Document:

EXHIBIT 10.11

                                    AGREEMENT

     THIS  AGREEMENT (THE "AGREEMENT") is made this 14th day of January 2003, by
and between Suburban Capital Corporation, a Delaware corporation ("Advisor") and
Gateway  Distributors,  Ltd.,  a  Nevada  corporation  (the  "Company").

     WHEREAS,  Advisor  and  Company  have  heretofore  entered  into  a written
agreement  dated  October  22,  2002;  and

     WHEREAS,  it  is the intent of Advisor and Company (the "Parties") to enter
into  a  new  agreement  which  will  supercede and replace any and all existing
consulting  contracts  and  agreements,  whether  written  or  oral,  which have
heretofore  existed  between  the  parties,  their  agents  and  assigns;  and

     WHEREAS,  it  is the intent that this Agreement, and any subsequent written
amendments  or addendums thereto, shall set forth all duties between the parties
and  shall  govern  all  subsequent  dealings  between  the  Parties;  and

     WHEREAS,  Advisor  and  Advisor's Personnel and sub-contractors (as defined
below)  have  experience  in  evaluating and effecting mergers and acquisitions,
advising  corporate  management, and in performing general administrative duties
for  publicly-held  companies  and  development  stage  investment ventures; and

     WHEREAS,  the  Company has previously retained Advisor to advise and assist
the Company in its development on the terms and conditions set forth in previous
agreements  between  the  parties;  and

     WHEREAS,  it is the intent that this Agreement settle all claims of Advisor
for  monies  for services performed, or to be performed, pursuant to any and all
previous  agreements  between  the  parties.

     NOW,  THEREFORE,  in  consideration of the payment to advisor of the sum of
One  Dollar  ($1.00),  the  receipt  of  which  is  hereby  acknowledged, and in
consideration of the mutual promises, covenants and agreements contained herein,
and  for  other  good and valuable consideration, including, but not limited to,
the  cancellation of all previous contracts and agreements between and among the
parties,  the  receipt  and  sufficiency  of  which  is hereby acknowledged, the
Company  and  Advisor  (the  "Parties")  agree  as  follows:

     The  Company  has  previously hired Advisor, pursuant to an agreement dated
     October  22,  2002, to assist the Company in it's effecting the purchase of
     businesses  and  assets  relative  to  its  business  and  growth strategy,
     acquisition  of  other  operations  or  businesses,  general  business  and
     financial  issues  consulting,  the  introduction  of  the Company to other
     advisors  or  other  third parties that may assist the Company in its plans
     and  future  (the  "Services"). The Services were to be provided on a "best
     efforts"  basis directly and through Advisor's employees or others employed
     or  retained  and  under  the  direction of Advisor (Advisor's Personnel");
     provided,  however,  that  the Services were to expressly exclude all legal
     --------   -------
     advice,  accounting  services  or  other services which require licenses or
     certification  which  Advisor may not have, services in connection with the
     offer  or sale of securities in a capital raising transaction, and services
     which  might  directly  or  indirectly promote or maintain a market for the
     securities  of  the  Company.

     Advisor  was  to  serve  as  an  advisor  to the Company for the purpose of
     finding  and  presenting  potential  business  combinations  to the Company
     during  the  term  of  this  Agreement.

COMPENSATION  AND  MEANS  OF  PAYMENT  OF  COMPENSATION
-------------------------------------------------------

     As  a  complete  and  total  satisfaction of all claims of Advisor for fees
which  have been earned to the date of this agreement, the Company agrees to pay
Advisor,  or  at  the  option  of  Advisor an employee or

<PAGE>
contractor  of Advisor, $550,000 for the Services which have been rendered under
the terms all prior agreements between the parties ("Advisory Fee"). The Company
shall  pay  the $550,000 by the delivery to Advisor of a number of shares of the
Company's  common  stock, par value $.001 per share, that when sold will provide
to  advisor,  or  its  assignee  the  sum  of  $550,000.

     The  Parties  agree  that  the  value of uncompensated services rendered by
Advisor  to  the  date  of  this  agreement  is  $550,000 and that the amount of
$550,000  is due to advisor for services previously performed during the term of
the  previous  Agreement.

