Document:

EXHIBIT
      10.4

     

    Western
      Business Park

    Office/Warehouse
      Lease Agreement

    

    THIS
      LEASE AGREEMENT is made and entered into this the
      22 nd 
      day
      of
      December,
      2006 ,
      between
WILD
      PONY HOLDINGS, L.P.
      ("Landlord") and
      Amarillo Biosciences, Inc. ("Tenant")
      (Tax I.D. No. or Social Security No. 75-1974352).

    

    DEFINITIONS
      AND BASIC PROVISIONS

    

    
      	
              1.

            	
              "Leased
                Floor Space" or "Premises": Approximately 3,675
                rentable square feet of floor space located at  
                4134-4136 Business Park Drive in
                Amarillo, Randall County, Texas, 79110, in the Western Business Park
                (the
                "Business Park"), such Business Park being on the real property described
                in Exhibit
                "A"
                attached hereto and made a part hereof for all purposes. The Premises
                are
                outlined in red on Exhibit
                "B"
                attached hereto and made a part hereof for all
                purposes.

            

    

    

    
      	
              2.

            	
              "Lease
                Term": A period of
                Two  (
                2 )
                years, anticipated to commence on 
                January 1,
                2007 (the
                "Commencement Date"), and to expire on
                December 31, 2008  (the
                "Expiration Date"). 

            

    

    

    
      	3.	
              "Basic
                Rent": $ 1,850.00
                per
                month for the initial Lease Term, payable monthly in advance, due
                to be
                actually received at the place for payment on the first (1ST)
                day of each calendar month during the Term. The total Basic Rent
                due under
                the Lease shall be
                Forty-four thousand four hundred dollars and 00/100 ($ 44,400.00
                ). 

            

    

    

    
      	 	 	 	 	
              INI         

            	 	
                       

            	 
	
              Initial
                monthly payment for taxes: 

            	 	
              $

            	
                  N/A.

            	 	 	
              
              

            	 	 	
               

            	 
	
              Initial
                monthly payment for insurance:

            	 	
              $

            	
                  N/A.

            	 	 	
              
              

            	 	 	
               

            	 

    

    

    All
      monthly charges for taxes and insurance are subject to annual adjustment as
      provided for in this Lease, and are subject to being reset annually as provided
      in the Lease.

    

    
      	
              4.

            	
              "Security
                Deposit": $
                1,850.00  of
                which $1,000.00
                is
                transferred from a previous lease dated October 27, 2005. The Security
                Deposit and first month’s rent are due on execution
                hereof.

            

    

    

    
      	
              5.

            	
              Tenant's
                Use: Tenant will use the Premises for  
                Office and Warehouse Space and
                for no other purpose without Landlord's prior written
                consent.

            

    

    

    
      	
              6.

            	
              All
                Rent due under this Lease shall be payable at Landlord’s address for these
                purposes as follows: Wild Pony Holdings, L.P., 82 Armstrong Drive,
                Mustang, Oklahoma 73064. MAKE
                CHECKS PAYABLE TO: WILD PONY HOLDINGS, L.P.
                Tenant’s address for purposes of this Lease
                is:

            

    

    4134
      Business Park Drive  806-376-1741

    Amarillo,
      Texas 79110

    

    
      	
              8 

            	
              The
                attached pages constitute a part of this Lease. ADDITIONALLY, THIS
                LEASE
                EXPRESSLY INCORPORATES THE FOLLOWING EXHIBITS WHICH ARE ATTACHED
                HERETO:
                (check those applicable)

            

    

    

       X        Exhibit
      “A”  Legal
      Description of Business Park

       X        Exhibit
      “B”  Site
      Plan
      showing Premises

       X        Exhibit
      “C”  Rules
      and
      Regulations

           
      Exhibit “D”@  Supplemental
      Agreement No.1

           
      Exhibit “E”  Supplemental
      Agreement No. 2

           
      Exhibit “F”  Work
      Letter Agreement

          
      X            Exhibit
      “G”  Guaranty

       X   Exhibit
      “H”  Signage

    

    LANDLORD:       TENANT:

    

    WILD
      PONY HOLDINGS, L. P.    AMARILLO
      BIOSCIENCES, INC.

     

    
      	
              By:

            	
                 
                

            	 	
              By:

            	
              /s/
                Joseph M. Cummins

            
	 	
              Richard
                P. Shepheard, V.P.

            	 	 	
              Joseph
                M. Cummins, DVM, PhD

            
	 	
              Metropolitan
                Management Co., Inc.

            	 	 	
              President
                & CEO

            
	 	
              General
                Partner

            	 	 	 

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    ARTICLE
      I  PROPORTIONATE
      SHARE

    

    
      	
              1.1

            	
               

            

    

    

    ARTICLE
      II  TERMS

    

    
      	
              2.1

            	
               

            

    

    

    
      	
              2.2

            	
              Acceptance
                of Premises.
                By
                occupying the Premises, Tenant shall be deemed to have accepted the
                same
                and to have acknowledged that the same comply fully with Landlord’s
                covenants and obligations hereunder. Unless one or more exhibits
                are
                attached delineating work to be performed by Landlord prior to the
                Commencement Date, Tenant hereby accepts the Premises “AS IS” as now being
                suitable for Tenant’s purposes. If one or more exhibits are attached
                delineating work to be performed by Landlord prior to the Commencement
                Date, Tenant hereby accepts the Premises as to be so constructed
                or
                modified as suitable for Tenant’s purposes. Landlord shall have no duty
                whatsoever to perform any work on or about the Premises except as
                expressly set out in this Lease or in the exhibits attached hereto
                either
                prior to the Commencement Date or during the term of the Lease, and
                Tenant
                shall be obligated to perform all other needed work prior to or during
                the
                term of the Lease on or about the Premises, latent or otherwise,
                except as
                otherwise expressly set out herein.

            

    

    

    
      	
              2.3

            	
              Holdover.
                If
                Tenant holds over and continues in possession of the Premises after
                Expiration Date of this Lease or any extension of that term agreed
                to in
                writing by Landlord, Tenant will be deemed to be occupying the Premises
                on
                the basis of a month-to-month tenancy, subject to all of the terms
                and
                conditions of this Lease, except that the Basic Rent and Additional
                Rent
                (as defined below) shall be equal to double the amount of the last
                Basic
                Rent and Additional Rent due under this
                Lease.

            

    

    

    ARTICLE
      III  RENT

    

    
      	
              3.1

            	
              “Basic
                Rent.”
                Tenant agrees to pay to Landlord Basic Rent in equal monthly payments
                in
                advance actually received by the Landlord on or before the first
                (1st)
                day of each calendar month during the Term. All amounts payable by
                Tenant
                under this Lease shall constitute Basic Rent or Additional Rent (together,
                the “Rent”). Rent for any period less than one (1) month shall be
                apportioned based on the number of days in that month. In the event
                Tenant
                does not pay all Rent due herein by the fifth
                (5th) day of each month (grace
                period),
                Landlord shall charge Tenant a late charge equal to ten percent (10%)
                of
                the Rent otherwise due to cover Landlord’s additional costs for handling
                delinquent payments.

            

    

    

    
      	
              3.2

            	
              “Additional
                Rent”
                is
                defined as all sums of money, other than Basic Rent, which become
                due
                under this Lease.

            

    

    

    
      	
              3.3

            	
               

            

    

    

    
      	
              3.4

            	
               

            

    

    

    
      	
              3.5

            	
               

            

    

    
      
         

      

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
              3.6

            	
               

            

    

    

    
      	
              3.7

            	
              Proration
                on Termination.
                If, for any reason other than the default of Tenant, this Lease shall
                terminate on a day other than the last day of the Lease year, the
                amount
                of increase (if any) in Rent payable by Tenant applicable to the
                Lease
                year in which such termination shall occur, shall be prorated in
                the ratio
                that the number of days from the commencement of such Lease year
                to and
                including such termination date bears to
                365.

            

    

    

    ARTICLE
      IV  USE
      OF PREMISES

    

    
      	
              4.1

            	
              Tenant
                will use the Premises for the permitted use set forth on Page 1 of
                this Lease and no other purposes, unless Landlord shall give Tenant
                prior
                written consent for a different use. Tenant acknowledges that such
                restriction on Tenant’s use is a material inducement to Landlord in
                entering into this Lease.

            

    

    

    
      	
              4.2

            	
              Permits,
                Licenses.
                Tenant shall, at Tenant’s own expense, procure each and every permit,
                license, certificate or other authorization and any renewals, extensions,
                or continuances of the same required in connection with the Building
                or
                improvements or Premises or required in connection with Tenant’s lawful
                and proper use, occupancy of, and operation in the
                Premises.

            

    

    

    
      	
              4.3

            	
              Insurance
                Hazards.
                Tenant shall not use, or permit the use of, the Premises in any manner
                that will cause a cancellation of, or an increase in, the existing
                rates
                for liability, or other insurance policies insuring the Premises
                or any
                improvements on the Premises, or insuring Landlord for any liability
                in
                connection with ownership of the Premises. Tenant shall pay all increased
                insurance premiums attributable to a vacant building if Tenant vacates
                the
                Premises.

            

    

    

    
      	
              4.4

            	
              Waste,
                Nuisance, or Illegal Uses.
                Tenant shall not use, or permit the use of, the Premises in any manner
                that would (i) impair its value, (ii) result in injury to or waste
                of the
                Premises, Building, or Business Park, or (iii) constitute a nuisance;
                nor
                shall Tenant use, or permit the use of, the Premises for any illegal
                or
                immoral purpose which could cause a
                forfeiture.

            

    

    

    
      	
              4.5

            	
              Hazardous
                Materials.
                Tenant covenants that it has not, and agrees that Tenant shall not,
                receive, store, dispose or release any Hazardous Materials (as defined
                below in Paragraph 7.3) on or in the Premises or Business Park, transport
                any Hazardous Materials to or from the Premises or Business Park
                or permit
                the existence of any Hazardous Materials Contamination (as defined
                below
                in Paragraph 7.3) in or on the Premises or Business Park. If Tenant
                acquires knowledge of the presence of any Hazardous Materials or
                Hazardous
                Materials Contamination on, under or in the Premises or Business
                Park or
                of the transportation of any Hazardous Materials to or from the Premises
                or Business Park, Tenant shall give written notice to the Landlord
                immediately with a full description thereof. Tenant agrees to comply
                with
                any and all Governmental Requirements (as defined below in Paragraph
                7.3)
                requiring the removal, treatment or disposal of Hazardous Materials
                or
                Hazardous Materials Contamination caused or aggravated directly or
                indirectly by the
                Tenant, its owners, directors, officers, licensees, invitees and
                assignees, all at Tenant’s sole cost and expense, and provide Landlord
                with satisfactory evidence of such compliance. If the Tenant causes
                or
                aggravates (directly or indirectly) or knowingly or negligently permits
                the receipt, storage, disposal or release of any Hazardous Materials
                or
                Hazardous Materials Contamination on, under, over or in the Premises
                or
                Business Park (except where directly and solely
                caused by Landlord), Tenant shall promptly remove, treat and dispose
                of
                such Hazardous Materials or Hazardous Materials Contamination and
                clean up
                the affected property and provide the Landlord with evidence satisfactory
                to Landlord or such removal, treatment, disposal and/or clean up.
                On
                termination or expiration of the Lease, Tenant will remove, in compliance
                with laws, all Hazardous
                Materials.

