Document:

Unassociated Document

    Amendment
      No. 2 to Letter Agreement

    

    THIS
      AMENDMENT
      is made
      this 18th day of April, 2008, by and between Trinad
      Capital Master Fund, Ltd. (“Trinad”) and Asianada, Inc. (the “Company”).

    

    WHEREAS,
      the
      Company entered into that certain letter agreement with Trinad dated July 11,
      2007 (the “Loan Agreement”), in connection with a loan from Trinad to the
      Company of up to a principal amount of $100,000 (the “Loan”); 

    

    WHEREAS,
      the
      Company amended the Loan Agreement on November 15, 2007 to (i)
      increase the principal amount of the Loan to up to $250,000
      and (ii)
      increase the entire outstanding principal amount of the Loan and any accrued
      interest thereon, which shall be due and payable by the Company upon, and not
      prior to, a Next Financing, to an amount of not less than $500,000;
      and

    

    WHEREAS,
      the
      Company has requested that Trinad increase the principal amount of the Loan,
      and
      Trinad has agreed to do so, and the parties agree to enter into this
      amendment.

    

    NOW
      THEREFORE,
      for
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereby amend the Loan Agreement as
      follows:

    

      
        	 	
                1.

              	
                Increase
                  in Principal Amount of the Loan.
                  The Loan Agreement is hereby amended to (i) increase the principal
                  amount
                  of the Loan to up to $500,000
                  and (ii) increase the entire outstanding principal amount of the
                  Loan and
                  any accrued interest thereon, which shall be due and payable by
                  the
                  Company upon, and not prior to, a Next Financing, to an amount
                  of not less
                  than $750,000.

              
	 	 	 
	 	
                2.

              	
                Ratification.
                  Except as herein amended, all of the terms and conditions of the
                  Loan
                  Agreement are hereby ratified and confirmed, and shall remain in
                  full
                  force and effect.

              

      

    

     

    Acknowledged
      and agreed to:

    

    Asianada,
      Inc.

    
      	 	 	 
	
              By:

            	
              /s/
                Charles Bentz

            	
               

            
	
               

            	
              
                

              

              Name:
                Charles Bentz

            	
               

            
	
               

            	
              Title:
                Chief Financial Officer 

            	
               

            

    

    
 

    Trinad
      Capital Master Fund, Ltd.

    
      	 	 	 
	
              By:

            	
              /s/
                Jay Wolf

            	
               

            
	
               

            	
              
                

                Name: Jay Wolf

            	
               

            
	
               

            	
              Title:
                DirectorEXHIBIT
      10.3

    

    AMARILLO
      BIOSCIENCES, INC.

    2006
      EMPLOYEES STOCK OPTION AND

    STOCK
      BONUS PLAN

    

    ADOPTED
      FEBRUARY 20, 2006

    

    ARTICLE
      I – GENERAL

    

    1.01.
      Purposes.

    

    The
      purposes of this 2006 Employees Stock Option and Stock Bonus Plan (the “Plan”)
      are to: (1) closely associate the interests of the employees of AMARILLO
      BIOSCIENCES, INC. (“ABI”) and its Subsidiaries and Affiliates (collectively
      referred to as the “Company”) with the shareholders by reinforcing the
      relationship between participants’ rewards and shareholder gains; (2) provide
      selected, key employees with an equity ownership in the Company commensurate
      with Company performance, as reflected in increased shareholder value; (3)
      maintain competitive compensation levels; and (4) provide an incentive to
      selected, key employees for continuous employment with the Company.

    

    1.02.
      Administration.

    

    (a) The
      Plan
      shall be administered by a committee of outside (non-employee) directors
      appointed by the Board of Directors of ABI (the “Committee”), as constituted
      from time to time. The Committee shall consist of at least two members of the
      Board. Notwithstanding anything in this Section 1.02 to the contrary, so long
      as
      any equity security of the Company is registered under Section 12 of the
      Securities Exchange Act of 1934, as amended (the “1934 Act”), or any successor
      statute, all authority to exercise discretion with respect to participation
      in
      the Plan by persons who are (i) “officers” within the meaning of the applicable
      Securities and Exchange Commission rules and regulations relating to Section
      16
      of the 1934 Act, or any successor statute, (ii) directors of the Company and/or
      (iii) beneficial owners of more than ten percent (10%) of any class of equity
      securities of the Company who are otherwise eligible to participate in the
      Plan,
      and the timing, pricing, amounts and other terms and conditions of awards
      granted under the Plan to such officers, directors and beneficial owners, shall
      be vested in the Committee, if all of the members of the Committee are
      disinterested persons within the meaning ascribed to such term in Rule 16b-3
      promulgated under the 1934 Act, or within any successor definition or under
      any
      successor rule (“disinterested persons”).