     Commencing  on  the  date  of  this  Agreement, the Company shall issue and
deliver  to  the  Advisor  as  compensation for services previously rendered, as
described  above,  shares  having  a  value  of  $550,000.  At no time shall the
Company issue to Advisor shares equaling, when added to the number of shares, if
any,  presently  owned  by  Advisor,  shares in excess of 9.99% of the number of
shares  of  outstanding  common stock of the Company as of the date of issuance.
Shares  issued  pursuant  to  this  agreement are to be liquidated and the gross
proceeds  applied  towards  the  satisfaction  of  the  $550,000  Advisory  Fee.
Thereafter,  from  time  to time, and after the liquidation of the shares issued
upon  the  signing  of  this  agreement, the Company shall issue such additional
shares as may be necessary to assure the payment to Advisor of the $550,000 owed
to  Advisor  for  services  which have actually been rendered by Advisor, as set
forth  herein.  At no time shall the Company issue to Advisor shares which would
cause  the  number  of shares owned legally or beneficially by Advisor, to equal
ten percent (10%) of the issued and outstanding shares of the Company.

     Any demand for additional shares to be issued to allow payment of the total
of  $550,000  to advisor shall contain an accounting showing the amount received
by Advisor from all sales of Shares delivered to Advisor under the terms of this
Agreement  together with a statement showing the total number of Shares received
under  this  Agreement,  the number of said Shares which have been sold, and the
remaining amount owed to Advisor.  The Company shall have five (5) business days
following  actual  receipt  of said accounting to deliver a sufficient number of
additional  shares, subject to the 10% limitation, to pay any remaining balance.
All Shares delivered to the Advisor under the terms of this agreement shall have
been  registered  pursuant  to  an effective registration statement filed by the
Company  with  the  U.S.  Securities  and Exchange Commission prior to issuance.

     At  no  time shall the Advisor have the right to receive, or the Company be
required  to deliver shares to Advisor which would result in the Advisor having,
at  any time, legal and/or beneficial ownership of the Company's shares equaling
in  excess  of 9.99% of the issued and outstanding shares of the Company. Shares
delivered  to  Advisor  upon the submission of any invoice shall be deemed to be
fully  paid  for  at  the  time  of  submission  of  the  invoice.

     In  the  event  the shares delivered to and sold by Advisor pursuant to the
terms  of  this  Agreement fail to gross a total of $550,000 or the total amount
invoiced  to  the Company for services actually rendered during the term of this
agreement,  whichever  is  less,  the Company, as set forth herein, shall within
five  (5) business days of notice of this event, and subject to demand under the
terms  of  this  agreement,  issue  a sufficient number of additional registered
shares  in  order  to deliver to the Advisor any remaining earned balance of the
$550,000.

     Advisor  hereby  expressly  agrees  that  upon  his receipt of the $550,000
Advisory Fee contemplated by this Agreement, Advisor shall immediately return to
the  Company  any  shares  remaining  in Advisor's possession. Advisor shall not
knowingly sell Shares in excess of the number needed to allow his gross recovery
of  monies  from  the sale of Shares to exceed $550,000. Upon the termination of
this  Agreement,  Advisor  shall immediately return to the Company any shares in
excess  of  those  necessary to pay to Advisor the amount due under the terms of
this  Agreement.  This  will include all revenues received from sale of stock by
Advisor  since  December  4,  2002.

     Upon  any  issuance  of stock pursuant to this Agreement, Advisor shall pay
the  cost  of any revised shareholders' lists as may be necessitated or required
as  a result of said issuance.  Also, Advisor shall pay all costs related to the
preparation  and  filing  of  any  S-8 Registration Statement necessary to allow
shares  to

<PAGE>
be  issued  under this agreement, together with any transfer agent fees or other
fees  as  may be necessitated by said issuance. Advisor shall be responsible for
the  legal fees of Edward T. Wells related to the drafting and execution of this
Agreement.

     All  shares  transferred  to  Advisor  pursuant  to  the provisions of this
Agreement are fully earned and non-assessable as of the date of delivery.

