##### 



Exhibit
10.4
 
 CONFIDENTIAL CONSULTING AGREEMENT
  RECITALS
 WHEREAS
 WHEREAS
 NOW, THEREFORE
 1.
    
    Services.
 A.
    
    Commencing on the Effective Date, FLG will perform those services (the Services)
described in one or more Exhibits A attached hereto. Such services shall be performed by
the member or members of FLG identified in Exhibit A (collectively, the FLG Member).
 B.
    
    Client acknowledges and agrees that FLGs success in performing the Services hereunder
will depend upon the participation, cooperation and support of Clients most senior
management.
 C.
    
    Notwithstanding anything in Exhibit A or elsewhere in this Agreement to the contrary,
neither FLG nor any of its members shall serve as the chief financial officer, an employee,
a manager, any other officer, or a director of Client. Consistent with the preceding: (i)
Client shall not refer to the FLG Member as or require the FLG Member to use the title
Chief Financial Officer or any other title that suggests that the FLG Member is an
officer, director, employee, or manager of Client; (ii) the FLG Member shall have no
authority or control over the employees of Client; and (iii) the FLG Member shall not sign
and shall have no authority to sign any documents on behalf of Client, including, but not
limited to, federal or state securities filings, tax filings, or representations and
warranties on behalf of Client.
 D.
    
    The Services provided by FLG and FLG Member hereunder shall not constitute an audit,
attestation, review, compilation, or any other type of financial statement reporting
engagement (historical or prospective) that is subject to the rules of the California Board
of Accountancy, the AICPA or other similar state or national licensing or professional
bodies. Client agrees that any such services, if required, will be performed separately by
its independent public accountants.
 E.
    
    During the term of this Agreement, Client shall not hire or retain the FLG Member as an
employee, consultant or independent contractor except pursuant to this Agreement.
 2.
    
    Compensation; Payment; Deposit; Expenses.
 A.
    
    As compensation for Services rendered by FLG hereunder, Client shall pay FLG the amounts
set forth in Exhibit A for Services performed by FLG hereunder (the Fees). The Fees shall
be net of any and all taxes, withholdings, duties, customs, social contributions or other
reductions imposed by any and all authorities which are required to be withheld or collected
by Client, including ad valorem, sales or similar taxes, but excluding US income taxes based
upon FLGs or FLG Members net taxable income.
 B.
    
    As additional compensation to FLG, Client will pay FLG the incentive bonus or warrants or
options, if any, set forth in Exhibit A.
 C.
    
    Client shall pay FLG all amounts owed to FLG under this Agreement upon Clients receipt
of invoice, with no purchase order required. Any invoices more than thirty (30) days
overdue will accrue a late payment fee at the rate of one and 50/100 percent (1.5%) per
month. FLG shall be entitled to recover all costs and expenses (including, without
limitation, reasonable attorneys fees) incurred by it in collecting any amounts overdue
under this Agreement.
 D.
    
    Client hereby pays to FLG a deposit as set forth on Exhibit A (the Deposit) for
Clients future payment obligations to FLG under this agreement, against which FLG shall
charge amounts owed to FLG under this Agreement. Upon termination of this Agreement, all
amounts then owing to FLG under this Agreement shall be charged against the Deposit and the
balance thereof, if any, shall be refunded to Client.
 E.
    
    Within ten (10) days of Clients receipt of an expense report from FLGs personnel
performing Services hereunder, Client shall immediately reimburse FLG personnel directly for
reasonable travel and out-of-pocket business expenses authorized by client detailed in such
expense report.
 3.
    
    Relationship of the Parties.
 A.
    
    FLGs relationship with Client will be that of an independent contractor and nothing in
this Agreement shall be construed to create a partnership, joint venture, or
employer-employee relationship. FLG is not the agent of Client and is not authorized to
make any presentation, contract, or commitment on behalf of Client unless specifically
requested or authorized to do so by Client in writing. FLG agrees that all taxes payable as
a result of compensation payable to FLG hereunder shall be FLGs sole liability. FLG shall
defend, indemnify and hold harmless Client, Clients officers, directors, employees and
agents, and the administrators of Clients benefit plans from and against any claims,
liabilities or expenses relating to such taxes or compensation.
 4.
    
