Document:

Unassociated Document

    CONSULTING
      AGREEMENT

    

    

    THIS
      CONSULTING AGREEMENT
      (“Agreement”) is entered into as of the date of the last signature below between
      AMARILLO BIOSCIENCES, INC., a Texas corporation (“ABI”), and TEEL BIVINS
      (“Consultant”). 

    

    WHEREAS,
      ABI
      wishes to engage the services of Consultant and Consultant wishes to provide
      services to ABI all on the terms and conditions hereinafter set forth;

    

    THEREFORE,
      in
      consideration of these presents and for other good and valuable consideration
      the receipt and sufficiency of which are evidenced by the execution hereof,
      the
      parties hereby agree as follows: 

    

    1.  This
      Agreement shall be in force from the effective date, for a period of twelve
      (12)
      months. Consultant shall be compensated by the grant of a stock option to
      purchase 100,000 shares of common stock, evidenced by a Stock Option Agreement
      executed by the parties contemporaneously herewith.

     

    2.  Consultant
      shall render consulting services, subject to Consultant’s availability, in the
      area of animal health, especially agroterrorism, and pertaining to achieving
      recognition of ABI’s technology as a treatment or prevention of avian influenza.

     

    3.  Consultant
      acknowledges that he is a consultant and independent contractor entitled to
      reimbursement for pre-approved travel expenses incurred while conducting
      business for ABI and that he will not be entitled to fringe benefits or any
      compensation other than that hereinbefore provided and Consultant hereby agrees
      and undertakes to fully and timely pay all federal income tax withholdings,
      self-employment tax, FITA, FUCA, and any other items payable with respect to
      the
      compensation received by him from ABI.

     

    4.  This
      Consulting Agreement supercedes in its entirety any current or prior Consulting
      Agreement between ABI and Consultant.

     

    	 	 	 
	 	AMARILLO
            BIOSCIENCES, INC.  
	 
 	 
 	 
 
	Date: April
            21, 2006	By:  	/s/ Joseph
            M.
            Cummins 
	 	 	Joseph M. Cummins, President
	 	 	 
	 	 	 
	Date: April
            21, 2006	By: 	/s/ Teel Bivins
	 	
            

            Teel
              BivinsUnassociated Document

      

    

     

    Investor
      Direct Marketing Services Agreement

     

    Monday,
      June 26, 2006 

    This
      is a
      media and services agreement between Marks
      Value Partners LLC,
      a
      Califor-nia Limited Liability Company located at 9701 Wilshire Boulevard, 10th
      Floor, Beverly Hills, California 90212, and and Amarillo
      Biosciences, Inc.
      (Client), a Texas Corpora-tion , located at 4134
      Business Park Drive, Amarillo, Texas 79110.
      

     

    SCOPE
      of
      SERVICES 

    
      	1.	
              Advertorial
                Production
                -
                Marks Value Partners LLC will produce on behalf of the Client a series
                of
                “advertorials” to be placed in newspapers, magazines, and other print ,
                and or online media for the purpose of investor communications. The
                scope
                and budget of the advertising campaign will be mutually determined.
                

            

    

     

    
      	2.	
              Media
                Placement
                -
                Marks Value Partners will negotiate ad rates, and secure media placements
                on the Clients behalf. Client will be billed directly by media vendors,
                and be responsible for making timely payment. All media placements
                will be
                agreed to before-hand, by both parties. It is understood that the
                client
                wishes to budget approximately $15-20,000 per month towards the Investor
                Marketing Campaign. 

            

    

     

     

    TERM
      of
      AGREEMENT The term of this service agreement shall be four (4) months from
      the
      date of signing. 

