceptable to the Company) for the relevant date.

                             
(c)      If the Notice of Exercise form elects a “cash”
exercise (or if the cashless exercise referred to in the immediately preceding
paragraph (b) is not available in accordance with its terms), the Exercise Price
per share of Common Stock for the shares then being exercised shall be payable,
at the election of the Holder, in cash or by certified or official bank check or
by wire transfer in accordance with instructions provided by the Company at the
request of the Holder. 

                             
(d)      Upon the appropriate payment, if any, of the
Exercise Price for the shares of Common Stock purchased, together with the
surrender of this Warrant Certificate (if required), the Holder shall be
entitled to receive a certificate or certificates for the shares of Common Stock
so purchased. The Company shall deliver such certificates representing the
Warrant Shares in accordance with the instructions of the Holder as provided in
the Notice of Exercise (the certificates delivered in such manner, the “Warrant
Share Certificates”) within five (5) Trading Days (such fifth Trading Day, a
“Delivery Date”) of (i) with respect to a “cashless exercise,” the Exercise Date
or, (ii) with respect to a “cash” exercise, the later of the Exercise Date or
the date the payment of the Exercise Price for the relevant Warrant Shares is
received by the Company. 

                             
(e)      The Company understands that a delay in the
delivery of the Warrant Share Certificates by the Delivery Date could result in
economic loss to the Holder. As compensation to the Holder for such loss, the
Company agrees to pay late payment fees (as liquidated damages and not as a
penalty) to the Holder for late delivery of Warrant Share Certificates in the
amount of $100 per Trading Day after the Delivery Date for each $10,000 of
Exercise Price of the Warrant Shares subject to the delivery default. The
Company shall pay any 

2 

payments incurred under this Section in immediately available
funds upon demand. Furthermore, in addition to any other remedies which may be
available to the Holder, in the event that the Company fails for any reason to
effect delivery of the Warrant Share Certificates by the Delivery Date, the
Holder may revoke all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to the exercise
of the relevant portion of this Warrant, except that the liquidated damages
described above shall be payable through the date notice of revocation or
rescission is given to the Company. 

                             
(f)      In addition to any other rights available to
the Holder, if the Company fails to deliver to the Warrant Share Certificates
within seven (7) Trading Days after the Delivery Date and the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock (“Bought
Shares”) to deliver in satisfaction of a sale by the Holder of the shares of
Common Stock which the Holder was entitled to receive from the Company on
exercise of this Warrant (a “Buy-In”), then the Company shall pay in cash to the
Holder (in addition to any remedies available to or elected by the Holder) the
amount by which (A) the Holder's total purchase price (including brokerage
commissions, if any) for the Bought Shares exceeds (B) the Exercise Price for
such Warrant Shares, together with interest thereon at a rate of 15% per annum,
accruing until such amount and any accrued interest thereon is paid in full
(which amount shall be paid as liquidated damages and not as a penalty). For
example, if the Holder purchases shares of Common Stock having a total purchase
price of $11,000 to cover a Buy-In with respect to $10,000 (based on the
Exercise Price) of Warrant Shares, the Company shall be required to pay the
Subscriber $1,000, plus interest. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In.

                             
(g)      The Holder shall be deemed to be the holder of
the shares issuable to it in accordance with the provisions of this Section 2.1
on the Exercise Date.

                             
2.2      Call Right. 

                             
(a)      Subject to the provisions of Section 2.3, if
at any time the Closing Price is equal to or above $3.00, as adjusted for any
stock splits, stock combinations, stock dividends and other similar events (the
“Threshold Price”), for any thirty (30) consecutive Trading Day period,
then the Company shall have the right, but not the obligation (the “Call
Right”), exercisable at any time within five (5) Trading Days after the last
of such thirty (30) consecutive Trading Day period, on twenty (20) Trading Days'
prior written notice to the Holder, to accelerate the Expiration Date on all,
but not less than all, of the unexercised portion of this Warrant to 5:30 P.M.
(New York City time) on the Trading Day which is the twentieth Trading Day after
the Holder receives the Call Notice (the “Cancellation Date”). 

                             
(b)      To exercise the Call Right, the Company shall
deliver to the Holder an irrevocable written notice thereof (a “Call
Notice”). Notwithstanding the Call Notice, the Holder may continue to
exercise this Warrant in accordance with its terms at any time through and
including the Cancellation Date and the other provisions of this Warrant shall

3

remain in full force in effect through and including the
Cancellation Date. Any portion of this Warrant that is still outstanding
immediately after the Cancellation Date shall be cancelled.

