Document:

EXHIBIT 10.7

MANAGEMENT SERVICES AGREEMENT

This Agreement is made as of January 1, 2000 between

            GRANT BROTHERS SALES, LIMITED, a corporation
            existing under the laws of Canada ("Grant Brothers"),

                                       and

            GRANT AUTOMOTIVE GROUP INC., a corporation existing
            under the laws of Ontario ("Grant Auto"),

                                       and

           SPECTRE INDUSTRIES, INC., a corporation existing under the
           laws of Nevada ("Spectre").

RECITALS

A. As at January 1, 1999, Grant Brothers, under the Asset Purchase Agreement,
transferred its wholesale automotive business group, consisting of its
traditional automotive division and the heavy duty division to Grant Auto.

B. As at the date of this Agreement, under a share purchase agreement, Grant
Brothers sold to Spectre all of the issued and outstanding shares of Grant Auto.

C. Grant Auto wishes to have Grant Brothers provide certain services to Grant
Auto so that Grant Auto can continue to operate the Business and to maximize
Grant Auto's benefits from the operation of the Business.

For value received, the parties agree as follows.

SECTION 1 - INTERPRETATION

1.1 Definitions. In this Agreement the following terms have the meanings set out
below.

(a) Agreement means this management services agreement including any recitals
and schedules to this management services agreement, as amended, supplemented or
restated from time to time.

(b) Asset Purchase Agreement means the asset purchase agreement dated as of
January 1, 1999 between Grant Brothers and Grant Auto.

                                       1
<PAGE>

(c) Business means the business transferred to Grant Auto under the Asset
Purchase Agreement, as it has changed to the date of this Agreement and as it
changes from time to time after the date of this Agreement, but which, for
greater certainty, does not include the business of any other agency which is
subsequently acquired by Grant Auto, whether by acquisition of shares or assets.

(d) Contracts has the meaning given to that term in the Asset Purchase
Agreement.

(e) Joint Account is defined in section 2.4.

(f) Management Committee means the management committee established in
accordance with section 2.5(a).

(g) Monthly Base Expenses means the amount of Grant Brothers' monthly operating
expenses jointly established by the parties before the date hereof with respect
to the first fiscal year of the term of this Agreement and by the Management
Committee with respect to any subsequent fiscal year, before the beginning of
such fiscal year (and as may be adjusted by the Management Committee during any
fiscal year).

(h) Net Cash Flow Increase Payment means the amount which is equal to
US$500,000:

      (1)   plus the amount, if any, by which the total gross income
            attributable to the Business for 1999, as set out in the finalized
            Currency Conversion Schedule referred to in the share purchase
            agreement dated as of January 1, 2000 between Grant Brothers and
            Spectre, exceeds US$1,000,000; or

      (2)   minus the amount, if any, by which the total gross income
            attributable to the Business for 1999, as set out in the finalized
            Currency Conversion Schedule referred to in the share purchase
            agreement dated as of January 1, 2000 between Grant Brothers and
            Spectre, is less than US$1,000,000.

(i) Net Cash Flow of the Business means the net cash flow of the Business
determined for any particular period in accordance with generally accepted
accounting principles in effect in Canada from time to time, including the
accounting recommendations published in the Handbook of the Canadian Institute
of Chartered Accountants and on a consistent basis with the preceding period.

(j) Shared Contracts has the meaning given to that term in the Asset Purchase
Agreement.

1.2 Headings and References. The division of this Agreement into sections and
the insertion of headings are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement.

1.3 Extended Meanings. Words importing the singular include the plural and vice
versa and words importing gender include all genders. The term "including" means
"including without limitation".

                                       2
<PAGE>

1.4 Currency. All amounts to be paid under this Agreement are to be paid in US
dollars.

SECTION 2 - SERVICES AND FEES

2.1 Services. Subject to the terms of this Agreement, Grant Brothers shall
provide the following services to Grant Auto:

(a) Supply of Personnel. Grant Brothers shall make available to the Business
such personnel as are reasonably required to operate the Business substantially
in the manner that the Business was conducted before the date of this Agreement
and subject to any changes in the operation of the Business as are agreed on
from time to time by the Management Committee and with a view to meeting the
various sales targets in the various territories agreed by the Management
Committee from time to time. Grant Brothers may also introduce such changes as
they desire from time to time to the extent that Grant Brothers believes that
the changes will improve the operations of the Business as approved by the
Management Committee.

(b) Provision of Office Space. Grant Brothers shall provide the necessary office
space, office equipment and office supplies for its personnel to carry out the
activities referred to in section 2.1(a).

(c) Strategic Advice. Grant Brothers shall provide all reasonable assistance to
management of Spectre in respect of strategic planning for, the capital
structure of, new business development for, and cost base management in
connection with, the Business.

(d) New Opportunities. Grant Brothers shall consider new opportunities for the
Business that would complement the Business (including the identification of
potential acquisitions and the making of introductions to potential
acquisitions). Grant Brothers shall communicate the result of such
considerations in a timely manner to Grant Auto from time to time. To this end,
Grant Brothers shall cause its Chief Operating Officer and its Vice President,
Finance to devote at least 15% of their time to the foregoing duties. Grant Auto
shall reimburse Grant Brothers for all reasonably incurred costs directly
attributable to the identification of potential acquisitions and the making of
introductions to potential acquisitions, such as travel and other similar
out-of-pocket expenses.

(e) Monthly Reporting. Grant Brothers shall deliver to Grant Auto within 30 days
of the end of each calendar month a report in respect of the Business for such
month containing:

      (1)   a profit and loss statement for such month;

      (2)   a balance sheet as at the end of such month;

      (3)   a cash flow statement for such month, including a line analysis in
            respect of each manufacturer; and

      (4)   a detailed analysis indicating the reasons for all material
            deviations from the quarterly financial forecast applicable to such
            month.

(f) Quarterly Reporting. Grant Brothers shall deliver to Grant Auto within 30
days of the end of each calendar quarter a report in respect of the Business for
such quarter containing:

                                       3
<PAGE>

      (1)   a profit and loss statement for such quarter;

      (2)   a balance sheet as at the end of such quarter;

      (3)   a cash flow statement for such quarter, including a line analysis in
            respect of each manufacturer;

      (4)   a detailed analysis indicating the reasons for all material
            deviations from the quarterly financial forecast applicable to such
            quarter; and

      (5)   a financial forecast for the next three calendar quarters, including
            projected profit and loss and projected cash flow for each such
            quarter.

Representatives of Grant Brothers shall make themselves available at their
offices to meet with representatives of Spectre at a mutually agreeable time
during the 60 day period following the delivery to Grant Auto of the quarterly
report to discuss the contents of that report.

(g) Annual Reporting. Grant Brothers shall deliver to Grant Auto within three
months of the end of each year under this Agreement a report in respect of the
Business for such year containing:

      (1)   financial statements reviewed by the Grant Brothers' independent
            accountants, for such year (containing a profit and loss statement
            and a balance sheet for such year);

      (2)   a financial forecast and business plan for the next two years under
            this Agreement; and

      (3)   a detailed financial budget for the then current year under this
            Agreement.

Representatives of Grant Brothers shall make themselves available at their
offices to meet with representatives of Spectre at a mutually agreeable time
during the 60 day period following the delivery to Grant Auto of the annual
report to discuss the contents of that report. During the 180 day period
following the delivery of the annual report Grant Brothers shall provide to
Grant Auto access to the financial records which Grant Brothers maintains in
connection with the Business, including all materials used in the preparation of
the annual financial statements and all documents prepared by Grant Brothers'
independent accountants in respect of their review of such statements.

