Document:

EXHIBIT 10.1
                                                                    ------------

                                  DOVEL & LUNER

                                                          201 Santa Monica Blvd.
                                                          Suite 600
                                                          Santa Monica,
                                                          California 90401
                                                    TEL   310.656.7066
                                                    FAX   310.656.7069

                                                                February 7, 2008

Network-1 Security Solutions, Inc.
Attn: Corey M. Horowitz
445 Park Avenue
Suite 1028
New York, NY 10022

Re: contract for Network-1 Security Solutions, Inc.

Dear Mr. Horowitz:

     We appreciate that Network-1 Security Solutions, Inc. ("you," "your," or
"Network-1") has retained Dovel & Luner, LLP ("we" or "our") to represent you in
pursuing claims for patent infringement based on your U.S. Patent No. 6,218,930
("the Katzenberg patent"). This letter sets forth the terms of our contract to
represent you.

     Quality

     We seek to offer the highest quality legal services and are committed to
achieving the best practical result at the lowest overall cost. We hope that you
will be fully satisfied with our work. The only way we can assure full
satisfaction is for you to bring to our attention any deficiencies, no matter
how trivial. Accordingly, your complaints, suggestions, and constructive
criticism are not only welcome, but also important to our working relationship.

     Scope of representation

     In this matter, we will represent you in pursuing claims for patent
infringement based on the Katzenberg patent against those companies listed in
Appendix A attached to this agreement, as well as any others we jointly agree
upon in writing which shall be added to Appendix A. In addition to representing
you in pursuing your patent infringement claims in a United States District
Court, our representation will also include (a) representing you in any
proceedings concerning the Katzenberg patent before the United States Patent
Office, and (b) any appellate work relating to your patent infringement claims
concerning the Katzenberg patent before the Federal Circuit. We are not aware of
any conflicts with respect to pursuing claims

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against those companies listed in Appendix A and have received all required
approvals, if any, to represent you as set forth in this agreement. Our
representation will also include defending declaratory relief claims based on
infringement, invalidity, or enforceability of the Katzenberg patent brought by
companies listed in Appendix A. Please understand that we cannot agree in
advance to represent you on any matters other than those set forth above. If
such matters do come up, we will be happy to discuss with you our potential
representation, and, if we both agree, execute a separate retainer agreement for
those matters.

     Hourly fees

     We do not work on an hourly fee basis, except in very unusual
circumstances. Our fee is based on a fixed retainer and on the results of our
efforts on your behalf, as discussed in the next two sections.

     Fixed retainer

     We will receive a fixed monthly retainer (payable on the 15th of the month)
based on the following schedule:

     $40,000 per month commencing with the first month that a complaint is
     served and up to the month preceding the occurrence of the Trigger Date.
     The Trigger Date is the earliest of (1) the date a motion for summary
     adjudication is filed by you or an infringer, or (2) 60 days before the
     date an expert report is due, or (3) 60 days before the first date set for
     the close of discovery;

     $50,000 per month commencing with the month in which the Trigger Date
     occurs.

     If the litigation is stayed or if there is a significant slow down in
activity (for example, if the matter is on appeal and is waiting a decision of
the court), then the monthly retainer will be reduced to zero or to some other
appropriate amount as the parties negotiate in good faith based on the
circumstances.

     If the cumulative amount paid as a fixed monthly retainer reaches
$1,500,000, we will not be entitled to receive any additional amounts as a fixed
monthly retainer. Under no circumstances shall the cumulative amount paid as a
monthly fixed retainer be greater than $1,500,000.

     Contingency fee

     In addition to the fixed retainer set forth above, we will receive a fee
based on the net amount you recover from any of the parties set forth on Exhibit
A (or subsequently jointly agreed upon) arising from our representation
described in this agreement ("Net Amount" means the full amount recovered less
costs and disbursements as discussed in the next section), whether as damages,
licensing fees, attorneys' fees, money, property, or services, and whether
through agreement, settlement, or judgment. In the event of an acquisition of
(i) Network-1 (in the event the Katzenberg patent represents substantially all
of the assets of Network-1), or (ii) the Katzenberg patent is acquired by any of
the parties listed on Exhibit A to this agreement (in

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either event, an "Extraordinary Transaction"), the "Net Amount" recovered from
such acquisition shall be deemed to be 50% of the proceeds received from the
Extraordinary Transaction. Our contingency fee will be calculated as follows:

     5% of the Net Amount recovered from an infringer before a complaint is
     served on the infringer;

     10% of the Net Amount recovered after a complaint is served on the
     infringer and before the earliest of either (x) a Rule 26(f) report is
     filed (or equivalent scheduling event occurs) in the litigation against the
     infringer, or (y) 150 days after the filing of a complaint against the
     infringer;

     15% of the Net Amount recovered after the earliest of (x) a Rule 26(f)
     report is filed (or equivalent scheduling event occurs) in the litigation
     against the infringer, or (y) 150 days after the filing of a complaint
     against the infringer, and before a deposition is taken in the litigation;

     17.5% of the Net Amount recovered after a deposition is taken in the
     litigation and before the Trigger Date. The Trigger Date is the earliest of
     (1) the date a motion for summary adjudication is filed by you or an
     infringer, or (2) 60 days before the date an expert report is due, or (3)
     60 days before the first date set for the close of discovery;

     20% of the Net Amount recovered after the Trigger Date but before the date
     that is 60 days before the trial date;

     21% of the Net Amount recovered after a date that is 60 days before the
     trial date but before the commencement of a trial; and

     24% of the Net Amount recovered after commencement of a trial.

