Document:

Volcan Holdings, Inc.: Exhibit 10.7 - Prepared by TNT Filings Inc.

VOLCAN HOLDINGS, INC. 
2008 EQUITY INCENTIVE PLAN 

FORM OF NONQUALIFIED STOCK OPTION AGREEMENT 

                                   
This NONQUALIFIED STOCK OPTION AGREEMENT (the “Option Agreement”), dated as of
the ____ day of ___ 20__ (the “Grant Date”), is between Volcan Holdings, Inc., a
Delaware corporation (the “Company”), and _____________ (the “Optionee”), a
director, officer or employees of, or consultant or advisor to, the Company or a
Subsidiary of the Company (a “Related Corporation”), pursuant to the Volcan
Holdings, Inc. 2008 Equity Incentive Plan (the “Plan”). 

                                   
WHEREAS, the Company desires to give the Optionee the opportunity to purchase
shares of common stock of the Company, par value $0.001 (“Common Shares”) in
accordance with the provisions of the Plan, a copy of which is attached hereto;

                                   
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth
and for other good and valuable consideration, the parties hereto, intending to
be legally bound hereby, agree as follows: 

                                   
1.      Grant of Option. The Company hereby
grants to the Optionee the right and option (the “Option”) to purchase all or
any part of an aggregate of ___________________ (______) Common Shares. The
Option is in all respects limited and conditioned as hereinafter provided, and
is subject in all respects to the terms and conditions of the Plan now in effect
and as it may be amended from time to time (but only to the extent that such
amendments apply to outstanding options). Such terms and conditions are
incorporated herein by reference, made a part hereof, and shall control in the
event of any conflict with any other terms of this Option Agreement. The Option
granted hereunder is intended to be a nonqualified stock option (“NQSO”) and
not an incentive stock option (“ISO”) as such term is defined in section
422 of the Internal Revenue Code of 1986, as amended (the “Code”). 

                                   
2.      Exercise Price. The exercise price of
the Common Shares covered by this Option shall be $_________ per share. It is
the determination of the committee administering the Plan (the “Committee”) that
on the Grant Date the exercise price was not less than the greater of (i) 100%
of the “Fair Market Value” (as defined in the Plan) of a Common Share, or (ii)
the par value of a Common Share. 

                                   
3.      Term. Unless earlier terminated pursuant
to any provision of the Plan or of this Option Agreement, this Option shall
expire on ___________ ___, 20__ (the “Expiration Date”), which date is not more
than 10 years from the Grant Date. This Option shall not be exercisable on or
after the Expiration Date. 

                              4.     
Exercise of Option. The Option shall vest according to the following
schedule, provided that Optionee remains continuously engaged as a director,
officer or employee of, or consultant or advisor to, the Company or a Related
Corporation from the date hereof through the applicable vesting date: 

	Date Installment
      Becomes Exercisable 	Number of Shares 
	  	_______ Shares 
	  	an additional _______  Shares 
	  	an additional _______  Shares 
	  	an additional _______  Shares

The Committee may accelerate any vesting date of the Option, in
its discretion, if it deems such acceleration to be desirable. Once the Option
becomes exercisable, it will remain exercisable until it is exercised or until
it terminates. 

                              5.    
 Method of Exercising Option. Subject to the terms and conditions of
this Option Agreement and the Plan, the Option may be exercised by written
notice to the Company at its principal office. The form of such notice is
attached hereto and shall state the election to exercise the Option and the
number of whole shares with respect to which it is being exercised; shall be
signed by the person or persons so exercising the Option; and shall be
accompanied by payment of the full exercise price of such shares. Only full
shares will be issued.

                              The
exercise price shall be paid to the Company:

                              (a)    
 in cash, or by certified check, bank draft, or postal or express money
order; 

                              (b)    
 through the delivery of Common Shares previously acquired by the Optionee;

                              (c)     
by delivering a properly executed notice of exercise of the Option to the
Company and a broker, with irrevocable instructions to the broker promptly to
deliver to the Company the amount necessary to pay the exercise price of the
Option; 

                              (d)     
in Common Shares newly acquired by the Optionee upon exercise of the Option; or

                              (e)     
in any combination of (a), (b), (c) or (d) above. 