(h) Other Services. Grant Brothers shall provide to Grant Auto such other
services as the parties may agree from time to time.

2.2 Authorized Representative. To assist in fulfilling the obligations of Grant
Brothers set out in section 2.1(a), Grant Auto hereby appoints Grant Brothers as
its authorized representative to act in Grant Auto's name to carry on the
Business in its ordinary course, including with the power to sign any agreements
entered into in the ordinary course of business on behalf of Grant Auto. Copies
of any and all documents signed by GBS on behalf of GAG shall be delivered to
GAG at the earliest possible opportunity. Grant Auto shall ensure that its
by-laws or other corporate documents specifically authorize such signing of
documents by Grant Brothers. All new contracts respecting the Business shall be
entered into in the name of Grant Auto.

                                       4
<PAGE>

2.3 Reimbursements, Fees and Bonuses. Grant Auto shall pay Grant Brothers the
following amounts at the times set out below.

(a) Reimbursements. By the 15th day of each month under this Agreement, Grant
Auto shall pay to Grant Brothers an amount to reimburse Grant Brothers for all
of its costs of that month associated directly with its services provided under
this Agreement, including all amounts paid to or in respect of employees of
Grant Brothers, plus agreed overhead for such employees and all amounts
reimbursed by Grant Brothers to any of its employees in respect of services
provided under this Agreement on behalf of Grant Auto, including all amounts to
be reimbursed in accordance with section 2.1(d). Prior to any initial payment to
Grant Brothers pursuant to this sub- paragraph shall be due upon the approval by
Grant Auto of the schedule of monthly base expense reimbursement to be prepared
by Grant Brothers no later than February 15. Approval of said schedule shall be
made by Grant Auto as soon as practicable after receipt of same.

(b) Net Cash Flow Distribution. With respect to any fiscal year, the Net Cash
Flow of the Business shall be distributed between Grant Auto and Grant Brothers
as follows.

      (1)   The first US$50,000 of the Net Cash Flow of the Business shall be
            distributed to Grant Auto. Grant Brothers shall ensure that this
            amount will be paid to Grant Auto for the fiscal periods ended
            December 31, 2000 and December 31, 2001 (and in this respect Grant
            Brothers will cause to be paid US$25,000 to Grant Auto on each of
            June 30, 2000, December 31, 2000, June 30, 2001 and December 31,
            2001 as a pre-payment of such distribution and failure to cause such
            a distribution to be made shall require payment of penalty interest
            by Grant Brothers to Grant Auto in the amount of 1.5% per month on
            the outstanding payment).

      (2)   The second US$100,000 of the Net Cash Flow of the Business shall be
            distributed to Grant Brothers.

      (3)   Any Net Cash Flow of the Business in excess thereof shall be
            distributed 47.5% to Grant Auto and 52.5% to Grant Brothers. Grant
            Auto shall have the right at any time before January 1, 2005 (but
            not thereafter), upon payment to Grant Brothers of the Net Cash Flow
            Increase Payment, to revise this section 2.3(b)(3) so that the first
            sentence reads "Any Net Cash Flow of the Business in excess thereof
            shall be distributed 95% to Grant Auto and 5% to Grant Brothers" and
            to make the corresponding revision in section 2.3(c)(1). Any such
            change in allocation will become effective only in the calendar year
            immediately following the year in which the payment is made by Grant
            Auto to Grant Brothers.

                                       5
<PAGE>

(c) Distribution Mechanics.

      (1)   General. In respect of each fiscal year during the term hereof, as
            at June 30 (and payable within 60 days thereafter) and December 31
            (and payable within three business days of the determination of the
            Management Committee under section 2.3(c)(3)) Grant Auto shall be
            entitled to receive out of the Joint Account any excess funds
            remaining after all costs and expenses with respect to such six
            month period ending on June 30 or the 12 month period ending on
            December 31, as applicable, including amounts payable under section
            2.3(a), have been paid until Grant Auto shall have received
            US$50,000 (the "Grant Auto Base Compensation") in respect of such
            year. Thereafter, in respect of each fiscal year during the term
            hereof as at each June 30 (and payable within 60 days thereafter)
            and December 31 (and payable within three business days of the
            determination of the Management Committee under section 2.3(c)(3))
            Grant Brothers shall be entitled to receive out of the Joint Account
            any excess funds remaining after all costs and expenses with respect
            to such six month period ending on June 30 or the 12 month period
            ending on December 31, as applicable, including amounts payable
            under section 2.3(a), have been paid until Grant Brothers shall have
            received US$100,000 (the "Grant Brothers Base Compensation") in
            respect of such year. Thereafter, in respect of each fiscal year
            during the term hereof as at each June 30 (and payable within 60
            days thereafter) and December 31 (and payable within three business
            days of the determination of the Management Committee under section
            2.3(c)(3)) Grant Auto shall be entitled to receive out of the Joint
            Account 47.5% of any excess funds remaining after all costs and
            expenses with respect to such six month period ending on June 30 or
            the 12 month period ending on December 31, as applicable, including
            amounts payable under section 2.3(a) (the "Grant Auto Bonus") in
            respect of such year, and Grant Brothers shall be entitled to
            receive out of the Joint Account 52.5% of any excess funds remaining
            after all costs and expenses with respect to such six month period
            ending on June 30 or the 12 month period ending on December 31, as
            applicable, including amounts payable under section 2.3(a) (the
            "Grant Brothers Bonus") in respect of such year.

      (2)   Negative Cash Balance. If at any time in any fiscal year during the
            term hereof, there shall be a negative cash balance in the Joint
            Account, Grant Brothers will loan funds, on an interest-free basis,
            to Grant Auto to eliminate the negative cash balance for such period
            as the loan is required. Grant Auto will repay the loan to Grant
            Brothers as soon as reasonably practicable. In such event, prior to
            making any distribution pursuant to section 2.3(c)(1) during such
            fiscal year (except regarding the required distributions to Grant
            Auto for the fiscal periods ended December 31, 2000 and December 31,
            2001), the Grant Brothers loan must be repaid in full before any
            distribution is made under section 2.3(c). Grant Brothers will
            forgive that portion of any loan advanced to Grant Auto which it is
            not repaid within the one year period following the date on which
            any loan is advanced.

                                       6
<PAGE>

      (3)   Year End Reconciliation. Based on the annual financial statements,
            GBS shall direct Grant Auto's independent accountants to prepare a
            schedule (the Net Cash Flow Schedule") setting out Net Cash Flow of
            the Business for such year setting out the distribution thereof in
            accordance with this Agreement together with a report from the
            independent accountant stating that the Net Cash Flow Schedule has
            been prepared in accordance with this Agreement. Within 10 business
            days of the receipt of the financial statements for Grant Auto
            reviewed by the independent accountants for the previous fiscal year
            and the Net Cash Flow Schedule, the Management Committee shall
            determine the definitive Net Cash Flow distribution in accordance
            with section 2.3(c)(1). To the extent any party shall have received
            an amount in excess of the amount to which such party would be
            entitled pursuant to such determination, such party shall pay to the
            other an amount equal to such excess within 30 days of such
            determination.

(d) Stock Incentive. As an additional incentive to GBS to manage GAG on a long
term basis, Spectre shall issue an aggregate of 450,000 shares of fully paid and
non-assessable Common Stock of Spectre to GBS free from all encumbrances, except
pursuant to the Securities Act and the rules and regulations promulgated by the
Securities and Exchange Commission thereunder. As of the date of this Agreement,
the authorized capital stock of Spectre consists of 100 million shares of common
stock, of which 12,496,450 shares of common stock are outstanding as of the date
hereof.