    

    (b) The
      Committee shall have the authority, in its sole discretion and from time to
      time
      to:

    
      
         

      

      
        -
          1
          -

        
          

        

      

      
         

      

    

    

    
      	 	
              (i)

            	
              designate
                the employees or classes of employees eligible to participate in
                the
                Plan;

            

    

     

    
      	 	 	
              (ii)

            	
              grant
                awards provided in the Plan in such form and amount, and subject
                to such
                vesting, as the Committee shall determine, provided that in no event
                shall
                the period for vesting be longer than that set forth in Section 2.04,
                below.

            

    

    

    
      	 	 	
              (iii)

            	
              impose
                such limitations, restrictions and conditions upon any such awards
                as the
                Committee shall deem appropriate;
                and

            

    

    

    
      	 	 	
              (iv)

            	
              interpret
                the Plan, adopt, amend and rescind rules and regulations relating
                to the
                Plan, and make all other determinations and take all other action
                necessary or advisable for the implementation and administration
                of the
                Plan.

            

    

    

    (c) Decisions
      and determinations of the Committee on all matters relating to the Plan shall
      be
      in its sole discretion and shall be conclusive. No member of the Committee
      shall
      be liable for any action taken or decision made in good faith relating to the
      Plan or any award thereunder.

    

    (d) With
      respect to persons subject to Section 16 of the Securities Exchange act of
      1934
      (the “1934 Act”), transactions under the Plan are intended to comply with all
      applicable conditions of Rule 16b-3 or its successor under the 1934 Act. To
      the
      extent any provision of the Plan or action by the Board of Directors or the
      Committee fails to so comply, it shall be deemed null and void, to the extent
      permitted by law and deemed advisable by the Board of Directors or the
      Committee, as applicable.

    

    (e) All
      usual
      and reasonable expenses of the Committee shall be paid by the Company, and
      no
      member shall receive compensation with respect to his services for the Committee
      except as may be authorized by the Board of Directors. The Board of Directors
      and the Committee may employ attorneys, consultants, accountants or other
      persons, and the Board of Directors, the Committee, the Company and its officers
      and directors shall be entitled to rely upon the advice, opinions or valuations
      of any such persons. All actions taken and all interpretations and
      determinations made by the Board of Directors or the Committee in good faith
      shall be final and binding upon all Employees who have received awards, and
      upon
      the Company and all other interested persons. No member of Board of Directors
      or
      the Committee shall be personally liable for any action, determination, or
      interpretation taken or made in good faith with respect to the Plan or awards
      made thereunder, and the Company shall indemnify and hold harmless each member
      of the Board of Directors or the Committee against all loss, cost, expenses
      or
      damages, occasioned by any act or omission to act in connection with any such
      action, determination or interpretation under or of the Plan, consistent with
      the Company’s certificate of incorporation and bylaws.

    
      
         

      

      
        -
          2
          -

        
          

        

      

      
         

      

    

    1.03.
      Eligibility for Participation.

    

    Participants
      in the Plan shall be selected by the Committee from among the employees of
      the
      Company. In making this selection and in determining the form and amount of
      awards, the Committee shall consider any factors deemed relevant, including
      the
      individual’s functions, responsibilities, value of services to the Company and
      past and potential contributions to the Company’s profitability and sound
      growth.

    

    1.04.
      Types of Awards Under Plan.

    

    Awards
      under the Plan will be in the form of either Nonqualified Stock Options, as
      described in Article II, or Stock Grants, as described in Article III; provided,
      however, that Limited Rights, as described in Article IV, may be awarded with
      respect to Options concurrently or previously awarded. 

