Document:

2007 Incentive and Nonstatutory Stock Option Plan

    Exhibit
      10.2

    

    2007
      Incentive and Nonstatutory Stock Option Plan

    

    DON
      MARCOS TRADING CO.

    

    1.    Purpose

    

    This
      Incentive and Nonstatutory Stock Option Plan (the “Plan”) is intended to further
      the growth and financial success of Don Marcos Trading Co., a Florida
      corporation (the “Corporation”) by providing additional incentives to selected
      employees, directors, and consultants to the Corporation or parent corporation
      or subsidiary corporation of the Corporation as those terms are defined in
      Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended
      (the
“Code”) (such parent corporations and subsidiary corporations hereinafter
      collectively referred to as “Affiliates”) so that such employees and consultants
      may acquire or increase their proprietary interest in the Corporation. Stock
      options granted under the Plan (hereinafter “Options”) may be either “Incentive
      Stock Options,” as defined in Section 422A of the Code and any regulations
      promulgated under said Section, or “Nonstatutory Options” at the discretion of
      the Board of Directors of the Corporation (the “Board”) and as reflected in the
      respective written stock option agreements granted pursuant hereto.

    

    2.    Administration

    

    The
      Plan
      shall be administered by the Board of Directors of the Corporation; provided
      however, that the Board may delegate such administration to a committee of
      not
      fewer than three members (the “Committee”), at least two of whom are members of
      the Board and all of whom are disinterested administrators, as contemplated
      by
      Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended
      (“Rule 16b-3”); and provided further, that the foregoing requirement for
      disinterested administrators shall not apply prior to the date of the first
      registration of any of the securities of the Corporation under the Securities
      Act of 1933, as amended.

    

    Subject
      to the provisions of the Plan, the Board and/or the Committee shall have
      authority to (a) grant, in its discretion, Incentive Stock Options in accordance
      with Section 422A of the Code or Nonstatutory Options; (b) determine in good
      faith the fair market value of the stock covered by an Option; (c) determine
      which eligible persons shall be granted Options and the number of shares to
      be
      covered thereby and the term thereof; (d) construe and interpret the Plan;
      (e)
      promulgate, amend and rescind rules and regulations relating to its
      administration, and correct defects, omissions, and inconsistencies in the
      Plan
      or any Option; (f) consistent with the Plan and with the consent of the
      optionee, as appropriate, amend any outstanding Option or amend the exercise
      date or dates thereof; (g) determine the duration and purpose of leaves of
      absence which may be granted to optionholders without constituting termination
      of their employment for the purpose of the Plan; and (h) make all other
      determinations necessary or advisable for the Plan's administration. The
      interpretation and construction by the Board of any provisions of the Plan
      or of
      any Option it shall be conclusive and final. No member of the Board or the
      Committee shall be liable for any action or determination made in good faith
      with respect to the Plan or any Option.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              Eligibility

            

    

    

    The
      persons who shall be eligible to receive Options shall be employees, directors,
      or consultants of the Corporation or any of its Affiliates (“Optionees”). The
      term consultant shall mean any person who is engaged by the Corporation to
      render services and is compensated for such services, and any director of the
      Corporation whether or not compensated for such services; provided that, if
      the
      Corporation registers any of its securities pursuant to the Securities Act
      of
      1933, as amended (the “Act”), the term consultant shall thereafter not include
      directors who are not compensated for their services or are paid only a director
      fee by the Corporation.

    

    (a)    Incentive
      Stock Options.
      Incentive Stock Options may only be issued to employees of the Corporation
      or
      its Affiliates. Incentive Stock Options may be granted to officers, whether
      or
      not they are directors, but a director shall not be granted an Incentive Stock
      Option unless such director is also an employee of the Corporation. Payment
      of a
      director fee shall not be sufficient to constitute employment by the
      Corporation. Any grant of option to an officer or director of the Corporation
      subsequent to the first registration of any of the securities of the Corporation
      under the Act shall comply with the requirements of Rule 16b-3. An optionee
      may
      hold more than one Option.

    

    The
      Corporation shall not grant an Incentive Stock Option under the Plan to any
      employee if such grant would result in such employee holding the right to
      exercise for the first time in any one calendar year, under all options granted
      to such employee under the Plan or any other stock option plan maintained by
      the
      Corporation or any Affiliate, with respect to shares of stock having an
      aggregate fair market value, determined as of the date of the Option is granted,
      in excess of $100,000. Should it be determined that an Incentive Stock Option
      granted under the Plan exceeds such maximum for any reason other than a failure
      in good faith to value the stock subject to such option, the excess portion
      of
      such option shall be considered a Nonstatutory Option. If, for any reason,
      an
      entire option does not qualify as an Incentive Stock Option by reason of
      exceeding such maximum, such option shall be considered a Nonstatutory
      Option.

    

    (b)    Nonstatutory
      Option.
      The
      provisions of the foregoing Section 3(a) shall not apply to any option
      designated as a “Nonstatutory Stock Option Agreement” or which sets forth the
      intention of the parties that the option be a Nonstatutory Option.

    

    
      	
              4.

            	
              Stock

            

    

    

    The
      stock
      subject to Options shall be the shares of the Corporation’s authorized but
      unissued or reacquired Common Stock (the “Stock”).

    

    (a)    Number
      of Shares.
      Subject
      to adjustment as provided in Paragraph 5(h) of this Plan, the total number
      of
      shares of Stock which may be purchased through exercise of Options granted
      under
      this Plan shall not exceed 5,000,000 shares. If any Option shall for any reason
      terminate or expire, any shares allocated thereto but remaining unpurchased
      upon
      such expiration or termination shall again be available for the grant of Options
      with respect thereto under this Plan as though no Option had been granted with
      respect to such shares.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b)    Reservation
      of Shares.
      The
      Corporation shall reserve and keep available at all times during the term of
      the
      Plan such number of shares as shall be sufficient to satisfy the requirements
      of
      the Plan. If, after reasonable efforts, which efforts shall not include the
      registration of the Plan or Options under the Act, the Corporation is unable
      to
      obtain authority from any applicable regulatory body, which authorization is
      deemed necessary by legal counsel for the Corporation for the lawful issuance
      of
      shares hereunder, the Corporation shall be relieved of any liability with
      respect to its failure to issue and sell the shares for which such requisite
      authority was so deemed necessary unless and until such authority is
      obtained.

    

    5.    Terms
      and Conditions of Options

    

    Options
      granted hereunder shall be evidenced by agreements between the Corporation
      and
      the respective Optionees, in such form and substance as the Board or Committee
      shall from time to time approve. Such agreements need not be identical, and
      in
      each case may include such provisions as the Board or Committee may determine,
      but all such agreements shall be subject to and limited by the following terms
      and conditions:

    

    (a)    Number
      of Shares:
      Each
      Option shall state the number of shares to which it pertains.

    

    (b)    Option
      Price:
      Each
      Option shall state the Option Price, which shall be determined as
      follows:

    

    (i)    Any
      Option granted to a person who at the time the Option is granted owns (or is
      deemed to own pursuant to Section 424(d) of the Code) stock possessing more
      than
      10% of the total combined voting power of value of all classes of stock of
      the
      Corporation, or of any Affiliate, (“10% Holder”) shall have an Option Price of
      no less than 110% of the fair market value of the common stock as of the date
      of
      grant; and

    

    (ii)    Incentive
      Stock Options granted to a person who at the time the Option is granted is
      not a
      10% Holder shall have an Option price of no less than 100% of the fair market
      value of the common stock as of the date of grant.

    

    (iii)    Nonstatutory
      Options granted to a person who at the time the Option is granted is not a
      10%
      Holder shall have an Option Price determined by the Board as of the date of
      grant.

    

    For
      the
      purposes of this paragraph 5(b), the fair market value shall be as determined
      by
      the Board, in good faith, which determination shall be conclusive and binding;
      provided however, that if there is a public market for such stock, the fair
      market value per share shall be the average of the bid and asked prices on
      the
      date of grant of the Option, or if listed on a stock exchange, the closing
      price
      on such exchange on such date of grant.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c)    Medium
      and Time of Payment:
      To the
      extent permissible by applicable law, the Option price shall be paid, at the
      discretion of the Board, at either the time of grant or the time of exercise
      of
      the Option (i) in cash or by check, (ii) by delivery of other common stock
      of
      the Corporation, provided such tendered stock was not acquired directly or
      indirectly from the Corporation, or, if acquired from the Corporation, has
      been
      held by the Optionee for more than six months, (iii) by the Optionee's
      promissory note in a form satisfactory to the Corporation and bearing interest
      at a rate determined by the Board, in its sole discretion, but in no event
      less
      than 6% per annum, or (iv) such other form of legal consideration permitted
      by
      State law as may be acceptable to the Board.

