Document:

Volcan Holdings, Inc.: Exhibit 10.3 - Prepared by TNT Filings Inc.

VOLCAN HOLDINGS, INC. 

FORM OF DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT

          This
Director and Officer Indemnification Agreement, dated as of September __, 2008
(this “Agreement”), is made by and between Volcan Holdings, Inc.,
a Delaware corporation (the “Company”), and ___________ (the
“Indemnitee”). 

RECITALS: 

          A.      Section
141 of the Delaware General Corporation Law provides that the business and
affairs of a corporation shall be managed by or under the direction of its board
of directors. 

          B.      By
virtue of the managerial prerogatives vested in the directors and officers of a
Delaware corporation, directors and officers act as fiduciaries of the
corporation and its stockholders. 

          C.      Thus,
it is critically important to the Company and its stockholders that the Company
be able to attract and retain the most capable persons reasonably available to
serve as directors and officers of the Company. 

          D.     
In recognition of the need for corporations to be able to induce capable and
responsible persons to accept positions in corporate management, Delaware law
authorizes (and in some instances requires) corporations to indemnify their
directors and officers, and further authorizes corporations to purchase and
maintain insurance for the benefit of their directors and officers. 

          E.     
The Delaware courts have recognized that indemnification by a corporation serves
the dual policies of (1) allowing corporate officials to resist unjustified
lawsuits, secure in the knowledge that, if vindicated, the corporation will bear
the expense of litigation, and (2) encouraging capable women and men to serve as
corporate directors and officers, secure in the knowledge that the corporation
will absorb the costs of defending their honesty and integrity. 

          F.      The
number of lawsuits challenging the judgment and actions of directors and
officers of Delaware corporations, the costs of defending those lawsuits and the
threat to personal assets have all materially increased over the past several
years, chilling the willingness of capable women and men to undertake the
responsibilities imposed on corporate directors and officers. 

          G.      Recent
federal legislation and rules adopted by the Securities and Exchange Commission
and the national securities exchanges have exposed such directors and officers
to new and substantially broadened civil liabilities. 

          H.      Under
Delaware law, a director’s or officer’s right to be reimbursed for the costs of
defense of criminal actions, whether such claims are asserted under state or
federal law, does not depend upon the merits of the claims asserted against the
director or officer and is separate and distinct from any right to
indemnification the director may be able to establish. 

          I.     
Indemnitee is, or will be, a director and/or officer of the Company and his or
her willingness to serve in such capacity is predicated, in substantial part,
upon the Company’s willingness to indemnify him or her in accordance with the
principles reflected above, to the fullest extent permitted by the laws of the
State of Delaware, and upon the other undertakings set forth in this Agreement.

          J.      Therefore,
in recognition of the need to provide Indemnitee with substantial protection
against personal liability, in order to procure Indemnitee’s continued service
as a director and/or officer of the Company and to enhance Indemnitee’s ability
to serve the Company in an effective manner, and in order to provide such
protection pursuant to express contract rights (intended to be enforceable
irrespective of, among other things, any amendment to the Company’s certificate
of incorporation or bylaws (collectively, the “Constituent
Documents”), any change in the composition of the Company’s Board of
Directors (the “Board”) or any change-in-control or business
combination transaction relating to the Company), the Company wishes to provide
in this Agreement for the indemnification and advancement of Expenses to
Indemnitee on the terms, and subject to the conditions, set forth in this
Agreement. 

          K.     
In light of the considerations referred to in the preceding recitals, it is the
Company’s intention and desire that the provisions of this Agreement be
construed liberally, subject to their express terms, to maximize the protections
to be provided to Indemnitee hereunder. 

AGREEMENT: 

          NOW,
THEREFORE, the parties hereby agree as follows: 

          1.     
Certain Definitions. In addition to terms defined elsewhere herein, the
following terms have the following meanings when used in this Agreement with
initial capital letters: 

                    “Change
in Control” shall have occurred at such time, if any, as Incumbent
Directors cease for any reason to constitute a majority of Directors. For
purposes of this Section 1(a), “Incumbent Directors” means the
individuals who, as of the date hereof, are Directors of the Company and any
individual becoming a Director subsequent to the date hereof whose election,
nomination for election by the Company’s stockholders, or appointment, was
approved by a vote of at least a majority of the then Incumbent Directors
(either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director, without objection to
such nomination); provided, however, that an individual shall not be an
Incumbent Director if such individual’s election or appointment to the Board
occurs as a result of an actual or threatened election contest (as described in
Rule 14a-12(c) of the Securities Exchange Act of 1934, as amended) with respect
to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board. 

                    “Claim”
means (i) any threatened, asserted, pending or completed claim, demand, action,
suit or proceeding, whether civil, criminal, administrative, arbitrative,
investigative or 

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other, and whether made pursuant to federal, state or other
law; and (ii) any inquiry or investigation, whether made, instituted or
conducted by the Company or any other Person, including, without limitation, any
federal, state or other governmental entity, that Indemnitee reasonably
determines might lead to the institution of any such claim, demand, action, suit
or proceeding. For the avoidance of doubt, the Company intends indemnity to be
provided hereunder in respect of acts or failure to act prior to, on or after
the date hereof.

                    “Controlled
Affiliate” means any corporation, limited liability company,
partnership, joint venture, trust or other entity or enterprise, whether or not
for profit, that is directly or indirectly controlled by the Company. For
purposes of this definition, “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of an entity or enterprise, whether through the ownership
of voting securities, through other voting rights, by contract or otherwise;
provided that direct or indirect beneficial ownership of capital stock or
other interests in an entity or enterprise entitling the holder to cast 15% or
more of the total number of votes generally entitled to be cast in the election
of directors (or persons performing comparable functions) of such entity or
enterprise shall be deemed to constitute control for purposes of this
definition.

                    “Disinterested
Director” means a director of the Company who is not and was not a party
to the Claim in respect of which indemnification is sought by Indemnitee.

                    “Expenses”
means attorneys’ and experts’ fees and expenses and all other costs and expenses
paid or payable in connection with investigating, defending, being a witness in
or participating in (including on appeal), or preparing to investigate, defend,
be a witness in or participate in (including on appeal), any Claim.

                    “Indemnifiable
Claim” means any Claim based upon, arising out of or resulting from (i)
any actual, alleged or suspected act or failure to act by Indemnitee in his or
her capacity as a director, officer, employee or agent of the Company or as a
director, officer, employee, member, manager, trustee or agent of any other
corporation, limited liability company, partnership, joint venture, trust or
other entity or enterprise, whether or not for profit, as to which Indemnitee is
or was serving at the request of the Company, (ii) any actual, alleged or
suspected act or failure to act by Indemnitee in respect of any business,
transaction, communication, filing, disclosure or other activity of the Company
or any other entity or enterprise referred to in clause (i) of this sentence, or
(iii) Indemnitee’s status as a current or former director, officer, employee or
agent of the Company or as a current or former director, officer, employee,
member, manager, trustee or agent of the Company or any other entity or
enterprise referred to in clause (i) of this sentence or any actual, alleged or
suspected act or failure to act by Indemnitee in connection with any obligation
or restriction imposed upon Indemnitee by reason of such status. In addition to
any service at the actual request of the Company, for purposes of this
Agreement, Indemnitee shall be deemed to be serving or to have served at the
request of the Company as a director, officer, employee, member, manager,
trustee or agent of another entity or enterprise if Indemnitee is or was serving
as a director, officer, employee, member, manager, agent, trustee or other
fiduciary of such entity or enterprise and (i) such entity or enterprise is or
at the time of such service was a Controlled Affiliate, (ii) such entity or
enterprise is or at the time of such service was an employee benefit plan (or
related trust) sponsored or maintained by the Company or a Controlled Affiliate,
or (iii) the Company or a Controlled Affiliate (by action of the Board, 

3 

any committee thereof or the Company’s Chief Executive Officer
(“CEO”) (other than as the CEO him or herself)) caused or authorized Indemnitee
to be nominated, elected, appointed, designated, employed, engaged or selected
to serve in such capacity. 

                    “Indemnifiable
Losses” means any and all Losses relating to, arising out of or
resulting from any Indemnifiable Claim; provided, however, that
Indemnifiable Losses shall not include Losses incurred by Indemnitee in respect
of any Indemnifiable Claim (or any matter or issue therein) as to which
Indemnitee shall have been adjudged liable to the Company, unless and only to
the extent that the Delaware Court of Chancery or the court in which such
Indemnifiable Claim was brought shall have determined upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification for
such Expenses as the court shall deem proper.

                    “Independent
Counsel” means a nationally recognized law firm, or a member of a
nationally recognized law firm, that is experienced in matters of Delaware
corporate law and neither presently is, nor in the past five years has been,
retained to represent: (i) the Company (or any subsidiary) or Indemnitee in any
matter material to either such party (other than with respect to matters
concerning the Indemnitee under this Agreement, or of other indemnitees under
similar indemnification agreements) or (ii) any other named (or, as to a
threatened matter, reasonably likely to be named) party to the Indemnifiable
Claim giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.

                    “Losses”
means any and all Expenses, damages, losses, liabilities, judgments, fines,
penalties (whether civil, criminal or other) and amounts paid or payable in
settlement, including, without limitation, all interest, assessments and other
charges paid or payable in connection with or in respect of any of the
foregoing.

                    “Person”
means any individual, entity or group, within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended.

                    “Standard
of Conduct” means the standard for conduct by Indemnitee that is a
condition precedent to indemnification of Indemnitee hereunder against
Indemnifiable Losses relating to, arising out of or resulting from an
Indemnifiable Claim. The Standard of Conduct is (i) good faith and a reasonable
belief by Indemnitee that his action was in or not opposed to the best interests
of the Company and, with respect to any criminal action or proceeding, that
Indemnitee had no reasonable cause to believe that his conduct was unlawful, or
(ii) any other applicable standard of conduct that may hereafter be substituted
under Section 145(a) or (b) of the Delaware General Corporation Law or any
successor to such provision(s). 