    

    1.05.
      Aggregate Limitation on Awards.

    

    (a) Shares
      of
      stock which may be issued under the Plan shall be authorized and unissued or
      treasury shares of Common Stock of ABI (“Common Stock”). The maximum number of
      shares of Common Stock which may be issued or reserved under the Plan shall
      be
      five hundred thousand (500,000) shares. 

    

    (b) In
      addition to shares of Common Stock actually issued or reserved for Stock Grants
      or exercise of Nonqualified Stock Options, there shall be deemed to have been
      issued a number of shares equal to the number of shares of Common Stock in
      respect of which Limited Rights (as described in Article IV) shall have been
      exercised.

    

    (c) Any
      shares of Common Stock subject to a Nonqualified Stock Option which for any
      reason is terminated unexercised or expires shall again be available for
      issuance under the Plan, but shares subject to a Nonqualified Stock Option
      which
      are not issued as a result of the exercise of Limited Rights shall not again
      be
      available for issuance under the Plan.

    

    1.06.
      Effective Date and Term of Plan.

    

    (a) The
      Plan
      shall become effective on the date of adoption, as first above
      written.

    

    (b) No
      awards
      shall be made under the Plan after the last day of the Company’s 2011 fiscal
      year provided, however, that the Plan and all awards made under the Plan prior
      to such date shall remain in effect until such awards have been satisfied or
      terminated in accordance with the Plan and the terms of such
      awards.

    
      
         

      

      
        -
          3
          -

        
          

        

      

      
         

      

    

    ARTICLE
      II – NONQUALIFIED STOCK OPTIONS

    

    2.01.
      Award of Nonqualified Stock Options.

    

    The
      Committee may, from time to time and subject to the provisions of the Plan
      and
      such other terms and conditions as the Committee may prescribe, grant to any
      participant in the Plan one or more nonqualified stock options (“Nonqualified
      Stock Options” or “Options”), to purchase for cash the number of shares of
      Common Stock allotted by the Committee. The date a Nonqualified Stock Option
      is
      granted shall mean the date selected by the Committee as of which the Committee
      allots a specific number of shares to a participant pursuant to the
      Plan.

    

    2.02.
      Nonqualified Stock Option Agreements.

    

    The
      grant
      of a Nonqualified Stock Option shall be evidenced by a written Nonqualified
      Stock Option Agreement, executed by the Company and the holder of a Nonqualified
      Stock Option (the “Optionee”), stating the number of shares of Common Stock
      subject to the Nonqualified Stock Option evidenced thereby, and in such form
      as
      the Committee may from time to time determine.

    

    2.03.
      Nonqualified Stock Option Price.

    

    The
      Option Price per share of Common Stock deliverable upon the exercise of a
      Nonqualified Stock Option shall be 100% of the Fair Market Value of a share
      of
      Common Stock on the date the Nonqualified Stock Option is granted. The Committee
      shall determine the date on which an Option is granted; in the absence of such
      determination, the date on which the Committee adopts a resolution granting
      an
      Option shall be considered the date on which such Option is granted, provided
      the Employee to whom the Option is granted is promptly notified of the grant
      and
      a written Option agreement is duly executed as of the date of the
      resolution.

    

    2.04.
      Term and Exercise.

    

    Each
      Nonqualified Stock Option is exercisable during a period of ten years from
      the
      date of grant thereof (the “Option Term”), subject to the Vesting Schedule set
      forth below. No Nonqualified Stock Option shall be exercisable after the
      expiration of its Option Term. The Committee may also in its sole discretion
      accelerate the exerciseability or vesting of any Option or installment thereof
      at any time.

    

    Vesting
      Schedule.
      Options
      awarded shall be exercisable, subject to the other terms and conditions of
      the
      Plan, only upon the expiration of the designated number of years of active
      employment with the Company from date of award, as provided below: 

    

     
      20% of Options awarded - 1 year 

     
      40% of Options awarded - 2 years 

     
      60% of Options awarded - 3 years 

     
      80% of Options awarded - 4 years 

    100%
      of
      Options awarded - 5 years 

    
      
         

      

      
        -
          4
          -

        
          

        

      

      
         

      

    

    

    Except
      as
      provided in Sections 2.05, 2.06 and 2.07 hereof, no Nonqualified Stock Option
      shall be exercised at any time unless the holder thereof is then a regular
      full-time employee of the Company or one of its subsidiaries.