            

    

     

    
      	
              4.6

            	
              Use
                of Common Area.
                Certain driveways, parking lots, courtyards, walkways, and other
                common
                areas of the Building or Business Park (if any) are for the joint
                use of
                Tenant, Landlord, and the other tenants of the Building and/or Business
                Park. Tenant and Tenant’s officers, employees, agents, and invitees will
                use such common areas in a reasonable, orderly, and sanitary manner
                in
                cooperation with all other tenants and their officers, employees,
                agents,
                and invitees.

            

    

    

    
      	
              4.7

            	
              Consideration
                for Others.
                Tenant will conduct itself, and will cause Tenant’s officers, contractors,
                employees, agents, and invitees to conduct themselves, with full
                regard
                for the rights, convenience, and welfare of all other tenants in
                the
                Business Park and Landlord.

            

    

    

    
      	
              4.8

            	
              Rules
                and Regulations.
                Tenant and Tenant’s officers, contractors, employees, agents, and invitees
                will comply fully with
                all of the rules and regulations of the Business Park. These rules
                and
                regulations are attached to this Lease as Exhibit “C”,
                and are made a part of this Lease as though fully set out in this
                Lease.
                Landlord shall at all times have the right to make reasonable changes,
                additions, or deletions to these rules and regulations for the purpose
                of
                ensuring or enhancing the safety, care, cleanliness, maintenance,
                or
                preservation of the Building and/or Business Park, its related facilities,
                and the Premises, as well as for the purpose of preserving good order
                in
                and on the Building and/or Business Park, its related facilities,
                and the
                Premises. Tenant and Tenant’s officers, employees, agents, and invitees
                will be bound by any such changes, additions, or deletions to the
                rules
                and regulations upon receipt by Tenant of written notice from Landlord
                setting forth the change, addition, or deletion. Tenant shall be
                responsible for the compliance of Tenant’s officers, employees, agents,
                and invitees with all such rules and
                regulations.

            

    

    
      
         

      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
              4.9

            	
              Compliance
                with Applicable Laws.
                Tenant shall comply with and observe all statutes, ordinances,
                regulations, orders and/or decrees of the federal, state and city
                governments, or any departments, bureaus or agencies thereof (the
                “Applicable Laws”) or of any Insurance Inspection or Rating Bureau in any
                way affecting the occupancy, access, use and
                maintenance of Premises, whether now in force or as may be hereafter
                promulgated. Tenant shall continuously comply with the provisions
                of the
                Occupational Safety and Health Act of 1970 and the Americans with
                Disabilities Act as
                the same may be amended or implemented from time to time. Expenses
                related
                to compliance of the Premises with Applicable Laws and insurance
                requirements shall be borne exclusively by
                Tenant.

            

    

     

    
      	
              4.10

            	
              Security.
                Tenant shall provide such security for the Premises and Tenant, Tenant’s
                officers, contractors, employees, agents, and invitees as shall be
                reasonable and prudent, to the extent not provided by public
                authorities.

            

    

     

    ARTICLE
      V  OBLIGATIONS
      OF LANDLORD

    

    
      	
              5.1

            	
              Landlord
                shall:

            

    

    

    
      	 	
              (a)

            	
              maintain
                and keep in good repair the Building, the property on which it is
                situated, the foundation, roof, structure and load-bearing supports,
                exterior walls, exterior plumbing, exterior electrical and lighting,
                parking facilities, sidewalks and curbs, except for damage caused
                by
                Tenant’s neglect or misuse, in which case repair expenses shall be borne
                by Tenant as Additional Rent; 

            

    

    

    
      	 	
              (b)

            	
              maintain
                landscaping on grounds outside the Premises which are within Landlord’s
                control; and

            

    

    

    
      	 	
              (c)

            	
              install
                a sign at Tenant’s sole expense bearing Tenant’s name on the common
                marquee and thereafter maintain the marquee at Landlord’s expense.
                (As
                of 10/24/03 the cost of the sign is approximately $80.00. This shall
                apply
                only if tenant chooses to have a sign on the
                marquee.)

            

    

     

    ARTICLE
      VI  CARE
      OF PREMISES AND OBLIGATIONS OF TENANT

    

    
      	
              6.1

            	
              Tenant
                shall:

            

    

    

    
      	 	
              (a)

            	
              promptly
                pay all charges and deposits for all electricity, gas, and telephone
                utilities supplied to the Premises. If
                the Premises are not separately metered, Landlord may charge Tenant
                a
                pro
                rata
                share of electricity, and gas, based on the percentage Tenant’s Leased
                Floor Space bears to total occupied floor space in the Business Park
                served on the same meter.

            

    

     

    
      	 	
              (b)

            	
              maintain
                and keep the Premises and fixtures thereon and therein in good repair,
                subject only to reasonable wear and tear, including, but not limited
                to,
                the following:

            

    

    

    
      	 	
              (1)

            	
              the
                interior of the Premises, including walls, floors, and ceilings,
                mechanical and electrical systems, lighting, plumbing and (subject
                to (c), below)
                the heating and air conditioning systems
                (“HVAC”);

            

    

    

    
      	 	
              (2)

            	
              all
                windows and doors, including frames, glass, molding, and
                hardware;

            

    

    

    
      	 	
              (3)

            	
              all
                other repairs to the Premises made necessary by Tenant’s failure to comply
                with Tenant’s obligations in this Lease;
                and

            

    

    

    
      	 	
              (4)

            	
               

            

    

    

    
      	 	
              (c)

            	
              maintain
                the HVAC systems in accordance with procedures prescribed by the
                manufacturer (change
                filters every 30 days),
                at
                Tenant’s expense, if Tenant fails to change filters and damage occurs to
                HVAC, Tenant will be responsible for repairs. If damage is not caused
                by
                Tenant’s negligence in changing the filters, Landlord will incur the
                expense to repair HVAC.

            

    

    

    
      	 	
              (d)

            	
              not
                cause or permit undue weight to be placed on the Premises, Building,
                and/or Business Park, including but not limited to driveways, parking
                areas or Leased Floor Space facilities in excess of the load per
                square
                foot that
                such facility was designed to carry and may be allowed by law. Tenant
                shall be responsible for the cost of repairs for damage caused by
                Tenant’s
                placement of undue and excessive weight on said facilities and said
                repair
                costs shall be deemed Additional Rent under this Lease; (pictures,
                diplomas and clocks are acceptable items to be placed on the walls)
                

            

    

     

    
      	 	
              (e)

            	
              not
                cause or permit the installation of any attachments or fixtures on
                walls,
                structure, or load-bearing supports;
                and

            

    

    

    
      	 	
              (f)

            	
              quit
                and surrender the Premises at the end or other termination of the
                term
                hereof broom clean and in at least as good condition as the Premises
                were
                in when delivered to Tenant, ordinary wear and tear, destruction
                by fire
                or elements, destruction by casualty not due to any act of negligence
                of
                Tenant or caused beyond the reasonable control of the Tenant excepted.
                Tenant shall, upon the discovery of any defect in or injury to the
                Premises, or any need of repairs, promptly report the same to Landlord
                in
                writing, specifying such defects, which shall be repaired by Landlord
                if
                expressly required to do so by this Lease; and

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (g)

            	
              keep
                the Premises and sidewalks, service-ways and loading areas adjacent
                to the
                Premises neat, clean and free from dirt or rubbish at all times,
                and shall
                store all trash and garbage within the Premises, arranging for the
                regular
                pick-up of such trash and garbage at Tenant’s
                expense. If the Landlord makes provision for common pick-up of trash
                and
                garbage within the Business Park, Tenant will utilize the said service,
                and Landlord may charge Tenant a pro
                rata
                share of the charges therefor based on the percentage Tenant’s Leased
                Floor Space bears to total occupied floor space in the Business Park
                served on the same invoice. Receiving and delivery of
                goods and merchandise and removal of garbage and trash shall be made
                only
                in the manner and areas prescribed by
                Landlord.

            

    

     

    ARTICLE
      VII  INDEMNIFICATION

    

    
      	
              7.1

            	
              Tenant
                Indemnity.
                Tenant agrees to indemnify and save harmless Landlord and its affiliated
                companies and their agents, servants, directors, officers, and employees
                (collectively, the “Indemnities”) from and against any and all
                liabilities, damages, claims, suits, costs (including court costs,
                attorneys’ fees, and costs of investigation), and actions of any kind
                arising or alleged to arise by reason of injury to or death of any
                person
                or damage to or loss of property occurring on, in,
                or about the Premises or by reason of any other claim whatsoever
                of any
                person or party occasioned or alleged to be
                occasioned in whole or in part by any act or omission on the part
                of
                Tenant or any invitee, licensee, employee, director, officer, servant,
                contractor, subcontractor, or tenant of Tenant, or by any breach,
                violation, or nonperformance of any covenant of Tenant under this
                Lease.
                If any action or proceeding shall be brought by or against any Indemnities
                in
                connection with any such liability or claim, Tenant, on notice from
                Landlord, shall defend such action or proceeding, at Tenant’s expense, by
                or through attorneys reasonably satisfactory to Landlord. The provisions
                of this paragraph shall apply to all activities of Tenant with respect
                to
                the Premises or the Building and/or Business Park, whether occurring
                before or after the Commencement Date and before or after the Expiration
                Date or other termination of this Lease. Tenant’s obligation under this
                paragraph shall not be limited to the limits or coverage of insurance
                maintained by Tenant.
                Tenant
                not responsible to the extent liabilities, damage, claims, suits,
                costs
                and action are occasioned by the negligence of Landlord, or its
                agents.