          2.     
Indemnification Obligation. Subject only to Section 7 and to the proviso
in this Section, the Company shall indemnify, defend and hold harmless
Indemnitee, to the fullest extent permitted or required by the laws of the State
of Delaware 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,
against any and all Indemnifiable Claims and Indemnifiable Losses; provided,

4 

however, that, except as provided in Section 5,
Indemnitee shall not be entitled to indemnification pursuant to this Agreement
in connection with (i) any Claim initiated by Indemnitee against the Company or
any director or officer of the Company unless the Company has joined in or
consented to the initiation of such Claim, or (ii) the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended. The Company acknowledges that the foregoing
obligation may be broader than that now provided by applicable law and the
Company’s Constituent Documents and intends that it be interpreted consistently
with this Section and the recitals to this Agreement.

          3.      Advancement
of Expenses. Indemnitee shall have the right to advancement by the
Company prior to the final disposition of any Indemnifiable Claim of any and all
actual and reasonable Expenses relating to, arising out of or resulting from any
Indemnifiable Claim paid or incurred by Indemnitee. Without limiting the
generality or effect of any other provision hereof, Indemnitee’s right to such
advancement is not subject to the satisfaction of any Standard of Conduct.
Without limiting the generality or effect of the foregoing, within five business
days after any request by Indemnitee that is accompanied by supporting
documentation for specific reasonable Expenses to be reimbursed or advanced, the
Company shall, in accordance with such request (but without duplication), (a)
pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an
amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such
Expenses; provided that Indemnitee shall repay, without interest, any
amounts actually advanced to Indemnitee that, at the final disposition of the
Indemnifiable Claim to which the advance related, were in excess of amounts paid
or payable by Indemnitee in respect of Expenses relating to, arising out of or
resulting from such Indemnifiable Claim. In connection with any such payment,
advancement or reimbursement, at the request of the Company, Indemnitee shall
execute and deliver to the Company an undertaking, which need not be secured and
shall be accepted without reference to Indemnitee’s ability to repay the
Expenses, by or on behalf of the Indemnitee, to repay any amounts paid, advanced
or reimbursed by the Company in respect of Expenses relating to, arising out of
or resulting from any Indemnifiable Claim in respect of which it shall have been
determined, following the final disposition of such Indemnifiable Claim and in
accordance with Section 7, that Indemnitee is not entitled to indemnification
hereunder. 

          4.      Indemnification
for Additional Expenses. Without limiting the generality or effect of
the foregoing, the Company shall indemnify and hold harmless Indemnitee against
and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to
Indemnitee, within five business days of such request accompanied by supporting
documentation for specific Expenses to be reimbursed or advanced, any and all
actual and reasonable Expenses paid or incurred by Indemnitee in connection with
any Claim made, instituted or conducted by Indemnitee for (a) indemnification or
reimbursement or advance payment of Expenses by the Company under any provision
of this Agreement, or under any other agreement or provision of the Constituent
Documents now or hereafter in effect relating to Indemnifiable Claims, and/or
(b) recovery under any directors’ and officers’ liability insurance policies
maintained by the Company; provided, however, if it is ultimately
determined that the Indemnitee is not entitled to such indemnification,
reimbursement, advance or insurance recovery, as the case may be, then the
Indemnitee shall be obligated to repay any such Expenses to the Company;
provided further, that, regardless in each case of whether Indemnitee
ultimately is determined to be entitled to such indemnification, reimbursement,
advance or insurance recovery, as the case may be, Indemnitee shall return, 

5 

without interest, any such advance of Expenses (or portion
thereof) which remains unspent at the final disposition of the Claim to which
the advance related. 

          5.      Partial
Indemnity. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of any Indemnifiable
Loss but not for all of the total amount thereof, the Company shall nevertheless
indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

          6.      Procedure
for Notification. To obtain indemnification under this Agreement in respect
of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the
Company a written request therefore, including a brief description (based upon
information then available to Indemnitee) of such Indemnifiable Claim or
Indemnifiable Loss. If, at the time of the receipt of such request, the Company
has directors’ and officers’ liability insurance in effect under which coverage
for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the
Company shall give prompt written notice of such Indemnifiable Claim or
Indemnifiable Loss to the applicable insurers in accordance with the procedures
set forth in the applicable policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all Indemnifiable Claims and Indemnifiable Losses in accordance with
the terms of such policies. The Company shall provide to Indemnitee a copy of
such notice delivered to the applicable insurers, substantially concurrently
with the delivery thereof by the Company. The failure by Indemnitee to timely
notify the Company of any Indemnifiable Claim or Indemnifiable Loss shall not
relieve the Company from any liability hereunder unless, and only to the extent
that, the Company did not otherwise learn of such Indemnifiable Claim or
Indemnifiable Loss and to the extent that such failure results in forfeiture by
the Company of substantial defenses, rights or insurance coverage. 

          7.     
Determination of Right to Indemnification.

                    To
the extent that Indemnitee shall have been successful on the merits or otherwise
in defense of any Indemnifiable Claim or any portion thereof or in defense of
any issue or matter therein, including, without limitation, dismissal without
prejudice, Indemnitee shall be indemnified against all Indemnifiable Losses
relating to, arising out of or resulting from such Indemnifiable Claim in
accordance with Section 2 and no Standard of Conduct Determination (as defined
in Section 7(b)) shall be required. 

                    To
the extent that the provisions of Section 7(a) are inapplicable to an
Indemnifiable Claim that shall have been finally disposed of, any determination
of whether Indemnitee has satisfied the applicable Standard of Conduct (a
“Standard of Conduct Determination”) shall be made as follows: (i)
if a Change in Control shall not have occurred, or if a Change in Control shall
have occurred but Indemnitee shall have requested that the Standard of Conduct
Determination be made pursuant to this clause (i), (A) by a majority vote of the
Disinterested Directors, even if less than a quorum of the Board, (B) if such
Disinterested Directors so direct, by a majority vote of a committee of
Disinterested Directors designated by a majority vote of all Disinterested
Directors, or (C) if there are no such Disinterested Directors, or if a majority
of the Disinterested Directors so direct, by Independent Counsel in a written
opinion addressed to the Board, a copy of which shall be delivered to
Indemnitee; and (ii) if a Change in Control shall have occurred and Indemnitee
shall not have requested that the Standard of 

6 

Conduct Determination be made pursuant to clause (i) above, by
Independent Counsel in a written opinion addressed to the Board, a copy of which
shall be delivered to Indemnitee. 

                         If
(i) Indemnitee shall be entitled to indemnification hereunder against any
Indemnifiable Losses pursuant to Section 7(a), (ii) no determination of whether
Indemnitee has satisfied any applicable standard of conduct under Delaware law
is a legally required condition precedent to indemnification of Indemnitee
hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been
determined or deemed pursuant to Section 7(b) to have satisfied the applicable
Standard of Conduct, then the Company shall pay to Indemnitee, within five
business days after the later of (x) the Notification Date in respect of the
Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are
related, out of which such Indemnifiable Losses arose or from which such
Indemnifiable Losses resulted, and (y) the earliest date on which the applicable
criterion specified in clause (i), (ii) or (iii) above shall have been
satisfied, an amount equal to the amount of such Indemnifiable Losses. Nothing
herein is intended to mean or imply that the Company is intending to use Section
145(f) of the Delaware General Corporation Law to dispense with a requirement
that Indemnitee meet the applicable Standard of Conduct where it is otherwise
required by such statute. 

                         If
a Standard of Conduct Determination is required to be, but has not been, made by
Independent Counsel pursuant to Section 7(b)(i), the Independent Counsel shall
be selected by the Board or a committee of the Board, and the Company shall give
written notice to Indemnitee advising him or her of the identity of the
Independent Counsel so selected. If a Standard of Conduct Determination is
required to be, or to have been, made by Independent Counsel pursuant to Section
7(b)(ii), the Independent Counsel shall be selected by Indemnitee, and
Indemnitee shall give written notice to the Company advising it of the identity
of the Independent Counsel so selected. In either case, Indemnitee or the
Company, as applicable, may, within five business days after receiving written
notice of selection from the other, deliver to the other a written objection to
such selection; provided, however, that such objection may be asserted
only on the ground that the Independent Counsel so selected does not satisfy the
criteria set forth in the definition of “Independent Counsel” in Section 1(h),
and the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the Person so selected shall
act as Independent Counsel. If such written objection is properly and timely
made and substantiated, (i) the Independent Counsel so selected may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit and (ii) the non-objecting party
may, at its option, select an alternative Independent Counsel and give written
notice to the other party advising such other party of the identity of the
alternative Independent Counsel so selected, in which case the provisions of the
two immediately preceding sentences and clause (i) of this sentence shall apply
to such subsequent selection and notice. If applicable, the provisions of clause
(ii) of the immediately preceding sentence shall apply to successive alternative
selections. If no Independent Counsel that is permitted under the foregoing
provisions of this Section 7(d) to make the Standard of Conduct Determination
shall have been selected within 30 calendar days after the Company gives its
initial notice pursuant to the first sentence of this Section 7(d) or Indemnitee
gives its initial notice pursuant to the second sentence of this Section 7(d),
as the case may be, either the Company or Indemnitee may petition the Court of
Chancery of the State of Delaware for resolution of any objection which shall
have been made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as 

7 

Independent Counsel of a person or firm selected by the Court
or by such other person as the Court shall designate, and the person or firm
with respect to whom all objections are so resolved or the person or firm so
appointed will act as Independent Counsel. In all events, the Company shall pay
all of the actual and reasonable fees and expenses of the Independent Counsel
incurred in connection with the Independent Counsel’s determination pursuant to
Section 7(b). 