    

    2.05.
      Death of Optionee.

    

    (a) Upon
      the
      death of the Optionee, any Nonqualified Stock Option exercisable on the date
      of
      death may be exercised by the Optionee’s estate or by a person who acquires the
      right to exercise such Nonqualified Stock Option by bequest or inheritance
      or by
      reason of the death of the Optionee, provided that such exercise occurs within
      both the remaining Option Term of the Nonqualified Stock Option and one year
      after the Optionee’s death.

    

    (b) The
      provisions of this Section shall apply notwithstanding the fact that the
      Optionee’s employment may have terminated prior to death, but only to the extent
      of any Nonqualified Stock Options exercisable on the date of death.

    

    2.06.
      Retirement or Disability.

    

    Upon
      the
      termination of the Optionee’s employment by reason of permanent disability (as
      defined herein) or retirement (as determined by the Committee), the Optionee
      may, within 36 months from the date of such termination of employment, exercise
      any Nonqualified Stock Options to the extent such Nonqualified Stock Options
      were exercisable at the date of such termination of employment. For purposes
      hereof, “permanent disability” shall have the meaning set forth in Section
      22(e)(3) of the Internal Revenue Code of 1986 (the “Code”) or any successor
      provision thereto.

    

    2.07.
      Termination for Other Reasons.

    

    Except
      as
      provided in Sections 2.05 and 2.06 or except as otherwise determined by the
      Committee, all Nonqualified Stock Options shall terminate upon the termination
      of the Optionee’s employment; provided, however, that if the Optionee’s
      employment was involuntarily terminated (with or without cause), Optionee may
      exercise, during a 90-day period commencing with date of termination, all
      Options theretofore vested, or which vest during said 90-day period, under
      the
      Vesting Schedules set forth in Paragraph 2.04, above. At the end of the 90-day
      period, all rights of such Optionee under any then outstanding Option or right
      shall terminate and shall be forfeited immediately as to any unexercised portion
      thereof.

    
      
         

      

      
        -
          5
          -

        
          

        

      

      
         

      

    

    2.08.
      Manner of Payment.

    

    Each
      Stock Option Agreement shall set forth the procedure governing the exercise
      of
      the Stock Option granted thereunder, and shall provide that, upon such exercise
      in respect of any shares of Common Stock subject thereto, the Optionee shall
      pay
      to the Company, in full, the Option Price for such shares with cash or in shares
      of the Common Stock, valued at the Fair Market Value per share on the date
      of
      exercise.

    

    2.09.
      Issuance of Shares.

    

    As
      soon
      as practicable after receipt of payment, the Company shall deliver to the
      Optionee a certificate or certificates for such shares of Common Stock. The
      Optionee shall become a shareholder of the Company with respect to Common Stock
      represented by share certificates so issued and as such shall be fully entitled
      to receive dividends, to vote and to exercise all other rights of a shareholder.
      

    

    2.10.
      Effect of Exercise.

    

    The
      exercise of any Stock Option shall cancel that number of related Limited Rights,
      if any, which is equal to the number of shares of Common Stock purchased
      pursuant to said Option.

    

    2.11.
      Rule 16b-3 Exemption.

    

    Options
      granted under the Plan shall comply with the applicable provisions of Rule
      16b-3
      promulgated under the 1934 Act, or any successor, and shall contain such
      additional conditions or restrictions as may be required thereunder to qualify
      for the maximum exemption from Section 16 of the 1934 Act with respect to Plan
      transactions.

    

    ARTICLE
      III – STOCK GRANTS

    

    3.01.
      Award of Stock Grants.

    

    The
      Committee may from time to time, and subject to the provisions of the Plan
      and
      such other terms and conditions as the Committee may prescribe, award to any
      participant in the Plan one or more Stock Grants. The date a Stock Grant is
      awarded shall mean the date selected by the Committee as of which the Committee
      grants a specific number of shares to a participant pursuant to the
      Plan.

    

    ARTICLE
      IV – LIMITED RIGHTS

    

    4.01.
      Award of Limited Rights.

    

    Concurrently
      with or subsequent to the award of any Nonqualified Stock Option, the Committee
      may, subject to the provisions of the Plan and such other terms and conditions
      as the Committee may prescribe, award to the Optionee with respect to each
      Option, a related limited right permitting the Optionee, during a specified
      limited time period, to be paid the appreciation on the Common Stock in lieu
      of
      exercising the Option (“Limited Right”).

