Document:

United States Securities and Exchange Commission Edgar Filing

EXHIBIT 10.9

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (the “Agreement”) made this 25th day of June, 2008 by and between Presto Food and Beverage, Inc, a New York corporation, having an office at 410 Park Ave., New York, NY 10022 (here­inafter referred to as "Employer" or the “Company) and Jose Mario Ortega, an individual residing at 1526 Blue Meadow Road, Rockville, MD 20854 (hereinafter referred to as "Employee"); 

W I T N E S S E T H:

WHEREAS, Employer employs, and desires to continue to employ, Employee as its Chief Operating Officer and Vice-President; and

WHEREAS, Employee is willing to continue to be employed as the Employer’s Chief Operating Officer and Vice-President  in the manner provided for herein, and to perform the duties of the Chief Operating Officer and Vice-President of the Employer upon the terms and conditions herein set forth;

NOW, THEREFORE, in consideration of the promises and mutual covenants herein set forth it is agreed as follows:

1.

Employment of Chief Operating Officer and Vice-President.  Employer hereby employs Employee as Chief Operating Officer and Vice-President of the Company.

2.

Term.  

a.

Subject to Section 9 and Section 10 below, the term of this Agreement shall be for a period of Twenty-Four (24) months commencing in June 25, 2008 (the “Term”).  The Term of this Agreement shall be automatically extended for additional one (1) year periods, unless either party notifies the other in writing of its intention not to extend the Term at least ninety (90) days prior to the expiration of the then existing Term.  

3.

Duties.  The Employee shall perform those functions generally performed by persons of such title and position, shall attend all meetings of the stock­holders and the Board, shall perform any and all related duties and shall have any and all powers as may be prescribed by resolution of the Board, and shall be available to confer and consult with and advise the officers and directors of Employer at such times that may be required by Employer.  Employee shall report directly and solely to the Board.

4.

Compensation. 

a.

(i) Subject to the terms and conditions set forth in this Agreement, Employee shall be paid $120,000 per year during the Term of this Agreement.  Employee shall be paid periodically, in accordance with the policies of the Employer during the term of this Agreement, but not less than monthly.

(ii)

Employee is eligible for an annual bonus, if any, which will be determined and paid in accordance with policies, set from time to time by the Board. 

b.

Employer shall include Employee in its health insurance program available to Employer's executive officers and shall pay 100% of the premiums for such program.

  

c.  

Employee shall receive options to purchase 1,000,000 shares of the Employer’s common stock and shall have the right to participate in any other employee benefit plans established by Employer, including but not limited to, any employee stock option plan of the Company intended for the benefit of its employees and any defined compensation agreement approved by the Board of Directors for executives of the Employer.

d.

(i) In the event of a "Change of Control" whereby: 

(A) A person (other than a person who is an officer or a Director of Employer on the effective date hereof), including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes, or obtains the right to become, the beneficial owner of Employer securities having 30% or more of the combined voting power of then outstanding securities of the Employer that may be cast for the election of directors of the Employer; 

(B) At any time, a majority of the Board-nominated slate of candidates for the Board is not elected; 

(C) Employer consummates a merger in which it is not the surviving entity; 

(D) Substantially all Employer's assets are sold; or 

(E) Employer's stockholders approve the dissolution or liquidation of Employer; then 

(ii) All stock options and warrants ("Rights") granted by Employer to Employee under any plan or otherwise prior to the effective date of the Change of Control, shall become vested, accelerate and become immediately exercisable; and in addition the employee, at his option, shall receive a special compensation payment for the exercise cost of all vested options upon exercising those options any time within twelve months after the effective date of the change of control, adjusted for any stock splits and capital reorganizations having a similar effect, subsequent to the effective date hereof. In the event Employee owns or is entitled to receive any unregistered securities of Employer, then Employer shall use its best efforts to effect the registration of all such securities as soon as practicable, but no later than 120 days after the effective date of the registration statement; provided, however, that such period may be extended or delayed by Employer for one period of up to 60 days if, upon the advice of counsel at the time such registration is required to be filed, or at the time Employer is required to exercise its best efforts to cause such registration statement to become effective, such delay is advisable and in the best 