     

    INDEMNIFICATION
      & COPYRIGHT All work in the scope of this agreement is being produced on
      behalf of the Client, as a “work for hire” and the Client will retain copyright
      all rights to such work in perpetuity. The Client bears full and exclusive
      responsibility for the content, accuracy and effect of all materials produced
      by
      Marks Value Partners LLC on behalf of the Client. The Client agrees to indemnify
      and hold harmless, Marks Value Partners LLC for any claim based upon the
      content, accuracy or effect of any materials distributed by or regarding The
      Client, whether federal, provincial, or foreign securities laws or otherwise.
      In
      no event shall Marks Value Partners LLC be liable for special, consequential,
      or
      indirect damages arriving from the provision of services herein. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    FEES:
      For
      its services, Amarillo Biosciences, Inc. will pay, Marks Value Partners LLC
      a
      one time fee of $25,000, payable upon signing of this agreement. Additionally,
      Amarillo Biosciences, Inc. will grant Marks Value Partners LLC a 3-year Warrant
      to purchase 200,000 shares stock at $2.00. The shares underlying this warrant
      will have “piggyback registration rights”, and a cashless exercise feature. The
      Warrant will expire 3 years from the date of signing of this
      agreement.

     

     

    If
      these
      terms are acceptable to you, please sign below and fax this agreement to my
      at-tention at 310-601-7110. Thank you. 

     

    Date___________
      

    

      
        	
                _________________

              	
                __________________
                  

              
	
                Joseph
                  Cummins 

              	
                Jack
                  Marks 

              
	
                Amarillo
                  Biosciences, Inc. 

              	
                Marks
                  Value Partners LLC 

              

      

    

    
       

       

    

    Payment
      can be made via Wire Transfer to: 

     

    Citibank
      

    4375
      Glencoe Avenue, 

    Marina
      Del Rey, CA 90292 

    ABA#322271724

    Swift:
      citi us 33 

    
      	
              For Credit to: Marks Value 

              Partners LLC 

            	
              (See
                page 2 of
                2)

            

    

    Account
      # 201578275Unassociated Document

    
      WARRANT
        AGREEMENT

      
 

      THIS
        WARRANT AGREEMENT
        dated as
        of June 27, 2006, is entered into between AMARILLO BIOSCIENCES, INC., a Texas
        corporation (the "Company"), and MARKS VALUE PARTNERS, LLC, a California
        limited
        liability company (“Holder”). 

      

      W
        I T N E S S E T H:

      

      WHEREAS,
        the
        Company proposes to issue to Holder warrants ("Warrants") to purchase up
        to
        200,000 shares (the "Shares") of the Voting Common Stock of the Company (the
        “Stock”); and

      

      WHEREAS,
        the
        Warrants issued pursuant to this Agreement are being issued by the Company
        to
        Holder in connection with that certain Investor Direct Marketing Service
        Agreement dated June 27, 2006, between the parties hereto;

      

      NOW,
        THEREFORE,
        in
        consideration of the premises, the agreements herein set forth and other
        good
        and valuable consideration the receipt and sufficiency of which are hereby
        acknowledged, the parties hereto agree as follows: 

      

      1. Grant.
        Holder
        is hereby granted the right to purchase, at any time from execution of this
        Warrant Agreement by both parties ("Effective Date") until 5:00 p.m., Central
        Standard Time, on June 26, 2009 (the "Warrant Exercise Term"), up to 200,000
        Shares at an initial exercise price of $2.00 per Share. The Warrants may
        be
        exercised in whole or in part, and from time to time during the term
        hereof.

      

      2. Warrant
        Certificates.
        The
        warrant certificates (“Warrant Certificates”) delivered and to be delivered
        pursuant to this Agreement shall be in the form set forth as Exhibit "A",
        attached hereto and made a part hereof. A future election to exercise the
        Warrant to purchase shares, in whole or in part, shall be completed on the
        form
        attached at page A-3 of Exhibit A, and a future assignment or transfer of
        the
        Warrant Certificate, in whole or in part, shall be completed using the form
        attached at Page A-4 of Exhibit A. 

