Document:

stock option

    
      
        

      

      
        Exhibit 10.7
          Option Agreement between Skye and Sundance Financial Corp.

        

          STOCK
            OPTION AGREEMENT

          

          

          THIS
            STOCK OPTION AGREEMENT (this "Agreement"), dated as of February 11,
            2004,
            (the "Grant Date"), is between Tankless Systems Worldwide, Inc., a Nevada
            corporation (the "Company"), and Sundance Financial Corporation, a Turks
            and
            Caicos Company (the "Grantee"). 

          

          
            	
                    1.

                  	
                    Grant
                      of Option, Exercise Price and Term.
                      

                  

          

          

          (a) The
            Company irrevocably grants to the Grantee and Grantee is entitled, subject
            to
            the terms and conditions set forth in this Stock Option Agreement (the
            "Option")
            to purchase Three Hundred Thousand (300,000) fully paid, duly authorized
            and
            nonassessable shares of common stock, $0.001 par value per share, of
            the Company
            (the "Option Shares") from the Company, at any time commencing from the
            date
            hereof and continuing for five (5) years from the date hereof, (the “Exercise
            Period”) at an exercise price of Fifty cents ($0.50 U.S.) per Share (the
“Exercise Price”), subject to adjustment pursuant to Section 8
            hereof

          

          (b) The
            term
            of this Option shall be a period of five (5) years from the Grant Date
            (the
            "Option Period"). During the Option Period, the Option shall be fully
            vested.

          

          (c) The
            Option shall be fully exercisable as of the Grant Date. 

          

          (d) The
            Company shall not be required to issue any fractional shares of Stock.
            

          

          2. Method
            of Exercise.
            Subject
            to the provisions of this Section, the Stock Options may be exercised,
            in whole
            or in part, at any time during the option term by giving written notice
            of
            exercise to the Company, in form satisfactory to the Company, specifying
            the
            number of shares of Stock subject to the Stock Option to be purchased
            and the
            aggregate Exercise Price for such shares, together with payment in full
            of such
            aggregate Exercise Price. The Exercise Price of any Stock Option shall
            be paid
            in full in cash (by cash, certified or bank check, wire transfer, or
            any
            combination thereof, or such other instrument as the Company may accept).
            The
            Option may not be exercised unless the Grantee (a) enters into any document
            (a
            "Private Issuance Document") the Company determines necessary to ensure
            that the
            Option Shares are issued pursuant to an available exemption from the
            registration requirements of the Securities Act of 1933, as amended (the
            "Securities Act"), and applicable state securities laws, and (b) there
            has been
            compliance with all the preceding provisions of this Section 2. For all
            purposes
            of this Stock Option Agreement, the date of the exercise of the Option
            shall be
            the date upon which there is compliance with all such requirements.

          

          3. Common
            Stock to be Issued. Subject
            to the terms of this Option Agreement, upon notice of exercise any portion
            of
            the Option and payment of such Exercise Price as aforesaid, the Company
            shall
            promptly issue and cause to be delivered to the Grantee or to such person
            or
            persons as the Grantee may designate in writing, a certificate or certificates
            (in such name or names as the Grantee may designate in writing) for the
            number
            of duly authorized, fully paid and non-assessable whole Shares to be
            purchased
            upon the exercise of this Option, and shall deliver to the Grantee Common
            Stock.
            This Option shall be exercisable, at the sole election of the Grantee,
            either in
            full or from time to time in part and, in the event that any certificate
            evidencing this Option (or any portion thereof) is exercised prior to
            the
            Termination Date with respect to less than all of the Shares specified
            therein
            at any time prior to the Termination Date, a new certificate of like
            tenor
            evidencing the remaining portion of this Option shall be issued by the
            Company,
            if so requested by the Grantee. 

          

          4. Transfer
            Agent. Upon
            the
            Company’s receipt of a facsimile or original of Grantee’s signed Election to
            Exercise Option, the Company shall instruct its transfer agent to issue
            one or
            more stock Certificates representing that number of shares of Common
            Stock which
            the Grantee is entitled to purchase in accordance with the terms and
            conditions
            of this Option and the Election to Exercise Option. 

          

          

          

          

          
            
              
              

            

            
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          5. Shareholder
            of Record. Each
            person in whose name any certificate for shares of Common Stock shall
            be issued
            shall for all purposes be deemed to have become the holder of record
            of the
            Common Stock represented thereby on the date on which the Option was
            exercised
            and payment of the purchase price and any applicable taxes was made,
            irrespective of date of issue or delivery of such certificate, except
            that if
            the date of such exercise and payment is a date when the Shares transfer
            books
            of the Company are closed, such person shall be deemed to have become
            the holder
            of such Shares on the next succeeding date on which such Share transfer
            books
            are open. The Company shall not close such Share transfer books at any
            one time
            for a period longer than seven (7) days. 

          

          6. Actions;
            Costs.
            It
            shall be the Company’s responsibility to take all necessary actions and to bear
            all such costs to issue the certificate of Common Stock as provided herein,
            including the responsibility and cost for delivery of an opinion letter
            to the
            transfer agent, if so required, and any documentary stamp taxes if any,
            attributable to the initial issuance of the Shares. The person in whose
            name the
            certificate of Common Stock is to be registered shall be treated as a
            shareholder of record on and after the exercise date. Upon exercise of
            any
            portion of the Option that is to be exercised in part, the Company shall
            issue
            to the Grantee a written acknowledgment of the number of Shares that
            remain
            available under the Option, if so requested by Grantee. 

          

          7. Payment
            of Withholding Taxes.
            If the
            Company is obligated to withhold an amount on account of any tax imposed
            as a
            result of the exercise of the Option, the Grantee shall be required to
            pay such
            amount to the Company, as provided in the Plan. The Grantee acknowledges
            and
            agrees that the Grantee is responsible for the tax consequences associated
            with
            the grant of the Option and its exercise. 

          

          8. Adjustment
            of Common Stock Price, Exercise Price and the Number of Shares.
The
            number and kind of securities purchasable upon the exercise of this Option
            and
            the Exercise Price shall be subject to adjustment from time to time after
            the
            date hereof upon the happening of certain events, as follows:

          

          8.1 Adjustments.
            The
            number of Shares purchasable upon the exercise of this Option shall be
            subject
            to adjustments as follows:

          

          (a) In
            case
            the Company shall (i) pay a dividend on Common Stock in Common Stock
            or
            securities convertible into, exchangeable for or otherwise entitling
            a holder
            thereof to receive Common Stock, (ii) declare a dividend payable in cash
            on its
            Common Stock and at substantially the same time offer its shareholders
            a right
            to purchase new Common Stock (or securities convertible into, exchangeable
            for
            or other entitling a holder thereof to receive Common Stock) from the
            proceeds
            of such dividend (all Common Stock so issued shall be deemed to have
            been issued
            as a stock dividend), (iii) subdivide its outstanding shares of Common
            Stock
            into a greater number of shares of Common Stock, or (iv) issue by
            reclassification of its Common Stock any shares of Common Stock of the
            Company,
            the number of shares of Common Stock issuable upon exercise of the Options
            immediately prior thereto shall be adjusted so that the holders of the
            Options
            shall be entitled to receive after the happening of any of the events
            described
            above that number and kind of shares as the holders would have received
            had such
            Options been converted immediately prior to the happening of such event
            or any
            record date with respect thereto. 