In the event the exercise price is paid, in whole or in part,
with Common Shares, the portion of the exercise price so paid shall be equal to
the Fair Market Value of the Common Shares surrendered on the date of exercise.

                              Upon
receipt of notice of exercise and payment, the Company shall deliver a
certificate or certificates representing the Common Shares with respect to which
the Option is so exercised. The Optionee shall obtain the rights of a
shareholder upon receipt of a certificate(s) representing such Common Shares.

                              Such
certificate(s) shall be registered in the name of the person so exercising the
Option (or, if the Option is exercised by the Optionee and if the Optionee so
requests in the notice exercising the Option, shall be registered in the name of
the Optionee and the Optionee’s spouse, jointly, with right of survivorship),
and shall be delivered as provided above to, or upon the written order of, the
person exercising the Option. In the event the Option is exercised by any person
after the death or disability (as determined in accordance with Section 22(e)(3)
of the Code) of the Optionee, the notice shall be accompanied by appropriate
proof of the right of such person to exercise the Option. All Common Shares that
are purchased upon exercise of the Option as provided herein shall be fully paid
and non-assessable. 

                              Upon
exercise of the Option, Optionee shall be responsible for all employment and
income taxes then or thereafter due (whether Federal, State or local), and if
the Optionee does not remit to the Company sufficient cash (or, with the consent
of the Committee, Common Shares) to satisfy all applicable withholding
requirements, the Company shall be entitled to satisfy any withholding
requirements for any such tax by disposing of Common Shares at exercise,
withholding cash from Optionee’s salary or other compensation or such other
means as the Committee considers appropriate to the fullest extent permitted by
applicable law. Nothing in the preceding sentence shall impair or limit the
Company’s rights with respect to satisfying withholding obligations under
Section 10 of the Plan. 

                              6.     
Non-Transferability of Option. This Option is not assignable or
transferable, in whole or in part, by the Optionee other than by will or by the
laws of descent and distribution. During the lifetime of the Optionee, the
Option shall be exercisable only by the Optionee or, in the event of his or her
disability, by his or her guardian or legal representative. 

                              7.     
Termination of Services. If the Optionee’s services with the Company and
all Related Corporations are terminated for any reason (other than death or
disability) prior to the Expiration Date, then this Option may be exercised by
Optionee, to the extent of the number of Common Shares with respect to which the
Optionee could have exercised it on the date of such termination of services, at
any time prior to the earlier of (i) the Expiration Date, or (ii) three months
after such termination of services. Any part of the Option that was not
exercisable immediately before the termination of Optionee’s services shall
terminate at that time. 

                              8.    
 Disability. If the Optionee becomes disabled (as determined in
accordance with section 22(e)(3) of the Code) during the period of his or her
service and, prior to the Expiration Date, the Optionee’s services are
terminated as a consequence of such disability, then this Option may be
exercised by the Optionee or by the Optionee’s legal representative, to 

the extent of the number of Common Shares with respect to which
the Optionee could have exercised it on the date of such termination of
services, at any time prior to the earlier of (i) the Expiration Date or (ii)
one year after such termination of services. Any part of the Option that was not
exercisable immediately before the Optionee’s termination of services shall
terminate at that time.

                              9.    
 Death. If the Optionee dies during the period of his or her
services and prior to the Expiration Date, or if the Optionee’s services are
terminated for any reason (as described in Paragraphs 7 and 8) and the Optionee
dies following his or her termination of services but prior to the earliest of
(i) the Expiration Date, or (ii) the expiration of the period determined under
Paragraph 7 or 8 (as applicable to the Optionee), then this Option may be
exercised by the Optionee’s estate, personal representative or beneficiary who
acquired the right to exercise this Option by bequest or inheritance or by
reason of the Optionee’s death, to the extent of the number of Common Shares
with respect to which the Optionee could have exercised it on the date of his or
her death, at any time prior to the earlier of (i) the Expiration Date or (ii)
one year after the date of the Optionee’s death. Any part of the Option that was
not exercisable immediately before the Optionee’s death shall terminate at that
time. 

