Document:

Unassociated Document

    AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

     

    This Employment Agreement (the
“Agreement”) is entered into effective as of October 7, 2008 (“Effective Date”),
between THE CENTER FOR WOUND HEALING, INC., a Nevada corporation (the “Company”)
with its principal place of business at 155 White Plains Road, Tarrytown, New
York 10591, and David Walz (“Executive”), to provide the terms and conditions
for Executive’s employment with the Company and its affiliates from time to time
(together, the “Group”).

    

    The
Company and Executive have agreed that Executive will be employed by the Company
and will serve as an executive officer of the Company, upon the terms and
conditions set forth below. This Agreement replaces and supersedes the
Employment Agreement between Executive and the Company dated April 1, 2005, as
amended (the “2005 Employment Agreement”), except as expressly provided
herein.

     

    Accordingly,
and in consideration of the mutual obligations set forth in this Agreement,
which Executive and the Company agree are sufficient, Executive and the Company
agree as follows:

     

    1.   Term of
Employment.  Subject to the provisions of Paragraph 4 below,
the initial term of this Agreement (the “Initial Term”) begins on the Effective
Date and ends on June 30, 2011.  Executive’s employment by the Company
pursuant to this Agreement shall be automatically renewed for an additional
twelve (12) months following the end of the Initial Term unless either Executive
or the Company has provided written notice of its or his intent not to renew on
or before January 1, 2011 (a “Renewal Term”).  Following the first
Renewal Term, Executive’s employment by the Company pursuant to this Agreement
shall be automatically renewed for successive twelve (12) month periods (each,
also a “Renewal Term”) following the end of the prior Renewal Term unless either
Executive or the Company has provided written notice of its or his intent not to
renew no less than 180 days  prior to the expiration of the prior
Renewal Term.   Executive’s term of employment under this
Agreement (the “Term”) consists of the Initial Term and any Renewal
Term(s).  For avoidance of doubt, “Term” as used in this Agreement
shall not include any Renewal Term(s) unless this Agreement is extended in
accordance with this Paragraph 1.  

     

    
      	
               
      

            	
              2.

            	
              Position
      and Responsibilities.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Executive
      shall report directly to the CEO and shall have the lawful executive
      duties assigned to Executive by the CEO or the Company’s Board of
      Directors (“Board”).  Executive agrees to comply with such
      lawful policies of the Company as may be adopted from time to time as are
      applicable to him.  Executive shall devote his full business
      time and best efforts to the Company’s business and affairs;
      Notwithstanding the foregoing, nothing herein shall preclude Executive
      from (i) serving on the board of one or more charitable organizations
      (subject to the approval of the Board, such approval not to be
      unreasonably withheld), (ii) engaging in charitable activities and
      community affairs, and (iii) managing his personal investments and
      affairs, provided that any such activities listed in (i),  (ii)
      and (iii) above do not interfere in more than a de minimis
      manner with the proper performance of his duties and responsibilities
      hereunder and comply with the limitations set forth in Paragraph 5(a)
      below.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              Executive’s
      principal place of employment shall be the Company’s corporate
      headquarters, currently located in Tarrytown, New York, but Executive
      shall be required to engage in reasonable and customary business travel on
      behalf of the Company including visiting existing facilities owned or
      operated by the Company and recruiting prospective hospitals and
      physicians.

            

    

     

    
      	
               
      

            	
              3.

            	
              Compensation
      and Expense Reimbursement.

            

    

     

    Executive
shall receive the following compensation and/or reimbursement for
expenses:

     

    (a)           Base
Salary.  Executive’s annual base salary for each fiscal year
during the Term shall be $285,000, payable in equal monthly or more frequent
installments as are customary under the Company's payroll practices from time to
time, and subject to annual cost-of-living increases (calculated by reference to
U.S. Department of Labor’s Consumer Price Index for Urban Consumers, New York,
Northern New Jersey and Long Island (NY, NJ, CT, PA) for each applicable year)
to take effect on January 1 during each calendar year of the Term (the “Base
Salary”) not to exceed 4% per annum.  The Board (or a committee
thereof) will review the Base Salary at least annually and may (or may not)
increase it beyond Executive’s annual cost-of-living increases at any time for
any reason, in its sole discretion.  Executive’s Base Salary (as
increased from time to time) shall not be reduced without his written
consent.

     

    (b)           Signing
Bonus.  Executive shall be eligible for a one-time bonus in the
gross amount of $10,000 upon the full and complete execution of this Agreement.
Such bonus shall be paid as soon as is practicable after such execution, but in
no event later than March 15 of Executive’s taxable year following the taxable
year in which the bonus is earned.