          

          (b) In
            case
            the Company shall distribute, without receiving consideration therefor,
            to all
            holders of its Common Stock evidences of its indebtedness or assets (excluding
            cash dividends other than as described in Section (8)(a)(ii)), then in
            such
            case, the number of shares of Common Stock thereafter issuable upon exercise
            of
            the Options shall be determined by multiplying the number of shares of
            Common
            Stock theretofore issuable upon exercise of the Options, by a fraction,
            of which
            the numerator shall be the closing bid price per share of Common Stock
            on the
            record date for such distribution, and of which the denominator shall
            be the
            closing bid price of the Common Stock less the then fair value (as determined
            by
            the Board of Directors of the Company, whose determination shall be conclusive)
            of the portion of the assets or evidences of indebtedness so distributed
            per
            share of Common Stock. Such adjustment shall be made whenever any such
            distribution is made and shall become effective immediately after the
            record
            date for the determination of stockholders entitled to receive such
            distribution.

          

          

          
            
              
              

            

            
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          (c) Any
            adjustment in the number of shares of Common Stock issuable hereunder
            otherwise
            required to be made by this Section 8 will not have to be adjusted if
            such
            adjustment would not require an increase or decrease in one percent (1%)
            or more
            in the number of shares of Common Stock issuable upon exercise of the
            Option. No
            adjustment in the number of Shares purchasable upon exercise of this
            Option will
            be made for the issuance of shares of capital stock to directors, employees
            or
            independent Optionors pursuant to the Company’s or any of its subsidiaries’
stock option, stock ownership or other benefit plans or arrangements
            or trusts
            related thereto or for issuance of any shares of Common Stock pursuant
            to any
            plan providing for the reinvestment of dividends or interest payable
            on
            securities of the Company and the investment of additional optional amounts
            in
            shares of Common Stock under such plan.

          

          (d) Whenever
            the number of shares of Common Stock issuable upon the exercise of the
            Options
            is adjusted, as herein provided, the Exercise Price shall be adjusted
            (to the
            nearest cent) by multiplying such Exercise Price immediately prior to
            such
            adjustment by a fraction, of which the numerator shall be the number
            of shares
            of Common Stock issuable upon the exercise of each share of the Options
            immediately prior to such adjustment, and of which the denominator shall
            be the
            number of shares of Common Stock issuable immediately thereafter.

          

          (e) The
            Company from time to time by action of its Board of Directors may decrease
            the
            Exercise Price by any amount for any period of time if the period is
            at least
            twenty (20) days, the decrease is irrevocable during the period and the
            Board of
            Directors of the Company in its sole discretion shall have made a determination
            that such decrease would be in the best interest of the Company, which
            determination shall be conclusive. Whenever the Exercise Price is decreased
            pursuant to the preceding sentence, the Company shall mail to holders
            of record
            of the Options a notice of the decrease at least fifteen (15) days prior
            to the
            date the decreased Exercise Price takes effect, and such notice shall
            state the
            decreased Exercise Price and the period it will be in effect.

          

          (f) Price/Share
            Adjustment. Except as provided in the last sentence of this Paragraph
            8.1(f), if
            at any time during the first two (2) years of the term of this Option
            Agreement,
            the Company enters into any NEW Stock, Option or Option Agreement(s),
            for a
            price that is LOWER
            than the
            Exercise Price of this Option, which is Fifty cents ($0.50 U.S.) per
            Share, then
            all Options represented by this Agreement shall be lowered by the Company
            to
            reflect the NEW lower Common Stock and Exercise Price, to be equal to
            the lower
            NEW Stock, Option or Exercise Price of such Agreement. Notwithstanding
            any other
            provision of this Paragraph 8.1(f) to the contrary, no adjustment to
            either
            price or number of shares shall be made or required by occasion of (i)
            the grant
            or issuance of any stock, stock option, stock Option, stock appreciation
            right
            or other similar benefit relating to securities to any existing officer,
            director or employee or to any other person as an inducement to become
            an
            officer, director or employee, or to any person rendering services to
            the
            Company in connection with a consulting agreement, whether such grant
            or
            issuance is in respect of stock restricted under Section 144 or otherwise
            the
            subject of a Registration Statement filed with the SEC under Form S-8
            or its
            equivalent, or (ii) any adjustment required pursuant to the other provisions
            of
            this Section 8.

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          

          
            
              
              

            

            
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          8.2 Mergers,
            Etc. 
            In the
            case of any (i) consolidation or merger of the Company into any entity
            (other
            than a consolidation or merger that does not result in any reclassification,
            exercise, exchange or cancellation of outstanding shares of Common Stock
            of the
            Company), (ii) sale, transfer, lease or conveyance of all or substantially
            all
            of the assets of the Company as an entirety or substantially as an entirety,
            or
            (iii) reclassification, capital reorganization or change of the Common
            Stock
            (other than solely a change in par value, or from par value to no par
            value), in
            each case as a result of which shares of Common Stock shall be converted
            into
            the right to receive stock, securities or other property (including cash
            or any
            combination thereof), each holder of Options then outstanding shall have
            the
            right thereafter to exercise such Option only into the kind and amount
            of
            securities, cash and other property receivable upon such consolidation,
            merger,
            sale, transfer, capital reorganization or reclassification by a holder
            of the
            number of shares of Common Stock of the Company into which such Options
            would
            have been converted immediately prior to such consolidation, merger,
            sale,
            transfer, capital reorganization or reclassification, assuming such holder
            of
            Common Stock of the Company (A) is not an entity with which the Company
            consolidated or into which the Company merged or which merged into the
            Company
            or to which such sale or transfer was made, as the case may be (“constituent
            entity”), or an affiliate of a constituent entity, and (B) failed to exercise
            his or her rights of election, if any, as to the kind or amount of securities,
            cash and other property receivable upon such consolidation, merger, sale
            or
            transfer (provided that if the kind or amount of securities, cash and
            other
            property receivable upon such consolidation, merger, sale or transfer
            is not the
            same for each share of Common Stock of the Company held immediately prior
            to
            such consolidation, merger, sale or transfer by other than a constituent
            entity
            or an affiliate thereof and in respect of which such rights or election
            shall
            not have been exercised (“non-electing share”), then for the purpose of this
            Section 8.2 the kind and amount of securities, cash and other property
            receivable upon such consolidation, merger, sale or transfer by each
            non-electing share shall be deemed to be the kind and amount so receivable
            per
            share by a plurality of the non-electing shares). If necessary, appropriate
            adjustment shall be made in the application of the provision set forth
            herein
            with respect to the rights and interests thereafter of the holder of
            Options, to
            the end that the provisions set forth herein shall thereafter correspondingly
            be
            made applicable, as nearly as may reasonably be, in relation to any shares
            of
            stock or other securities or property thereafter deliverable on the exercise
            of
            the Options. The above provisions shall similarly apply to successive
            consolidations, mergers, sales, transfers, capital reorganizations and
            reclassifications. The Company shall not effect any such consolidation,
            merger,
            sale or transfer unless prior to or simultaneously with the consummation
            thereof
            the successor company or entity (if other than the Company) resulting
            from such
            consolidation, merger, sale or transfer assumes, by written instrument,
            the
            obligation to deliver to the holder of Options such shares of stock,
            securities
            or assets as, in accordance with the foregoing provision, such holder
            may be
            entitled to receive under this Section 8.2.