    Term and Termination.
 A.
    
    The term of this Agreement shall be for the period set forth in Exhibit A.
 B.
    
    Either party may terminate this Agreement upon thirty (30) days advance written notice
to the other party.
 C.
    
    Either party may terminate this Agreement immediately upon a material breach of this
Agreement by the other party and a failure by the other party to cure such breach within ten
(10) days of written notice thereof by the non-breaching party to the breaching party.
 D.
    
    FLG shall have the right to terminate this Agreement immediately without advance written
notice (i) if Client is engaged in, or requests that FLG or the FLG Member undertake or
ignore any illegal or unethical activity, or (ii) upon the death or disability of the FLG
Member.
 Page 1 of 5




---



##### 



CONFIDENTIAL CONSULTING AGREEMENT
 E.
    
    If at any time during the one (1) year period following termination of this Agreement
Client shall hire or retain the FLG Member as an employee, consultant or independent
contractor, AND in doing so induce, compel or cause FLG Member to leave FLG as a
precondition to commencing or continuing employment or consultancy with Client, Client shall
immediately pay to FLG in readily available funds a recruiting fee equal to the difference
between:
 i.
    
    The annualized amount of Fees payable hereunder, which shall equal (A) 350
multiplied by the daily rate, if this Agreement provides for Fees payable by daily rate,
or (B) 2,800 multiplied by the hourly rate, if this Agreement provides for Fees payable
by hourly rate (the Annualized Fee), multiplied by thirty percent (30%); and
 ii.
    
    the lesser of (A) twenty percent (20%) of the Annualized Fee or (B) the cumulative
amount of Fees paid by Client under this Agreement prior to termination of this
Agreement.
 5.
    
    IRS Circular 230 Disclosure:
 To ensure compliance with requirements imposed by the IRS effective June 20, 2005, we hereby
inform you that any tax advice offered during the course of providing, or arising out of, the
Services rendered pursuant to this Agreement, unless expressly stated otherwise, is not intended
or written to be used, and cannot be used, for the purpose of: (i) avoiding tax-related penalties
under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any
tax-related matter(s) said tax advice address(es).
 6.
    
    DISCLAIMERS AND LIMITATION OF LIABILITY.
 ALL SERVICES TO BE PROVIDED BY FLG AND FLG MEMBER (FOR PURPOSES OF THIS PARAGRAPH 6, COLLECTIVELY
FLG) HEREUNDER ARE PROVIDED AS IS WITHOUT ANY WARRANTY WHATSOEVER. CLIENT RECOGNIZES THAT THE
AS IS CLAUSE OF THIS AGREEMENT IS AN IMPORTANT PART OF THE BASIS OF THIS AGREEMENT, WITHOUT
WHICH FLG WOULD NOT HAVE AGREED TO ENTER INTO THIS AGREEMENT. FLG EXPRESSLY DISCLAIMS ALL OTHER
WARRANTIES, TERMS OR CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, REGARDING THE
PROFESSIONAL SERVICES, INCLUDING ANY, WARRANTIES OF MERCHANTABILITY, TITLE, FITNESS FOR A
PARTICULAR PURPOSE AND INFRINGEMENT. NO REPRESENTATION OR OTHER AFFIRMATION OF FACT, REGARDING
THE SERVICES PROVIDED HEREUNDER SHALL BE DEEMED A WARRANTY FOR ANY PURPOSE OR GIVE RISE TO ANY
LIABILITY OF FLG WHATSOEVER.
 IN NO EVENT SHALL FLG BE LIABLE FOR ANY INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE OR
CONSEQUENTIAL DAMAGES, UNDER ANY CIRCUMSTANCES, INCLUDING, BUT NOT LIMITED TO: LOST PROFITS;
REVENUE OR SAVINGS; OR THE LOSS OF USE OF ANY DATA, EVEN IF CLIENT OR FLG HAVE BEEN ADVISED OF,
KNEW, OR SHOULD HAVE KNOWN, OF THE POSSIBILITY THEREOF. NOTWITHSTANDING ANYTHING IN THIS
AGREEMENT TO THE CONTRARY, FLGS AGGREGATE CUMULATIVE LIABILITY HEREUNDER, WHETHER IN CONTRACT,
TORT, NEGLIGENCE, MISREPRESENTATION, STRICT LIABILITY OR OTHERWISE, SHALL NOT EXCEED AN AMOUNT
EQUAL TO TWO (2) MONTHS OF FEES PAYABLE BY CLIENT UNDER PARAGRAPH 2(A) OF THIS AGREEMENT. CLIENT
ACKNOWLEDGES THAT THE COMPENSATION PAID BY IT UNDER THIS AGREEMENT REFLECTS THE ALLOCATION OF RISK
SET FORTH IN THIS AGREEMENT AND THAT FLG WOULD NOT ENTER INTO THIS AGREEMENT WITHOUT THESE
LIMITATIONS ON ITS LIABILITY.
 A.
    