      (1) Nature and Characteristics of Common Stock. GBS understands that the
Common Stock is or will be issued without registration under the Securities Act,
in reliance upon exemptions from registration under the Securities Act. GBS also
understands that such exemptions depend in part upon, and such shares will be
issued in reliance on, the representations and warranties made by the GBS in
this section 3.3. Accordingly, the GBS represents and warrants to Spectre, as of
the date of this Agreement as follows:

      (i)   GBS will acquire Spectre common stock for its own account for
            investment purposes only and not with a view to resale or other
            distribution thereof, in whole or in part in violation of the
            Securities Act and GBS will not assign, sell, hypothecate or
            otherwise transfer any of the common stock in the United States
            unless,

            (A)   a registration statement is in effect under the Securities Act
                  and all applicable state securities laws with respect to the
                  common stock, or

            (B)   a written opinion of counsel reasonably acceptable to Spectre
                  is obtained to the effect that no such registration is
                  required.

      (ii)  GBS acknowledges, agrees and is aware that,

            (A)   no federal, state or any foreign agency has passed upon the
                  accuracy, validity or completeness of any materials provided
                  to GBS relating to Spectre and the Common Stock or made any
                  finding or determinations to the fairness of an investment in
                  the Common Stock,

            (B)   the Common Stock has not been registered under the Securities
                  Act or under the securities laws of any other jurisdiction in
                  the United States,

                                       7
<PAGE>

            (C)   in the absence of registration under the Securities Act, an
                  offer or sale of any of the Common Stock by GBS in the United
                  States will require the availability of an exemption
                  thereunder,

            (D)   the following restrictive legend shall be placed on the
                  certificates representing the Common Stock,

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE FEDERAL SECURITIES LAWS OF THE UNITED
                  STATES OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
                  STATES. SUCH SECURITIES MAY NOT BE SOLD, PLEDGED,
                  HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE UNITED STATES AT
                  ANY TIME WHATSOEVER, EXCEPT UPON SUCH REGISTRATION OR UPON
                  DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY
                  TO THE BOARD OF DIRECTORS OF THE COMPANY THAT REGISTRATION IS
                  NOT REQUIRED FOR SUCH TRANSFER AND/OR SUBMISSION TO THE BOARD
                  OF DIRECTORS OF THE COMPANY OF SUCH EVIDENCE AS MAY BE
                  SATISFACTORY TO THE BOARD OF DIRECTORS OF THE COMPANY TO THE
                  EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE
                  SECURITIES ACT OF 1933, AS AMENDED, APPLICABLE STATE
                  SECURITIES LAWS IN THE UNITED STATES AND ANY RULES OR
                  REGULATIONS PROMULGATED THEREUNDER.

      (iii) Acknowledgments. GBS acknowledges that:

      (A)   GBS has been given the opportunity to ask questions of, and receive
            answers from, Spectre and its officers and employees concerning the
            terms and conditions of GBS's acquisition of the Common Stock and
            other matters pertaining to an investment in the Common Stock, has
            been given the opportunity to obtain such additional information
            necessary to evaluate the merits and risks of acquiring the Common
            Stock to the extent Spectre possesses such information, and has
            received all documents and information that GBS has requested
            relating to an investment in the Common Stock;

      (B)   GBS is familiar with the nature of and risks attendant to
            investments in the business of Spectre and securities in general and
            has carefully considered and has, to the extent GBS believes such
            discussion necessary, discussed with GBS's professional legal,
            financial and tax advisers the suitability of an investment in the

                                       8
<PAGE>

            Common Stock for GBS's particular financial and tax situation and
            has determined that the Common stock is a suitable investment for
            GBS;

      (C)   GBS has not relied upon any representations or other information
            (whether oral or written) from Spectre or its directors, officers or
            affiliates, or from any other persons, other than the
            representations and warranties made in this Agreement and publicly
            available information with respect to Spectre; and

      (D)   GBS has made, and is solely responsible for making, GBS's own
            independent evaluation of the economic and other risks involved in
            GBS's investment in the Common Stock and GBS's own independent
            decision to make such investment.

      (2) Exemption from Registration and Restrictions on Offer and Sale of Same
or Similar Securities. Assuming the representations and warranties of GBS set
out in section 3.3 are true and correct, the offer and sale of the Common Stock
made pursuant to this Agreement is exempt from the registration requirements of
the Securities Act and applicable state securities or "blue sky" laws. Neither
Spectre nor any person authorized to act on Spectre's behalf has, in connection
with the offering of the Common Stock, engaged in:

      (a)   any form of general solicitation or general advertising (as those
            terms are used within the meaning of Rule 501(c) under the
            Securities Act);

      (b)   any action involving a public offering within the meaning of section
            4(2) of the Securities Act; or

      (c)   any action that would require the registration under the Securities
            Act of the offering and sale of the Common Stock or that would
            violate applicable state securities or "blue sky" laws.

Neither Spectre nor any person acting on behalf of Spectre has made, directly or
indirectly, any offer or sale of Common Stock or of securities of the same or a
similar class as the Common Stock that, if as a result of the offer and sale of
the Common Stock contemplated hereby, could fail to be entitled to exemption
from the registration requirements of the Securities Act. As used herein, the
terms "offer" and "sale" have the meanings specified in section 2(3) of the
Securities Act.

      (3) Sale of Common Stock. Notwithstanding any other term in this
Agreement, GBS may assign, sell, hypothecate or otherwise transfer any of the
450,000 Common Stock in the United States at any time after the expiry of one
year following the date of this Agreement and this representation and warranty
shall survive the closing of the Purchase for a period of five years after the
date of this Agreement so long as such sales are made pursuant to an applicable
exemption from the registration requirements of the Securities Act.

                                       9
<PAGE>

      (4) Exemption from Registration and Restrictions on Offer and Sale of Same
or Similar Securities. Assuming the representations and warranties of GBS set
out in section 3.3 are true and correct, the offer and sale of the Common Stock
made pursuant to this Agreement is exempt from the registration requirements of
the Securities Act and applicable state securities or "blue sky" laws. Neither
Spectre nor any person authorized to act on Spectre's behalf has, in connection
with the offering of the Common Stock, engaged in:

      (a)   any form of general solicitation or general advertising (as those
            terms are used within the meaning of Rule 501(c) under the
            Securities Act);

      (b)   any action involving a public offering within the meaning of section
            4(2) of the Securities Act; or

      (c)   any action that would require the registration under the Securities
            Act of the offering and sale of the Common Stock or that would
            violate applicable state securities or "blue sky" laws.

Neither Spectre nor any person acting on behalf of Spectre has made, directly or
indirectly, any offer or sale of Common Stock or of securities of the same or a
similar class as the Common Stock that, if as a result of the offer and sale of
the Common Stock contemplated hereby, could fail to be entitled to exemption
from the registration requirements of the Securities Act. As used herein, the
terms "offer" and "sale" have the meanings specified in section 2(3) of the
Securities Act.

      (5)   In the event this agreement is terminated prior to December 31,
            2005, other than as a result of the bankruptcy of Spectre, and that
            option referenced in Paragraph 6.2 of the Share Purchase Agreement
            by and between GBS and Spectre of even date herewith, in favor of
            GBS is exercised by GBS, then in addition to the $500,000 referenced
            therein for the repurchase of the Business as defined therein, GBS
            shall pay to Spectre an additional amount equal to 450,000 shares of
            Spectre.

