Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Terrace Ventures Inc. - Exhibit 10.3

DIRECTOR / OFFICER NON-QUALIFIED STOCK OPTION AGREEMENT OF

TERRACE VENTURES INC.
A Nevada Corporation

THIS AGREEMENT is made between TERRACE VENTURES
INC., a Nevada corporation (hereinafter referred to as the "Company"), and
HOWARD THOMSON of 4734 S. Golf Course Drive Blaine, WA 98230 (hereinafter
referred to as the “Optionee”), a director or officer of the Company, effective
as of the 21st day of March, 2006.

1.       Option
Granted

The Company hereby grants the Optionee a non-qualified option
to purchase Two Hundred Thousand (200,000) shares of the Company’s Common
Stock at a purchase price of $0.27 US per share for a term commencing on the
effective date of this Agreement and expiring at 5:00 pm (Pacific Time) on the
21st day of March, 2008 (the “Expiration Date”), subject to termination as set
forth herein. All options will be fully vested upon execution of this
Agreement.

2.       Time of Exercise
of Option

The Optionee may exercise the option granted herein at any time
after the effective date of this Agreement until the date of termination of the
option as provided herein.

3.       Method of
Exercise

This option shall be exercised by written notice delivered to
the Company at its principal place of business, stating the number of shares for
which the option is being exercised. The notice must be accompanied by a check
or other methods of payment acceptable to the Plan Administrator for the amount
of the purchase price, and comply with all the requirements of the Company’s
2006 Stock Incentive Plan dated March 21, 2006, attached hereto and made a part
hereof by this reference.

4.       Capital
Adjustments

The existence of this option shall not affect in any way the
right or power of the Company or its stockholders to: (1) make or authorize any
or all adjustments, recapitalizations, reorganizations, or other changes in the
Company's capital structure or its business; (2) enter into any merger or
consolidation; (3) issue any bonds, debentures, preferred or prior preference
stocks ahead of or affecting the common stock or the rights thereof, (4) issue
any securities convertible into any common stock, (5) issue any rights, options,
or warrants to purchase any common stock, (6) dissolve or liquidate the Company,
(7) sell or transfer all or any part of its assets or business, or (8) take any
other corporate act or proceedings, whether of a similar character or
otherwise.

5.       Reorganization,
Merger, Amalgamation and Consolidation

If there shall, prior to the exercise of any of the options
provided for by this Agreement, be any reorganization of the authorized capital
of the Company by way of consolidation, merger, subdivision, amalgamation or
otherwise, or the payment of any stock dividends, then there shall automatically
be an adjustment in either or both of the number of shares which may be
purchased pursuant hereto or the price at which such shares may be purchased so
that the rights evidenced hereby shall thereafter as reasonably as possible be
equivalent to those originally granted hereby. The Company shall have the sole
and exclusive power to make such adjustments as it considers necessary and
desirable.

- 2 -

In the event of a complete liquidation of the Company or a
merger, reorganization, or consolidation of the Company with any other
corporation in which the Company is not the surviving corporation, or the
Company becomes a wholly-owned subsidiary of another corporation, any
unexercised options granted under this Agreement shall be deemed cancelled
unless the surviving corporation in any such merger, reorganization, or
consolidation elects to assume the options under this Agreement or to issue
substitute options in place thereof; provided, however, that notwithstanding the
foregoing, if such options would be cancelled in accordance with the foregoing,
the Optionee shall have the right exercisable during a ten-day period ending on
the fifth day prior to such liquidation, merger, or consolidation to exercise
such option in whole or in part without regard to any installment exercise
provisions in this Agreement.

6.       Transfer of this
Option

During the Optionee's lifetime, this option shall be
exercisable only by the Optionee. This option shall not be transferable by the
Optionee other than by the laws of descent and distribution upon the Optionee's
death. In the event of the Optionee's death during the term of this Agreement,
the Optionee's personal representatives may exercise any portion of this option
that remains vested and unexercised at the time of the Optionee's death,
provided that any such exercise must be made, if at all, during the period
within six (6) months after the Optionee's death, and subject to the option
termination date specified in Paragraph 7(d) below.

