Document:

Exhibit
10.3

SURFECT HOLDINGS,
INC.

STOCK OPTION
AGREEMENT

UNDER THE 2006 STOCK PLAN

Stock Option Agreement (“Agreement”) between Surfect Holdings, Inc. (the “Company”) and                         
(the “Optionee”), dated
as of                      
        ,            
(the “Grant Date”).

The Company hereby grants to the Optionee an option
(the “Option”) to
purchase                  
shares of the Company’s common stock (the “Option Shares”) under the
Surfect Holdings, Inc. 2006 Stock Plan (the “Plan”) upon the terms and conditions of the Plan and this
Agreement.   Capitalized terms used
herein that are not otherwise defined shall have the meanings set forth in the
Plan, which is hereby incorporated herein by reference.  In the event of a conflict between the
provisions of the Plan and the provisions of this Agreement, the provisions of
the Plan shall govern.

1.             Purchase
Price.  The purchase price of the
Option Shares shall be $           
per share (the “Exercise Price”), which is not less than the fair market
value of the Company’s common stock on the Grant Date.

2.             Option.  The Option shall be [an ISO/a
NQO], as defined in the Plan.

3.             Term
and Vesting of Option.  The Option
will expire         years from the Grant
Date.  The Option shall become exercisable
as follows:

(a)           [On and after                       ,
if the Optionee has been continuously providing services to the Company through
that date,  the Optionee may purchase up
to one-third of the Option Shares;

(b)           On and after                     ,
if the Optionee has been continuously providing services to the Company through
that date, the Optionee may purchase up to two-thirds of the Option Shares;

(c)           On and after                      ,
if the Optionee has been continuously providing services to the Company through
that date, the Optionee may purchase up to all of the Option Shares.]

4.             Restricted
Securities.  The Option Shares have
not been registered under the Securities Act of 1933 (the “1933 Act”)
and are being issued to Optionee in reliance upon the exemption from such
registration provided by Rule 701 under the 1933 Act for stock issuances under
compensatory benefit plans such as the Plan. 
Optionee understands that the Option Shares are restricted securities
under the 1933 Act and may not be resold or transferred unless the Option
Shares are first registered under the Federal securities laws or unless an
exemption from such registration is available. 
Accordingly, Optionee hereby acknowledges that Optionee is prepared to
hold any Option Shares for an indefinite period and that Optionee is aware that
Rule 144 under the 1933 Act that exempts certain resales of unrestricted
securities may not be

 

available to exempt the
resale of the Option Shares from the registration requirements of the 1933 Act.

5.             Method
of Exercise.  The Option may be
exercised, subject to the terms and conditions of this Agreement, by written
notice to the Company.  The notice shall
be in the form attached to this Agreement and shall be accompanied by full
payment of the Exercise Price in accordance with the provisions of Section 9(f)
of the Plan.  If the Optionee delivers
Options as payment of the Exercise Price upon exercise of an Option, the
Committee shall determine acceptable methods for tendering such Options by the
Optionee and may impose such limitations and prohibitions on the use of Options
for such purposes as it deems appropriate. 
In the event of an exercise under the terms of paragraph 9(j) of the
Plan, appropriate proof of the right to exercise the Option shall be delivered
to the Company.  The Company will issue
and deliver certificates representing the number of shares purchased under the
Option, registered in the name of the Optionee (or other purchaser under
paragraph 9(j) of the Plan) as soon as practicable after receipt of the notice.

6.             Withholding.  In any case where withholding is required or
advisable under federal, state or local law in connection with any exercise of
the Option by the Optionee hereunder, the Company is authorized to withhold
appropriate amounts from amounts payable to the Optionee, or may require the
Optionee to remit to the Company an amount equal to such appropriate amounts.

7.             Severability.  In the event that any one or more provisions
of this Agreement shall be deemed to be illegal or unenforceable, such
illegality or unenforceability shall not affect the validity and enforceability
of the remaining legal and enforceable provisions herein, which shall be
construed as if such illegal or unenforceable provision or provisions had not
been inserted.

8.             Waiver.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

9.             Governing
Law.  This Agreement shall be
construed and governed in accordance with the laws of the State of Delaware,
without regard to the conflicts of law principles thereof.

10.           Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed to be an original but both of which
together shall constitute one and the same instrument.