     For purposes of determining which percentage applies, a recovery from a
settlement will be deemed to have taken place on the date the parties reach
agreement on the principal terms of a settlement, which is then later finalized
in a formal settlement document.

     If a judgment or settlement against any of the parties in Exhibit A results
in payments over a period of time, our contingency fee shall be paid out of
payments received as they are received and in the form received by Network-1. In
addition, if any portion of a judgment or settlement against any of the parties
in Exhibit A results in an in-kind (I.E., non-cash) payment to you, we agree to
accept such in-kind payment with respect to our contingency fee to the same
extent (in the same percentage) received by you.

     You should know that this contingency fee is not set by law, but rather is
negotiable. By signing this letter agreement below, you acknowledge that the
amount of this contingency was arrived at through mutual negotiation.

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     Costs and disbursements

     You will be responsible for paying out-of-pocket costs and disbursements
incurred in connection with litigation, such as: filing fees, photocopying
costs, long distance telephone calls, reasonable and necessary travel expenses,
messenger fees, expert fees, court reporter fees, jury fees, and other direct
costs. Because we cannot predict the twists and turns that protracted litigation
will take, it is impossible to estimate accurately the total costs that we will
incur on your behalf in this matter.

     We will not make any commitment to retain investigators, accountants, or
other experts without obtaining advance authorization from you, and, should you
agree to any such arrangements, you would directly pay these fees. Further, we
will not hire any third parties or incur any costs or disbursements, including
experts and additional counsel, in excess of $2,000 without your prior approval
and authorization.

     We will send you a statement for costs and disbursements that will provide
the status of your account on a monthly basis. Such statements will be due and
payable within 30 days of receipt.

     The costs and disbursements that you pay in connection with litigation will
be reimbursed to you out of the first amounts recovered on your behalf and prior
to the calculation of our contingency fee.

     Local counsel and other counsel; Staffing

     We have explained to you that we are likely to recommend filing suit in
Texas. If we do so, we will retain the assistance of local counsel on a
contingency fee basis or on an hourly basis. Similarly, we are likely to retain
the assistance of additional counsel on a contingency fee basis or on an hourly
basis to assist in routine litigation matters as required. Such contingency fees
or hourly fees will be paid by us and will not be counted as reimbursable costs.
We will disclose to you in writing any fee arrangements with local counsel or
with other counsel.

     We will keep you informed of all material developments in the litigation as
they occur and will involve Network-1 in all material substantive matters
(including settlement, licensing, and pricing) and material procedural matters
(such as any proposed modifications to dates on the scheduling order) as they
arise. Any summary judgment and claim construction motions or oppositions will
be drafted by either Sean Luner, Gregory Dovel, or a mutually agreed upon
alternative. Any summary judgment hearing and claim construction hearing will be
argued by Gregory Dovel and local counsel or a mutually agreed upon alternative.
Trial will be conducted by Gregory Dovel and local counsel or a mutually agreed
upon alternative.

     We will also provide the Network-1 with drafts of all (a) substantive court
filings, including pleadings and motions, (b) infringement contentions, (c)
propounded discovery, (d) responsive discovery, with adequate time for Network-1
to review and provide input.

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     Graphics consultants

     Our approach to litigation relies heavily on multi-media graphics
presentations prepared by Visual Victory, an affiliated graphics consulting
company. We estimate that charges for the services of Visual Victory, including
concept development, preparation of visual images, digitizing documents and
video depositions, and preparation of documents and graphics for display would
typically be about $200,000 were this matter to proceed through trial.
Nevertheless, we agree that payment for all services of Visual Victory will be
covered by our contingency fee discussed above. You will not be charged
additional hourly fees for such services. We will endeavor to work with the
graphics presentations already prepared by Network-1. Any additional expense
from unaffiliated third parties required to update or amend such presentations
will be borne by Network-1.

     Attorney's lien

     You hereby grant us a lien on all claims or causes of action that are the
subject of our representation under this agreement. Our lien will be for any
sums owing to us at the conclusion of our services, including the contingency
fee. The lien will attach to any recovery you may obtain, whether by agreement,
arbitration award, settlement, judgment, or otherwise.

     Special risks

     Please be advised that this matter carries special risks for you. Should
you lose the lawsuit, you should assume that a judgment will be entered against
you requiring you to pay the other side's costs (such as filing fees and
deposition reporter fees). Such costs could easily be tens of thousands of
dollars. Moreover, under certain circumstances you may be required to pay the
other side's attorney's fees, which may be hundreds of thousands of dollars.
Before signing this agreement and at every stage of this litigation you must
carefully assess this risk when determining whether to settle or continue
pursuing the matter.

     Candor

     Our ability to render services effectively and consistent with our ethical
responsibilities requires that you be open and forthcoming in discussing matters
with us. By telling us everything, including things that you think are harmful
to your case, you maximize our ability to get you the best result. The earlier
we know about a problem, the sooner we can prepare a solution for it.

     Termination of representation

     You have the right to terminate our representation at any time by giving us
written notice of your decision. We also have the right to cease representing
you (consistent with the applicable codes of professional ethics and application
to the court). It is your obligation to take all necessary steps to effectuate
such a termination, including the execution of any necessary documents to
complete our withdrawal or discharge. After receiving notice of termination from
you, we will immediately stop rendering services to you.

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     In the event there is a termination of this Agreement by either of us, we
shall be entitled to all fixed monthly retainers provided by this agreement
through the date of termination plus disbursements payable or incurred pursuant
to this agreement through the date of such termination. In addition, we shall
receive a contingency fee equal to the pro-rata allocation of what our
contingency fee would have been if our representation had continued based on (i)
the total hours expended by our firm as compared to aggregate hours expended by
subsequent counsel, and (ii) the relief ultimately obtained by the Network-1
from the parties listed on Appendix A.

