Document:

GATEWAY DISTRIBUTORS, LTD
                             STOCK OPTION AGREEMENT

     THIS AGREEMENT is made as of February 1, 2006 between GATEWAY DISTRIBUTORS
LTD, a Nevada corporation (the "Company"), and Stephen F. Owens   at 1951 Tavern
Road, Alpine, CA 91901 (the Optionee").

            THE  PARTIES  AGREE  AS  FOLLOWS:

     1.     Option Grant.    The Company hereby grants to the Optionee an option
            -------------
     (the  "Option")  to  purchase  the  number  of  shares  of  the  Company's
     common  stock  (the "Shares"), for an exercise price per share (the "Option
     Price")  and  based  upon  a  Grant  Date,  all  as  set  forth  below:

               Shares  under  option:               800,000,000
               Option  Price  per  Share:           $.0001
               Grant  Date:                         February  1,  2006

          The  Option  granted  hereunder will be an incentive stock option
     within  the  meaning  of  Section  422 of the Internal Revenue Code of
     1986,  as  amended. This Option is granted in exchange for the $80,000
     loan  on  the  Company  books  owed  to  Stephens  F.  Owens.

     2.     Stockholder  Rights.    No  rights or privileges of a stockholder in
            -------------------
     the  Company  are  conferred  by  reason  of  the  granting  of the Option.
     Optionee  will  not become a stockholder in the Company with respect to the
     Shares  unless  and  until  the  Option has been properly exercised and the
     Option  Price  fully  paid  as  to  the  portion  of  the Option exercised.

     3.     Exercise  Procedure.  Subject  to  the  conditions set forth in this
            -------------------
     Agreement.  This  option  shall  be  exercised  by  the Optionee's delivery
     of  written  notice of exercise to the Treasurer of the Company, specifying
     the  number  of  shares  to  be purchased and the purchase price to be paid
     therefore  and accompanied by payment in full in accordance with Section 4.
     Such  exercise  shall  be  effective  upon  receipt by the Treasurer of the
     Company  of  such  written  notice  together with the required payment. The
     Optionee  may  purchase  less  than  the  number  of shares covered hereby,
     provided  that no partial exercise of this option may be for any fractional
     share  or  for  fewer  than  ten  whole  shares

     4.     Continuous  Relationship  with  the  Company.  Except  as  otherwise
            --------------------------------------------
     provided  in  this  Section  3,  this  option  may  not be exercised unless
     the Optionee, at the time he or she exercises this option, is, and has been
     at  all  times since the date of grant of this option, an employee, officer
     or  director  of,  or  consultant  or advisor to, the Company (an "Eligible
     Optionee")

     5.     Termination  of  Relationship  with  the  Company.  If  the Optionee
            --------------------------------------------------
     ceases  to  be  an  Eligible  Optionee  for  any  reason,  then,  except as
     provided in paragraphs (a) and (b) below, the right to exercise this option
     shall  terminate  one  (1) year after such cessation (but in no event after
     the  Expiration  Date), provided that this option shall be exercisable only
     to the extent that the Optionee was entitled to exercise this option on the
     date  of  such  cessation.  Notwithstanding the foregoing, if the Optionee,
     prior  to  the  Expiration Date, materially violates the non-competition or
     confidentiality  provisions of any employment contract, confidentiality and
     nondisclosure  agreement  or  other  agreement between the Optionee and the
     Company.  The  right  to  exercise  this option shall terminate immediately
     upon  written  notice  to  the  Optionee  from  the Company describing such
     violation.

                                        1
<PAGE>
               (a)     Exercise  Period  Upon  Death  or  Disability.  If  the
               Optionee  dies  or  becomes  disabled  (within  the  meaning  of
               Section  22(e)(3) of the Code) prior to the Expira1ion Date while
               he or she is an Eligible Optionee, or if the Optionee dies within
               three months after the Optionee ceases to be an Eligible Optionee
               (other  than  as the result of a termination of such relationship
               by  the Company for "cause" as specified in paragraph (f) below),
               this  option  shall  be  exercisable,  within the period of three
               years  following  the date of death or disability of the Optionee
               (whether or not such exercise occurs before the Expiration Date),
               by  the  Optionee  or  by  the  person  to  whom  this  option is
               transferred  by  will  or  the  laws of descent and distribution,
               provided that this option shall be exercisable only to the extent
               that  this  option was exercisable by the Optionee on the date of
               his  or her death or disability. Except as otherwise indicated by
               the  context,  the term "Optionee," as used in this option, shall
               be deemed to include the estate of the Optionee or any person who
               acquires  the  right  to  exercise  this  option  by  Bequest  or
               inheritance  or  otherwise by reason of the death of the Optionee

