Document:

WARRANT

    

    Warrant
      No. W-__

    

    

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD
      OR
      OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH
      ACT.

    

    SURFECT
      HOLDINGS, INC.

    COMMON
      STOCK PURCHASE WARRANT

    

    This
      certifies that, for good and valuable consideration, Surfect Holdings, Inc.,
      a
      Delaware corporation (the "Company"), grants to __________________ (the
      "Warrantholder"), the right to subscribe for and purchase from the Company
      _______validly issued, fully paid and nonassessable shares (the "Warrant
      Shares") of the Company's Common Stock, $0.0001 par value (the "Common Stock"),
      at the purchase price per share of $2.00 (the "Exercise Price"), exercisable
      at
      any time and from time to time during the period (the "Exercise Period")
      commencing on the date hereof and ending on the fourth anniversary of the date
      hereof, all subject to the terms, conditions and adjustments herein set
      forth.

    

    1.
      DURATION AND EXERCISE OF WARRANT; CALL OF WARRANT; PAYMENT OF TAXES;
      INFORMATION.

    

    1.1
      DURATION AND EXERCISE OF WARRANT.

    

    (a)
      EXERCISE. This Warrant may be exercised in whole or in part by the Warrantholder
      by (i) the surrender of this Warrant to the Company, with a duly executed
      Exercise Form attached hereto as Exhibit A specifying the number of Warrant
      Shares to be purchased, during normal business hours on any Business Day during
      the Exercise Period and (ii) the delivery of payment to the Company, for the
      account of the Company, by wire transfer to a bank account specified by the
      Company of the Exercise Price for the number of Warrant Shares specified in
      the
      Exercise Form. 

    

    (b)
      PROCEDURAL ISSUES. All Warrant Shares issued pursuant to this Section 1.1 shall
      be deemed to be issued to the Warrantholder as the record holder of such Warrant
      Shares as of the close of business on the date on which this Warrant shall
      have
      been surrendered and payment made for the Warrant Shares. A stock certificate
      or
      certificates for the Warrant Shares specified in the Exercise Form shall be
      delivered to the Warrantholder as promptly as practicable, and in any event
      within three Business Days, thereafter. If this Warrant shall have been
      exercised only in part, the Company shall, at the time of delivery of the stock
      certificate or certificates, deliver to the Warrantholder a new Warrant
      evidencing the rights to purchase the remaining Warrant Shares, which new
      Warrant shall in all other respects be identical with this Warrant. No
      adjustments shall be made on Warrant Shares issuable on the exercise of this
      Warrant for any cash dividends paid or payable to holders of record of Common
      Stock prior to the date as of which the Warrantholder shall be deemed to be
      the
      record holder of such Warrant Shares.

    

    1.2
      CALL
      OF WARRANT BY COMPANY. 

     

    (a)
      CALL
      OPTION. If at any time prior to the exercise of this Warrant in full and
      provided that the Warrant Shares shall have been registered under the Securities
      Act of 1933 (the “Securities Act”), the fair market value (as defined below) of
      one share of the Company's Common Stock remains equal to or greater than $3.00
      over any consecutive 20 day period (the "Threshold Period"), the Company shall
      have the option to purchase this Warrant from Warrantholder for $0.05 per
      Warrant Share. To exercise this call option, the Company shall, within 30 days
      following termination of the Threshold Period, and at least 30 days prior to
      exercise of the option, provide the Warrantholder with written notice specifying
      the date the option will be exercised. The Warrantholder then shall have 10
      days
      after receipt of such notice to exercise its rights under this
      Warrant.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    If
      the
      Company fails to exercise this call option in the manner and within the time
      periods specified in this Section 1.2, the Company shall be deemed to have
      waived its right to invoke such option and Warrantholder shall retain all rights
      granted to it under this Warrant as though the Threshold Period had never
      occurred; PROVIDED, HOWEVER, that the Company's call option shall be revived
      should the Company's Common Stock again trade at or above $3.00 for an
      additional Threshold Period following any previous waiver by the Company of
      such
      option.

    

    (b)
      FAIR
      MARKET VALUE. For purposes of Section 1.2, fair market value of one share of
      the
      Company's Common Stock shall mean:

    

    (i)
      the
      closing price per share of the Company's Common Stock on the principal
      securities exchange on which the Common Stock is listed or admitted to trading
      or,

    

    (ii)
      if
      not listed or traded on any securities exchange, the average of the bid and
      asked price per share as reported in the Nasdaq Bulletin Board or in the "pink
      sheets” published by the National Quotation Bureau, Inc.

     

    1.3
      PAYMENT OF TAXES. The issuance of certificates for Warrant Shares shall be
      made
      without charge to the Warrantholder for any stock transfer or other issuance
      tax
      in respect thereto; PROVIDED, HOWEVER, that the Warrantholder shall be required
      to pay any and all taxes which may be payable in respect of any transfer
      involved in the issuance and delivery of any certificate in a name other than
      that of the then Warrantholder as reflected upon the books of the
      Company.

    

    1.4
      INFORMATION. Upon receipt of a written request from a Warrantholder, the Company
      agrees to deliver promptly to such Warrantholder a copy of its current publicly
      available financial statements and to provide such other publicly available
      information concerning the business and operations of the Company as such
      Warrantholder may reasonably request in order to assist the Warrantholder in
      evaluating the merits and risks of exercising the Warrant and to make an
      informed investment decision in connection with such exercise.

    

    2.
      RESTRICTIONS ON TRANSFER; RESTRICTIVE LEGENDS.

    

    2.1
      RESTRICTIONS ON TRANSFER; COMPLIANCE WITH SECURITIES LAWS. This Warrant or
      the
      Warrant Shares issued upon the exercise of this Warrant may not be transferred
      or assigned in whole or in part without compliance with all applicable federal
      and state securities laws by the transferor and transferee (including the
      delivery of investment representation letters and legal opinions reasonably
      satisfactory to the Company, if such are requested by the Company). The
      Warrantholder, by acceptance hereof, acknowledges that this Warrant and the
      Warrant Shares to be issued upon exercise hereof are being acquired solely
      for
      the Warrantholder's own account and not as a nominee for any other party, and
      for investment, and that the Warrantholder will not offer, sell or otherwise
      dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof
      except under circumstances that will not result in a violation of the Securities
      Act or any state securities laws.

    

    
      
         

      

      
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    2.2
      RESTRICTIVE LEGENDS. This Warrant shall (and each Warrant issued in substitution
      for this Warrant issued pursuant to Section 4 shall) be stamped or otherwise
      imprinted with a legend in substantially the following form:

    

    "THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD
      OR
      OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH
      ACT."

    

    Except
      as
      otherwise permitted by this Section 2, each stock certificate for Warrant Shares
      issued upon the exercise of any Warrant and each stock certificate issued upon
      the direct or indirect transfer of any such Warrant Shares shall be stamped
      or
      otherwise imprinted with a legend in substantially the following
      form:

    

    “THE
      SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
      EXCEPT
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT
      TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.”

     

    Notwithstanding
      the foregoing, the Warrantholder may require the Company to issue a stock
      certificate for Warrant Shares without a legend if (i) such Warrant Shares,
      as
      the case may be, have been registered for resale under the Securities Act or
      sold pursuant to Rule 144 under the Securities Act (or a successor rule thereto)
      or (ii) the Warrantholder has provided an opinion of counsel addressed to the
      Company and reasonably satisfactory to the Company that such registration is
      not
      required with respect to such Warrant Shares.