      

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

         

      

      3. Exercise
        of Warrants.
        The
        Warrants initially are exercisable at the price set forth in Article 1, above,
        payable in cash or by certified or official bank check to the order of the
        Company, or any combination of cash or such check. Upon surrender of the
        Warrant
        Certificate with the annexed Form of Election to Purchase duly executed,
        together with payment of the exercise price for the Shares purchased, at
        the
        Company's principal offices, the registered Holder of a Warrant Certificate
        shall be entitled to receive a certificate or certificates for the Shares
        so
        purchased. In the case of a purchase of less than all the Shares purchasable
        under any Warrant Certificate, the Company shall cancel said Warrant Certificate
        upon the surrender thereof and shall execute and deliver a new Warrant
        Certificate of like tenor for the balance of the Shares purchasable
        thereunder.

      

      4. Issuance
        of Certificates.
        Upon the
        exercise of the Warrants, the issuance of certificates for the Shares shall
        be
        made forthwith without charge to the Holder thereof, except for any tax which
        may be payable in respect of the issuance thereof, and for which the Company
        shall be required, by applicable law or regulation, to withhold, and such
        certificates shall (subject to the provisions of Article 5 hereof) be issued
        in
        the name of, or in such names as may be directed by, the Holder thereof.
        The
        Company shall not be required to issue or deliver such certificates unless
        or
        until the person or persons requesting the issuance thereof shall have paid
        to
        the Company the amount of such tax.

      

      The
        Warrant Certificates and, upon exercise of the Warrants in whole or in part,
        certificates representing the Shares shall bear a legend substantially similar
        to the following: 

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

         

      

      "The
        securities represented by this certificate and the other securities issuable
        upon exercise hereof have not been registered under the Securities Act of
        1933,
        as amended (the ‘Act’), and may not be offered or sold except (i) pursuant to an
        effective registration statement under the Act, (ii) to the extent applicable,
        pursuant to Rule 144 under the Act (or any similar rule under such Act relating
        to the disposition of securities), or (iii) upon the delivery by the holder
        to
        the Company of an opinion of competent securities counsel stating that an
        exemption from registration under such Act is available." 

      

      5. Restriction
        on Transfer of Warrants. 

      

      (a) The
        Holder of a Warrant Certificate, by its acceptance thereof, covenants and
        agrees
        that the Warrants are being acquired as an investment and not with a view
        to the
        distribution thereof, and that the Warrants may not be sold, transferred,
        assigned, hypothecated or otherwise disposed of, in whole or in part, except
        upon compliance with applicable state and federal securities laws.

      

      (b) Holder
        has had an opportunity to receive and review all documents and information
        that
        it considers material to Holder’s acquisition of the Warrants and to ask
        questions of and receive satisfactory answers from the Company, or a person
        or
        persons acting on the Company’s behalf, concerning the Company and the terms and
        conditions of the purchase of the Warrants, and all such questions have been
        answered to the full satisfaction of Holder.

      

      (c) Holder
        is
        a sophisticated investor with such knowledge and experience in financial
        and
        business matters and investments in restricted securities that Holder is
        capable
        of evaluating the merits and risks of acquiring the Warrants. 

      

      (d) Holder
        is
an
        “accredited investor” as defined in Regulation D under the Securities Act of
        1933, as amended (the “Securities
        Act”).

      

      (e) Holder
        acknowledges that except as expressly stated in Article 9 of this
        Agreement, neither the Company nor any officer, director, employee, agent
        or
        representative of the Company have made any representations or warranties
        of any
        kind to Holder including representations regarding future revenues, earnings
        or
        profits of the Company, the future value of the Warrants or Shares, the future
        capitalization of the Company, the occurrence or timing of any public offering
        by the Company, the amount of future business that may be transacted by the
        Company or otherwise. Holder further understands that the Company’s success in
        achieving its goals and objectives in the future and implementing its business
        plan cannot be predicted and is subject to numerous factors not within the
        control of the Company. Holder is not acquiring the Warrants based upon
        representations, oral or written, by any person with respect to the future
        value
        of, or income from, the Warrants or Shares, or the length of time that Holder
        will be required to remain as the owner of the Warrants or Shares but rather
        upon an independent examination and judgment as to the prospects of the
        Company.