    

    (d)    Term
      and Exercise of Options:
      Any
      Option granted to an Employee of the Corporation shall become exercisable over
      a
      period of no longer than ten years, and no less than 20% of the shares covered
      thereby shall become exercisable annually. No Option shall be exercisable,
      in
      whole or in part, prior to one year from the date it is granted unless the
      Board
      shall specifically determine otherwise, as provided herein. In no event shall
      any Option be exercisable after the expiration of ten years from the date it
      is
      granted. Unless otherwise specified by the Board or the Committee in the
      resolution authorizing such option, the date of grant of an Option shall be
      deemed to be the date upon which the Board or the Committee authorizes the
      granting of such Option.

    

    Each
      Option shall be exercisable to the nearest whole share, in installments or
      otherwise, as the respective option agreements may provide. During the lifetime
      of an Optionee, the Option shall be exercisable only by the Optionee and shall
      not be assignable or transferable by the Optionee, and no other person shall
      acquire any rights therein. To the extent not exercised, installments (if more
      than one) shall accumulate, but shall be exercisable, in whole or in part,
      only
      during the period for exercise as stated in the option agreement, whether or
      not
      other installments are then exercisable.

    

    (e)    Termination
      of Status as Employee, Director, or Consultant:
      If
      Optionee's status as an employee, director, or consultant shall terminate for
      any reason, then the Optionee (or if the Optionee shall die after such
      termination, but prior to exercise, Optionee's personal representative or the
      person entitled to succeed to the Option) shall have the right to exercise
      any
      vested Options, in whole or in part, at any time after such termination during
      the remaining term of the Option; provided, however, that the Board may specify
      a shorter period for exercise following termination as the Board deems
      reasonable and appropriate, but not shorter than six months in the event
      Optionee’s termination was caused by permanent disability within the meaning of
      Section 22(e)(3) of the Code. The Option may be exercised only with respect
      to
      installments that the Optionee could have exercised at the date of termination
      of employment. Nothing contained herein or in any Option granted pursuant hereto
      shall be construed to affect or restrict in any way the right of the Corporation
      to terminate the employment of an Optionee with or without cause. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (f)    Death
      of Optionee:
      If an
      Optionee dies while employed or engaged as a director or consultant by the
      Corporation or an Affiliate, the portion of such Optionee's Option or Options
      which were exercisable at the date of death may be exercised, in whole or in
      part, by the estate of the decedent or by a person succeeding to the right
      to
      exercise such Option or Options, at any time within the remaining term of the
      Option, but only to the extent, that Optionee could have exercised the Option
      as
      of the date of Optionee’s death; provided, in any case, that the Option may be
      so exercised only to the extent that the Option has not previously been
      exercised by Optionee.

    

    (g)    Nontransferability
      of Option:
      No
      Option shall be transferable by the Optionee, except by will or by the laws
      of
      descent and distribution.

    

    (h)    Recapitalization:
      Subject
      to any required action by the stockholders, the number of shares of common
      stock
      covered by each outstanding Option, and the price per share thereof set forth
      in
      each such Option, shall be proportionately adjusted for any increase in the
      number of issued shares of common stock of the Corporation resulting from a
      forward split of shares or the payment of a stock dividend, or any other
      increase in the number of such shares affected, without receipt of consideration
      by the Corporation. However, the price per share set forth in each Option shall
      not be affected or adjusted for any decrease in the number of issued shares
      of
      common stock of the Corporation resulting from a reverse split of shares, or
      any
      other decrease in the number of such shares affected. 

    

    Subject
      to any required action by the stockholders, if the Corporation shall be the
      surviving entity in any merger or consolidation, each outstanding Option
      thereafter shall pertain to and apply to the securities to which a holder of
      shares of common stock equal to the shares subject to the Option would have
      been
      entitled by reason of such merger or consolidation. A dissolution or liquidation
      of the Corporation or a merger or consolidation in which the Corporation is
      not
      the surviving entity shall cause each outstanding Option to terminate on the
      effective date of such dissolution, liquidation, merger or consolidation. In
      such event, if the entity which shall be the surviving entity does not tender
      to
      Optionee an offer, for which it has no obligation to do so, to substitute for
      any unexercised Option a stock option or capital stock of such surviving entity,
      as applicable, which on an equitable basis shall provide the Optionee with
      substantially the same economic benefit as such unexercised Option, then the
      Board may grant to such Optionee, but shall not be obligated to do so, the
      right
      for a period commencing 30 days prior to and ending immediately prior to such
      dissolution, liquidation, merger or consolidation or during the remaining term
      of the Option, whichever is the lesser, to exercise any unexpired Option or
      Options, without regard to the installment provisions of Paragraph 5(d) of
      this
      Plan; provided, that any such right granted shall be granted to all Optionees
      not receiving an offer to substitute on a consistent basis, and provided
      further, that any such exercise shall be subject to the consummation of such
      dissolution, liquidation, merger or consolidation.

    

    In
      the
      event of a change in the common stock of the Corporation as presently
      constituted, which is limited to a change of all of its authorized shares
      without par value into the same number of shares with a par value, the shares
      resulting from any such change shall be deemed to be the common stock within
      the
      meaning of this Plan.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    To
      the
      extent that the foregoing adjustments relate to stock or securities of the
      Corporation, such adjustments shall be made by the Board, whose determination
      in
      that respect shall be final, binding and conclusive. Except as expressly
      provided in this Paragraph 5(h), the Optionee shall have no rights by reason
      of
      any subdivision or consolidation of shares of stock or any class or the payment
      of any stock dividend or any other increase or decrease in the number of shares
      of stock of any class, and the number or price of shares of common stock subject
      to any Option shall not be affected by, and no adjustment shall be made by
      reason of, any dissolution, liquidation, merger or consolidation, or any issue
      by the Corporation of shares of stock of any class or securities convertible
      into shares of stock of any class.

    

    The
      grant
      of an Option pursuant to the Plan shall not affect in any way the right or
      power
      of the Corporation to make any adjustments, reclassifications, reorganizations
      or changes in its capital or business structure or to merge, consolidate,
      dissolve, or liquidate or to sell or transfer all or any part of its business
      or
      assets.

    

    (i)    Rights
      as a Stockholder:
      An
      Optionee shall have no rights as a stockholder with respect to any shares
      covered by an Option until the date of the issuance of a stock certificate
      to
      Optionee for such shares. No adjustment shall be made for dividends (ordinary
      or
      extraordinary, whether in cash, securities or other property) or distributions
      or other rights for which the record date is prior to the date such stock
      certificate is issued, except as expressly provided in Paragraph 5(h)
      hereof.

    

    (j)    Modification,
      Acceleration, Extension, and Renewal of Options:
      Subject
      to the terms and conditions and within the limitations of the Plan, the Board
      may modify an Option, or once an Option is exercisable, accelerate the rate
      at
      which it may be exercised, and may extend or renew outstanding Options granted
      under the Plan or accept the surrender of outstanding Options (to the extent
      not
      theretofore exercised) and authorize the granting of new Options in substitution
      for such Options, provided such action is permissible under Section 422A of
      the
      Code and state law.

    

    Notwithstanding
      the foregoing provisions of this Paragraph 5(j), however, no modification of
      an
      Option shall, without the consent of the Optionee, alter to the Optionee's
      detriment or impair any rights or obligations under any Option theretofore
      granted under the Plan.

    

    (k)    Investment
      Intent:
      Unless
      and until the issuance and sale of the shares subject to the Plan are registered
      under the Act, each Option under the Plan shall provide that the purchases
      of
      stock thereunder shall be for investment purposes and not with a view to, or
      for
      resale in connection with, any distribution thereof. Further, unless the
      issuance and sale of the stock have been registered under the Act, each Option
      shall provide that no shares shall be purchased upon the exercise of such Option
      unless and until (i) any then applicable requirements of state and federal
      laws
      and regulatory agencies shall have been fully complied with to the satisfaction
      of the Corporation and its counsel, and (ii) if requested to do so by the
      Corporation, the person exercising the Option shall (i) give written assurances
      as to knowledge and experience of such person (or a representative employed
      by
      such person) in financial and business matters and the ability of such person
      (or representative) to evaluate the merits and risks of exercising the Option,
      and (ii) execute and deliver to the Corporation a letter of investment intent,
      all in such form and substance as the Corporation may require. If shares are
      issued upon exercise of an Option without registration under the Act, subsequent
      registration of such shares shall relieve the purchaser thereof of any
      investment restrictions or representations made upon the exercise of such
      Options.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (l)    Exercise
      Before Exercise Date:
      At the
      discretion of the Board, the Option may, but need not, include a provision
      whereby the Optionee may elect to exercise all or any portion of the Option
      prior to the stated exercise date of the Option or any installment thereof.
      Any
      shares so purchased prior to the stated exercise date shall be subject to
      repurchase by the Corporation upon termination of Optionee's employment as
      contemplated by Paragraphs 5(e), 5(f) and 5(g) hereof prior to the exercise
      date
      stated in the Option and such other restrictions and conditions as the Board
      or
      Committee may deem advisable.

