Document:

PROTALEX,
INC.

    

    Stock
Option Agreement

    (this “Agreement”)

    Dated:
May ___, 2010

    (“Grant Date”)

    

    Protalex,
Inc., a Delaware corporation (the “Company”), hereby grants to
[NAME OF OPTIONEE] (the “Optionee”), a stock option to
purchase a total of [       ] shares of the
Company's Common Stock, par value $.00001 per share (the “Common Stock”), at a price of
$0.20 per share (the “Exercise
Price”).

    

    
      	
               
      

            	
              1.

            	
              Term.

            

    

    

    This option shall expire ten (10) years
from the date hereof (the “Termination
Date”).

    

    
      	
               
      

            	
              2.

            	
              Characterization of
      Options.

            

    

    

    The option granted pursuant to this
Agreement is intended to constitute a non-qualified option, subject to §83 of
the Internal Revenue Code of 1986, as amended (the “Code”).

    

    3.           Exercise of
Options.

    

    (a)           This
option shall vest and become exercisable on May __ 2013, subject to earlier
vesting and exercisability as follows:

    

    
      	
              Milestone
      1:  

            	
              Upon
      the commencement of the Company’s Rheumatoid Arthritis trial in South
      Africa (the “RA
      Trial”), this option shall vest and become exercisable with respect
      to the purchase of up to 20% of the total shares of Common Stock granted
      under this Agreement;

            

    

    
      	
              Milestone
      2:  

            	
              Upon
      demonstrated efficacy of the RA Trial, this option shall vest and become
      exercisable with respect to the purchase of up to 50% of the total shares
      of Common Stock granted under this Agreement, including the shares under
      Milestone 1 above; and

            

    

    
      	
              Milestone
      3:  

            	
              Upon
      the execution of either a licensing, strategic or financing agreement with
      a strategic or financial third party which yields minimum gross proceeds
      to the Company of $7.5 million, this option shall vest and become
      exercisable with respect to the purchase of up to 100% of the total shares
      of Common Stock granted under this Agreement, including the shares under
      Milestones 1 and 2 above.

            

    

    

    (b)           To
the extent vested prior to the Termination Date, this option shall be
exercisable by written notice of such exercise, in the form prescribed by the
Board of Directors of the Company (the “Board”), to the Secretary or
Treasurer of the Company at its principal office.  The notice shall
specify the number of shares of Common Stock for which the option is being
exercised (which number, if less than all of the shares then subject to
exercise, shall be 50 or a multiple thereof) and shall be accompanied by payment
(i) in cash or by check in the amount equal to the Exercise Price multiplied by
the number of shares to be purchased upon exercise, or (ii) in such other manner
as the Board shall deem acceptable.  No shares shall be delivered upon
exercise of any option until all laws, rules and regulations which the Board may
deem applicable have been complied with.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (c)           The
Optionee shall not be considered a record holder of the Common Stock issuable
pursuant to this Agreement for any purpose until the date on which he or she is
actually recorded as the holder of such Common Stock in the records of the
Company.

    

    (d)           To
the extent vested, prior to the Termination Date, this option shall be
exercisable only so long as the Optionee shall continue to hold the same or
similar position with the Company as is currently held by the Optionee, or such
other position as may have been directed by the Board and within the ninety (90)
day period after the date of termination of such relationship, to the extent
vested on the such date of termination; provided, however, such termination was
without cause.

    

    
      (e)           Notwithstanding
the provision of Section 3(d) above:

    

    

    (i) In
the event the Optionee is unable to continue to hold the same or similar
position with the Company as is currently held by the Optionee, or such other
position as may have been directed by the Board, due to his or her total and
permanent disability (as defined in §105(d)(4) of the Code), this option may be
exercised, to the extent vested on the date of such disability, within the
ninety (90) day period from the date of such disability;

    

    (ii) In
the event of death of the Optionee, this option may be exercised, to the extent
vested on the date of death, at any time within twelve (12) months following
such date of death by the Optionee's estate or by a person who acquired the
right to exercise this option by bequest or inheritance; provided that at the
time of his or her death the Optionee held the same or similar position with the
Company as is currently held by the Optionee, or such other position as may have
been directed by the Board; and

    

    (iii) In
the event the Optionee is terminated from the Company for cause, this option may
be exercised, to the extent vested on the date of such termination, within the
thirty (30) day period after the date of such termination.

    

    Notwithstanding
the provisions of this Section (e), in no event shall this option be exercisable
after the Termination Date.

    

    4.           Anti-Dilution
Provisions.

    

    (a)           If
there is any stock dividend, stock split, or combination of shares of Common
Stock, the number and amount of shares then subject to this option shall be
proportionately and appropriately adjusted; no change shall be made in the
aggregate purchase price to be paid for all shares subject to this option, but
the aggregate purchase price shall be allocated among all shares subject to this
option after giving effect to the adjustment.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)           If
there is any other change in the Common Stock, including recapitalization,
reorganization, sale or exchange of assets, exchange of shares, offering of
subscription rights, or a merger or consolidation in which the Company is the
surviving corporation, an adjustment, if any, shall be made in the shares then
subject to this option as the Board may deem equitable.  Failure of
the Board to provide for an adjustment pursuant to this subparagraph prior to
the effective date of any Company action referred to herein shall be conclusive
evidence that no adjustment is required in consequence of such
action.