    

    3.
      RESERVATION OF SHARES, ETC.

     

    The
      Company covenants and agrees that all Warrant Shares which are issued upon
      the
      exercise of this Warrant will, upon issuance, be validly issued, fully paid
      and
      nonassessable and free from all taxes, liens, security interests, charges and
      other encumbrances with respect to the issue thereof, other than taxes in
      respect of any transfer occurring contemporaneously with such issue. The Company
      further covenants and agrees that, during the Exercise Period, the Company
      will
      at all times have authorized and reserved, and keep available free from
      preemptive rights, a sufficient number of shares of Common Stock to provide
      for
      the exercise of the rights represented by this Warrant. 

    

    4.
      EXCHANGE, LOSS OR DESTRUCTION OF WARRANT.

    

    Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Warrant and, in the case of loss,
      theft
      or destruction, of such bond or indemnification as the Company reasonably may
      require, and, in the case of such mutilation, upon surrender and cancellation
      of
      this Warrant, the Company will execute and deliver a new Warrant of like tenor.
      The term "Warrant" as used in this agreement shall be deemed to include any
      Warrants issued in substitution or exchange for this Warrant.

    

    
      
         

      

      
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    5.
      OWNERSHIP OF WARRANT.

    

    The
      Company may deem and treat the person in whose name this Warrant is registered
      as the holder and owner hereof (notwithstanding any notations of ownership
      or
      writing hereon made by anyone other than the Company) for all purposes and
      shall
      not be affected by any notice to the contrary.

    

    6.
      CERTAIN ADJUSTMENTS.

    

    6.1
      The
      number of Warrant Shares purchasable upon the exercise of this Warrant and
      the
      Exercise Price shall be subject to adjustment as follows:

    

    (a)
      STOCK
      DIVIDENDS. If at any time prior to the exercise of this Warrant in full (i)
      the
      Company shall fix a record date for the issuance of any stock dividend payable
      in shares of Common Stock or (ii) the number of shares of Common Stock shall
      have been increased by a subdivision or split-up of shares of

    Common
      Stock, then, on the record date fixed for the determination of holders of Common
      Stock entitled to receive such dividend or immediately after the effective
      date
      of subdivision or split-up, as the case may be, the number of shares of Common
      Stock to be delivered upon exercise of this Warrant will be increased so that
      the Warrantholder will be entitled to receive the number of shares of Common
      Stock that such Warrantholder would have owned immediately following such action
      had this Warrant been exercised immediately prior thereto, and the Exercise
      Price will be adjusted as provided below in paragraph (e).

    

    (b)
      COMBINATION OF STOCK. If at any time prior to the exercise of this Warrant
      in
      full the number of shares of Common Stock outstanding shall have been decreased
      by a combination of the outstanding shares of Common Stock, then, immediately
      after the effective date of such combination, the number of shares of Common
      Stock to be delivered upon exercise of this Warrant will be decreased so that
      the Warrantholder thereafter will be entitled to receive the number of shares
      of
      Common Stock that such Warrantholder would have owned immediately following
      such
      action had this Warrant been exercised immediately prior thereto, and the
      Exercise Price will be adjusted as provided below in paragraph (e).

    

    (c)
      REORGANIZATION, ETC. If at any time prior to the exercise of this Warrant in
      full any capital reorganization of the Company, or any reclassification of
      the
      Common Stock, or any consolidation of the Company with or merger of the Company
      with or into any other person or any sale, lease or other transfer of all or
      substantially all of the assets of the Company to any other person, shall be
      effected in such a way that the holders of Common Stock shall be entitled to
      receive stock, other securities or assets, including cash (whether such stock,
      other securities or assets are issued or distributed by the Company or another
      person) with respect to or in exchange for Common Stock, then, upon exercise
      of
      this Warrant the Warrantholder shall have the right to receive the kind and
      amount of stock, other securities or assets receivable upon such reorganization,
      reclassification, consolidation, merger or sale, lease or other transfer by
      a
      holder of the number of shares of Common Stock that such Warrantholder would
      have been entitled to receive upon exercise of this Warrant had this Warrant
      been exercised immediately before such reorganization, reclassification,
      consolidation, merger or sale, lease or other transfer, subject to adjustments
      that shall be as nearly equivalent as may be practicable to the adjustments
      provided for in this Section 6.

    

    (d)
      FRACTIONAL SHARES. No fractional shares of Common Stock or scrip shall be issued
      to any Warrantholder in connection with the exercise of this Warrant. Instead
      of
      any fractional shares of Common Stock that would otherwise be issuable to such
      Warrantholder, the Company will pay to such Warrantholder a cash adjustment
      in
      respect of such fractional interest in an amount equal to that fractional
      interest of the then current fair market value per share of Common Stock.

    

    
      
         

      

      
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    (e)
      EXERCISE PRICE ADJUSTMENT. Whenever the number of Warrant Shares purchasable
      upon the exercise of the Warrant is adjusted, as herein provided, the Exercise
      Price payable upon the exercise of this Warrant shall be adjusted by multiplying
      such Exercise Price immediately prior to such adjustment by a fraction, of
      which
      the numerator shall be the number of Warrant Shares purchasable upon the
      exercise of the Warrant immediately prior to such adjustment, and of which
      the
      denominator shall be the number of Warrant Shares purchasable immediately
      thereafter.

    

    (f)
      NO
      DUPLICATE ADJUSTMENTS. Notwithstanding anything else to the contrary contained
      herein, in no event will an adjustment be made under the provisions of this
      Section 6 to the number of Warrant Shares issuable upon exercise of this Warrant
      or the Exercise Price for any event if an adjustment

    having
      substantially the same effect to the Warrantholder as any adjustment that
      otherwise would be made under the provisions of this Section 6 is made by the
      Company for any such event to the number of shares of Common Stock (or other
      securities) issuable upon exercise of this Warrant.

    

    6.2
      NO
      ADJUSTMENT FOR DIVIDENDS. Except as provided in Section 6.1, no adjustment
      in
      respect of any dividends shall be made during the term of the Warrant or upon
      the exercise of this Warrant.

    

    6.3
      NOTICE OF ADJUSTMENT. Whenever the number of Warrant Shares or the Exercise
      Price of such Warrant Shares is adjusted, as herein provided, the Company shall
      promptly mail by first class, postage prepaid, to the Warrantholder, notice
      of
      such adjustment or adjustments and a certificate of the chief financial officer
      of the Company setting forth the number of Warrant Shares and the Exercise
      Price
      of such Warrant Shares after such adjustment, setting forth a brief statement
      of
      the facts requiring such adjustment and setting forth the computation by which
      such adjustment was made.

    

    7.
      NOTICES OF CORPORATE ACTION.

    

    In
      the
      event of

    

    (a)
      any
      taking by the Company of a record of the holders of any class of securities
      for
      the purpose of determining the holders thereof who are entitled to receive
      any
      dividend or other distribution, or any right to subscribe for, purchase or
      otherwise acquire any shares of stock of any class or any other securities
      or
      property, or to receive any other right, or

    

    (b)
      any
      capital reorganization of the Company, any reclassification or recapitalization
      of the capital stock of the Company or any Change of Control, or

    

    (c)
      any
      voluntary or involuntary dissolution, liquidation or winding-up of the
      Company,

    

    the
      Company will mail to the Warrantholder a notice specifying (i) the date or
      expected date on which any such record is to be taken for the purpose of such
      dividend, distribution or right and the amount and character of any such
      dividend, distribution or right, (ii) the date or expected date on which any
      such reorganization, reclassification, recapitalization, Change of Control,
      dissolution, liquidation or winding-up is to take place and the time, if any
      such time is to be fixed, as of which the holders of record of Common Stock
      (or
      other securities) shall be entitled to exchange their shares of Common Stock
      (or
      other securities) for the securities or other property deliverable upon such
      reorganization, reclassification, recapitalization, Change of Control,
      dissolution, liquidation or winding-up and (iii) that in the event of a Change
      of Control, the Warrants are exercisable immediately prior to the consummation
      of such Change of Control. Such notice shall be mailed at least 10 days prior
      to
      the date therein specified, in the case of any date referred to in the foregoing
      subdivision (i), and at least 10 days prior to the date therein specified,
      in
      the case of the date referred to in the foregoing subdivision (ii).