    

    (m)   Other
      Provisions:
      The
      Option agreements authorized under this Plan shall contain such other
      provisions, including, without limitation, restrictions upon the exercise of
      the
      Options, as the Board or the Committee shall deem advisable. Shares shall not
      be
      issued pursuant to the exercise of an Option, if the exercise of such Option
      or
      the issuance of shares thereunder would violate, in the opinion of legal counsel
      for the Corporation, the provisions of any applicable law or the rules or
      regulations of any applicable governmental or administrative agency or body,
      such as the Act, the Securities Exchange Act of 1934, the rules promulgated
      under the foregoing or the rules and regulations of any exchange upon which
      the
      shares of the Corporation are listed.

    

    6.    Availability
      of Information

    

    During
      the term of the Plan and any additional period during which an Option granted
      pursuant to the Plan shall be exercisable, the Corporation shall make available,
      not later than 120 days following the close of each of its fiscal years, such
      financial and other information regarding the Corporation as is required by
      the
      bylaws of the Corporation and applicable law to be furnished in an annual report
      to the stockholders of the Corporation.

    

    7.    Effectiveness
      of Plan; Expiration

    

    Subject
      to approval by the stockholders of the Corporation, this Plan shall be deemed
      effective as of the date it is adopted by the Board. The Plan shall expire
      on
      February 1, 2017, but such expiration shall not affect the validity of
      outstanding Options.

    

    8.    Amendment
      and Termination of the Plan

    

    The
      Board
      may, insofar as permitted by law, from time to time, with respect to any shares
      at the time not subject to Options, suspend or terminate the Plan or revise
      or
      amend it in any respect whatsoever, except that without the approval of the
      stockholders of the Corporation, no such revision or amendment shall (i)
      increase the number of shares subject to the Plan, (ii) decrease the price
      at
      which Options may be granted, (iii) materially increase the benefits to
      Optionees, or (iv) change the class of persons eligible to receive Options
      under
      this Plan; provided, however, no such action shall alter or impair the rights
      and obligations under any Option outstanding as of the date thereof without
      the
      written consent of the Optionee thereunder. No Option may be granted while
      the
      Plan is suspended or after it is terminated, but the rights and obligations
      under any Option granted while the Plan is in effect shall not be impaired
      by
      suspension or termination of the Plan.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
9.    Indemnification
      of Board

    

    In
      addition to such other rights or indemnifications as they may have as directors
      or otherwise, and to the extent allowed by applicable law, the members of the
      Board and the Committee shall be indemnified by the Corporation against the
      reasonable expenses, including attorneys' fees, actually and necessarily
      incurred in connection with the defense of any claim, action, suit or
      proceeding, or in connection with any appeal thereof, to which they or any
      of
      them may be a party by reason of any action taken, or failure to act, under
      or
      in connection with the Plan or any Option granted thereunder, and against all
      amounts paid by them in settlement thereof (provided such settlement is approved
      by independent legal counsel selected by the Corporation) or paid by them in
      satisfaction of a judgment in any such claim, action, suit or proceeding, except
      in any case in relation to matters as to which it shall be adjudged in such
      claim, action, suit or proceeding that such Board member is liable for
      negligence or misconduct in the performance of his or her duties; provided
      that
      within 60 days after institution of any such action, suit or Board proceeding
      the member involved shall offer the Corporation, in writing, the opportunity,
      at
      its own expense, to handle and defend the same.

    

    10.    Application
      of Funds

    

    The
      proceeds received by the Corporation from the sale of common stock pursuant
      to
      the exercise of Options will be used for general corporate
      purposes.

    

    11.    No
      Obligation to Exercise Option

    

    The
      granting of an Option shall impose no obligation upon the Optionee to exercise
      such Option.

    

    12.    Notices

    

    All
      notice, requests, demand, and other communications pursuant this Plan shall
      be
      in writing and shall be deemed to have been duly given on the date of service
      if
      served personally on the party to whom notice is to be given, or on the third
      day following the mailing thereof to the party to whom notice is to be given,
      by
      first class mail, registered or certified, postage prepaid.

    

    13.    Financial
      Statements

    

    Optionees
      under this Plan have the right to receive, upon request, annual financial
      statements regarding the Corporation during the period the options are
      outstanding.

    

    The
      foregoing Incentive and Nonstatutory Stock Option Plan was duly adopted and
      approved by the Board of Directors on February 1, 2007, and approved by the
      shareholders of the Corporation on February 1, 2007.

     

    
      	 	/s/ Peter
              Wright                                                 
	 	Peter Wright,
              Secretary

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    DON
      MARCOS TRADING CO.

     

    NONSTATUTORY
      STOCK OPTION AGREEMENT

    

    THIS
      STOCK OPTION AGREEMENT is made and entered into as of this ____ day of
      ______________, ____, by and between Don Marcos Trading Co., a Florida
      corporation (“Company”), and ________________________________ (referred to
      herein as the “Optionee”), with reference to the following recitals of
      facts:

    

    WHEREAS,
      the Board has authorized the granting to Optionee of a nonstatutory stock option
      (“Option”) to purchase shares of common stock of the Company (the “Shares”) upon
      the terms and conditions hereinafter stated; and

    

    WHEREAS,
      the Board and stockholders of the Company have heretofore adopted a 2007
      Incentive and Nonstatutory Stock Option Plan (the “Plan”), pursuant to which
      this Option is being granted;

    

    WHEREAS,
      it is the intention of the parties that this Option be a Nonstatutory Stock
      Option;

    

    NOW,
      THEREFORE, in consideration of the covenants herein set forth, the parties
      hereto agree as follows:

    

    1.    Shares;
      Price.
      The
      Company hereby grants to Optionee the right to purchase, upon and subject to
      the
      terms and conditions herein stated, ___________ Shares for cash (or other
      consideration acceptable to the Board of Directors of the Company, in their
      sole
      and absolute discretion) at the price of $____ per Share, such price being
      determined in accordance with the Plan.

    

    2.    Term
      of Option; Continuation of Employment.
      This
      Option shall expire, and all rights hereunder to purchase the Shares shall
      terminate, ten years from the date hereof. This Option shall earlier terminate
      as set forth in Paragraphs 5 and 6 hereof. Nothing contained herein shall be
      construed to interfere in any way with the right of the Company to terminate
      the
      employment or engagement, as applicable, of Optionee or to increase or decrease
      the compensation of Optionee from the rate in existence at the date
      hereof.

    

    3.    Vesting
      of Option.
      Subject
      to the provisions of Paragraphs 5 and 6 hereof, this Option shall vest and
      become exercisable during the term of Optionee's employment or engagement in
      whole or in part beginning on the date of this Agreement. 

    

    4.    Exercise.
      In
      order to exercise this Option with respect to all or any part of the Shares
      for
      which this Option is at the time exercisable, Optionee must take the following
      actions: 

    

    (a)    Execute
      and deliver to the Company a written notice of exercise stating the number
      of
      Shares being purchased (in whole shares only) and such other information set
      forth on the form of Notice of Exercise attached hereto as Appendix A; and
      

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b)    Pay
      the
      aggregate Exercise Price for the purchased shares in one or more of the
      following forms: 

    

    
      	(i)            	
              Cash
                or check made payable to the Company;
                or

            

    

    

    (ii)    A
      promissory note payable to the Company, but only to the extent authorized by
      the
      Company.

    

    Should
      the Common Stock be registered under Section 12 of the Securities Exchange
      Act
      of 1934, as amended (the “Exchange Act”) at the time the Option is exercised,
      then the Exercise Price may also be paid as follows: 

    

    (iii)    In
      shares
      of Common Stock held by Optionee for the requisite period necessary to avoid
      a
      charge to the Company’s earnings for financial reporting purposes and valued at
      Fair Market Value on the Exercise Date; or

    

    (iv)    To
      the
      extent the Option is exercised for vested Shares, through a special sale and
      remittance procedure pursuant to which Optionee shall concurrently provide
      irrevocable instructions (a) to a Company-approved brokerage firm to effect
      the
      immediate sale of the purchased shares and remit to the Company, out of the
      sale
      proceeds available on the settlement date, sufficient funds to cover the
      aggregate Exercise Price payable for the purchased shares plus all applicable
      Federal, State and local income and employment taxes required to be withheld
      by
      the Company by reason of such exercise; and (b) to the Company to deliver the
      certificates for the purchased shares directly to such brokerage firm in order
      to complete the sale (a “cashless exercise transaction”).