     Insurance

     We maintain errors and omissions insurance (sometimes called "malpractice
insurance") applicable to this representation. We, of course, expect to provide
you with representation at least equal to that of a reasonably competent
attorney.

     Your ability to enter this agreement

     Both you and the person executing this Agreement on your behalf state and
warrant that you have the legal capacity to enter this agreement and that the
person executing this agreement on your behalf is fully authorized to do so.

     Advice regarding this agreement

     If you have any questions about this agreement, please feel free to call
us. In addition, because this agreement affects your rights, we encourage you to
consult with another lawyer or advisor before signing this agreement

     If you are satisfied with the terms of this agreement, please sign one copy
and return it to us. We look forward to working with you. Again, thank you for
the opportunity.

                                                    Sincerely yours,

                                                    /s/ Dovel & Luner, LLP
                                                    ---------------------------
                                                    Dovel & Luner, LLP

AGREED:

Network-1 Security Solutions, Inc.

By: /s/ Corey M. Horowitz
    ---------------------------
    Corey M. Horowitz
    Chairman and CEOExhibit 10.1

                             RMMI AUSTRALIA PTY LTD

                                       and

                            EAGLE BAY RESOURCES N.L.

                                       and

                               AUDAX RESOURCES LTD

________________________________________________________________________________

                                CARR BOYD FARMIN
                                       and
                        JOINT VENTURE HEADS OF AGREEMENT

________________________________________________________________________________

                                  DECEMBER 2006

________________________________________________________________________________
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CARR BOYD FARMIN AND JOINT VENTURE HEADS OF AGREEMENT

THIS AGREEMENT is dated 6th December 2006

BETWEEN:

RMMI AUSTRALIA PTY LTD (ACN 122 077 105)
Level 25, 500 Collins Street, Melbourne Vic 3000 ("RMMI")

AND

EAGLE BAY RESOURCES N.L. (ACN 051 212 429) of
Level 1, 14 Outram St, West Perth WA 6005 ("EBR")

AND

AUDAX RESOURCES LTD (ACN 009 058 646)
125 Edward St, East Perth WA 6000 ("ADX")

RECITALS:

A.   ADX is the beneficial owner and is, or is entitled to be, the registered
     holder of a 100% interest in the Tenements.

B.   RMMI and EBR wish to earn interests in the Tenements and the parties have
     agreed that RMMI and EBR may earn such interest on the terms and conditions
     set out in this Agreement.

AGREED as follows

1.   INTERPRETATION

     1.1  In this Agreement unless the context otherwise requires:

          "ASX" means Australian Stock Exchange Limited;

          "Bankable Feasibility Study" means a positive Feasibility Study for
          which project financing can be made available from a financial
          position;

          "Commencement Date" means 30 September 2006;

          "Decision to Mine" means a decision by the Manager to recommend to the
          Participants that they undertake mining following a positive
          Feasibility Study, and being a decision communicated by the Manager by
          notice to the other Participant;

          "Earning Period" means the period commencing on the Commencement Date
          and ending as provided in clause 3.3;

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          "Expert" means an independent expert appointed by the Participants,
          or, in the absence of agreement, by the President of AusIMM;

          "Farmin Interest" means all of RMMI and EBR's rights and interests
          pursuant to this Agreement to earn a beneficial interest in the
          Tenements;

          "Feasibility Study" means, in relation to any proposed mining
          operations, a study of all aspects of the proposed mining operations
          which;

          (a)  from appropriate sampling programmes provide estimates of the
               tonnes of proved and probable reserves of ore and the grades
               thereof;

          (b)  contains estimates of both capital costs and operating costs
               likely to be incurred in establishing and conducting mining
               operations, including costs to be incurred in mine development,
               pre-production, crushing, treatment and environmental management;

          (c)  analyses how to proceed with mining operations to economically
               and commercially extract minerals;

          (d)  includes reference to relevant marketing and financial aspects;

          (e)  states whether or not establishment of the proposed mining
               operations is commercially viable for a Participant;

          (f)  in the case of mine operations using a standalone processing
               plant, is of such detail and scope as would be acceptable to a
               bank or other financial institution for the purpose of providing
               financing for the establishment and carrying out of the proposed
               mining operations;

          (g)  includes a schedule of relevant approvals necessary before
               production may commence; and

          (h)  includes all Joint Venture Operations for the purpose of
               producing such a study.

          "Joint Venture" means the joint venture constituted under clause 2.1
          of this Agreement;

          "Joint Venture Expenditure" means all Outgoings and the costs of all
          Joint Venture Operations including (without limitation) all costs,
          expenses and liabilities incurred in connection with the exploration,
          development and mining of the Tenements for minerals, accounted for in
          accordance with accounting principles accepted in Australia;

          "Joint Venture Interest" means in relation to a Participant:

          (a)  its interest (from time to time) as tenant in common in the Joint
               Venture Property and in all other rights conferred by this
               Agreement; and

          (b)  its right to take in kind a share of minerals derived from the
               Tenements

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          subject to the liabilities and obligations attaching to the foregoing
          and imposed by this Agreement;

          "Joint Venture Operations" means all activities as are necessary or
          desirable in order to implement and give full effect to the provisions
          and purposes of this Agreement;

          "Joint Venture Property" means all property of whatsoever kind held,
          developed, acquired or created by or on behalf of the Participants for
          the purpose of the Joint Venture including (without limitations):

          (a)  the Tenements;

          (b)  Mining information; and

          (c)  minerals, concentrate and ore prior to their being taken in kind
               by the Participants;