                             
2.3      Limitation on Exercise. The Company
shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2.1, Section
2.2 or otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, such Holder
(together with such Holder's Affiliates, and any other person or entity acting
as a group together with such Holder or any of such Holder's Affiliates), as set
forth on the applicable Notice of Exercise, would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below); provided, however, that
this provision shall not apply (i) as specifically provided in this Warrant as
an exception to this provision or (ii) while there is outstanding a tender offer
for any or all of the shares of the Company's Common Stock. For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by
such Holder and its Affiliates shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to that such
determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining, non-exercised
portion of this Warrant beneficially owned by such Holder or any of its
Affiliates and (B) exercise or conversion of the unexercised or non-converted
portion of any other securities of the Company (including, without limitation,
any other Warrants) subject to a limitation on conversion or exercise analogous
to the limitation contained herein beneficially owned by such Holder or any of
its affiliates. Except as set forth in the preceding sentence, for purposes of
this Section 2.3, beneficial ownership shall be calculated in accordance with
Section 13(d) of the 1934 Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not
representing to such Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and such Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 2.3 applies, the determination of whether
this Warrant is exercisable (in relation to other securities owned by such
Holder together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder's determination of whether
this Warrant is exercisable (in relation to other securities owned by such
Holder together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to such aggregate percentage limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
1934 Act and the rules and regulations promulgated thereunder. For purposes of
this Section 2.3, in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) the Company's most recent Form 10-QSB or Form 10-KSB, as the
case may be, (y) a more recent public announcement by the Company or, if more
recent, (z) any other notice by the Company or the Company's transfer agent
setting forth the number of shares of Common Stock outstanding. Upon the written
or oral request of the Holder, the Company shall within two (2) Trading Days
confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of

4

securities of the Company, including this Warrant, by such
Holder or its Affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall
be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity with the terms
of this Section 2.3 to correct this paragraph (or any portion hereof) which may
be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of this Warrant. 

                             
2.4      Trustee for Warrant Holders. In the
event that a qualified bank or trust company shall have been appointed as
trustee for the Holder of the Warrants, such bank or trust company shall have
all the powers and duties of a warrant agent (as hereinafter described) and
shall accept, in its own name for the account of the Company or such successor
person as may be entitled thereto, all amounts otherwise payable to the Company
or such successor, as the case may be, on exercise of this Warrant pursuant to
Section 2.1. 

                   
3.      Reservation of Shares. The Company
hereby agrees that, at all times during the term of this Warrant, there shall be
reserved for issuance upon exercise of this Warrant, one hundred percent (100%)
of the number of shares of its Common Stock as shall be required for issuance of
the Warrant Shares for the then unexercised portion of this Warrant. For the
purposes of such calculations, the Company should assume that the outstanding
portion of this Warrant was exercisable in full at any time, without regard to
any restrictions which might limit the Holder's right to exercise all or any
portion of this Warrant held by the Holder. 

                   
4.      Mutilation or Loss of Warrant. Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and (in the case of loss, theft or
destruction) receipt of reasonably satisfactory indemnification, and (in the
case of mutilation) upon surrender and cancellation of this Warrant, the Company
will execute and deliver a new Warrant of like tenor and date and any such lost,
stolen, destroyed or mutilated Warrant shall thereupon become void. 

                   
5.      Rights of the Holder. The Holder shall
not, by virtue hereof, be entitled to any rights of a stockholder in the
Company, either at law or equity, and the rights of the Holder are limited to
those expressed in this Warrant and are not enforceable against the Company
except to the extent set forth herein. 

5 

                   
6.      Protection Against Dilution and Other
Adjustments.

                             
6.1      Adjustment Upon Issuance of Common
Stock.

                             
(a)      The term “Dilutive Issuance” means a
transaction (other than an Excepted Issuance) in which the Company issues and
sells either (i) any shares of Common Stock or securities convertible into
Common Stock (other than with respect to warrants, rights or options to purchase
shares of Common Stock of the Company) for a consideration per share of Common
Stock (the “New Issuance Price”) which is less than the Share Purchase Price in
effect immediately before such issuance (as the same may have been adjusted
after the Issue Date and prior to such issuance to reflect capital adjustments,
such as but not necessarily limited to, stock splits, or pursuant to any other
provision of the Agreement; the “Current Share Purchase Price”) and/or (ii) any
warrants, rights or other options (howsoever denominated) to purchase shares of
Common Stock of the Company which has an exercise price per share (the “New
Exercise Price”) which is less than the Share Purchase Price in effect
immediately before such issuance.