          

          9. Changes
            in Company's Capital Structure.
            The
            existence of the Option will not affect in any way the right or authority
            of the
            Company or its stockholders to make or authorize 

          

          (a) any
            adjustment, recapitalization, reorganization or other changes in the
            Company's
            capital structure or its business; 

          

          (b) any
            acquisition, merger or consolidation of the Company; 

          

          (c) any
            issuance of bonds, debentures, preferred or prior preference stock ahead
            of or
            affecting the Stock or the rights thereof; 

          

          (d) the
            dissolution or liquidation of the Company; 

          

          (e) any
            sale
            or transfer of all or any part of the Company's assets or business; or
            

          

          (f) any
            other
            corporate act or proceeding, whether of a similar character or otherwise.
            

          

          10. Employment
            Rights.
            No
            provision of this Agreement or of the Option granted hereunder shall
            give the
            Grantee any right to continue in the employ of the Company or any Affiliate
            of
            the Company, create any inference as to the length of employment of the
            Grantee,
            affect the right of the Company or any Affiliate of the Company to terminate
            the
            employment of the Grantee, with or without Cause, or give the Grantee
            any right
            to participate in any employee welfare or benefit plan or other program
            of the
            Company or any Affiliate of the Company. 

          
            
              
              

            

            
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          11. No
            Rights as Stockholders: Notices to Grantees. Nothing
            contained in this Option shall be construed as conferring upon the Grantee
            or
            its transferees any rights as a stockholder of the Company, including
            the right
            to vote, receive dividends, consent or receive notices as a stockholder
            with
            respect to any meeting of stockholders for the election of directors
            of the
            Company or any other matter. If, however, at any time prior to the expiration
            of
            the Option Period and prior to the exercise of this Option, any of the
            following
            events shall occur:

          

          (a) any
            action which would require an adjustment pursuant to Section 8.1;
            or

           

          (b) a
            dissolution, liquidation or winding up of the Company or any consolidation,
            merger or sale of its property, assets and business as an entirety; then
            in any
            one or more of said events, the Company shall give notice in writing
            of such
            event to the Grantee at least ten (10) days prior to the date fixed as
            a record
            date or the date of closing the transfer books for the determination
            of the
            shareholders entitled to any relevant dividend, distribution, subscription
            rights, or other rights or for the effective date of any dissolution,
            liquidation of winding up or any merger, consolidation, or sale of substantially
            all assets, but failure to mail or receive such notice or any defect
            therein or
            in the mailing thereof shall not affect the validity of any such action
            taken.
            Such notice shall specify such record date or the effective date, as
            the case
            may be.

          

          12. Obligation
            to Register.
            Grantee
            acknowledges and agrees that the Company does not have any present intention
            and
            is under no obligation to register the Option Shares under the Securities
            and
            Exchange Act of 1933 or applicable state securities laws.

          

          13. Piggy-Back
            Registration Rights. The
            Company hereby gives the Undersigned unlimited Piggy-Back Registration
            Rights
            under this Option Agreement. If at any time the Company proposes to file
            with
            the SEC a Registration Statement relating to an offering for its own
            account or
            the account of others under the 1933 Act of any of its securities (other
            than on
            Form S-4 or Form S-8 or their then equivalents relating to securities
            to be
            issued solely in connection with any acquisition of any entity or business
            or
            equity securities issuable in connection with stock option or other employee
            benefit plans) the Company shall promptly send to Grantee written notice
            of the
            Company’s intention to file a Registration Statement and of Grantee’s rights
            under this Section 13 and, if within twenty (20) days after receipt of
            such
            notice, Grantee shall so request in writing, the Company shall include
            in such
            Registration Statement all or any part of the Registrable Securities
            Grantee
            requests to be registered. No right to registration of Registrable Securities
            under this Section 13 shall be construed to limit any registration. If
            an
            offering in connection with which Grantee is entitled to registration
            under this
            Section 13 is an underwritten offering, then Grantee whose Registrable
            Securities are included in such Registration Statement shall, unless
            otherwise
            agreed by the Company, offer and sell such Registrable Securities in
            an
            underwritten offering using the same underwriter or underwriters and,
            subject to
            the provisions of this Agreement, on the same terms and conditions as
            other
            shares of Common Stock included in such underwritten offering.

          

          14. Miscellaneous.

          

          14.1 Benefits
            of this Agreement.
            Nothing
            in this Option shall be construed to give to any person or corporation
            other
            than the Company and the Grantee any legal or equitable right, remedy
            or claim
            under this Option, and this Option shall be for the sole and exclusive
            benefit
            of the Company and the Grantee.

           

          14.2 Rights
            Cumulative; Waivers.
            The
            rights of each of the parties under this Option are cumulative. The rights
            of
            each of the parties hereunder shall not be capable of being waived or
            varied
            other than by an express waiver or variation in writing. Any failure
            to exercise
            or any delay in exercising any of such rights shall not operate as a
            waiver or
            variation of that or any other such right. However, the Grantee may waive
            a
            default and its consequences. Any defective or partial exercise of any
            of such
            rights shall not preclude any other or further exercise of that or any
            other
            such right. No act or course of conduct or negotiation on the part of
            any party
            shall in any way preclude such party from exercising any such right or
            constitute a suspension or any variation of any such right.

          

          14.3 Benefit;
            Successors Bound.
            This
            Option and the terms, covenants, conditions, provisions, obligations,
            undertakings, rights, and benefits hereof, shall be binding upon, and
            shall
            inure to the benefit of, the parties hereto and their heirs, executors,
            administrators, representatives, successors, and permitted assigns.

           

          
            
              
              

            

            
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          14.4 Entire
            Agreement.
            This
            Option contains the entire agreement between the parties with respect
            to the
            subject matter hereof. There are no promises, agreements, conditions,
            undertakings, understandings, warranties, covenants or representations,
            oral or
            written, express or implied, between them with respect to this Option
            or the
            matters described in this Option, except as set forth in this Option.
            Any such
            negotiations, promises, or understandings shall not be used to interpret
            or
            constitute this Option.