    

    
      
         

      

      
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    8.
      DEFINITIONS.

    

    As
      used
      herein, unless the context otherwise requires, the following terms have the
      following respective meanings:

    

    BUSINESS
      DAY: any day other than a Saturday, Sunday or a day on which national banks
      are
      authorized by law to close in the City of New York, State of New
      York.

    

    CHANGE
      OF
      CONTROL: shall mean (i) the consolidation of the Company with or merger of
      the
      Company with or into any other person in which the Company is not the surviving
      corporation, (ii) the sale of all or substantially all of the assets of the
      Company to any other person or (iii) any sale or transfer by the Company of
      any
      capital stock of the Company after the date of this agreement, following which
      more than 50% of the combined voting power of the Company becomes beneficially
      owned by one person or group acting together. For purposes of this definition,
      "group" shall have the meaning as such term is used in Section 13(d)(1) under
      the Exchange Act.

    

    EXCHANGE
      ACT: the Securities Exchange Act of 1934, as amended, or any successor federal
      statute, and the rules and regulations of the SEC thereunder, all as the same
      shall be in effect at the time. Reference to a particular section of the
      Securities Exchange Act of 1934, as amended, shall include a

    reference
      to a comparable section, if any, of any successor federal statute.

    

    EXERCISE
      FORM: an Exercise Form in the form annexed hereto as Exhibit A.

    

    EXERCISE
      PRICE: the meaning specified on the cover of this Warrant, as such price may
      be
      adjusted pursuant to Section 6 hereof.

    

    SEC:
      the
      Securities and Exchange Commission or any other federal agency at the time
      administering the Securities Act or the Exchange Act, whichever is the relevant
      statute for the particular purpose.

    

    SECURITIES
      ACT: the Securities Act of 1933, as amended, or any successor federal statute,
      and the rules and regulations of the Commission thereunder, all as the same
      shall be in effect at the time. Reference to a particular section of the
      Securities Act of 1933, as amended, shall include a reference to the comparable
      section, if any, of any successor federal statute.

    

    9.
      MISCELLANEOUS.

    

    9.1
      ENTIRE AGREEMENT. This Warrant constitutes the entire agreement between the
      Company and the Warrantholder with respect to this Warrant and supersede all
      prior agreements and understandings, both written and oral, with regard to
      the
      subject matter hereof.

    

    9.2
      BINDING EFFECTS; BENEFITS. This Warrant shall inure to the benefit of and shall
      be binding upon the Company and the Warrantholder and their respective
      successors. Nothing in this Warrant, expressed or implied, is intended to or
      shall confer on any person other than the Company and the Warrantholder, or
      their respective successors, any rights, remedies, obligations or liabilities
      under or by reason of this Warrant.

    

    9.3
      AMENDMENTS AND WAIVERS. This Warrant may not be modified or amended except
      by an
      instrument or instruments in writing signed by the Company and the
      Warrantholder. Either the Company or the Warrantholder may, by an instrument
      in
      writing, waive compliance by the other party with any term or provision of
      this
      Warrant on the part of such other party hereto to be performed or complied
      with.
      The waiver by any such party of a breach of any term or provision of this
      Warrant shall not be construed as a waiver of any subsequent
      breach.

    

    
      
         

      

      
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    9.4
      SECTION AND OTHER HEADINGS. The section and other headings contained in this
      Warrant are for reference purposes only and shall not be deemed to be a part
      of
      this Warrant or to affect the meaning or interpretation of this
      Warrant.

    

    9.5
      FURTHER ASSURANCES. Each of the Company and the Warrantholder shall do and
      perform all such further acts and things and execute and deliver all such other
      certificates, instruments and documents as the Company or the Warrantholder
      may,
      at any time and from time to time, reasonably request in connection with the
      performance of any of the provisions of this agreement.

    

    9.6
      NOTICES. All notices and other communications required or permitted to be given
      under this Warrant shall be in writing and shall be deemed to have been duly
      given if delivered personally or sent by United States mail, postage prepaid,
      to
      the parties hereto at the following addresses or to such other

    address
      as any party hereto shall hereafter specify by notice to the other party
      hereto:

    

    (a)
      if to
      the Company, addressed to:

     

    12000-G
      Candelaria NE

    Albuquerque,
      NM 87112 

    

    (b)
      if to
      the Warrantholder, addressed to the Warrantholder’s address in the Company’s
      records.

    

    Except
      as
      otherwise provided herein, all such notices and communications shall be deemed
      to have been received on the date of delivery thereof, if delivered personally,
      or on the third Business Day after the mailing thereof.

    

    9.7
      SEVERABILITY. Any term or provision of this Warrant which is invalid or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such invalidity or unenforceability without rendering invalid
      or unenforceable the terms and provisions of this Warrant or affecting the
      validity or enforceability of any of the terms or provisions of this Warrant
      in
      any other jurisdiction.

    

    9.8
      GOVERNING LAW. This Warrant shall be governed by and interpreted in accordance
      with the laws of the State of Delaware, except as they may be preempted by
      federal law. In any action brought or arising out of this Warrant, the
      Warrantholder and the Company hereby consent to the jurisdiction of any federal
      or state court having proper venue within the State of New Mexico and also
      consent to the service of process by any means authorized by New Mexico or
      federal law.

    

    9.9
      TERMINATION. This Warrant shall expire at 5:00 P.M., Pacific standard time,
      on
      the fourth anniversary hereof. 

    

    9.10
      NO
      RIGHTS OR LIABILITIES AS STOCKHOLDER. Nothing contained in this Warrant shall
      be
      determined as conferring upon the Warrantholder any rights as a stockholder
      of
      the Company until the Warrantholder exercises this Warrant in whole or in part,
      or as imposing any liabilities on the Warrantholder to purchase any securities
      whether such liabilities are asserted by the Company or by creditors or
      stockholders of the Company or otherwise.

    

    
      
         

      

      
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    9.11 REGISTRATION
      RIGHTS. 

    

    (a)
      In
      the event of a public offering or any other registration of the Company’s Common
      Stock or such other type or class of stock or securities issued or issuable
      upon
      exercise of this Warrant, the Warrantholder shall enjoy and be entitled to
      standard piggyback registration rights granted by the Company to any shareholder
      on terms no less favorable than granted to any such shareholder with respect
      to
      the securities issued or issuable upon exercise this Warrant.

    

    (b)
      This
      Section 9.11 comprises the sole obligation of the Company to register any of
      the
      Warrant Shares or such other or additional stock or securities that this Warrant
      represents the right to acquire. The Warrantholder does not have any “demand”
registration rights with respect to any securities issued upon exercise of
      this
      Warrant.