    

    (v)    Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      the Company’s Common Stock is greater than the Exercise Price (at the date of
      calculation as set forth below), in lieu of exercising this Option by payment
      of
      cash, the Optionee may elect to receive shares equal to the value (as determined
      below) of this Option (or the portion thereof being canceled) by surrender
      of
      this Option at the principal office of the Company together with the properly
      endorsed Notice of Exercise in which event the Company shall issue to the
      Optionee a number of shares of Common Stock computed using the following formula
      (a “net issuance transaction”):

    

    X
      =
Y
      (A-B)

    A

    Where X
      =    the
      number of shares of Common Stock to be issued to the Optionee

    
      	 	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable under the Option or,
                if only
                a portion of the Option is being exercised, the portion of the Option
                being canceled (at the date of such
                calculation)

            

    

    
      	 	 	 

      	 	
              A
                =

            	
              the
                Fair Market Value of one share of the Company’s Common Stock (at the date
                of such calculation)

            

    

     

    
      	 	
              B
                =

            	
              Exercise
                Price (as adjusted to the date of such
                calculation)

            

    

     

    For
      purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended,
      understood and acknowledged that the Common Stock issuable upon exercise of
      this
      Option in a net issuance transaction shall be deemed to have been acquired
      at
      the time this Option was issued. Moreover, it is intended, understood and
      acknowledged that the holding period for the Common Stock issuable upon exercise
      of this Option in a net issuance transaction shall be deemed to have commenced
      on the date this Option was issued. 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (c)    Execute
      and deliver to the Company such written representations as may be requested
      by
      the Company in order for it to comply with the applicable requirements of
      Federal and state securities laws.

    

    (d)    Make
      appropriate arrangements with the Company (or Parent or Subsidiary employing
      or
      retaining Optionee) for the satisfaction of all Federal, State and local income
      and employment tax withholding requirements applicable to the Option exercise,
      if any. 

     

    (e)    If
      requested, execute and deliver to the Company a written statement as provided
      for in Paragraph 11 hereof. 

    

    5.    Termination
      of Employment or Engagement.
      If
      Optionee shall cease to serve as an employee, director, or consultant of the
      Company for any reason, whether voluntarily or involuntarily, Optionee shall
      have the right, during the remaining term of the Option, to exercise in whole
      or
      in part this Option to the extent, but only to the extent, that this Option
      was
      exercisable as of the last day of employment or engagement, as applicable,
      and
      had not previously been exercised. The Option may be exercised only with respect
      to installments that the Optionee could have exercised at the date of
      termination of employment or engagement. 

    

    Notwithstanding
      anything herein to the contrary, all rights under this Option shall expire
      in
      any event on the date specified in Paragraph 2 hereof.

    

    6.    Death
      of Optionee.
      If the
      Optionee shall die while an employee, director, or consultant of the Company,
      Optionee’s personal representative or the person entitled to Optionee’s rights
      hereunder may at any time during the remaining term of this Option, exercise
      this Option and purchase Shares to the extent, but only to the extent, that
      Optionee could have exercised this Option as of the date of Optionee’s death;
      provided, in any case, that this Option may be so exercised only to the extent
      that this Option has not previously been exercised by Optionee.

    

    7.    No
      Rights as Stockholder.
      Optionee shall have no rights as a stockholder with respect to the Shares
      covered by any installment of this Option until the date of the issuance of
      a
      stock certificate to Optionee, and no adjustment will be made for dividends
      or
      other rights for which the record date is prior to the date such stock
      certificate or certificates are issued except as provided in Paragraph 8
      hereof.

    

    8.    Recapitalization.
      Subject
      to any required action by the stockholders of the Company, the number of Shares
      covered by this Option, and the price per Share thereof, shall be
      proportionately adjusted for any increase in the number of issued Shares
      resulting from a forward split of shares or the payment of a stock dividend,
      or
      any other increase in the number of such shares affected without receipt of
      consideration by the Company; provided however that the conversion of any
      convertible securities of the Company shall not be deemed having been “effected
      without receipt of consideration by the Company.” The number of Shares covered
      by this Option, and the price per Share thereof, shall not be affected or
      adjusted for any decrease in the number of issued shares of common stock of
      the
      Company resulting from a reverse split of shares, or any other decrease in
      the
      number of such shares affected.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    In
      the
      event of a proposed dissolution or liquidation of the Company, a merger or
      consolidation in which the Company is not the surviving entity, or a sale of
      all
      or substantially all of the assets of the Company, this Option shall terminate
      immediately prior to the consummation of such proposed action, unless otherwise
      provided by the Board. The Board may, at its sole and absolute discretion and
      without obligation, declare that this Option shall terminate as of a date fixed
      by the Board and grant Optionee the right for a period commencing 30 days prior
      to and ending immediately prior to such date, or during the remaining term
      of
      this Option, whichever occurs sooner, to exercise this Option as to all or
      any
      part of the Shares, without regard to the installment provision of Paragraph
      3;
      provided, however, that such exercise shall be subject to the consummation
      of
      such dissolution, liquidation, merger, consolidation or sale.

    

    Subject
      to any required action by the stockholders of the Company, if the Company shall
      be the surviving entity in any merger or consolidation, this Option thereafter
      shall pertain to and apply to the securities to which a holder of Shares equal
      to the Shares subject to this Option would have been entitled by reason of
      such
      merger or consolidation, and the vesting provisions of Section 3 shall continue
      to apply.

    

    In
      the
      event of a change in the Shares of the Company as presently constituted, which
      is limited to a change of all of its authorized Shares without par value into
      the same number of Shares with a par value, the Shares resulting from any such
      change shall be deemed to be the Shares within the meaning of this
      Agreement.

    

    To
      the
      extent that the foregoing adjustments relate to shares or securities of the
      Company, such adjustments shall be made by the Board, whose determination in
      that respect shall be final, binding and conclusive. Except as hereinbefore
      expressly provided, Optionee shall have no rights by reason of any subdivision
      or consolidation of share of stock of any class or the payment of any stock
      dividend or any other increase or decrease in the number of shares of stock
      of
      any class, and the number and price of shares subject to this Option shall
      not
      be affected by, and no adjustments shall be made by reason of, any dissolution,
      liquidation, merger or consolidation, or any issue by the Company of shares
      of
      stock of any class or securities convertible into shares of stock of any
      class.

    

    The
      grant
      of this Option shall not affect in any way the right or power of the Company
      to
      make adjustments, reclassifications, reorganizations or changes in its capital
      or business structure or to merge, consolidate, dissolve or liquidate or to
      sell
      or transfer all or any part of its business or assets.

    

    9.    Taxation
      upon Exercise of Option.
      Optionee understands that, upon exercise of this Option, Optionee may recognize
      income, for federal and state income tax purposes, in an amount equal to the
      amount by which the fair market value of the Shares, determined as of the date
      of exercise, exceeds the exercise price. The acceptance of the Shares by
      Optionee shall constitute an agreement by Optionee to report such income in
      accordance with then applicable law and to cooperate with Company in
      establishing the amount of such income and corresponding deduction to the
      Company for its income tax purposes. Withholding for federal or state income
      and
      employment tax purposes will be made, if and as required by law, from Optionee's
      then current compensation, or, if such current compensation is insufficient
      to
      satisfy withholding tax liability, the Company may require Optionee to make
      cash
      payment to cover such liability as a condition of the exercise of this
      Option.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    10.    Modification,
      Extension and Renewal of Options.
      The
      Board may modify, extend or renew this Option or accept the surrender thereof
      (to the extent not theretofore exercised) and authorize the granting of a new
      option in substitution therefore (to the extent not theretofore exercised),
      subject at all times to the Plan. Notwithstanding the foregoing provisions
      of
      this Paragraph 10, no modification shall, without the consent of the Optionee,
      alter to the Optionee's detriment or impair any rights of Optionee
      hereunder.

    

    11.    Investment
      Intent; Restrictions on Transfer.
      Optionee represents and agrees that if Optionee exercises this Option in whole
      or in part, Optionee will in each case acquire the Shares upon such exercise
      for
      the purpose of investment and not with a view to, or for resale in connection
      with, any distribution thereof; and that upon such exercise of this Option
      in
      whole or in part, Optionee (or any person or persons entitled to exercise this
      Option under the provisions of Paragraphs 5 and 6 hereof) shall furnish to
      the
      Company a written statement to such effect, satisfactory to the Company in
      form
      and substance. The Company, at its option, may include a legend on each
      certificate representing Shares issued pursuant to any exercise of this Option,
      stating in effect that such Shares have not been registered under the Securities
      Act of 1933, as amended (the “Act”), and that the transferability thereof is
      restricted. If the Shares represented by this Option are registered under the
      Act, either before or after the exercise of this Option in whole or in part,
      the
      Optionee shall be relieved of the foregoing investment representation and
      agreement and shall not be required to furnish the Company with the foregoing
      written statement.

    

    Optionee
      further represents that Optionee has had access to the financial statements
      or
      books and records of the Company, has had the opportunity to ask questions
      of
      the Company concerning its business, operations and financial condition, and
      to
      obtain additional information reasonably necessary to verify the accuracy of
      such information, and further represents that Optionee has either such
      experience and knowledge in investment, financial and business matters or has
      investments similar to the stock of the Company such that Optionee is capable
      of
      evaluating the merits and risks thereof and has the capacity to protect his
      or
      her own interest in connection therewith. 