          

          14.5 Assignment.
            This
            Option may be assigned, in whole or in part, by Assignment of Option
            completed,
            executed and delivered to the Company.

          

          14.6 Amendment.
            This
            Option may be amended only by an instrument in writing executed by the
            parties
            hereto.

          

          14.7 Severability.
            Each
            part of this Option is intended to be severable. In the event that any
            provision
            of this Option is found by any court or other authority of competent
            jurisdiction to be illegal or unenforceable, such provision shall be
            severed or
            modified to the extent necessary to render it enforceable and as so severed
            or
            modified, this Option shall continue in full force and effect.

          

          14.8 Notices.
            Notices
            required or permitted to be given hereunder shall be in writing and shall
            be
            deemed to be sufficiently given when personally delivered (by hand, by
            courier,
            by telephone line facsimile transmission, receipt confirmed, or other
            means) or
            sent by certified mail, return receipt requested, properly addressed
            and with
            proper postage pre-paid (i) if to the Company, at its executive office
            (ii) if
            to the Grantee, at the address set forth under its name in the subscription
            agreement for this Option, with a copy to its designated attorney and
            (iii) if
            to any other Grantee, at such address as such Grantee shall have provided
            in
            writing to the Company, or at such other address as each such party furnishes
            by
            notice given in accordance with this section, and shall be effective,
            when
            personally delivered, upon receipt and, when so sent by certified mail,
            four (4)
            business days after deposit with the United States Postal Service.

          

          14.9 Governing
            Law.
            This
            Agreement shall be governed by the interpreted in accordance with the
            laws of
            the State of Arizona without reference to its conflicts of laws rules
            or
            principles.

          

          14.10 Forum
            Selection and Consent to Jurisdiction. 
            Any
            litigation based thereon, or arising out of, under, or in connection
            with, this
            agreement or any course of conduct, course of dealing, statements (whether
            oral
            or written) or actions of the Company or Grantee shall be brought and
            maintained
            exclusively in the federal courts of the State of Arizona without reference
            to
            its conflicts of laws rules or principles. The Company hereby expressly
            and
            irrevocably submits to jurisdiction exclusively with the federal Courts
            of the
            State of Arizona for the purpose of any such litigation as set forth
            above and
            irrevocably agrees to be bound by any final judgment rendered thereby
            in
            connection with such litigation. The Company further irrevocably consents
            to the
            service of process by registered mail, postage prepaid, or by personal
            service
            within or without the State of Arizona. The Company hereby expressly
            and
            irrevocably waives, to the fullest extent permitted by law, any objection
            which
            it may have or hereafter may have to the laying of venue of any such
            litigation
            brought in any such court referred to above and any claim that any such
            litigation has been brought in any inconvenient forum. To the extent
            that the
            Company has or hereafter may acquire any immunity from jurisdiction of
            any court
            or from any legal process (whether through service or notice, attachment
            prior
            to judgment, attachment in aid of execution or otherwise) with respect
            to itself
            or its property. The Company hereby irrevocably waives such immunity
            in respect
            of its obligations under this agreement and the other loan
            documents.

          

          14.11 Waiver
            of Jury Trial. The
            Grantee and the Company hereby knowingly, voluntarily and intentionally
            waive
            any rights they may have to a trial by jury in respect of any litigation
            based
            hereon, or arising out of, under, or in connection with, this agreement,
            or any
            course of conduct, course of dealing, statements (whether oral or written)
            or
            actions of the Grantee or the Company. The Company acknowledges and agrees
            that
            it has received full and sufficient consideration for this provision
            and that
            this provision is a material inducement for the Grantee entering into
            this
            agreement.

          

          14.12 Consents.
            The
            person signing this Option on behalf of the Company hereby represents
            and
            Options that he has the necessary power, consent and authority to execute
            and
            deliver this Option on behalf of the Company.

          
            
              
              

            

            
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          14.13 Further
            Assurances.
            In
            addition to the instruments and documents to be made, executed and delivered
            pursuant to this Option, the parties hereto agree to make, execute and
            deliver
            or cause to be made, executed and delivered, to the requesting party
            such other
            instruments and to take such other actions as the requesting party may
            reasonably require to carry out the terms of this Option and the transactions
            contemplated hereby.

          

          14.14 14.14 Section
            Headings.
            The
            Section headings in this Option are for reference purposes only and shall
            not
            affect in any way the meaning or interpretation of this Option.

          

          14.15 Construction.
            Unless
            the context otherwise requires, when used herein, the singular shall
            be deemed
            to include the plural, the plural shall be deemed to include each of
            the
            singular, and pronouns of one or no gender shall be deemed to include
            the
            equivalent pronoun of the other or no gender.

          

          IN
            WITNESS WHEREOF, the parties have caused this Option to be duly executed,
            all as
            of the day and year first above written.

        

      

    

    

    
      	
               Tankless
                Systems Worldwide, Inc.

               

            	 	 	 Sundance
              Financial Corporation
	/s/ Thomas
              Kreitzer	 	 	/s/ Lawrence
              G. Ryckman
	
              
Thomas
              Kreitzer, Chief Executive Officer	 	 	
              
Lawrence
              G. Ryckman, President
	
            	 	 	 

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    

      AMENDMENT
        TO

      STOCK
        OPTION AGREEMENT

      

      

      THIS
        AGREEMENT (“Amendment”), is between Tankless Systems Worldwide, Inc., a Nevada
        corporation (the "Company"), and Sundance Financial Corporation, a Turks
        and
        Caicos Company (the "Grantee"). 

      

      WHEREAS,
        the Grantee and the Company are parties to that one certain Stock Option
        Agreement dated February 11, 2004 (the “Option Agreement”); and

      

      WHEREAS,
        by amendment even date herewith to the Consulting Agreement between the Company
        and Grantee, dated February 1, 2004, the parties have agreed to extend the
        period of time in which Grantee shall have the right to exercise its rights
        pursuant to the Option Agreement;

      

      NOW,
        THEREFORE, in consideration of the foregoing and the covenants contained
        herein,
        the parties hereto hereby agree as follows:

      

      1. Paragraphs
        1(a) and 1(b) of the Option Agreement shall be amended to provide that the
        Exercise Period and the Option Period, as those terms are defined respectively
        therein, shall be extended five additional years from the Grant Date, for
        a
        total of ten (10) years, each such period to end on February 11,
        2014.

      

      2. Except
        as
        expressly provided in this Amendment, the terms and conditions of the Option
        Agreement shall remain as originally agreed and in full force and effect.
        In the
        event of any conflict between the provisions of this Amendment and the Option
        Agreement, the terms and provisions of this Amendment shall
        prevail.