2.4 Joint Account. Grant Auto and Grant Brothers shall establish a joint bank
account (the "Joint Account") with a reputable financial institution in Toronto.
Any and all cash received from the accounts receivables of Grant Auto in respect
of the Business after January 1, 2000 shall be deposited in the Joint Account.
The Joint Account shall be administered by the Management Committee. Except as
otherwise set forth herein, any disposition of funds out of the Joint Account
shall require the signature of one Grant Auto representative and one Grant
Brothers representative on the Management Committee. During the term of this
Agreement, any and all amounts received by any party with respect to the
Business (other than any Net Cash Flow distribution pursuant to section
2.3(c)(1) or a repayment of a loan advanced under section 2.3(c)) shall be
deposited in the Joint Account and any and all expenses with respect to the
Business shall be paid out of funds available in the Joint Account. On or prior
to the 15th day of each month during the term of this Agreement (commencing on
or prior to January 15, 2000), an amount equal to the Monthly Base Expenses
shall be paid to Grant Brothers out of funds available in the Joint Account and,
in the event such amount is not so paid, each Grant Brothers representative on
the Management Committee shall be entitled to transfer from the Joint Account an
amount equal to any due and unpaid Monthly Base Expenses to Grant Brothers.

                                       10
<PAGE>

2.5 Management Committee.

(a) Purpose and Membership. A Management Committee consisting of up to two
representatives from Grant Auto (each, an "Grant Auto Representative") and up to
two representatives from Grant Brothers (each a "Grant Brothers Representative")
shall be established for the purpose of overseeing the operation of the Business
during the term of this Agreement. A party may change its representatives from
time to time by delivering a notice to this effect to the other applicable
party.

(b) Rights and Duties. The Management Committee shall:

      (1)   administer the Joint Account;

      (2)   approve the payment of any expenses to Grant Brothers in excess of
            the Monthly Base Expenses;

      (3)   determine or amend the annual budget, the amount of the overhead
            referred to in section 2.3(a) and Monthly Base Expenses; and

      (4)   perform such other functions as the parties may delegate to it from
            time to time.

In addition, the Management Committee shall be consulted prior to any material
decision by Grant Brothers affecting (or being likely to affect) the Business or
the expansion thereof contemplated hereby, including prior to the hiring or
firing of any member of senior management of the Grant Brothers division
administering the Business or of any other employees thereof other than in the
ordinary course of business. The Management Committee shall meet in person or by
telephone conference at such times and places as shall be necessary to perform
its function, but at least once a month.

SECTION 3 - TERM, RENEWAL AND TERMINATION

3.1 Term and Renewal. The term of this Agreement shall commence on the date
hereof and continue for five (5) years. At the expiration of such five-year
period, this Agreement shall automatically be renewed for successive one-year
periods unless it is terminated by any party giving the other parties at least
six months prior written notice effective on the last day of such five-year or
one-year period, as the case may be.

3.2 Termination. Notwithstanding section 3.1, Grant Brothers or Grant Auto, as
the case may be, may terminate this Agreement at any time on the occurrence of
any of the following events:

      (a)   the other party fails to pay any amount when due and fails to pay
            such amount within five days of receipt of a notice indicating the
            non-payment;

      (b)   the other party breaches any of its obligations under this Agreement
            and such breach is not rectified within 30 days of receipt of a
            notice indicating the breach;

      (c)   a proceeding in bankruptcy, receivership, insolvency,
            reorganization, liquidation or winding-up of the other party is
            instituted by or against such other party;

      (d)   the other party makes a general assignment for the benefit of its
            creditors; or

                                       11
<PAGE>

      (e)   the other party ceases to carry on business as a going concern for
            more than five business days.

The expiration or termination of this Agreement shall not relieve or release a
party from any of its obligations to pay any amount due and payable or to
perform any obligation which by its nature shall survive such expiration or
termination (including the obligations set out in sections 3.5, 4.3, 5 and 6). A
party which terminates this Agreement in accordance with this section 3.2 shall
not be liable to any other party for any loss or damage of any kind whatsoever,
arising directly or indirectly from the termination of this Agreement.

3.3 Early Termination by Grant Auto. Grant Auto may terminate this Agreement if
Grant Brothers does not, within the first 12 months of this Agreement, introduce
Grant Auto to at least two reasonable potential acquisitions, as required by
section 2.1(d).

3.4 Performance of Certain Contracts. Upon the termination of this Agreement, if
any Contracts (including any Shared Contracts) remain subject to the terms of
the section in the Asset Purchase Agreement entitled "Certain Contracts Not
Assigned But Held in Trust", Grant Auto shall, from the date of the termination
of this Agreement cause all of the obligations of Grant Brothers to be satisfied
under those Contracts (except that in respect of Shared Contracts, Grant Auto
shall only be obliged to fulfil such obligations to the extent that they relate
to the Business). Grant Brothers shall, from the date of the termination of this
Agreement cause all of the obligations of Grant Brothers to be satisfied under
the Shared Contracts, but only to the extent that such obligations arise under
Shared Contracts and relate to matters not related to the Business. Except as
provided by the foregoing, the section in the Asset Purchase Agreement entitled
"Certain Contracts Not Assigned But Held in Trust" shall continue to apply to
all Contracts to which that section relates. Grant Auto shall reimburse Grant
Brothers for all direct expenses incurred in carrying out any obligations under
that section of the Asset Purchase Agreement.

3.5 Transfer of Business. As soon as commercially reasonable after the date
hereof, but in any event before the expiration of the term of this Agreement,
Grant Brothers shall use all commercially reasonable efforts to assign and/or
otherwise transfer to Grant Auto any and all Contracts not heretofore assigned
to Grant Auto and to obtain separate agreements for those parts of the Shared
Contracts which have been transferred to Grant Auto pursuant to the terms of the
Asset Purchase Agreement. Grant Brothers shall report semi-annually to the
Management Committee as to the progress of its efforts hereunder. To the extent
the Management Committee determines, with respect to a particular Contract, not
to seek the assignment or transfer thereof to Grant Auto or to obtain separate
agreements, the parties shall enter into an appropriate contractual relationship
which provides Grant Auto otherwise with the benefits of such Contract.

SECTION 4 - FORCE MAJEURE, LIABILITY AND INDEMNITY

                                       12
<PAGE>

4.1 Force Majeure. No party shall be liable to another for any failure to
perform any obligation under this Agreement, to the extent that such failure is
beyond the reasonable control of such party (aside from lack of funds). A party
which is not able to so perform an obligation under this Agreement shall
promptly provide a notice in respect of such failure to the other parties and
take all commercially reasonable steps to mitigate the effects of such failure.
In such cases, the party so failing to perform shall not be responsible to the
other parties for any loss or damage of any kind whatsoever which may be
incurred by the other parties or any third parties as a result of any such
failure.

4.2 Liability. A party's liability to the other parties under this Agreement
shall be limited to any direct loss or damage to such other parties caused by
the first party's negligence or wilful misconduct. Notwithstanding the
foregoing, no term in this section 4.2 shall operate so as to limit the
liability of Grant Brothers in respect of any of its actions or failures to act,
to the extent that Grant Brothers would have been liable in respect of such
actions or failures to act had such taken place before the date of this
Agreement when Grant Brothers owned and operated the Business.