          "Manager" means the Participant appointed to conduct Joint Venture
          Operations pursuant to clause 6.1 but reference to the Manager do not
          include references to that Participant in any other capacity;

          "Mining Act" means the Mining Act 1978 (W.A.) as amended;

          "Mining Information" means all technical and other information
          including (without limitation) geological, geochemical and geophysical
          reports, surveys, mosaics, aerial photographs, samples, drill core,
          drill logs, drill pulp, assay results, maps and plans relating to the
          Tenements or to Joint Venture Operations, whether in physical, written
          or electronic form;

          "Operating Committee" means the Operating Committee formed under
          clause 7.1 of this Agreement;

          "Outgoings" means all rents, rates, survey fees and other fees and
          charges under the Mining Act or otherwise in connection with the
          Tenements;

          "Participants" means RMMI, EBR and ADX and or their permitted
          successors and assigns holding a joint venture interest;

          "Related Body Corporate" means with respect to any Participant a
          related body corporate of that Participant within the meaning of the
          Corporations Act;

          "Tenement Area" means the land over which the relevant tenements have
          been granted.

          "Tenements" means the tenements referred to in the Schedule and any
          other tenements acquired pursuant to clause 24, together with any
          extensions, renewals, consolidations, replacements or amendments to
          those tenements and all rights associated with those tenements
          including the right to treat mineral bearing material located in the
          tenements.

     1.2  In this Agreement, unless the context requires otherwise:

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          (a)  reference to a recital, clause, schedule, annexure or exhibit is
               to a recital, clause, schedule, annexure or exhibit of or to this
               Agreement;

          (b)  a reference to this Agreement or another instrument includes any
               variation or replacement of any of them;

          (c)  a reference to any statute shall include any amendment,
               replacement or re-enactment thereof for the time being in force
               and any by-laws, statutory instruments, rules, regulations,
               notices, orders, directions, consents or permissions made
               thereunder and any conditions attaching thereto; (d) the singular
               includes the plural and vice versa;

          (e)  a reference to any gender includes all genders;

          (f)  a reference to a person includes a reference to the person's
               executors, administrators, substitutes, successors and permitted
               assigns;

          (g)  a covenant, representation or warranty in favour of two or more
               persons is for the benefit of them jointly and severally;

          (h)  a covenant, representation or warranty on the part of two or more
               persons binds them jointly and severally; and

          (i)  a reference to currency is to the currency of Australia.

2.   JOINT VENTURE

     2.1  The Participants hereby associate in an unincorporated joint venture
          for the purpose of exploring and, if warranted, developing and mining
          the Tenements.

     2.2  The Joint Venture shall commence on the Commencement Date and on that
          date the Joint Venture Interests of the Participants are:

                             RMMI         0%
                             EBR          0%
                             ADX          100%

     2.3  Nothing in this Agreement shall make a Participant a partner of any
          other Participant nor, except as expressly provided in this Agreement,
          constitute any Participant the agent or representative of any other
          Participant or to create any fiduciary relationship between them.

     2.4  No Participant shall have any authority to act on behalf of any other
          Participant, except as expressly provided in this Agreement. Where a
          Participant acts on behalf of another without authority, such
          Participant shall indemnify the other from any losses, claims, damages
          and liabilities arising out of any such act.

     2.5  Each Participant has the right to take in kind and separately dispose
          of, in proportion to its Joint Venture Interest, all minerals produced
          by the Joint Venture.

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<PAGE>
     2.6  The liabilities of the Participants to each other and to third parties
          shall be several in proportion to their respective Joint Venture
          Interests from time to time and shall not be either joint or joint and
          several. Each Participant hereby indemnifies the other against any
          claim or liability incurred by the other in excess of the other's
          Joint Venture Interest.

3.   EARNING PERIOD

     3.1  RMMI and ADX acknowledge that EBR has paid $5,000 by way of
          exploration expenditure by EBR on the Tenements.

     3.2  RMMI may contribute $1 million to Joint Venture Expenditure during the
          Earning Period, including at least $100,000 in the first six months of
          this agreement.

     3.3  Subject to clause 3.5, the earning Period will end when RMMI has
          contributed $1 million to Joint Venture Expenditure (including the
          payment in clause 3.1) and gives notice of this to ADX, or on 30
          September 2010, whichever comes first.

     3.4  RMMI must contribute at least $48,000 to Joint Venture Expenditure
          (including the payment in clause 3.1), for each permit year it enters.

     3.5  If RMMI fails to spend the sum of $1 million on Joint Venture
          Expenditure during the Earning Period then it and EBR shall be deemed
          to have withdrawn from the Joint Venture unless EBR agrees to meet
          RMMI's outstanding commitments pursuant to clause 13 unless this
          period has been extended by Force Majeure or by mutual agreement
          between the Participants.

     3.6  Upon contributing $1 million to Joint Venture Expenditure during the
          Earning Period and giving notice thereof to ADX, RMMI and EBR shall be
          deemed to have earned a 70% Joint Venture Interest so that the Joint
          Venture Interests of the Participants shall then be:

                                          RMMI         51%
                                          EBR          19%
                                          ADX          30%

     3.7  If ADX is not satisfied that RMMI has made an earning contribution
          asserted by it under this clause 3 it must give notice to RMMI within
          21 days of receiving a notice from RMMI under clause 3.3. If the
          Participants are unable to resolve any dispute arising under this
          clause either party may require the matter to be referred to an
          auditor. RMMI may extend the Initial Earning Period of the Further
          Earning Period (as the case may be) for such period as may be agreed
          between the Participants or determined by the auditor to be reasonable
          so as to complete its earning obligations where it is agreed or
          determined RMMI has not made a sufficient contribution.