      

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

         

      

      (f) Holder
        understands that neither the Warrants nor the Shares have been registered
        under
        the Securities Act, or any other applicable state or federal securities statutes
        (together with the Securities Act, the “Acts”).
        Holder understands that the Warrants are subject to restrictions on transfer
        and
        that Holder may bear the economic risk of acquiring the Warrants for an
        indefinite period of time.

      

      (g) The
        address and federal tax number set forth herein are Holder’s true and correct
        residence or principal place of business and federal tax number. Holder has
        no
        present intention of moving Holder’s residence or principal place of business to
        any other state or jurisdiction.

      

      (h) Holder
        acknowledges that the Warrants were not offered to Holder by means of general
        solicitation, publicly disseminated advertisements or sales
        literature.

      

      (i) Holder
        understands
        that the Warrants are being offered and sold to it in reliance on specific
        provisions of federal and state securities laws and that the Company is relying
        upon the truth and accuracy of the representations, warranties, agreements,
        acknowledgements and understandings of Holder
        set
        forth herein.

      

      6. Price.
        The
        exercise price of each Warrant shall be as stated in Article 1. 

      

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

         

      

      7. Not
        Registered.
        The
        Warrants and the Shares have not been registered for purposes of public
        distribution under the Securities Act of 1933, as amended (the
        "Act").

      

      8. Certain
        Reclassifications, Merger, Consolidation, or Sale.
        In case
        the Company should propose to effect any reclassification or change in the
        outstanding shares of the Stock (other than a change in par value to no par
        value, or from no par value to par value, or as a result of a split or reverse
        split or other similar subdivision or combination), or any consolidation
        of the
        Company with, or merger of the Company into, another corporation (other than
        a
        consolidation or merger in which the Company is the surviving corporation
        and
        which does not result in any reclassifica-tion or change of the outstanding
        shares of Common Stock, except a change as a result of a subdivision or
        combination of such shares or a change in par value, as aforesaid), or a
        sale or
        conveyance to another corporation of the property of the Company as an entirety,
        the Holders shall be notified in writing of such proposed transaction at
        least
        thirty (30) days prior to the consummation thereof. Shares of Stock acquired
        by
        Holder pursuant to its exercise or partial exercise of the Warrants shall
        participate fully in such transaction, on the same basis as other issued
        and
        outstanding shares of Stock of the Company. Any Warrants not exercised prior
        to
        the consummation of any such transaction shall lapse in their entirety and
        shall
        be of no further force or effect.

      

      9. Stock
        Splits or Reverse Stock Splits.
        In case
        the Company should undergo a stock split or reverse stock split or other
        similar
        subdivision or combination, the Warrant shall remain in force during the
        Warrant
        Exercise Term, and the number of shares with respect to which the Warrants
        are
        exercisable, and the exercise price, shall be appropriately adjusted.

      

      10. Registration
        of Shares.
        If at
        any time after Holder shall have exercised some or all of the Warrants, the
        Company should determine to conduct a registered public offering of its
        securities, the Company shall notify Holder and Holder shall have the right
        to
        have its Shares registered as a part of the registration contemplated with
        regard to such public offering. Such registration of the Shares shall be
        at the
        Company’s expense. The foregoing notwithstanding, the Company shall not be
        required to include Holder’s stock in the registration, if the Company’s
        underwriters object thereto; provided further, however, that if the underwriters
        permit any executive officers, directors, or ten percent (10%) owners of
        the
        Company to register their shares pursuant to such offering, then Holder shall
        be
        entitled to register a proportionate number of its Shares pursuant to such
        offering, which proportion shall be determined by dividing the number of
        shares
        of executive officers, directors, and ten percent (10%) owners allowed to
        be
        registered, by the number of shares of the Company then issued and outstanding,
        held by such persons.