    As a condition for recovery of any amount by Client against FLG, Client shall give FLG
written notice of the alleged basis for liability within ninety (90) days of discovering the
circumstances giving rise thereto, in order that FLG will have the opportunity to investigate
in a timely manner and, where possible, correct or rectify the alleged basis for liability;
provided that the failure of Client to give such notice will only affect the rights of Client
to the extent that FLG is actually prejudiced by such failure. Notwithstanding anything
herein to the contrary, Client must assert any claim against FLG by the sooner of ninety (90)
days after discovery, ninety (90) days after the termination of this Agreement, or ninety
(90) days after the last date on which the Services were performed.
 7.
    
    Indemnification.
 A.
    
    FLG and FLG Member acting in relation to any of the affairs of Client shall, to the fullest
extent permitted by law, as now or hereafter in effect, be indemnified and held harmless, and
such right to indemnification shall continue to apply to FLG and FLG Member following the
term of this Agreement out of the assets and profits of the Client from and against all
actions, costs, charges, losses, damages, liabilities and expenses which FLG or FLG Member,
or FLGs or FLG Members heirs, executors or administrators, shall or may incur or sustain by
or by reason for any act done, concurred in or omitted in or about the execution of FLGs or
FLG Members duty or services performed on behalf of Client; and Client shall indemnify FLG
and FLG member for reasonable attorneys fees, costs and expenses in connection with
litigation related to the foregoing on the same basis as such advancement would be available
to the Clients officers and directors, PROVIDED THAT Client shall not be obligated to make
payments to any person (i) in connection with a proceeding (or part thereof) initiated by
such person unless such proceeding (or part thereof) was authorized or consented to by the
Board or (ii) in respect of any gross negligence or willful misconduct which may attach to
any such persons.
 B.
    
    FLG and FLG Member shall have no liability to Client relating to the performance of its
duties under this agreement except in the event of FLGs or FLG Members gross negligence or
willful misconduct.
 C.
    
    FLG and FLG Member agree to waive any claim or right of action FLG or FLG Member might have
whether individually or by or in the right of Client, against any director, secretary and
other officers of Client and the liquidator or trustees (if any) acting in relation to any of
the affairs of Client and every one of them on account of any action taken by such director,
officer, liquidator or trustee or the failure of such director, officer, liquidator or
trustee to take any action in the performance of his duties with or for Client; PROVIDED THAT
such waiver shall not extend to any matter in respect of any gross negligence or willful
misconduct which may attach to any such persons.
 8.
    
    Representations and Warranties.
 A.
    
    Each party represents and warrants to the other that it is authorized to enter into this
Agreement and can fulfill all of its obligations hereunder.
 B.
    
    FLG and FLG Member warrant that they shall perform the Services diligently, with due care,
and in accordance with prevailing industry standards for comparable engagement and the
 Page 2 of 5




---



##### 



CONFIDENTIAL CONSULTING AGREEMENT
 requirements of this Agreement. FLG and FLG Member warrant that FLG Member has sufficient
professional experience to perform the Services in a timely and competent manner.
 C.
    