     

    (c)
      The
      Company shall promptly deliver to the Warrantholder a notice of any public
      offering or other registration of the Company’s Common Stock or other type or
      class of stock or securities that have been issued or may be issuable upon
      exercise of this Warrant. The Company shall deliver such notice to the
      Warrantholder in a manner and at a time sufficient to permit the Warrantholder
      to enjoy the piggyback registration rights as provided in this
      Section 

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
      authorized officer.

    

    Dated:
      September 27, 2006.

    

    

    SURFECT
      HOLDINGS, INC.

    

    

    By________________________________
      

     

    Title______________________________

     

    
      
         

      

      
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    EXHIBIT
      A

    

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD
      OR
      OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH
      ACT.

    

    EXERCISE
      FORM

    

    (To
      be
      executed upon exercise of this Warrant)

     

    The
      undersigned hereby irrevocably elects to exercise the right, represented by
      this
      Warrant, to purchase Warrant Shares and herewith tenders payment for _______
      of
      the Warrant Shares to the order of _____________ Surfect Holdings, Inc. in
      the
      amount of $_________ in accordance with the terms of this Warrant.

     

    The
      undersigned requests that a certificate (or certificates) for such Warrant
      Shares be registered in the name of the undersigned and that such certificate
      (or certificates) be delivered to the undersigned's address below.

    

    In
      exercising this Warrant, the undersigned hereby confirms and acknowledges that
      the Warrant Shares are being acquired for investment solely for the account
      of
      the undersigned and not as a nominee for any other party, and that the
      undersigned will not offer, sell or otherwise dispose of any such Warrant Shares
      except under circumstances that will not result in a violation of the Securities
      Act of 1933, as amended, or any state securities laws.

    

    Dated:_____________________

     

    Signature___________________

     

    ___________________________

    (Print
      Name)

    

    ___________________________

    (Street
      Address)

    

    ___________________________

    (City)
      (State) (Zip Code)

    

    If
      said
      number of shares shall not be all the shares purchasable under the within
      Warrant, a new Warrant is to be issued in the name of said undersigned
for
      the
      balance remaining of the shares purchasable thereunder.

     

    
      
         

      

      
        10EXHIBIT 4.1

                           THE JACKSON RIVERS COMPANY
              EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2006

      1.    General Provisions.

      1.1 Purpose.  This Stock  Incentive Plan (the "Plan") is intended to allow
designated  officers  and  employees  (all of whom  are  sometimes  collectively
referred to herein as the "Employees," or individually as the "Employee") of The
Jackson  Rivers  Company,   a  Florida   corporation  (the  "Company")  and  its
Subsidiaries  (as that term is defined  below)  which they may have from time to
time (the Company and such Subsidiaries are referred to herein as the "Company")
to receive certain options (the "Stock Options") to purchase common stock of the
Company,  par value  $0.00001  per share (the  "Common  Stock"),  and to receive
grants of the Common Stock subject to certain  restrictions  (the "Awards").  As
used in this Plan, the term "Subsidiary"  shall mean each corporation which is a
"subsidiary  corporation" of the Company within the meaning of Section 424(f) of
the Internal Revenue Code of 1986, as amended (the "Code").  The purpose of this
Plan is to  provide  the  Employees,  who  make  significant  and  extraordinary
contributions  to the  long-term  growth and  performance  of the Company,  with
equity-based compensation incentives, and to attract and retain the Employees.

      1.2   Administration.

      1.2.1 The Plan shall be  administered by the  Compensation  Committee (the
"Committee")  of, or  appointed  by, the Board of  Directors of the Company (the
"Board").  The  Committee  shall select one of its members as Chairman and shall
act by vote of a  majority  of a quorum,  or by  unanimous  written  consent.  A
majority  of its members  shall  constitute  a quorum.  The  Committee  shall be
governed by the provisions of the Company's Bylaws and of Florida law applicable
to the Board, except as otherwise provided herein or determined by the Board.

      1.2.2  The  Committee  shall  have  full and  complete  authority,  in its
discretion,  but subject to the express  provisions  of this Plan (a) to approve
the Employees nominated by the management of the Company to be granted Awards or
Stock  Options;  (b) to  determine  the number of Awards or Stock  Options to be
granted to an Employee;  (c) to  determine  the time or times at which Awards or
Stock Options shall be granted;  (d) to establish the terms and conditions  upon
which  Awards or Stock  Options  may be  exercised;  (e) to remove or adjust any
restrictions and conditions upon Awards or Stock Options; (f) to specify, at the
time of grant,  provisions  relating to  exercisability  of Stock Options and to
accelerate or otherwise modify the exercisability of any Stock Options;  and (g)
to adopt such rules and regulations and to make all other determinations  deemed
necessary or desirable for the administration of this Plan. All  interpretations
and  constructions  of  this  Plan  by the  Committee,  and  all of its  actions
hereunder, shall be binding and conclusive on all persons for all purposes.

      1.2.3 The  Company  hereby  agrees to  indemnify  and hold  harmless  each
Committee  member and each Employee,  and the estate and heirs of such Committee
member or  Employee,  against  all  claims,  liabilities,  expenses,  penalties,
damages or other pecuniary  losses,  including legal fees,  which such Committee
member  or  Employee,  his  estate  or  heirs  may  suffer  as a  result  of his
responsibilities,  obligations  or duties in  connection  with this Plan, to the
extent that  insurance,  if any,  does not cover the  payment of such items.  No
member  of the  Committee  or the  Board  shall  be  liable  for any  action  or
determination made in good faith with respect to this Plan or any Award or Stock
Option granted pursuant to this Plan.

      1.3 Eligibility and Participation.  The Employees eligible under this Plan
shall be approved by the Committee  from those  Employees who, in the opinion of
the  management  of the  Company,  are in  positions  which  enable them to make
significant  contributions  to  the  long-term  performance  and  growth  of the
Company.  In  selecting  the  Employees  to whom Award or Stock  Options  may be
granted,  consideration  shall be given to factors such as employment  position,
duties and responsibilities,  ability, productivity,  length of service, morale,
interest in the Company and recommendations of supervisors.

<PAGE>

      1.4  Shares  Subject  to this Plan.  The  maximum  number of shares of the
Common  Stock  that may be  issued  pursuant  to this Plan  shall be  30,000,000
subject to adjustment  pursuant to the provisions of Paragraph 4.1. If shares of
the Common Stock awarded or issued under this Plan are reacquired by the Company
due to a forfeiture or for any other reason,  such shares shall be cancelled and
thereafter shall again be available for purposes of this Plan. If a Stock Option
expires, terminates or is cancelled for any reason without having been exercised
in full, the shares of the Common Stock not purchased  thereunder shall again be
available  for purposes of this Plan.  In the event that any  outstanding  Stock
Option or Award  under this Plan for any reason  expires or is  terminated,  the
shares of Common Stock allocable to the unexercised  portion of the Stock Option
or Award shall be available  for  issuance  under The Jackson  Rivers  Company's
Non-Employee  Directors and  Consultants  Retainer Stock Plan for the Year 2006.
The Compensation Committee may, in its discretion, increase the number of shares
available for issuance  under this Plan,  while  correspondingly  decreasing the
number of shares  available  for  issuance  under The Jackson  Rivers  Company's
Non-Employee Directors and Consultants Retainer Stock Plan for the Year 2006.