                                                                               6
<PAGE>

4.   ADX ELECTION UPON EBR EARNING ITS 70% INTEREST

     4.1  Upon RMMI giving written notice to ADX that it has earned its 70%
          Joint Venture Interest pursuant to clause 3.7, ADX may elect, by
          notice in writing to RMMI within 30 days, that it will:

          (a)  contribute its 30% share of Joint Venture Expenditure; or

          (b)  dilute in accordance with the formula set out in clause 10. The
               sole right and responsibility with respect to the dilution
               percentage is to be at the cost of and for the benefit of EBR who
               shall meet the additional expenditure with respect to this
               dilution.

5.   ELECTION UPON EBR COMPLETING A BANKABLE FEASIBILITY STUDY

     5.1  Upon completion by RMMI and/or EBR of a Bankable Feasibility Study
          (BFS) RMMI and/or EBR must give ADX a written copy of the Bankable
          Feasibility Study and ADX must within 30 days of receipt of the
          Bankable Feasibility Study elect to pay its then participating
          interest or withdraw from the Joint Venture.

     5.2  All parties must offer their respective Joint Venture Interests as
          security for project financing of development and production.

6.   MANAGER

     6.1  RMMI shall be the Manager while it is the sole contributor to Joint
          Venture Expenditure and shall be entitled to remain the Manager
          (subject to clause 6.2) while it holds a Joint Venture Interest of 51%
          or greater.

     6.2  The Manager:

          (a)  may resign on 30 days' notice to the Participants; or

          (b)  may be removed by resolution of the Operating Committee or if it
               commits gross negligence or wilful default; and

          upon retirement or removal of the Manager, the Participants shall
          appoint a Manager by agreement between them, or, failing this, by
          resolution of the Operating Committee.

     6.3  While RMMI remains the sole contributor to Joint Venture Expenditure
          it shall (as Manager) have the sole responsibility for determining and
          carrying out programmes and budgets. Notwithstanding the foregoing,
          RMMI shall provide copies of proposed programmes to ADX and shall
          allow EBR and ADX the opportunity to comment upon such proposed
          programmes but RMMI shall not be bound to act on such comments.

     6.4  After RMMI ceases to be the sole contributor to Joint Venture
          Expenditure the Manager shall prepare programmes and budgets for
          consideration by the Operating Committee. Programmes and budgets shall
          be prepared for periods each of 6 months duration commencing on 1
          September and 1 March.

                                                                               7
<PAGE>
     6.5  After RMMI ceases to be the sole contributor to Joint Venture
          Expenditure the Manager:

          (a)  shall carry out the Joint Venture activities in accordance with
               programmes and budgets approved by the Operating Committee;

          (b)  may not exceed an approved budget by more than 15% without the
               prior consent of the Operating Committee, except in relation to
               emergency expenditure;

          (c)  shall be responsible for all day to day operations of the Joint
               Venture which shall include managing and supervising all approved
               programmes and budgets;

          (d)  shall carry out Joint Venture activities in accordance with good
               mining industry practice, with reasonable care, skill and
               diligence and in accordance with all applicable laws and
               regulations;

          (e)  shall promptly carry out the instructions and directions of the
               Operating Committee; and

          (f)  shall maintain complete and accurate books, records and accounts
               of all transactions relating to the Joint Venture which shall be
               open for inspection and audit by the Participants.

     6.6  The Manager shall furnish concise reports to the Participants, on a
          quarterly basis, which shall contain all relevant technical and
          financial information concerning the joint venture. The cost of
          providing such reports shall be Joint Venture Expenditure.

     6.7  All statutory reports concerning the Tenements released by the Manager
          shall be provided to the Participants and the costs of providing such
          reports shall be Joint Venture Expenditure.

     6.8  The Manager shall, on receiving reasonable notice from any of the
          Participants, provide that Participant with copies of any relevant
          project data, provided that any such report or relevant project data
          is provided at the cost of the Participant requesting it.

     6.9  The Manager shall not be liable to any Participant for any losses
          sustained or liability incurred by the Joint Venture and each
          Participant shall be liable to indemnify the Manager in proportion to
          their respective Joint Venture Interests in respect of the same except
          where any such loss or liability arises as a direct result of the
          Manager's wilful misconduct or gross negligence.

     6.10 Each Participant appoints the Manager and each of its directors from
          time to time (severally) its lawful attorney to sign all forms and
          documents and do everything necessary to maintain the Tenements in
          good standing and in full force, and to comply with the provisions of
          the Mining Act.

                                                                               8
<PAGE>
7.   OPERATING COMMITTEE

     7.1  As soon as practicable after the completion of the Earning Period, the
          Participants shall form and then maintain a committee which shall meet
          not less than once in each calendar quarter unless otherwise agreed.

     7.2  Each of the Participants shall be entitled to appoint a representative
          as a member of the Operating Committee and to remove any person so
          appointed and to appoint another person in their place. Any
          appointment or removal is to be effected by notice in writing to the
          other Participants.

     7.3  The Operating Committee may review and give directions to the Manager
          as to Joint Venture Operations and shall consider and approve (subject
          to modification or otherwise) the nature and content of programmes and
          budgets relating to Joint Venture Operations as proposed by the
          Manager.

     7.4  The voting power of each Participant's representative at meetings of
          the Operating Committee shall be one vote for each percentage point of
          that Participant's Joint Venture Interest as at the date of the
          meeting.