                             
(b)      If and whenever on or after the date hereof
and through the first anniversary of the Issue Date, the Company effects a
Dilutive Issuance, then immediately upon the consummation of such Dilutive
Issuance, the Exercise Price shall be reduced to an amount (the “Adjusted
Exercise Price”) equal to the product of (i) the New Issuance Price or the New
Exercise Price, as the case may be, and (ii) a fraction, the numerator of which
is the Exercise Price, and the denominator of which is the Current Share
Purchase Price.

                             
(c)      Upon each such adjustment of the Exercise
Price hereunder, the number of Warrant Shares shall be adjusted to the number of
shares of Common Stock determined by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares acquirable
upon exercise of this Warrant immediately prior to such adjustment and dividing
the product thereof by the Adjusted Exercise Price. 

                             
6.2      Recapitalization, Reclassification and
Succession. If any recapitalization of the Company or reclassification of
its Common Stock or any merger or consolidation of the Company into or with a
corporation or other business entity, or the sale or transfer of all or
substantially all of the Company's assets or of any successor corporation's
assets to any other corporation or business entity (any such corporation or
other business entity being included within the meaning of the term "successor
corporation") shall be effected, at any time while this Warrant remains
outstanding and unexpired, then, as a condition of such recapitalization,
reclassification, merger, consolidation, sale or transfer, lawful and adequate
provision shall be made whereby the Holder of this Warrant thereafter shall have
the right to receive upon the exercise hereof as provided in Section 2 and in
lieu of the shares of Common Stock immediately theretofore issuable upon the
exercise of this Warrant, such shares of capital stock, securities or other
property as may be issued or payable with respect to or in exchange for a number
of outstanding shares of Common Stock equal to the number of shares of Common
Stock immediately theretofore issuable upon the exercise of this Warrant had
such 

6 

recapitalization, reclassification, merger, consolidation, sale
or transfer not taken place, and in each such case, the terms of this Warrant
shall be applicable to the shares of stock or other securities or property
receivable upon the exercise of this Warrant after such consummation. 

                             
6.3      Subdivision or Combination of Shares.
If the Company at any time while this Warrant remains outstanding and unexpired
shall subdivide or combine its Common Stock, the number of Warrant Shares
purchasable upon exercise of this Warrant and the Exercise Price shall be
proportionately adjusted. 

                             
6.4      Adjustment for Spin Off. If, for any
reason, prior to the exercise of this Warrant in full, the Company spins off or
otherwise divests itself of a part of its business or operations or disposes all
or of a part of its assets in a transaction (the “Spin Off”) in which the
Company does not receive compensation for such business, operations or assets,
but causes securities of another entity (the “Spin Off Securities”) to be issued
to security holders of the Company, then the Company shall cause (i) to be
reserved Spin Off Securities equal to the number thereof which would have been
issued to the Holder had all of the Holder's unexercised Warrants outstanding on
the record date (the “Record Date”) for determining the amount and number of
Spin Off Securities to be issued to security holders of the Company (the
“Outstanding Warrants”) been exercised as of the close of business on the
Trading Day immediately before the Record Date (the “Reserved Spin Off Shares”),
and (ii) to be issued to the Holder on the exercise of all or any of the
Outstanding Warrants, such amount of the Reserved Spin Off Shares equal to (x)
the Reserved Spin Off Shares, multiplied by (y) a fraction, of which (I) the
numerator is the amount of the Outstanding Warrants then being exercised, and
(II) the denominator is the amount of the Outstanding Warrants. 

                             
6.5      Stock Dividends and Distributions. If
the Company at any time while this Warrant is outstanding and unexpired shall
issue or pay the holders of its Common Stock, or take a record of the holders of
its Common Stock for the purpose of entitling them to receive, a dividend
payable in, or other distribution of, Common Stock, then (i) the Exercise Price
shall be adjusted in accordance with Section 6.7 and (ii) the number of Warrant
Shares purchasable upon exercise of this Warrant shall be adjusted to the number
of shares of Common Stock that the Holder would have owned immediately following
such action had this Warrant been exercised immediately prior thereto. 