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interests of Employer because of the existence of non-public material information, or to allow Employer to complete any pending audit of its financial statements; 

If at any time within three years of the said Change of Control, Employee is not retained by Employer or the surviving entity, as applicable, under terms and conditions substantially similar to those herein, or if Employee’s duties require employee to move to a location not acceptable to Employee, then in addition, Employee shall be eligible to receive a one-time cash bonus, equal on an after-tax basis to three times his average compensation for the three previous fiscal years. Such compensation shall include salary, bonus, and restricted stock awards.  Said bonus shall be paid within thirty (30) days of the Change of Control.

(e)  

In the event that the Company raises funding for its operations or for general working capital from third party sources through the efforts of the Employee in an amount of $1,500,000 or more, the annual salary of the Employee as stipulated under section 4(a)(i) of this Agreement shall immediately, without need of demand on the part of the Employee, be raised to $150,000 for the remainder of the Term of this Agreement.  

5. 

Expenses.  Employee shall be reimbursed for all of his actual out-of-pocket expenses incurred in the performance of his duties hereunder, provided such expenses are acceptable to Employer, which approval shall not be unreasonably withheld, for business related travel and entertainment expenses, and that Employee shall submit to Employer reasonably detailed receipts with respect thereto.

6.

Vacation.

 Employee shall be entitled to receive four (4) weeks paid vacation time after each year of employment upon dates agreed upon by Employer.  Upon separation of employment, for any reason, vacation time accrued and not used shall be paid at the salary rate of Employee in effect at the time of employment separation.

    

7.

Secrecy.  At no time shall Employee disclose to anyone any confidential or secret information (not already constituting information available to the public) concerning (a) internal affairs or proprietary business operations of Employer or (b) any trade secrets, new product developments, patents, programs or programming, especially unique processes or methods.  

   

8. 

Covenant Not to Compete.  

(a) Subject to, and limited by, Section 10(b), Employee will not, at any time, during the term of this Agreement, and for one (1) year thereafter, either directly or indirectly, engage in, with or for any enterprise, institution, whether or not for profit, business, or company, competitive with the business (as identified herein) of Employer as such business may be conducted on the date thereof, as a creditor, guarantor, or financial backer, stockholder, director, officer, consultant, advisor, employee, member, inventor, producer, director, or otherwise of or through any corporation, partner­ship, association, sole proprietorship or other entity; provided, that an investment by Employee, his spouse or his children is permitted if such investment is not more than four percent (4%) of the total debt or equity capital of any 

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such competitive enterprise  As used in this Agreement, the business of Employer shall be deemed to include the manufacturing, marketing and distribution of food and beverages.  

(b) For a period of one year from the date of termination of this agreement Employee shall not contact or solicit any of the Company’s customers, employees, distributors or suppliers.

9.  Termination.  

a.  Termination by Employer 

(i) Employer may terminate this Agreement upon written notice for Cause.  For purposes of this Agreement, "Cause" shall mean (A) Employee's misconduct as could reasonably be expected to have a material adverse effect on the business and affairs of Employer, (B) the Employee's disregard of lawful instructions of Employer’s Board of Directors consistent with Employee's position relating to the business of Employer or neglect of duties or failure to act, which, in each case, could reasonably be expected to have a material adverse effect on the business and affairs of Employer, (C) engaging by the Employee in conduct that constitutes activity in competition with Employer; (D) the conviction of Employee for the commission of a felony; and/or (E) the habitual abuse of alcohol or controlled substances.  Notwithstanding anything to the contrary in this Section 9(a)(i), Employer may not terminate Employee's employment under this Agreement for Cause unless Employee shall have first received notice from the Board advising Employee of the specific acts or omissions alleged to constitute Cause, and such acts or omissions continue after Employee shall have had a reasonable opportunity (at least 10 business days from the date Employee receives the notice from the Board) to correct the acts or omissions so complained of.  In no event shall alleged incompetence of Employee in the performance of Employee's duties be deemed grounds for termination for Cause.          