    

    12.    Notices.
      Any
      notice required to be given pursuant to this Option or the Plan shall be in
      writing and shall be deemed to be delivered upon receipt or, in the case of
      notices by the Company, five days after deposit in the US. Mail, postage
      prepaid, addressed to Optionee at the address last provided to the Company
      by
      Optionee for his or her employee records.

    

    13.    Agreement
      Subject to Plan; Applicable Law.
      This
      Agreement is made pursuant to the Plan and shall be interpreted to comply
      therewith. A copy of such Plan is available to Optionee, at no charge, at the
      principal office of the Company. Any provision of this Agreement inconsistent
      with the Plan shall be considered void and replaced with the applicable
      provision of the Plan. This Agreement has been granted, executed and delivered
      in the State of Florida, and the interpretation and enforcement shall be
      governed by the laws thereof and subject to the exclusive jurisdiction of the
      courts therein.

     

    
      [SIGNATURE
        PAGE FOLLOWS]

       

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first above written.

     

    

    
      	 	
              Don Marcos Trading Co.

               

              /s/ Earl T.
                Shannon                                          

              BY:
                Earl T. Shannon

              ITS:
                President

            
	 	 
	 	 
	 	 
	 	
              ________________________________

              ,
                Optionee

            

    

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Appendix
      A

     

    NOTICE
      OF EXERCISE

    

    Don
      Marcos Trading Co.

    1850
      Southeast 17th
      Street,
      Ste. 300

    Ft.
      Lauderdale, FL 33316

    

    

    (1)    o    The
      undersigned hereby elects to purchase ________ shares of the Common Stock of
      Don
      Marcos Trading Co., Inc. (the “Company”) pursuant to the terms of the attached
      Option and tenders herewith payment of the exercise price in full, together
      with
      all applicable transfer taxes, if any.

     

    o The
      undersigned hereby elects to purchase ________ shares of the Common Stock of
      the
      Company pursuant to the terms of the cashless exercise provisions set forth
      in
      Section 4(b)(iv) of the attached Option, and shall tender payment of all
      applicable transfer taxes, if any.

     

    (2)    Please
      issue a certificate or certificates representing said shares of Common Stock
      in
      the name of the undersigned or in such other name as is specified
      below:

     

    ________________________

    (Name)

     

    ________________________

    ________________________

    (Address)

     

    (3)    The
      undersigned represents that (i) the aforesaid shares of Common Stock are being
      acquired for the account of the undersigned for investment and not with a view
      to, or for resale in connection with, the distribution thereof and that the
      undersigned has no present intention of distributing or reselling such shares;
      (ii) the undersigned is aware of the Company’s business affairs and financial
      condition and has acquired sufficient information about the Company to reach
      an
      informed and knowledgeable decision regarding its investment in the Company;
      (iii) the undersigned is experienced in making investments of this type and
      has
      such knowledge and background in financial and business matters that the
      undersigned is capable of evaluating the merits and risks of this investment
      and
      protecting the undersigned’s own interests; (iv) the undersigned understands
      that the shares of Common Stock issuable upon exercise of this Option have
      not
      been registered under the Securities Act of 1933, as amended (the “Act”), by
      reason of a specific exemption from the registration provisions of the Act,
      which exemption depends upon, among other things, the bona fide nature of the
      investment intent as expressed herein, and, because such securities have not
      been registered under the Act, they must be held indefinitely unless
      subsequently registered under the Act or an exemption from such registration
      is
      available; (v) the undersigned is aware that the aforesaid shares of Common
      Stock may not be sold pursuant to Rule 144 adopted under the Act unless certain
      conditions are met and until the undersigned has held the shares for the number
      of years prescribed by Rule 144, that among the conditions for use of the Rule
      is the availability of current information to the public about the Company
      and
      the Company has not made such information available and has no present plans
      to
      do so; and (vi) the undersigned agrees not to make any disposition of all or
      any
      part of the aforesaid shares of Common Stock unless and until there is then
      in
      effect a registration statement under the Act covering such proposed disposition
      and such disposition is made in accordance with said registration statement,
      or
      the undersigned has provided the Company with an opinion of counsel satisfactory
      to the Company, stating that such registration is not required.

     

    
      	
              _________________________________

              (Date)

               

            	
              _________________________________

              (Signature)

               

              _________________________________

              (Print
                name)

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    DON
      MARCOS TRADING CO.

     

    INCENTIVE
      STOCK OPTION AGREEMENT

    

    THIS
      INCENTIVE STOCK OPTION AGREEMENT is made and entered into as of this ____ day
      of
      ______________, ____, by and between Don Marcos Trading Co., a Florida
      corporation (“Company”), and _____________________________ (referred to herein
      as the “Optionee”), with reference to the following recitals of
      facts:

    

    WHEREAS,
      the Board has authorized the granting to Optionee of an incentive stock option
      (“Option”) to purchase shares of common stock of the Company (the “Shares”) upon
      the terms and conditions hereinafter stated; and

    

    WHEREAS,
      the Board and stockholders of the Company have heretofore adopted a 2007
      Incentive and Nonstatutory Stock Option Plan (the “Plan”), pursuant to which
      this Option is being granted;

    

    WHEREAS,
      it is the intention of the parties that this Option be an Incentive Stock Option
      (a “Qualified Stock Option”);

    

    NOW,
      THEREFORE, in consideration of the covenants herein set forth, the parties
      hereto agree as follows:

    

    1.    Shares;
      Price.
      The
      Company hereby grants to Optionee the right to purchase, upon and subject to
      the
      terms and conditions herein stated, _______ Shares for cash (or other
      consideration acceptable to the Board of Directors of the Company, in their
      sole
      and absolute discretion) at the price of $____ per Share, such price being
      not
      less than the fair market value per share of the Shares covered by these Options
      as of the date hereof and as determined by the Board of Directors of the
      Company.

    

    2.    Term
      of Option; Continuation of Employment.
      This
      Option shall expire, and all rights hereunder to purchase the Shares shall
      terminate, ten years from the date hereof. This Option shall earlier terminate
      as set forth in Paragraphs 5 and 6 hereof. Nothing contained herein shall be
      construed to interfere in any way with the right of the Company to terminate
      the
      employment or engagement, as applicable, of Optionee or to increase or decrease
      the compensation of Optionee from the rate in existence at the date
      hereof.

    

    3.    Vesting
      of Option.
      Subject
      to the provisions of Paragraphs 5 and 6 hereof, this Option shall vest and
      become exercisable during the term of Optionee's employment or engagement in
      whole or in part beginning on the date of this Agreement.

    

    4.    Exercise.
      In
      order to exercise this Option with respect to all or any part of the Shares
      for
      which this Option is at the time exercisable, Optionee must take the following
      actions: 

    

    (a)    Execute
      and deliver to the Company a written notice of exercise stating the number
      of
      Shares being purchased (in whole shares only) and such other information set
      forth on the form of Notice of Exercise attached hereto as Appendix A; and
      

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (b)    Pay
      the
      aggregate Exercise Price for the purchased shares in one or more of the
      following forms: 

    

    
      	(i)         
                	
              Cash
                or check made payable to the Company;
                or

            

    

    

    (ii)    A
      promissory note payable to the Company, but only to the extent authorized by
      the
      Company.

    

    Should
      the Common Stock be registered under Section 12 of the Securities Exchange
      Act
      of 1934, as amended (the “Exchange Act”) at the time the Option is exercised,
      then the Exercise Price may also be paid as follows: 

     

    (iii)    In
      shares
      of Common Stock held by Optionee for the requisite period necessary to avoid
      a
      charge to the Company’s earnings for financial reporting purposes and valued at
      Fair Market Value on the Exercise Date; or

     

    (iv)    To
      the
      extent the Option is exercised for vested Shares, through a special sale and
      remittance procedure pursuant to which Optionee shall concurrently provide
      irrevocable instructions (a) to a Company-approved brokerage firm to effect
      the
      immediate sale of the purchased shares and remit to the Company, out of the
      sale
      proceeds available on the settlement date, sufficient funds to cover the
      aggregate Exercise Price payable for the purchased shares plus all applicable
      Federal, State and local income and employment taxes required to be withheld
      by
      the Company by reason of such exercise; and (b) to the Company to deliver the
      certificates for the purchased shares directly to such brokerage firm in order
      to complete the sale (a “cashless exercise transaction”). 