                              10.    
 Securities Matters. (a) If, at any time, counsel to the Company
shall determine that the listing, registration or qualification of the Common
Shares subject to the Option upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body,
or that the disclosure of non-public information or the satisfaction of any
other condition is necessary as a condition of, or in connection with, the
issuance or purchase of Common Shares hereunder, such Option may not be
exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval, or satisfaction of such condition shall have
been effected or obtained on conditions acceptable to the Board of Directors.
The Company shall be under no obligation to apply for or to obtain such listing,
registration or qualification, or to satisfy such condition. The Committee shall
inform the Optionee in writing of any decision to defer or prohibit the exercise
of an Option. During the period that the effectiveness of the exercise of an
Option has been deferred or prohibited, the Optionee may, by written notice,
withdraw the Optionee’s decision to exercise and obtain a refund of any amount
paid with respect thereto. 

                              (b)     
The Company may require: (i) the Optionee (or any other person exercising the
Option in the case of the Optionee’s death or Disability) as a condition of
exercising the Option, to give written assurances, in substance and form
satisfactory to the Company, to the effect that such person is acquiring the
Common Shares subject to the Option for his or her own account for investment
and not with any present intention of selling or otherwise distributing the
same, and to make such other representations or covenants; and (ii) that any
certificates for Common Shares delivered in connection with the exercise of the
Option bear such legends, in each case as the Company deems necessary or
appropriate, in order to comply with federal and applicable state securities
laws, to comply with covenants or representations made by the Company in
connection with any public offering of its Common 

Shares or otherwise. The Optionee specifically understands and
agrees that the Common Shares, if and when issued upon exercise of the Option,
may be “restricted securities,” as that term is defined in Rule 144 under the
Securities Act of 1933 and, accordingly, the Optionee may be required to hold
the shares indefinitely unless they are registered under such Securities Act of
1933, as amended, or an exemption from such registration is available. 

                              (c)     
The Optionee shall have no rights as a shareholder with respect to any Common
Shares covered by the Option (including, without limitation, any rights to
receive dividends or non-cash distributions with respect to such shares) until
the date of issue of a stock certificate to the Optionee for such Common Shares.
No adjustment shall be made for dividends or other rights for which the record
date is prior to the date such stock certificate is issued. 

                              11.     
Governing Law. This Option Agreement shall be governed by the applicable
Code provisions to the maximum extent possible. Otherwise, the laws of the State
of Delaware (without reference to the principles of conflict of laws) shall
govern the operation of, and the rights of the Optionee under, the Plan and
Options granted thereunder. 

[SIGNATURE PAGE FOLLOWS] 

                              IN
WITNESS WHEREOF, the Company has caused this Nonqualified Stock Option Agreement
to be duly executed by its duly authorized officer, and the Optionee has
hereunto set his or her hand and seal, all as of the ____ day of ___, 20__. 

VOLCAN HOLDINGS, INC. 

By:_______________________________
Name: 
Title: 

 

_______________________________
          Optionee

VOLCAN HOLDINGS, INC. 
2008 EQUITY INCENTIVE PLAN 

Notice of Exercise of Nonqualified Stock Option 

                              I
hereby exercise the nonqualified stock option granted to me pursuant to the
Nonqualified Stock Option Agreement dated as of ______________ __, 20__, by
Volcan Holdings, Inc. (the “Company”), with respect to the following number of
shares of the Company’s common stock (“Shares”), par value $0.001 per Share,
covered by said option: 

	 	Number of Shares to be purchased: 	  _______
	 	 	 
	 	Purchase price per Share: 	$_______ 
	 	 	 
	 	Total purchase price: 	$_______ 

	___	A. 	
      Enclosed is cash or my certified check, bank draft, or
      postal or express money order in the amount of $ __________ in
      full/partial [circle one] payment for such Shares; 

	 	  	 
	 	  	and/or 
	 	  	 
	___	B. 	
      Enclosed is/are Share(s) with a total fair market value
      of $ on the date hereof in full/partial [circle one] payment for
      such Shares; 

	 	  	 
	 	  	and/or 
	 	  	 
	___	C. 	
      I have provided notice to [insert name of broker],
      a broker, who will render full/partial [circle one] payment for
      such Shares. [Optionee should attach to the notice of exercise
      provided to such broker a copy of this Notice of Exercise and
      irrevocable instructions to pay to the Company the full exercise
      price.] 

	 	  	 
	 	  	and/or 
	 	  	 
	___	D. 	
      I elect to satisfy the payment for Shares purchased
      hereunder by having the Company withhold newly acquired Shares pursuant to
      the exercise of the Option. 