4.3 Indemnity. Subject to the limitation imposed by section 4.2, Grant Brothers
shall indemnify and save harmless Grant Auto on its behalf and as trustee for
its officers, directors, shareholders, employees and agents against all costs,
damages, claims and other liabilities (including legal fees and expenses)
arising out of any breach of an obligation of Grant Brothers under this
Agreement. Subject to the limitation imposed by section 4.2, Grant Auto shall
indemnify and save harmless Grant Brothers on its behalf and as trustee for its
officers, directors, shareholders, employees and agents against all costs,
damages, claims and other liabilities (including legal fees and expenses)
arising out of any breach of an obligation of Grant Auto under this Agreement.

SECTION 5 -- CONFIDENTIALITY, COMPETITION AND NEW AGENCIES

5.1 Confidential Information. Grant Brothers shall hold in confidence, and shall
not disclose to any third party or use any confidential information of Grant
Auto (other than in respect of the good faith performance of Grant Brothers'
duties under this Agreement) where such information was obtained by Grant
Brothers in the course of providing services to Grant Auto under this Agreement,
except as required by law (including any applicable securities laws or the rules
of any applicable securities commission) or legal process.

5.2 Non-Competition. Grant Brothers shall not directly or indirectly (through an
affiliate or otherwise) own, manage, operate, join, control or otherwise
participate in, whether as a partner, shareholder or otherwise, any enterprise
in the business of representing manufacturers in the sale of spare parts in the
automotive wholesale market (the "Competitive Activities"), in Canada during the
currency of this Agreement and (except where Grant Brothers terminates this
Agreement under section 3.2 other than by providing six months' notice or where
Grant Auto terminates this Agreement under section 3.2 by providing six months'
notice) during the one year period following the termination of this Agreement,
except that, notwithstanding the foregoing, such non-competition period shall
not terminate prior to the fifth anniversary of the date hereof. In addition,
Grant Brothers will not engage in e-commerce, to the extent that involves the
sale of auto parts, during the currency of this Agreement and (except where
Grant Brothers terminates

                                       13
<PAGE>

this Agreement under section 3.2 other than by providing six months' notice or
where Grant Auto terminates this Agreement under section 3.2 by providing six
months' notice) during the one year period following the termination of this
Agreement.

5.3 Non-Solicitation. Without the consent of Grant Brothers, Grant Auto shall
not solicit for employment or employ any employee of Grant Brothers during the
currency of this Agreement and (except where Grant Auto terminates this
Agreement under section 3.2 other than by providing six months' notice) during
the one year period following the termination of this Agreement, except that on
the termination of this Agreement Grant Auto may offer employment to all, but
not less than all, Grant Brothers employees, at least 80% of whose business time
in the prior 12 months is allocable to the provision of services to Grant Auto
and any additional acquired agencies. Where Grant Auto makes any such offer of
employment, such offer must contain terms of employment that are no less
favourable to each such employee who is so offered employment when compared to
the terms of employment existing immediately prior to the making of the offer.
Without the consent of Grant Auto, Grant Brothers shall not solicit for
employment or employ any employee of Grant Auto during the currency of this
Agreement and during the one year period following the termination of this
Agreement.

5.4 Conflict of Interest. In the event a business opportunity, including changes
in representative agreements, raises a conflict of interest between the Grant
Brothers and Grant Auto, the Management Committee, less the representatives of
Grant Brothers, shall determine, acting reasonably and in good faith, the
resolution which shall bind the parties, except that nothing in this section 5.4
will affect in any manner the Shared Contracts and the terms applicable thereto
under the Asset Purchase Agreement and this Agreement.

5.5 New Agencies. In the event that any additional agency is acquired by
Spectre, directly or indirectly, Grant Brothers shall have the right of first
refusal to match any management services agreement offered by a third party to
manage such additional agency. In the event that no third party management
service is offered in respect of the new agency, Grant Brothers shall provide
(or in the case of any agency that Grant Brothers did not introduce to Spectre,
Grant Brothers may provide) such services for 5% of the Net Cash Flow of that
agency. Further in the event that an opportunity is located by Grant Brothers to
acquire 50% or more of a new agency in a transaction whereby such new agency can
be acquired over time with the purchase price payable solely from future
revenues, in addition to the right of first refusal referenced herein, Grant
Brothers shall have the right to participate in 50% of the ownership interest
acquired, directly or indirectly, by Spectre on the same terms and conditions as
Spectre.

5.6 Spectre's Indemnity. Spectre shall indemnify and save harmless Grant
Brothers on its behalf and as trustee for its officers, directors, shareholders,
employees and agents against all costs, damages, claims and other liabilities
(including legal fees and expenses) arising out of any breach of an obligation
of Grant Auto set out in the Management Services Agreement. Notwithstanding the
foregoing, Spectre is not liable under this section 5.6 for any amount that
Grant Auto would not be liable for under this Agreement. Accordingly, section
4.2 operates to limit Spectre's liability under this section 5.6 in the same
manner that it operates to limit Grant Auto's liability.

                                       14
<PAGE>

SECTION 6 -- ARBITRATION

6.1 Scope. Any dispute or other controversy between the parties relating to this
Agreement (including any dispute as to whether an issue is arbitrable) shall be
referred to arbitration under the Arbitration Act, 1991 (Ontario), but subject
to the terms of this section 6.

6.2 Appointment of Arbitrators. A party desiring arbitration under this section
6 shall give a notice of arbitration to the other parties containing a concise
description of the matter submitted for arbitration. Within 10 business days
after a party gives a notice of arbitration, the parties shall jointly appoint a
single arbitrator (the "Arbitrator"), who shall be a retired judge of the
Ontario Court (General Division) or of any court of a province of Canada having
jurisdiction comparable to or higher than that of such court. If the parties
fail to appoint an Arbitrator within such time, an Arbitrator shall be
designated by a judge of the Ontario Court (General Division) upon application
by any party.

6.3 Powers of Arbitrator. The Arbitrator may determine all questions of law and
jurisdiction (including questions as to whether a dispute is arbitrable) and all
matters of procedure relating to the arbitration. The Arbitrator shall have the
right to grant legal and equitable relief (including injunctive relief) and to
award costs (including legal fees and the costs of the arbitration) and
interest.

6.4 Arbitration Procedure. The arbitration shall take place in the Municipality
of Metropolitan Toronto at such place therein and time as the Arbitrator may
fix. No later than 20 business days after hearing the representations and
evidence of the parties, the Arbitrator shall make his or her determination in
writing and deliver one copy to each of the parties. The decision of the
Arbitrator shall be final and binding upon the parties in respect of all matters
relating to the arbitration, the conduct of the parties during the proceedings,
and the final determination of the issues in the arbitration.

6.5 Awards and Appeal. There shall be no appeal from the determination of the
Arbitrator to any court under the Arbitration Act, 1991 (Ontario). Judgment upon
any award rendered by the Arbitrator may be entered in any court having
jurisdiction thereof.

6.6 Costs of Arbitration. The costs of any arbitration under this section 6
shall be borne by the parties in the manner specified by the Arbitrator in his
or her determination.

6.7 Rules. Insofar as they do not conflict with this section 6, the Rules of
Procedure For Commercial Arbitration of the Arbitration and Mediation Institute
of Canada Inc. in effect at the date of commencement of any arbitration held
under this section 6 shall be applicable to the arbitration, and the Arbitrator
shall have jurisdiction to take such action and make such orders as are
contemplated in such rules.

6.8 Condition Precedent. Submission to arbitration under this section 6 shall be
a condition precedent to bringing any action with respect to this Agreement.