     

    (v)    Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      the Company’s Common Stock is greater than the Exercise Price (at the date of
      calculation as set forth below), in lieu of exercising this Option by payment
      of
      cash, the Optionee may elect to receive shares equal to the value (as determined
      below) of this Option (or the portion thereof being canceled) by surrender
      of
      this Option at the principal office of the Company together with the properly
      endorsed Notice of Exercise in which event the Company shall issue to the
      Optionee a number of shares of Common Stock computed using the following formula
      (a “net issuance transaction”):

    

    X
      =
Y
      (A-B)

    A

     

    Where X
      = the
      number of shares of Common Stock to be issued to the Optionee

    
      	 	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable under the Option or,
                if only
                a portion of the Option is being exercised, the portion of the Option
                being canceled (at the date of such
                calculation)

            

    

     

    
      	 	
              A
                =

            	
              the
                Fair Market Value of one share of the Company’s Common Stock (at the date
                of such calculation)

            

    

     

    
      	 	
              B
                =

            	
              Exercise
                Price (as adjusted to the date of such
                calculation)

            

    

     

    For
      purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended,
      understood and acknowledged that the Common Stock issuable upon exercise of
      this
      Option in a net issuance transaction shall be deemed to have been acquired
      at
      the time this Option was issued. Moreover, it is intended, understood and
      acknowledged that the holding period for the Common Stock issuable upon exercise
      of this Option in a net issuance transaction shall be deemed to have commenced
      on the date this Option was issued. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (c)    Execute
      and deliver to the Company such written representations as may be requested
      by
      the Company in order for it to comply with the applicable requirements of
      Federal and State securities laws.

     

    (d)    Make
      appropriate arrangements with the Company (or Parent or Subsidiary employing
      or
      retaining Optionee) for the satisfaction of all Federal, State and local income
      and employment tax withholding requirements applicable to the Option exercise,
      if any. 

     

    (e)    If
      requested, execute and deliver to the Company a written statement as provided
      for in Paragraph 11 hereof. 

     

    5.    Termination
      of Employment or Engagement.
      If
      Optionee shall cease to serve as an employee of the Company for any reason,
      whether voluntarily or involuntarily, Optionee shall have the right, during
      the
      remaining term of the Option, to exercise in whole or in part this Option to
      the
      extent, but only to the extent, that this Option was exercisable as of the
      last
      day of employment, and had not previously been exercised. The Option may be
      exercised only with respect to installments that the Optionee could have
      exercised at the date of termination of employment.

    

    Notwithstanding
      anything herein to the contrary, all rights under this Option shall expire
      in
      any event on the date specified in Paragraph 2 hereof.

    

    6.    Death
      of Optionee.
      If the
      Optionee shall die while an employee of the Company, Optionee’s personal
      representative or the person entitled to Optionee’s rights hereunder may at any
      time during the remaining term of this Option, exercise this Option and purchase
      Shares to the extent, but only to the extent, that Optionee could have exercised
      this Option as of the date of Optionee’s death; provided, in any case, that this
      Option may be so exercised only to the extent that this option has not
      previously been exercised by Optionee.

    

    7.    No
      Rights as Stockholder.
      Optionee shall have no rights as a stockholder with respect to the Shares
      covered by any installment of this Option until the date of the issuance of
      a
      stock certificate to Optionee, and no adjustment will be made for dividends
      or
      other rights for which the record date is prior to the date such stock
      certificate or certificates are issued except as provided in Paragraph 8
      hereof.

    

    8.    Recapitalization.
      Subject
      to any required action by the stockholders of the Company, the number of Shares
      covered by this Option, and the price per Share thereof, shall be
      proportionately adjusted for any increase in the number of issued Shares
      resulting from a forward split of shares or the payment of a stock dividend,
      or
      any other increase in the number of such shares affected without receipt of
      consideration by the Company; provided however that the conversion of any
      convertible securities of the Company shall not be deemed having been “effected
      without receipt of consideration by the Company.” The number of Shares covered
      by this Option, and the price per Share thereof, shall not be affected or
      adjusted for any decrease in the number of issued shares of common stock of
      the
      Company resulting from a reverse split of shares, or any other decrease in
      the
      number of such shares affected.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    In
      the
      event of a proposed dissolution or liquidation of the Company, a merger or
      consolidation in which the Company is not the surviving entity, or a sale of
      all
      or substantially all of the assets of the Company, this Option shall terminate
      immediately prior to the consummation of such proposed action, unless otherwise
      provided by the Board. The Board may, at its sole and absolute discretion and
      without obligation, declare that this Option shall terminate as of a date fixed
      by the Board and grant Optionee the right for a period commencing 30 days prior
      to and ending immediately prior to such date, or during the remaining term
      of
      this Option, whichever occurs sooner, to exercise this Option as to all or
      any
      part of the Shares, without regard to the installment provision of Paragraph
      3;
      provided, however, that such exercise shall be subject to the consummation
      of
      such dissolution, liquidation, merger, consolidation or sale.

    

    Subject
      to any required action by the stockholders of the Company, if the Company shall
      be the surviving entity in any merger or consolidation, this Option thereafter
      shall pertain to and apply to the securities to which a holder of Shares equal
      to the Shares subject to this Option would have been entitled by reason of
      such
      merger or consolidation, and the vesting provisions of Section 3 shall continue
      to apply.

    

    In
      the
      event of a change in the Shares of the Company as presently constituted, which
      is limited to a change of all of its authorized Shares without par value into
      the same number of Shares with a par value, the Shares resulting from any such
      change shall be deemed to be the Shares within the meaning of this
      Agreement.

    

    To
      the
      extent that the foregoing adjustments relate to shares or securities of the
      Company, such adjustments shall be made by the Board, whose determination in
      that respect shall be final, binding and conclusive. Except as hereinbefore
      expressly provided, Optionee shall have no rights by reason of any subdivision
      or consolidation of share of stock of any class or the payment of any stock
      dividend or any other increase or decrease in the number of shares of stock
      of
      any class, and the number and price of shares subject to this Option shall
      not
      be affected by, and no adjustments shall be made by reason of, any dissolution,
      liquidation, merger or consolidation, or any issue by the Company of shares
      of
      stock of any class or securities convertible into shares of stock of any
      class.

    

    The
      grant
      of this Option shall not affect in any way the right or power of the Company
      to
      make adjustments, reclassifications, reorganizations or changes in its capital
      or business structure or to merge, consolidate, dissolve or liquidate or to
      sell
      or transfer all or any part of its business or assets.

    

    9.    Taxation
      upon Exercise of Option.
      Optionee understands that, upon exercise of this Option, Optionee may recognize
      income, for federal and state income tax purposes, in an amount equal to the
      amount by which the fair market value of the Shares, determined as of the date
      of exercise, exceeds the exercise price. The acceptance of the Shares by
      Optionee shall constitute an agreement by Optionee to report such income in
      accordance with then applicable law and to cooperate with Company in
      establishing the amount of such income and corresponding deduction to the
      Company for its income tax purposes. Withholding for federal or state income
      and
      employment tax purposes will be made, if and as required by law, from Optionee's
      then current compensation, or, if such current compensation is insufficient
      to
      satisfy withholding tax liability, the Company may require Optionee to make
      cash
      payment to cover such liability as a condition of the exercise of this
      Option.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    10.    Modification,
      Extension and Renewal of Options.
      The
      Board may modify, extend or renew this Option or accept the surrender thereof
      (to the extent not theretofore exercised) and authorize the granting of a new
      option in substitution therefore (to the extent not theretofore exercised),
      subject at all times to the Plan. Notwithstanding the foregoing provisions
      of
      this Paragraph 10, no modification shall, without the consent of the Optionee,
      alter to the Optionee's detriment or impair any rights of Optionee
      hereunder.

    

    11.    Investment
      Intent; Restrictions on Transfer.
      Optionee represents and agrees that if Optionee exercises this Option in whole
      or in part, Optionee will in each case acquire the Shares upon such exercise
      for
      the purpose of investment and not with a view to, or for resale in connection
      with, any distribution thereof; and that upon such exercise of this Option
      in
      whole or in part, Optionee (or any person or persons entitled to exercise this
      Option under the provisions of Paragraphs 5 and 6 hereof) shall furnish to
      the
      Company a written statement to such effect, satisfactory to the Company in
      form
      and substance. The Company, at its option, may include a legend on each
      certificate representing Shares issued pursuant to any exercise of this Option,
      stating in effect that such Shares have not been registered under the Securities
      Act of 1933, as amended (the “Act”), and that the transferability thereof is
      restricted. If the Shares represented by this Option are registered under the
      Act, either before or after the exercise of this Option in whole or in part,
      the
      Optionee shall be relieved of the foregoing investment representation and
      agreement and shall not be required to furnish the Company with the foregoing
      written statement.

    

    Optionee
      further represents that optionee has had access to the financial statements
      or
      books and records of the Company, has had the opportunity to ask questions
      of
      the Company concerning its business, operations and financial condition, and
      to
      obtain additional information reasonably necessary to verify the accuracy of
      such information, and further represents that Optionee (either such experience
      and knowledge in investment, financial and business matters in investments
      similar to the stock of the Company that Optionee is capable of evaluating
      the
      merits and risks thereof and has the capacity to protect his or her own interest
      in connection therewith. 