          8.      Cooperation.
Indemnitee shall cooperate with reasonable requests of the Company in connection
with any Indemnifiable Claim and any individual or firm making such Standard of
Conduct Determination, including providing to such Person documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to Indemnitee and reasonably necessary to defend
the Indemnifiable Claim or make any Standard of Conduct Determination without
incurring any unreimbursed cost in connection therewith. The Company shall
indemnify and hold harmless Indemnitee against and, if requested by Indemnitee,
shall reimburse Indemnitee for, or advance to Indemnitee, within five business
days of such request accompanied by supporting documentation for specific costs
and expenses to be reimbursed or advanced, any and all costs and expenses
(including attorneys’ and experts’ fees and expenses) actually and reasonably
incurred by Indemnitee in so cooperating with the Person defending the
Indemnifiable Claim or making such Standard of Conduct Determination.

          9.     
Presumption of Entitlement. Notwithstanding any other provision hereof,
in making any Standard of Conduct Determination, the Person making such
determination shall presume that Indemnitee has satisfied the applicable
Standard of Conduct. 

          10.     
No Other Presumption. For purposes of this Agreement, the termination of
any Claim by judgment, order, settlement (whether with or without court
approval) or conviction, or upon a plea of nolo contendere or its equivalent,
will not create a presumption that Indemnitee did not meet any applicable
Standard of Conduct or that indemnification hereunder is otherwise not
permitted. 

          11.      Non-Exclusivity.
The rights of Indemnitee hereunder will be in addition to any other rights
Indemnitee may have under the Constituent Documents, or the substantive laws of
the Company’s jurisdiction of incorporation, any other contract or otherwise
(collectively, “Other Indemnity Provisions”); provided,
however, that (a) to the extent that Indemnitee otherwise would have any
greater right to indemnification under any Other Indemnity Provision, Indemnitee
will without further action be deemed to have such greater right hereunder, and
(b) to the extent that any change is made to any Other Indemnity Provision which
permits any greater right to indemnification than that provided under this
Agreement as of the date hereof, Indemnitee will be deemed to have such greater
right hereunder. The Company may not, without the consent of Indemnitee, adopt
any amendment to any of the Constituent Documents the effect of which would be
to deny, diminish or encumber Indemnitee’s right to indemnification under this
Agreement. 

          12.      Liability
Insurance and Funding. For the duration of Indemnitee’s service as a
director and/or officer of the Company and for a reasonable period of time
thereafter, which such period shall be determined by the Company in its sole
discretion, the Company shall use commercially reasonable efforts (taking into
account the scope and amount of coverage available 

8 

relative to the cost thereof) to cause to be maintained in
effect policies of directors’ and officers’ liability insurance providing
coverage for directors and/or officers of the Company, and, if applicable, that
is substantially comparable in scope and amount to that provided by the
Company’s current policies of directors’ and officers’ liability insurance. Upon
reasonable request, the Company shall provide Indemnitee or his or her counsel
with a copy of all directors’ and officers’ liability insurance applications,
binders, policies, declarations, endorsements and other related materials. In
all policies of directors’ and officers’ liability insurance obtained by the
Company, Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits, subject to the same limitations, as are
accorded to the Company’s directors and officers most favorably insured by such
policy. Notwithstanding the foregoing, (i) the Company may, but shall not be
required to, create a trust fund, grant a security interest or use other means,
including, without limitation, a letter of credit, to ensure the payment of such
amounts as may be necessary to satisfy its obligations to indemnify and advance
expenses pursuant to this Agreement and (ii) in renewing or seeking to renew any
insurance hereunder, the Company will not be required to expend more than 2.0
times the premium amount of the immediately preceding policy period (equitably
adjusted if necessary to reflect differences in policy periods). 

          13.      Subrogation.
In the event of payment under this Agreement, the Company shall be subrogated to
the extent of such payment to all of the related rights of recovery of
Indemnitee against other Persons (other than Indemnitee’s successors), including
any entity or enterprise referred to in clause (i) of the definition of
“Indemnifiable Claim” in Section 1(f). Indemnitee shall execute all papers
reasonably required to evidence such rights (all of Indemnitee’s reasonable
Expenses, including attorneys’ fees and charges, related thereto to be
reimbursed by or, at the option of Indemnitee, advanced by the Company). 

          14.     
No Duplication of Payments. The Company shall not be liable under this
Agreement to make any payment to Indemnitee in respect of any Indemnifiable
Losses to the extent Indemnitee has otherwise already actually received payment
(net of Expenses incurred in connection therewith) under any insurance policy,
the Constituent Documents and Other Indemnity Provisions or otherwise (including
from any entity or enterprise referred to in clause (i) of the definition of
“Indemnifiable Claim” in Section 1(f)) in respect of such Indemnifiable Losses
otherwise indemnifiable hereunder. 

          15.      Defense
of Claims. Subject to the provisions of applicable policies of directors’
and officers’ liability insurance, if any, the Company shall be entitled to
participate in the defense of any Indemnifiable Claim or to assume or lead the
defense thereof with counsel reasonably satisfactory to the Indemnitee;
provided that if Indemnitee determines, after consultation with counsel
selected by Indemnitee, that (a) the use of counsel chosen by the Company to
represent Indemnitee would present such counsel with an actual or potential
conflict, (b) the named parties in any such Indemnifiable Claim (including any
impleaded parties) include both the Company and Indemnitee and Indemnitee shall
conclude that there may be one or more legal defenses available to him or her
that are different from or in addition to those available to the Company, (c)
any such representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing, or (d) Indemnitee has
interests in the claim or underlying subject matter that are different from or
in addition to those of other Persons against whom the Claim has been made or
might reasonably be expected to be 

9 

made, then Indemnitee shall be entitled to retain separate
counsel (but not more than one law firm plus, if applicable, local counsel in
respect of any particular Indemnifiable Claim for all indemnitees in
Indemnitee’s circumstances) at the Company’s expense. The Company shall not be
liable to Indemnitee under this Agreement for any amounts paid in settlement of
any threatened or pending Indemnifiable Claim effected without the Company’s
prior written consent. The Company shall not, without the prior written consent
of the Indemnitee, effect any settlement of any threatened or pending
Indemnifiable Claim which the Indemnitee is or could have been a party unless
such settlement solely involves the payment of money and includes a complete and
unconditional release of the Indemnitee from all liability on any claims that
are the subject matter of such Indemnifiable Claim. Neither the Company nor
Indemnitee shall unreasonably withhold its consent to any proposed settlement;
provided that Indemnitee may withhold consent to any settlement that does
not provide a complete and unconditional release of Indemnitee. 

          16.     
Mutual Acknowledgment. Both the Company and the Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company may be
required in the future to undertake to the Securities and Exchange Commission to
submit the question of indemnification to a court in certain circumstances for a
determination of the Company’s right under public policy to indemnify Indemnitee
and, in that event, the Indemnitee’s rights and the Company’s obligations
hereunder shall be subject to that determination. 

          17.     
Successors and Binding Agreement. 

                    This
Agreement shall be binding upon and inure to the benefit of the Company and any
successor to the Company, including, without limitation, any Person acquiring
directly or indirectly all or substantially all of the business or assets of the
Company whether by purchase, merger, consolidation, reorganization or otherwise
(and such successor will thereafter be deemed the “Company” for purposes of this
Agreement), but shall not otherwise be assignable or delegatable by the Company.

                    This
Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, heirs,
distributees, legatees and other successors.

                    This
Agreement is personal in nature and neither of the parties hereto shall, without
the consent of the other, assign or delegate this Agreement or any rights or
obligations hereunder except as expressly provided in Sections 17(a) and 17(b).
Without limiting the generality or effect of the foregoing, Indemnitee’s right
to receive payments hereunder shall not be assignable, whether by pledge,
creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will or by the laws of descent and distribution, and, in the event
of any attempted assignment or transfer contrary to this Section 17(c), the
Company shall have no liability to pay any amount so attempted to be assigned or
transferred. 

          18.      Notices.
For all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to be
given 

10 

hereunder must be in writing and shall be deemed to have been
duly given when hand delivered or dispatched by electronic facsimile
transmission (with receipt thereof orally confirmed), or one business day after
having been sent for next-day delivery by a nationally recognized overnight
courier service, addressed to the Company (to the attention of the Secretary of
the Company) and to Indemnitee at the applicable address shown on the signature
page hereto, or to such other address as any party may have furnished to the
other in writing and in accordance herewith, except that notices of changes of
address will be effective only upon receipt. 

          19.      Governing
Law. The validity, interpretation, construction and performance of
this Agreement shall be governed by and construed in accordance with the
substantive laws of the State of Delaware, without giving effect to the
principles of conflict of laws of such State. The Company and Indemnitee each
hereby irrevocably consent to the jurisdiction of the Chancery Court of the
State of Delaware for all purposes in connection with any action or proceeding
which arises out of or relates to this Agreement, waive all procedural
objections to suit in that jurisdiction, including, without limitation,
objections as to venue or inconvenience, agree that service in any such action
may be made by notice given in accordance with Section 18 and also agree that
any action instituted under this Agreement shall be brought only in the Chancery
Court of the State of Delaware. 

          20.     
Validity. If any provision of this Agreement or the application of any
provision hereof to any Person or circumstance is held invalid, unenforceable or
otherwise illegal, the remainder of this Agreement and the application of such
provision to any other Person or circumstance shall not be affected, and the
provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent, and only to the extent, necessary to make it
enforceable, valid or legal. In the event that any court or other adjudicative
body shall decline to reform any provision of this Agreement held to be invalid,
unenforceable or otherwise illegal as contemplated by the immediately preceding
sentence, the parties thereto shall take all such action as may be necessary or
appropriate to replace the provision so held to be invalid, unenforceable or
otherwise illegal with one or more alternative provisions that effectuate the
purpose and intent of the original provisions of this Agreement as fully as
possible without being invalid, unenforceable or otherwise illegal. 

          21.     
Miscellaneous. No provision of this Agreement may be waived, modified or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by Indemnitee and the Company. No waiver by either party hereto at any
time of any breach by the other party hereto or compliance with any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been made by
either party that are not set forth expressly in this Agreement. 