(ii) 

This agreement automatically shall terminate upon the death of Employee; except that Employee’s estate shall be entitled to receive any amount accrued under Section 4(a).

b.

Termination by Employee

(i) Employee shall have the right to terminate his employment under this Agreement upon 30 days' notice to Employer given within 90 days following the occurrence of any of the following events (A) through (F) or within three years following the occurrence of event (G):

(A)

Employee is not elected, appointed or retained as Chief Operating Officer of the Company.

(B)

Employer acts to materially reduce Employee's duties and responsibilities hereunder.  Employee's duties and responsibilities shall not be deemed materially reduced for purposes hereof solely by virtue of the fact that Employer is (or substantially all of its assets are) sold to, or is combined with, another entity, provided that Employee shall continue to have the same 

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duties and responsibilities with respect to Employer's business, and Employee shall report directly to the board of directors of the entity (or individual) that acquires Employer or its assets.

(C)

Employer acts to change the geographic location of the performance of Employee's duties.  

(D)

A Material Reduction (as hereinafter defined) in Employee's rate of base compensation, or Employee's other benefits.  "Material Reduction" shall mean a ten percent (10%) differential;

(E)

A failure by Employer to obtain the assumption of this Agreement by any successor;

(F)

A material breach of this Agreement by Employer, which is not cured within thirty (30) days of written notice of such breach by Employer;

(G)

A Change of Control.

(ii) Anything herein to the contrary notwithstanding, Employee may terminate this Agreement upon thirty (30) days written notice.  

(iii) If Employee shall terminate this Agreement under Section 9(b)(i), Employee shall be entitled to receive six (6) months salary, at his then current yearly salary rate, for each year of service performed prior to such termination (the “Severance Payment”). Any such Severance Payment may be made in cash or shares, at the option of the Employee. Other than the Severance Payment described in this section 9(c), Employer shall have no further obligation to compensate Employee pursuant to Section 4 above.  If Employee shall terminate this Agreement pursuant to Section 9(b)(ii), Employee shall not be entitled to any additional compensation as provided in Section 4.

10.

Consequences of Breach by Employer;

Employment Termination             

a.  If Employer shall terminate Employee's employment under this Agreement in any way that is a breach of this Agreement by Employer, the following shall apply:

(i)

Employee shall be entitled to receive the Severance Payment,. Other than the Severance Payment described above, Employer shall have no further obligation to compensate Employee pursuant to Section 4 above; and

(ii)

Employee shall be entitled to payment of any previously declared bonus as provided in Section 4(a) above.

b.

In the event of termination of Employee's employment pursuant to Section 9(b)(ii) of this Agreement, the provisions of Section 8 shall not apply to Employee.

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11.

Remedies

Employer recognizes that because of Employee's special talents and knowledge of the Company’s business, and because of the special creative nature of and compensation practices of said industry and the material impact that individual projects can have on the Company's results of operations, in the event of termination by Employer hereunder (except under Section 9(a)(i) or (iii), or in the event of termination by Employee under Section 9(b)(i) before the end of the agreed term, the Employer acknowledges and agrees that the provisions of this Agreement regarding further payments of base salary, bonuses and the exercisability of Rights constitute fair and reasonable provisions for the consequences of such termination, do not constitute a penalty, and such payments and benefits shall not be limited or reduced by amounts' Employee might earn or be able to earn from any other employment or ventures during the remainder of the agreed term of this Agreement.

12.

Excise Tax.

In the event that any payment or benefit received or to be received by Employee in connection with a termination of his employment with Employer would constitute a "parachute payment" within the meaning of Code Section 280G or any similar or successor provision to 280G and/or would be subject to any excise tax imposed by Code Section 4999 or any similar or successor provision then Employer shall assume all liability for the payment of any such tax and Employer shall immediately reimburse Employee on a "grossed-up" basis for any income taxes attributable to Employee by reason of such Employer payment and reimbursements.      