MISCELLANEOUS  PROVISIONS
-------------------------

     A.   Gender.  Wherever  the  context shall require, all words herein in the
          -------
          masculine  gender  shall  be  deemed to include the feminine or neuter
          gender,  all  singular  words shall include the plural, and all plural
          shall  include  the  singular.
     B.   Severability.  If  any  provision  hereof is deemed unenforceable by a
          -------------
          court  of competent jurisdiction, the remainder of this Agreement, and
          the  application of such provision in other circumstances shall not be
          affected  thereby.
     C.   Further  Cooperation.  From and after the date of this Agreement, each
          ---------------------
          of  the  parties  hereto  agrees  to  execute  whatever  additional
          documentation  or instruments as are necessary to carry out the intent
          and  purposes  of  this  Agreement  or  to  comply  with  any  law.
     D.   Waiver.  No  waiver  of any provision of this Agreement shall be valid
          -------
          unless  in writing and signed by the waiving party. The failure of any
          party  at any time to insist upon strict performance of any condition,
          promise,  agreement  or  understanding  set forth herein, shall not be
          construed  as  a  waiver  or  relinquishment  of  any other condition,
          promise,  agreement  or understanding set forth herein or of the right
          to  insist  upon strict performance of such waived condition, promise,
          agreement  or  understanding  at  any  other  time.
     E.   Expenses.  Except  as  otherwise  provided  herein,  each party hereto
          ---------
          shall bear all expenses incurred by each such party in connection with
          this  Agreement  and  in  the  consummation  of  the  transactions
          contemplated  hereby  and  in  preparation  thereof.
     F.   Amendment.  This  Agreement  may  only  be  amended or modified at any
          ----------
          time,  and  from  time  to  time,  in writing, executed by the parties
          hereto.
     G.   Notices.  Any  notice,  communication,  request,  reply  or  advice
          --------
          (hereinafter  severally  and  collectively  called  "Notice")  in this
          Agreement  provided  or  permitted  to  be  given, shall be made or be
          served  by delivering same by overnight mail or by delivering the same
          by  a hand-delivery service, such Notice shall be deemed given when so
          delivered.  For  all  purposes of Notice, the addresses of the parties
          set  out below their signatures herein shall be their addresses unless
          later  advised  in  writing.
     H.   Captions.  Captions  herein are for the convenience of the parties and
          ---------
          shall  not  affect  the  interpretation  of  this  Agreement.
     I.   Counterpart  Execution.  This Agreement may be executed in two or more
          -----------------------
          counterparts,  each  of  which shall be deemed an original, but all of
          which  together  shall constitute one and the same instrument and this
          Agreement  may  be  executed  by  fax.
     J.   Assignment.  This  Agreement  is  not  assignable  without the written
          -----------
          consent  of  the  parties.
     K.   Parties  in  Interest.  Provisions  of this Agreement shall be binding
          ----------------------
          upon  and  inure  to the benefit of and be enforceable by the parties,
          their heirs, executors, administrators, other permitted successors and
          assigns,  if any. Nothing contained in this Agreement, whether express
          or  implied,  is intended to confer any rights or remedies under or by
          reason  of  this Agreement on any persons other than the parties to it
          and  their  respective successors and assigns, not is anything in this
          Agreement intended to relieve or discharge the obligation or liability
          of  any  third  persons  to any party to this Agreement, not shall any
          provision  give  any  third  persons any right of subrogation over, or
          action  against,  any  party  to  this  Agreement.
     L.   Entire Agreement.  This Agreement constitutes the entire agreement and
          -----------------
          understanding  of  the  parties  on  the  subject  matter  hereof  and
          supercedes  all  prior  agreements  and  understandings on the subject
          thereof.  All  prior  agreements  between  the Parties or any of them,
          whether  written or oral, are superceded by this agreement and any and
          all  rights,  duties  and/or  obligations  existing  by  virtue of any
          previous  agreement,  written  or  oral, between the parties or any of
          them  are  merged  herein.

<PAGE>
     M.   Construction.  The  parties hereto agree to cooperate with one another
          -------------
          in  respect  of  this Agreement, including reviewing and executing any
          document  necessary  for  the performance of this Agreement, to comply
          with  law  or  as  reasonably  requested by any party hereto, or legal
          counsel  to  any  party  hereto.
     N.   Cooperation.  The  parties  hereto agree to cooperate with one another
          ------------
          in  respect  of  this Agreement, including reviewing and executing any
          document  necessary  for  the performance of this Agreement, to comply
          with  law  or  as  reasonably  requested by any party hereto, or legal
          counsel  to  any  party  hereto.
     O.   Choice  of Law/Venue.  The law of the State of Illinois shall apply to
          ---------------------
          this  Agreement  without  reference to conflict of law principles, and
          the  sole venue for any dispute or suit between the parties shall be a
          court  of  competent  jurisdiction  in  the location of the ADVISOR in
          Illinois.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
above written.