     7.5  In the event of a deadlock in voting on matters requiring majority
          vote:

          (a)  the Participants (through their respective senior management)
               shall meet and in good faith attempt to resolve the deadlock;

          (b)  while the deadlock continues, operations shall continue at the
               same rate as previously; and

          (c)  after a 3 month period, the decision of whichever Participant is
               the Manager shall prevail.

     7.6  All matters for decision before the Operating Committee shall require
          a majority vote by one or more of the Participants except for passage
          of any decision regarding the ceasing of mining operations that are
          providing a positive return on investment for all Participants, which
          shall require a 75% majority vote of one or more of the Participants.

     7.7  A decision by the Operating Committee will not be effective to amend
          the terms of this Agreement.

8.   MAINTENANCE OF TENEMENTS

     8.1  During the Earning Period, RMMI shall pay all Outgoings and maintain
          the Tenements in good standing (including ensuring that all Mining act
          reporting requirements are observed).

                                                                               9
<PAGE>

9.   CASH CALLS

     9.1  After the Earning Period:

          (a)  the Manager shall within 30 days after the end of each month,
               issue to each Participant a cash call for its share of Joint
               Venture Expenditure paid or incurred during the preceding month;

          (b)  the Manager may, not more than 30 days prior to the commencement
               of any month issue cash calls for estimated costs which the
               Manager anticipates will be incurred during that month;

          (c)  all cash calls must be paid within 14 days of receipt; and

          (d)  all Participants shall be liable to contribute to Joint Venture
               Expenditure in proportion to their Joint Venture Interests from
               time to time.

     9.2  A Participant that does not pay a cash call by the due date shall pay
          interest thereon at a rate equal to 3% above the Westpac Banking
          Corporation Indicator Lending Rate from time to time.

     9.3  The Manager shall be entitled to recover moneys owing by a defaulting
          party in any court of competent jurisdiction

     9.4  If a Participant defaults in the payment of a cash call properly
          issued to it and if default continues for more that 30 days, the other
          Participants may elect to dilute the Joint Venture Interest of the
          defaulting Participant, in which case the defaulting Participant's
          Joint Venture Interest shall be diluted at the rate of 150% of the
          rate prescribed in clause 10.2

10.  DILUTION

     10.1 The following shall apply in relation to voluntary dilution by a
          Participant, which dilution may only occur prior to a Decision to
          Mine:

          (a)  within 21 days after approval by the Operating Committee of a
               programme and budget, any Participant may elect not to contribute
               to the programme or budget. If a Participant makes such an
               election, the other Participant may amend the approved programmed
               and budget to take account of the non-contribution;

          (b)  the Participant that elected not to contribute ("Diluting
               Participant") shall have its Joint Venture Interest diluted in
               accordance with the dilution formula set out in clause 10.2;

          (c)  notwithstanding anything in this clause, voluntary dilution is
               not permitted in respect of any programme and budget which is
               necessary to maintain the Tenements.

                                                                              10
<PAGE>

     10.2 The Joint Venture Interest of a Diluting Participant shall be diluted
          and recalculated from time to time in accordance with the following
          formula:

                      New Joint Venture Interest =          A x 100
                                                            -------
                                                                B
               Where:

               A      =      the total  amount of Joint  Venture  Expenditure
                             contributed  by the Diluting  Participant  at the
                             date of  calculation  plus  the  deemed
                             contribution of the Diluting Participant;

               B      =      the total amount of Joint Venture Expenditure
                             contributed by the Participants at the date of
                             calculation, plus the deemed contributions of both
                             Participants.

               For the purposes of the formula, where RMMI and EBR has earned an
               aggregate 70% Joint Venture Interest the deemed contribution of
               ADX shall be $300,000 and for EBR it shall be $190,000 and for
               RMMI it shall be $510,000.

     10.3 Other than in the circumstances set in clause 4.1 (b), the diluted
          interest shall be distributed to the Non-Participants pro rata.

11.  CONFIDENTIALITY

     11.1 Unless otherwise agreed by the Participants or required by law or the
          listing Rules of the ASX, all information obtained in relation to the
          Joint Venture and which is not in the public domain shall be kept
          confidential and shall not be disclosed by the Participants.

     11.2 If required by any Participant, the Manager must give to the
          Participants all information the Participant requires to comply with
          the Listing Rules of the ASX and the Participants agree that such
          information may be given to the ASX for release to the market if
          necessary for the Participants to comply with the Listing Rules,
          provided that all Participants have been given a reasonable period of
          time, bearing in mind the circumstances, to comment on the draft
          announcement to ASX.

12.  WARRANTIES

     12.1 ADX represents and warrants to RMMI and EBR and that:

          (a)  it is the sole registered holder and beneficial owner of the
               Tenements and has good right and title to assign an interest
               therein free from any mortgages, claims, caveats, pledges, liens,
               charges or other encumbrances;

          (b)  other than any native title claims, of which ADX is not aware,
               there is no litigation nor are there any proceedings of any
               nature concerning the Tenements pending or threatened;

                                                                              11
<PAGE>
          (c)  the Tenements have been duly and properly applied for in terms of
               the Mining Act and all Outgoings due as at the Commencement Date
               have been paid;

          (d)  the Tenements are in all respects valid, effective and in good
               standing and not liable to forfeiture or surrender and, where
               necessary, appropriate exemptions from the expenditure conditions
               attaching to the Tenements have been applied for or obtained;

          (e)  it has entered into no other existing agreement regarding the
               Tenements and, except for EBR, no other party holds any rights to
               explore, prospect or mine on any part of the Tenements; and

          (f)  to the best of its knowledge and belief all matters relating to
               the Tenements which would reasonably be regarded as material and
               proper for disclosure to an intending purchaser thereof have been
               disclosed to EBR.