7.       Termination of
Option

This Agreement and the Optionee's right to exercise any options
shall terminate on the earliest of the following dates:

	 	(a) 	
      Subject to subsection (b) below, the date which is thirty
      (30) days from the later of the dates on which: (i) the Optionee ceases to
      act as a director or officer of the Company or any subsidiary of the
      Company; (ii) the Optionee ceases to be engaged as a consultant of the
      Company or any subsidiary of the Company, if applicable; (iii) the
      Optionee ceases to be an employee of the Company or any subsidiary of the
      Company, if applicable;

	 	 	 
	 	(b) 	
      In the event of the termination of the Optionee as a
      director, officer, employee or consultant as a result of a breach of the
      Optionee’s obligations to the Company or any subsidiary of the Company,
      the earliest date on which the Optionee is terminated as a director,
      officer, employee or consultant;

	 	 	 
	 	(c) 	
      The date which is six months from the date of the
      Optionee's death, in the event of termination as a result of the death of
      the Optionee; or

	 	 	 
	 	(d) 	
      The Expiration Date.

8.       Rights as
Shareholder

The Optionee will not be deemed to be a holder of any shares
pursuant to the exercise of this option until he or she pays the option price
and a stock certificate is delivered to him or her for those shares. No
adjustment shall be made for dividends or other rights for which the record date
is prior to the date the stock certificate is delivered.

- 3 -

9.       Integration with
the Company’s 2006 Stock Incentive Plan

All of the terms and conditions of the Company’s 2006 Stock
Incentive Plan, attached hereto and made a part hereof by this reference, are
specifically made a part of this Agreement and shall control with regard to the
interpretation or construction of any provision that is inconsistent herewith.
This Agreement will be governed by and construed in accordance with the laws of
the State of Nevada.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the 21st day of March, 2006.

TERRACE VENTURES INC. 
by its authorized
signatory:

	/s/ Gordon F.
      Burley 	 
	GORDON F. BURLEY, DIRECTOR 	 
	 	 
	 	 
	OPTIONEE: 	 
	 	 
	/s/ Howard
      Thomson 	 
	SIGNATURE OF DIRECTOR / OFFICER 	 
	 	 
	HOWARD
      THOMSON 	 
	NAME OF DIRECTOR / OFFICER 	 
	 	 
	4734 S. Golf
      Course Drive 	 
	ADDRESS 	 
	 	 
	Blaine, WA 98230
    	 
	 	 
	200,000 	 
	NUMBER OF OPTIONSFiled by Automated Filing Services Inc. (604) 609-0244 - Terrace Ventures Inc. - Exhibit 10.4

MANAGEMENT CONSULTANT AGREEMENT

This Management Consultant Agreement (the "Agreement") is made
and entered into effective as of the 21st day of March, 2006 (the
"Effective Date"), between TERRACE VENTURES INC., a Nevada corporation,
(the "Company") and HOWARD THOMSON (the “Consultant”).

WHEREAS:

A.       The
Company is engaged in the business of mineral exploration.

B.       The
Company desires to retain the Consultant to act as President, Secretary,
Treasurer, Chief Executive Officer and Chief Financial Officer of the Company
and to provide consultant services to the Company on the terms and subject to
the conditions of this Agreement.

C.       The
Consultant has agreed to act as President, Secretary, Treasurer, Chief Executive
Officer and Chief Financial Officer of the Company and to provide consultant
services to the Company on the terms and subject to the conditions of this
Agreement.

THIS AGREEMENT WITNESSES THAT in consideration of the
premises and mutual covenants contained in this Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound hereby, agree as
follows:

1.        
DEFINITIONS

1.1       The
following terms used in this Agreement shall have the meaning specified below
unless the context clearly indicates the contrary:

	 	(a) 	
      "Consultant Fee" shall mean the consultant fee
      payable to the Consultant at the rate set forth in Section 5.1;

	 	 	 
	 	(b) 	
      "Board" shall mean the Board of Directors of the
      Company;

	 	 	 
	 	(c) 	
      "Term" shall mean the term of this Agreement
      beginning on the Effective Date and ending on the close of business on the
      date of the termination of this Agreement.

2.        
ENGAGEMENT AS A CONSULTANT

2.1       The
Company hereby engages the Consultant as a consultant to provide the services of
the Consultant in accordance with the terms and conditions of this Agreement and
the Consultant hereby accepts such engagement.