GATEWAY DISTRIBUTORS, LTD., A NEVADA CORPORATION
------------------------------------------------

By: ______________________________
President

SUBURBAN CAPITAL CORPORATION, A DELAWARE CORPORATION
----------------------------------------------------

By: ______________________________
President

<PAGE>EXHIBIT 10.12
                                    PROPOSED
                             CONSULTING & MARKETING
                                AGREEMENT BETWEEN
                               SPROUT INVESTMENTS.
                                       AND
                                     GATEWAY

CONSULTING AND MARKETING AGREEMENT

     THIS CONSULITNG AND MARKETING LISCENSE AGREEMENT (this "AGREEMENT") is
between Mark Rao (the "CONSULTANT") Gateway Distributors Ltd (the "COMPANY").
Consultant and the Company are also referred to in this agreement as the
"PARTIES".

WHERAS, the Company intends to develop a market for the Company's products and
services offered from time to time by the Company ( the "PRODUCTS AND SERVICES")
for potential customers of the Products and Services, and

WHEREAS, the Company desires to utilize the services of the Consultant to
promote and develop a market for the Company's Products and Services; and

WHEREAS, in connection with the services to be provided by the Consultant
pursuant to this Agreement, no agreements will be entered into by the Consultant
on behalf of the Company without written consent of the company.

     NOW THEREFORE, in consideration of the premises and mutual covenants set
forth in the Agreement, the parties hereby agree as follows:

     1.   SCOPE OF SERVICES:  The Company hereby retains the Consultant to
          -----------------
promote and develop a market for the Products and Services.  The Consultant
agrees to use his best efforts during the term of this Agreement to market and
promote the Products and Services.
     2.   TERM:  This Agreement shall become effective as of the date set forth
          ----
on the signature page of this Agreement, and shall continue for a period of one
(1) year (the "TERM").  Notwithstanding the foregoing, the Company or the
Consultant shall be entitled to terminate this Agreement for "cause" upon 30
days' written notice shall be effective upon mailing by first class mail
accompanied by facsimile transmission to the Consultant at the address and
telecopier number last provided by the Consultant to the Company, "CAUSE" shall
be determined solely as the violation of any rule or regulation of any
regulatory agency, and other neglect, act or omission detrimental to the conduct
of Company or the Consultant's business, material breach of this Agreement or
any unauthorized disclosure of any of the secrets of confidential information of
Company, and dishonesty related to independent contractor status.

<PAGE>
     3.   LICENSE: No license or right is granted by the Company to the
Consultant, either expressly or by implication, under any licenses or rights
owned or controlled by the Company, except as expressly set forth in this
Agreement.

     4.   COMPENSATION; GRANT OF STOCK OPTION:  In consideration for the
          -----------------------------------
services to be provided by the consultant to the Company under the terms of this
Agreement, the Company agrees to grant to the Consultant upon the execution of
this Agreement a non-qualified stock option (the "OPTION") to purchase up to the
number of shares (the "SHARES") of the Company's common stock ( the "COMMON
STOCK") as set for the below which shall fully vest immediately upon execution
of this Agreement, at an exercise price as set forth below:

     TOTAL DOLLAR AMOUNT:  $50,000
               Percentage per Share (in US$):  70% of the preceding day close

The terms of the Option shall otherwise be set forth in a Non-Qualified Stock
Option Agreement between the Company and the Consultant, substantially in the
form attached as Exhibit A to this Agreement.  The Company agrees to register
                 ---------
the Shares upon signing of this agreement for resale under the Securities Act of
1933, as amended, pursuant to a registration statement filed with the Securities
and Exchange Commission of for S-8 (or, if Form S-8 is not then available, such
other form of registration statement available), pursuant to the terms of such
registration set forth in the Non-Qualified Stock Option Agreement.