13.  ASSIGNMENT

     13.1 Subject to clause 13.4, RMMI and EBR may assign all or any of its
          Joint Venture Interest or its Farmin Interest to any Body Corporate
          without each other Participant's consent but subject to the assignee
          company agreeing to assign the Joint Venture Interest back to the
          assignor in the event that it ceases to for fill its obligations to
          EBR.

     13.2 Subject to clause 13.1, no Participant ("Assigning Participant") may
          assign all or any of its Joint Venture Interest and in the case of
          RMMI or EBR its Farmin Interest unless the Assigning Participant first
          offers to assign such interest to the other Participants
          ("Non-Assigning Participants") pro rata upon the same terms and
          conditions (as determined by clause 13.3) as the proposed terms and
          conditions of the assignment to the third party and such offer has not
          been accepted by the Non-Assigning Participants within 30 days after
          the making of the offer.

     13.3 For the purposes of clause 13.2, the identity of the proposed third
          party assignee, the proposed purchase price and other terms and
          conditions upon which the Assigning Participant is prepared to sell or
          dispose of all or part of its Joint Venture Interest shall be
          furnished to the Non-Assigning Participants at the time of delivery of
          the offer and the proposed consideration must be in cash and or joint
          venture expenditure or if not in cash or joint venture expenditure, be
          of a value to be agreed between the Participants. If the Participants
          cannot agree upon such value the matter shall be determined by an
          Expert whose decision shall be final.

     13.4 Where an assignment is made to a Related Body Corporate or a third
          party, such assignment shall have no force or effect whatsoever until
          such time as the Related Body Corporate or the third party has entered
          into a covenant with the other Participants binding it to observe and
          perform all the terms and conditions of this Agreement.

                                                                              12
<PAGE>
     13.5 No Participant shall assign, encumber, part with possession of, grant
          any power of attorney over or in any other directly or indirectly deal
          with its Joint Venture Interest or any part thereof (or any right to
          earn a Joint Venture Interest) save as expressly permitted by the
          terms of this Agreement.

     13.6 A Participant may create or permit the creation of an encumbrance over
          the whole or part of its Joint Venture Interest but only if it
          complies with each of the following requirements:

          (a)  the encumbrance is a mortgage, charge or other recognised form of
               security;

          (b)  the encumbrance is to secure moneys borrowed for the purpose of
               meeting its obligations under this Agreement; and

          (c)  the person taking the encumbrance executes a chargee's priority
               deed in a form reasonably acceptable to the other Participant,
               agreeing that the rights of that person under the encumbrance are
               subject to the provisions of this Agreement.

14.  WITHDRAWAL

     14.1 Subject to clauses 3.4 and 8.1, any Participant may withdraw from the
          Joint Venture by giving 12 months' notice in writing to the other
          Participants. Where a budget has been approved and is relevant to a
          period remaining of less than 12 months, then notice may be given with
          such lesser time notice period.

     14.2 Upon a withdrawal or deemed withdrawal from the Joint Venture, then,
          unless otherwise provided in this Agreement, the withdrawing
          Participant shall thereupon assign to the other Participants pro rata
          all its Joint Venture Interest for nil consideration.

     14.3 Any withdrawal pursuant to this clause 14 shall be without prejudice
          to any rights or obligations of the Participants arising prior to the
          withdrawal.

15.  HOLDING AND TRANSFER OF JOINT VENTURE PROPERTY

     15.1 The Joint Venture Property shall be held by the Participant or
          Participants for the time being having legal title thereto upon trust
          for the Participants as tenants in common in undivided shares in
          accordance with their respective Joint Venture Interests.

     15.2 Any Participant having a beneficial interest in Joint Venture Property
          may at any time and at its expense require a transfer from the other
          Participants, of the legal title to that beneficial interest.

                                                                              13
<PAGE>
     15.3 The transfer of any interest in the Tenements pursuant to this
          Agreement is subject to any necessary consent or approval under the
          Mining Act or under any other law or regulation and the Participants
          shall use all reasonable efforts to promptly obtain all necessary
          consents and approvals.

16.  CAVEATS

     16.1 Any Participant shall be entitled to lodge such caveats pursuant to
          the Mining Act as it thinks fit to protect its beneficial interest in
          the Tenements from time to time.

17.  FURTHER ASSURANCES

     17.1 The Participants shall sign all such documents, forms and notices and
          do all such things as may be reasonably necessary to give effect to
          the terms of this Agreement.

18.  NOTICES

     18.1 A notice approval, consent or other communication in connection with
          this Agreement:

          (a)  must be in writing;

          (b)  must be marked for the attention of the person specified in
               clause 18.2 or, if a Participant notifies another person, then to
               that person; and

          (c)  must be left at the address of the addressee, or sent by prepaid
               ordinary post (airmail if posted to or from a place outside
               Australia) to the address of the addressee or sent by facsimile
               to the facsimile number of the addressee which is specified in
               clause 18.2 or, if the addressee notifies another address or
               facsimile number, then to that address of facsimile number.

     19.2 The address and facsimile number of, and specified person for, each
          Participant is:

                     (a) RMMI

                            Attention:      Managing Director
                            Address:        25th Floor, 500 Collins St
                                            Melbourne  Vic   3000
                            Facsimile:      (03) 8610 4799

                     (b) EBR

                            Attention:      Managing Director
                            Address:        1st Floor, 14 Outram St
                                            West Perth  WA  6872
                            Facsimile:      (08) 9481 3330

                     (b) ADX

                            Attention:      Managing Director
                            Address:        125 Edward St
                                            East Perth  WA  6872
                            Facsimile:      (08) 9328 2869

                                                                              14
<PAGE>
     18.3 A notice, approval, consent or other communication takes effect from
          the time it is received unless a later time is specified in it. A
          posted letter or facsimile is taken to be received:

          (a)  in the case of a posted letter, on the third (seventh, if posted
               to or from a place outside Australia) Business Day after posting;
               and

          (b)  in the case of facsimile, on production, by the machine from
               which the facsimile was sent, of a transmission report which
               indicates that the facsimile was sent in its entirety and in an
               error free form to the facsimile number of the recipient notified
               for the purpose of this clause.