    

    12.    Notices.
      Any
      notice required to be given pursuant to this Option or the Plan shall be in
      writing and shall be deemed to be delivered upon receipt or, in the case of
      notices by the Company, five days after deposit in the US. mail, postage
      prepaid, addressed to Optionee at the address last provided to the Company
      by
      Optionee for his or her employee records.

    

    13.    Agreement
      Subject to Plan; Applicable Law.
      This
      Agreement is made pursuant to the Plan and shall be interpreted to comply
      therewith. A copy of such Plan is available to Optionee, at no charge, at the
      principal office of the Company. Any provision of this Agreement inconsistent
      with the Plan shall be considered void and replaced with the applicable
      provision of the Plan. This Agreement has been granted, executed and delivered
      in the State of Florida, and the interpretation and enforcement shall be
      governed by the laws thereof and subject to the exclusive jurisdiction of the
      courts therein.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first above written.

     

    
      

      
        	 	
                Don Marcos Trading Co.

                 

                /s/ Earl T.
                  Shannon                                          

                BY:
                  Earl T. Shannon

                ITS:
                  President

              
	 	 
	 	 
	 	 
	 	
                ________________________________

                ,
                  Optionee

              

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    

     

    Appendix
      A

    

    NOTICE
      OF EXERCISE

    

    Don
      Marcos Trading Co.

    1850
      Southeast 7th
      Street,
      Ste. 300

    Ft.
      Lauderdale, FL 33316

    

    (1)    o  The
      undersigned hereby elects to purchase ________ shares of the Common Stock of
      Don
      Marcos Trading Co. (the “Company”) pursuant to the terms of the attached Option
      and tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    o The
      undersigned hereby elects to purchase ________ shares of the Common Stock of
      the
      Company pursuant to the terms of the cashless exercise provisions set forth
      in
      Section 4(b)(iv) of the attached Option, and shall tender payment of all
      applicable transfer taxes, if any.

     

    (2)    Please
      issue a certificate or certificates representing said shares of Common Stock
      in
      the name of the undersigned or in such other name as is specified
      below:

     

    ________________________

    (Name)

     

    ________________________

    ________________________

    (Address)

     

    (3)    The
      undersigned represents that (i) the aforesaid shares of Common Stock are being
      acquired for the account of the undersigned for investment and not with a view
      to, or for resale in connection with, the distribution thereof and that the
      undersigned has no present intention of distributing or reselling such shares;
      (ii) the undersigned is aware of the Company’s business affairs and financial
      condition and has acquired sufficient information about the Company to reach
      an
      informed and knowledgeable decision regarding its investment in the Company;
      (iii) the undersigned is experienced in making investments of this type and
      has
      such knowledge and background in financial and business matters that the
      undersigned is capable of evaluating the merits and risks of this investment
      and
      protecting the undersigned’s own interests; (iv) the undersigned understands
      that the shares of Common Stock issuable upon exercise of this Option have
      not
      been registered under the Securities Act of 1933, as amended (the “Act”), by
      reason of a specific exemption from the registration provisions of the Act,
      which exemption depends upon, among other things, the bona fide nature of the
      investment intent as expressed herein, and, because such securities have not
      been registered under the Act, they must be held indefinitely unless
      subsequently registered under the Act or an exemption from such registration
      is
      available; (v) the undersigned is aware that the aforesaid shares of Common
      Stock may not be sold pursuant to Rule 144 adopted under the Act unless certain
      conditions are met and until the undersigned has held the shares for the number
      of years prescribed by Rule 144, that among the conditions for use of the Rule
      is the availability of current information to the public about the Company
      and
      the Company has not made such information available and has no present plans to
      do so; and (vi) the undersigned agrees not to make any disposition of all or
      any
      part of the aforesaid shares of Common Stock unless and until there is then
      in
      effect a registration statement under the Act covering such proposed disposition
      and such disposition is made in accordance with said registration statement,
      or
      the undersigned has provided the Company with an opinion of counsel satisfactory
      to the Company, stating that such registration is not required.

     

    
      
        	
                _________________________________

                (Date)

                 

              	
                _________________________________

                (Signature)

                 

                _________________________________

                (Print
                  name)

              

      

    

     

     

     

    22Distributorship Agreement

    Exhibit
      10.3

     

    DISTRIBUTORSHIP
      AGREEMENT

     

    THIS
      DISTRIBUTORSHIP AGREEMENT (“Agreement”) is entered into as of this
      23rd
      day of
      January, 2003, by and between Don Marcos Trading Co., a Florida corporation,
      (“Distributor”) and Don Marcos Coffee Company, S.A., a Costa Rica corporation
      (“Supplier”). Distributor and Supplier may sometimes be referred to individually
      as the “Party” and collectively as the “Parties.”

    

    RECITALS

    

    WHEREAS,
      Supplier is engaged in the manufacture, production, and supply of coffee (the
      “Products”) and desires to grant Distributor the exclusive right to sell and
      distribute the Products within the Territory (as defined in Section 1.02) on
      the
      terms and conditions set forth below; and

    

    WHEREAS,
      Distributor possesses the ability to promote the sale of the Products and
      desires to develop demand for and sell the Products within the Territory;
      and

    

    WHEREAS,
      Supplier is the owner of all right, title, and interest in and to the trademark
      “Don Marcos,” (the “Mark”), as more fully defined below; and 

    

    WHEREAS,
      Distributor desires to acquire, in accordance with the terms and conditions
      of
      this Agreement the exclusive license to use the Mark as set forth
      below.

    

    NOW
      THEREFORE, in consideration of the foregoing Recitals which are incorporated
      into the operative provisions of this Agreement by this reference, and for
      other
      good and valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, the Parties hereto agree as follows:

    

    ARTICLE
      1.

    GRANT
      OF DISTRIBUTION RIGHTS

    

    1.01    Exclusive
      Grant.
      On the
      terms and subject to the conditions contained herein, Supplier hereby grants
      to
      Distributor the exclusive right to sell and distribute Products in the
      Territory. Distributor accepts the appointment to market, sell, and distribute
      Products in the Territory, and shall use its best efforts to promote the sale
      and distribution of Products in the Territory. During the term of this
      Agreement, Supplier shall not, either directly or indirectly, appoint or use
      any
      person or entity other than Distributor for the marketing, sale or distribution
      of Products in the Territory.

     

    1.02    Territory.
      For
      purposes of this Agreement “Territory” shall mean the United States and all
      other countries and regions of the world.

     

    1.03    Products.
      For
      purposes of this Agreement “Products” shall mean all products manufactured,
      produced, or sold by Supplier.

     

    1.04    Subdistributors.
      Distributor may appoint subdistributors within the Territory for the
      distribution and sale of Products within the Territory. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      2.

    PRICE
      AND TERMS

     

    2.01    Price.
      The
      Products and their prices shall be as set forth on Exhibit A. Supplier shall
      have the right in its sole discretion to change, discontinue, or add to the
      Products or to change any price for a Product listed on Exhibit A by providing
      Distributor with thirty (30) days prior written notice of such change. A price
      increase shall not apply to orders placed by Distributor before the notice
      date
      of the price increase, unless such order requests delivery more than thirty
      (30)
      days after the date of acceptance of the order. Distributor shall not be bound
      to sell Products to its customers at the prices specified on Exhibit A, or
      at
      any other prices suggested by Supplier.

     

    2.02    Orders.
      Each
      order submitted by Distributor shall be for no less than two hundred dollars
      ($200) of Products. Distributor shall order Products from Supplier by written
      purchase order specifying, at a minimum, the Products ordered, the price for
      the
      Products, and the requested delivery date. Supplier shall use its best efforts
      to deliver the Products by the delivery date stated in the purchase order,
      and
      shall advise Distributor in advance of any inability to make timely delivery
      of
      any Products ordered by Distributor. 

     

    2.03    Payment.
      Distributor shall pay Supplier for Products in cash or immediately available
      funds Net 30 days from date of Distributor’s receipt of Products. Distributor’s
      payments for Products shall be in U.S. dollars unless the Parties have agreed
      to
      payment in another currency.

     

    2.04    Taxes.
      Distributor shall be solely responsible for the payment of any tax, duty or
      other charge imposed by any state, locality or other governmental entity in
      relation to the sale, transportation, manufacture, ownership, distribution
      or
      use of Products.

     

    2.05    Delivery.
      Supplier shall deliver all goods to Distributor’s designated carrier for
      transportation to Distributor’s designated destination. All costs of
      transportation shall be borne by Distributor, and all risks of loss or damage
      shall pass to Distributor when the goods are delivered to Distributor at
      Distributor’s destination. 

    

    ARTICLE
      3.

    TERM
      AND TERMINATION

    

    3.01    Term.
      This
      Agreement shall commence on the date first written above (the “Effective Date”)
      and shall extend for a period of five years. Following the initial term, this
      Agreement shall be renewed automatically in five year terms, with no further
      action of the Parties necessary, unless either Party terminates by written
      notice to the other no less than ninety days before the end of a
      term.