      2.    Provisions Relating to Stock Options.

      2.1 Grants of Stock Options. The Committee may grant Stock Options in such
amounts,  at such times, and to the Employees nominated by the management of the
Company as the  Committee,  in its  discretion,  may  determine.  Stock  Options
granted under this Plan shall  constitute  "incentive  stock options" within the
meaning of Section 422 of the Code,  if so  designated  by the  Committee on the
date of grant.  The  Committee  shall also have the  discretion  to grant  Stock
Options which do not  constitute  incentive  stock  options,  and any such Stock
Options shall be designated  non-statutory stock options by the Committee on the
date of grant.  The aggregate  Fair Market Value  (determined  as of the time an
incentive  stock  option is granted) of the Common  Stock with  respect to which
incentive  stock  options  are  exercisable  for the first time by any  Employee
during any one  calendar  year (under all plans of the Company and any parent or
subsidiary  of the Company) may not exceed the maximum  amount  permitted  under
Section 422 of the Code (currently,  $100,000.00).  Non-statutory  stock options
shall not be subject to the  limitations  relating to  incentive  stock  options
contained in the preceding  sentence.  Each Stock Option shall be evidenced by a
written agreement (the "Option  Agreement") in a form approved by the Committee,
which shall be executed on behalf of the Company and by the Employee to whom the
Stock Option is granted,  and which shall be subject to the terms and conditions
of this Plan.  In the  discretion  of the  Committee,  Stock Options may include
provisions  (which need not be  uniform),  authorized  by the  Committee  in its
discretion,  that  accelerate  an  Employee's  rights to exercise  Stock Options
following a "Change in Control," upon  termination of the Employee's  employment
by the Company  without  "Cause" or by the Employee  for "Good  Reason," as such
terms are defined in  Paragraph  3.1 hereof.  The holder of a Stock Option shall
not be entitled to the  privileges  of stock  ownership  as to any shares of the
Common Stock not actually issued to such holder.

      2.2 Purchase Price. The purchase price (the "Exercise Price") of shares of
the Common Stock subject to each Stock Option (the "Option Shares") shall not be
less than 85 percent of the Fair Market Value of the Common Stock on the date of
the grant of the option.  For an Employee holding greater than 10 percent of the
total voting power of all stock of the Company, either Common or Preferred,  the
Exercise Price of an incentive stock option shall be at least 110 percent of the
Fair Market Value of the Common Stock on the date of the grant of the option. As
used herein,  "Fair Market  Value" means the mean between the highest and lowest
reported  sales  prices  of the  Common  Stock  on the New York  Stock  Exchange
Composite  Tape or,  if not  listed  on such  exchange,  on any  other  national
securities  exchange on which the Common  Stock is listed or on The Nasdaq Stock
Market,  or, if not so listed on any other national  securities  exchange or The
Nasdaq  Stock  Market,  then the  average of the bid price of the  Common  Stock
during  the  last  five  trading  days on the  OTC  Bulletin  Board  immediately
preceding  the last trading day prior to the date with respect to which the Fair
Market  Value is to be  determined.  If the  Common  Stock is not then  publicly
traded,  then the Fair Market  Value of the Common Stock shall be the book value
of the  Company  per  share  as  determined  on the  last  day of  March,  June,
September, or December in any year closest to the date when the determination is
to be made.  For the purpose of  determining  book value  hereunder,  book value
shall be  determined by adding as of the  applicable  date called for herein the
capital,  surplus,  and  undivided  profits  of the  Company,  and after  having
deducted any reserves theretofore  established;  the sum of these items shall be
divided by the number of shares of the Common Stock outstanding as of said date,
and the quotient thus obtained  shall  represent the book value of each share of
the Common Stock of the Company.

<PAGE>

      2.3 Option Period.  The Stock Option period (the "Term") shall commence on
the date of grant of the  Stock  Option  and  shall be 10 years or such  shorter
period as is determined by the  Committee.  Each Stock Option shall provide that
it is exercisable  over its term in such periodic  installments as the Committee
may determine,  subject to the provisions of Paragraph  2.4.1.  Section 16(b) of
the  Securities  Exchange Act of 1934, as amended (the  "Exchange  Act") exempts
persons normally  subject to the reporting  requirements of Section 16(a) of the
Exchange  Act (the  "Section  16  Reporting  Persons")  pursuant  to a qualified
employee  stock option plan from the normal  requirement of not selling until at
least six months and one day from the date the Stock Option is granted.

      2.4 Exercise of Options.

      2.4.1 Each Stock  Option may be  exercised in whole or in part (but not as
to  fractional  shares) by delivering  it for  surrender or  endorsement  to the
Company,  attention of the Corporate  Secretary,  at the principal office of the
Company,  together with payment of the Exercise Price and an executed Notice and
Agreement of Exercise in the form prescribed by Paragraph 2.4.2.  Payment may be
made (a) in cash,  (b) by  cashier's  or  certified  check,  (c) by surrender of
previously owned shares of the Common Stock valued pursuant to Paragraph 2.2 (if
the Committee authorizes payment in stock in its discretion), (d) by withholding
from the Option  Shares which would  otherwise be issuable  upon the exercise of
the Stock Option that number of Option Shares equal to the exercise price of the
Stock  Option,  if  such  withholding  is  authorized  by the  Committee  in its
discretion,  or (e) in the discretion of the  Committee,  by the delivery to the
Company of the optionee's promissory note secured by the Option Shares,  bearing
interest at a rate  sufficient  to prevent  the  imputation  of  interest  under
Sections 483 or 1274 of the Code,  and having such other terms and conditions as
may be  satisfactory  to  the  Committee.  Subject  to the  provisions  of  this
Paragraph 2.4 and  Paragraph  2.5, the Employee has the right to exercise his or
her Stock  Options at the rate of at least 20  percent  per year over five years
from the date the Stock Option is granted.

      2.4.2 Exercise of each Stock Option is  conditioned  upon the agreement of
the Employee to the terms and  conditions  of this Plan and of such Stock Option
as evidenced by the Employee's  execution and delivery of a Notice and Agreement
of Exercise in a form to be determined by the Committee in its discretion.  Such
Notice and  Agreement of Exercise  shall set forth the agreement of the Employee
that (a) no Option Shares will be sold or otherwise  distributed in violation of
the  Securities  Act of 1933,  as amended  (the  "Securities  Act") or any other
applicable  federal or state securities laws, (b) each Option Share  certificate
may be  imprinted  with  legends  reflecting  any  applicable  federal and state
securities law restrictions and conditions, (c) the Company may comply with said
securities  law  restrictions  and issue  "stop  transfer"  instructions  to its
Transfer Agent and Registrar without liability, (d) if the Employee is a Section
16 Reporting  Person,  the  Employee  will furnish to the Company a copy of each
Form 4 or Form 5 filed  by said  Employee  and  will  timely  file  all  reports
required  under federal  securities  laws,  and (e) the Employee will report all
sales of Option  Shares to the  Company in writing on a form  prescribed  by the
Company.