3.         TERM OF
THIS AGREEMENT

3.1       The
term of this Agreement shall become effective and begin as of the Effective
Date, and shall continue until the close of business on March 21, 2008, unless
this Agreement is earlier terminated in accordance with the terms of this
Agreement or extended by the Board of Directors of the Company.

2

4.        
CONSULTANT SERVICES

4.1       The
Consultant agrees to act as President, Secretary, Treasurer, Chief Executive
Officer and Chief Financial Officer of the Company and to perform the following
services and undertake the following responsibilities and duties to the Company
as consulting services (the "Consulting Services"):

	 	(a) 	
      exercising general direction and supervision over the
      business and financial affairs of the Company;

	 	 	 
	 	(b) 	
      providing overall direction to the management of the
      Company;

	 	 	 
	 	(c) 	
      reporting directly to board of directors of
    Company;

	 	 	 
	 	(d) 	
      performing such other duties and observing such
      instructions as may be reasonably assigned from time to time by or on
      behalf of the board of directors of the Company in the Consultant’s
      capacity as President, Secretary, Treasurer, Chief Executive Officer and
      Chief Financial Officer, provided such duties are within the scope of the
      Company’s business and implementation of the Company’s business
    plan.

4.2       The
Consultant shall devote such attention and energies to the business affairs of
the Company as may be reasonably necessary for the discharge of his duties as
President, Secretary, Treasurer, Chief Executive Officer and Chief Financial
Officer, provided, however, the Consultant may engage in reasonable investment
and other personal activities that do not interfere with the Consultant's
obligations hereunder. 

4.3       The
Consultant will at all times be an independent contractor and the Consultant
will not be deemed to be an employee of the Company.

5.        
CONSULTANT FEE

5.1       During
the term of this Agreement, the Company shall pay the Consultant a consultant
fee in consideration of the provision of the Consulting Services equal $2,500 US
per month (the "Consultant Fee"). Notwithstanding the date of this Agreement,
the Consultant shall be entitled to receive the $2,500 Consultant Fee in respect
of the month of February, 2006.

6.         STOCK
OPTIONS

6.1       The
Consultant may be granted, subject to the approval of the Company’s board of
directors, incentive stock options to purchase shares of the Company’s common
stock in such amounts and at such times as the Board of Directors of the
Company, in their absolute discretion, may from time to time determine.

7.        
REIMBURSEMENT OF EXPENSES

7.1       The
Company will pay to the Consultant, in addition to the Consultant Fee, the
reasonable travel and promotional expenses and other specific expenses incurred
by the Consultant in provision of the Consulting Services, provided the
Consultant has obtained the prior written approval of the Company. 

3

8.        
TERMINATION

8.1       The
Company may terminate this Agreement: (i) at any time on three months’ notice;
or (ii) without notice upon the occurrence of any of the following events of
default (each an “Event of Default”):

	 	(a) 	
      the Consultant’s commission of an act of fraud, theft or
      embezzlement or other similar willful misconduct;

	 	 	 
	 	(b) 	
      the neglect or breach by the Consultant of his material
      obligations or agreements under this Agreement; or

	 	 	 
	 	(c) 	
      the Consultant’s refusal to follow lawful directives of
      the Board,

provided that notice of the Event of Default has been delivered
to the Consultant and provided the Consultant has failed to remedy the default
within thirty days of the date of delivery of notice of the Event of
Default.

8.2       The
Consultant may terminate this Agreement at any time upon thirty days’
notice.

8.3       On
termination of this Agreement for any reason, all rights and obligations of each
party that are expressly stated to survive termination or continue after
termination will survive termination and continue in full force and effect as
contemplated in this Agreement.

9.        
PROPRIETARY INFORMATION AND DEVELOPMENTS

9.1       The
Consultant will not at any time, whether during or after the termination of this
Agreement for any reason, reveal to any person or entity any of the trade
secrets or confidential information concerning the organization, business or
finances of the Company or of any third party which the Company is under an
obligation to keep confidential, except as may be required in the ordinary
course of performing the Consultant Services to the Company, and the Consultant
shall keep secret such trade secrets and confidential information and shall not
use or attempt to use any such secrets or information in any manner which is
designed to injure or cause loss to the Company. Trade secrets or confidential
information shall include, but not be limited to, the Company's financial
statements and projections, expansion proposals, property acquisition
opportunities and business relationships with banks, lenders and other parties
not otherwise publicly available.