                             
Please have the certificate or certificates representing the purchased Shares
registered in the following name or names*:
_________________________; and sent to _________________________. 

	DATED: ______________ ___, 20__ 	________________________________________
	  	Optionee’s Signature 

      
   *Certificates may be registered in the name of the
Optionee alone or in the joint names (with right of survivorship) of the
Optionee and his or her spouse.Volcan Holdings, Inc.: Exhibit 10.8 - Prepared by TNT Filings Inc.

AGREEMENT OF CONVEYANCE, TRANSFER AND ASSIGNMENT OF ASSETS
AND 
ASSUMPTION OF OBLIGATIONS 

          This
Agreement of Conveyance, Transfer and Assignment of Assets and Assumption of
Obligations (“Transfer and Assumption Agreement”) is made as of September
12, 2008, by Volcan Holdings, Inc., a Delaware corporation (“Assignor”),
and Dunn Mining Holdings, Inc., a Delaware corporation and a wholly-owned
subsidiary of Assignor (“Assignee”). 

          WHEREAS,
Assignor and its predecessor (Dunn Mining, Inc.) intends to commence operations
as an exploration stage company engaged in the acquisition and exploration of
mineral properties with a view to exploiting any mineral deposits discovered
that demonstrate economic feasibility (the “Business”); and 

          WHEREAS,
Assignor and its predecessor (Dunn Mining, Inc.) desires to convey, transfer and
assign to Assignee, and Assignee desires to acquire from Assignor, all of the
assets of Assignor relating to the operation of the Business, and in connection
therewith, Assignee has agreed to assume all of the liabilities of Assignor
relating to the Business, on the terms and conditions set forth herein. 

          NOW
THEREFORE, in consideration of the mutual promises and agreements contained
herein, the parties hereto, intending to be legally bound hereby, agree as
follows: 

          Section
1.      Assignment.

          1.1.      Assignment
of Assets. For good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged by Assignor, Assignor does hereby assign,
grant, bargain, sell, convey, transfer and deliver to Assignee, and its
successors and assigns, all of Assignor’s right, title and interest in, to and
under the assets, properties and business, of every kind and description,
wherever located, real, personal or mixed, tangible or intangible, owned, held
or used in the conduct of the Business (the “Assets”), including, but not
limited to, the Assets listed on Exhibit A hereto, and identified in part
by reference to Assignor’s predecessor’s balance sheet as of May 31, 2008, filed
with the Securities and Exchange Commission as part of Assignor’s predecessor’s
quarterly report on Form 10-QSB on July 15, 2008 (the “Balance Sheet”).
Notwithstanding anything to the contrary contained herein, the term Assets shall
not include either the assets of or the business conducted by Volcan Australia
Corporation Pty Ltd, an Australian proprietary corporation. 

          1.2      Further
Assurances. Assignor shall from time to time after the date hereof
at the request of Assignee and without further consideration execute and deliver
to Assignee such additional instruments of transfer and assignment, including
without limitation any bills of sale, assignments of leases, deeds, and other
recordable instruments of assignment, transfer and conveyance, in addition to
this Transfer and Assumption Agreement, as Assignee shall reasonably request to
evidence more fully the assignment by Assignor to Assignee of the Assets. 

          Section
2.      Assumption.

- 1 - 

          2.1     
Assumed Liabilities. As of the date hereof, Assignee hereby
assumes and agrees to pay, perform and discharge, fully and completely all
liabilities, commitments, contracts, agreements, obligations or other claims
against Assignor, whether known or unknown, asserted or unasserted, accrued or
unaccrued, absolute or contingent, liquidated or unliquidated, due or to become
due, and whether contractual, statutory, or otherwise associated with the
Business whenever arising (the “Liabilities”), including, but not limited
to, the Liabilities listed on Exhibit B, and identified in part by
reference to the Balance Sheet.