11.           Warranty.  The Optionee acknowledges, represents,
warrants and covenants that the Optionee: 
(i) has read and understands the terms and provisions of the Plan; (ii)
accepts as binding and final all decisions or interpretations of the Committee
upon any questions arising under the Plan or this Agreement or with respect to
the Option; (iii) understands that the exercise of the Option is governed by
the terms of the Plan; (iv) if the Option is an ISO, understands that in order
to qualify the Option for favorable tax treatment as an incentive stock option,
neither the Optionee nor his representative will make a disposition of Common
Stock received by the Optionee or his representative within two years from the
date of granting of the Option nor

 

within one year after the transfer of such Common
Stock to the Optionee or his representative; (v) will acquire the Option and
any Common Stock for investment purposes; and (vi) will perform all acts and
execute and deliver any documents that may be reasonably necessary to carry out
the provisions of this Agreement as required by the Committee or Company or for
compliance with any federal or state securities laws or tax laws.

[Signature
Page Follows]

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by an authorized officer and the Optionee has hereunto
set his hand all as of the day, month and year first above written.

	
  

  	
  SURFECT HOLDINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  
						

 

[Signature
page to Stock Option Agreement]

 

SURFECT HOLDINGS,
INC.

NOTICE OF EXERCISE
OF STOCK OPTION ISSUED

UNDER THE 2006 STOCK PLAN

	
  To:

  	
   

  	
  Compensation Committee

  
	
   

  	
   

  	
  Surfect Holdings, Inc.

  

 

I hereby exercise my
Option dated                         
     ,               
to purchase                     
shares of Common Stock at the Exercise Price of $             
per share.

I request that my shares
be issued in my name as follows:

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Print your name
  in the form in which you

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  wish to have the
  shares registered)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Social Security
  Number)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (City)

  	
   

  	
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  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:Exhibit 10.4

 

CONSULTING AGREEMENT

This Consulting Agreement
(the “Agreement”), effective as of August 1, 2006 is entered into by and
between SURFECT TECHNOLOGIES, INC., a Delaware corporation (herein referred to
as the “Company”) and Vision Advisors, Inc., a California corporation (herein
referred to as the “Consultant”).

RECITALS

WHEREAS,
Company is a privately-held company and has immediate plans to be part of a
reverse merger transaction that will result in the Company being a public
company with its common stock traded on the OTCBB Market; and

WHEREAS,
Company desires to engage the services of Consultant to represent the company
in investors’ communications and public relations with existing shareholders,
brokers, dealers and other investment professionals as to the Company’s current
and proposed activities, and to consult with management concerning such Company
activities;

NOW
THEREFORE, in consideration of the promises and the mutual
covenants and Agreements hereinafter set forth, the parties hereto covenant and
agree as follows:

1.             Term of Consultancy.   Company hereby
agrees to retain the Consultant to act in a consulting capacity to the Company,
and the Consultant hereby agrees to provide services to the Company commencing
immediately and ending on August 30, 2007.

2.             Duties of Consultant.   The Consultant
agrees that it will generally provide the following specified consulting
services;

(a) Consult
and assist the Company in developing and implementing appropriate plans and
means for presenting the Company and its business plans, strategy and personnel
to the financial community, establishing an image for the Company in the
financial community, and creating the foundation for subsequent financial
public relations efforts;

(b) Introduce
the Company to the financial community;

(c) With
the cooperation of the Company, maintain an awareness during the term of this
Agreement of the Company’s plans, strategy and personnel, as they may evolve
during such period, and consult and assist the Company in communicating
appropriate information regarding such plans, strategy and personnel to the
financial community;

(d) Assist
and consult the Company with respect to its (i) relations with stockholders,
(ii) relations with brokers, dealers, analysts and other investment
professionals, and (iii) financial public relations generally;

(e) Perform
the functions generally assigned to stockholder relations and public relations
departments in major corporations, including responding to telephone and
written inquiries (which may be referred to the Consultant by the Company);
preparing press releases for the Company with the Company’s involvement and
approval of press releases, reports and other communications with or to
shareholders, the investment community and the general public; consulting with
respect to the timing, form, distribution and other matters related to such
releases, reports and communications; and, at the Company’s request and

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subject to the Company’s
securing its own rights to the use of its names, marks, and logos, consulting
with respect to corporate symbols, logos, names, the presentation of such
symbols, logos and names, and other matters relating to corporate image;

(f) Upon
the Company’s direction and approval, disseminate information regarding the
Company to shareholders, brokers, dealers, other investment community
professionals and the general investing public;

(g) Upon
the Company’s approval, conduct meetings, in person or by telephone, with
brokers, dealers, analysts and other investment professionals to communicate
with them regarding the Company’s plans, goals and activities, and assist the
Company in preparing for press conferences and other forums involving the
media, investment professionals and the general investment public;

(h) At
the Company’s request, review business plans, strategies, mission statements
budgets, proposed transactions and other plans for the purpose of advising the
Company of the public relations implications thereof; and,

(i) Otherwise
perform as the Company’s consultant for public relations and relations with
financial professionals.