          22.      Certain
Interpretive Matters. Unless the context of this Agreement otherwise
requires, (1) “it” or “its” or words of any gender include each other gender,
(2) words using the singular or plural number also include the plural or
singular number, respectively, (3) the terms “hereof,” “herein,” “hereby” and
derivative or similar words refer to this entire Agreement, (4) the terms
“Article,” “Section,” “Annex” or “Exhibit” refer to the specified Article,
Section, Annex or Exhibit of or to this Agreement, (5) the terms “include,”
“includes” and “including” 

11 

will be deemed to be followed by the words “without limitation”
(whether or not so expressed), and (6) the word “or” is disjunctive but not
exclusive. Whenever this Agreement refers to a number of days, such number will
refer to calendar days unless business days are specified and whenever action
must be taken (including the giving of notice or the delivery of documents)
under this Agreement during a certain period of time or by a particular date
that ends or occurs on a non-business day, then such period or date will be
extended until the immediately following business day. As used herein,
“business day” means any day other than Saturday, Sunday or a
United States federal holiday. 

          23.      Entire
Agreement. This Agreement constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, between the
parties hereto with respect to the subject matter of this Agreement. Any prior
agreements or understandings between the parties hereto with respect to
indemnification are hereby terminated and of no further force or effect. This
Agreement is not the exclusive means of securing indemnification rights of
Indemnitee and is in addition to any rights Indemnitee may have under any
Constituent Documents. 

          24.     
Counterparts. This Agreement may be executed in one or more counterparts,
each of which will be deemed to be an original but all of which together shall
constitute one and the same agreement. 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

12 

          IN
WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly
authorized representative to execute this Agreement as of the date first above
written. 

VOLCAN HOLDINGS, INC. 

 

By:______________________________________
     
Name: Sholom Feldman 
      Title: Secretary 

 

INDEMNITEE: 

__________________________________________
Name:

Address:
__________________________________

__________________________________________

__________________________________________

Signature Page to Director and Officer Indemnification
Agreement 

13Volcan Holdings, Inc.: Exhibit 10.4 - Prepared by TNT Filings Inc.

Management Services Agreement 

 

Volcan Australia Corporation Pty
Ltd 

and 

Australian Gemstone Mining Pty
Ltd 

 

 

 

 

 

Level 14, Australia Square 

264-278 George Street 

SYDNEY NSW 2000 

DX 129 SYDNEY 

ABN 37 246 549 189 

Tel:         (02) 9334 8555 

Fax:         1300 369 656
www.hwl.com.au 
Ref:
PJS:SS:83028 

Table of Contents 

  	1. 	Definitions and interpretation 	1 
	  	1.1	Definitions 	1 
	  	1.2	Interpretation 	3 
	  	1.3	Parties 	4 
	2. 	Engagement 	4 
	3. 	Services 	4 
	4. 	Promotion 	5 
	5. 	Duties of the Manager 	5 
	6. 	Powers of the Manager 	5 
	7. 	Service Fee 	7 
	8. 	Expenses 	7 
	  	8.1	Expenses to be paid by the Manager 	7 
	  	8.2	Expenses to be paid by the Company 	7 
	  	8.3	Invoices 	8 
	  	8.4	Payment of invoices 	8 
	9. 	Insurance 	8 
	10. 	Liability and indemnity 	9 
	  	10.1	Indemnity by the Company 	9 
	  	10.2	Indemnity by the Manager 	9 
	  	10.3	Limitation of liability of the Manager 	9 
	  	10.4	Limitation of liability 	9 
	  	10.5	Implied terms 	9 
	11. 	Confidential Information 	10 
	12. 	Intellectual Property 	10 
	  	12.1	Entitlement to Intellectual Property 	10 
	  	12.2	Consents and waivers 	10 
	13. 	Termination of Agreement 	10 
	  	13.1	Restriction on termination 	10 
	  	13.2	Immediate termination by the Company 	11 
	  	13.3	Immediate termination by the Manager 	11 
	  	13.4	By the Company with notice 	11 
	  	13.5	By the Manager 	11 
	  	13.6	Termination in respect of the Key Persons 	11 

	14. 	Obligations on termination 	11 
	15. 	Assignment 	12 
	16. 	Relationship of the parties 	12 
	17. 	Personnel 	12 
	18. 	Warranties 	13 
	19. 	Notices 	13 
	  	19.1	In writing 	13 
	  	19.2	Forms of Notice 	13 
	  	19.3	Certificate 	13 
	  	19.4	Deemed receipt 	13 
	  	19.5	Confirmation of receipt 	14 
	  	19.6	Recipient to confirm receipt 	14 
	  	19.7	Recipient 	14 
	  	19.8	Addresses for service 	14 
	20. 	GST 	15 
	  	20.1	Definitions and interpretation 	15 
	  	20.2	Consideration exclusive of GST 	15 
	  	20.3	Consideration 	15 
	  	20.4	Tax Invoice 	15 
	  	20.5	Payments 	15 
	  	20.6	Adjustment Event 	15 
	21. 	Entire Agreement 	16 
	22. 	Severance 	16 
	23. 	Waiver 	16 
	24. 	Variation of Agreement 	16 
	25. 	Counterparts 	16 
	26. 	Legal costs and stamp duty 	16 
	27. 	Governing Law 	17 
	 Schedule 1 	18 

Management Services Agreement

	Date 	July 1, 2008
	  	  
	Parties 	  
	  	  
	 	Volcan Australia Corporation Pty Ltd ACN 131
      553 341 of Level 34, 50 Bridge Street, Sydney, New South Wales,
      Australia 
	  	(Company) 
	  	  
	 	Australian Gemstone Mining Pty Ltd ACN 073
      120 591 of 67 Penkivil Street, Bondi, New South Wales, Australia

	  	  
	  	(Manager) 
	  	  
	Background 	  
	  	  
	A. 	
      The Company carries on the Business. 

	 	
       

	B. 	
      The Manager has particular skill, experience and
      expertise in providing management services including executive,
      administrative, corporate compliance, accounting and secretarial services
      and geological and technical expertise. 

	 	
       

	C. 	
      The Company wishes to retain the Manager to provide
      management services to the Company. 

	 	
       

	D. 	
      The Key Persons are employees of the Manager. 

	 	
       

	E. 	
      The Manager has, at the request of the Company, agreed to
      provide the Services and make the Key Persons available to the Company on
      the terms of this Agreement. 

	 	 

Agreement 

	1. 	
      Definitions and
interpretation

	1.1 	
      Definitions

	 	 
		
      In this Agreement, unless the context indicates a
      contrary intention:

	 	 
		
      Agreement means this agreement, the Schedules and
      Annexures attached to this agreement and any document or documents
      supplemental to this agreement;

	 	 
		
      Board means the board of directors of the Company
      from time to time;

	Management
      Services Agreement 	Home Wilkinson Lowry
  

Business means the business
described in item 2 of Schedule 1 and any related services and ancillary
businesses carried on by the Company from time to time; 

Business Day means a day on
which banks are open for business in Sydney, Australia, excluding a Saturday,
Sunday or a Jewish or public holiday; 

Commencement Date means the date
referred to in item 1 of Schedule 1; 

Company means Volcan Australia
Corporation Pty Ltd ACN 131 553 341; 

Company Property means all of
the Company's estate, right, title and interest in, to, under or derived from
the assets and undertaking of the Company both present and future and wherever
situate, and whether real or personal including without limitation Land; 

Confidential Information means
information, including any of the following information (whenever it was
obtained) in relation to the Company’s: 

	 	(a) 	
      Business, operations or strategies;

	 	 	 
	 	(b) 	
      the terms of this Agreement;

	 	 	 
	 	(c) 	
      information designated as confidential by the
    Company;

	 	 	 
	 	(d) 	
      information acquired by the Manager solely by virtue of
      the provisions of this Agreement;

	 	 	 
	 	(e) 	
      actual or prospective customers, clients or
      competitors.

Information is not confidential in any
of the following circumstances: 

	 	(f) 	
      it is in the public domain, unless it came into the
      public domain by a breach of confidentiality;

	 	 	 
	 	(g) 	
      it is already known by the other person at the time this
      Agreement is entered into; or

	 	 	 
	 	(h) 	
      it is obtained lawfully from a third party without any
      breach of confidentiality;

Corporations Act means the
Corporations Act 2001 (Cth); 

Insolvency Event means, in
relation to a party: 

	 	(a) 	
      a receiver, receiver and manager, trustee, administrator,
      other controller (as defined in the Corporations Act) or similar official
      is appointed over any of the assets or undertakings of the
party;

	 	 	 
	 	(b) 	
      a party suspends payment of its debts
generally;

	 	 	 
	 	(c) 	
      a party is or becomes unable to pay its debts as and when
      they fall due or is or becomes unable to pay its debts or is presumed to
      be insolvent within the meaning of the Corporations Act;

	 	 	 
	 	(d) 	
      a party enters into or resolves to enter into any
      arrangement, composition or compromise with, or assignment for the benefit
      of, its creditors, or any class of them;

	 	 	 
	 	(e) 	
      a party ceases to carry on business or threatens to cease
      to carry on business;

	 	 	 
	 	(f) 	
      a resolution is passed or any steps are taken to appoint,
      or to pass a resolution to appoint, an administrator;
or

	 	Page 2
    

	Management Services
      Agreement 	Home Wilkinson Lowry 

	 	(g) 	
      an application or order is made for the winding up or
      dissolution of a party, or a resolution is passed or any steps are taken
      to pass a resolution for the winding up or dissolution of a party,
      otherwise than for the purpose of an amalgamation or restructuring that
      has the prior written consent of the other party;

Intellectual Property means:

	 	(a) 	
      copyright;

	 	 	 
	 	(b) 	
      all rights conferred under statute, common law or equity
      in relation to inventions (including patents);

	 	 	 
	 	(c) 	
      registered and unregistered trademarks;

	 	 	 
	 	(d) 	
      registered and unregistered designs;

	 	 	 
	 	(e) 	
      circuit layouts;

	 	 	 
	 	(f) 	
      Confidential Information; and

	 	 	 
	 	(g) 	
      all other agreed rights resulting from intellectual
      activity in the industrial and mining fields;

Key Persons means each of: 

	 	(a) 	
      Pnina Feldman

	 	 	 
	 	(b) 	
      Sholom Dovber Feldman,

	 	 	 
	 	(c) 	
      Simon Robert Pecover; and

	 	 	 
	 	(d) 	
      Robert Coenraads

		
      and such other person as agreed in writing between the
      parties, and Key Person means any one of them;

	 	 
		
      Land means all rights, estates and interests
      (whether freehold or leasehold) and including mining tenements now or in
      the future owned by the Company in any real property and all buildings,
      fences, structures, plan, machinery, fixtures, tailings and equipment now
      or in the future affixed to such real property;

	 	 
		
      Manager means Australian Gemstone Mining Pty Ltd
      ACN 073 120 591 and includes the employees and agents of the Manager and
      any other persons duly authorised to act on its behalf in relation to the
      Business;

	 	 
		
      Service Fee means the fee set out in item 4 of
      Schedule 1; and

	 	 
		
      Services means all duties and responsibilities to
      be performed and carried out by the Manager in relation to the Business as
      reasonably required by the Company and agreed to under the terms of this
      Agreement, and as set out in item 3 of Schedule 1.