    
      
         

      

      
        -
          6
          -

        
          

        

      

      
         

      

    

    

    4.02.
      Limited Rights Agreement.

    

    Limited
      Rights granted under the Plan shall be evidenced by written agreements in such
      form as the Committee may from time to time determine.

    

    4.04.
      Exercise Period.

    

    Limited
      Rights shall (and must) be exercised immediately preceding or simultaneous
      with
      the date of a Change in Control of ABI (the “Exercise Period”), and all Limited
      Rights held by the Optionee shall be exercised during such Exercise Period,
      without regard to the Vesting Schedules set forth in Paragraph 2.04; provided,
      however, that if a Change in Control shall have occurred without notice or
      opportunity for exercise of Limited Rights, then the Limited Rights shall be
      exercised as soon as practicable after a determination has been made that a
      “Change in Control” has occurred, or has been deemed to have
      occurred.

    

    As
      used
      in the Plan, a “Change in Control” shall be deemed to have occurred if

    

    (a) individuals
      who were directors of ABI, immediately prior to a Control Transaction shall
      cease, within one year of such Control Transaction, to constitute a majority
      of
      the Board of Directors of ABI (or of the Board of Directors of any successor
      to
      ABI or to all or substantially all of its assets), or

    

    (b) any
      entity, person or Group other than ABI or a Subsidiary of ABI or Hayashibara
      Biochemical Laboratories, Inc. or an Affiliate thereof acquires shares of ABI
      in
      a transaction or series of transactions that result in such entity, person
      or
      Group directly or indirectly owning beneficially fifty-one percent (51%) or
      more
      of the outstanding shares.

    

    As
      used
      herein, “Control Transaction” shall be 

    

    
      	 	
              (i)

            	
              any
                tender offer for or acquisition of capital stock of ABI,
                

            

    

    

    
      	 	 	
              (ii)

            	
              any
                merger, consolidation, or sale of all or substantially all of the
                assets
                of ABI which has been approved by the shareholders,
                

            

      	 	 	 	 

      	 	 	(iii)	any
              contested election of directors of ABI, or 

      	 	 	 	 

      	 	 	(iv)	any
              combination of the foregoing;

    

     

    which
      results in a change in voting power sufficient to elect a majority of the Board
      of Directors of ABI. As used herein, “Group” shall mean persons who act in
      concert as described in Sections 13(d)(3) and/or 14(d)(2) of the Securities
      Exchange Act of 1934, as amended.

    
      
         

      

      
        -
          7
          -

        
          

        

      

      
         

      

    

    

    4.04.
      Amount of Payment.

    

    The
      amount of payment to which an Optionee shall be entitled upon the exercise
      of
      each Limited Right shall be equal to 100% of the amount, if any, which is equal
      to the difference between the Fair Market Value per share of Common Stock
      covered by the related Option on the date the Option was granted and the Market
      Price of a share of such Common Stock. Market Price is defined to be the greater
      of (i) the highest price per share of the Company’s Common Stock paid in
      connection with any Change in Control and (ii) the highest price per share
      of
      the Company’s Common Stock paid pursuant to an unsolicited brokerage transaction
      during the 60-day period prior to the Change in Control.

    

    4.05.
      Form of Payment.

    

    Payment
      of the amount to which an Optionee is entitled upon the exercise of Limited
      Rights, as determined pursuant to Section 4.04, shall be made solely in
      cash.

    

    4.06.
      Effect of Exercise.

    

    If
      Limited Rights are exercised, the Stock Options related to such Limited Rights
      cease to be exercisable to the extent of the number of shares with respect
      to
      which the Limited Rights were exercised. Upon the exercise or termination of
      the
      Options related to such Limited Rights, the Limited Rights granted with respect
      thereto terminate to the extent of the number of shares as to which the related
      Options were exercised or terminated.

    

    4.07.
      Retirement or Disability.

    

    Upon
      termination of the Optionee’s employment with the Company by reason of permanent
      disability or retirement (as each is determined by the Committee), the Optionee
      may, within 36 months from the date of termination, exercise any Limited Right
      to the extent such Limited Right is otherwise exercisable during such 36-month
      period.