SECTION 7 -- GENERAL

7.1 Notice. Unless otherwise specified, each notice to a party must be given in
writing and delivered personally or by overnight courier or transmitted by fax
to the party as follows:

                                       15
<PAGE>

         If to Grant Brothers:      Grant Brothers Sales, Limited
                                    140 Wendell Avenue, Unit #1
                                    North York, Ontario M9N 3R2
                                    Attention: President
                                    Fax No: (416) 249-5864

         If to Grant Auto:          Grant Automotive Group Inc.
                                    140 Wendell Avenue, Unit #1
                                    North York, Ontario M9N 3R2
                                    Attention: President
                                    Fax No: (416) 249-5864

                                    with a copy to:

         If to Spectre:             Spectre Industries, Inc.
                                    c/o Ian Grant, Chief Executive Officer
                                    3992 Sunnycrest Drive
                                    North Vancouver, B.C.
                                    Canada V7R 3C9

                                    with a copy to:

or to any other address, fax number or individual that the party designates. Any
notice, if delivered personally or by courier, will be deemed to have been given
when actually received, and if transmitted by fax before 3:00 p.m. (Toronto
time) on a business day, will be deemed to have been given on that business day,
and if transmitted by fax after 3:00 p.m. (Toronto time) on a business day, will
be deemed to have been given on the next business day.

7.2 Time. Time shall be of the essence of this Agreement.

                                       16
<PAGE>

7.3 Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the Province of Ontario, and each of the parties
irrevocably attorns to the non-exclusive jurisdiction of the courts of Ontario.

7.4 No Set-Off. Payments made under this Agreement shall be made without set-off
or counterclaim.

7.5 Entire Agreement. This Agreement constitutes the entire agreement between
the parties with respect to the subject matter and supersedes all prior
agreements, representations, negotiations and understandings, whether written or
verbal. No term of this Agreement may be amended or waived except in writing.

7.6 Severability. Any term of this Agreement which is invalid or unenforceable
shall not affect any other term and shall be deemed to be severable.

7.7 Assignment and Benefit. No party may assign this Agreement without the prior
written consent of the other parties, which consent may not be unreasonably
withheld or delayed. This Agreement enures to the benefit of and binds the
parties and their respective successors and permitted assigns.

                                       17
<PAGE>

7.8 Counterparts and Fax Delivery. This Agreement and any amendment, supplement,
restatement or termination of any term of this Agreement may be executed and
delivered in any number of counterparts, each of which when executed and
delivered is an original but all of which taken together constitute one and the
same instrument. A party may deliver this Agreement and any amendment,
supplement, restatement or termination of any term of this Agreement by fax.

The parties have duly executed this Agreement.

                                        GRANT BROTHERS SALES, LIMITED

                                        By: /s/ John D. Grant
                                           -------------------------------------
                                           John D. Grant
                                           Chief Operating Officer

                                        By: /s/ Ken Grant
                                           -------------------------------------
                                           Kenneth Grant
                                           Vice President

                                        GRANT AUTOMOTIVE GROUP INC.

                                        By: /s/ John D. Grant
                                           -------------------------------------
                                           John D. Grant
                                           President

                                        SPECTRE INDUSTRIES, INC.

                                        By: /s/ Olof Hildebrand
                                           -------------------------------------
                                           Name: Olof Hildebrand
                                           Title: Chairman

                                       18Exhibit 10.8

                            INDEMNIFICATION AGREEMENT

            INDEMNIFICATION AGREEMENT, dated as of May 1, 2000, by and between
SPECTRE INDUSTRIES, INC., a Nevada corporation (the "Company"), and the director
and/or officer whose name appears on the signature page of this Agreement
("Indemnitee").

                                    RECITALS

      A. Highly competent persons are becoming more reluctant to serve as
directors or officers or in other capacities unless they are provided with
reasonable protection through insurance or indemnification against risks of
claims and actions against them arising out of their service to and activities
on behalf of the corporations.

            B. The Board of Directors of the Company (the "Board" or the "Board
of Directors") has determined that the Company should act to assure its
directors and officers that there will be increased certainty of such protection
in the future.

            C. It is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the
Company free from undue concern that they will not be so indemnified.

            D. Indemnitee is willing to serve, to continue to serve and to take
on additional service for or on behalf of the Company on the condition that
Indemnitee be so indemnified.

                                    AGREEMENT

            In consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

            1. Definitions. For purposes of this Agreement:

            (a) "Affiliate" shall mean any corporation, partnership, joint
venture, trust or other enterprise in respect of which the Indemnitee is or was
or will be serving as a director, officer, advisory director or Board Committee
member at the request of the Company, and including, but not limited to, any
employee benefit plan of the Company or any of the foregoing.

            (b) "Disinterested Director" shall mean a director of the Company
who is not or was not a party to the Proceeding in respect of which
indemnification is being sought by Indemnitee.

            (c) "Expenses" shall include all attorneys' fees and costs,
retainers, court costs, transcripts, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees and all other disbursements or expenses incurred
in connection with asserting or defending claims.

                                       1
<PAGE>

            (d) "Independent Counsel" shall mean a law firm or lawyer that
neither is presently nor in the past five years has been retained to represent:
(i) the Company or Indemnitee in any matter material to any such party or (ii)
any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall
not include any firm or person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing any of the Company or Indemnitee in an action to determine
Indemnitee's right to indemnification under this Agreement. All Expenses of the
Independent Counsel incurred in connection with acting pursuant to this
Agreement shall be borne by the Company.

            (e) "Losses" shall mean all losses, claims, liabilities, judgments,
fines, penalties and amounts paid in settlement in connection with any
Proceeding.

            (f) "Proceeding" includes any action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any other
proceeding whether civil, criminal, administrative or investigative; provided,
however, that the term "Proceeding" shall include any action instituted by an
Indemnitee (other than an action to enforce indemnification rights under this
Agreement) only if such action is authorized by the Board of Directors.

      2. Service by Indemnitee. Indemnitee agrees to begin or continue to serve
the Company or an Affiliate as a director and/or officer. Notwithstanding
anything contained herein, this Agreement shall not create a contract of
employment between the Company and Indemnitee, and the termination of
Indemnitee's relationship with the Company or an Affiliate by either party
hereto shall not be restricted by this Agreement.

      3. Indemnification. The Company agrees to indemnify Indemnitee for, and
hold Indemnitee harmless from and against, any Losses or Expenses at any time
incurred by or assessed against Indemnitee arising out of or in connection with
the service of Indemnitee as a director, advisory director, Board Committee
member, officer, employee or agent of the Company or of an Affiliate
(collectively referred to as an "Officer or Director of the Company or of an
Affiliate"), whether the basis of such proceeding is alleged action in an
official capacity or in any other capacity while serving as an Officer or
Director of the Company or of an Affiliate, to the fullest extent permitted by
the laws of the State of Nevada in effect on the date hereof or as such laws may
from time to time hereafter be amended to increase the scope of such permitted
indemnification. Without diminishing the scope of the indemnification provided
by this Section 3, the rights of indemnification of Indemnitee provided
hereunder shall include but shall not be limited to those rights set forth
hereinafter.

      4. Action or Proceeding Other Than an Action by or in the Right of the
Company. Indemnitee may be entitled to the indemnification rights provided
herein if Indemnitee is a person who was or is made a party or is threatened to
be made a party to any pending, completed or threatened Proceeding, other than
an action by or in the right of the Company, by reason of (a) the fact that
Indemnitee is or was an Officer or Director of the Company or of an Affiliate or
(b) anything done or not done by Indemnitee in any such capacity. Pursuant to
this Section, Indemnitee may be indemnified against Losses or Expenses incurred
by Indemnitee or on Indemnitee's behalf in connection with any Proceeding, if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to
be in or not opposed to the best interests of the Company and, with respect to
any criminal Proceeding, had no reasonable cause to believe his conduct was
unlawful.