      

      EXECUTED
        effective the 6th
        day
        of
        September, 2005

       

      
        

        
          	
                   TANKLESS
                    SYSTEMS WORLDWIDE, INC.

                  a Nevada corporation

                   

                	 	 	
                   SUNDANCE
                    FINANCIAL CORPORATION

                   a Turks and Caicos corporation

                
	/s/ Thomas
                  Kreitzer	 	 	/s/ Lawrence
                  G. Ryckman
	
                  
Thomas
                  Kreitzer, Chief Executive Officer	 	 	
                  
Lawrence
                  G. Ryckman, Presidentskye & digital

    
      
        

      

      Exhibit 10.8
        Option Agreement between Skye and Digital Crossing, LLC

       

      STOCK
        OPTION AGREEMENT

      

      

      THIS
        STOCK OPTION AGREEMENT (this "Agreement"), dated as of February 11
        ,
        2004,
        (the "Grant Date"), is between Tankless Systems Worldwide, Inc., a Nevada
        corporation (the "Company"), and Digital Crossing, LLC (the "Grantee").

      

      
        	
                1.

              	
                Grant
                  of Option, Exercise Price and Term.
                  

              

      

      

      (a) The
        Company irrevocably grants to the Grantee and Grantee is entitled, subject
        to
        the terms and conditions set forth in this Stock Option Agreement (the "Option")
        to purchase Three Hundred Thousand (300,000) fully paid, duly authorized
        and
        nonassessable shares of common stock, $0.001 par value per share, of the
        Company
        (the "Option Shares") from the Company, at any time commencing from the date
        hereof and continuing for five (5) years from the date hereof, (the “Exercise
        Period”) at an exercise price of Fifty cents ($0.50 U.S.) per Share (the
“Exercise Price”), subject to adjustment pursuant to Section 8
        hereof

      

      (b) The
        term
        of this Option shall be a period of five (5) years from the Grant Date (the
        "Option Period"). During the Option Period, the Option shall be fully
        vested.

      

      (c) The
        Option shall be fully exercisable as of the Grant Date. 

      

      (d) The
        Company shall not be required to issue any fractional shares of Stock.

      

      2. Method
        of Exercise.
        Subject
        to the provisions of this Section, the Stock Options may be exercised, in
        whole
        or in part, at any time during the option term by giving written notice of
        exercise to the Company, in form satisfactory to the Company, specifying
        the
        number of shares of Stock subject to the Stock Option to be purchased and
        the
        aggregate Exercise Price for such shares, together with payment in full of
        such
        aggregate Exercise Price. The Exercise Price of any Stock Option shall be
        paid
        in full in cash (by cash, certified or bank check, wire transfer, or any
        combination thereof, or such other instrument as the Company may accept).
        The
        Option may not be exercised unless the Grantee (a) enters into any document
        (a
        "Private Issuance Document") the Company determines necessary to ensure that
        the
        Option Shares are issued pursuant to an available exemption from the
        registration requirements of the Securities Act of 1933, as amended (the
        "Securities Act"), and applicable state securities laws, and (b) there has
        been
        compliance with all the preceding provisions of this Section 2. For all purposes
        of this Stock Option Agreement, the date of the exercise of the Option shall
        be
        the date upon which there is compliance with all such requirements.

      

      3. Common
        Stock to be Issued. Subject
        to the terms of this Option Agreement, upon notice of exercise any portion
        of
        the Option and payment of such Exercise Price as aforesaid, the Company shall
        promptly issue and cause to be delivered to the Grantee or to such person
        or
        persons as the Grantee may designate in writing, a certificate or certificates
        (in such name or names as the Grantee may designate in writing) for the number
        of duly authorized, fully paid and non-assessable whole Shares to be purchased
        upon the exercise of this Option, and shall deliver to the Grantee Common
        Stock.
        This Option shall be exercisable, at the sole election of the Grantee, either
        in
        full or from time to time in part and, in the event that any certificate
        evidencing this Option (or any portion thereof) is exercised prior to the
        Termination Date with respect to less than all of the Shares specified therein
        at any time prior to the Termination Date, a new certificate of like tenor
        evidencing the remaining portion of this Option shall be issued by the Company,
        if so requested by the Grantee. 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      4. Transfer
        Agent. Upon
        the
        Company’s receipt of a facsimile or original of Grantee’s signed Election to
        Exercise Option, the Company shall instruct its transfer agent to issue one
        or
        more stock Certificates representing that number of shares of Common Stock
        which
        the Grantee is entitled to purchase in accordance with the terms and conditions
        of this Option and the Election to Exercise Option. 

      

      5. Shareholder
        of Record. Each
        person in whose name any certificate for shares of Common Stock shall be
        issued
        shall for all purposes be deemed to have become the holder of record of the
        Common Stock represented thereby on the date on which the Option was exercised
        and payment of the purchase price and any applicable taxes was made,
        irrespective of date of issue or delivery of such certificate, except that
        if
        the date of such exercise and payment is a date when the Shares transfer
        books
        of the Company are closed, such person shall be deemed to have become the
        holder
        of such Shares on the next succeeding date on which such Share transfer books
        are open. The Company shall not close such Share transfer books at any one
        time
        for a period longer than seven (7) days. 

      

      6. Actions;
        Costs.
        It
        shall be the Company’s responsibility to take all necessary actions and to bear
        all such costs to issue the certificate of Common Stock as provided herein,
        including the responsibility and cost for delivery of an opinion letter to
        the
        transfer agent, if so required, and any documentary stamp taxes if any,
        attributable to the initial issuance of the Shares. The person in whose name
        the
        certificate of Common Stock is to be registered shall be treated as a
        shareholder of record on and after the exercise date. Upon exercise of any
        portion of the Option that is to be exercised in part, the Company shall
        issue
        to the Grantee a written acknowledgment of the number of Shares that remain
        available under the Option, if so requested by Grantee. 

      

      7. Payment
        of Withholding Taxes.
        If the
        Company is obligated to withhold an amount on account of any tax imposed
        as a
        result of the exercise of the Option, the Grantee shall be required to pay
        such
        amount to the Company, as provided in the Plan. The Grantee acknowledges
        and
        agrees that the Grantee is responsible for the tax consequences associated
        with
        the grant of the Option and its exercise. 

      

      8. Adjustment
        of Common Stock Price, Exercise Price and the Number of Shares.
The
        number and kind of securities purchasable upon the exercise of this Option
        and
        the Exercise Price shall be subject to adjustment from time to time after
        the
        date hereof upon the happening of certain events, as follows:

      

      8.1 Adjustments.
        The
        number of Shares purchasable upon the exercise of this Option shall be subject
        to adjustments as follows:

      

      (a) In
        case
        the Company shall (i) pay a dividend on Common Stock in Common Stock or
        securities convertible into, exchangeable for or otherwise entitling a holder
        thereof to receive Common Stock, (ii) declare a dividend payable in cash
        on its
        Common Stock and at substantially the same time offer its shareholders a
        right
        to purchase new Common Stock (or securities convertible into, exchangeable
        for
        or other entitling a holder thereof to receive Common Stock) from the proceeds
        of such dividend (all Common Stock so issued shall be deemed to have been
        issued
        as a stock dividend), (iii) subdivide its outstanding shares of Common Stock
        into a greater number of shares of Common Stock, or (iv) issue by
        reclassification of its Common Stock any shares of Common Stock of the Company,
        the number of shares of Common Stock issuable upon exercise of the Options
        immediately prior thereto shall be adjusted so that the holders of the Options
        shall be entitled to receive after the happening of any of the events described
        above that number and kind of shares as the holders would have received had
        such
        Options been converted immediately prior to the happening of such event or
        any
        record date with respect thereto. 