	 	 
	1.2 	
      Interpretation

	 	 
		
      In this Agreement unless the context requires
      otherwise:

	 	(a) 	
      headings are included for convenience only and do not
      affect interpretation;

	 	 	 
	 	(b) 	
      a reference to a document includes a reference to that
      document as amended, novated, supplemented, varied or
  replaced;

	 	Page 3

	Management Services
      Agreement 	Home Wilkinson Lowry 

	 	(c) 	
      a reference to a part, clause, party, annexure, exhibit
      or Schedule is a reference to an item of that type in this Agreement and
      includes a reference to the provisions or terms of that part, clause,
      Annexure, exhibit or Schedule;

	 	 	 
	 	(d) 	
      a reference to a party to this document includes the
      party’s successors and permitted assigns and includes any person to whom
      this Agreement is novated;

	 	 	 
	 	(e) 	
      reference to $, Dollars or dollars is a reference to the
      lawful tender for the time being and from time to time of the Commonwealth
      of Australia;

	 	 	 
	 	(f) 	
      a covenant, representation, warranty or an agreement
      between more than one person binds them jointly and severally;

	 	 	 
	 	(g) 	
      a provision of this Agreement is not to be construed
      against a party solely on the ground that the party is responsible for the
      preparation of this Agreement or a particular provision;

	 	 	 
	 	(h) 	
      a reference to liquidation includes appointment of an
      administrator, compromise, arrangement, merger, amalgamation,
      reconstruction, winding up, dissolution, assignment for the benefit of
      creditors, scheme composition or arrangement of creditors, insolvency,
      bankruptcy or any similar procedure or if applicable changes in the
      constitution of a partnership or the death of a person; and

	 	 	 
	 	(i) 	
      a reference to a body which is not a party to this
      Agreement which ceases to exist or whose power or function is transferred
      to another body, is a reference to the body which replaces or
      substantially succeeds to the power or function of the first
  body.

	1.3 	
      Parties

	 	 	 
		(a) 	
      An obligation, representation or warranty in favour of
      more than one person is for the benefit of them separately and
    jointly.

	 	 	 
		(b) 	
      A party which is a trustee is bound both personally and
      in its capacity as a trustee.

	 	 	 
	2. 	
      Engagement

	 	 	 
		(a) 	
      The Company engages the Manager to provide the Services
      to the Company as an independent contractor on the terms of this
      Agreement, and the Manager accepts the engagement.

	 	 	 
		(b) 	
      The engagement starts on the Commencement Date and shall
      continue until terminated in accordance with clause 13.

	 	 	 
	3. 	
      Services

	 	 	 
		(a) 	
      The Manager shall, during the term of this Agreement,
      provide or procure the provision of the Services to or for the Company to
      the extent and at the times reasonably requested by the Company during
      normal business hours.

	 	 	 
		(b) 	
      During the term of this Agreement the Manager shall
      supply the Services by retaining the Key Persons to provide the Services
      to the Company.

	 	 	 
		(c) 	
      The parties may agree from time to time to add or remove
      Services, and from the date of that agreement, Schedule 1 shall be amended
      accordingly.

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	Management Services
      Agreement 	Home Wilkinson Lowry 

	4. 	
      Promotion

	 	 
		
      The Manager shall use its best efforts and shall procure
      that the Key Persons use their best efforts to promote and enhance the
      Business and the interests and reputation of the Company and must not do
      anything which may injure the Business or the Company’s
  reputation.

	 	 
	5. 	
      Duties of the Manager

	 	(a) 	
      The Manager shall:

	 	 	 	 	 
	 		(i) 	
      act in accordance with the directions of the Board of the
      Company which may from time to time in writing vary or override the
      obligations, powers and authorities of the Manager;

	 	 	 	 	 
	 		(ii) 	
      procure that the Services are carried out:

	 	 	 	 	 
	 			(A) 	
      diligently and competently;

	 	 	 	 	 
	 			(B) 	
      expeditiously;

	 	 	 	 	 
	 			(C) 	
      in accordance with all laws and requirements of any
      government or government agency; and

	 	 	 	 	 
	 			(D) 	
      to the professional standard of skill and care to be
      reasonably expected from a person engaged in providing the
  Services;

	 	 	 	 	 
	 		(iii) 	
      devote the time and attention to the interests of the
      Company necessary to discharge effectively its duties to the Company under
      this Agreement;

	 	 	 	 	 
	 		(iv) 	
      honestly discharge its duties in the course of providing
      the Services to the Company;

	 	 	 	 	 
	 		(v) 	
      comply in a timely manner with all reasonable requests of
      the Company or its representatives in connection with its duties and
      responsibilities under this Agreement; and

	 	 	 	 	 
	 		(vi) 	
      provide the Company with any information it reasonably
      requires from time to time.

	 	 	 	 	 
	 	(b) 	
      The Manager must keep adequate books and records in
      sufficient detail to record the Services provided and retain such books
      and records for a period of six years after the termination or expiration
      of this Agreement. On request by the Company, the Manager must provide the
      Company with reasonable access during business hours to examine and copy
      such books and records.

	6. 	
      Powers of the Manager

	 	 	 
		
      Subject to clause 5(a)(i), the Manager in the performance
      of its obligations under this Agreement shall have the power and
      authority, in Australia or elsewhere, to do all things necessary or
      convenient to be done for or in connection with, or incidental to the
      provision of the Services to the Company including without limitation, the
      power and authority:

	 	 	 
		(a) 	
      to pay out of the Company's money all professional
      advisers to the Company (including solicitors and accountants), managers,
      clerks and other servants employed by the
Company;

	 	Page 5

	Management Services
      Agreement 	Home Wilkinson Lowry 

	 	(b) 	
      to incur on behalf of the Company all expenses as the
      Manager considers reasonable and necessary and which would normally be
      expected to be incurred in the normal course of managing the Business
      including the cost of printing stationery, insurances, legal costs,
      postage and other general office costs which would normally be expended in
      the course of business;

	 	 	 
	 	(c) 	
      to enter into possession and take control of the Company
      Property;

	 	 	 
	 	(d) 	
      to lease, let or hire or dispose of the Company
      Property;

	 	 	 
	 	(e) 	
      to grant options over the Company Property on such
      conditions as the Manager thinks fit;

	 	 	 
	 	(f) 	
      to borrow any money which may be required for any of the
      purposes mentioned in this clause 6 in the name of the Company or
      otherwise and secure any moneys so borrowed by mortgage or charge over the
      Company Property or any part of it provided however that the Manager shall
      not be bound to enquire as to the necessity or propriety of any such
      borrowing nor be responsible for the misapplication or non- application of
      any moneys so borrowed;

	 	 	 
	 	(g) 	
      to insure the whole or any party of the Company Property
      which is of an insurable nature against loss or damage by fire or other
      risks in such sums as the Manager shall think fit;

	 	 	 
	 	(h) 	
      to repair, renew or enlarge the Company
  Property;

	 	 	 
	 	(i) 	
      to convert the Company Property into money;

	 	 	 
	 	(j) 	
      to carry on any business of the Company;

	 	 	 
	 	(k) 	
      to take on lease or on hire, or to acquire, any property
      necessary or convenient in connection with the carrying on of a business
      of the Company;

	 	 	 
	 	(l) 	
      to sell or concur in selling or otherwise dispose of
      absolutely or conditionally all or any part of the Company Property either
      by public auction or private treaty or by tender for cash or on credit and
      either in one lot or in parcels and either with or without special
      conditions or stipulations as to title or time or mode of payment of
      purchase money or otherwise and with power to allow the whole or any part
      of the purchase money to remain on mortgage over the property sold or over
      any other security or to remain owing without any security and upon such
      other terms and conditions as the Manager may consider expedient without
      being responsible for any loss occasioned thereby and with full power to
      buy in and rescind or vary any contract for sale and resell without being
      responsible for loss and to compel the specific performance of any
      contract by suite in equity or otherwise and to execute assurances of all
      or any part of the mortgage property in the name and on behalf of the
      Company or otherwise and to do all other acts and things for completing
      any such sale which the Manager may deem necessary;

	 	 	 
	 	(m) 	
      to sever fixtures belonging to the Company and sell them
      apart from any other part of the Company Property;

	 	 	 
	 	(n) 	
      to make any arrangement or compromise which the Manager
      shall think expedient in the interests of the Company;

	 	 	 
	 	(o) 	
      to carry out and enforce specific performance of or
      otherwise obtain the benefit of all contracts entered into or held by the
      Company or entered into in exercise of the powers or authorities hereby
      conferred;

	 	 	 
	 	(p) 	
      to execute any document, bring or defend any proceedings
      or do any other act or thing in the name of and on behalf of the
      Company;

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	Management Services
      Agreement 	Home Wilkinson Lowry 

	 	(q) 	
      to draw, accept, make and endorse a bill of exchange or
      promissory note on behalf of the Company;

	 	 	 
	 	(r) 	
      to use a seal of the Company;

	 	 	 
	 	(s) 	
      to engage or discharge employees on behalf of the
      Company;

	 	 	 
	 	(t) 	
      to appoint a solicitor, accountant or other
      professionally qualified person to assist the Manager;

	 	 	 
	 	(u) 	
      to appoint an agent to do any business that the Manager
      is unable to do, or that it is unreasonable to expect the Manager to do,
      in person;

	 	 	 
	 	(v) 	
      where a debt or liability is owed to the Company, to
      prove the debt or liability in a bankruptcy, insolvency or winding up, and
      in connection therewith, to receive dividends and to assent to a proposal
      for a composition or a scheme or arrangement;

	 	 	 
	 	(w) 	
      to make or defend an application for the winding up of
      the Company;

	 	 	 
	 	(x) 	
      to settle, arrange, compromise and submit to arbitration
      any accounts, claims, questions or disputes whatsoever which may arise in
      connection with the business of the Company or in respect of the Company
      Property or in any way relating to this Agreement and to execute releases
      or other discharges in relation to those matters; and

	 	 	 
	 	(y) 	
      to do or cause to be done all such acts and things
      without limitation as such Manager shall think expedient in the interests
      of the Company.