               (b)     Discharge  for  Cause.  If  the  Optionee,  prior  to the
               Expiration  Date,  is  discharged  by  the  company  for  "cause"
               (as  defined  below),  the  right  to  exercise this option shall
               terminate  immediately upon such cessation of employment. "Cause"
               shall  mean willful misconduct by the Optionee or willful failure
               to  perform  his or her responsibilities in the best interests of
               the  Company  (including,  without  limitation,  breach  by  the
               Optionee  of  any  provision  of  any  employment,  consulting,
               advisory,  nondisclosure,  non-competition  or  other  similar
               agreement between the Optionee and the Company), as determined by
               the  Company,  which  determination  shall  be  conclusive.  The
               Optionee  shall be considered to have been discharged for "cause"
               if  the  Company  determines, within 30 days after the Optionee's
               resignation,  that  discharge  for  cause  was  warranted.

     6     Payment of Purchase Price.
           -------------------------

               (a)     Method  of  Payment.  Payment  of  the purchase price for
               shares  purchased  upon  exercise  of  this  option shall be made
               (i) by delivery to the Company of cash or a check to the order of
               the  Company  in  an  amount  equal to the purchase price of such
               shares,  (ii)  subject to the consent of the Company. by delivery
               to  the  Company  of  shares  of Common Stock of the Company then
               owned  by the Optionee having a fair market value equal in amount
               to  the  purchase  price of such shares, (iii) by any other means
               which  the  Board of Directors determines are consistent with the
               purpose  of  the  Plan  and  with applicable laws and regulations
               (including,  without  limitation,  the  provisions  of Rule 16b-3
               under  the  Securities  Exchange  Act  of  1934  and Regulation T
               promulgated  by  the  Federal  Reserve  Board),  or  (iv)  by any
               combination  of  such  methods  of  payment.

               (b)     Valuation  of  Shares  or  Other  Non-Cash  Consideration
               Tendered  in  Payment  of  Purchase  Price.  For  the  purposes
               hereof,  the  fair  market  value  of  any share of the Company's
               Common  Stock  or  other  non-cash  consideration  which  may  be
               delivered  to  the  Company  in  exercise of this option shall be
               determined  in  good  faith  by  the  Board  of  Directors of the
               Company.

                                        2
<PAGE>
               (c)     Delivery of Shares Tendered in Payment of Purchase Price.
               If  the  Optionee  exercises  this  option  by delivery of shares
               of  Common  Stock of the Company, the certificate or certificates
               representing  the  shares  of  Common  Stock of the Company to be
               delivered  shall  be  duly  executed  in blank by the Optionee or
               shall  be  accompanied  by  a  stock power duly executed in blank
               suitable for purposes of transferring such shares to the Company.
               Fractional  shares  of  Common  Stock  of the Company will not be
               accepted in payment of the purchase price of shares acquired upon
               exercise  of  this  option.

               (d)     Restrictions  on Use of Option Stock. Notwithstanding the
               foregoing,  no  shares  of  Common  Stock  of  the Company may be
               tendered  in  payment  of  the purchase price of shares purchased
               upon exercise of this option if the shares to be so tendered were
               acquired within twelve (12) months before the date of such tender
               through  the  exercise of an option granted under the Plan or any
               other  stock  option  or  restricted  stock  plan of the Company.

     Delivery of Shares: Compliance with Securities Laws. Etc
     --------------------------------------------------------

               (a)     General.  The  Company  shall, upon payment of the option
               price  for  the  number  of  shares  purchased and paid for, make
               prompt  delivery of such shares to the Optionee, provided that if
               any  law  or  regulation  requires the Company to take any action
               with respect to such shares before the issuance thereof, then the
               date  of delivery of such shares shall be extended for the period
               necessary  to  complete  such  action.