 

13.

Attorneys' Fees and Costs.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled.

14.

Entire Agreement; Survival.  This Agreement contains the entire agreement between the parties with respect to the transactions contemplated herein and supersedes, effective as of the date hereof any prior agreement or understanding between Employer and Employee with respect to Employee's employment by Employer. The unenforceability of any provision of this Agreement shall not affect the enforceability of any other provision.  This Agreement may not be amended except by an agreement in writing signed by the Employee and the Employer, or any waiver, change, discharge or modification as sought.  Waiver of or failure to exercise any rights provided by this Agreement and in any respect shall not be deemed a waiver of any further or future rights.

b.

The provisions of Sections 4, 7, 8, 9(a)(ii), 9(c), 10, 11, 12, 14, 16, 17 and 18 shall survive the termination of this Agreement.

15.

Assignment.  This Agreement shall not be assigned to other parties.

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16.  

Governing Law.  This Agreement and all the amendments hereof, and waivers and consents with respect thereto shall be governed by the internal laws of the State of New York, without regard to the conflicts of laws principles thereof.

17.

Notices.  All notices, responses, demands or other communications under this Agreement shall be in writing and shall be deemed to have been given when 

a.

delivered by hand; 

b.

sent by facsimile (with receipt confirmed), provided that a copy is mailed by registered or certified mail, return receipt requested; or 

c.  

received by the addressee as sent be express delivery service (receipt requested) in each case to the appropriate addresses and facsimile numbers as the party may designate to itself by notice to the other parties:  

(i) if to the Employer:

Presto Food and Beverage, Inc.

1410 Park Ave., 

New York, NY 10022

Telephone:  (212) 406-5378

Facsimile:  (212) 382-1492

 

Gersten Savage LLP

600 Lexington Ave., 9th Floor

New York, New York 10022

Attention:  Peter Gennuso, Esq.

Telephone: (212) 752-9700

Facsimile: (212) 980-5192

(ii) if to the Employee, at the address provided on page one of this Agreement. 

 

18.

Severability of Agreement.  Should any part of this Agreement for any reason be declared invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion, which remaining provisions shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated, and it is hereby declared the intention of 

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the parties that they would have executed the remaining portions of this Agreement without including any such part, parts or portions which may, for any reason, be hereafter declared invalid.    

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.

			
	         

	PRESTO FOOD AND BEVERAGE, INC.

	 
	 
	  

	 
	 
	 

	 
	By:  

	 

	 
	 
	Fernando Leonzo

	 
	 
	Chief Executive Officer

			
	         

	 

	 
	 
	 

	 
	 
	Jose Mario Ortega

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EXHIBIT 4.1

CORD BLOOD AMERICA, INC. 2008

FLEXIBLE STOCK PLAN

ARTICLE I 

NAME AND PURPOSE

1.1

Name. The name of the Plan is the "Cord Blood America, Inc. 2008 Flexible Stock Plan."

1.2

Purpose. The Company has established the Plan to attract, retain, motivate and reward Employees and other individuals, to encourage ownership of the Company's Common Stock by Employees and other individuals, and to promote and further the best interests of the Company.

ARTICLE II 

DEFINITIONS OF TERMS AND RULES OF CONSTRUCTION

2.1

General Definitions. The following words and phrases, when used in the Plan, unless otherwise specifically defined or unless the context clearly otherwise requires, shall have the following respective meanings:

A.

Agreement. The document which evidences the grant of any Benefit under the Plan and which sets forth the Benefit and the terms, conditions and provisions of, and restrictions relating to, such Benefit. 

B.

Benefit. Any benefit granted to a Participant under the Plan.

C.

Board. The Board of Directors of the Company.

D.