3.             Allocation of Time and Energies. The Consultant
hereby promises to perform and discharge faithfully the responsibilities which
may be assigned to the Consultant from time to time by the officers and duly
authorized representatives of the Company in connection with the conduct of its
financial and public relations and communications activities, so long as such
activities are in compliance with applicable securities laws and regulations.
Consultant and staff shall diligently and thoroughly provide the consulting
services required hereunder: Although no specific hours-per-day requirement
will be required, Consultant and the Company agree that Consultant will perform
the duties set forth herein above in a diligent and professional manner. The
parties acknowledge and agree that a disproportionately large amount of the
effort to be expended and the costs to be incurred by the Consultant and the
benefits to be received by the Company are expected to occur within or shortly
after the first two months of the effectiveness of this Agreement. It is
explicitly understood that Consultant’s performance of its duties hereunder
will in no way be measured by the price of the Company’s common stock, nor the
trading volume of the Company’s common stock. It is also understood that the
Company is entering into this Agreement with Vision Advisors, Inc. (“VA”), a
corporation and not any individual member of VA, and, as such, Consultant will
not be deemed to have breached this Agreement if any member, officer or
director of VA leaves the firm or dies or becomes physically unable to perform
an y meaningful activities during the term of the Agreement, provided the
Consultant otherwise performs its obligations under this Agreement .

4.             Remuneration. As full and complete compensation for
services described in this Agreement, the Company shall compensate VA as
follows:

4.1  For undertaking this engagement, for previous
services rendered, for performing due diligence, and for other good and
valuable consideration, the Company agrees to issue and deliver to the
Consultant a “Commencement Bonus” payable in the form of that number of shares
of common stock that will equate to 200,000 shares of the Company’s common
stock once the planned reverse merger is completed (“Common Stock”). This
Commencement Bonus shall be issued to the Consultant immediately following
execution of this Agreement and shall, when issued and delivered to Consultant

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be fully paid and
non-assessable. The Company understands and agrees that Consultant has foregone
significant opportunities to accept this engagement and that the Company
derives substantial benefit from the execution of this Agreement and the
ability to announce its relationship with Consultant. The 200,000 shares of
Common Stock issued as a Commencement Bonus, therefore, constitute payment for
Consultant’s Agreement to consult to the Company and are a nonrefundable,
non-apportionable, and non-ratable retainer; such shares of common stock are
not a prepayment for future services. If the Company decides to terminate this
Agreement prior to August 30, 2007 for any reason whatsoever, it is agreed and
understood that Consultant will not be requested or demanded by the Company to
return any of the shares of Common Stock paid to it as Commencement Bonus
hereunder. Further, if and in the event the Company is acquired in whole or in
part, during the term of this Agreement, it is agreed and understood Consultant
will not be requested or demanded by the Company to return any of the 200,000
shares of Common stock paid to it hereunder. It is further agreed that if at
any time during the term of this Agreement, the Company or substantially all of
the Company’s assets are merged with or acquired by another entity, or some
other change occurs in the legal entity that constitutes the Company, the
Consultant shall retain and will not be requested by the Company to return any
of the 200,000 shares. The Company further agrees that all shares issued to
Consultant hereunder shall carry “piggyback registration rights” whereby such
shares will be included in the next registration statement filed by the company.

4.2  With each transfer of shares of Common Stock
to be issued pursuant to this Agreement (collectively, the “Shares”), Company
shall cause to be issued a certificate representing the Common Stock and a
written opinion of counsel for the Company stating that said shares are validly
issued, fully paid and non-assessable and that the issuance and eventual
transfer of them to Consultant has been duly authorized by the Company. Company
warrants that all Shares issued to Consultant pursuant to this Agreement shall
have been validly issued, fully paid and non-assessable and that the issuance
and any transfer of them to Consultant shall have been duly authorized by the
Company’s board of directors.