      

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

         

      

      11. Representations
        and Warranties of the Company.
        The
        Company represents and warrants to Holder as follows:

      

      (a) The
        Company is a corporation duly incorporated, validly existing and in good
        standing under the laws of the State of Texas. The Company has all requisite
        corporate power and authority to own or lease, as the case may be, its
        properties and to carry on its business as now conducted. 

      

      (b) The
        Company has the corporate power and authority to execute and deliver this
        Agreement, to perform its obligations hereunder and consummate the transactions
        contemplated hereby. The Company has taken all necessary corporate action
        to
        authorize the execution, delivery and performance of this Agreement and the
        transactions contemplated hereby.

      

      (c) This
        Agreement has been duly executed and delivered by the Company and constitutes
        a
        legal, valid and binding obligation of the Company, enforceable against the
        Company in accordance with its terms except
        as
        may be limited by bankruptcy, insolvency, reorganization or other laws of
        general application relating to or affecting the enforcement of creditors’
rights generally, and the effect of rules of law governing the availability
        of
        equitable remedies.

      

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

         

      

      12. Exchange
        and Replacement of Warrant Certificates.
        Upon
        receipt by the Company of evidence reasonably satisfactory to it of the loss,
        theft, destruction or mutilation of any Warrant Certificate, and, in case
        of
        loss, theft or destruction, of indemnity or security reasonably satisfactory
        to
        it, and reimbursement to the Company of all reasonable expenses incidental
        thereto, and upon surrender and cancellation of the Warrants, if mutilated,
        the
        Company will make and deliver a new Warrant Certificate of like tenor, in
        lieu
        thereof.

      

      13. Reservation
        of Securities.
        The
        Company shall at all times reserve and keep available out of its authorized
        shares of Stock, solely for the purpose of issuance upon the exercise of
        the
        Warrants, such number of shares of Stock as shall be issuable upon the exercise
        thereof. The Company covenants and agrees that, upon exercise of the Warrants
        and payment of the Exercise Price therefor, all shares of Stock issuable
        upon
        such exercise shall be duly and validly issued, fully paid, non-assessable
        and
        not subject to the preemptive rights of any shareholder. 

      

      14. Shareholder
        Rights.
        Nothing
        contained in this Agreement shall be construed as conferring upon the Holder
        or
        Holders the right to vote or to consent or to receive notice as a shareholder
        in
        respect of any meetings of shareholders for the election of directors or
        any
        other matters, or as having any rights whatsoever as a shareholder of the
        Company, prior to the exercise of the Warrants.

      

      15. Notices.
        All
        notices, requests, consents and other communications hereunder shall be in
        writing and shall be deemed to have been duly made when delivered, or mailed
        by
        registered or certified mail, return receipt requested: 

      

      (a) if
        to a
        registered holder of the Warrants, to the address of such Holder as show
        on the
        books of the Company; or 

       

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      (b) if
        to the
        Company, to its principal place of business or to such other address as the
        Company may designate by notice to the Holders.

       

      16. Supplements
        and Amendments.
        The
        Company and Holder may from time to time supplement or amend this Agreement
        in
        order to cure any ambiguity, to correct or supplement any provision contained
        herein which may be defective or inconsistent with any provisions herein,
        or to
        make any other provisions in regard to matters or questions arising hereunder
        which the company and Holder may deem necessary or desirable.

      

      17. Successors.
        All the
        covenants and provisions of this Agreement by or for the benefit of the Company
        and the Holders inure to the benefit of their respective successors and
        permitted assigns hereunder. Holder may assign any or all of the Warrants
        to one
        or more of its Affiliates (as hereafter defined) without the consent of the
        Company. No Warrants may be assigned to any non-Affiliates of the Holder
        without
        the Company’s prior written consent which consent will not be unreasonably
        withheld or delayed. “Affiliate” shall mean with respect to any person, any
        other person controlling, controlled by or under common control with such
        person. For purposes of this definition and this Agreement, the term “control”
(and correlative terms) means the power, whether by contract, equity ownership
        or otherwise, to direct the policies or management of a person.