      2.4.3 No Stock Option shall be exercisable unless and until any applicable
registration or qualification requirements of federal and state securities laws,
and all other legal  requirements,  have been fully  complied  with.  At no time
shall the total number of securities  issuable upon exercise of all  outstanding
options under this Plan,  and the total number of securities  provided for under
any  bonus or  similar  plan or  agreement  of the  Company  exceed a number  of
securities  which is equal to 30 percent of the then  outstanding  securities of
the Company,  unless a percentage higher than 30 percent is approved by at least
two-thirds of the outstanding  securities entitled to vote. The Company will use
reasonable  efforts to maintain the  effectiveness  of a Registration  Statement
under the Securities  Act for the issuance of Stock Options and shares  acquired
thereunder,  but there may be times when no such Registration  Statement will be
currently effective.  The exercise of Stock Options may be temporarily suspended
without  liability  to the  Company  during  times  when  no  such  Registration
Statement  is  currently  effective,  or during  times when,  in the  reasonable
opinion of the Committee,  such suspension is necessary to preclude violation of
any requirements of applicable law or regulatory bodies having jurisdiction over
the Company.  If any Stock Option would expire for any reason  except the end of
its term during such a suspension, then if exercise of such Stock Option is duly
tendered  before its  expiration,  such Stock  Option shall be  exercisable  and
exercised (unless the attempted exercise is withdrawn) as of the first day after
the end of such  suspension.  The Company  shall have no  obligation to file any
Registration Statement covering resales of Option Shares.

<PAGE>

      2.5 Continuous  Employment.  Except as provided in Paragraph 2.7 below, an
Employee may not  exercise a Stock  Option  unless from the date of grant to the
date of exercise the Employee remains continuously in the employ of the Company.
For purposes of this  Paragraph  2.5, the period of continuous  employment of an
Employee with the Company shall be deemed to include (without extending the term
of the Stock Option) any period during which the Employee is on leave of absence
with the consent of the Company,  provided  that such leave of absence shall not
exceed three  months and that the Employee  returns to the employ of the Company
at the  expiration of such leave of absence.  If the Employee fails to return to
the  employ of the  Company at the  expiration  of such  leave of  absence,  the
Employee's employment with the Company shall be deemed terminated as of the date
such leave of absence commenced.  The continuous  employment of an Employee with
the Company shall also be deemed to include any period during which the Employee
is a member of the Armed Forces of the United States, provided that the Employee
returns to the employ of the Company  within 90 days (or such  longer  period as
may be prescribed by law) from the date the Employee first becomes entitled to a
discharge from military service. If an Employee does not return to the employ of
the Company  within 90 days (or such longer  period as may be prescribed by law)
from the date the Employee  first becomes  entitled to a discharge from military
service,  the  Employee's  employment  with the Company  shall be deemed to have
terminated as of the date the Employee's military service ended.

      2.6  Restrictions  on Transfer.  Each Stock Option granted under this Plan
shall be transferable only by will or the laws of descent and  distribution.  No
interest  of any  Employee  under  this Plan  shall be  subject  to  attachment,
execution, garnishment, sequestration, the laws of bankruptcy or any other legal
or  equitable  process.  Each  Stock  Option  granted  under  this Plan shall be
exercisable  during  an  Employee's  lifetime  only  by the  Employee  or by the
Employee's legal representative.

      2.7 Termination of Employment.

      2.7.1 Upon an Employee's Retirement,  Disability (both terms being defined
below) or death, (a) all Stock Options to the extent then presently  exercisable
shall  remain in full  force and  effect and may be  exercised  pursuant  to the
provisions  thereof,  and (b) unless  otherwise  provided by the Committee,  all
Stock Options to the extent not then presently exercisable by the Employee shall
terminate  as of the date of such  termination  of  employment  and shall not be
exercisable thereafter. Unless employment is terminated for cause, as defined by
applicable law, the right to exercise in the event of termination of employment,
to the  extent  that  the  optionee  is  entitled  to  exercise  on the date the
employment terminates as follows:

            (i) At least six months from the date of  termination if termination
was caused by death or disability.

            (ii) At least 30 days from the date of  termination  if  termination
was caused by other than death or disability.

      2.7.2 Upon the termination of the employment of an Employee for any reason
other  than  those  specifically  set forth in  Paragraph  2.7.1,  (a) all Stock
Options to the extent then  presently  exercisable  by the Employee shall remain
exercisable  only for a period of 90 days after the date of such  termination of
employment  (except that the 90 day period shall be extended to 12 months if the
Employee shall die during such 90 day period),  and may be exercised pursuant to
the  provisions  thereof,  including  expiration  at the end of the  fixed  term
thereof,  and (b) unless otherwise provided by the Committee,  all Stock Options
to the extent not then presently  exercisable by the Employee shall terminate as
of the date of such  termination  of  employment  and shall  not be  exercisable
thereafter.

      2.7.3 For purposes of this Plan:

            (a) "Retirement" shall mean an Employee's retirement from the employ
of the Company on or after the date on which the Employee  attains the age of 65
years; and

<PAGE>

            (b)  "Disability"  shall mean total and  permanent  incapacity of an
Employee, due to physical impairment or legally established mental incompetence,
to perform the usual duties of the Employee's employment with the Company, which
disability shall be determined (i) on medical  evidence by a licensed  physician
designated  by the  Committee,  or (ii) on evidence that the Employee has become
entitled to receive  primary  benefits as a disabled  employee  under the Social
Security Act in effect on the date of such disability.

      3.    Provisions Relating to Awards.

      3.1 Grant of Awards. Subject to the provisions of this Plan, the Committee
shall have full and complete  authority,  in its discretion,  but subject to the
express  provisions of this Plan, to (1) grant Awards pursuant to this Plan, (2)
determine  the number of shares of the Common  Stock  subject to each Award (the
"Award  Shares"),  (3)  determine  the terms and  conditions  (which need not be
identical) of each Award, including the consideration (if any) to be paid by the
Employee  for such  Common  Stock,  which may,  in the  Committee's  discretion,
consist  of  the  delivery  of  the  Employee's   promissory  note  meeting  the
requirements of Paragraph 2.4.1, (4) establish and modify  performance  criteria
for Awards, and (5) make all of the  determinations  necessary or advisable with
respect to Awards under this Plan. Each Award under this Plan shall consist of a
grant of shares of the Common Stock subject to a restriction period (after which
the restrictions  shall lapse),  which shall be a period  commencing on the date
the Award is granted and ending on such date as the  Committee  shall  determine
(the  "Restriction  Period").  The  Committee  may  provide  for  the  lapse  of
restrictions in installments, for acceleration of the lapse of restrictions upon
the satisfaction of such performance or other criteria or upon the occurrence of
such events as the Committee shall  determine,  and for the early  expiration of
the  Restriction  Period upon an Employee's  death,  Disability or Retirement as
defined in Paragraph 2.7.3, or, following a Change of Control,  upon termination
of an Employee's  employment by the Company  without  "Cause" or by the Employee
for "Good Reason," as those terms are defined herein. For purposes of this Plan:

     "Change of  Control"  shall be deemed to occur (a) on the date the  Company
first has actual  knowledge  that any  person (as such term is used in  Sections
13(d) and  14(d)(2) of the  Exchange  Act) has become the  beneficial  owner (as
defined in Rule 13(d)-3  under the Exchange  Act),  directly or  indirectly,  of
securities of the Company representing 40 percent or more of the combined voting
power  of the  Company's  then  outstanding  securities,  or (b) on the date the
stockholders of the Company approve (i) a merger of the Company with or into any
other  corporation  in which the Company is not the surviving  corporation or in
which the  Company  survives  as a  subsidiary  of another  corporation,  (ii) a
consolidation  of the Company with any other  corporation,  or (iii) the sale or
disposition  of all or  substantially  all of the Company's  assets or a plan of
complete liquidation.