Company. Cord Blood America, Inc., a Florida Corporation

E.

Committee. The Committee described in Section 5.1, or in the event that the Board of Directors does not appoint a Committee, then the Board of Directors. 

F.

Common Stock. The Company's Common Stock, $0.0001 par value.

G.

Effective Date. The date that the Plan is adopted by the Board of Directors.

H.

Employee. Any person employed by the Employer.

I.

Employer. The Company and all Subsidiaries.

J.

Exchange Act. The Securities Exchange Act of 1934, as amended.

K.

Fair Market Value. The last reported sale price, regular way, of the Shares on any day or, in case no such reported sale takes place on such day, the average of the reported closing bid and asked prices, regular way, in either case on the principal national securities exchange on which the Shares are listed or if the Shares are not listed on a national securities exchange and are listed on the NASDAQ Stock Market, the sale price determined in the same fashion or, if the Shares are not so listed on any of the foregoing, the average of the bid and asked prices on such day as furnished by dealers in the Shares in the over-the-counter market. All calculations of the current market price shall be made to the nearest cent.

L.

Option. An option to purchase Shares granted under the Plan. 

M.

Other Stock Based Award. An award under the Plan that is valued in whole or in part by reference to, or is otherwise based on, Common Stock. 

N.

Participant. A person who is granted a Benefit under the Plan. Benefits may be granted only to Employees, employees and owners of entities which are not Subsidiaries but which have a direct or indirect ownership interest in an Employer or in which an Employer has a direct or indirect ownership interest, persons who, and employees and owners of entities which, are customers and suppliers of an Employer, persons who, and employees and owners of entities which, render services to an Employer, and persons who, and employees and owners of entities, which have ownership or business affiliations with any persons or entity previously described.

O.

Performance Share. A Share awarded to a Participant under ARTICLE XIV of the Plan.

P.

Plan. The Cord Blood America, Inc. 2008 Flexible Stock Plan, and all amendments and supplements to it.

Q.

Restricted Stock. Shares issued under ARTICLE XIII of the Plan.

R.

Share. A share of Common Stock.

S.

Subsidiary. Any corporation in an unbroken chain of corporations beginning with the Company if, at the time of grant of an Option or other Benefit, each of the corporations, other than the last corporation in the unbroken chain, owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

2.2

Other Definitions. In addition to the above definitions, certain words and phrases used in the Plan and any Agreement may be defined in other portions of the Plan or in such Agreement.

2.3

Conflicts in Plan. In the case of any conflict in the terms of the Plan relating to a Benefit, the provisions in the ARTICLE of the Plan which specifically permits the grant of such Benefit shall control those in a different ARTICLE. 

ARTICLE III 

COMMON STOCK

3.1

Number of Shares. The number of Shares which may be issued or sold or for which Options or Performance Shares may be granted under the Plan is fixed at 20,000,000 Shares. At this date there are no shares issued and outstanding under this 2008 Flexible Stock Plan. Such Shares may be authorized but unissued Shares, or Shares held in the treasury, or both. 

3.2

Reusage. If an Option expires or is terminated, surrendered, or canceled without having been fully exercised, if Restricted Shares or Performance Shares are forfeited, or if any other grant results in any Shares not being issued, the Shares covered by such Option, grant of Restricted Shares, Performance Shares or other grant, as the case may be, shall again be available for use under the Plan, to the fullest extent permitted under applicable law. 

3.3

Adjustments. If there is any change in the Common Stock of the Company by reason of any stock dividend, spin-off, split-up, spin-out, recapitalization, merger, consolidation, reorganization, combination or exchange of shares, the number and class of shares available for Options and grants of Restricted Stock, Performance Shares and Other Stock Based Awards and the number of Shares subject to outstanding Options, grants of Restricted Stock and Performance Shares which are not vested, and Other Stock Based Awards, and the price thereof, as applicable, shall be appropriately adjusted by the Committee. 