     5.   CONFIDENTIALITY:  The Consultant covenants that all information
          ---------------
concerning the Company, including proprietary information, which it obtains as a
result of the services rendered pursuant to this Agreement shall be kept
confidential and shall not be used by the Consultant except for the direct
benefit of the Company nor shall the confidential information be disclosed by
the Consultant to any third party without the prior written approval of the
Company, provided, however, that the Consultant shall not be obligated to treat
as confidential, or return to the Company copies of any confidential information
that (i) was publicly known at the time of disclosure to Consultant, (ii)
becomes publicly known or available thereafter other than by any means in
violation of this Agreement or any other duty owed to the Company by the
Consultant, or (iii) is lawfully disclosed to the Consultant by a third party.

     6.   INDEPENDENT CONTRACTOR:  The Consultant and the Company hereby
          -----------------------
acknowledge that the Consultant is an independent contractor.  The Consultant
agrees not to hold himself out as, nor shall he take any action from which
others might reasonably infer that the Consultant is a partner or agent of, or a
joint venturer with the Company.  In addition, the Consultant shall take no
action, which, to the knowledge of the Consultant, binds, or purports to bind,
the Company to any contract or agreement.

<PAGE>
     7.   MISCELLANEOUS:
          -------------

          (a)  GOVERNING LAW:  This Agreement shall be construed under the
               -------------
     internal laws of the State of California, and the Parties agree that the
     exclusive jurisdiction for any litigation or arbitration arising from this
     Agreement shall be in Las Vegas, Nevada.
          (b)  SUCCESSORS AND ASSIGNS:  This Agreement shall be binding upon the
               ----------------------
     Parties, their successors and assigns, provided, however, that the
     Consultant shall not permit any other person or entity to assume these
     obligations hereunder without the prior written approval of the Company
     which approval shall not be unreasonably withheld and written notice of the
     Company's position shall be given within ten (10) days after approval has
     been requested.
          (c)  COUNTERPARTS:  This Agreement may be executed in two or more
               ------------
     counterparts, each of which shall be deemed an original, but which when
     taken together shall constitute one agreement.
          (d)  SEVERABILITY:  If one or more provisions of this Agreement are
               ------------
     held to be unenforceable under applicable law, such provision(s) shall be
     excluded from this Agreement and the balance of this Agreement shall be
     interpreted as if such provision were excluded and shall be enforceable in
     accordance with its terms.

Address for Notices:

CONSULTANT                              COMPANY:
Mike Rao                                Gateway Distributors Ltd
315 South East Mizner, Suite 202        3095 East Patrick Lane, Suite 101
Boca Raton, FL 33432                    Las Vegas, NV 89120

     IN WITNES WHEREOF, the Parties hereto have executed or caused this
Agreement to be executed as of the date set forth below.

     CONSULTANT                         GATEWAY DISTRIBUTORS LTD

By: __________________________          By: _________________________
          Mike Rao                              Rick Bailey
          Consultant                            President

Date: _______________________           Date: _______________________

<PAGE>
                                    EXHIBIT A
                                    ---------

                                     FORM OF
                      NON-QUALIFIED STOCK OPTION AGREEMENT

     THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this "AGREEMENT") is between
Mark Rao (the "GRANTEE") and the other party named on the signature page to this
Agreement (the "COMPANY"). Each of the Grantee and the Company are also referred
to in this agreement as the "PARTIES".

     WHEREAS, the Board of Directors of the Company (the "BOARD OF DIRECTORS")
has authorized the grant to the Grantee, for services to be rendered by the
Grantee as a consultant to the Company pursuant to the terms of a Consulting and
Marketing License Agreement (the "CONSULTING AGREEMENT") between the Company and
the Grantee of non-qualified stock option (the "OPTION") to purchase the number
of shares of the Company's common stock (the "COMMON STOCK") specified in
paragraph 1 of this Agreement, at the price specified in paragraph 1 of this
Agreement.

     NOW THEREFORE,   in consideration of the premises and mutual convenants set
forth in the Agreement, the Parties hereby agree as follows:
     1.   NUMBER OF SHARES; EXERCISE PRICE:  Pursuant to action taken by the
          --------------------------------
          Board of Directors, the Company hereby grants to the Grantee, in
          consideration of consulting services to be performed for the benefit
          of the Company pursuant to the Consulting Agreement, an option
          ("OPTION") to purchase the number of common shares ("OPTION SHARES")
          of Common Stock set forth below, at the exercise price set forth
          below:

TOTAL DOLLAR AMOUNT: $50,000
----------------------------

     Exercise Price or Percentage per Share (in US$):  70% of five day low.