                             
6.6      Stock and Rights Offering to
Shareholders. If the Company shall at any time after the date of issuance of
this Warrant distribute to all holders of its Common Stock any shares of capital
stock of the Company (other than Common Stock) or evidences of its indebtedness
or assets (excluding cash dividends or distributions paid from retained earnings
or current year's or prior year's earnings of the Company) or rights or warrants
to subscribe for or purchase any of its securities (excluding those referred to
in the immediately preceding paragraph) (any of the foregoing being hereinafter
in this paragraph called the "Securities"), then in each such case, the Company
shall reserve shares or other units of such securities for distribution to the
Holder upon exercise of this Warrant so that, in addition to the shares of the
Common Stock to which such Holder is entitled, such Holder will receive upon
such exercise the 

7 

amount and kind of such Securities which such Holder would have
received if the Holder had, immediately prior to the record date for the
distribution of the Securities, exercised this Warrant. 

                             
6.7      Warrant Price Adjustment. Except as
otherwise provided herein, whenever the number of shares of Warrant Stock
purchasable upon exercise of this Warrant is adjusted, as herein provided, the
Exercise Price payable upon the exercise of this Warrant shall be adjusted to
that price determined by multiplying the Exercise Price immediately prior to
such adjustment by a fraction (i) the numerator of which shall be the number of
Warrant Shares purchasable upon exercise of this Warrant immediately prior to
such adjustment, and (ii) the denominator of which shall be the number of
Warrant Shares purchasable upon exercise of this Warrant immediately thereafter.

                   
7.      Certificate as to Adjustments. In each
case of any adjustment or readjustment in the shares of Common Stock issuable on
the exercise of this Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock outstanding or deemed to be
outstanding, and (c) the Exercise Price and the number of shares of Common Stock
to be received upon exercise of this Warrant, in effect immediately prior to
such adjustment or readjustment and as adjusted or readjusted as provided in
this Warrant. The Company will forthwith mail a copy of each such certificate to
the Holder of the Warrant and any Warrant Agent of the Company (appointed
pursuant to Section 9 hereof). 

                   
8.      Transfer to Comply with the Securities Act;
Registration Rights. 

                             
8.1       Transfer. This Warrant has not
been registered under the 1933 Act and has been issued to the Holder for
investment and not with a view to the distribution of either the Warrant or the
Warrant Shares. Neither this Warrant nor any of the Warrant Shares or any other
security issued or issuable upon exercise of this Warrant may be sold,
transferred, pledged or hypothecated in the absence of an effective registration
statement under the Act relating to such security or an opinion of counsel
satisfactory to the Company that registration is not required under the Act.
Each certificate for the Warrant, the Warrant Shares and any other security
issued or issuable upon exercise of this Warrant shall contain a legend on the
face thereof, in form and substance satisfactory to counsel for the Company,
setting forth the restrictions on transfer contained in this Section. Any such
transfer shall be accompanied by a transferor assignment substantially in the
form of Exhibit B, executed by the transferor and the transferee and submitted
to the Company. 

                             
8.2      Registration Rights. Reference is made
to the provisions of Section 5 of the Agreement (the “Registration Provisions”).
The Company agrees to include Warrant Shares of the Holder in the Registration
Statement (as defined in the Registration 

8 

Provisions), which shall be filed and maintained effective as
and to the extent provided in the Registration Provisions, all at no cost or
expense to the Holder (other than any costs or commissions which would be borne
by the Holder under the terms of the Registration Provisions were the Warrant
Shares deemed to be Registrable Securities under those provisions). 

                   
9.      Warrant Agent. The Company may, by
written notice to the Holder of the Warrant, appoint an agent (a “Warrant
Agent”) for the purpose of issuing Common Stock on the exercise of this Warrant
pursuant hereto, exchanging this Warrant pursuant hereto, and replacing this
Warrant pursuant hereto, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such Warrant Agent. 

                   
10.      Transfer on the Company's Books. Until
this Warrant is transferred on the books of the Company, the Company may treat
the registered holder hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary. 

                   
11.      Notices. Any notice required or
permitted hereunder shall be given in the manner provided in the subsection
headed “NOTICES” in the Agreement, the terms of which are incorporated herein by
reference. 

                   
12.      Supplements and Amendments; Whole
Agreement. This Warrant may be amended or supplemented only by an instrument
in writing signed by the parties hereto. This Warrant contains the full
understanding of the parties hereto with respect to the subject matter hereof
and thereof and there are no representations, warranties, agreements or
understandings other than expressly contained herein and therein. 

                   
13.      Governing Law. This Warrant shall be deemed
to be a contract made under the laws of the State of New York for contracts to
be wholly performed in such state and without giving effect to the principles
thereof regarding the conflict of laws. Each of the parties consents to the
jurisdiction of the federal courts whose districts encompass any part of the
County of New York or the state courts of the State of New York sitting in the
County of New York in connection with any dispute arising under this Warrant and
hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such
proceeding in such jurisdictions. To the extent determined by such court, the
Company shall reimburse the Holder for any reasonable legal fees and
disbursements incurred by the Holder in enforcement of or protection of any of
its rights under any of the Transaction Documents. 