    Each party represents and warrants that it has and will maintain a policy or policies of
insurance with reputable insurance companies providing the members, officers and directors,
as the case may be, of itself with coverage for losses from wrongful acts.
 9.
    
    Miscellaneous.
 A.
    
    Any notice required or permitted to be given by either party hereto under this Agreement
shall be in writing and shall be personally delivered or sent by a reputable courier mail
service (e.g., Federal Express) or by facsimile confirmed by reputable courier mail service,
to the other party as set forth in this Paragraph 9(A). Notices will be deemed effective
two (2) days after deposit with a reputable courier service or upon confirmation of receipt
by the recipient from such courier service or the same day if sent by facsimile and
confirmed as set forth above.
 If to FLG:
 Jeffrey S. Kuhn
Managing Principal
Financial Leadership Group, LLC
PO Box 556
7 East Road
Ross, CA 94957-0556
Tel: 415-454-5506
Fax: 415-456-1191
E-mail: jeff@flgllc.com
 If to Client: the address, telephone numbers and email address shown below Clients
signature on the signature page.
 B.
    
    This Agreement will be governed by and construed in accordance with the laws of
California without giving effect to any choice of law principles that would require the
application of the laws of a different jurisdiction.
 C.
    
    Any claim, dispute, or controversy of whatever nature arising out of or relating to this
Agreement (including any other agreement(s) contemplated hereunder), including, without
limitation, any action or claim based on tort, contract, or statute (including any claims of
breach or violation of statutory or common law protections from discrimination, harassment
and hostile working environment), or concerning the interpretation, effect, termination,
validity, performance and/or breach of this Agreement (Claim), shall be resolved by final
and binding arbitration before a single arbitrator (Arbitrator) selected from and
administered by the San Francisco office of JAMS (the Administrator) in accordance with
its then existing commercial arbitration rules and procedures. The arbitration shall be
held in the San Mateo County, California. The Arbitrator shall, within fifteen (15)
calendar days after the conclusion of the Arbitration hearing, issue a written award and
statement of decision describing the essential findings and conclusions on which the award
is based, including the calculation of any damages awarded. The Arbitrator also shall be
authorized to grant any temporary, preliminary or permanent equitable remedy or relief he or
she deems just and equitable and within the scope of this Agreement, including, without
limitation, an injunction or order for specific performance. Each party shall bear its own
attorneys fees, costs, and disbursements arising out of the arbitration, and shall pay an
equal share of the fees and costs of the Administrator and the Arbitrator; provided,
however, the Arbitrator shall be authorized to determine whether a party is the prevailing
party, and if so, to award to that prevailing party reimbursement for its reasonable
attorneys fees, costs and disbursements, and/or the fees and costs of the Administrator and
the Arbitrator. The Arbitrators award may be enforced in any court of competent
jurisdiction. Notwithstanding the foregoing, nothing in this Paragraph 9(C) will restrict
either party from applying to any court of competent jurisdiction for injunctive relief.
 D.
    
    Neither party may assign its rights or delegate its obligations hereunder, either in
whole or in part, whether by operation of law or otherwise, without the prior written
consent of the other party; provided, however, that FLG may assign its rights and delegate
its obligations hereunder to any affiliate of FLG. The rights and liabilities of the
parties under this Agreement will bind and inure to the benefit of the parties respective
successors and permitted assigns.
 E.
    
    If any provision of this Agreement, or the application thereof, shall for any reason and
to any extent be invalid or unenforceable, the remainder of this Agreement and application
of such provision to other persons or circumstances shall be interpreted so as best to
reasonably effect the intent of the parties. The parties further agree to replace such void
or unenforceable provision of this Agreement with a valid and enforceable provision which
will achieve, to the extent possible, the economic, business and other purposes of the void
or unenforceable provision.
 F.
    