4.3  Consultant acknowledges that the shares of
Common Stock to be issued pursuant to this Agreement (collectively, the “Shares”)
have not been registered under the Securities Act of 1933, and accordingly are “restricted
securities” within the meaning of Rule 144 of the Act. As such, the Shares may
not be resold or transferred unless the Company has received an opinion of
counsel reasonably satisfactory to the Company that such resale or transfer is
exempt from the registration requirements of that Act.

4.5  In connection with the acquisition of Shares
hereunder, the Consultant represents and warrants to the Company, to the best
of its/his knowledge, as follows:

(a) Consultant
acknowledges that the Consultant has been afforded the opportunity to ask
questions of and receive answers from duly authorized officers to other
representatives of the Company concerning an investment in the Shares, and any
additional information which the Consultant has requested.

(b) Consultant’s
investment in restricted securities is reasonable in relation to the Consultant’s
net worth, which is in excess of ten (10) times the Consultant’s cost basis in
the Shares. Consultant has had experience in investments in restricted and
publicly traded securities, and Consultant has had experience in investments in
speculative securities and

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other investments which involve
the risk of loss of investment. Consultant acknowledges that an investment in
the Shares is speculative and involves the risk of loss. Consultant has the
requisite knowledge to assess the relative merits and risks of this investment
without the necessity of relying upon other advisors, and Consultant can afford
the risk of loss of his entire investment in the Shares. Consultant is (i) an
accredited investor, as that term is defined in Regulation D promulgated under
the Securities Act of 1933, and (ii) a purchaser described in Section 25102 (f)
(2) of the California Corporate Securities Law of 1968, as amended.

(c) Consultant
is acquiring the Shares for the Consultant’s own account for long-term
investment and not with a view toward resale or distribution thereof except in
accordance with applicable securities laws

5.             Monthly Cash Compensation. For performance under
this agreement on a month-to-month basis, Company will pay Consultant a cash
fee in the amount of $4,000 per month over the term of this Agreement, the
first monthly payment due and payable on September 1, 2006 and each following
monthly payment payable in full on the first day of the respective month. The
Company shall not be obligated to Consultant for any monthly cash fee for any
month or part thereof remaining from the date of any valid cancellation to
August 30, 2007.

6.             Non-Assignability of Services. Consultant’s
services under this contract are offered to Company only and may not be
assigned by Company to ant entity with which Company merges or which acquires
the Company or substantially all of its assets. In the event of such merger or
acquisition, all compensation to Consultant herein under the schedules set
forth herein shall remain due and payable, and any compensation received by the
Consultant may be retained in the entirety by Consultant, all without any
reduction or pro-rating and shall be considered and remain fully paid and
non-assessable. Notwithstanding the non-assignability of Consultant’s services,
Company shall assure that in the event of any merger, acquisition, or similar
change of form of entity, that its successor entity shall agree to complete an
obligations to Consultant, including the provision and transfer of all
compensation herein, and the preservation of the value thereof consistent with
the rights granted to Consultant by the Company herein, and to Shareholders.

7.             Expenses. Consultant agrees to pay for all its
ordinary expenses (phone, faxing, labor, etc.). Out of pocket expenses for
extraordinary items (travel required by/or specifically requested by the
Company, luncheons or dinners to large groups of investment professionals, mass
faxing to a sizable percentage of the Company’s constituents, investor
conference calls, print advertisements in publications, etc. shall be paid by
the Company within ten business days of receipt of invoice

8.             Indemnification. The Company warrants and
represents that all oral communications, written documents or materials
furnished to Consultant by the Company with respect to financial affairs,
operations, profitability and strategic planning of the Company are accurate and
Consultant may rely upon the accuracy thereof without independent investigation.
The Company will protect, indemnify and hold harmless Consultant against any
claims or litigation including any damages, liability, cost and reasonable
attorney’s fees as incurred with respect thereto resulting from Consultant’s
communication or dissemination of any said 

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information, documents or
materials excluding any such claims or litigation resulting from Consultant’s
communication or dissemination of information not provided or authorized by the
Company