     "Cause," when used with  reference to  termination  of the employment of an
Employee by the Company for "Cause," shall mean:

            (a) The  Employee's  continuing  willful and material  breach of his
duties to the Company after he receives a demand from the Chief Executive of the
Company specifying the manner in which he has willfully and materially  breached
such  duties,  other than any such  failure  resulting  from  Disability  of the
Employee or his resignation for "Good Reason," as defined herein; or

            (b) The conviction of the Employee of a felony; or

            (c)  The  Employee's  commission  of  fraud  in  the  course  of his
employment  with  the  Company,  such as  embezzlement  or  other  material  and
intentional violation of law against the Company; or

            (d) The Employee's  gross  misconduct  causing  material harm to the
Company.

      "Good  Reason"  shall  mean  any one or more of the  following,  occurring
following or in connection  with a Change of Control and within 90 days prior to
the Employee's resignation,  unless the Employee shall have consented thereto in
writing:

            (a) The assignment to the Employee of duties  inconsistent  with his
executive  status prior to the Change of Control or a substantive  change in the
officer or officers  to whom he reports  from the officer or officers to whom he
reported immediately prior to the Change of Control; or

            (b) The  elimination or reassignment of a majority of the duties and
responsibilities  that were  assigned to the Employee  immediately  prior to the
Change of Control; or

            (c) A reduction by the Company in the Employee's  annual base salary
as in effect immediately prior to the Change of Control; or

            (d) The Company  requiring the Employee to be based anywhere outside
a 35-mile radius from his place of employment immediately prior to the Change of
Control,  except for  required  travel on the  Company's  business  to an extent
substantially   consistent  with  the  Employee's  business  travel  obligations
immediately prior to the Change of Control; or

            (e) The failure of the Company to grant the  Employee a  performance
bonus  reasonably  equivalent  to the same  percentage  of salary  the  Employee
normally received prior to the Change of Control,  given comparable  performance
by the Company and the Employee; or

            (f) The failure of the Company to obtain a  satisfactory  Assumption
Agreement (as defined in Paragraph  4.13 of this Plan) from a successor,  or the
failure of such successor to perform such Assumption Agreement.

      3.2  Incentive  Agreements.  Each Award  granted  under this Plan shall be
evidenced by a written  agreement (an "Incentive  Agreement") in a form approved
by the  Committee and executed by the Company and the Employee to whom the Award
is  granted.  Each  Incentive  Agreement  shall  be  subject  to the  terms  and
conditions of this Plan and other such terms and conditions as the Committee may
specify.

      3.3 Amendment,  Modification and Waiver of Restrictions. The Committee may
modify  or amend  any  Award  under  this  Plan or  waive  any  restrictions  or
conditions  applicable to the Award;  provided,  however, that the Committee may
not  undertake  any such  modifications,  amendments  or  waivers  if the effect
thereof materially increases the benefits to any Employee,  or adversely affects
the rights of any Employee without his consent.

      3.4 Terms and Conditions of Awards.  Upon receipt of an Award of shares of
the Common  Stock  under this Plan,  even  during  the  Restriction  Period,  an
Employee  shall be the  holder of record of the  shares  and shall  have all the
rights of a  stockholder  with respect to such shares,  subject to the terms and
conditions of this Plan and the Award.

      3.4.1 Except as otherwise provided in this Paragraph 3.4, no shares of the
Common  Stock  received  pursuant  to  this  Plan  shall  be  sold,   exchanged,
transferred,   pledged,   hypothecated  or  otherwise  disposed  of  during  the
Restriction Period applicable to such shares. Any purported  disposition of such
Common Stock in violation of this Paragraph 3.4 shall be null and void.

      3.4.2 If an Employee's employment with the Company terminates prior to the
expiration of the Restriction Period for an Award,  subject to any provisions of
the Award with respect to the Employee's  death,  Disability or  Retirement,  or
Change of Control,  all shares of the Common Stock subject to the Award shall be
immediately  forfeited by the Employee and  reacquired  by the Company,  and the
Employee  shall  have no  further  rights  with  respect  to the  Award.  In the
discretion of the Committee,  an Incentive  Agreement may provide that, upon the
forfeiture  by an  Employee  of Award  Shares,  the  Company  shall repay to the
Employee the consideration (if any) which the Employee paid for the Award Shares
on the grant of the Award.  In the  discretion  of the  Committee,  an Incentive
Agreement may also provide that such repayment  shall include an interest factor
on such  consideration  from the date of the  grant of the  Award to the date of
such repayment.

      3.4.3 The  Committee  may require  under such terms and  conditions  as it
deems  appropriate or desirable that (a) the  certificates  for the Common Stock
delivered  under this Plan are to be held in custody by the  Company or a person
or institution  designated by the Company until the Restriction  Period expires,
(b) such  certificates  shall bear a legend referring to the restrictions on the
Common Stock pursuant to this Plan, and (c) the Employee shall have delivered to
the Company a stock power endorsed in blank relating to the Common Stock.

<PAGE>

      4.    Miscellaneous Provisions.

      4.1 Adjustments Upon Change in Capitalization.

      4.1.1 The number and class of shares  subject  to each  outstanding  Stock
Option,  the Exercise Price thereof (and the total price), the maximum number of
Stock Options that may be granted under this Plan,  the minimum number of shares
as to which a Stock Option may be exercised at any one time,  and the number and
class of shares subject to each outstanding  Award, shall not be proportionately
adjusted  in the event of any  increase  or decrease in the number of the issued
shares of the Common  Stock which  results from a split-up or  consolidation  of
shares,  payment of a stock  dividend  or  dividends  exceeding  a total of five
percent  for  which  the  record   dates  occur  in  any  one  fiscal   year,  a
recapitalization,  a combination of shares or other like capital adjustment,  so
that (a) upon  exercise of the Stock  Option,  the  Employee  shall  receive the
number and class of shares the Employee  would have  received  prior to any such
capital adjustment becoming effective, and (b) upon the lapse of restrictions of
the Award Shares,  the Employee shall receive the number and class of shares the
Employee  would have  received  prior to any such  capital  adjustment  becoming
effective.

      4.1.2 Upon a  reorganization,  merger or consolidation of the Company with
one or more  corporations  as a result of which the Company is not the surviving
corporation  or in which the Company  survives as a  wholly-owned  subsidiary of
another corporation,  or upon a sale of all or substantially all of the property
of the  Company to another  corporation,  or any  dividend  or  distribution  to
stockholders  of  more  than  10  percent  of  the  Company's  assets,  adequate
adjustment  or other  provisions  shall be made by the Company or other party to
such transaction so that there shall remain and/or be substituted for the Option
Shares and Award Shares  provided for herein,  the shares,  securities or assets
which would have been  issuable or payable in respect of or in exchange for such
Option Shares and Award Shares then  remaining,  as if the Employee had been the
owner of such shares as of the  applicable  date.  Any securities so substituted
shall be subject to similar successive adjustments.