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      (b) In
        case
        the Company shall distribute, without receiving consideration therefor, to
        all
        holders of its Common Stock evidences of its indebtedness or assets (excluding
        cash dividends other than as described in Section (8)(a)(ii)), then in such
        case, the number of shares of Common Stock thereafter issuable upon exercise
        of
        the Options shall be determined by multiplying the number of shares of Common
        Stock theretofore issuable upon exercise of the Options, by a fraction, of
        which
        the numerator shall be the closing bid price per share of Common Stock on
        the
        record date for such distribution, and of which the denominator shall be
        the
        closing bid price of the Common Stock less the then fair value (as determined
        by
        the Board of Directors of the Company, whose determination shall be conclusive)
        of the portion of the assets or evidences of indebtedness so distributed
        per
        share of Common Stock. Such adjustment shall be made whenever any such
        distribution is made and shall become effective immediately after the record
        date for the determination of stockholders entitled to receive such
        distribution.

      

      (c) Any
        adjustment in the number of shares of Common Stock issuable hereunder otherwise
        required to be made by this Section 8 will not have to be adjusted if such
        adjustment would not require an increase or decrease in one percent (1%)
        or more
        in the number of shares of Common Stock issuable upon exercise of the Option.
        No
        adjustment in the number of Shares purchasable upon exercise of this Option
        will
        be made for the issuance of shares of capital stock to directors, employees
        or
        independent Optionors pursuant to the Company’s or any of its subsidiaries’
stock option, stock ownership or other benefit plans or arrangements or trusts
        related thereto or for issuance of any shares of Common Stock pursuant to
        any
        plan providing for the reinvestment of dividends or interest payable on
        securities of the Company and the investment of additional optional amounts
        in
        shares of Common Stock under such plan.

      

      (d) Whenever
        the number of shares of Common Stock issuable upon the exercise of the Options
        is adjusted, as herein provided, the Exercise Price shall be adjusted (to
        the
        nearest cent) by multiplying such Exercise Price immediately prior to such
        adjustment by a fraction, of which the numerator shall be the number of shares
        of Common Stock issuable upon the exercise of each share of the Options
        immediately prior to such adjustment, and of which the denominator shall
        be the
        number of shares of Common Stock issuable immediately thereafter.

      

      (e) The
        Company from time to time by action of its Board of Directors may decrease
        the
        Exercise Price by any amount for any period of time if the period is at least
        twenty (20) days, the decrease is irrevocable during the period and the Board
        of
        Directors of the Company in its sole discretion shall have made a determination
        that such decrease would be in the best interest of the Company, which
        determination shall be conclusive. Whenever the Exercise Price is decreased
        pursuant to the preceding sentence, the Company shall mail to holders of
        record
        of the Options a notice of the decrease at least fifteen (15) days prior
        to the
        date the decreased Exercise Price takes effect, and such notice shall state
        the
        decreased Exercise Price and the period it will be in effect.

      

      (f) Price/Share
        Adjustment. Except as provided in the last sentence of this Paragraph 8.1(f),
        if
        at any time during the first two (2) years of the term of this Option Agreement,
        the Company enters into any NEW Stock, Option or Option Agreement(s), for
        a
        price that is LOWER
        than the
        Exercise Price of this Option, which is Fifty cents ($0.50 U.S.) per Share,
        then
        all Options represented by this Agreement shall be lowered by the Company
        to
        reflect the NEW lower Common Stock and Exercise Price, to be equal to the
        lower
        NEW Stock, Option or Exercise Price of such Agreement. Notwithstanding any
        other
        provision of this Paragraph 8.1(f) to the contrary, no
        adjustment to either price or number of shares shall be made or required
        by
        occasion of (i) the grant or issuance of any stock, stock option, stock Option,
        stock appreciation right or other similar benefit relating to securities
        to any
        existing officer, director or employee or to any other person as an inducement
        to become an officer, director or employee, or to any person rendering services
        to the Company in connection with a consulting agreement, whether such grant
        or
        issuance is in respect of stock restricted under Section 144 or otherwise
        the
        subject of a Registration Statement filed with the SEC under Form S-8 or
        its
        equivalent, or (ii) any adjustment required pursuant to the other provisions
        of
        this Section 8.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      8.2 Mergers,
        Etc. 
        In the
        case of any (i) consolidation or merger of the Company into any entity (other
        than a consolidation or merger that does not result in any reclassification,
        exercise, exchange or cancellation of outstanding shares of Common Stock
        of the
        Company), (ii) sale, transfer, lease or conveyance of all or substantially
        all
        of the assets of the Company as an entirety or substantially as an entirety,
        or
        (iii) reclassification, capital reorganization or change of the Common Stock
        (other than solely a change in par value, or from par value to no par value),
        in
        each case as a result of which shares of Common Stock shall be converted
        into
        the right to receive stock, securities or other property (including cash
        or any
        combination thereof), each holder of Options then outstanding shall have
        the
        right thereafter to exercise such Option only into the kind and amount of
        securities, cash and other property receivable upon such consolidation, merger,
        sale, transfer, capital reorganization or reclassification by a holder of
        the
        number of shares of Common Stock of the Company into which such Options would
        have been converted immediately prior to such consolidation, merger, sale,
        transfer, capital reorganization or reclassification, assuming such holder
        of
        Common Stock of the Company (A) is not an entity with which the Company
        consolidated or into which the Company merged or which merged into the Company
        or to which such sale or transfer was made, as the case may be (“constituent
        entity”), or an affiliate of a constituent entity, and (B) failed to exercise
        his or her rights of election, if any, as to the kind or amount of securities,
        cash and other property receivable upon such consolidation, merger, sale
        or
        transfer (provided that if the kind or amount of securities, cash and other
        property receivable upon such consolidation, merger, sale or transfer is
        not the
        same for each share of Common Stock of the Company held immediately prior
        to
        such consolidation, merger, sale or transfer by other than a constituent
        entity
        or an affiliate thereof and in respect of which such rights or election shall
        not have been exercised (“non-electing share”), then for the purpose of this
        Section 8.2 the kind and amount of securities, cash and other property
        receivable upon such consolidation, merger, sale or transfer by each
        non-electing share shall be deemed to be the kind and amount so receivable
        per
        share by a plurality of the non-electing shares). If necessary, appropriate
        adjustment shall be made in the application of the provision set forth herein
        with respect to the rights and interests thereafter of the holder of Options,
        to
        the end that the provisions set forth herein shall thereafter correspondingly
        be
        made applicable, as nearly as may reasonably be, in relation to any shares
        of
        stock or other securities or property thereafter deliverable on the exercise
        of
        the Options. The above provisions shall similarly apply to successive
        consolidations, mergers, sales, transfers, capital reorganizations and
        reclassifications. The Company shall not effect any such consolidation, merger,
        sale or transfer unless prior to or simultaneously with the consummation
        thereof
        the successor company or entity (if other than the Company) resulting from
        such
        consolidation, merger, sale or transfer assumes, by written instrument, the
        obligation to deliver to the holder of Options such shares of stock, securities
        or assets as, in accordance with the foregoing provision, such holder may
        be
        entitled to receive under this Section 8.2.