    

    (c)           If
the Company is merged into or consolidated with any other corporation, or if it
sells all or substantially all of its assets to any other corporation, then
either (i) the Company shall cause provisions to be made for the continuance of
this option after such event, or for the substitution for this option of an
option covering the number and class of securities which the Optionee would have
been entitled to receive in such merger or consolidation by virtue of such sale
if the Optionee had been the holder of record of a number of shares of Common
Stock equal to the number of shares covered by the unexercised portion of this
option, or (ii) the Company shall give to the Optionee written notice of its
election not to cause such provision to be made and this option shall become
exercisable in full (or, at the election of the Optionee, in part) at any time
during a period of 20 days, to be designated by the Company, ending not more
than 10 days prior to the effective date of the merger, consolidation or sale,
in which case this option shall not be exercisable to any extent after the
expiration of such 20-day period.

    

    
      	
               
      

            	
              5.

            	
              Investment
      Representation; Legend on Certificates;
  Special

            

    

    Restriction
Resale.

    

    The Optionee agrees that until such
time as a registration statement under the Securities Act of 1933, as amended
(the “1933 Act”),
becomes effective with respect to the option and/or the stock, the Optionee is
taking this option and will take the stock underlying this option, for his own
account, for investment and not with a view to the resale or distribution
thereof.  The Company shall have the right to place upon the face of
any stock certificate or certificates evidencing shares issuable upon the
exercise of this option such legend as the Board may prescribe for the purpose
of preventing disposition of such shares in violation of the 1933 Act, as now or
hereafter provided.

    

    
      	
               
      

            	
              6.

            	
              Non-Transferability.

            

    

    

    This option shall not be transferable
by the Optionee other than by will or by the laws of descent or distribution,
and is exercisable during the lifetime of the Optionee only by the
Optionee.

    

    
      	
               
      

            	
              7.

            	
              Certain Rights Not
      Conferred by Option.

            

    

    

    The Optionee shall not, by virtue of
holding this option, be entitled to any rights of a stockholder in the
Company.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.

            	
              Expenses.

            

    

    

    The Company shall pay all original
issue and transfer taxes with respect to the issuance and transfer of shares of
Common Stock pursuant hereto and all other fees and expenses necessarily
incurred by the Company in connection therewith.

    

    
      	
               
      

            	
              9.

            	
              Miscellaneous.

            

    

    

    In no event shall this option be
exercisable after the Termination Date.  Nothing herein shall be
deemed to create any employment agreement or guaranty of the Optionee’s position
with the Company or limit in any way the Company's right to terminate Optionee's
position at any time.

    

    IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed by their respective duly
authorized representatives as of the date first above written.

    

    
      
        	
                PROTALEX,
      INC.

              
	 
      
	
                By:

              	
                  

              
	 
      	
                Arnold P. Kling, President

              

      

    

    

    Accepted
as of the date

     first set forth
above:

    

    __________________________________

    ________________,
Optionee

    
      
         

      

      
        4EXHIBIT
10.1

    

    SIXTH
EMPLOYMENT AGREEMENT AMENDMENT

    

    This
SIXTH AMENDMENT TO EMPLOYMENT AGREEMENT (this "Sixth Amendment"), effective as
of August 23, 2010, by and among Pharma-Bio Serv, Inc. (PBSV), a Delaware
corporation, and Pharma-Bio Serv PR, Inc., a Puerto Rico corporation, having its
principal office  at 6 Carr. 696, Dorado, Puerto Rico 00646 (the
"Company"), and Elizabeth Plaza-Rodriguez, with residence in Dorado, Puerto Rico
("Executive").

    

    WHEREAS, the Company and
Executive have entered into that certain Employment Agreement, dated as of
January 2, 2008, as such Employment Agreement may be amended, restated or
otherwise modified from time to time (the "Employment
Agreement").  Capitalized terms used but not defined herein shall have
the meaning ascribed to such terms in the Employment Agreement;

    

    WHEREAS, the Company desires
to extend Executive to serve as its Chief Executive Officer for an indefinite
amount of time to be managed as follows:

    

    NOW THEREFORE, for good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereto agree as follows:

    

    Paragraph
1(c) of the Employment Agreement is shall be modified to read as
follows:

    

    (c)           The
"Employment Term" shall mean the period commencing on the date of this Agreement
and ending (12) months from the date of this Agreement, and renewed for
successive periods of twelve (12) months thereafter unless renewal is declined
by either party no less than sixty (60) days prior to the end of any renewal
term, unless terminated earlier pursuant to Section 5 of this
Agreement.

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Sixth Amendment to Employment Agreement to be
duly executed as of the day and year first above written.

    

    
      	
              PHARMA-BIO
      SERV, INC.

            	
              EXECUTIVE:

            
	 
      	 
      
	
              /s/
      Kirk
      Michel                                             
      

            	
              /s/
      Elizabeth
      Plaza                                       
      

            
	
              Kirk
      Michel

            	
              Elizabeth
      Plaza-Rodriguez

            
	
              Chairman
      of Compensation Committee

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