                                       2
<PAGE>

      5. Actions by or in the Right of the Company. Indemnitee may be entitled
to the indemnification rights provided herein if Indemnitee is a person who was
or is made a party or is threatened to be made a party to any pending, completed
or threatened Proceeding brought by or in the right of the Company to procure a
judgment in its favor by reason of (a) the fact that Indemnitee is or was an
Officer or Director of the Company or of an Affiliate or (b) anything done or
not done by Indemnitee in any such capacity. Pursuant to this Section,
Indemnitee may be indemnified against Losses or Expenses actually and reasonably
incurred by Indemnitee or on Indemnitee's behalf in connection with any
Proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company. Notwithstanding the foregoing provisions of this Section, no such
indemnification shall be made in respect of any claim, issue or matter as to
which Nevada law expressly prohibits such indemnification by reason of an
adjudication of liability of Indemnitee to the Company; provided, however, that
in such event such indemnification shall nevertheless be made by the Company to
the extent that the court in which such action or suit was brought shall
determine equitable under the circumstances.

      6. Indemnification for Losses and Expenses of Party Who is Wholly or
Partly Successful. Notwithstanding any provision of this Agreement, to the
extent that Indemnitee has been wholly successful on the merits or otherwise
absolved in any Proceeding on any claim, issue or matter, Indemnitee shall be
indemnified against all Losses or Expenses actually and reasonably incurred by
Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is
not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company agrees to indemnify Indemnitee, to the maximum extent
permitted by law, against all Losses and Expenses incurred by Indemnitee in
connection with each successfully resolved claim, issue or matter. In any review
or Proceeding to determine the extent of indemnification, the Company shall bear
the burden of proving any lack of success and which amounts sought in indemnity
are allocable to claims, issues or matters which were not successfully resolved.
For purposes of this Section and without limitation, the termination of any such
claim, issue or matter by dismissal with or without prejudice shall be deemed to
be a successful resolution as to such claim, issue or matter.

      7. Payment for Expenses of a Witness. Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee is, by reason of the fact that
Indemnitee is or was an Officer or Director of the Company or of an Affiliate, a
witness in any Proceeding, the Company agrees to pay to Indemnitee all Expenses
actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in
connection therewith.

      8. Advancement of Expenses and Costs. All Expenses incurred by or on
behalf of Indemnitee (or reasonably expected by Indemnitee to be incurred by
Indemnitee within three months) in connection with any Proceeding shall be paid
promptly by the Company, and in any event in advance of the final disposition of
such Proceeding within sixty days after the receipt by the Company of a
statement or statements from Indemnitee requesting from time to time such
advance or advances, whether or not a determination to indemnify has been made
under Section 9. Such statement or statements shall evidence such Expenses
incurred (or reasonably expected to be incurred) by Indemnitee in connection
therewith and shall include or be accompanied by a written undertaking by or on
behalf of Indemnitee to repay such amount if it shall ultimately be determined
that Indemnitee is not entitled to be indemnified therefor pursuant to the terms
of this Agreement. The right to indemnification of advances as granted by this

                                       3
<PAGE>

Section 8 shall be enforceable by the director or officer in any court of
competent jurisdiction, if the Company denies such request, in whole or in part,
or if no disposition thereof is made within 60 days. Such person's costs and
expenses incurred in connection with successfully establishing his/her right to
indemnification, in whole or in part, in any such action shall also be
indemnified by the Company. It shall be a defense to any such action seeking an
adjudication or award in arbitration pursuant to this Agreement (other than an
action brought to enforce a claim for the advance of costs, charges and expenses
under this Section 8 where the required undertaking, if any, has been received
by the Company) that the claimant has not met the standard of conduct set forth
in the Nevada General Corporation Law ("NGCL"), as the same exists or hereafter
may be amended (but, in the case of any such amendment, only to the extent that
such amendment permits the Company to provide broader indemnification rights
than said law permitted the Company to provide prior to such amendment), but the
burden of proving such defense shall be on the Company. Neither the failure of
the Company (including its Board of Directors, its independent legal counsel and
its stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances
because he/she has met the applicable standard of conduct set forth in the NGCL,
as the same exists or hereafter may be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Company to provide
broader indemnification rights that said law permitted the Company to provide
prior to such amendment), nor the fact that there has been an actual
determination by the Company (including its Board of Directors, its independent
legal counsel and its stockholders) that the claimant has not met such
applicable standard of conduct, shall be a defense to the action or create a
presumption that the claimant has not met the applicable standard of conduct.

      9. Procedure for Determination of Entitlement to Indemnification. (a) When
seeking indemnification under this Agreement (which shall not include in any
case the right of Indemnitee to receive payments pursuant to Section 7 and
Section 8 hereof, which shall not be subject to this Section 9), Indemnitee
shall submit a written request for indemnification to the Company. Such request
shall include documentation or information which is reasonably necessary for the
Company to make a determination of Indemnitee's entitlement to indemnification
hereunder and which is reasonably available to Indemnitee. Determination of
Indemnitee's entitlement to indemnification shall be made promptly, but in no
event later than 60 days after receipt by the Company of Indemnitee's written
request for indemnification. The Secretary of the Company shall, promptly upon
receipt of Indemnitee's request for indemnification, advise the Board that
Indemnitee has made such request for indemnification.

            (b) The entitlement of Indemnitee to indemnification under this
Agreement in respect of any pending, contemplated or threatened Proceeding shall
be determined in the specific case by (a) the Board of Directors by a majority
vote of a quorum consisting of those directors who were not party to such
Proceeding, or (b) if such a quorum is not obtainable, or if a quorum of
disinterested directors so directs, by Independent Counsel in a written opinion,
or (c) by the stockholders.

            (c) In the event the determination of entitlement is to be made by
Independent Counsel, such Independent Counsel shall be selected by the Board and
approved by Indemnitee. Upon failure of the Board and the Board of Directors to
so select such Independent Counsel or upon failure of Indemnitee to so approve,
such Independent Counsel shall be selected by the President of the Bar of the
State of Nevada.

                                       4
<PAGE>

            (d) If the determination made pursuant to Section 9(b) is that
Indemnitee is not entitled to indemnification to the full extent of Indemnitee's
request, Indemnitee shall have the right to seek entitlement to indemnification
in accordance with the procedures set forth in Section 10 hereof.

            (e) If the person or persons empowered pursuant to Section 9(b)
hereof to make a determination with respect to entitlement to indemnification
shall have failed to make the requested determination within 60 days after
receipt by the Company of such request, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be absolutely entitled to such indemnification, absent (i)
misrepresentation by Indemnitee of a material fact in the request for
indemnification or (ii) a final judicial determination that all or any part of
such indemnification is expressly prohibited by law.

            (f) The termination of any Proceeding by judgment, order, settlement
or conviction, or upon a plea of nolo contendere or its equivalent, shall not,
of itself, adversely affect the rights of Indemnitee to indemnification
hereunder, except as may be specifically provided herein, or create a
presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company or create a presumption that (with respect to any criminal action or
Proceeding) Indemnitee had reasonable cause to believe that Indemnitee's conduct
was unlawful.