          2.2      Further
Assurances. Assignee shall from time to time after the date hereof
at the request of Assignor and without further consideration execute and deliver
to Assignor such additional instruments of assumption in addition to this
Transfer and Assumption Agreement as Assignor shall reasonably request to
evidence more fully the assumption by Assignee of the Liabilities. 

          Section
  3.      Headings.
  The descriptive headings contained in this Transfer and Assumption
  Agreement are for convenience of reference only and shall not affect in any
  way the meaning or interpretation of this Transfer and Assumption Agreement.

          Section
4.      Governing
Law. This Transfer and Assumption Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed entirely within that state, except that any
conveyances of leaseholds and real property made herein shall be governed by the
laws of the respective jurisdictions in which such property is located.

[The remainder of this page is blank intentionally.]

-2- 

[SIGNATURE PAGE TO TRANSFER AND ASSUMPTION AGREEMENT]

          IN
WITNESS WHEREOF, this Transfer and Assumption Agreement has been duly executed
and delivered by the parties hereto as of the date first above written. 

VOLCAN HOLDINGS, INC.

 

By: /s/ Pnina Feldman 
Name:
Pnina Feldman 
      Title: Chief Executive
Officer

 

DUNN MINING HOLDINGS, INC. 

By: Volcan Holdings, Inc.,

        Its sole stockholder 

By: Gregory P. Byrne

       Name: Gregory Paul
Byrne 
       Title: President

- 3 - 

Exhibit A 

          (a)     
All of the equipment, computers, servers, hardware, appliances, implements, and
all other tangible personal property that are owned by Assignor and have been
used in the conduct of the Business; 

          (b)     
all inventory associated with the Business; 

          (c)      all
real property and real property leases to which Assignor is a party, and which
affect the Business or the Assets; 

          (d)     
all contracts to which Assignor is a party, or which affect the Business or the
Assets, including leases of personal property;

          (e)      all
rights, claims and causes of action against third parties resulting from or
relating to the operation of the Business or the Assets, including without
limitation, any rights, claims and causes of action arising under warranties
from vendors and other third parties; 

          (f)     
all governmental licenses, permits, authorizations, consents or approvals
affecting or relating to the Business or the Assets; 

          (g)     
all accounts receivable, notes receivable, prepaid expenses and insurance and
indemnity claims to the extent related to any of the Assets or the Business;

          (h)      all
goodwill associated with the Assets and the Business; 

          (i)     
all business records, regardless of the medium of storage, relating to the
Assets and/or the Business, including without limitation, all schematics,
drawings, customer data, subscriber lists, statistics, promotional graphics,
original art work, mats, plates, negatives, accounting and financial information
concerning the Assets or Business; 

          (j)      all
internet domain names and URLs of the Business, software, inventions, art works,
patents, patent applications, processes, shop rights, formulas, brand names,
trade secrets, know-how, service marks, trade names, trademarks, trademark
applications, copyrights, source and object codes, customer lists, drawings,
ideas, algorithms, processes, computer software programs or applications (in
code and object code form), tangible or intangible proprietary information and
any other intellectual property and similar items and related rights owned by or
licensed to Assignor used in the Business, together with any goodwill associated
therewith and all rights of action on account of past, present and future
unauthorized use or infringement thereof; and 

          (k)      all
other privileges, rights, interests, properties and assets of whatever nature
and wherever located that are owned, used or intended for use in connection 

with, or that are necessary to the continued conduct of, the Business as presently conducted or planned to be conducted. 

Exhibit B 

          (a)      All
liabilities in respect of indebtedness of Assignor related to the Business; 

          (b)      product
liability and warranty claims relating to any product or service of Assignor
associated with the Business; 

          (c)      taxes,
duties, levies, assessments and other such charges, including any penalties,
interests and fines with respect thereto, payable by Assignor to any federal,
provincial, municipal or other government, domestic or foreign, incurred in the
conduct of the Business; 

          (d)     
liabilities for salary, bonus, vacation pay, severance payments damages for
wrongful dismissal, or other compensation or benefits relating to Assignor’s
employees employed in the conduct of the Business; and 

          (e)      any
liability or claim for liability (whether in contract, in tort or otherwise, and
whether or not successful) related to any lawsuit or threatened lawsuit or claim
(including any claim for breach or non-performance of any contract) based upon
actions, omissions or events relating to the Business.

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