            

    

     

    
      	
              7.2

            	
              Landlord
                Indemnity.
                Landlord shall protect, indemnify, save and hold harmless Tenant
                and its
                agents, servants, directors, officers and employees, against and
                from all
                claims, liabilities, losses, damages, costs (including court costs,
                attorneys’ fees, and costs of investigation) and actions of any kind,
                arising or alleged to arise by reason of breach, violation, or
                non-performance of any covenant of Landlord under this Lease. If
                any
                action or proceeding shall be brought
                by or against Tenant in connection with any such liability or claim,
                Landlord, on notice from Tenant, shall defend such action or proceeding,
                at Landlord’s expense, by or through attorneys reasonably satisfactory to
                Tenant. The
                provisions of this paragraph shall apply to all activities of Landlord
                with respect to the Premises or the Building, whether occurring before
                or
                after the Commencement Date and before or after the Expiration Date
                or
                other termination of this Lease. Landlord’s obligations under this
                paragraph shall be limited to the limits or coverage of insurance
                maintained by Landlord or if the cause of any claim is not covered
                by
                Landlord’s insurance, then Landlord’s obligations under this paragraph
                shall be limited to the extent of Landlord’s interest in the
                Building.

            

    

     

    
      	
              7.3

            	
              Tenant’s
                Hazardous Materials Indemnity.
                The following terms shall have the following
                meanings:

            

    

    

    “Hazardous
      Materials” shall mean any substance the presence of which on the Premises is
      regulated by any Governmental Requirements, including but not limited to (a)
      any
“hazardous waste” as defined by the Resource Conservation and Recovery Act of
      1976 (45 U.S.C. Section 6901 et
      seq.),
      as
      amended from time to time, and any regulations promulgated thereunder; (b)
      any
“hazardous substance” as defined by the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980 (42 U.S.C. section 9601 et seq.)
      (“CERCLA” or “SuperFund”), as amended from time to time, and regulations
      promulgated thereunder; (c) asbestos and/or asbestos-containing materials;
      (d)
      polychlorinated biphenyls; (e) any petroleum-based products; and (f) underground
      storage tanks, whether empty, filled or partially filled with any
      substance.

    

    “Governmental
      Requirements” shall mean all laws, ordinances, statutes, codes, rules,
      regulations, orders and decrees of the United States, the state, the county,
      the
      city or any other political subdivision in which the Premises are located and
      any other political subdivision, agency or instrumentality exercising
      jurisdiction over the Tenant or the Premises.

    

    “Hazardous
      Materials Contamination” shall mean the contamination of the improvements,
      facilities, soil, ground water, air, or other elements on, over or under the
      Premises by Hazardous Materials, or the contamination of the improvements,
      facilities, ground water, air, or other elements on, over or under any other
      property as a result of Hazardous Materials at any time emanating from the
      Premises.

    

    Tenant
      hereby indemnifies, defends and saves harmless the Landlord and all future
      owners of any interest in the Business Park (the “Landlord Parties”) from and
      against any suits, actions, legal or administrative proceedings, demands,
      claims, liabilities, fees, fines, penalties, losses, damages, expenses or costs,
      including but not limited to interest, court costs and attorneys’ fees incurred
      or suffered by the Landlord Parties or any of them (a) that is incurred
or
      imposed based upon any Governmental Requirements and that arises out of any
      act
      or omission of the Tenant, its owners, directors, officers, employees, agents,
      contractors, invitees, licensees or assignees, or (b) that otherwise arises
      by
      the breach by the Tenant, the Tenant’s owners, directors, officers, employees,
      agents, contractors, invitees, licensees or assignees, of any representation,
      warranty or covenant in this section. This indemnification shall survive the
      termination or expiration of this Lease.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	
              7.4

            	
              Waiver
                of Liability.
                In no event shall Landlord be liable in any manner to Tenant or any
                other
                party as the result of the acts or omissions of Tenant, Tenant’s agents,
                employees, contractors, or any other tenant of the Business Park.
                All
                personal property upon the Premises shall be at the risk of Tenant
                only
                and no Indemnities shall be liable for any damage thereto or theft
                thereof, whether or not due in whole or in part to the negligence
                of any
                Indemnities. In no event shall Tenant be liable in any manner to
                Landlord
                or any other party as the result of the acts or omissions of Landlord,
                Landlord’s agents, employees, contractors, or any other tenant of the
                Business Park.

            

    

    

    
      	
              7.5

            	
              Tenant
                Waiver of Subrogation.
                No
                party shall have any right or claim against any Indemnities for any
                property damage (whether caused by negligence or the condition of
                the
                Premises, the Building, the Business Park or any part thereof) by
                way of
                subrogation or assignment, Tenant hereby waiving and relinquishing
                any
                such right. To the extent Tenant chooses to insure this property,
                Tenant
                shall request Tenant=s
                insurance carrier to endorse all applicable policies waiving the
                carrier’s
                right of recovery under subrogation or otherwise in favor of any
                Indemnities and provide a certificate of insurance verifying this
                waiver.

            

    

    

    
      	
              7.6

            	
              Landlord
                Waiver of Subrogation.
                Landlord hereby waives and relinquishes any right or claim against
                Tenant
                for damage to the Premises or the Building by way of subrogation
                or
                assignment, to the extent covered by insurance proceeds. Landlord
                shall
                request Landlord’s insurance carrier to endorse all applicable policies
                waiving the carrier’s right of recovery under subrogation or otherwise in
                favor of Tenant and a certificate of insurance will be made available
                at
                the request of Tenant.

            

    

    

    
      	
              7.7

            	
               Tenant’s
                Insurance.
                Tenant, at Tenant’s expense, shall maintain in force during the
                term:

            

    

    

    
      	 	
              (a)

            	
              commercial
                general liability insurance, which shall include coverage for personal
                liability, independent contractors, bodily injury, death, and property
                damage, all on an occurrence basis with respect to the building and
                business carried on in or from the Premises and Tenant’s use and occupancy
                of the Premises, with coverage for any one occurrence or claim of
                not less
                than $1,000,000.00 or such other amount as Landlord may reasonably
                require
                upon not less than six (6) months prior written notice, and specifically
                including coverage of the Tenant’s indemnity obligations in this Lease,
                which insurance shall include Landlord and such additional parties
                as may
                be reasonably designated by Landlord as additional named insureds
                and
                shall protect Landlord in respect of claims by Tenant as if Landlord
                were
                separately insured; and,

            

    

    

    
      	 	
              (b)

            	
              special
                form property insurance against such other perils and in such amounts
                as
                Landlord may from time to time reasonably require upon not less than
                ninety (90) days prior written notice, such requirement to be made
                on the
                basis that the required insurance is customary at the time for prudent
                tenants of properties similar to the Business Park in the Amarillo,
                Texas
                area.

            

    

    

    
      	
              7.8

            	
              Landlord’s
                Insurance.
                During the Lease Term and any extension or renewal thereof, Landlord
                may
                maintain policies of insurance covering loss or damage to the Building
                in
                which the Premises are located in an amount or percentage of replacement
                value as Landlord deems reasonable in relation to the age, location,
                type
                of construction and physical condition of the Premises and/or Building.
                The policies may provide protection against all perils included within
                the
                classification of special form property insurance and any other perils
                which Landlord deems necessary. Additionally, Landlord may maintain
                a
                commercial general liability policy of insurance in the amount of
                no less
                than $1,000,000.00 for any one occurrence or
                claim.

            

    

    

    
      	
              7.9

            	
              Policy
                Form.
                All insurance required to be maintained by Landlord or Tenant shall
                be on
                terms and with insurers reasonably acceptable to Landlord. Each policy
                shall contain an undertaking by the insurer that no material change
                adverse to Landlord or Tenant will be made, and the policy will not
                lapse
                or be canceled, except after not less than thirty (30) days prior
                written
                notice to Landlord of the intended change, lapse, or cancellation.
                Tenant
                shall furnish to Landlord, if and whenever requested by Landlord,
                certificates or other evidence acceptable to Landlord as to the insurance
                from time to time effected by Tenant and its renewal or continuation
                in
                force.

            

    

    

    ARTICLE
      VIII  DAMAGE
      OR DESTRUCTION

    

    
      	
              8.1

            	
              Notice
                to Landlord.
                If
                the Premises or any structures or improvements on the Premises should
                be
                damaged or destroyed by fire, tornado or other casualty, Tenant shall
                give
                immediate written notice of the damage or destruction to Landlord,
                including a description of the damage and, as far as known to Tenant,
                the
                cause of the damage.

            

    

    

    
      	
              8.2

            	
              Destruction.
                If
                the Premises are damaged by fire, tornado, or other casualty not
                the fault
                of Tenant or any person in or about the Premises with the express
                or
                implied consent of Tenant, but not to such an extent that rebuilding
                or
                repairs cannot be reasonably completed within ninety (90) working
                days,
                this Lease shall not terminate except as provided in subparagraphs
                (a) and
                (b) below:

            

    

    

    
      	 	
              (a)

            	
              Landlord
                may, at Landlord’s sole discretion and cost, elect to proceed immediately
                to rebuild or repair the Premises to substantially the condition
                in which
                they existed prior to such damage or to terminate this Lease effective
                as
                of the date of the occurrence of the damage. If the Premises are
                untenantable in whole or in part following such damage, the Rent
                payable
                during the period in which they are untenantable shall be adjusted
                equitably. In the event Landlord elects to repair and then fails
                to
                complete such rebuilding or repairs within thirty
                (30)
                working days from the date of written notification by Tenant to Landlord
                of the occurrence of the damage, Tenant may terminate this Lease
                by
                written notification to Landlord. Upon such notification, all rights
                and
                obligations under this Lease shall
                cease.

            

    

    

    
      	 	
              (b)

            	
              If
                Landlord elects not to rebuild or repair the Premises, and the Premises
                are untenantable in whole or in part following such damage, Tenant
                may
                elect to terminate this Lease or to continue this Lease with the
                Rent for
                the remainder of the Lease Term adjusted
                equitably.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX  ENTRY
      BY LANDLORD

    

    
      	
              9.1

            	
              Entry
                by Landlord.
                Landlord may enter the Premises of the purpose of examining, inspecting
                and cleaning, or making repairs and additions, or exhibiting the
                Premises,
                and Tenant shall not be entitled to an abatement or reduction of
                Rent by
                reason of such entry by Landlord.

            

    

    

    ARTICLE
      X  IMPROVEMENTS
      BY TENANT

    

    
      	
              10.1

            	
              Improvements
                to Premises.
                Tenant shall make no additions or alterations in or to the Premises
                without the prior written consent of Landlord, which shall not be
                unreasonably withheld. All alterations, additions, or improvements
                which
                are made by the Tenant upon the Premises shall remain upon and be
                surrendered with the Premises as a part thereof at the termination
                of this
                Lease, or, at Landlord’s option, the Premises will be restored to their
                original condition at Tenant’s own cost and expense upon the termination
                of this Lease.