               (b)     Listing,  Qualification Etc. This option shall be subject
               to  the  requirement  that  if  at  any  time,  counsel  to  the
               Company  shall  determine  that  the  listing,  registration  or
               qualification  of  the  shares subject hereto upon any securities
               exchange  or  under  any  state or federal law, or the consent or
               approval  of  any  governmental  or  regulatory body, or that the
               disclosure  of  non-public information or the satisfaction of any
               other  condition is necessary as a condition of, or in connection
               with,  the  issuance or purchase of shares hereunder, this option
               may  not  be exercised, in whole or in part, unless such listing,
               registration,  qualification,  consent or approval, disclosure or
               satisfaction  of such other condition shall have been effected or
               obtained  on  terms acceptable to the Board of Directors. Nothing
               herein  shall  be  deemed  to  require  the Company to apply for,
               effect  or  obtain  such  listing, registration, qualification or
               disclosure,  or  to  satisfy  such  other  condition.

8.     No  Special  Employment  or  Similar  Rights.  Nothing  contained in this
       ---------------------------------------------
option  shall  be  construed  or deemed by any person under any circumstances to
bind  the  Company  to  continue  the  employment  or  other relationship of the
Optionee  with  the  Company  for  the  period  within  which this option may be
exercised.

9.     Rights  as  a  Shareholder.  The  Optionee  shall  have  no  rights  as a
       --------------------------
shareholder  with  respect  to  any shares which may be purchased by exercise of
this  option  (including, without limitation, any rights to receive dividends or
non-cash  distributions  with  respect  to  such  shares)  unless  and  until  a
certificate  representing  such  shares  is  duly  issued  and  delivered to the
Optionee.  No  adjustment  shall  be made for dividends or other right for which
the  record  date  is  prior  to  the  date  such  stock  certificate is issued.

10.     Termination.    This  Option will expire, unless previously exercised in
        -----------
full,  on

                                        3
<PAGE>
February  1,2007 which date is on or prior to the third anniversary of the Grant
Date.

11.     Miscellaneous.    This  Agreement  sets  forth the complete agreement of
        -------------
the  parties  concerning  the  subject  matter  hereof,  superseding  all  prior
agreemen1s,  negotiations and understandings. This Agreement will be governed by
the substantive law of the State of Nevada, and may be executed in counterparts.

     The  parties  hereby  have  entered  into this Agreement as of the date set
forth  above.

GATEWAY DISTRIBUTORS, LTD

By:
   --------------------------------

       Rick Bailey

Title: President/CEO

"Optionee"

-----------------------------

Stephen F. Owens (the Optionee")

                                        4CONSULTING AGREEMENT

     This Consulting Agreement (the "Agreement") is made and entered into this
1st day of March 2006, by and between Gateway Distributors, Ltd., a Nevada
corporation ("GWDB"), whose principal place of business is 3220 Pepper Lane,
Las Vegas, Nevada 89120, and Steve Hayden  (the "Consultant") at 941 East Grand
Cerritos Ave, Las Vegas, Nevada 89120.

                                    RECITALS

     WHEREAS, Consultant is willing and capable of providing on a "best efforts"
basis various mergers and acquisition, feasibility, fairness opinions, legal
services and management services for and on behalf of GWDB in connection with
GWDB's mergers and acquisition projects, joint ventures, strategic alliances and
in connection with GWDB's compliance with state and Federal securities laws and
regulations; and

     WHEREAS, GWDB desires to retain the Consultant as an independent Consultant
to provide the above-described consulting services, and the Consultant desires
to be retained in that capacity upon the terms and conditions hereinafter set
forth.

     NOW THEREFORE, in consideration of the mutual promises and agreements
hereinafter set forth, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

CONSULTING SERVICES.  GWDB hereby retains the Consultant as an independent
     Consultant to GWDB and the Consultant hereby accepts and agrees to such
     retention. The Consultant shall render to GWDB such services of an advisory
     or consultative nature in order to assist GWDB in the analysis of proposed
     divestiture/sales or acquisitions that may benefit GWDB; rendering of legal
     advice and services in the structuring of divestitures, acquisitions, joint
     ventures, strategic alliances, and other business related matters; and in
     order to permit GWDB to comply with all state and Federal securities laws
     and regulations.

TIME, PLACE AND MANNER OF PERFORMANCE. The Consultant shall be available for
     advice and counsel to the president and chief executive officer of GWDB,
     Rick Bailey, at such reasonable and convenient times and places as may be
     mutually agreed upon. Except as aforesaid, the time, place and manner of
     performance of the services hereunder, shall be determined in the sole
     discretion of the Consultant; however, the Consultant will provide a
     minimum of 250 hours.

TERM OF AGREEMENT. The term of this Agreement shall be for 12 months; commencing
     March 1, 2006 and terminating on March 1, 2007, unless terminated as set
     forth herein.