    

    4.08.
      Death of Optionee or Termination for Other Reasons.

    

    Except
      as
      provided in Section 4.07, or except as otherwise determined by the Committee,
      all Limited Rights granted under the Plan shall terminate upon the termination
      of the Optionee’s employment with the Company, or upon the death of the
      Optionee.

    
      
         

      

      
        -
          8
          -

        
          

        

      

      
         

      

    

    ARTICLE
      V – REGISTRATION OF SHARES

    

    5.01.
      Registration of Shares.

    

    The
      Committee may from time to time, and subject to the provisions of the Plan
      and
      such other terms and conditions as the Committee may prescribe, authorize the
      Company to register with the Securities and Exchange Commission on Form S-8
      or
      other appropriate form, at the Company’s expense, shares of stock to be granted
      or awarded to participants in the Plan, including without limitation, shares
      underlying unexercised Stock Options, shares which have been issued pursuant
      to
      the exercise of Stock Options, shares which have been or which are to be or
      may
      be granted pursuant to the Stock Grants, and such shares as may be reserved
      from
      time to time for issuance upon future exercise of Stock Options, or future
      Stock
      Grants.

    

    
      
         

      

      
        -
          9
          -

        
          

        

      

      
         

      

    

    ARTICLE
      VI – MISCELLANEOUS

    

    6.01.
      General Restriction.

    

    Each
      award under the Plan shall be subject to the requirement that, if at any time
      the Committee shall determine that (i) the listing, registration or
      qualification of the shares of Common Stock subject or related thereto upon
      any
      securities exchange or under any state or federal law, or (ii) the consent
      or
      approval of any government regulatory body, or (iii) an agreement by the grantee
      of an award with respect to the disposition of shares of Common Stock, is
      necessary or desirable as a condition of, or in connection with, the granting
      of
      such award or the issue or purchase of shares of Common Stock thereunder, such
      award may not be consummated in whole or in part unless such listing,
      registration, qualification, consent, approval or agreement shall have been
      effected or obtained free of any conditions not acceptable to the Committee.
      

    

    6.02.
      Non-Assignability.

    

    No
      award
      under the Plan shall be assignable or transferable by the recipient thereof,
      except by will or by the laws of descent and distribution. During the life
      of
      the recipient, such award shall be exercisable only by such person or by such
      person’s guardian or legal representative.

    

    6.03.
      Right to Terminate Employment. 

    

    Nothing
      in the Plan or in any agreement entered into pursuant to the Plan shall confer
      upon any participant the right to continue in the employment of the Company
      or
      affect any right which the Company may have to terminate the employment of
      such
      participant. 

    

    6.04.
      Non-Uniform Determinations. 

    

    The
      Committee’s determinations under the Plan (including without limitation
      determinations of the persons to receive awards, the form, amount and timing
      of
      such awards, the terms and provisions of such awards and the agreements
      evidencing same) need not be uniform and may be made by it selectively among
      persons who receive, or are eligible to receive, awards under the Plan, whether
      or not such persons are similarly situated. 

    

    6.05.
      Rights as a Shareholder. 

    

    The
      recipient of any award under the Plan shall have no rights as a shareholder
      with
      respect thereto unless and until certificates for shares of Common Stock are
      issued to him. 

    
      
         

      

      
        -
          10
          -

        
          

        

      

      
         

      

    

     

    6.06.
      Definitions. 

    

    In
      this
      Plan the following definitions (along with other definitions set forth elsewhere
      in the Plan) shall apply:

    

    (a) “Affiliate”
      means any person or entity which directly, or indirectly through one or more
      intermediaries, controls, is controlled by, or is under common control with
      ABI.