            

    

    

    
      	
              10.2

            	
              Signage.
                Subject to the provisions of applicable laws, Tenant, at Tenant’s sole
                expense, shall supply, install and maintain Tenant’s own sign on the
                building of a type and design as designated by the Landlord and defined
                in
                Exhibit “H” of this Lease.

            

    

    

    
      	
              10.3

            	
              Mechanics’
                Liens.
                Tenant shall not permit any liens to attach to the Building or the
                Business Park for work done for or on account of Tenant, but shall
                only
                attach, if at all, to the Tenant’s rights under this Lease. Tenant shall
                (and Landlord may) post prominent notices during all periods of
                construction on the Premises that Tenant is only a tenant of the
                Business
                Park, and that Landlord and the Business Park shall have no responsibility
                for the payment or performance of Tenant’s
                work.

            

    

    

    ARTICLE
      XI   PEACEABLE
      POSSESSION

    

    
      	
              11.1

            	
              Peaceable
                Possession.
                Landlord covenants and agrees that Tenant, on paying the Rent and
                other
                charges herein provided for, and observing and keeping the covenants,
                conditions, and terms of this Lease on Tenant’s part to be kept or
                performed, shall lawfully and quietly hold, occupy and enjoy the
                Premises
                during the term of this Lease without hindrance or molestation of
                Landlord, or any person claiming under Landlord, except such portion
                of
                the Premises, if any, that shall be taken under the power of the
                eminent
                domain.

            

    

    

    ARTICLE
      XII  ENFORCEMENT
      RIGHTS

    

    
      	
              12.1

            	
              Default
                by Tenant.
                The following shall be deemed to be events of default by Tenant under
                this
                Lease:

            

    

    

    
      	 	
              (a)

            	
              Tenant
                shall fail to pay when due any installment of Rent or any other payment
                required pursuant to this Lease;

            

    

    

    
      	 	
              (b)

            	
              Tenant
                shall fail to comply with any term, provision, or covenant of this
                Lease,
                which is curable by Tenant, other than the payment of Rent or other
                monetary payment required pursuant to this Lease, and Tenant has
                failed to
                cure within thirty (30) days after receipt of written
                notice;

            

    

    

    
      	 	
              (c)

            	
              Tenant
                shall file a petition or be adjudged bankrupt or insolvent under
                any
                applicable federal or state bankruptcy or insolvency law or admit
                that
                Tenant cannot meet Tenant’s financial obligations as they become due; or a
                receiver or trustee shall be appointed for all or substantially all
                of the
                assets of Tenant; or Tenant shall make a transfer in fraud of creditors
                or
                shall make an assignment for the benefit of creditors;
                

            

    

    

    
      	 	
              (d)

            	
              Tenant
                shall do or permit to be done any act which results in a lien being
                filed
                against the Premises, the Building, the Business Park, and/or any
                project
                of which the Premises are a part;
                or

            

    

    

    
      	 	
              (e)

            	
              Tenant
                shall assign the Lease or sublet the Premises without Landlord’s prior
                written consent.

            

    

    

    
      	
              12.2

            	
              Remedies
                for Tenant’s Default.
                Upon the occurrence of any event of default set forth in this Lease,
                Landlord shall have the option to pursue any one or more of the remedies
                set forth herein without any notice or
                demand:

            

    

    

    
      	 	
              (a)

            	
              Landlord
                may enter upon and take possession of the Premises, by picking or
                changing
                locks if necessary, and lock out, expel, or remove Tenant and any
                other
                person who may be occupying all or any part of the Premises without
                being
                liable for any claim for damages, and relet the Premises on behalf
                of
                Tenant and receive directly the Rent by reason of the reletting.
                Tenant
                agrees to pay Landlord on demand any deficiency that may arise by
                reason
                of any reletting of the Premises; further, Tenant agrees to reimburse
                Landlord for any legal expenses, reletting expenses and or expenditures
                made by Landlord for reletting, remodeling or repairing in order
                to relet
                the Premises;

            

    

    

    
      	 	
              (b)

            	
              Landlord
                may enter upon the Premises, by picking or changing locks if necessary,
                without being liable for any claim for damages, and perform Tenant’s
                obligations in order to comply with the terms of this Lease. Tenant
                agrees
                to reimburse Landlord on demand for any expenses which Landlord may
                incur
                in effecting compliance with Tenant’s obligations under this Lease;
                further, Tenant agrees that Landlord shall not be liable for any
                damages
                resulting to Tenant from effecting compliance with Tenant’s obligations
                under this subparagraph (b) caused by the negligence of Landlord
                or
                otherwise;

            

    

    

    
      	 	
              (c)

            	
              Landlord
                shall have the right to invoke any remedy allowed at law or in equity.
                Mention in this Lease of any one particular remedy shall not preclude
                Landlord from pursuit of any other remedy at law or in equity;
                and/or

            

    

     

    
      	 	
              (d)

            	
              Landlord
                may terminate this Lease, in which event, Tenant shall immediately
                surrender the Premises to Landlord, and if Tenant fails to surrender
                the
                Premises, Landlord may, without prejudice to any other remedy which
                Landlord may have for possession or arrearages in Rent, enter upon
                and
                take possession of the Premises, by picking or changing locks if
                necessary, and lock out, expel, or remove Tenant and any other person
                who
                may be occupying all or any part of the Premises without being liable
                for
                any claim for damages. Tenant agrees to pay on demand the amount
                of all
                loss and damage which Landlord may suffer by reason of the termination
                of
                this Lease under this subparagraph (d), whether through inability
                to relet
                the Premises on satisfactory terms or
                otherwise.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      anything contained in this Lease to the contrary, no act or omission of Landlord
      shall be construed as a termination of this Lease. Landlord shall terminate
      this
      Lease only in writing by mailing or delivering to Tenant notice of such
      termination.

    

    
      	
              12.3

            	
              Waiver.
                IF LANDLORD CHANGES THE LOCKS ON THE PREMISES BECAUSE OF TENANT’S DEFAULT
                UNDER THIS LEASE, PURSUANT TO SECTION 93.002(f) OF THE TEXAS PROPERTY
                CODE
                OR ANY AMENDMENT THEREOF, TENANT WAIVES; (a) ANY OBLIGATION OF LANDLORD
                OR
                LANDLORD’S AGENT TO PLACE A WRITTEN NOTICE ON TENANT’S FRONT DOOR STATING
                THE NAME AND ADDRESS OR TELEPHONE NUMBER OF THE INDIVIDUAL OR COMPANY
                FROM
                WHICH A NEW KEY MAY BE OBTAINED; (b) THE RIGHT TO RECEIVE A NEW KEY
                TO THE
                PREMISES; AND (c) THE RIGHT TO REMOVE ANY PROPERTY IN THE PREMISES
                UNTIL
                TENANT HAS CURED ALL DEFAULTS UNDER THIS LEASE TO THE SOLE SATISFACTION
                OF
                LANDLORD.

            

    

    

    
      	
              12.4

            	
              Not
                a Trespass.
                If
                Landlord exercises any of Landlord’s rights or remedies provided in this
                Lease, Landlord shall not be liable for prosecution for trespass,
                or
                otherwise, or any claim for
                damages.

            

    

    

    ARTICLE
      XIII  ASSIGNMENTS

    

    
      	
              13.1

            	
              Assignments
                by Tenant.
                Tenant shall not, except with the prior written consent of Landlord
                and
                the Landlord’s lender, if applicable, assign this Lease or any part of
                Tenant’s rights, titles, interests, and estates hereunder or allow the
                same to be assigned by operation of law or otherwise, or sublet the
                Premises or any part thereof. In event of permitted assignment or
                subletting by Tenant, Tenant shall remain primarily obligated to
                Landlord
                for performance of Tenant’s covenants and obligations under this
                Lease.

            

    

    

    
      	
              13.2

            	
              Assignments
                by Landlord.
                Landlord may sell or dispose of all or any part of Landlord’s interest in
                the Premises, Building, and/or Business Park. In the event of the
                transfer
                or assignment by Landlord of its interest in the Premises, in this
                Lease,
                and in the Building containing the Premises and/or Business Park
                to a
                person expressly assuming Landlord’s obligations under this Lease,
                Landlord shall thereby be released from any further obligations hereunder,
                and Tenant agrees to look solely to such successor in interest of
                the
                Landlord for performance of such obligations. Any remaining security
                given
                by Tenant to secure performance of Tenant’s obligations hereunder shall be
                assigned and transferred by Landlord to such successor in interest,
                and
                Landlord shall thereby be discharged of any further obligation relating
                thereto.

            

    

    

    ARTICLE
      XIV  ESTOPPEL
      CERTIFICATE

    

    
      	
              14.1

            	
              Estoppel
                Certificate.
                Tenant will, at any time and from time to time, upon not less than
                ten
                (10) days prior request by Landlord, execute, acknowledge, and deliver
                to
                Landlord a statement in writing executed by Tenant, certifying that
                this
                Lease is unmodified and in full effect (or, if there have been
                modifications, that this Lease is in full effect as modified, setting
                forth such modifications) and the date to which the Rent has been
                paid,
                and either stating that to the knowledge of the signer of such
                certificate, no default exists hereunder or specifying each such
                default
                of which the signer may have knowledge; it being intended that any
                such
                statement by Tenant may be relied upon by any prospective purchaser
                or
                mortgagee of the Premises.

            

    

    

    ARTICLE
      XV  SUBORDINATION
      AND ATTORNMENT

    

    
      	
              15.1

            	
              Subordination.
                This Lease and Tenant=s
                rights under this Lease are subject and subordinate to any deed of
                trust
                (the “Lien”), together with any renewals, extensions, modifications,
                consolidations, and replacements of such Lien, now or hereafter affecting
                or placed, charged, or enforced against the Premises or all or any
                portion
                of the Building and/or Business Park or any interest of Landlord
                in them
                or Landlord’s interest in this Lease and the leasehold estate created by
                this Lease. This provision will be self-operative and no further
                instrument of subordination will be required in order to effect it.
                Nevertheless, Tenant will execute, acknowledge, and deliver to Landlord,
                at any time and from time to time, upon demand by Landlord, such
                documents
                as may be requested by Landlord, or any mortgagee, to confirm or
                effect
                any such subordination. If Tenant fails or refuses to execute,
                acknowledge, and deliver any such document within ten (10) days after
                written demand, Landlord, Landlord’s successors and assigns, will be
                entitled to execute, acknowledge, and deliver any and all such documents
                for and on behalf of Tenant as attorney-in-fact for Tenant, coupled
                with
                an interest. Tenant, by this Paragraph 15.1, constitutes and irrevocably
                appoints Landlord, Landlord’s successors and assigns, as
                Tenant=s
                attorney-in-fact to execute, acknowledge, and deliver any and all
                documents described in this Paragraph 15.1 for and on behalf of Tenant,
                as
                provided in this Paragraph 15.1.