                                        1
<PAGE>
COMPENSATION. In consideration of the services to be provided for GWDB by the
     Consultant, GWDB hereby agrees to the following deliverable schedule for
     compensation:

     MERGERS AND ACQUISITIONS PROJECT CONSULTING.   Upon execution of this
     --------------------------------------------
     Consulting Agreement and the commencement by the Consultant of services to
     be rendered pursuant to this Agreement, GWDB agrees to issue and deliver
     400,000,000 shares of common stock as compensation to the Consultant for
     the services to be rendered to GWDB. At the sole discretion of GWDB's board
     of directors or by GWDB's president and chief executive officer, GWDB may
     thereafter provide an additional number of shares of common stock at any
     time prior to the termination date of this Agreement, based upon progress
     reports, and/or within thirty (30) days of receipt, acceptance and approval
     by GWDB of the final deliverables. GWDB agrees, as soon as reasonably
     practicable, to register the Shares for resale under the Securities Act of
     1933, as amended, pursuant to a registration statement filed with the
     Securities and Exchange Commission on Form S-8 (or, if Form S-8 is not then
     available, such other form of registration statement then available).

CONFIDENTIALITY.  The Consultant covenants that all information concerning GWDB,
     including proprietary information, which he 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 GWDB,
     nor shall the confidential information be disclosed by the Consultant to
     any third party without prior written consent of GWDB, provided, however,
                                                            ------------------
     that the Consultant shall not be obligated to treat as confidential, or
     return to GWDB copies of confidential information that (i) was publicly
     known at the time of disclosure to the Consultant; (ii) becomes publicly
     known or available thereafter other than by any means in violation of this
     Agreement or any other duty owed to GWDB by the Consultant, or; (iii) is
     lawfully disclosed to the Consultant by a third party or is required by any
     entity or court of competent jurisdiction or lawful request of any
     regulatory body or agency.

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

EXPENSES. Consultant covers typical expenses expected to be incurred by the
     Consultant. For other extraordinary expenses beyond minor daily operating
     expenses to perform services under this Agreement, GWDB shall reimburse the
     Consultant on demand, net 30 days, for all expenses and other
     disbursements, provided these expenses and disbursements shall have GWDB's
     prior written approval and be verifiable with receipts and documentation as
     may be required under GAAP for accounting purposes

                                        2
<PAGE>
     of GWDB. All expense invoices pre-approved and received by GWDB will be
     addressed on a net 30-day basis.

TERMINATION. Notwithstanding any provision contained in this Agreement to the
     contrary, this Agreement may be terminated by GWDB at any time, for any
     reason, with or without cause, at the sole discretion of GWDB, with 30 days
     written notice to Consultant. Upon termination of this Agreement prior to
     the end of its anticipated expiration on July 31, 2003, with or without
     cause, GWDB has no requirement for payment of compensation or expenses of
     any kind, explicit or implicit, and GWDB assumes no liabilities either
     express or implied as a result of any terms of this Agreement. Until
     receipt of Consultant's deliverables by GWDB and the acceptance by GWDB of
     the adequacy and completeness of these deliverables in the sole discretion
     of GWDB, there is no creation of liabilities either express or implied
     under this Agreement; except that, at the sole discretion of GWDB, it may
     provide portions of compensation for work product received and accepted,
     and for project progress, as optional and voluntary interim compensation to
     Consultant by GWDB, up to the full amount to be paid. GWDB may also, at any
     time, terminate this Agreement for cause. For purposes of this Agreement
     the term "cause" means a termination of this Agreement during the term
     which is a result of (i) the Consultant's felony conviction or plea of "no
     contest" to a felony; (ii) the Consultant's willful disclosure of material
     trade secrets or other material confidential information related to
     Consultant's business; or (iii) the Consultant's willful and continued
     failure to substantially perform his duties for GWDB after a written demand
     for substantial performance is delivered by GWDB to the Consultant, which
     demand specifically identifies the manner in which GWDB believes that the
     Consultant has not substantially performed his duties, and which
     performance is not substantially corrected by the Consultant within 10 days
     of delivery of such demand. For purposes of the previous sentence, no act
     or failure to act on the Consultant's part shall be deemed "willful" unless
     done, or omitted to be done, by the Consultant not in good faith and
     without reasonable belief that the Consultant's action or omission was in
     the best interest of GWDB. In the accomplishment of the performance of such
     duties and responsibilities as are assigned to Consultant under the terms
     of this Agreement, Consultant shall at all times conduct himself in a
     professional manner and shall conform to those standards of ethical conduct
     as are generally expected from those performing such services in the
     business community

WORK PRODUCT. It is agreed that the Consultant retains all property rights with
     respect to the deliverables until payment in full for all work product is
     received by the Consultant from GWDB and GWDB has given final quality
     assurance approval to the work product and deliverables.