     2.   TERM:  The Option and this Agreement shall expire one year from the
          ----
          date of signing of this agreement.
     3.   SHARES SUBJECT TO EXERCISE:  The Option shall be immediately
          --------------------------
          exercisable and shall remain exercisable for the entire Term specified
          in Paragraph 2 of this Agreement.
     4.   METHOD AND TIME OF EXERCISE:  The Option may be exercised in whole or
          ---------------------------
          from time to time in part by written notice delivered to the Company
          stating the number of Option Shares with respect to which the Option
          is then being exercised, together with a check and/or a wire transfer
          made payable to the Company in the amount equal to the Exercise Price
          multiplied by the number of Option shares then being issued pursuant
          to the written notice of exercise, plus the amount of applicable
          federal, state and local withholding taxes, provided, however, that
          such taxes may be satisfied by the withholding of Option Shares then
          issuable upon the

<PAGE>
          exercise of the Option pursuant to paragraph 5 of this Agreement. Not
          less than one hundred (100) Option Shares may be purchased upon
          exercise of the Option at any one time unless the number of Option
          Shares for which exercise of the Option is being made is all of the
          Option Shares then issuable upon exercise of the Option. Only whole
          shares shall be issued upon exercise of the Option.
     5.   TAX WITHHOLDING:  As a condition to exercise of the Option, the
          ---------------
          Company may require the Grantee to pay to the Company all applicable
          federal, state and local taxes which the Company is required to
          withhold with respect to the exercise of the Option. Or the grantee is
          liable for filing and paying all of his own taxes.
     6.   EXERCISE FOLLOWING TERMINATION OF CONSULTING AGREEMENT:  The Option
          ------------------------------------------------------
          shall not terminate as a result of the termination of Grantee's
          services as a consultant to the Company pursuant to the Consulting
          Agreement.
     7.   TRANSFERABILITY:  The Option and this Agreement may not be assigned or
          ---------------
          transferred except by will or by the laws of descent and distribution,
          and with consent of the Company.
     8.   GRANTEE NOT A SHAREHOLDER:  The Grantee shall have no rights as a
          -------------------------
          shareholder with respect to the Option Shares issued from time to time
          upon exercise of the Option until the earlier of: (1) the date of
          issuance of a stock certificate or stock certificates to the Grantee
          applicable to the Option Shares then issuable to the grantee upon
          exercise of the Option and (2) the date on which the Grantee or his
          nominee is recorded as owner of such Option Shares on the Company's
          stock ledger by the Company's registrar and transfer agent, which may
          be the Company. Except as set forth in paragraph 13 of this Agreement,
          no adjustment will be made for dividends or other rights for which the
          record date is prior to the earlier of the events described in clauses
          (1) and (2) of this paragraph. All voting rights remain with the
          President of the Company.
     9.   RESTRICTIONS ON TRANSFER:  The Grantee represents and agrees that,
          ------------------------
          upon the Grantee's exercise of the Option in whole or in part, unless
          there is in effect at that time under the Securities Act of 1933 a
          registration statement relating to the Option Shares, the Grantee will
          acquire the Options Shares for the purpose of investment and not with
          a view to their resale or further distribution, and that upon such
          exercise hereof, the Grantee will furnish to the Company a written
          statement to such effect, satisfactory to the Company in form and
          substance.
     10.  SHARES QUALIFIED FOR LISTING:  Company represents that its Common
          ----------------------------
          Stock is qualified for trading or quotation on a nationally recognized
          securities exchange or stock quotation system, including, without the
          NASDAQ Bulleting Board, and for trading with the California Department
          of Corporations or such other applicable jurisdictions.
     11.  REGISTRATION RIGHTS:  On or before the day of this Agreement, the
          -------------------
          Company shall, at the Company's expense, file with the Securities and
          Exchange Commission ("SEC"), a registration statement ("REGISTRATION
          STATEMENT") on Form S-8 or other comparable form, or if such form is
          not then available, such other form of registration statement then
          available, in such form as to comply with applicable federal and state
          laws for the purpose of registering or qualifying the Option Shares
          for public resale by the Grantee, and prepare and file with the
          appropriate state securities regulatory authorities the documents
          reasonably