    This Agreement, the Exhibits, and any executed Non-Disclosure Agreements specified
therein and thus incorporated by reference, constitute the entire understanding and
agreement of the parties with respect to the subject matter hereof and thereof and supersede
all prior and contemporaneous agreements or understandings, express or implied, written or
oral, between the parties with respect hereto. The express terms hereof control and
supersede any course of performance or usage of the trade inconsistent with any of the terms
hereof.
 G.
    
    Any term or provision of this Agreement may be amended, and the observance of any term of
this Agreement may be waived, only by a writing signed by the parties. The waiver by a
party of any breach hereof for default in payment of any amount due hereunder or default in
the performance hereof shall not be deemed to constitute a waiver of any other default or
succeeding breach or default.
 H.
    
    Upon completion of the engagement hereunder, FLG may place customary tombstone
advertisements using Clients logo and name in publications of FLGs choice at its own
expense, and/or cite the engagement in similar fashion on FLGs website.
 I.
    
    If and to the extent that a partys performance of any of its obligations pursuant to
this Agreement is prevented, hindered or delayed by fire, flood, earthquake, elements of
nature or acts of God, acts of war, terrorism, riots, civil disorders, rebellions or
revolutions, or any other similar cause beyond the reasonable control of such party (each, a
Force Majeure Event), and such non-performance, hindrance or delay could not have been
prevented by reasonable precautions of the non-performing party, then the non-performing,
hindered or delayed party shall be excused for such non-performance, hindrance or delay, as
applicable, of those obligations affected by the Force Majeure Event for as long as such
Force Majeure Event continues and such party continues to use its best efforts to recommence
performance whenever and to whatever extent possible without delay, including through the
use of alternate sources, workaround plans or other means.
 J.
    
    This Agreement may be executed in any number of counterparts and by the parties on
separate counterparts, each of which when
 Page 3 of 5




---



##### 



CONFIDENTIAL CONSULTING AGREEMENT
 executed and delivered shall constitute an original, but all the counterparts together
constitute one and the same instrument.
 K.
    
    This Agreement may be executed by facsimile signatures (including electronic versions of
this document in Adobe Acrobat Portable Document Format form which contain scanned or
secure, digitally signed signatures) by any party hereto and such signatures shall be deemed
binding for all purposes hereof, without delivery of an original signature being thereafter
required.
 L.
    
    Survivability. The following paragraphs shall survive the termination of this
Agreement: 6; 7; 8; 9(A); 9(B); and 9(C).
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective
Date.
 CLIENT:
    
    FLG:Iridex Corporation,
Delaware corporation.
    
Financial Leadership Group, LLC,
a California limited liability company.By:
Barry G. Caldwell
    
By:
Jeffrey S. KuhnSigned:
/s/ Barry G. Caldwell
    
Signed:
/s/ Jeffrey S. KuhnTitle:
President & CEO
    
    Title:
    Managing PrincipalAddress:
1212 Terra Bella Ave.Mountain View, CA.Tel:
    650-940-4700Fax:
    650-940-4710
    
    Effective Date: July 31, 2007Email:
    bcaldwell@iridex.com
 REMAINDER OF THIS PAGE LEFT BLANK
 Page 4 of 5




---



##### 



CONFIDENTIAL CONSULTING AGREEMENT
  1.
    
    Description of Services: Duties and responsibilities typical of a Chief
Financial Officer of a publicly held company, with the exception that it is expressly
understood and agreed that FLG Member will not be required to sign documents for any public
filings, and that a current employee of Client shall be appointed interim Chief Accounting
Officer for purposes of signing any required public filings. Assist in selection and
hiring of full time CFO as requested.
 2.
    
    FLG Member: James D. Pardee.
 3.
    
    Fees: $300 per hour.
 4.
    
    Additional Compensation: None.
 5.
    
    Deposit: $15,000.00.
 6.
    
    Term: Client is currently engaged in an external search for a full time CFO.
This engagement with FLG will terminate after a turnover to the new CFO on a schedule be
determined by Client with 2 weeks notice to FLG.
 7.
    
    Non-Disclosure Agreement:
 a.
    
    FLG-Client Mutual Non-Disclosure Agreement dated July 31, 2007.
 Page 5 of 5