            

    

     

    
      	
              15.2

            	
              Attornment.
                Tenant agrees that if any holder of any Lien encumbering any part
                of the
                Building succeeds to Landlord’s interest in the Premises, Tenant will pay
                to such holder all Rents subsequently payable under this Lease. Tenant
                agrees that in the event of enforcement by the trustee or the beneficiary
                under or holder or owner of any such Lien of the remedies provided
                for by
                law or by such Lien, Tenant will, upon request of any person or party
                succeeding to the interest of Landlord as a result of such enforcement,
                automatically become the tenant of and attorn to successor in interest
                without change in the terms or provisions of this Lease. Upon request
                by
                Landlord, or such successor in interest, and without cost to Landlord
                or
                such successor in interest, Tenant will execute, acknowledge, and
                deliver
                an instrument or instruments
                confirming the attornment or acknowledging the agreement to so attorn.
                If
                Tenant fails or refuses to execute, acknowledge, or deliver any such
                document within ten (10) days after written demand, Landlord or its
                successor in interest will be entitled to execute, acknowledge, and
                deliver any and all such documents for and on behalf of Tenant as
                attorney-in-fact for Tenant, coupled with an interest. Tenant, by
                this
                Paragraph 15.2, constitutes and irrevocably appoints Landlord or
                its
                successor in interest as Tenant’s attorney-in-fact to execute,
                acknowledge, and deliver any and all documents described in this
                Paragraph
                15.2 for and on behalf of Tenant, as provided in this Paragraph
                15.2.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XVI  CONDEMNATION

    

    
      	
              16.1

            	
              Definition.
                The term “Condemnation Proceeding(s)” means any action or proceeding in
                which any interest in the Premises is taken for any public or quasi-public
                purpose by any lawful authority through exercise of the power of
                eminent
                domain or right of condemnation or by purchase or otherwise in lieu
                thereof. If the whole of the Tenant’s Leased Floor Space is taken through
                Condemnation Proceedings, this Lease shall automatically terminate
                as of
                the date of taking. If in excess of twenty-five percent (25%) of
                the
                Leased Floor Space is taken, either party hereto shall have the right
                to
                terminate this Lease. Any such right of termination must be accomplished
                through written notice to the other party given within six (6) months
                after the date of taking. In all other cases, or if neither party
                exercises its right to terminate, this Lease shall remain in effect
                and
                the Rent payable hereunder from and after the date of taking shall
                be
                proportionately reduced.

            

    

    

    
      	
              16.2

            	
              Restoration.
                In
                the event of a partial taking, if neither party exercises any option
                available to it to terminate this Lease, Landlord may elect to restore
                the
                Building to a complete unit as similar under the circumstances as
                is
                reasonably possible, in design, character, and quality, to the Building
                as
                it existed before such taking or to terminate Lease effective as
                of the
                date the condemning authority or purchaser takes
                possession.

            

    

    

    
      	
              16.3

            	
              Condemnation
                Award.
                All compensation awarded or paid upon a total or partial taking of
                the
                Premises shall belong to and be the property of Landlord without
                any
                participation by Tenant. However, nothing contained herein shall
                be
                construed to preclude Tenant from prosecuting any separate direct
                claim
                against the condemning authority in such Condemnation Proceedings
                for loss
                of business, and/or depreciation to, damage to, and/or costs of removal
                of
                and/or for the value of stock and/or trade fixtures, furniture, and
                other
                personal property belonging to Tenant. Provided, however, that no
                such
                claim shall diminish or otherwise adversely affect Landlord’s award or the
                awards of any mortgagee.

            

    

    

    ARTICLE
      XVII 
       DELAY
      IN OCCUPANCY

    

    
      	
              17.1

            	
              Delay
                in Occupancy.
                If
                Landlord cannot acquire or deliver possession of the Premises by
                the time
                stated herein by reason of circumstances beyond its control, Tenant
                waives
                any claim for damages due to such delay, and Landlord waives the
                payment
                of any Rent until Landlord delivers possession to
                Tenant.

            

    

    

    ARTICLE
      XVIII 
      INVALID
      PROVISIONS

    

    
      	
              18.1

            	
              Invalid
                Provisions.
                If
                any clause or provision of this Lease is illegal or unenforceable
                under
                present or future laws effective during the term of this Lease, then
                and
                in that event, the remainder of this Lease shall not be affected
                thereby,
                and in lieu of such clause or provision there shall be added automatically
                as a part of this Lease, a clause or provision as similar in terms
                to such
                illegal, invalid, or unenforceable clause or provision as may be
                possible
                and be legal, valid, and
                enforceable.

            

    

    

    ARTICLE
      XIX NOTICES

    

    
      	
              19.1

            	
              Notices.
                Landlord may act in any manner provided in this Lease by its property
                manager or by any agent designated by Landlord. Whenever any notice
                is
                required or permitted hereunder or by law, such notice shall be in
                writing. Any notice or document required or permitted to be delivered
                hereunder or by law, shall be deemed to be delivered when personally
                delivered or, whether actually received or not, when deposited in
                the
                United States Mail, postage prepaid, certified mail, addressed to
                the
                party to be notified at the addresses shown herein or at such other
                address as such party may have theretofore specified by written notice
                delivered in accordance herewith.

            

    

    

    ARTICLE
      XX SECURITY
      DEPOSIT

    

    
      	
              20.1

            	
              Security
                Deposit.
                Tenant’s Security Deposit equal to one (1) month’s Rent, being due on
                execution hereof, shall secure the performance of the Tenant’s obligations
                hereunder but is not a limitation on Landlord’s recovery. No interest will
                be paid to Tenant on the security deposit. Landlord may place the
                security
                deposit in an interest bearing account and any interest earned will
                be
                paid the Landlord or Landlord’s representative. Tenant may not hold
                payment of any portion of the last month’s rent on grounds that the
                security deposit is security for unpaid rent. Bad faith violations
                may
                subject Tenant to liability up to three times the rent wrongfully
                withheld
                and the Landlord’s reasonable attorney’s
                fees.

            

    

    

    
      	
              20.2

            	
              Landlord
                is not obligated to return or account for the security deposit until
                30
                days after Tenant surrenders the Property (vacating and returning
                all keys
                and access devices) and providing Landlord a written statement of
                Tenant’s
                forwarding address.

            

    

    

    
      	
              20.3

            	
              Deductions:

            

    

    

    
      	 	
              ·

            	
              Landlord
                may deduct reasonable charges from the security deposit
                for:

            

    

    

    
      	 	
              1.

            	
              Late
                charges;

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	 	
              2.

            	
              Cost
                of cleaning, deodorizing and repairing the Property and its contents
                for
                which Tenant is responsible;

            

    

    
      	 	
              3.

            	
              Replacing
                unreturned keys, garage door openers or other security
                devices;

            

    

    
      	 	
              4.

            	
              The
                removal of unauthorized locks or fixtures installed by
                Tenant;

            

    

    
      	 	
              5.

            	
              Insufficient
                light bulbs;

            

    

    
      	 	
              6.

            	
              Packing,
                removing and storing abandoned
                property;

            

    

    
      	 	
              7.

            	
              Removing
                abandoned or illegally parked
                vehicles;

            

    

    
      	 	
              8.

            	
              Attorney
                fees and court costs incurred in any proceeding against
                Tenant;

            

    

    
      	 	
              9.

            	
              Other
                items Tenant is responsible to pay under this
                Lease.

            

    

    

    
      	 	
              ·

            	
              If
                deductions exceed the security deposit, Tenant will pay to Landlord
                the
                excess within ten (10) days after Landlord makes written
                demand.

            

    

     

    ARTICLE
      XXI ENTIRETY
      OF LEASE

    

    
      	
              21.1

            	
              Entirety
                of Lease.
                It
                is expressly agreed by Tenant and Landlord, as a material consideration
                for the execution of this Lease, that there are, and were, no verbal
                representations, understandings, stipulations, agreements, or promises
                pertaining thereto not incorporated in writing herein, and it is
                likewise
                agreed that this Lease shall not be altered, waived, amended, or
                extended
                otherwise than as provided herein unless it is done in writing, executed
                by Tenant or Landlord.

            

    

    

    ARTICLE
      XXII 
      MISCELLANEOUS

    

    
      	
              22.1

            	
              Binding
                Effect.
                The provisions of this Lease shall be binding and inure to the benefit
                of
                Landlord and Tenant, respectively, and to their respective heirs,
                personal
                representatives, successors, and assigns, if permitted
                hereunder.

            

    

    

    
      	
              22.2

            	
              Texas
                Law to Apply.
                This Lease shall be construed under, and in accordance with, the
                laws of
                the State of Texas, and all obligations of the parties created by
                this
                Lease are performable in the county in which the Premises are
                located.

            

    

    

    
      	
              22.3

            	
              Amendment.
                No
                amendment, modification, or alteration of the terms of this Lease
                shall be
                binding unless the same is in writing, dated subsequent to the date
                of
                this Lease, and duly executed by the parties to this
                Lease.

            

    

    

    
      	
              22.4

            	
              Joint
                and Several Liability.
                If
                there is more than one Tenant, the obligations imposed upon Tenant
                by
                virtue of this Lease shall be joint and several. If there is a guarantor
                of Tenant’s obligations under this Lease, the obligations imposed upon
                Tenant shall be joint and several obligations of Tenant and the guarantor.
                Landlord need not first proceed against Tenant before proceeding
                against
                the guarantor, nor shall any such guarantor be released from its
                guaranty
                for any reason whatsoever. Landlord’s liability hereunder shall be limited
                to Landlord’s equity in the fee estate of the
                Premises.

            

    

    

    
      	
              22.5

            	
              Rights
                and Remedies Cumulative.
                The rights and remedies provided by this Lease are cumulative, and
                the use
                of any one right or remedy by either party shall not preclude or
                waive its
                right to use any or all other remedies. These rights and remedies
                are
                given in addition to any other rights the parties may have by law,
                statute, ordinance, or otherwise.

            

    

    

    
      	
              22.6

            	
              Waiver
                of Default; Consent.
                No
                waiver by either party of any default or breach of any term, condition,
                or
                covenant of this Lease shall be deemed to be waiver of any other
                breach of
                the same or any other term, condition, or covenant of this Lease.
                The
                consent or approval by either party to or of any act by the other
                party
                requiring such consent or approval shall not be deemed to waiver
                or render
                unnecessary consent to or approval of any subsequent similar
                act.

            

    

    

    
      	
              22.7

            	
              Time
                of Essence.
                Time is of the essence of this
                Lease.