      

      9. Changes
        in Company's Capital Structure.
        The
        existence of the Option will not affect in any way the right or authority
        of the
        Company or its stockholders to make or authorize 

      

      (a) any
        adjustment, recapitalization, reorganization or other changes in the Company's
        capital structure or its business; 

      

      (b) any
        acquisition, merger or consolidation of the Company; 

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      (c) any
        issuance of bonds, debentures, preferred or prior preference stock ahead
        of or
        affecting the Stock or the rights thereof; 

      

      (d) the
        dissolution or liquidation of the Company; 

      

      (e) any
        sale
        or transfer of all or any part of the Company's assets or business; or

      

      (f) any
        other
        corporate act or proceeding, whether of a similar character or otherwise.
        

      

      10. Employment
        Rights.
        No
        provision of this Agreement or of the Option granted hereunder shall give
        the
        Grantee any right to continue in the employ of the Company or any Affiliate
        of
        the Company, create any inference as to the length of employment of the Grantee,
        affect the right of the Company or any Affiliate of the Company to terminate
        the
        employment of the Grantee, with or without Cause, or give the Grantee any
        right
        to participate in any employee welfare or benefit plan or other program of
        the
        Company or any Affiliate of the Company. 

      

      11. No
        Rights as Stockholders: Notices to Grantees. Nothing
        contained in this Option shall be construed as conferring upon the Grantee
        or
        its transferees any rights as a stockholder of the Company, including the
        right
        to vote, receive dividends, consent or receive notices as a stockholder with
        respect to any meeting of stockholders for the election of directors of the
        Company or any other matter. If, however, at any time prior to the expiration
        of
        the Option Period and prior to the exercise of this Option, any of the following
        events shall occur:

      

      (a) any
        action which would require an adjustment pursuant to Section 8.1;
        or

       

      (b) a
        dissolution, liquidation or winding up of the Company or any consolidation,
        merger or sale of its property, assets and business as an entirety; then
        in any
        one or more of said events, the Company shall give notice in writing of such
        event to the Grantee at least ten (10) days prior to the date fixed as a
        record
        date or the date of closing the transfer books for the determination of the
        shareholders entitled to any relevant dividend, distribution, subscription
        rights, or other rights or for the effective date of any dissolution,
        liquidation of winding up or any merger, consolidation, or sale of substantially
        all assets, but failure to mail or receive such notice or any defect therein
        or
        in the mailing thereof shall not affect the validity of any such action taken.
        Such notice shall specify such record date or the effective date, as the
        case
        may be.

      

      12. Obligation
        to Register.
        Grantee
        acknowledges and agrees that the Company does not have any present intention
        and
        is under no obligation to register the Option Shares under the Securities
        and
        Exchange Act of 1933 or applicable state securities laws.

      

      13. Piggy-Back
        Registration Rights. The
        Company hereby gives the Undersigned unlimited Piggy-Back Registration Rights
        under this Option Agreement. If at any time the Company proposes to file
        with
        the SEC a Registration Statement relating to an offering for its own account
        or
        the account of others under the 1933 Act of any of its securities (other
        than on
        Form S-4 or Form S-8 or their then equivalents relating to securities to
        be
        issued solely in connection with any acquisition of any entity or business
        or
        equity securities issuable in connection with stock option or other employee
        benefit plans) the Company shall promptly send to Grantee written notice
        of the
        Company’s intention to file a Registration Statement and of Grantee’s rights
        under this Section 13 and, if within twenty (20) days after receipt of such
        notice, Grantee shall so request in writing, the Company shall include in
        such
        Registration Statement all or any part of the Registrable Securities Grantee
        requests to be registered. No right to registration of Registrable Securities
        under this Section 13 shall be construed to limit any registration. If an
        offering in connection with
        which Grantee is entitled to registration under this Section 13 is an
        underwritten offering, then Grantee whose Registrable Securities are included
        in
        such Registration Statement shall, unless otherwise agreed by the Company,
        offer
        and sell such Registrable Securities in an underwritten offering using the
        same
        underwriter or underwriters and, subject to the provisions of this Agreement,
        on
        the same terms and conditions as other shares of Common Stock included in
        such
        underwritten offering.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      14. Miscellaneous.

      

      14.1 Benefits
        of this Agreement.
        Nothing
        in this Option shall be construed to give to any person or corporation other
        than the Company and the Grantee any legal or equitable right, remedy or
        claim
        under this Option, and this Option shall be for the sole and exclusive benefit
        of the Company and the Grantee.

       

      14.2 Rights
        Cumulative; Waivers.
        The
        rights of each of the parties under this Option are cumulative. The rights
        of
        each of the parties hereunder shall not be capable of being waived or varied
        other than by an express waiver or variation in writing. Any failure to exercise
        or any delay in exercising any of such rights shall not operate as a waiver
        or
        variation of that or any other such right. However, the Grantee may waive
        a
        default and its consequences. Any defective or partial exercise of any of
        such
        rights shall not preclude any other or further exercise of that or any other
        such right. No act or course of conduct or negotiation on the part of any
        party
        shall in any way preclude such party from exercising any such right or
        constitute a suspension or any variation of any such right.

      

      14.3 Benefit;
        Successors Bound.
        This
        Option and the terms, covenants, conditions, provisions, obligations,
        undertakings, rights, and benefits hereof, shall be binding upon, and shall
        inure to the benefit of, the parties hereto and their heirs, executors,
        administrators, representatives, successors, and permitted assigns.

       

      14.4 Entire
        Agreement.
        This
        Option contains the entire agreement between the parties with respect to
        the
        subject matter hereof. There are no promises, agreements, conditions,
        undertakings, understandings, warranties, covenants or representations, oral
        or
        written, express or implied, between them with respect to this Option or
        the
        matters described in this Option, except as set forth in this Option. Any
        such
        negotiations, promises, or understandings shall not be used to interpret
        or
        constitute this Option.

      

      14.5 Assignment.
        This
        Option may be assigned, in whole or in part, by Assignment of Option completed,
        executed and delivered to the Company.