9.             Representations. Consultant represents that it is
not required to maintain any licenses and registrations under federal or any
state regulations necessary to perform the services set forth herein.
Consultant acknowledges that, to the best of its knowledge, the performance of
the services set forth under this Agreement will not violate any rule or
provision of any regulatory agency having jurisdiction over Consultant.
Consultant acknowledges that, to the best of its knowledge. Consultant and its
officers and directors are not the subject of any investigation, claim, decree
or judgment involving any violation of the SEC or securities laws. Consultant
further acknowledges that it is not a securities Broker Dealer or a registered investment
advisor. Company acknowledges that, to the best of its knowledge, that it has
not violated any rule or provision of any regulatory agency having jurisdiction
over the Company. Company acknowledges that, to the best of its knowledge,
Company is not the subject of any investigation, claim, decree or judgment involving
any violation of the SEC or securities laws

10.           Legal Representation. The
Company acknowledges that it has been represented by independent legal counsel
in the preparation of this Agreement. Consultant represents that it has
consulted with independent legal counsel and/or tax, financial and business
advisors, to the extent the Consultant deemed necessary.

11.           Status as Independent Contractor.
Consultant’s engagement pursuant to this Agreement shall be as independent
contractor, and not as an employee, officer or other agent of the Company.
Neither party to this Agreement shall represent or hold itself out to be the
employer of employee of the other. Consultant further acknowledges the
consideration provided hereinabove is a gross amount of consideration and that
the Company will not withhold from such consideration any amounts as to income
taxes, social security payments or any other payroll taxes. All such income
taxes and other such payment shall be made or provided for by Consultant and
the Company shall have no responsibility or duties regarding such matters.
Neither the Company nor the Consultant possesses the authority to bind each
other in any Agreements without the express written consent of the entity to be
bound.

12.           Attorney’s Fee. If any legal
action or any arbitration or other proceeding is brought for the enforcement or
interpretation of this Agreement, or because of an alleged dispute, breach,
default or misrepresentation in connection with or related to this Agreement,
the successful or prevailing party shall be entitled to recover reasonable
attorneys’ fees and other costs in connection with that action or proceeding,
in addition to any other relief to which it or they may be entitled.

13.           Notices. All notices,
requests, and other communications hereunder shall be deemed to be duly given
if sent by U.S. mail, postage prepaid, addressed to the other party at the
address as set forth herein below:

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To the Company:

 

Surfect Technologies,
Inc.

Steve Anderson, Chief
Executive Officer

12000 G Candelaria NW

Albuquerque, NM 87112

Phone 505-294-6354

Fax
      505-294-6311

sanderson@surfect.com

 

To the Consultant:

 

Vision Advisors, Inc.

Terry McGovern, Managing
Director

3 Harbor Point, 3J

Mill Valley, CA 94941

Phone: 415-902-3001

Fax: 415-380-8875 fax

mcgovern@visionadvisors.net

 

It is understood that
either party may change the address to which notices for it shall be addressed
by providing notice of such change to the other party in the manner set forth
in this paragraph.

14.           Waiver. The waiver by either
party of a breach of any provision of this Agreement by the other party shall
not operate or be construed as a waiver of any subsequent breach by such other
party.

15.           Choice of Law, Jurisdiction and Venue.
This Agreement shall be governed by, construed and enforced in accordance with
the laws of the State of California. The parties agree that San Francisco
County, CA will be the venue of any dispute and will have jurisdiction over all
parties

16.           Arbitration.  Any controversy or claim arising out of or
relating to this Agreement, or the alleged breach thereof, or relating to
Consultant’s activities or remuneration under this Agreement shall be settled
by binding arbitration in California, in accordance with the applicable rules
of the American Arbitration Association, and judgment on the award rendered by
the arbitrator(s) shall be binding on the parties and may be entered in any
court having jurisdiction as provided by Paragraph 14 herein. The provisions of
Title 9 of Part 3 of the California Code of Civil Procedure, including section
1283.05, and successor statutes, permitting expanded discovery proceedings
shall be applicable to all disputes that are arbitrated under this paragraph.

17.           Complete Agreement. This
Agreement contains the entire Agreement of the parties relating to the subject
matter hereof. This Agreement and its terms may not be changed orally but only
by an Agreement in writing signed by the party against whom enforcement of any
waiver, change, modification, extension or discharge is sought.

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  AGREED TO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Company”

  	
  SURFECT TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  By:

  	
  /s/ Steve Anderson

  	
   

  
	
   

  	
   

  	
  Steve Anderson, CEO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Consultant”

  	
  Vision Advisors Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date: 8/5/06

  	
  By:

  	
  /s/ Terry McGovern

  	
   

  
	
   

  	
   

  	
  Terry McGovern, Managing Director

  
					

 

 7

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