            

    

    

    
      	
              22.8

            	
              Gender.
                Whenever used, the singular shall include the plural, the plural
                the
                singular, and the use of any gender shall include all
                genders.

            

    

    

    
      	
              22.9

            	
              Captions.
                The paragraph captions and titles are included only for convenience
                and
                shall not be used to define or construe any portion of this
                Lease.

            

    

    

    
      	
              22.10

            	
              Delays.
                Whenever a period of time is herein prescribed for action to be taken
                by
                Landlord, Landlord shall not be liable or responsible for, and there
                shall
                be excluded from the computation of any such period of time, any
                delays
                due to strikes, riots, acts of God, shortages of labor or materials,
                war,
                governmental laws, regulations or restrictions or any other causes
                of any
                kind whatsoever which are beyond the reasonable control of
                Landlord.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “A”

    

    Legal
      Description of
      Business Park

    

    Building
      # 21, Lot 2, Block 1, South Side Acres Unit # 6, an addition to the City of
      Amarillo, Randall County, Texas as filed of record in Volume 1671, Page 457
      of
      the Deed Records of Randall County, Texas. 

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “B”

    

    SITE
      PLAN DELINEATING THE PREMISES

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “C”

    

    RULES
      AND REGULATIONS

     

    
      	
              (1)

            	
              Any
                damage done to buildings, structures, ramps, parking areas, sidewalks,
                drives, lights, meters, and piping during loading and unloading of
                Tenant’s goods and merchandise shall be the responsibility of the Tenant
                even if this damage is caused by independent
                suppliers.

            

    

    

    
      	
              (2)

            	
              All
                garbage and refuse shall be kept in rat-proof, sealable containers
                as
                specified by the Landlord and shall be prepared for collection in
                the
                manner and at the time and places specified by the Landlord. If the
                Landlord shall provide or designate a service for picking up refuse
                and
                garbage, the Tenant shall use this service at the Tenant’s cost. The
                Tenant shall pay the cost of the removal of any of Tenant’s refuse or
                rubbish.

            

    

    

    
      	
              (3)

            	
              No
                aerial, antenna, or any other item requiring a roof penetration shall
                be
                erected on the roof or exterior walls of the Premises or Building
                or on
                the grounds without, in each instance, the prior written consent
                of the
                Landlord. Any aerial or antenna installed without prior written consent
                shall be subject to removal without notice at any time. The Tenant
                shall
                be responsible for the cost of any removal and/or repair to the roof
                penetrations caused by the Tenant or the Tenant’s
                agent.

            

    

    

    
      	
              (4)

            	
              No
                loud speakers, televisions, phonographs, radios, lights, or other
                devices
                shall be used in a manner so as to be heard or seen outside of the
                Premises without prior written consent of the
                Landlord.

            

    

    

    
      	
              (5)

            	
              The
                outside areas immediately joining the Premises shall be kept clear
                and
                free from dirt and rubbish by the Tenant to the satisfaction of the
                Landlord and the Tenant shall not place or permit any obstructions
                or
                merchandise in these areas including doorways, vestibules and
                sidewalks.

            

    

    

    
      	
              (6)

            	
              The
                Tenant and the Tenant’s employees shall park their cars only in those
                portions of the parking lot designated for Tenant parking by the
                Landlord.
                The Landlord may also instruct that any abandoned, unregistered or
                inoperable vehicles are to be towed away under local ordinances at
                the
                vehicle owner’s full cost and
                liability.

            

    

    

    
      	
              (7)

            	
              The
                plumbing facilities shall not be used for any purpose than that for
                which
                they are constructed and no foreign substance of any kind shall be
                thrown
                or deposited therein. Any expense due to breakage, stoppage, or damage
                resulting from a violation of this provision shall be paid by the
                Tenant
                who shall or whose employees, agents, or invitees shall have caused
                it.

            

    

    

    
      	
              (8)

            	
              The
                Tenant shall use, at Tenant’s cost, a pest control service approved by the
                Landlord.

            

    

    

    
      	
              (9)

            	
              The
                Tenant shall not burn any trash or garbage of any kind in or about
                the
                Premises or the Business Park.

            

    

    

    
      	
              (10)

            	
              No
                Tenant nor Tenant’s agents, employees, or invitees shall use the Premises
                for overnight sleeping or the use as a
                domicile.

            

    

    

    
      	
              (11)

            	
              No
                pets or guard dogs shall be kept at the
                Premises.

            

    

    

    
      	
              (12)

            	
              All
                outdoor storage if permitted by Landlord and by law shall be suitably
                screened to Landlord’s
                sole satisfaction.

            

    

    

    
      	
              (13)

            	
              Tenant
                shall not overload electrical supply or
                demand.

            

    

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “G”

    

    UNCONDITIONAL
      GUARANTY OF PAYMENT AND PERFORMANCE

     

    The
      undersigned (whether one or more, called the “Guarantor”), as a material
      inducement to and in consideration of WILD
      PONY HOLDINGS, L.P. entering
      into the foregoing Office/Warehouse Lease Agreement (the “Lease”)
      with Amarillo
      Biosciences, Inc. (the
      “Tenant”), hereby, jointly and severally and as a primary obligor, guarantees
      and promises to and for the benefit of Landlord, its successors and assigns
      (collectively, the “Landlord”) that Guarantor shall pay and perform the
      provisions of the Lease that Tenant is to pay and perform.

    

    The
      provisions of the Lease may be changed by agreement between Landlord and Tenant
      at any time, or by course or conduct, without the consent of or without any
      notice to Guarantor. This Guaranty shall guarantee the payment and performance
      of the Lease as changed. Any assignment of the Lease (as permitted by the Lease)
      shall not affect this Guaranty.

    

    This
      Guaranty shall not be affected by Landlord’s failure or delay to enforce any of
      Landlord’s rights.

    

    If
      Tenant
      defaults under the Lease, Landlord can proceed immediately against Guarantor
      (or
      any of them) or Tenant, or both, or Landlord can enforce against Guarantor
      (or
      any of them) or Tenant, or both, any rights that Landlord has under the Lease,
      or pursuant to Applicable Laws whether or not enforceable against Tenant, and
      notwithstanding any defense that may exist in favor of Tenant. If the Lease
      terminates, Landlord can enforce its rights against Guarantor (or any of them)
      without giving previous notice to Tenant or Guarantor, or without making any
      demand on either or any of them.

    

    Guarantor
      waives the right to require Landlord to (a) proceed against Tenant or any other
      guarantor or obligor; (b) proceed against or exhaust any security that Landlord
      holds from Tenant; or (c) pursue any other remedy available at law or in equity.
      Guarantor hereby expressly waives all presentments, demands for performance,
      notices of nonperformance, protests, notices of protest, notices of dishonor,
      and notices of acceptance of this Guaranty, and waives all notices of the
      existence, creation, or incurring of new or additional obligations.

    

    If
      Landlord disposes of Landlord’s interest in the Lease, “Landlord,” as used in
      this Guaranty, shall mean Landlord’s successors and assigns.

    

    If
      Landlord is required to enforce Guarantor’s obligations by legal proceedings,
      Guarantor shall pay to Landlord all costs incurred, including, without
      limitation, reasonable attorneys’ fees and costs of suit.

    

    Guarantor’s
      obligations under this Guaranty shall be binding on Guarantor’s heirs,
      executors, and legal representatives.

    

    DATED
      this
      the
      22nd 
      day of
December
      ,
      2006
.

    

    

    GUARANTOR:

     

    
      

      
        	
                By:

              	 	 
	 	
                Joseph
                  M. Cummins, Individual

              	 

      

       

      
        
          
          

        

        
          G-1

          
            

          

        

        
          
          

        

      

    

    EXHIBIT
      “H”

    

    SIGN
      CRITERIA - Western Business Park, AMARILLO, TEXAS

    

    
      	A.	
              General
                Requirements:

            

    

    

    
      	 	
              1.

            	
              It
                is intended that signs for the office/warehouse space in the Western
                Business Park all have a sense of continuity, and in keeping therewith,
                the Landlord shall maintain complete control of all tenant
                signs.

            

    

    

    
      	 	
              2.

            	
              The
                wording of the signs shall be limited to office/warehouse name
                only.

            

    

    

    
      	 	
              3.

            	
              The
                use of symbols or logo (if directly related to the store name) will
                be
                permitted, provided the size and construction conforms exactly to
                the
                requirements specified for signs.

            

    

    

    
      	 	
              4.

            	
              Tenants
                are allowed one sign only, except tenants with frontage lengths in
                excess
                of 60 ft. are allowed two signs. 

            

    

    

    
      	 	
              5.

            	
              Tenants
                shall keep their signs insured, in good conditions and in working
                order at
                all times. Any damage to signs shall be repaired within five days
                or the
                Landlord may at its option repair the sign at the tenant’s
                expense.

            

    

    

    
      	B.	
              Sign
                construction And Design:

            

    

    

    
      	 	
              1.

            	
              Signs
                are to consist up to 16” in width. A single row of letters must be a
                minimum of 12" in height. A double row of letters must be a minimum
                of 5"
                in height. Maximum length of sign can be up to 75% of
                frontage.

            

    

    

    
      	 	
              2.

            	
              Letters
                faces shall be 3/16" or thicker plexiglass secured to letter body
                with
                3/4" plastic or metal trim molding. Molded plexiglass or approved
                fire
                resistant plastic letters may be
                submitted.

            

    

    

    
      	 	
              3.

            	
              Sizes
                and locations of signs must conform with those shown on a attached
                drawing.

            

    

    

    
      	 	
              4.

            	
              Exposed
                light sources are not permitted.

            

    

    

    
      	 	
              5.

            	
              All
                sign leads, mount brackets, etc. are to be located behind the signs.
                Only
                the signs themselves are to be visible from the front of the
                building.

            

    

    

    
      	 	
              6.

            	
              Tenants
                are to be responsible for the adequate mounting and stability of
                the sign
                and for maintaining the integrity of the building at all
                penetrations.

            

    

    

    
      	 	
              7.

            	
              Facade
                sign letters shall be mounted on a securely anchored raceway and
                shall be
                mounted on canopy fascia panels, centered vertically in fascia space.
                All
                screws, bolts, spaces, and other fastening devices shall be of non-ferrous
                materials. The raceway shall be painted a color that matches the
                existing
                fascia.

            

    

    

    
      	C.	
              Submittals:

            

    

    

    
      	
            	1.	
              Office/Warehouse
                Drawings are to be submitted to the Landlord and written approval
                must be
                obtained before signs are fabricated or installed. Submit
                two copies of drawings showing elevation, copy, letter style, colors,
                sizes and locations; and details of materials, construction and methods
                of
                attachment, Send drawings for approval to: 4178 BUSINESS PARK DRIVE,
                AMARILLO, TEXAS 79110

            

    

    

    
      	 	
              2.