19.  NO PARTITION

     19.1 Unless otherwise agreed between the Participants, no Participant and
          no person claiming through a Participant shall during the life of the
          Joint Venture seek partition, whether by any court or otherwise
          howsoever of any Joint Venture Property.

20.  FORCE MAJEURE

     20.1 In this Agreement, Force Majeure means:

          (a)  declared or undeclared war, revolution, act of public enemies
               riots or civil commotions;

          (b)  strike, lockout, stoppage or restraint of labour or other
               industrial disputes;

          (c)  fire or explosion, Act of God, flood, storm or washaway, in each
               case which could not have been reasonably foreseen or with due
               diligence avoided;

          (d)  act or restraint of any Government, Governmental agency or
               authority, including expropriation, prohibition, intervention,
               direction, embargo, or regulation so that the ability of a party
               to perform its obligations is substantially adversely affected;
               and

          (e)  any other cause which by the exercise of reasonable foresight or
               due diligence the party is unable to prevent or overcome.

     20.2 A party shall be excused from the performance of an obligation under
          this Agreement, other than an obligation to pay money, to the extent
          and for so long as the failure is caused by Force Majeure. For the
          purposes of this clause 20 the words "excused from performance of an
          obligation" shall be taken to include the obligations which EBR may
          satisfy so as to earn interests during the Earning Period such that
          the Initial Earning Period and the Further Earning Period shall be
          extended in the event of Force Majeure and EBR giving notice pursuant
          to clause 20.3.

                                                                              15
<PAGE>
     20.3 A party claiming to be excused from performance of an obligation
          shall:

          (a)  within 48 hours give notice to the other party of the event of
               Force Majeure relied on; and

          (b)  use its best endeavours to resume compliance with the obligation
               as soon as reasonably possible but no party shall be obliged to
               settle an industrial dispute on terms not acceptable to it.

     20.4 If a party is excused from performance of an obligation by reason of
          Force Majeure, then the time for performance by each party of its
          obligations under this Agreement shall be extended by such time as is
          reasonable in the circumstances.

21.  FORMAL JOINT VENTURE AGREEMENT

     21.1 If requested by any Participant at any time after EBR has earned a
          Joint Venture Interest, the Manager shall prepare a formal joint
          venture agreement setting out the arrangements and commitments herein
          contained together with such provisions as are normally found in joint
          venture agreements and are not inconsistent with this Agreement will
          be negotiated in good faith between the Participants but until such a
          formal agreement is executed the Participants shall be bound by the
          provisions of this Agreement. If the Participants fail to reach
          agreement on any matter, either Participant may require the matter to
          be referred to an Expert whose decision shall be final and binding.

22.  COSTS

     24.1 Each Participant shall be responsible for its own legal costs in
          connection with the preparation of this Agreement.

23.  GST

     23.1 Definitions

          For the purposes of this clause 23:

          "Consideration" has the same meaning as in the GST Act but does not
          include the GST amount payable;

          "GST" means a tax, import or duty on goods or services or other things
          introduced by the Commonwealth of Australia or any State of Australia
          or any similar tax;

          "GST Act" means a New Tax System (Goods and Services Tax) Act 1999;
          and

                                                                              16
<PAGE>
          "Supply" has the same meaning as in section 9.10 of the GST Act.

     23.2 GST Component

          Any Supply pursuant to or arising out of this Agreement and the Joint
          Venture shall be upon the basis that the Consideration for that Supply
          is increased by the amount of GST payable.

     23.3 GST Obligation

          The Participants and the Manager shall duly comply with all GST
          obligations.

     23.4 GST Joint Venture

          The Participants will in good faith consider taking action to register
          the Joint Venture as a "GST Joint Venture".

24.  AREA OF INTEREST

     24.1 The Participants acknowledge that any mineral tenement acquired by any
          party to this agreement within 50km of EL31/491 are to be included in
          this Joint Venture Agreement.

     24.2 Audax agrees that it shall allow RMMI and EBR first right of refusal
          to enter into individual joint ventures with Audax in any tenement it
          acquires within Western Australia during the currency of this Joint
          Venture.

25.  GOVERNING LAW

     25.1 This Agreement shall be governed by and construed in accordance with
          the laws of the State of Western Australia and the Participants agree
          to submit to the non-exclusive jurisdiction of the courts of that
          State.

Executed by the Participants as an Agreement.

EXECUTED for and on behalf of )
RMMI AUSTRALIA PTY LTD        )

/s/ M.A. MUZZIN
---------------
Director

M.A. MUZZIN
---------------
Print name

                                                                              17
<PAGE>

EXECUTED by EAGLE BAY RESOURCES N.L.   )

/s/ A. RECHNER
--------------
Director

A. RECHNER
--------------
Print name

EXECUTED for and on behalf of         )
AUDAX RESOURCES LTD                   )

/s/ GARY ROPER
--------------
Director

GARY ROPER
--------------
Print name

                                                SCHEDULE

Tenements and Minimum Government Expenditures
EL 31/491 ($20,000); and
EL 31/492 ($28,000)

(together called "Carr Boyd")

                                                                              18
<PAGE>

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