CONFLICT OF INTEREST. The Consultant shall be free to perform services for other
     persons. The Consultant will notify GWDB of his performance of consulting
     services for any other person, which could conflict with his obligations
     under this Agreement. Upon receiving such notice, GWDB may terminate this
     Agreement or may in writing waive

                                        3
<PAGE>
     the conflict concerns and continue with this Agreement at the sole
     discretion of GWDB.

INDEMNIFICATION FOR SECURITIES LAW VIOLATIONS.  GWDB and the Consultant agree to
     mutually indemnify and hold each other and each officer, director and
     controlling person of GWDB or the Consultant harmless against any losses,
     claims, damages, liabilities and/or expenses (including any legal or other
     expenses reasonably incurred in investigating or defending any action or
     claim in respect thereof) to which the Consultant or GWDB or such officer,
     director or controlling person may become subject under the Securities Act
     of 1933, as amended, or the Securities Exchange Act of 1934, as amended,
     because of inappropriate actions of the Consultant or GWDB or their
     agent(s). GWDB and the Consultant will comply with all of the applicable
     laws of the Securities Act of 1933.

NOTICES. Any notices required or permitted to be given under this Agreement
     shall be sufficient if in writing and delivered or sent by registered or
     certified mail to the principal office of each party.

WAIVER OF BREACH. Any waiver by GWDB of a breach of any provision of this
     Agreement by the Consultant shall not operate or be construed as a waiver
     of any subsequent breach by the Consultant. Any waiver by Consultant of a
     breach of any provision of this Agreement by GWDB shall not operate or be
     construed as a waiver of any subsequent breach by GWDB.

ASSIGNMENT. This Agreement and the rights and obligations of the parties
     hereunder shall not be assignable, unless written authorization to assign
     the Agreement, rights and obligations hereunder is obtained from the other
     non-assigning Party.

Severability. All agreements and covenants contained herein are severable, and
------------
     in the event any of them shall be held to be invalid by any competent
     court, the Agreement shall be interpreted as if such invalid agreements or
     covenants were not contained herein.

ENTIRE AGREEMENT.  This Agreement contains the entire agreement between the
     Parties, and may not be waived, amended, 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 in any respect
     shall not be deemed a waiver of any further or future rights.

WAIVER AND MODIFICATION.  Any waiver, alteration or modification of any of the
     provisions of this Agreement shall be valid only if made in writing and
     signed by the parties hereto. Each party hereto, from time to time, may
     waive any of its rights hereunder without effecting a waiver with respect
     to any subsequent occurrences or transactions hereof.

                                        4
<PAGE>
COUNTERPARTS. This Agreement may be executed in counterparts, each of which
     shall be deemed an original but both of which taken together shall
     constitute but one and the same document.

GOVERNING LAW; VENUE.  This Agreement shall be governed by and construed in
          accordance with the laws of the State of Nevada, and all issues of
          interpretation arising under this Agreement including, without
          limitation, issues with respect to capacity of the parties, execution
          and construction of the Agreement, the manner of performance under the
          Agreement, the validity of the Agreement and the rights and duties of
          the parties hereunder shall be decided in accordance with such law.
          The parties stipulate and agree that any and all legal actions or
          proceedings, which arise under this Agreement, shall be commenced
          within the State of Nevada, in a court of competent jurisdiction.

COSTS AND FEES.  In the event that any of the parties hereto institutes any
          action, suit or proceeding to enforce the provisions of this
          Agreement, or for breach thereof, or to declare the rights of the
          parties with respect thereto, the prevailing party shall be entitled
          to recover, in addition to damages, injunctive or other relief,
          reasonable costs and expenses including, without limitation, costs and
          reasonable attorneys' fees incurred in the furtherance of such action,
          suit or proceeding.

NEGOTIATED TRANSACTION.  The provisions of this Agreement were negotiated by
          both of the parties hereto, and said Agreement shall be deemed to have
          been drafted by both parties.

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

CONSULTANT

-----------------------------------
Steve Hayden

GATEWAY DISTRIBUTORS, LTD.

-----------------------------------
Rick Bailey, Chairman/President

Date
     ----------------

                                        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]