	7. 	
      Service Fee

	 	 	 
		(a) 	
      In consideration for the Services provided by the
      Manager, the Company shall pay the Service Fee to the Manager within 30
      Business Days of receipt of an invoice.

	 	 	 
		(b) 	
      The Manager must issue an invoice to the Company
      monthly.

	 	 	 
		(c) 	
      Payments must be made to the Manager at its place of
      business or in any other manner that the Manager reasonably
    nominates.

	 	 	 
		(d) 	
      If the parties agree to alter the Services in accordance
      with clause 3(c) as the case may be, the parties may agree to alter the
      Service Fee, and from the date of that agreement, Schedule 1 shall be
      amended accordingly.

	 	 	 
	8. 	
      Expenses

	 	 	 
	8.1 	
      Expenses to be paid by the Manager

	 	 	 
		
      Subject to this Agreement, the Manager shall be
      responsible for all the Manager's expenses in carrying out the Services,
      including salaries, wages, benefits to employees, insurance
      superannuation, worker's compensation, administrative, managerial, and
      secretarial expenses, communications expenses, and all other
    expenses.

	 	 	 
	8.2 	
      Expenses to be paid by the Company

	 	 	 
		(a) 	
      If travel is required, the Manager shall be paid all
      reasonable travel expenses.

	 	 	 
		(b) 	
      All air travel will be by Qantas business class travel or
      equivalent

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	 	(c) 	
      The Company shall pay to the Manager all other reasonable
      expenses which the Company approves in
writing.

	8.3 	
      Entitlements

	 	 	 
		
      The Company shall provide the Manager with:

	 	 	 
		(a) 	
      fully maintained mobile phones for use by the Key
      Persons;

	 	 	 
		(b) 	
      50% of the cost of reasonable, fully maintained Company
      cars and fuel allowances to be provided to the Key Persons for Company and
      private use. The Company agrees that the car to be provided for use by the
      Head Geologist will be a new or late model, Toyota Landcruiser GXL 4WD or
      equivalent.

	 	 	 
	8.4 	
      Invoices

	 	 	 
		
      The Manager must provide invoices to the Company in
      relation to approved expenses.

	 	 	 
	8.5 	
      Payment of invoices

	 	 	 
		
      The Company shall make payment to the Manager at its
      place of business or in any other manner that the Manager reasonably
      nominates within 30 Business Days of receipt of an
  invoice.

	9. 	
      Insurance

	 	 	 	 
		(a) 	
      The Manager shall maintain in place for the term of the
      Agreement the following insurances:

	 	 	 	 
			(i) 	
      professional indemnity;

	 	 	 	 
			(ii) 	
      public liability for an amount not less than $5,000,000;
      and

	 	 	 	 
			(iii) 	
      worker's compensation and worker's common law liability
      for each state and country where the Services are to be
  undertaken.

	 	 	 	 
		(b) 	
      The Company shall maintain in place for the term of the
      Agreement an appropriate level of coverage for the Key Persons under the
      Company’s death and disability insurance.

	 	 	 	 
		(c) 	
      The Manager shall ensure that the Company is named as
      co-insured on its insurance policies or that the Manager's insurers waive
      the rights of subrogation against the Company.

	 	 	 	 
		(d) 	
      Upon written request, the Manager must provide to the
      Company certificates of currency or copies of polices for each insurance
      policy referred to in clause 9(a).

	 	 	 	 
		(e) 	
      The Manager shall be entitled to be reimbursed by the
      Company for the cost of effecting the insurances referred to in clause
      9(a).

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	10. 	
      Liability and indemnity

	 	 	 
	10.1 	
      Indemnity by the Company

	 	 	 
		
      The Company shall at all times indemnify and keep
      indemnified the Manager from and against any loss (including reasonable
      legal costs and expenses) or liability incurred or suffered by the Manager
      or arising from any claim, demand, suit, action or proceeding by any
      person against the Manager only where such loss or liability arose out of,
      in connection with or in respect of a wilful or grossly negligent act or
      omission by the Company.

	 	 	 
	10.2 	
      Indemnity by the Manager

	 	 	 
		
      The Manager shall at all times indemnify and keep
      indemnified the Company from and against any loss (including reasonable
      legal costs and expenses) or liability incurred or suffered by the Company
      or arising from any claim, demand, suit, action or proceeding by any
      person against the Company only where such loss or liability arose out of,
      in connection with or in respect of a wilful or grossly negligent act or
      omission by the Manager.

	 	 	 
	10.3 	
      Limitation of liability of the Manager

	 	 	 
		
      The Manager, its officers, employees and agents shall not
      be liable to the Company for any loss, expense, claim or liability which
      may arise out of the performance of the Services, except to the extent
      that such loss, expense, claim or liability arises out of, in connection
      with or in respect of a wilful or grossly negligent act or omission by the
      Manager, its officers, employees or agents.

	 	 	 
	10.4 	
      Limitation of liability

	 	 	 
		(a) 	
      Any liability of the Manager for damages or other forms
      of monetary relief for matters related to, connected with or arising out
      of this Agreement regardless of the cause of action, whether in contract,
      tort (including, without limitation, negligence) or for breach of any
      statute or any other legal or equitable obligation is limited to the
      extent permitted by applicable law to the amount due to be paid by the
      Company to the Manager pursuant to this Agreement in the year of the
      occurrence of the cause for such damages or other forms of monetary
      relief.

	 	 	 
		(b) 	
      In no event shall the Manager be liable for lost profits
      or special, incidental, consequential damages of the Company in connection
      with this Agreement, however arising.

	 	 	 
	10.5 	
      Implied terms

	 	 	 
		
      Where any statute implies into this Agreement any term,
      and that statute avoids or prohibits provisions in a contract excluding,
      restoring or modifying the application of or exercise of, or liability
      under such term, such implied terms as are not excludable will be deemed
      to be included in this Agreement.

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	11. 	
      Confidential Information

	 	 
		
      During the term of this Agreement and following the term,
      howsoever arising,

	 	(a) 	
      the Manager:

	 	 	 	 
	 		(i) 	
      shall keep confidential all Confidential Information and
      shall not, without the prior written consent of the Company, (except as
      required by law) disclose any of the Confidential Information to any
      person;

	 	 	 	 
	 		(ii) 	
      shall surrender to the Company all original and copied
      documents in their possession, custody or control belonging to the Company
      or relating to the Business of the Company together with any other
      property belonging to the Company in the event of the termination of this
      Agreement;

	 	 	 	 
	 		(iii) 	
      must not discuss the Company, the Group, or their
      respective activities with any person except those to whom they are
      entitled to reveal the Confidential Information under this
    Agreement;

	 	 	 	 
	 		(iv) 	
      must observe the laws and regulations which may apply in
      the jurisdiction where the Company is located and which relate to any
      obligations on the Company to keep the affairs of its customers
      confidential; and

	 	 	 	 
	 		(v) 	
      acknowledges that damages may be an inadequate remedy to
      the Company in the event of any breach of this clause 11 occurring, and
      that only injunctive relief or some other equitable remedy might be
      adequate to properly protect the interests of the Company; and

	 	 	 	 
	 	(b) 	
      neither party may make any public or media statement
      concerning this Agreement without the consent of the other
  party.

	12. 	
      Intellectual Property

	 	 
	12.1 	
      Entitlement to Intellectual Property

	 	 
		
      All Intellectual Property rights of any nature in any
      Intellectual Property created by the Manager or the Key Persons during the
      provision of the Services shall vest in the Company upon creation, and the
      Manager shall have no claim to or interest of any nature in such
      Intellectual Property, unless that Intellectual Property was developed as
      a result of prior knowledge of the Manager, whereby if given to the
      Company pursuant to this Agreement, the Company may have free and
      unfettered use for its purposes but will not exclude the Manager from
      using for its purposes.

	 	 
	12.2 	
      Consents and waivers

	 	 
		
      The Manager gives and shall require the Key Persons to
      give all moral rights consents and waivers to enable the Company free and
      unfettered use, amendment and disposal of all copyright material and works
      vested in or assigned to the Company pursuant to clauses 12.1.

	 	 
	13. 	
      Termination of Agreement

	 	 
	13.1 	
      Restriction on termination

	 	 
		
      Subject to the provisions of clause 13.2 and 13.3, this
      Agreement may not be terminated by either party during the 24 month period
      following the Commencement Date.