            	
              Except
                as hereinafter expressly provided, Tenant shall not, without Landlord’s
                prior written consent (a) make any changes to the office/warehouse
                front
                or (b) install any exterior lighting, decorations, painting, awning,
                canopies or the like or (c) erect or install any signs, window or
                door
                lettering, placards, decorations or advertising media of any type
                which
                can be viewed from the exterior of the Demised Premises, excepting
                only
                dignified displays of customary type for its display windows. All
                signs,
                lettering, placards, decorations and advertising media shall confirm
                in
                all respects to the sign criteria established by Western Business
                Park
                from time to time in the exercise of its sole discretion, and shall
                be
                subject to the prior written approval of Landlord as to construction,
                method of attachment, size, shape height lighting, color and general
                appearance. All signs shall be kept in good condition and in proper
                operating order at all times and shall be removed by Tenant upon
                the
                expiration or termination of the Lease. No portable and/or trailer
                signs
                are allowed in the Business
                Park.

            

    

    
      	 	
              3.

            	
              Tenant
                shall, within ninety
                (90) days after
                opening for business, install and thereafter continuously maintain
                a facia
                according to the provisions as outlined
                above.

            

    

     

    
      
        
        

      

      
        H-1EXHIBIT
      10.12

     

    Dr.
      Joseph Cummins

    Chief
      Executive Officer

    Amarillo
      Biosciences, Inc.

    4134
      Business Park Drive

    Amarillo,
      TX 79110-4225

    Phone:
      806-376-1741

    Fax:
      806-376-9301

     

    RE: Private
      Placement of Securities of
      Amarillo
      Biosciences, Inc. 

    (ENGAGEMENT
      LETTER)

    

    Dear
      Dr.
      Cummins:
      

     

    This
      letter (the “Engagement Letter” or the “Agreement”) confirms our understanding
      that Amarillo Biosciences, Inc. (AMAR) (together with its affiliates and
      subsidiaries, if any, "AMAR" or the "Company") has engaged MidSouth Capital
      Markets Group, Inc. ( the “Agent") to act, on a non-exclusive basis, as a
      placement agent ("Placement Agent") of the Company in connection with a best
      efforts private placement offering of the Company's Preferred or Common Stock
      (the "Placement" or “Offering”). This letter will confirm our acceptance and set
      forth the terms of the engagement agreed to between Agent and the Company.
      Placement Agent represents and agrees that in presenting the Company to
      potential investors, Placement Agent will use only the Information, information
      available from generally recognized public sources, and such
      other written documents or disclosures as may pre-approved by the Company
      in writing.

     

    1.
      Information. In connection with the Placement Agent’s activities hereunder, the
      Company will furnish Agent with all material and information regarding the
      business and financial condition of the Company (the "Information"). The Company
      represents and warrants that all Information, including but not limited to
      the
      Company’s financial statements, will be complete and correct in all material
      respects and will not contain any untrue statement of a material fact or omit
      to
      state a material fact necessary in order to make the statements therein not
      misleading. The Company recognizes and confirms that the Placement Agent: (i)
      will use and rely primarily on the Information and on information available
      from
      generally recognized public sources in performing the services contemplated
      by
      this letter without having independently verified the same; (ii) is authorized
      as the Company's financial advisor and placement agent to transmit to any
      prospective investor a copy or copies, forms of purchase agreements and any
      other legal documentation supplied to the Agent for transmission to prospective
      investors by or on behalf of the Company or by the Company's CEO or CFO and
      those officers, representatives or agents specifically identified by the
      Company’s CEO or CFO in writing, in connection with the performance of the
      Placement Agent’s services hereunder or any transaction contemplated hereby;
      (iii) the Placement Agent does not assume responsibility for the accuracy or
      completeness of the Information and such other information except as otherwise
      required by law; (iv) will not make an appraisal of any assets of the Company;
      and (v) retains the right to continue to perform due diligence during the course
      of the engagement. The Placement Agent agrees to keep the Information (that
      is
      non-public and intended by the Company to be kept confidential) confidential
      and
      will not make use thereof, except in connection with services hereunder for
      the
      Company, unless: (i) disclosure is required by law or requested by any
      government, regulatory or self-regulatory agency or body in which event the
      Agent will provide the Company with reasonable advance notice of such proposed
      disclosure; (ii) any Information is or becomes lawfully available to the public
      in the same form and format as provided to the Placement Agent; or (iii) any
      Information was or becomes generally available to the Placement Agent on a
      non-confidential basis from a source other than the Company or any of its
      representatives.

    

    2.
      Fees
      and Compensation. As compensation for services rendered and to be rendered
      hereunder by Agent, the Company agrees to pay Agent as follows:

    

    An
      amount
      in cash equal to:

     

    
      
        
        

      

      
        Page
          1

        
          

        

      

      
        
        

      

    

     

    a)
      Eight
      percent (8%) of the principal amount Sold to any investors Identified or
      Introduced by Agent, with all such sums payable at the time of each closing
      (a
“Closing”) of the Placement ("Placement Fee"); “Sold” shall include the value of
      any debt or other consideration agreed to be paid by any investor for any
      securities issued or transferred pursuant to the Offering. Sold shall exclude
      convertible preferred stock dividends or interest paid with stock. Identified
      or
      Introduced includes direct and indirect introductions by the Agent or its agents
      and representations including, without limitation, where a party introduced
      to
      the Company introduces another party to the Company who then purchases the
      securities sold pursuant to the Offering or introduces another investor who
      purchases securities in the Offering, and so on. For greater clarity, in the
      event of a dispute as to whether the Agent Identified or Introduced an investor
      to the Company in connection with the Offering, the following question shall
      be
      answered: But for the acts of the Agent, would the sale of the securities in
      the
      Offering have taken place? If the answer to that question is “No”, then the
      Agent shall be deemed to have Identified or Introduced that purchaser for
      purposes of earning the Placement Fee. The preceding test is not the exclusive
      test for determining whether the Placement Fee is earned by the Agent but is
      only an example.

     

    b)
      At
      each
      Closing, the Company will issue to Agent a warrant (the “Warrant”) to purchase
      shares of the Company's Common Stock equal to Eight percent (8%) of the number
      of common shares ("Shares") to be issued on an as converted basis in the
      Placement. Such Warrant will be issued pursuant to a Warrant Agreement to be
      signed by Agent and the Company, which agreement shall provide, among other
      things, that the Warrant shall be exercisable at an exercise price equal to
      $.30
      per share., shall expire five (5 ) years from the date of issuance, include
      registration rights at the time that all shares issued in this Placement are
      registered, and provisions for cashless exercise and such other terms as are
      normal and customary for warrants of this type. The obligation of the Company
      to
      issue the Warrant is agreed to herein and is not dependent or contingent of
      the
      negotiation, execution and delivery of a Warrant Agreement.

     

    c)
      The
      Company will reimburse the Agent in a timely manner for reasonable expenses
      relating to the Placement, including road show expenses, travel, legal and
      other
      related expenses up to $5,000.00. Company shall make such reimbursements
      promptly to Agent.

    

    d)
      Notwithstanding any termination of this Engagement Letter pursuant to the terms
      hereof or otherwise, the obligation to pay the Fees and Compensation described
      in Section 2 shall survive any termination or expiration of the Agreement.
      It is
      expressly understood and agreed by the parties hereto that any private financing
      of equity or debt or other capital raising activity of the Company within twenty
      four (24) months of the termination or expiration of the Agreement, with any
      investors or lenders to whom the Company was Identified or Introduced by the
      Agent while the Agreement was in effect and disclosed to the Company in writing
      (such list to be communicated to the Company each time one new Investor has
      been
      contacted), shall result in such fees and compensation due and payable by the
      Company to Agent under the same terms of Section 2 above. Written Company
      approval is required for Placement Agent to contact more than one investor
      or
      lender. Any investors or lenders previously contacted by other Finders or Agents
      of the Company are excluded from the provisions of this agreement and the
      Company has provided a list of such investors or lenders below in the heading,
      Attachment
      A (Previously Contacted Investors).
      Upon
      completion of the Offering, any future renegotiation, restructuring, revision
      or
      other amendment of such Offering by and between the Company and the investors
      in
      such Offering which results in the receipt of any net new funds or commitment
      with respect thereto by the Company from such investor(s) within twenty four
      (24) months of the completion of the Offering shall be deemed to be a new
      financing and shall result in additional fees and compensation due and payable
      by the Company to Agent under the terms of Section 2 above.

     

    3.
      Certain Placement Procedures. The Company and the Placement Agent each
      represents to the other that it has not taken, and the Company and the Placement
      Agent each agrees with the other that it will not take any action, directly
      or
      indirectly, so as to cause the Placement to fail to be entitled to rely upon
      the
      exemption from registration afforded by Section 4(2) of the Securities Act
      of
      1933, as amended (the "Act"), or other appropriate exemption including, without
      limitation, exemption under Sections 4(2), 4(6) or 3(b) of the Act. In effecting
      the Placement, the Company and the Placement Agent each agrees to comply in
      all
      material respects with applicable provisions of the Act and any regulations
      there under and any applicable state laws and requirements. The Company agrees
      that any representations and warranties made by it to any investor in the
      Placement shall be deemed also to be made to the Placement Agent for its
      benefit. The Company agrees that it shall cause any opinion of its counsel
      delivered to any investors in the Placement also to be addressed and delivered
      to the Placement Agent for its benefit, or to cause such counsel to deliver
      to
      the Placement Agent a letter authorizing it to rely upon such opinion.

    

    4.
      Indemnification. The Company agrees to indemnify Placement Agent and related
      persons in accordance with the following: The provisions of which are
      incorporated herein in their entirety. In consideration of your agreement to
      act
      on our behalf in connection with such matters, we agree to indemnify and hold
      harmless you and your affiliates and you and their respective officers,
      directors, employees and agents and each other person, if any, controlling
      you
      or any of your affiliates (you and each such other person being an "Indemnified
      Person") from and against any losses, claims, damages or liabilities related
      to,
      arising out of or in connection with the engagement (the "Engagement") under
      the
      Engagement Letter, and will reimburse each Indemnified Person for all expenses
      (including reasonable fees and expenses of counsel) as they are incurred in
      connection with investigating, preparing, pursuing or defending any action,
      claim, suit, investigation or proceeding related to, arising out of or in
      connection with the Engagement, whether or not pending or threatened and whether
      or not any Indemnified Person is a party. We will not, however, be responsible
      for any losses, claims, damages or liabilities (or expenses relating thereto)
      that are finally judicially determined to have resulted from the bad faith
      or
      gross negligence of any Indemnified Person. We also agree that no Indemnified
      Person shall have any liability (whether direct or indirect, in contract or
      tort
      or otherwise) to us for or in connection with the Engagement except for any
      such
      liability for losses, claims, damages or liabilities incurred by us that are
      finally judicially determined to have resulted from the bad faith or gross
      negligence of such Indemnified Person.