     

    3.02    Termination.
      In the
      event that either Party is in default of any term or condition of this Agreement
      or fails to perform any obligation under this Agreement and such default or
      failure continues unremedied for fifteen (15) days after receipt of written
      notice, the other Party may terminate the Agreement on written
      notice.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.03    Automatic
      Termination.
      This
      Agreement terminates automatically, with no further act or action of either
      Party, if a receiver is appointed for the other Party or its property, or the
      other Party makes an assignment for the benefit of its creditors, or any
      proceedings are commenced by, for or against the other Party under any
      bankruptcy, insolvency or debtor's relief law, or Supplier is liquidated or
      dissolved.

     

    3.04    Effect
      of Termination.
      In the
      event of termination, this Agreement shall remain applicable to any orders
      for
      Products that Distributor has previously placed and to any other orders that
      may
      be executed subsequent to the effective date of termination.

    

    ARTICLE
      4.

    INSPECTION
      AND WARRANTY

    

    4.01    Inspection.
      Distributor shall inspect the Products immediately on their arrival and shall
      within thirty (30) days of their arrival give written notice to Supplier of
      any
      claim that the Products are defective, damaged or in short supply. If
      Distributor shall fail to give such notice, the Products shall be deemed to
      conform with the terms of the Agreement, and Distributor shall be bound to
      accept and pay for the Products in accordance with the terms of the Agreement.
      Supplier shall have the option in its sole discretion to request either the
      return or the destruction of any Product found upon inspection to be damaged
      or
      defective. Returns of defective or damaged Products shall be at Supplier’s
      expense. Supplier shall replace any such defective or damaged products or make
      whole any short shipment within thirty (30) days of Distributor’s written
      notice. Replacement Products shall be shipped to Distributor at Supplier’s
      expense.

     

    4.02    Limited
      Warranty.
      Supplier warrants that the Products shall be free of defects in materials and
      workmanship for a period of one year from date of delivery to Distributor.
      THIS
      WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED INCLUDING
      THE
      WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     

    4.03    Limitation
      of Liability.
      IN NO
      EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL,
      PUNITIVE OR SPECIAL DAMAGES, INCLUDING LOST PROFITS, SUSTAINED OR INCURRED
      IN
      CONNECTION WITH THE PRODUCTS OR CAUSED BY PRODUCT DEFECTS, REGARDLESS OF THE
      FORM OF ACTION, WHETHER BY BREACH OF CONTRACT OR TORT, INCLUDING NEGLIGENCE
      AND
      STRICT LIABILITY OR OTHERWISE, AND WHETHER OR NOT SUCH DAMAGES WERE FORESEEN
      OR
      UNFORESEEN.

     

    4.04    Indemnifications.
      Distributor shall defend, indemnify and hold Supplier harmless from and against
      any and all claims, costs, damages and liabilities (including attorneys’ fees)
      incurred by Supplier as a result of any breach of this Agreement by Distributor
      or any negligence by Distributor, its employees or agents. Supplier shall
      defend, indemnify and hold Distributor harmless from and against any and all
      claims, costs, damages and liabilities (including attorneys’ fees) incurred by
      Distributor in relation to any breach of this Agreement by Supplier, any
      negligence of Supplier, any claims of product liability, or any claims that
      a
      Product violates the copyright, trademark or trade secret rights of any third
      party. Such defense, indemnification, and holding harmless shall include direct
      payment or immediate reimbursement of all reasonable legal fees and other costs
      incurred by the indemnified Party and its attorneys in defending against any
      such claims. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      5.

    GENERAL
      TERMS

    

    5.01    Assignment.
      This
      Agreement may not be transferred or assigned by either Party without the prior
      written consent of the other Party. Subject to the foregoing, the provisions
      of
      this Agreement shall inure to the benefit of the Parties’ successor and
      assigns.

     

    5.02    Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with the laws of
      the
      State of California, notwithstanding any choice of law provisions to the
      contrary. 

     

    5.03    Jurisdiction.
      The
      parties submit to the jurisdiction of the Courts of the County of Orange, State
      of California or a Federal Court empanelled in the State of California for
      the
      resolution of all legal disputes arising under the terms of this Agreement,
      including, but not limited to, enforcement of any arbitration
      award.

     

    5.04    Authority.
      Each
      Party executing this Agreement warrants his authority to execute this
      Agreement.

     

    5.05    Relationship
      of the Parties.
      Distributor’s relationship with Supplier during the term of this Agreement shall
      be that of an independent contractor. Neither Party shall have any authority,
      express or implied, to assume or create any obligations, responsibility, or
      liability on behalf of the other or to bind the other in any way whatsoever.
      Each Party shall conduct its business in its own name and be solely responsible
      for its acts, conduct and expenses, and the acts, conduct and expenses of its
      employees and agents.

     

    5.06    Notices.
      Any
      notice, request, instruction, or other document required by the terms of this
      Agreement, or deemed by any of the Parties hereto to be desirable, to be given
      to any other party hereto shall be in writing and shall be given by personal
      delivery, overnight delivery, or mailed by registered or certified mail, postage
      prepaid, with return receipt requested, to the addresses of the Parties as
      follows:

     

    
      	 	
              (a)

            	
              To: “Supplier”

            	
              Don Marcos Coffee Company, S.A.

              POB 1217-1007

              Centro Colon

              Costa Rica

              Attn: Mark E. Tupper

            
	 	 	 	 
	 	(b)	To: “Distributor”	
              Don Marcos Trading Co.

              140 Royal Palm Way, Suite 202

              Palm Beach, Florida 33480

              Attn: Earl
                T. Shannon, President

            
	 	 	 	 
	 	(c)	With Copy To:	
              Oswald & Yap

              16148
                Sand Canyon Avenue

              Irvine,
                California 92618

              Fax:
                 (949)
                788-8980

              Attn:
                 Lynne
                Bolduc, Esq.

            

    

            

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The
      persons and addresses set forth above may be changed from time to time by a
      notice sent as aforesaid. If notice is given by personal delivery or overnight
      delivery in accordance with the provisions of this Section, said notice shall
      be
      conclusively deemed given at the time of such delivery provided a receipt is
      obtained from the recipient. If notice is given by mail in accordance with
      the
      provisions of this Section, such notice shall be conclusively deemed given
      upon
      receipt and delivery or refusal. 

     

    5.07    Attorneys’
      Fees.
      If any
      legal action, arbitration or proceeding is brought for the enforcement of this
      Agreement or in relation to this Agreement, the prevailing Party shall be
      entitled to recover reasonable attorneys’ fees and other costs incurred, in
      addition to any other relief to which such Party may be entitled.

     

    5.08    Nonwaiver.
      The
      failure of either Party at any time to require performance of the other Party
      of
      any provision of this Agreement shall not affect in any way the full right
      to
      require such performance at any time thereafter. 

     

    5.09    Entire
      Agreement.
      This
      Agreement constitutes the complete and entire Agreement between Supplier and
      Distributor, and there are no other oral agreements, understandings,
      representations or warranties, express or implied, between the Parties. No
      modification or amendment of this Agreement shall be binding upon the Parties
      unless executed in writing by the Parties hereto.

     

    5.10    Independent
      Counsel.
      The
      Parties hereby acknowledge and agree that they have had the opportunity to
      have
      this Agreement reviewed by their own independent counsel and therefore agree
      that this Agreement shall be deemed to have been jointly drafted and shall
      not
      be construed in favor of or against either Party.

     

    5.11    Severability.
      The
      provisions of this Agreement shall be severable. In the event that any provision
      is held to be invalid, void or otherwise unenforceable, by a court or
      arbitration panel of competent jurisdiction, the remaining provisions shall
      remain enforceable to the fullest extent permitted by law.

     

    5.12    Counterparts.
      This
      agreement may be executed in counterparts, each of which when so executed and
      delivered shall be deemed an original, but all such counterparts together shall
      constitute but one and the same instrument.

     

    5.13    Facsimile
      Signatures. 
      The
      Parties hereto agree that this Agreement may be executed by facsimile signatures
      and such signatures shall be deemed originals. The Parties further agree that
      within ten days following the execution of this Agreement, they shall exchange
      original signature pages.

    

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date
      first written above.

     

     

    
      	
              DISTRIBUTOR:

               

              Don Marcos Trading Co.

              a Florida corporation

            	
              SUPPLIER:

               

              Don Marcos Coffee Company, S.A.,

              a Costa Rica corporation

            
	 	 
	
              /s/ Earl T.
                Shannon                                           

              By: Earl
                T. Shannon

              Its: President

            	
              /s/ Mark E.
                Tupper                                             
                

              By:  Mark E. Tupper

              Its: 
President

            

    

         

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

    

    PRODUCTS
      AND PRICE LIST

     

     

    
      	
              Product

            	
              Price

            

    

     

     

     

     

     

    7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]