            (g) For purposes of any determination of good faith hereunder,
Indemnitee shall be deemed to have acted in good faith if in taking an action
Indemnitee relied on the records or books of account of the Company or an
Affiliate, including financial statements, or on information supplied to
Indemnitee by the officers of the Company or an Affiliate in the course of their
duties, or on the advice of legal counsel for the Company or an Affiliate or on
information or records given or reports made to the Company or an Affiliate by
an independent certified public accountant or by an appraiser or other expert
selected with reasonable care by the Company or an Affiliate. The Company shall
have the burden of establishing the absence of good faith. The provisions of
this Section 9(g) shall not be deemed to be exclusive or to limit in any way the
other circumstances in which the Indemnitee may be deemed to have met the
applicable standard of conduct set forth in this Agreement.

            (h) The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Company or an Affiliate shall not be
imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.

      10. Remedies in Cases of Determination Not to Indemnify or to Advance
Expenses. (a) In the event that (i) a determination is made that Indemnitee is
not entitled to indemnification hereunder, (ii) advances are not made pursuant
to Section 8 hereof or (iii) payment has not been timely made following a
determination of entitlement to indemnification pursuant to Section 9 hereof,
Indemnitee shall be entitled to seek an adjudication in an appropriate court of
the State of Nevada or any other court of competent jurisdiction as to
Indemnitee's entitlement to such indemnification or advance.

            (b) In the event a determination has been made in accordance with
the procedures set forth in Section 9 hereof, in whole or in part, that
Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration referred to in paragraph (a) of this Section 10 shall be de novo and
Indemnitee shall not be prejudiced by reason of any such prior

                                       5
<PAGE>

determination that Indemnitee is not entitled to indemnification, and the
Company shall bear the burdens of proof specified in paragraphs 6 and 9 hereof
in such proceeding.

            (c) If a determination is made or deemed to have been made pursuant
to the terms of Section 9 or 10 hereof that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration in the absence of (i) a misrepresentation of
a material fact by Indemnitee or (ii) a final judicial determination that all or
any part of such indemnification is expressly prohibited by law.

            (d) The Company and Indemnitee agree that they shall be precluded
from asserting that the procedures and presumptions of this Agreement are not
valid, binding and enforceable. The Company and Indemnitee further agree to
stipulate in any such court that the Company and Indemnitee are bound by all of
the provisions of this Agreement and are precluded from making any assertion to
the contrary.

            (e) To the extent deemed appropriate by the court, interest shall be
paid by the Company to Indemnitee at a reasonable interest rate for amounts
which the Company indemnifies or is obliged to indemnify the Indemnitee for the
period commencing with the date on which Indemnitee requested indemnification
(or reimbursement or advance of an Expense) and ending with the date on which
such payment is made to Indemnitee by the Company.

      11. Expenses Incurred by Indemnitee to Enforce this Agreement. All
expenses incurred by Indemnitee in connection with the preparation and
submission of Indemnitee's request for indemnification hereunder shall be borne
by the Company. In the event that Indemnitee is a party to or intervenes in any
proceeding in which the validity or enforceability of this Agreement is at issue
or seeks an adjudication to enforce Indemnitee's rights under, or to recover
damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in
whole in such action, shall be entitled to recover from the Company, and shall
be indemnified by the Company against, any Expenses incurred by Indemnitee. If
it is determined that Indemnitee is entitled to indemnification for part (but
not all) of the indemnification so requested, Expenses incurred in seeking
enforcement of such partial indemnification shall be reasonably prorated among
the claims, issues or matters for which the Indemnitee is entitled to
indemnification and for claims, issues or matters for which the Indemnitee is
not so entitled.

      12. Non-Exclusivity. The rights of indemnification and to receive advances
as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under or by reason of applicable
law, any certificate of incorporation or by-laws, any agreement, any vote of
stockholders or any resolution of directors or otherwise. To the extent
Indemnitee would be prejudiced thereby, no amendment, alteration, rescission or
replacement of this Agreement or any provision hereof shall be effective as to
Indemnitee with respect to any action taken or omitted by such Indemnitee in
Indemnitee's position with the Company or an Affiliate or any other entity which
Indemnitee is or was serving at the request of the Company prior to such
amendment, alteration, rescission or replacement.

      13. Duration of Agreement. This Agreement shall apply to any claim
asserted and any Losses and Expenses incurred in connection with any claim
asserted on or after the effective date of this Agreement and shall continue
until and terminate upon the later of: (a) 10 years after Indemnitee has ceased
to occupy any of the positions or have any of the relationships described in
Sections 3, 4 or 5 of this Agreement; or (b) one year after the final
termination of all pending or threatened Proceedings of the kind described
herein with respect to Indemnitee. This

                                       6
<PAGE>

Agreement shall be binding upon the Company and its successors and assigns and
shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns,
heirs, devisee, executors, administrators or other legal representatives.

      14. Severability. Should any part, term or condition hereof be declared
illegal or unenforceable or in conflict with any other law, the validity of the
remaining portions or provisions of this Agreement shall not be affected
thereby, and the illegal or unenforceable portions of the Agreement shall be and
hereby are redrafted to conform with applicable law, to provide the maximum
indemnification benefits allowable in accordance with the intention of the
parties hereto, while leaving the remaining portions of this Agreement intact.

      15. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same document.

      16. Headings. Section headings are for convenience only and do not control
or affect meaning or interpretation of any terms or provisions of this
Agreement.

      17. Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by each of the
parties hereto.

      18. No Duplicative Payment. The Company shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that Indemnitee has otherwise actually received such payment
(net of Expenses incurred in collecting such payment) under this Agreement, any
insurance policy, contract, agreement or otherwise.

      19. Notices. All notices, requests, demands and other communications
provided for by this Agreement shall be in writing (including telecopier or
similar writing) and shall be deemed to have been given at the time when mailed
in a registered or certified postpaid envelope in any general or branch office
of the United States Postal Service, or sent by Federal Express or other similar
overnight courier service, addressed to the address of the parties stated below
or to such changed address as such party may have fixed by notice or, if given
by telecopier, when such telecopy is transmitted and the appropriate answer back
is received.

            (a) If to Indemnitee, to the address appearing on the signature page
hereof.

            (b) If to the Company to:

                Spectre Industries, Inc.
                3992 Sunnycrest Drive
                North Vancouver, B.C. Canada V7R 3C9
                Attention: President
                Phone: (604) 984-0927
                Fax: (604) 990-0927

      20. GOVERNING LAW. THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEVADA WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

                                       7
<PAGE>

      21. Entire Agreement. Subject to the provisions of Section 12 hereof, this
Agreement constitutes the entire understanding between the parties and
supersedes all proposals, commitments, writings, negotiations and
understandings, oral and written, and all other communications between the
parties relating to the subject matter of this Agreement. This Agreement may not
be amended or otherwise modified except in writing duly executed by all of the
parties. A waiver by any party of any breach or violation of this Agreement
shall not be deemed or construed as a waiver of any subsequent breach or
violation thereof.

                           [Signature Page to follow]

                                       8
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first above written.

                                        SPECTRE INDUSTRIES, INC.

                                        By  /s/ Ian S. Grant
                                          --------------------------------------
                                          Name:  Ian S. Grant
                                          Title: President, Chief Executive and
                                                 Director

                                        INDEMNITEE:

                                        /s/ Ian S. Grant
                                        ----------------------------------------
                                        Name:  Ian S. Grant
                                        Title: President, Chief Executive
                                               Officer and Director

                                        Address:

                                            Ian S. Grant
                                            3992 Sunnycrest Drive
                                            North Vancouver, B.C. Canada V7R 3C9

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]