<PAGE>
          necessary to register or qualify the Option Shares, subject to the
          ability of the Company to register or qualify the Option Shares under
          applicable state law.
     12.  NOTICES:  All notices to the Company shall be addressed to the Company
          -------
          at the principal office of the Company at the address and facsimile
          number set forth on the signature page of this Agreement, and all
          notices to the Grantee shall be addressed to the Grantee a the address
          and facsimile number of the Grantee set forth on the signature page of
          this Agreement, or if different, the last address and facsimile number
          on file with the Company, or to such other address and facsimile
          number as either may designate to the other in writing. A notice shall
          be deemed to be duly given if and when enclosed in a properly
          addressed sealed envelope deposited, postage prepaid and followed by
          facsimile to the addressee. In lieu of giving notice by mail as
          foresaid, written notices under this Agreement may be given by
          personal delivery to the Grantee or to the Company (as the case may
          be) by nationally recognized courier or overnight delivery service.
     13.  ADJUSTMENTS:  If there is any change in the capitalization of the
          -----------
          Company after the date of this Agreement affecting in any manner the
          number of kind of outstanding shares of Common Stock of the Company,
          whether by stock dividend, stock split, reclassification or
          recapitalization of such stock, or because the Company has merged or
          consolidated with one or more other corporations (and provided the
          Option does not thereby terminate pursuant to paragraph 14 of this
          Agreement), then the number and kind of shares then subject to the
          Option and the exercise price to be paid for the Option Shares shall
          be appropriately adjusted by the Board of Directors; provided,
          however, that in no event shall any such adjustment result in the
          Company being required to sell or issue any fractional shares. This
          Agreement is subject to market conditions. Any such adjustment shall
          be made without change in the aggregate exercise price applicable to
          the unexercised portion of the Option, but with an appropriate
          adjustment to the exercise price of each Option Share or other unit of
          security then covered by the Option and this Agreement.
     14.  CESSATION OF CORPORATE EXISTENCE:  Notwithstanding any other provision
          --------------------------------
          of this Agreement, in the event of the 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 the sale of
          substantially all the assets of the Company or of more that fifty
          percent (50%) of the then outstanding stock of the Company to another
          corporation or other entity in a single transaction, the Option grated
          hereunder shall terminate, provided, however, that not later than five
          (5) days before the effective date of such merger or consolidation or
          sale of assets in which the Company is not the surviving corporation,
          the surviving corporation may, but shall not be so obligated to tender
          to the Grantee an option to purchase a number of shares of capital
          stock of the surviving corporation equal to the number of Option
          Shares then issuable upon exercise of the Option, and such new option
          or options for shares of the surviving corporation shall contain such
          terms, conditions and provisions as shall be required substantially to
          preserve the rights and benefits of the Option and this Agreement.
          (a)  ENTIRE AGREEMENT:  This Agreement and the Consulting Agreement
               ----------------
               contain the entire agreement between the Parties, and may not be
               waived, amended,

<PAGE>
               modified or supplemented except by agreement in writing signed by
               the Party against whom enforcement of any waiver, amendment,
               modification or supplement is sought. Waiver of or failure to
               exercise any rights provided by this Agreement and the Consulting
               Agreement in any respect shall not be deemed a waiver of any
               further or future rights.

     15.  MISCELLANEOUS
          -------------

          (b)  GOVERNING LAW:  This Agreement shall be construed under the
               -------------
               internal laws of the State of Nevada, and the Parties agree that
               the exclusive jurisdiction for any litigation or arbitration
               arising from this Agreement shall be in Las Vegas Nevada.
          (c)  COUNTERPARTS:  This Agreement may be executed in two or more
               ------------
               counterparts, each of which shall be deemed an original, but
               which when taken together shall constitute one agreement.
          (d)  SEVERABILITY:  If one or more provisions of this Agreement are
               ------------
               held to be unenforceable under applicable law, such provision(s)
               shall be excluded from this Agreement and the balance of this
               Agreement shall be interpreted as if such provision were excluded
               and shall be enforceable in accordance with its terms.

     IN WITNESS WHEREOF, the Parties hereto have executed or caused this
Agreement to be executed as of the date set forth below.

     CONSULTANT                         GATEWAY DISTRIBUTORS LTD

By: __________________________          By: _________________________
          Mike Rao                              Rick Bailey
          Consultant                            President

Date: _______________________           Date: _______________________

<PAGE>

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