      4.2  Withholding  Taxes.  The Company  shall have the right at the time of
exercise  of  any  Stock  Option,  the  grant  of an  Award,  or  the  lapse  of
restrictions on Award Shares, to make adequate provision for any federal, state,
local or foreign  taxes  which it  believes  are or may be required by law to be
withheld  with respect to such  exercise  (the "Tax  Liability"),  to ensure the
payment of any such Tax  Liability.  The  Company may provide for the payment of
any Tax Liability by any of the following  means or a combination of such means,
as  determined  by the  Committee  in its sole and  absolute  discretion  in the
particular  case (1) by  requiring  the Employee to tender a cash payment to the
Company,  (2) by withholding from the Employee's salary, (3) by withholding from
the Option  Shares which would  otherwise be issuable upon exercise of the Stock
Option,  or  from  the  Award  Shares  on  their  grant  or  date  of  lapse  of
restrictions,  that number of Option  Shares or Award Shares having an aggregate
Fair Market Value  (determined in the manner  prescribed by Paragraph 2.2) as of
the date the  withholding  tax obligation  arises in an amount which is equal to
the  Employee's  Tax Liability or (4) by any other method deemed  appropriate by
the  Committee.  Satisfaction  of the Tax  Liability  of a Section 16  Reporting
Person may be made by the method of payment  specified  in clause (3) above only
if the following two conditions are satisfied:

            (a) The  withholding  of  Option  Shares  or  Award  Shares  and the
exercise  of the  related  Stock  Option  occur at least six  months and one day
following the date of grant of such Stock Option or Award; and

            (b) The  withholding of Option Shares or Award Shares is made either
(i) pursuant to an irrevocable election (the "Withholding Election") made by the
Employee at least six months in advance of the  withholding of Options Shares or
Award Shares,  or (ii) on a day within a 10-day "window period" beginning on the
third  business day following the date of release of the Company's  quarterly or
annual summary statement of sales and earnings.

      Anything herein to the contrary  notwithstanding,  a Withholding  Election
may be disapproved by the Committee at any time.

      4.3 Relationship to Other Employee Benefit Plans. Stock Options and Awards
granted hereunder shall not be deemed to be salary or other  compensation to any
Employee for purposes of any pension, thrift, profit-sharing,  stock purchase or
any other  employee  benefit plan now  maintained  or  hereafter  adopted by the
Company.

<PAGE>

      4.4  Amendments  and  Termination.  The Board of Directors may at any time
suspend,  amend or  terminate  this Plan.  No  amendment,  except as provided in
Paragraph 3.3, or  modification  of this Plan may be adopted,  except subject to
stockholder approval,  which would (1) materially increase the benefits accruing
to the  Employees  under  this  Plan,  (2)  materially  increase  the  number of
securities which may be issued under this Plan (except for adjustments  pursuant
to Paragraph  4.1  hereof),  or (3)  materially  modify the  requirements  as to
eligibility for participation in this Plan.

      4.5 Successors in Interest. The provisions of this Plan and the actions of
the  Committee  shall be binding upon all heirs,  successors  and assigns of the
Company and of the Employees.

      4.6 Other  Documents.  All  documents  prepared,  executed or delivered in
connection with this Plan (including,  without limitation, Option Agreements and
Incentive  Agreements)  shall be, in  substance  and form,  as  established  and
modified by the Committee;  provided,  however, that all such documents shall be
subject in every respect to the provisions of this Plan, and in the event of any
conflict between the terms of any such document and this Plan, the provisions of
this Plan shall prevail.

      4.7  Fairness  of the  Repurchase  Price.  In the event  that the  Company
repurchases  securities  upon  termination of employment  pursuant to this Plan,
either:  (a) the  price  will  not be less  than the  fair  market  value of the
securities to be repurchased  on the date of termination of employment,  and the
right to repurchase will be exercised for cash or cancellation of purchase money
indebtedness for the securities  within 90 days of termination of the employment
(or in the case of securities  issued upon exercise of options after the date of
termination,  within  90 days  after  the date of the  exercise),  and the right
terminates when the Company's  securities become publicly traded, or (b) Company
will repurchase  securities at the original  purchase  price,  provided that the
right to  repurchase  at the  original  purchase  price lapses at the rate of at
least 20  percent of the  securities  per year over five years from the date the
option is granted  (without  respect to the date the  option  was  exercised  or
became  exercisable)  and the right to repurchase  must be exercised for cash or
cancellation of purchase money indebtedness for the securities within 90 days of
termination  of  employment  (or in case of  securities  issued upon exercise of
options  after the date of  termination,  within  90 days  after the date of the
exercise).

      4.8 No Obligation to Continue  Employment.  This Plan and the grants which
might be made  hereunder  shall not  impose  any  obligation  on the  Company to
continue to employ any  Employee.  Moreover,  no  provision  of this Plan or any
document executed or delivered pursuant to this Plan shall be deemed modified in
any way by any employment  contract  between an Employee (or other employee) and
the Company.

      4.9 Misconduct of an Employee. Notwithstanding any other provision of this
Plan,  if an  Employee  commits  fraud  or  dishonesty  toward  the  Company  or
wrongfully  uses or  discloses  any  trade  secret,  confidential  data or other
information  proprietary to the Company, or intentionally takes any other action
which results in material harm to the Company,  as determined by the  Committee,
in its sole and absolute  discretion,  the Employee shall forfeit all rights and
benefits under this Plan.

      4.10 Term of Plan. No Stock Option shall be exercisable, or Award granted,
unless and until the  Directors of the Company have  approved  this Plan and all
other  legal  requirements  have been met.  This Plan was  adopted  by the Board
effective  November 22, 2006.  No Stock  Options or Awards may be granted  under
this Plan after November 22, 2016.

      4.11  Governing Law. This Plan and all actions taken  thereunder  shall be
governed by, and construed in accordance with, the laws of the State of Florida.

      4.12  Assumption  Agreements.  The Company will  require  each  successor,
(direct or indirect, whether by purchase,  merger,  consolidation or otherwise),
to all or substantially  all of the business or assets of the Company,  prior to
the  consummation of each such  transaction,  to assume and agree to perform the
terms and  provisions  remaining  to be  performed  by the  Company  under  each
Incentive  Agreement  and Stock  Option  and to  preserve  the  benefits  to the
Employees  thereunder.  Such  assumption  and agreement  shall be set forth in a
written  agreement  in form and  substance  satisfactory  to the  Committee  (an
"Assumption  Agreement"),  and shall  include such  adjustments,  if any, in the
application of the provisions of the Incentive  Agreements and Stock Options and
such additional provisions,  if any, as the Committee shall require and approve,
in order to  reserve  such  benefits  to the  Employees.  Without  limiting  the
generality of the foregoing, the Committee may require an Assumption Agree- ment
to include satisfactory undertakings by a successor:

<PAGE>

            (a)  To  provide  liquidity  to  the  Employees  at  the  end of the
Restriction  Period  applicable  to the Common Stock  awarded to them under this
Plan, or on the exercise of Stock Options;

            (b) If the  succession  occurs  before the  expiration of any period
specified in the Incentive  Agreements for satisfaction of performance  criteria
applicable to the Common Stock awarded  thereunder,  to refrain from interfering
with the Company's  ability to satisfy such performance  criteria or to agree to
modify  such  performance  criteria  and/or  waive any  criteria  that cannot be
satisfied as a result of the succession;

            (c) To require  any  future  successor  to enter into an  Assumption
Agreement; and

            (d) To take  or  refrain  from  taking  such  other  actions  as the
Committee may require and approve, in its discretion.

      4.13 Compliance with Rule 16b-3. Transactions under this Plan are intended
to comply with all  applicable  conditions of Rule 16b-3  promulgated  under the
Exchange  Act.  To the extent that any  provision  of this Plan or action by the
Committee  fails to so comply,  it shall be deemed null and void,  to the extent
permitted by law and deemed advisable by the Committee.

      4.14 Information to Shareholders. The Company shall furnish to each of its
stockholders financial statements of the Company at least annually.

      IN WITNESS WHEREOF,  this Plan has been executed  effective as of November
22, 2006.

                                        THE JACKSON RIVERS COMPANY

                                        By /s/ Jeffrey W. Flannery
                                           -------------------------------------
                                               Jeffrey W. Flannery
                                               Chief Executive Officer

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