ARTICLE IV 

ELIGIBILITY

4.1

Determined By Committee. The Participants and the Benefits they receive under the Plan shall be determined solely by the Committee, or in the event the Board of Directors does not appoint a Committee, then by the Board of Directors (hereinafter the Committee or the Board, if there is no Committee appointed, is referred to as the “Committee). In making its determinations, the Committee shall consider past, present and expected future contributions of Participants and potential Participants to the Employer, including, without limitation, the performance of, or the refraining from the performance of, services. 

ARTICLE V 

ADMINISTRATION

5.1

Committee. 

A.

The Plan shall be administered by the Board of Directors of the Company, the Stock Option Committee of the Board or another committee of the Board, all as shall be determined by the Board.

B.

If the Board appoints a Committee, the Committee shall be comprised of not less than two persons, and each member of the Committee shall be a member of the Board who during the one year period prior to service on the Committee was, and during such service is, an “outside director,” as such term is utilized in Section 162(m) of the Internal Revenue Code, and a “non-employee director,” as such term is defined and utilized in Rule 16b-3 of the Exchange Act. Subject to the foregoing, the Board may from time to time appoint members of the Committee in substitution for or in addition to members previously appointed, may fill vacancies in the Committee and may remove members of the Committee, at the sole discretion of the Board of Directors.

C.

The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it shall deem advisable. A majority of its members shall constitute a quorum and all determinations shall be made by a majority of such quorum. Any determination reduced to writing and signed by all of the members of the Committee shall be fully as effective as if it had been made by a majority vote at a meeting duly called and held.

5.2

Powers.

A.

The Board or the Committee, if so determined by the Board, shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be issued or adopted by the Board, to grant eligible persons Benefits under the Plan, to determine the restrictions, terms and conditions (which need not be identical) of all Benefits so granted, to interpret the provisions of the Plan and any Agreements relating to Benefits granted under the Plan, and to supervise the administration of the Plan.

B.

The Board or the Committee, if the Board shall so determine, shall have sole authority in the selection of directors, officers and employees of the Company or a Subsidiary, and any consultant, advisor or independent contractor to the Company or a Subsidiary, to whom Awards may be granted under the Plan and in the determination of the timing, pricing, terms, conditions, restrictions and amount of any such Award, subject only to the express provisions of the Plan.

C.

Without limiting the generality of the above Sections, the Board or the Committee shall have the authority to condition any Award, in whole or in part, on performance or other criteria established by the Board or the Committee at the time of grant. In making determinations hereunder, the Board or the Committee may take into account the nature of the services rendered by the respective directors, officers, employees, consultants, advisors or independent contractors, their present and potential contributions to the success of the Company and its Subsidiaries and such other factors as the Board or the Committee in its discretion deems relevant, and may consult with, and give such consideration to the recommendations of, management of the Company as the Board or Committee deems desirable.

5.3

Interpretation. The Board or the Committee is authorized, subject to the provisions of the Plan, to establish, amend and rescind such rules and regulations as it deems necessary or advisable for the proper administration of the Plan and to take such other action in connection with or in relation to the Plan as it deems necessary or advisable. Each action and determination made or taken pursuant to the Plan by the Board or the Committee, including any interpretation or construction of the Plan, shall be final and conclusive for all purposes and upon all persons. No member of the Board or the Committee shall be liable for any action or determination made or taken by him or the Board or the Committee in good faith with respect to the Plan.

ARTICLE VI 

AMENDMENT

6.1

Power of Board. Except as hereinafter provided, the Board shall have the sole right and power to amend the Plan at any time and from time to time.

ARTICLE VII

TERM AND TERMINATION

7.1

Term. The Plan shall commence as of the Effective Date, and, subject to the terms of the Plan, including those limiting the period over which Benefits may be granted, shall continue in full force and effect until terminated. 

7.2

Termination. The Plan may be terminated at any time by the Board. 