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	13.2 	
      Immediate termination by the Company

	 	 	 	 
		(a) 	
      The Company may by written notice to the Manager
      terminate this Agreement immediately if:

	 	 	 	 
			(i) 	
      the Manager or any of its directors, officers or servants
      is guilty of gross misconduct in relation to the provisions of the
      Services to the Company;

	 	 	 	 
			(ii) 	
      the Manager suffers an Insolvency Event;

	 	 	 	 
			(iii) 	
      the Key Persons engage in any wilful or gross conduct
      which is likely in the reasonable opinion of the Company to be detrimental
      to the Company; or

	 	 	 	 
			(iv) 	
      the Manager is guilty of any gross default, breach,
      non-observance or non- performance of any of the terms and conditions
      contained in this Agreement.

	 	 	 	 
		(b) 	
      Termination of this Agreement by the Company under clause
      13.2 will be without prejudice to any of its other rights in respect of a
      breach of this Agreement by the Manager.

	 	 	 	 
	13.3 	
      Immediate termination by the Manager

	 	 	 	 
		(a) 	
      The Manager may by written notice to the Company
      terminate this Agreement immediately if:

	 	 	 	 
			(i) 	
      the Company fails to make payment of the Service Fee in
      accordance with this Agreement and the failure continues for seven
      Business Days from the delivery of a written notice by the Manager to the
      Company requesting payment;

	 	 	 	 
			(ii) 	
      the Company suffers an Insolvency Event; or

	 	 	 	 
			(iii) 	
      the Company is guilty of any gross default, breach,
      non-observance or non- performance of any of the terms and conditions
      contained in this Agreement.

	 	 	 	 
		(b) 	
      Termination of this Agreement by the Manager under clause
      13.3 will be without prejudice to any of its other rights in respect of a
      breach of this Agreement by the Company.

	 	 	 	 
	13.4 	
      By the Company with notice

	 	 	 	 
		
      Subject to clause 13.1, the Company may terminate this
      Agreement at any time by giving six months' notice in writing to the
      Manager.

	 	 	 	 
	13.5 	
      By the Manager

	 	 	 	 
		
      Subject to clause 13.1, the Manager may terminate this
      Agreement at any time by giving six months' notice in writing to the
      Company.

	 	 	 	 
	13.6 	
      Termination in respect of the Key
Persons

	 	 	 	 
		
      The parties acknowledge that the termination of the
      services of one of the Key Persons will not automatically terminate the
      services of the other Key Persons.

	14. 	
      Obligations on termination

	 	 
		
      In the event that this Agreement is terminated in
      accordance with clause 13:

	 	(a) 	
      the Manager must immediately cease carrying out the
      Services;

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	 	(b) 	 the Company must immediately pay the Manager all monies
        due and payable to the Manager under or pursuant to this Agreement, including
        the Service Fee, up to the date of termination of this Agreement;

	 	 	 
	 	(c) 	 unless terminated under clause 13.3, neither the Manager
        nor the Key Persons will be entitled to claim from the Company any amounts
        by way of termination of employment, retirement allowance or liquidated
        damages or any other payments as a consequence of termination other than
        amounts then due and payable to the Manager from the Company under this
        Agreement;

	 	 	 
	 	(d) 	 the Company is not entitled to set off any payment due
        from it to the Manager against any monies that may be due from the Manager
        to the Company; and

	 	 	 
	 	(e) 	 the Manager must within 30 days of the termination of
        the Agreement, return to the Company all documentation, security passes,
        keys and any other property of the Company, within the Manager’s
        or the Key Persons' control or possession.

	15. 	
      Assignment

	 	 
		
      The Manager may assign, sub-license or subcontract this
      Agreement or any right or obligation under this Agreement with the prior
      written consent of the Company, which shall not be unreasonably
      withheld.

	 	 
	16. 	
      Relationship of the
parties

	 	(a) 	
      The Manager is not an agent or employee of the Company
      for any purpose but is an independent contractor.

	 	 	 	 
	 	(b) 	
      The Manager must:

	 	 	 	 
	 		(i) 	
      act entirely on its own behalf; and

	 	 	 	 
	 		(ii) 	
      not make any representation or give any warranty that it
      is acting as an agent for or employee of the Company in performing the
      services under this Agreement.

	 	 	 	 
	 	(c) 	
      Nothing in this Agreement:

	 	 	 	 
	 		(i) 	
      constitutes the Manager is in any way the partner of or a
      joint venturer with the Company for any purpose;

	 	 	 	 
	 		(ii) 	
      shall prevent or be deemed to prevent the Manager
      providing or agreeing to provide the same or similar services to any other
      person or entity as it agrees to provide to the Company or carrying on
      business in any way as a service company; and

	 	 	 	 
	 		(iii) 	
      shall prevent or be deemed to prevent directors and
      employees of the Manager continuing to act as directors of the
    Company.

	17. 	
      Personnel

	 	 	 
		(a) 	
      The Manager must ensure that it complies with all
      obligations relating to payments of employment related taxes or levies
      imposed upon an employer which arise in respect of any Services provided
      under this Agreement or amounts paid to the Manager under this Agreement
      including, without limitation, group tax, payroll tax, superannuation, and
      all other statutory and (where applicable) award
  requirements.

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	 	(b) 	
      Upon request, the Manager must demonstrate that it has
      complied with these obligations.

	18. 	
      Warranties

	 	 	 
		
      The Manager further warrants that:

	 	 	 
		(a) 	
      it shall require the Key Persons to enter into any
      necessary agreements to give effect to the provisions of this Agreement
      including but not limited to the provisions in relation to confidentiality
      and Intellectual Property;

	 	 	 
		(b) 	
      it is adequately covered by the appropriate insurances
      for public liability, worker's compensation and other statutory
      liabilities of an employer; and

	 	 	 
		(c) 	
      it is aware that the Company is relying on these
      warranties and other warranties contained in this
  Agreement.

	19. 	
      Notices

	 	 
	19.1 	
      In writing

	 	 
		
      A notice or other communication connected with this
      Agreement (Notice) has no legal effect unless it is in
    writing.

	 	 
	19.2 	
      Forms of Notice

	 	 
		
      In addition to any other method of service provided by
      law, the Notice may be:

	 	(a) 	
      sent by prepaid registered post to the address for
      service of the addressee, if the address is in Australia and the Notice is
      sent from within Australia;

	 	 	 
	 	(b) 	
      sent by prepaid ordinary mail to the address for service
      of the addressee, if the address is in Australia and the Notice is sent
      from within Australia;

	 	 	 
	 	(c) 	
      sent by prepaid airmail to the address for service of the
      addressee, if the address is outside Australia or if the Notice is sent
      from outside Australia;

	 	 	 
	 	(d) 	
      sent by facsimile to the facsimile number of the
      addressee; or

	 	 	 
	 	(e) 	
      delivered at the address for service of the
    addressee.

	19.3 	
      Certificate

	 	 
		
      A certificate signed by a party giving a Notice or by an
      officer or employee of that party stating the date on which that Notice
      was sent or delivered under clause 19.2 is prima facie evidence of the
      date on which that Notice was sent or delivered.

	 	 
	19.4 	
      Deemed receipt

	 	 
		
      If the Notice is sent or delivered in a manner provided
      by clause 19.2, it must be treated as given to and received by the party
      to which it is addressed:

	 	(a) 	
      if mailed from within Australia to an address in
      Australia, on actual delivery to that address as evidenced by Australia
      Post documentation;

	 	 	 
	 	(b) 	
      if mailed from within Australia to an address in
      Australia, on the second Business Day (at the address to which it is
      mailed) after mailing;

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	 	(c) 	
      if mailed to an address outside Australia or mailed from
      outside Australia, on the fifth Business Day (at the address to which it
      is mailed) after mailing;

	 	 	 
	 	(d) 	
      if sent by facsimile before 5.00 pm on a Business Day at
      the place of receipt, on the day it is sent and otherwise on the next
      Business Day at the place of receipt; or

	 	 	 
	 	(e) 	
      if otherwise delivered before 5.00 pm on a Business Day
      at the place of delivery, upon delivery, and otherwise on the next
      Business Day at the place of delivery.

	19.5 	
      Confirmation of receipt

	 	 
		
      Despite clause 19.4(d), a facsimile is not treated as
      given or received unless following transmission the addressee notifies the
      sender that the facsimile has been received in full and in legible
      form.

	 	 
	19.6 	
      Recipient to confirm receipt

	 	 
		
      A party which receives a Notice by facsimile must, if
      requested by the sender, immediately notify the sender of its
    receipt.

	 	 
	19.7 	
      Recipient

	 	(a) 	
      A party notifying the sender of receipt of a facsimile
      must be treated as having notified the sender that it was received in full
      and in legible form unless the party at the same time notifies the sender
      that it was not received in full or not in legible form.

	 	 	 	 
	 	(b) 	
      If a Notice is served by a method which is provided by
      law but is not provided by clause 19.2, and the service takes place after
      5.00 pm on a Business Day, or on a day which is not a Business Day, it
      must be treated as taking place on the next Business Day.

	 	 	 	 
	 	(c) 	
      A Notice sent or delivered in a manner provided by clause
      19.2 must be treated as validly given to and received by the party to
      which it is addressed even if:

	 	 	 	 
	 		(i) 	
      the addressee has been liquidated or deregistered or is
      absent from the place at which the Notice is delivered or to which it is
      sent; or

	 	 	 	 
	 		(ii) 	
      the Notice is returned
unclaimed.

	19.8 	
      Addresses for service

	 	(a) 	
      The Company's address for service and facsimile number
      are as set out in item 5 of Schedule 1.

	 	 	 
	 	(b) 	
      The Manager's address for service and facsimile number
      are as set out in item 6 of Schedule 1.

	 	 	 
	 	(c) 	
      A party may change its address for service or facsimile
      number by giving Notice of that change to each other party.

	 	 	 
	 	(d) 	
      If the party to which a Notice is intended to be given
      consists of more than one person then the Notice must be treated as given
      to that party if given to any of those persons.

	 	 	 
	 	(e) 	
      Any Notice by a party may be given and may be signed by
      its solicitor.