      

      18. Termination.
        This
        Agreement shall terminate at the end of the Warrant Exercise Term, or upon
        such
        earlier date as all Warrants have been exercised, except that the provisions
        of
        Article 9 shall survive such termination.

      

      19. Governing
        Law.
        This
        Agreement and each Warrant Certificate issued hereunder shall be deemed to
        be a
        contract made under the laws of the State of Texas and for all purposes shall
        be
        construed in accordance with the laws of said State, and venue of any action
        relating to the Warrants or the Shares shall be in Potter County,
        Texas.

      

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

         

      

      20. Benefits
        of this Agreement.
        Nothing
        in this Agreement shall be construed to give to any person or corporation
        other
        than the Company and Holder and any legal or equitable right, remedy or claim
        under this Agreement; and this Agreement shall be for the sole and exclusive
        benefit of the Company and Holder and any other Holder or Holders of the
        Warrant
        Certificates, Warrants or the Shares.

      

      21. Market
        Stand-Off.
        In
        connection with any underwritten public offering by the Company of its equity
        securities pursuant to an effective registration statement filed under the
        Securities Act, Holder shall not, without the prior written consent of the
        Company’s managing underwriter, (i) lend, offer, pledge, sell, contract to sell,
        sell any option or contract to purchase, purchase any option or contract
        to
        sell, grant any option, right or warrant to purchase, or otherwise transfer
        or
        dispose of, directly or indirectly, any shares of Common Stock or any securities
        convertible into or exercisable or exchangeable for Common Stock (whether
        such
        shares or any such securities are then owned by Holder or are thereafter
        acquired), or (ii) enter into any swap or other arrangement that transfers
        to
        another, in whole or in part, any of the economic consequences of ownership
        of
        the Common Stock, whether any such transaction described in clause (i) or
        (ii)
        above is to be settled by delivery of Common Stock or such other securities,
        in
        cash or otherwise. Such restriction (the “Market
        Stand-Off”)
        shall
        be in effect for such period of time following the date of the final prospectus
        for the offering as may be requested by the Company or such underwriters.
        In no
        event, however, shall such period exceed one hundred and eighty (180) days.
        In
        the event of the declaration of a stock dividend, a spin-off, a stock split,
        an
        adjustment in conversion ratio, a recapitalization or a similar transaction
        affecting the Company’s outstanding securities without receipt of consideration,
        any new, substituted or additional securities that are by reason of such
        transaction distributed with respect to any shares subject to the Market
        Stand-Off, or into which such shares thereby become convertible, shall
        immediately be subject to the Market Stand-Off. In order to enforce the Market
        Stand-Off, the Company may impose stop-transfer instructions with respect
        to the
        Shares until the end of the applicable stand-off period. The Company’s
        underwriters shall be beneficiaries of the agreement set forth in this Article
        19. This Article 19 shall not apply to shares registered in a public offering
        under the Securities Act. Holder shall be subject to this Article 19 only
        if the
        directors, officers and 10% shareholders of the Company are subject to
        arrangements which are no more favorable than those to which Holder will
        be
        subject, and in the event of such more favorable arrangements, Holder will
        agree
        to be likewise bound by the terms thereof.

      

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

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

       

      
        
          	 	 
	 	 
	
                  COMPANY:

                	HOLDER:
	 	 	 	 
	
                  AMARILLO
                    BIOSCIENCES, INC.