    

    (b) “Fair
      Market Value” means, as of any date, the value of Common Stock determined as
      follows: 

    

    
      	 	
              (i)

            	
              If
                the Common Stock is listed on any established stock exchange or a
                national
                market system, including without limitation the National Market System
                of
                the National Association of Securities Dealers, Inc. Automated Quotation
                (“NASDAQ”) System, the Fair Market Value of a share of Common Stock shall
                be the closing sales price for such stock (or the closing bid, if
                no sales
                were reported) as quoted on such system or exchange (or the exchange
                with
                the greatest volume of trading in Common Stock) on the date of grant,
                as
                reported in The
                Wall Street Journal
                or
                such other source as the Board deems reliable;

            

    

    

    
      	 	
              (ii)

            	
              If
                the Common Stock is quoted on the NASDAQ System (but not on the National
                Market System thereof) or regularly quoted by a recognized securities
                dealer but selling prices are not reported, the Fair Market Value
                of a
                share of Common Stock shall be the mean between the bid and asked
                prices
                for the Common Stock on the last market trading day prior to the
                day of
                determination, as reported in The
                Wall Street Journal
                or
                such other source as the Board deems reliable;

            

    

    

    
      	 	
              (iii)

            	
              If
                the Common Stock is traded on the Over-the-Counter Bulletin Board,
                the
                Fair Market Value of a share of a Common Stock shall be the closing
                price
                of the Common Stock on the last market trading day, prior to the
                day of
                determination; or

            

    

    

    
      	 	
              (iv)

            	
              In
                the absence of an established market for the Common Stock, the Fair
                Market
                Value thereof shall be determined in good faith by the
                Committee.

            

    

    

    (c) “Option”
      means Nonqualified Stock Option.

    
      
         

      

      
        -
          11
          -

        
          

        

      

      
         

      

    

     

    (d) “Option
      Price” means the purchase price per share of Common Stock deliverable upon the
      exercise of a Nonqualified Stock Option.

    

    (e) “Subsidiary”
      means any corporation of which, at the time more than 50% of the shares entitled
      to vote generally in an election of directors are owned directly or indirectly
      by ABI or any Subsidiary thereof.

    

    6.07.
      Leaves of Absence.

    

    The
      Committee shall be entitled to make such rules, regulations and determinations
      as it deems appropriate under the Plan in respect of any leave of absence taken
      by the recipient of any award. Without limiting the generality of the foregoing,
      the Committee shall be entitled to determine (i) whether or not any such leave
      of absence shall constitute a termination of employment within the meaning
      of
      the Plan and (ii) the impact, if any, of any such leave of absence on awards
      under the Plan theretofore made to any recipient who takes such leave of
      absence.

    

    6.08.
      Newly Eligible Employees.

    

    The
      Committee shall be entitled to make such rules, regulations, determinations
      and
      awards as it deems appropriate in respect of any employee who becomes eligible
      to participate in the Plan or any portion thereof after the commencement of
      an
      award or incentive period.

    

    6.09.
      Adjustments.

    

    In
      the
      event of any change in the outstanding Common Stock by reason of a stock
      dividend or distribution, recapitalization, merger, consolidation, split-up,
      combination, exchange of shares or the like, the Committee shall appropriately
      adjust the number of shares of Common Stock which may be issued under the Plan,
      the number of shares of Common Stock subject to Options theretofore granted
      under the Plan, the Option Price of Options theretofore granted under the Plan,
      the amount and terms of any Limited Rights theretofore awarded under the Plan,
      and any and all other matters deemed appropriate by the Committee. 

    

    6.10.
      Amendment of the Plan.

    

    (a) The
      Committee may, without further action by the Board of Directors and without
      receiving further consideration from the participants, amend this Plan or
      condition or modify awards under this Plan in response to changes in securities
      or other laws or rules, regulations or regulatory interpretations thereof
      applicable to this Plan or to comply with stock exchange rules or
      requirements.

    
      
         

      

      
        -
          12
          -

        
          

        

      

      
         

      

    

    (b) The
      Committee may at any time and from time to time terminate or modify or amend
      the
      Plan in any respect, except that without Board of Directors approval the
      Committee may not (i) increase the maximum number of shares of Common Stock
      which may be issued under the Plan (other than increases pursuant to Section
      6.09), (ii) extend the period during which any award may be granted or
      exercised, or (iii) extend the term of the Plan. The termination or any
      modification or amendment of the Plan, except as provided in subsection (a),
      shall not without the consent of a participant, affect his or her rights under
      an award previously granted to him or her.

    
6.11.
      Disposition of Option Shares; Withholding Taxes.

    

    Upon
      the
      exercise of any Nonqualified Stock Option, or upon the award of any Stock Grant,
      the Company shall have the right to require the Optionee to pay to the Company
      the amount of any taxes that are required by law to be withheld with respect
      to
      such event.

     

    
      
         

      

      
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