ARTICLE VIII

MODIFICATION OR TERMINATION OF BENEFITS

8.1

General. Subject to the provisions of Section 8.2, the amendment or termination of the Plan shall not adversely affect a Participant's right to any Benefit granted prior to such amendment or termination. 

8.2 

Committee's Right. Any Benefit granted may be converted, modified, forfeited or canceled, in whole or in part, by the Committee if and to the extent permitted in the Plan or applicable Agreement, or in the grant of the benefit, or with the consent of the Participant to whom such Benefit was granted. 

ARTICLE IX 

AGREEMENTS AND CERTAIN BENEFITS

9.1

Grant Evidenced by Agreement. The grant of any Benefit under the Plan may be evidenced by an Agreement which shall describe the specific Benefit granted and the terms and conditions of the Benefit or may be evidenced by adoption of a Board Resolution. The granting of any Benefit shall be subject to, and conditioned upon, the recipient's execution of any Agreement required by the Committee. Except as otherwise provided in an Agreement, all capitalized terms used in the Agreement shall have the same meaning as in the Plan and theAgreement shall be subject to all of the terms of the Plan.

9.2

Provisions of Agreement. Any Agreement shall contain such provisions that the Committee shall determine to be necessary, desirable and appropriate for the Benefit granted which may include, but not be limited to, the following with respect to any Benefit: description of the type of Benefit; the Benefit's duration; 

its transferability; if an Option, the exercise price, the exercise period and the person or persons who may exercise the Option; the effect upon such Benefit of the Participant's death or termination of employment; the Benefit's conditions; when, if, and how any Benefit may be forfeited, converted into another Benefit, modified, exchanged for another Benefit or replaced; and the restrictions on any Shares purchased or granted under the Plan.

9.3

Certain Benefits. Any Benefit granted to an individual who is subject to Section 16 of the Exchange Act shall be not transferable other than by will or the laws of descent and distribution and shall be exercisable during his lifetime only by him, his guardian or his legal representative. 

ARTICLE X 

REPLACEMENT AND TANDEM AWARDS

10.1

Replacement. The Committee may permit a Participant to elect to surrender a Benefit in exchange for a new Benefit. 

10.2

Tandem Awards. Awards may be granted by the Committee in tandem. 

ARTICLE XI

PAYMENT, DIVIDENDS, DEFERRAL AND WITHHOLDING

11.1

Payment. Upon the exercise of an Option or in the case of any other Benefit that requires a payment to the Company, the amount due the Company is to be paid:

A.

in cash;

B.

by the tender to the Company of Shares owned by the optionee and registered in his name having a Fair Market Value equal to the amount due to the Company;

C.

by credit by the receipt for a Retainer due and payable under a contract executed by the Company;

D.

in other property, rights and credits, including the Participant's promissory

E.

note; or

F.

by any combination of the payment methods specified in (a), (b) and (c) above.

Notwithstanding the foregoing, any method of payment other than (a) may be used only with the consent of the Committee (or if and to the extent so provided in an Agreement). The proceeds of the Sale of Common Stock purchased pursuant to an Option and any payment to the Company for other Benefits shall be added to the general funds of the Company or to the Shares held in treasury, as the case may be, and used for the corporate purposes of the Company as the Board shall determine.

11.2 

Dividend Equivalents. Grants of Benefits in Shares or Share equivalents may include dividend equivalent payments or dividend credit rights. 

11.3

Deferral. The right to receive any Benefit under the Plan may, at the request of the Participant, be deferred for such period and upon such terms as the Committee shall determine, which may include crediting of interest on deferrals of cash and crediting of dividends on deferrals denominated in Shares. 

11.4

Withholding. The Company, at the time any distribution is made under the Plan, whether in cash or in Shares, may at its discretion withhold from such distribution any amount necessary to satisfy federal, state and local income tax withholding requirements with respect to such distribution. Such withholding shall be in cash or, in the Committee's sole discretion, Shares. 

ARTICLE XII 

OPTIONS

12.1

Determination by Committee. The terms of all Options shall be determined by the Committee. 