     

    
      
        
        

      

      
        Page
          2

        
          

        

      

      
        
        

      

    

     

    We
      will
      not, without your prior written consent, settle, compromise, consent to the
      entry of any judgment in or otherwise seek to terminate any action, claim,
      suit
      or proceeding in respect of which indemnification may be sought hereunder
      (whether or not any Indemnified Person is a party thereto) unless such
      settlement, compromise, consent or termination includes a release of each
      Indemnified Person from any liabilities without payment by such person arising
      out of such action, claim, suit or proceeding. No Indemnified Person seeking
      indemnification, reimbursement or contribution under this agreement will,
      without our prior written consent, settle, compromise, consent to the entry
      of
      any judgment in or otherwise seek to terminate any action, claim, suit,
      investigation or proceeding referred to in the preceding paragraph.

     

    If
      the
      indemnification provided for in the paragraph 4 of this Engagement Letter is
      judicially determined to be unavailable (other than in accordance with the
      third
      sentence of the first paragraph hereof of paragraph 4) to an Indemnified person
      in respect of any losses, claims, damages or liabilities referred to herein,
      then, in lieu of indemnifying such Indemnified Person hereunder, we shall
      contribute to the amount paid or payable by such Indemnified Person as a result
      of such losses, claims, damages or liabilities (and expense relating thereto)
      (i) in such proportion as is appropriate to reflect the relative benefits to
      you, on the one hand, and us, on the other hand, of the Engagement or (ii)
      if
      the allocation provided by clause (i) above is not available, in such proportion
      as is appropriate to reflect not only the relative benefits referred to in
      such
      clause (i) but also the relative fault of each of you and us, as well as any
      other relevant equitable considerations; provided, however, in no event shall
      your aggregate contribution to the amount paid or payable exceed the aggregate
      amount of fees actually received by you under the Engagement Letter. For the
      purposes of this agreement, the relative benefits to us and you of the
      Engagement shall be deemed to be in the same proportion as (a) the total value
      paid or contemplated to be paid or received or contemplated to be received
      by us
      or our shareholders, as the case may be, in the transaction or transactions
      that
      are the subject of, whether or not any such transaction is consummated, bears
      to
      (b) the fees paid to you in connection with the Placement.

    

    5.
      Termination; Survival of Provisions. This Agreement may be terminated by the
      Placement Agent or the Company at any time upon thirty (30) days prior written
      notice to the other party, provided, however, that: (a) any termination or
      completion of the Placement Agents engagement hereunder shall not affect the
      Company's obligation to indemnify Agent as provided in the indemnification
      section referred to above and (b) any termination by the Company of Agent's
      engagement hereunder shall not affect the Company's obligation to pay fees
      to
      the extent provided for in Section 2 herein; and (c) any termination by
      Placement Agent of Agents engagement hereunder shall not affect the Company's
      obligation to pay fees and reimburse the expenses accruing prior to such
      termination to the extent provided for herein. All such fees and reimbursements
      due the Placement Agent, shall be paid to the Placement Agent on or before
      the
      Termination Date (in the event such fees and reimbursements are earned or owed
      as of the Termination Date) or upon the closing of the Placement or any
      applicable portion thereof (in the event such fees are due pursuant to the
      terms
      of Section 2 hereof).

    

    6.
      Governing Law and Forum; Amendment; Headings; Plurals and Pronouns.

    

    a)
      This
      Agreement and all controversies arising from and relating to performance under
      this agreement shall be governed by and construed in accordance with the laws
      of
      the State of Georgia, without giving effect to such state's rules concerning
      conflicts of laws. This Agreement may not be modified or amended except in
      writing duly executed by the parties hereto. Each Party agrees that all legal
      proceedings concerning the interpretations, enforcement, and defense of the
      transactions contemplated by this agreement (whether brought against a party
      hereto or its respective affiliates, directors, officers, shareholders,
      employees, or agents) shall be commenced in the state and federal courts sitting
      in Fulton County, Georgia.

    

    b)
      The
      section headings in this Agreement have been inserted as a matter of convenience
      of reference and are not part of this Agreement.

    

    c)
      Whenever the context may require, any pronoun used herein shall include the
      corresponding masculine, feminine or neuter forms. The singular form of nouns,
      pronouns and verbs shall include the plural and vice versa.

     

    
      
        
        

      

      
        Page
          3

        
          

        

      

      
        
        

      

    

     

    7.
      Nondisclosure of Confidential Information. Placement Agent and the Company
      mutually agree that they will not disclose any confidential information received
      from the other party to others except with the written permission of the other
      party or as such disclosure may be required by law. Placement Agent has been
      retained under this agreement as an independent contractor with duties owed
      solely to the Company. The advice, written or oral, rendered by Agent pursuant
      to this Agreement is intended solely for the benefit and use of the Company
      in
      considering the matters to which this Agreement relates, and the Company agrees
      that such advice may not be relied upon by any other person, used for any other
      purpose, reproduced, disseminated, or referred to at any time, in any manner
      or
      for any purpose. Neither party shall make any public references to the other
      party, without the prior written consent of said party, which consent shall
      not
      be unreasonably withheld.

    

    8.
      Successors and Assigns. The benefits of this Agreement shall inure to the
      parties hereto, their respective successors and assigns and to the indemnified
      parties hereunder and their respective successors and assigns, and the
      obligations and liabilities assumed in this Agreement shall be binding upon
      the
      parties hereto and their respective successors and assigns. Notwithstanding
      anything contained herein to the contrary, neither the Placement Agent nor
      the
      Company shall assign to an unaffiliated third party any of its obligations
      hereunder.

     

    9.
      Press
      Announcements. The Company agrees that the Placement Agent shall, upon a
      successful transaction, have the right to advertisements in financial and other
      newspapers and journals at its own expense describing its services to the
      Company hereunder, provided that Placement Agent shall submit a copy of any
      such
      advertisement to the Company and shall have received prior written approval
      from
      the Company for its approval by the CEO or CFO, such approval shall not to
      be
      unreasonably withheld.

    

    10. Counterparts.
      For the convenience of the parties, this Agreement may be executed in any number
      of counterparts, each of which shall be, and shall be deemed to be, an original
      instrument, but all of which taken together shall constitute one and the same
      Agreement.

    

    This
      Engagement Letter between the parties shall supersede any and all prior
      agreements whether verbal or written. If the forgoing correctly reflects the
      understandings between Company and Agent, please sign this Letter, whereupon
      the
      Letter shall constitute a binding contract.

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              MidSouth
                Capital Markets Group, Inc.

            
	 	 
	 	 
	 	
              By:

            	
                 /s/
                Tim Moody
                
                

              

            
	 	 
	 	
              Timothy
                C. Moody, President

            
	 	 
	 	 
	
              ACCEPTED
                AND AGREED TO: as of the date hereof

            	 
	 	 
	
              Amarillo
                Biosciences, Inc.

            	 
	 	 
	 	 
	
              By:

            	
                 /s/
                Joseph M. Cummins

            	 	 
	 	
              Dr.
                Joseph Cummins, Chief Executive Officer

            	 	 
	 	 
	 	 
	
              September
                25, 2007

            	 

    

     

    
      
        
        

      

      
        Page
          4

        
          

        

      

      
        
        

      

    

    

    Attachment
      A (Previously Contacted Investors)

    

    Platinum
      Partners

    Chrisitis
      Healthcare

    Mountain
      Capital

    La
      Joya
      Cove

    Tejas
      Holdings

    CCCM
      Group

    Stone
      Investment Trust

    A
      Street
      Capital

    Fusion
      Capital

    Platinum
      Partners

    Trinity
      Financing Investments

    Richard
      Cohen

    Golden
      Gate Investors

    La
      Joya
      Cove Investors

    Dutchess
      Advisors

    Utek,
      Inc.

    Scarborough
      Capital

    Cornell
      Capital

    Century
      Management

    Amarillo
      Bioscience, Inc. shareholders of record

    

    Accipiter
      Capital Management, LLC

    Alexandra
      Investment Management, LLC

    Baker
      Bros

    Balyasny

    Bluegrass
      Growth Fund

    Bristol
      Capital LP

    Bushido
      Capital

    Centrecourt
      Asset Management

    Corsair
      Capital Partners, L.P.

    Cranshire
      Capital

    Crestview
      Captial

    Efficacy
      Capital

    Enable
      Capital Management

    Endeavor
      Asset

    EndPoint
      Merchant Group, Inc.

    Fort
      Mason Capital

    Fusion
      Capital Partners, LLC

    Global
      Capital Advisors

    Great
      Point Partners

    Gryphon
      Capital Management, LLC

    Heights
      Capital Management Inc.

    Hollis
      Capital Management

    Hudson
      Bay Overseas Fund Ltd.

    Investment
      Strategies Fund

    Iroquois

    JGB
      Capital

    Lehman
      Brothers

    LH
      Financial Services Corp.

    Magentar
      Capital LLC

    Merlin
      Biomed Group

    Midsummer
      Capital

    MPM
      Capital

    N.I.R.
      Group LLC

    NorthSound
      Capital

    Orbimed
      Advisors LLC

    Paragon

     

    
      
        
        

      

      
        Page
          5

        
          

        

      

      
        
        

      

    

     

    Paramount
      Capital Asset Management, Inc.

    Pequot
      Capital

    Perceptive
      Life Sciences Fund LP

    Perseus
      LLC

    Promed
      Asset Management

    Promethean

    Radius
      Ventures

    RAM
      Capital

    Renaissance
      Technology 

    RG
      Capital Management, LP

    Rockhill
      Funds

    Sandell
      Asset Management

    Satellite
      Capital

    Schottenfeld

    SCO
      Financial Group

    Silverback
      Asset Management

    Special
      Situations Funds

    Stark
      Investments

    Stonestreet
      LP

    Sunrise
      Securities Corp.

    Susquehanna
      International Group

    Tail
      Wind
      Fund

    Tang
      Capital

    The
      Visium Funds

    UBS
      O'Conner

    Vision
      Capital

    Xmark
      Funds

    

    AMAR
      may
      add additional Investors or Lenders that have not been already contacted by
      the
      Agent to this list by written notification to Agent.

    

    
      
        
        

      

      
        Page
          6

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