                	MARKS
                  VALUE PARTNERS, LLC
	 	 	 	 
	 	 	 	 
	
                  By: 

                	
                  /s/
                    Joseph M. Cummins 

                	
                  By:

                	
                   

                
	
                   

                	
                  
                    

                    Joseph M. Cummins, President

                	 	
                  
                    

                    Jack Marks, Member and Manager

                
	 	 	 	 
	 	 	 	
                  Federal
                    Tax I.D. No. of LLC:_______________

                
	 	 	 	 
	 	 	 	 
	
                   

                	
                   

                	 	
                  Address:

                
	 	 	 	   

	 	 	 	    

	 	 	 	         

	 	 	 	 
	 	 	 	 

      

      
         

        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      EXHIBIT
        "A"

       

      

      THE
        WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
        UPON
        EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
        AS
        AMENDED (THE "ACT"), AND MAY NOT BE OFFERED OR SOLD EXCEPT (i) PURSUANT TO
        AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (ii) TO THE EXTENT APPLICABLE,
        PURSUANT TO RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING
        TO THE DISPOSITION OF RESTRICTED SECURITIES), OR (iii) UPON THE DELIVERY
        BY THE
        HOLDER TO THE COMPANY OF AN OPINION OF COMPETENT SECURITIES COUNSEL STATING
        THAT
        AN EXEMP-TION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

      
 

      EXERCISABLE
        ON OR BEFORE 5:00 P.M., CENTRAL STANDARD TIME, JUNE
        26,
        2009.

      

       

      200,000
        Warrants

      

       

      WARRANT
        CERTIFICATE

       

      This
        Warrant Certificate certifies that MARKS VALUE PARTNERS, LLC (“Holder”) or
        registered assigns, is the registered holder of 200,000 Warrants to purchase,
        at
        any time from June 27, 2006, until 5:00 p.m., Central Standard Time, on June
        26,
        2009 ("Expiration Date"), up to 200,000 shares ("Shares") of fully-paid and
        non-assessable Voting Common Stock of AMARILLO BIOSCIENCES, INC., a Texas
        corporation (the "Company"), at the exercise price (the "Exercise Price")
        of
        $2.00 per Share upon surrender of this Warrant Certificate and payment of
        the
        Exercise Price at an office or agency of the Company, but subject to the
        conditions set forth herein and in the Warrant Agreement dated as of June
        27,
        2006 between the Company and Holder (the "Warrant Agreement"). Payment of
        the
        Exercise Price may be made in cash, by certified or official bank check in
        funds
        payable to the order of the Company, by application of principal and accrued
        interest owing to Holder to the extent permitted by the Warrant Agreement,
        or
        any combination of cash, such check or application of indebtedness.

       

      No
        Warrant may be exercised after 5:00 p.m., Central Standard Time, on the
        Expiration Date, at which time all Warrants evidenced hereby, unless exercised
        prior thereto, shall become void.

       

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      The
        Warrants evidenced by this Warrant Certificate are part of a duly authorized
        issue of Warrants issued pursuant to the Warrant Agreement which Warrant
        Agreement is hereby incorporated by reference in and made a part of this
        instrument and is hereby referred to for a description of the rights, limitation
        of rights, obligations, duties and immunities thereunder of the Company and
        the
        holders (the words "holders" or "holder" meaning the registered holders or
        registered holder) of the Warrants.

       

      Upon
        due
        presentment for registration of transfer of this Warrant Certificate at an
        office or agency of the Company, a new Warrant Certificate or Warrant
        Certificates of like tenor and evidencing in the aggregate a like number
        of
        Warrants shall be issued to the transferee(s) in exchange for this Warrant
        Certificate, subject to the limitations provided herein and in the Warrant
        Agreement, without any charge except for any tax, or other governmental charge
        imposed in connection therewith.

       

      Upon
        the
        exercise of less than all of the Warrants evidenced by this Certificate,
        the
        company shall forthwith issue to the holder hereof a new Warrant Certificate
        representing the number of unexercised Warrants.

      

      The
        Company may deem and treat the registered holder(s) hereof as the absolute
        owner(s) of this Warrant Certificate (notwithstanding any notation of ownership
        or other writing hereon made by anyone), for the purpose of any exercise
        hereof,
        and of any distribution to the holder(s) hereof, and for all other purposes,
        and
        the Company shall not be affected by any notice to the contrary.