	 	 	 
	 	(f) 	
      Any Notice to a party may be given to its solicitor by
      any of the means listed in clause 19.2 to the solicitor’s business address
      or facsimile number.

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	20. 	
      GST

	20.1 	
      Definitions and interpretation

	 	 	 
		(a) 	
      For the purpose of this clause:

	 	 	 
			
      GST means the goods and services tax under the GST
      Act; and

	 	 	 
			
      GST Act has the same meaning as in A New Tax
      System (Goods and Services Tax) Act 1999 (Cth).

	 	 	 
		(b) 	
      Expressions used in this clause have the same meaning as
      those expressions in the GST Act.

	 	 	 
	20.2 	
      Consideration exclusive of GST

	 	 	 
		
      Any consideration or payment obligation under this
      Agreement is exclusive of GST unless stated otherwise.

	 	 	 
	20.3 	
      Consideration

	 	 	 
		(a) 	
      The consideration (including any non-monetary
      consideration) for a Supply made under or in connection with this
      Agreement which is a Taxable Supply is increased by an additional amount
      or value equal to the amount of that consideration multiplied by the
      relevant GST rate.

	 	 	 
		(b) 	
      The additional amount under clause 20.3(a) is payable at
      the same time and in the same manner as the consideration for the Supply
      to which the additional amount relates.

	 	 	 
	20.4 	
      Tax Invoice

	 	 	 
		
      A party who receives consideration, whether monetary or
      otherwise, must give the other party a Tax Invoice in a form which
      complies with the GST Act within 10 Business Days after the end of the
      month in which any consideration is paid, or an invoice issued, in
      relation to the Supply, whichever occurs first.

	 	 	 
	20.5 	
      Payments

	 	 	 
		
      Unless otherwise stated in this Agreement, the following
      principles apply when determining the amount of a payment under this
      Agreement:

	 	 	 
		(a) 	
      if a party is entitled under this Agreement to be
      reimbursed or indemnified by another party in respect of any loss, damage
      or outgoing, paid, suffered or incurred by or any action, proceeding,
      claim or demand against the first mentioned party in connection with this
      Agreement, the reimbursement or indemnity payment must not include any GST
      component of the claim, loss or outgoing for which an Input Tax Credit may
      be claimed; and

	 	 	 
		(b) 	
      if a party sets off an amount under this Agreement, the
      same principles apply to calculate the amount to be set-off, as if the
      amount had been paid in accordance with clause 20.5(a).

	 	 	 
	20.6 	
      Adjustment Event

	 	 	 
		
      If an Adjustment Event occurs, the parties must do all
      things necessary to make sure that the Adjustment Event may be properly
      accounted for, including the issue of an Adjustment
Note.

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	21. 	
      Entire Agreement

	 	(a) 	
      This Agreement constitutes the entire agreement between
      the parties.

	 	 	 
	 	(b) 	
      It supersedes and extinguishes any previous agreement or
      understanding between the parties about the subject matter of this
      Agreement and any representation or warranty previously
  given.

	22. 	
      Severance

	 	 	 
		(a) 	
      If any provision of this Agreement is or becomes illegal,
      invalid or unenforceable in any jurisdiction, the provision must be read
      down so as to give it as much effect as possible.

	 	 	 
		(b) 	
      If it is not possible to give the provision any effect at
      all, it is severed from this Agreement.

	 	 	 
		(c) 	
      Any reading down or severance does not affect the
      validity and enforceability of the remaining provisions in that
      jurisdiction or the validity and enforceability of the offending provision
      in any other jurisdiction.

	 	 	 
	23. 	
      Waiver

	 	 	 
		(a) 	
      No failure by either party to exercise and no delay in
      exercising a right under this Agreement will be taken as a waiver of the
      right.

	 	 	 
		(b) 	
      Waiver of a particular right does not release the other
      party from strict compliance in the future with the same or any other
      obligation.

	 	 	 
		(c) 	
      No waiver of a right is effective unless made in
      writing.

	 	 	 
		(d) 	
      The rights and remedies provided in this Agreement are
      cumulative and do not exclude any other rights provided by
  law.

	24. 	
      Variation of Agreement

	 	 
		
      This Agreement can be amended or varied only by a written
      document executed by the parties or by persons duly authorised to sign on
      behalf of the parties.

	 	 
	25. 	
      Counterparts

	 	 
		
      This Agreement may be executed in a number of
      counterparts, all of which taken together constitute one and the same
      document.

	 	 
	26. 	
      Legal costs and stamp duty

	 	 
		
      Any legal costs, stamp duty, duties or other taxes of a
      similar nature (including fines, penalties and interest) in connection
      with this Agreement or a transaction contemplated by this Agreement, must
      be paid by the Company.

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	27. 	
      Governing Law

	 	 	 
		(a) 	
      This Agreement is governed by the law of New South
      Wales.

	 	 	 
		(b) 	
      Each party irrevocably submits to the non-exclusive
      jurisdiction of the courts of New South Wales and all courts of appeal
      from them.

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Schedule 1 

	Item 1 	1 July 2008. 
	Commencement Date 	  
	  	  
	Item 2 
Business 	
      The Company carries on the business of exploring, mining,
      developing bauxite and producing bauxite products in Australia and
      associated minerals and by products. 

	  	
      

	Item 3 
Services 	
      The Manager will provide office space and procure
      executive, geological, management, administrative, corporate compliance,
      accounting and secretarial services to the Company including the provision
      of the Key Persons: 

	 	•	Pnina Feldman as Executive
      Director; 
	 	 	 
	 	•	Sholom Feldman as Executive
      Director; and 
	 	 	 
	 	•	Simon Pecover as Head
      Geoscientist; 
	 	 	 
	 	•	Robert Coenraads as Geoscientist.
    

or if any of the Key Persons are not
available for whatever reason, an equivalent suitably qualified person for the
estimated current executive requirements of the Company being up to 15 hours per
week per Key Person averaged, and if necessary or required by the Company, other
suitably qualified senior management or administrative personnel (including
personnel with geological and technical expertise) to the Company to perform the
following duties: 

		•	 reporting to the Board on the
        day to day affairs of the Company; 

	 	 	  

	 	•	 attending to implementation
        of decisions of the Board; 

	 	 	  

		•	 geological, exploration and
        mining services, including plant and equipment where appropriate; 

	 	 	  

		•	 current project development,
        sourcing of, evaluating and negotiating further business opportunities,
        investor relations and public relations; 

	 	 	  

		•	 supervising the receipt and
        payment of money by the Company and attending to the banking of monies
        received by the Company; 

	 	 	  

		•	 assisting with the keeping of
        the books, records and registers of the Company in compliance with the
        law; 

	 	 	  

		•	 preparing drafts of all monthly,
        quarterly, half-yearly and annual statements and reports; 

	 	 	  

		•	 supervising and directing the
        audit of the Company's books of account and records; 

	 	 	  

	 	•	 supervising and directing all
        employees of the Company; 

	 	 	  

		•	 other management, administrative,
        corporate compliance, accounting and secretarial services as are required
        by the Board; and 

	 	 	  

	 	•	 providing suitable fully serviced
        office space at Level 34, 50 

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Bridge St, Sydney, including the use
  of offices, board room, kitchen, full time receptionist, daily cleaners, and
  suitable basic maintained office infrastructure including telephones, fax, printer,
  broadband internet connection and suitable office furniture for all staff currently
  required by the Company.

	Item 4 
Service Fee 	1. 	
      The retainer for the current estimated executive duties
      is $175,000 per Key Person per annum inclusive of directors fees, payable
      monthly. The monthly retainer is to be paid even if the Company does not,
      from time to time, require the full estimated executive time of the Key
      Persons. The remuneration for any work by the Key Persons in addition to
      the duties set out in this Agreement, if necessary, shall be reasonably
      agreed with the Company in advance by the independent director(s) of the
      Company or by the shareholders of the Company in general meeting.
  

	  	  	
       

		2. 	
      The fees for corporate, administrative, accounting and
      secretarial services or personnel (including support staff) shall be paid
      at market rates chargeable in Sydney as required by the Company.

	  	  	
       

		3. 	
      $14,500 per month being the discounted rate for the
      provision of suitable fully serviced offices at Level 34, 50 Bridge
      Street, Sydney. Price includes all services mentioned in the last bullet
      point of item 3 of this schedule. 

	  	  	
       

		4. 	
      Fees shall be adjusted annually from the Commencement
      Date by the CPI variation of the previous 12 months.

	Item 5 	Volcan Australia Corporation Pty
      Ltd 
	Company's address for 	Level 34, 50 Bridge Street 
	service 	Sydney NSW 2000 
		 Australia
  
	  	  
	  	Facsimile: (02) 8216 0788 
	  	  
	Item 6 	Australian Gemstone Mining Pty
      Ltd 
	The Manager's address 	67 Penkivil Street 
	for service 	Bondi NSW 2026 
	 	Australia 
	  	  
	  	Facsimile: (02) 9387-5774
  

	 	Page 19

 

	Management Services
      Agreement 	Home Wilkinson Lowry 

Executed as an Agreement 

	Executed by Volcan Australia Corporation 	) 
	Pty Ltd ACN 131 553 341 in accordance 	) 
	with section 127 of the Corporations Act 	) 
	2001 (Cth): 	) 
	  	) 

	/s/ Pnina Feldman	 	/s/ Sholom Feldman
	Director 	 	Director/Secretary 
	 	 	 
	Pnina Feldman	 	Sholom Feldman
	(Print) Full Name 	 	(Print) Full Name 

	Executed by Australian Gemstone Mining 	) 
	Pty Ltd ACN 073 120 591 in accordance 	) 
	with section 127 of the Corporations Act 	) 
	2001 (Cth): 	  

	/s/ Pinchus Feldman	 	/s/ Pnina Feldman
	Director 	 	Director/Secretary 
	 	 	 
	Pinchus Feldman	 	Pnina Feldman
	(Print) Full Name 	 	(Print) Full Name 

	 	Page 20

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