      

      14.6 Amendment.
        This
        Option may be amended only by an instrument in writing executed by the parties
        hereto.

      

      14.7 Severability.
        Each
        part of this Option is intended to be severable. In the event that any provision
        of this Option is found by any court or other authority of competent
        jurisdiction to be illegal or unenforceable, such provision shall be severed
        or
        modified to the extent necessary to render it enforceable and as so severed
        or
        modified, this Option shall continue in full force and effect.

      

      14.8 Notices.
        Notices
        required or permitted to be given hereunder shall be in writing and shall
        be
        deemed to be sufficiently given when personally delivered (by hand, by courier,
        by telephone line facsimile transmission, receipt confirmed, or other means)
        or
        sent by certified mail, return receipt requested, properly addressed and
        with
        proper postage pre-paid (i) if to the Company, at its executive office (ii)
        if
        to the Grantee, at the address set forth under its name in the subscription
        agreement for this Option, with a copy to its designated attorney and (iii)
        if
        to any other Grantee, at such address as such Grantee shall have provided
        in
        writing to the Company, or at such other address as each such party furnishes
        by notice given in accordance with this section, and shall be effective,
        when
        personally delivered, upon receipt and, when so sent by certified mail, four
        (4)
        business days after deposit with the United States Postal Service.
        

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      14.9 Governing
        Law.
        This
        Agreement shall be governed by the interpreted in accordance with the laws
        of
        the State of Arizona without reference to its conflicts of laws rules or
        principles.

      

      14.10 Forum
        Selection and Consent to Jurisdiction. 
        Any
        litigation based thereon, or arising out of, under, or in connection with,
        this
        agreement or any course of conduct, course of dealing, statements (whether
        oral
        or written) or actions of the Company or Grantee shall be brought and maintained
        exclusively in the federal courts of the State of Arizona without reference
        to
        its conflicts of laws rules or principles. The Company hereby expressly and
        irrevocably submits to jurisdiction exclusively with the federal Courts of
        the
        State of Arizona for the purpose of any such litigation as set forth above
        and
        irrevocably agrees to be bound by any final judgment rendered thereby in
        connection with such litigation. The Company further irrevocably consents
        to the
        service of process by registered mail, postage prepaid, or by personal service
        within or without the State of Arizona. The Company hereby expressly and
        irrevocably waives, to the fullest extent permitted by law, any objection
        which
        it may have or hereafter may have to the laying of venue of any such litigation
        brought in any such court referred to above and any claim that any such
        litigation has been brought in any inconvenient forum. To the extent that
        the
        Company has or hereafter may acquire any immunity from jurisdiction of any
        court
        or from any legal process (whether through service or notice, attachment
        prior
        to judgment, attachment in aid of execution or otherwise) with respect to
        itself
        or its property. The Company hereby irrevocably waives such immunity in respect
        of its obligations under this agreement and the other loan
        documents.

      

      14.11 Waiver
        of Jury Trial. The
        Grantee and the Company hereby knowingly, voluntarily and intentionally waive
        any rights they may have to a trial by jury in respect of any litigation
        based
        hereon, or arising out of, under, or in connection with, this agreement,
        or any
        course of conduct, course of dealing, statements (whether oral or written)
        or
        actions of the Grantee or the Company. The Company acknowledges and agrees
        that
        it has received full and sufficient consideration for this provision and
        that
        this provision is a material inducement for the Grantee entering into this
        agreement.

      

      14.12 Consents.
        The
        person signing this Option on behalf of the Company hereby represents and
        Options that he has the necessary power, consent and authority to execute
        and
        deliver this Option on behalf of the Company.

      

      14.13 Further
        Assurances.
        In
        addition to the instruments and documents to be made, executed and delivered
        pursuant to this Option, the parties hereto agree to make, execute and deliver
        or cause to be made, executed and delivered, to the requesting party such
        other
        instruments and to take such other actions as the requesting party may
        reasonably require to carry out the terms of this Option and the transactions
        contemplated hereby.

      

      14.14 14.14 Section
        Headings.
        The
        Section headings in this Option are for reference purposes only and shall
        not
        affect in any way the meaning or interpretation of this Option.

      

      14.15 Construction.
        Unless
        the context otherwise requires, when used herein, the singular shall be deemed
        to include the plural, the plural shall be deemed to include each of the
        singular, and pronouns of one or no gender shall be deemed to include the
        equivalent pronoun of the other or no gender.

      

      IN
        WITNESS WHEREOF, the parties have caused this Option to be duly executed,
        all as
        of the day and year first above written.

       

      
        	
                 Tankless
                  Systems Worldwide, Inc.: 

                 

              	 	 	 Digital
                Crossing, LLC
	/s/ Thomas
                Kreitzer	 	 	/s/ Preston
                J. Shea 
	
                
Thomas
                Kreitzer, Chief Executive Officer	 	 	
                
Preston
                J. Shea, Manager
	
              	 	 	 

      

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
       

      

        AMENDMENT
          TO

        STOCK
          OPTION AGREEMENT

        

        

        THIS
          AGREEMENT (“Amendment”), is between Tankless Systems Worldwide, Inc., a Nevada
          corporation (the "Company"), and Digital Crossing, LLC, a Delaware limited
          liability company (the "Grantee"). 

        

        WHEREAS,
          the Grantee and the Company are parties to that one certain Stock Option
          Agreement dated February 11, 2004 (the “Option Agreement”); and

        

        WHEREAS,
          by amendment even date herewith to the Consulting Agreement between the
          Company
          and Grantee, dated February 1, 2004, the parties have agreed to extend
          the
          period of time in which Grantee shall have the right to exercise its rights
          pursuant to the Option Agreement;

        

        NOW,
          THEREFORE, in consideration of the foregoing and the covenants contained
          herein,
          the parties hereto hereby agree as follows:

        

        1. Paragraphs
          1(a) and 1(b) of the Option Agreement shall be amended to provide that
          the
          Exercise Period and the Option Period, as those terms are defined respectively
          therein, shall be extended five additional years from the Grant Date, for
          a
          total of ten (10) years, each such period to end on February 11,
          2014.

        

        2. Except
          as
          expressly provided in this Amendment, the terms and conditions of the Option
          Agreement shall remain as originally agreed and in full force and effect.
          In the
          event of any conflict between the provisions of this Amendment and the
          Option
          Agreement, the terms and provisions of this Amendment shall
          prevail.

        

        EXECUTED
          effective the 6th
          day
          of
          September, 2005

      

       

      
        	
                 TANKLESS
                  SYSTEMS WORLDWIDE, INC.

                a Nevada corporation

                 

              	 	 	
                 DIGITAL
                  CROSSING, LLC

                 a Delaware limited liability
                  company

              
	/s/ Thomas
                Kreitzer 	 	 	/s/ Andrea
                Dworshak 
	
                
Thomas
                Kreitzer, Chief Executive Officer	 	 	
                
Andrea
                Dworshak, Manager

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