       

      All
        terms
        used in this Warrant Certificate which are defined in the Warrant Agreement
        shall have the meanings assigned to them in the Warrant Agreement.

       

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant Certificate to be duly executed.

       

      DATED:
        June 27,
        2006.

      
        	 	 	 
	 	 
	 	AMARILLO
                BIOSCIENCES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Joseph
                M.
                Cummins 
	 	
                
Joseph
                M. Cummins, President 
	 	 

      

       

      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

      AMARILLO
        BOISCIENCES, INC.

       

      ELECTION
        TO PURCHASE SHARES

      UNDER
        WARRANT AGREEMENT DATED JUNE 27, 2006

      

       

      The
        undersigned hereby irrevocably elects to exercise the right, represented
        by a
        Warrant Certificate issued in the name of the undersigned, to purchase
        _____________ Shares and herewith tenders in payment for such Shares cash
        or a
        certified or official bank check payable to the order of AMARILLO BIOSCIENCES,
        INC. (the “Company”) in the amount of $_____________, all in accordance with the
        terms of the Warrant Agreement. The undersigned requests that a certificate
        for
        such Shares be registered in the name of ________________________________,
        and
        that such Certificate be delivered to ____________________________________,
        whose address is
        ______________________________________________________.

      

      
 

      Dated:
        ________________________. 

      

       

      
        
          	 	            
                  
	 	
                  Signature
                    

                
	 	 
	 	
                  (Signature
                    must conform in all respects to name of holder as specified on
                    the face of
                    the Warrant Certificate)

                

        

      

       

      
        

          
            	 	 	 
	 	
                             
                      

                  	 
	 	
                    (Insert
                      Federal Employer’s Tax Id Number

                  	 
	 	
                    or
                      Other Identifying Number of Holder)

                  	 

          

        

         

        
          
             

          

          
            A-3

            
              

            

          

          
             

          

        

      

       

      [FORM
        OF ASSIGNMENT]

       

      (To
        be
        executed by the registered holder if such holder

      desires
        to transfer the Warrant Certificate.)

       

      

        FOR
          VALUE RECEIVED
          ___________________________________________ hereby
          sells, assigns and transfers unto 

         

        ______________________________________________

        (print
          name and address of transferee) 

         

        the
          attached Warrant Certificate, evidencing the right to purchase ____________
          Shares of Voting Common Stock of AMARILLO BIOSCIENCES, INC., together with
          all
          right, title and interest therein, and does hereby irrevocably constitute
          and
          appoint __________________________, Attorney, to transfer the within Warrant
          Certificate on the books of the within-named Company, with full power of
          substitution. 

      FOR
        VALUE RECEIVED
        ______________________________________________
        hereby sells, assigns and transfers unto

      
 

      _____________________________________________________________________

      

      (print
        name and address of transferee) 

      

      the
        attached Warrant Certificate, evidencing the right to purchase ____________
        Shares of Voting Common Stock of AMARILLO BIOSCIENCES, INC., together with
        all
        right, title and interest therein, and does hereby irrevocably constitute
        and
        appoint __________________________, Attorney, to transfer the within Warrant
        Certificate on the books of the within-named Company, with full power of
        substitution. 

      

      DATED:
        _______________________. 

      

      
         

        
          
            	 	            
                    
	 	
                    Signature
                      

                  
	 	 
	 	
                    (Signature
                      must conform in all respects to name of holder as specified
                      on the face of
                      the Warrant Certificate)

                  

          

        

         

        
          

            
              	 	 	 
	 	
                               
                        

                    	 
	 	
                      (Insert
                        Federal Employer’s Tax Id Number

                    	 
	 	
                      or
                        Other Identifying Number of Holder)

                    	 

            

          

        

      

       

      
        
           

        

        
          A-4

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