ARTICLE XIII

RESTRICTED STOCK

13.1

Description. The Committee may grant Benefits in Shares available under ARTICLE III of the Plan as Restricted Stock. Shares of Restricted Stock shall be issued and delivered at the time of the grant. Each certificate representing Shares of Restricted Stock shall bear a restrictive legend stating that such Shares are nontransferable until all restrictions have been satisfied (and such other legend as may be required in connection with any Agreement relating to the issuance under the Plan). The grantee shall be entitled to full voting and dividend rights with respect to all shares of Restricted Stock from the date of grant.

13.2

Non-Transferability. Shares of Restricted Stock shall not be transferable until after the removal of the legend with respect to such Shares. 

ARTICLE XIV

PERFORMANCE SHARES

14.1

Description. Performance Shares are the right of an individual to whom a grant of such Shares is made to receive Shares or cash equal to the Fair Market Value of such Shares at a future date in accordance with the terms of such grant. Generally, such right shall be based upon the attainment of targeted profit   and/or performance objectives.

14.2

Grant. The Committee may grant an award of Performance Shares. The number of Performance Shares and the terms and conditions of the grant shall be set forth in an applicable Agreement.

ARTICLE XV 

FORM S-8 REGISTERED STOCK 

15.1

Description. The Committee may grant Benefits in the form of the issuance of Shares available under ARTICLE III of the Plan, to be issued after filing and effectiveness of an S-8 Registration Statement filed under the Securities Act of 1933 registering such shares, either specifically or as part of a Plan wide registration of shares. The issuance of all such shares shall be in accord with the rules and regulations associated with the use of an S-8 Registration Statement adopted by the Securities and Exchange Commission as amended, and the terms set forth in the S-8 Registration as filed.

ARTICLE XVI 

OTHER STOCK BASED AWARDS AND OTHER BENEFITS

16.1

Other Stock Based Awards. The Committee shall have the right to grant Other Stock Based Awards which may include, without limitation, the grant of Shares based on certain conditions, the payment of cash based on the performance of the Common Stock, and the grant of securities convertible into Shares.

16.2

Other Benefits. The Committee shall have the right to provide types of Benefits under the Plan in addition to those specifically listed, if the Committee believes that such Benefits would further the purposes for which the Plan was established.

ARTICLE XVII

MISCELLANEOUS PROVISIONS

17.1

Underscored References. The underscored references contained in the Plan are included only for convenience, and they shall not be construed as a part of the Plan or in any respect affecting or modifying its provisions.

17.2

Number and Gender. The masculine and neuter, wherever used in the Plan, shall refer to either the masculine, neuter or feminine; and, unless the context otherwise requires, the singular shall include the plural and the plural the singular.

17.3

Governing Law. This Plan shall be construed and administered in accordance with the laws of the State of Florida. 

17.4

Purchase for Investment. The Committee may require each person purchasing Shares pursuant to an Option, or receiving shares under an award under the Plan to represent to and agree with the Company in writing that such person is acquiring the Shares for investment and without a view to distribution or resale. The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. All certificates for Shares delivered under the Plan shall be subject to such stock-transfer orders and   other restrictions as the Committee may deem advisable under all applicable laws, rules and regulations, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate references to such restrictions.

17.5

No Employment Contract. The adoption of the Plan shall not confer upon any Employee any right to continued employment nor shall it interfere in any way with the right of the Employer to terminate the employment of any of its Employees at any time.

17.6

No Effect on Other Benefits. The receipt of Benefits under the Plan shall have no effect on any benefits to which a Participant may be entitled from the Employer, under another plan or otherwise, or preclude a Participant from receiving any such benefits.

Undersigned, the Secretary of Cord Blood America, Inc., hereby certifies that this Cord Blood America, Inc 2008 Flexible Stock Plan was duly adopted by the Board of Directors of the Corporation, effective as of June 27, 2008

			
	/s/ Matthew L. Schissler

	          

	Date: June 27, 2008

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