                   
14.      Remedies. The Company stipulates that the
remedies at law of the Holder of this Warrant in the event of any default or
threatened default by the Company in the performance of or compliance with any
of the terms of this Warrant are not and will not be adequate and that, to the
fullest extent permitted by law, such terms may be specifically enforced by a
decree for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or otherwise. 

9 

                   
15.     Counterparts. This Warrant may be executed in
any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument. 

                   
16.     Descriptive Headings. Descriptive headings of
the several Sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof. 

          IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by
an officer thereunto duly authorized. 

Dated: _________________, 2008 

VOLCAN HOLDINGS, INC. 

By:
________________________________

___________________________________
(Print Name) 

___________________________________
(Title) 

Witness: 

 

_______________________ 

10 

Exhibit A 

NOTICE OF EXERCISE OF WARRANT 

	TO: 	VOLCAN HOLDINGS, INC.
  
	  	VIA TELECOPIER TO:
      (           ) -
  

          The
undersigned hereby irrevocably elects to exercise the right, represented by the
Common Stock Purchase Warrant No. 2008- ____, dated as of _______________ ,
20___, to purchase ___________ shares of the Common Stock, $0.001 par value
(“Common Stock”), of VOLCAN HOLDINGS, INC. and tenders herewith payment
in accordance with Section 2 of said Common Stock Purchase Warrant, as follows:

_______            CASH:
  $____________________________________________ = (Exercise Price x Exercise Shares)

                            Payment
  is being made by:

                                         _______              
  enclosed check 

                                         _______              
  wire transfer 

                                         _______              
  other 

_______            CASHLESS
  EXERCISE [if available pursuant to Section 2.1(b)]: 

                             Net
  number of Warrant Shares to be issued to Holder :                
  _________ * 

                             
  * based on:               
  Current Market Value - (Exercise Price x Exercise Shares)

                                                                                         Market
  Price of Common Stock

                               where:
  

                               
  Market Price of Common Stock [“MP”]                              =
         $ _______________

                               Current
  Market Value [MP x Exercise Shares]                     =
         $ _______________

          It is
the intention of the Holder to comply with the provisions of Section 2.3 of the
Warrant regarding certain limits on the Holder's right to exercise thereunder.
The Holder believes this exercise complies with the provisions of said Section
2.3. Nonetheless, to the extent that, pursuant to the exercise effected hereby,
the Holder would have more shares than permitted under said Section, this notice
should be amended and revised, ab initio, to refer to the exercise which would
result in the issuance of shares consistent with such provision. Any exercise
above such amount is hereby deemed void and revoked. 

          As
contemplated by the Warrant, this Notice of Exercise is being sent by facsimile
to the telecopier number and officer indicated above.

          If this
Notice of Exercise represents the full exercise of the outstanding balance of
the Warrant, the Holder either (1) has previously surrendered the Warrant to the
Company or (2) will 

11 

 
surrender (or cause to be surrendered) the Warrant to the
Company at the address indicated above by express courier within five (5)
Trading Days after delivery or facsimile transmission of this Notice of
Exercise. 

          The
certificates representing the Warrant Shares should be transmitted by the
Company to the Holder 

         
_______          via express
courier, or 

         
_______          by electronic
transfer 

after receipt of this Notice of Exercise (by facsimile
transmission or otherwise) to: 

_____________________________________

_____________________________________

_____________________________________

 

 

Dated: ______________________

____________________________
[Name of Holder] 

By: _________________________

12 

Exhibit B 

FORM OF TRANSFEROR ENDORSEMENT 
(To be signed only on
transfer of Warrant) 

For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading “Transferees” the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Volcan Holdings, Inc. to which the within Warrant
relates specified under the headings “Percentage Transferred” and “Number
Transferred,” respectively, opposite the name(s) of such person(s) and appoints
each such person Attorney to transfer its respective right on the books of
Volcan Holdings, Inc. with full power of substitution in the premises. 

	Transferees 	Percentage Transferred 	Number Transferred 

Dated: ______________, ___________

________________________________
[Transferor – Name must
conform to the name of Holder as specified on face of Warrant] 

By:
_____________________________
Name: ___________________________

Signed in the presence of: 

________________________
(Name) 

ACCEPTED AND AGREED: 

______________________________
[TRANSFEREE] 

By: __________________________
Name:  
_______________________

13

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