10.        RELIEF

10.1      The
Consultant hereby expressly acknowledges that any breach or threatened breach by
the Consultant of any of the terms set forth in Section 9 of this Agreement may
result in significant and continuing injury to the Company, the monetary value
of which would be impossible to establish, and any such breach or threatened
breach will provide the Company with any and all rights and remedies to which it
may be entitled under the law, including but not limited to injunctive relief or
other equitable remedies.

4

11.        PARTIES
BENEFITED; ASSIGNMENTS

11.1      This
Agreement shall be binding upon, and inure to the benefit of, the Consultant,
his heirs and his personal representative or representatives, and upon the
Company and its successors and assigns. Neither this Agreement nor any rights or
obligations hereunder may be assigned by the Consultant.

12.      
 NOTICES

12.1      Any
notice required or permitted by this Agreement shall be in writing, sent by
registered or certified mail, return receipt requested, or by overnight courier,
addressed to the Board and the Company at its then principal office, or to the
Consultant at the address set forth in the preamble, as the case may be, or to
such other address or addresses as any party hereto may from time to time
specify in writing for the purpose in a notice given to the other parties in
compliance with this Section 12. Notices shall be deemed given when
delivered.

13.        GOVERNING
LAW

13.1      This
Agreement shall be governed by and construed in accordance with the laws of the
Sate of Washington and each party hereto adjourns to the jurisdiction of the
courts of the Sate of Washington. 

14.       
REPRESENTATIONS AND WARRANTIES

14.1      The
Consultant represents and warrants to the Company that (a) the Consultant is
under no contractual or other restriction which is inconsistent with the
execution of this Agreement, the performance of his duties hereunder or other
rights of Company hereunder, and (b) the Consultant is under no physical or
mental disability that would hinder the performance of his duties under this
Agreement.

15.       
MISCELLANEOUS

15.1      This
Agreement contains the entire agreement of the parties relating to the subject
matter hereof. 

15.2      This
Agreement supersedes any prior written or oral agreements or understandings
between the parties relating to the subject matter hereof.

15.3      No
modification or amendment of this Agreement shall be valid unless in writing and
signed by or on behalf of the parties hereto.

15.4      A
waiver of the breach of any term or condition of this Agreement shall not be
deemed to constitute a waiver of any subsequent breach of the same or any other
term or condition. 

15.5      This
Agreement is intended to be performed in accordance with, and only to the extent
permitted by, all applicable laws, ordinances, rules and regulations. If any
provision of this Agreement, or the application thereof to any person or
circumstance, shall, for any reason and to any extent, be held invalid or
unenforceable, such invalidity and unenforceability shall not affect the
remaining provisions hereof and the application of such provisions to other
persons or circumstances, all of which shall be enforced to the greatest extent
permitted by law. 

5

15.6      The
headings in this Agreement are inserted for convenience of reference only and
shall not be a part of or control or affect the meaning of any provision
hereof.

15.7      The
Consultant acknowledges and agrees that O'Neill Law Group PLLC has acted solely
as legal counsel for the Company and that the Consultant has been advised to
obtain independent legal advice prior to execution of this Agreement.

15.8      This
Agreement may be executed in one or more counter-parts, each of which so
executed shall constitute an original and all of which together shall constitute
one and the same agreement.

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

TERRACE VENTURES INC. 
by its authorized
signatory:

 

	/s/ Gordon F. Burley 	 
	GORDON F. BURLEY, DIRECTOR 	 

	SIGNED, SEALED AND DELIVERED 	 	  
	BY HOWARD THOMSON 	 	  
	in the presence of: 	 	  
	  	 	  
	  	 	  
	/s/ Dianne
      Lum 	 	/s/
      Howard Thomson 
	Signature 	 	HOWARD THOMSON 
	  	 	  
	  	 	  
	Dianne Lum 	 	  
	Name 	 	  
	  	 	  
	  	 	  
	4035 Fir St. 	 	  
	Address 	 	  
	  	 	  
	  	 	  
	Burnaby, BC V5G
      2A9

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