     

    (c)           Annual Performance
Bonus.  In addition to the foregoing, Executive shall be
eligible to receive an annual cash performance bonus (the “Annual Bonus”) for
each fiscal year ending during the Term if Executive remains employed by the
Company on the last day of such fiscal year and the Company achieves the
following Gross Margin for the applicable fiscal year:

     

    
      	
               
      

            	
              ·

            	
              FY
      2009:

            	
              48.5%
      (Plan is 47.5% - 100 basis points above
Plan)

            

    

    
      	
               
      

            	
              ·

            	
              FY
      2010:

            	
              49.4%
      (Plan is 48.9% - 50 basis points above
Plan)

            

    

    
      	
               
      

            	
              ·

            	
              FY
      2011:

            	
              52.0%
      (Plan is 52.0% - Flat to Plan)

            

    

    

    Subject
to the provisions of Paragraph 4 hereof, the Annual Bonus shall be paid as soon
as possible after the close of the applicable fiscal year, but in no event later
than March 15 of Executive’s taxable year following the taxable year in which
the bonus is earned.  The amount of Executive’s Annual Bonus shall be
established by the Board in its sole discretion following the close of the
applicable fiscal year, provided, however,
that the minimum Annual Bonus for any fiscal year shall be no less than $50,000
and the maximum Annual Bonus shall be no more than 50% of Executive’s
then-existing Base Salary, provided that the Company achieves the Gross Margin
targets described above.   The parties acknowledge and agree that
Executive has already earned an Annual Performance bonus for fiscal year 2008 in
the gross amount of $50,000, which shall be paid in no event later than March
15, 2009.

     

    
      
        
        

      

      
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    Gross
Margin shall be calculated by the Company and the Company’s determination of
Gross Margin shall be final and not subject to challenge by
Executive.  Generally, however, “Gross Margin” means the result of net
sales less direct wound care center (the “Centers”) costs (the “cost of sales”
or “COS”) including direct and hospital contract labor payroll costs, heath
insurance and employee benefit costs associated with this direct labor, medical
director fees and other labor costs that may be paid on a 1099 basis; rental,
finance charges and depreciation costs of leasehold improvements and furniture,
fixtures and equipment used in the Centers; advertising, marketing, promotion
and Center grand opening costs that are directly assigned to Centers; automobile
expense incurred by Center employees; patient transportation costs; equipment
maintenance; software expense, including current expense and amortization costs;
property and casualty and other liability insurance costs allocated to the
Centers; non-cash compensation to Center employees (both “HMA” and “NYHWC”
payroll personnel); oxygen and medical supplies costs; amortization costs of
contract and other intangible assets directly associated with a Center; and
other costs that may be appropriately allocated to the Cost of Sales as
determined by the company’s Chief Executive Officer.

    

    (d)           Benefits.  Executive
shall be eligible to participate in all Company benefit plans and programs as
are generally available to the Company’s senior executives, and Executive’s
benefits shall be based on the terms of the applicable plans as established by
the Company from time to time.  Executive shall be entitled to 6 weeks
paid vacation per calendar year, which vacation shall be exercised with due
regard to the then current requirements of the Company’s
business.   Executive shall be entitled to carry over up to two
(2) weeks unused vacation from one year to the next (for a maximum of 8 weeks
vacation in any calendar year).  Executive’s vacation entitlement may
be reviewed by the Board and increased at the Board’s discretion.

     

    (e)           Car
Allowance.  Executive shall be entitled to reimbursement for
automobile expenses (including insurance, maintenance, lease payments, etc.) up
to, but not exceeding, $15,000 per calendar year (but no more than $3,000 per
calendar month), plus additional reimbursement for any mileage, tolls or parking
for documented business use (with such documentation to be provided in
accordance with the Company’s normal expense reimbursement practices and
procedures).  Any unused car allowance existing as of December 31 of
each calendar year shall be forfeited.   If any automobile
expense reimbursed hereunder is considered taxable income to Executive,
Executive shall be entitled to a “gross-up” payment from the Company so that his
net, after-tax, automobile expenses are fully reimbursed by the
Company.  All approved reimbursements and any “gross-up” payment shall
be paid within a reasonable time (not later than March 15 of Employee’s taxable
year following the taxable year in which an expense was incurred) following the
presentation by Employee of appropriate documentation to the
Company.  The amount of expenses eligible for reimbursement during any
taxable year of Employee under this Agreement will not affect the expenses
eligible for reimbursement in any other taxable year of Employee, and Employee’s
right to reimbursement of expenses is not subject to liquidation or exchange for
another benefit.

     

    
      
        
        

      

      
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    (f)           Stock
Options.  Pursuant to the 2005 Employment Agreement, Executive
was granted options to purchase 210,000 shares of common stock of the Company
and pursuant to this Agreement, executive shall be granted the option to
purchase an additional 525,000 shares of the Company’s common stock pursuant to
the Company’s “Center for Wound Healing 2006 Stock Option Plan, as amended and
restated” (the “Option Plan”), as described below.  The Company
represents that such shares are not currently registered, but agrees to provide
Executive with “piggyback” registration rights should the Company register the
shares of any shareholder or warrant holder of the Company’s stock, and shall
enter into a Registration Rights Agreement reasonably acceptable to Executive
providing for such “piggyback” registration rights.  The terms of such
option grant shall be as follows:

     

    
      	
               
      

            	
              (i)

            	
              Prior Time Vesting
      Options.  The 210,000 time vesting options granted to
      Executive pursuant to Paragraph 3(e) of the 2005 Employment Agreement
      (“Time Vesting Options”) shall survive this Agreement and remain in full
      force and effect in accordance with their terms, except that (x) the
      exercise price for all vested and unvested Time Vesting Options shall be
      adjusted to $1.05 per share, the “fair market value” determined by the
      Board as of October 8, 2008; and (y) the life of such options shall be
      extended to 5 years from the original date of grant, which was April 1,
      2006.  The parties acknowledge and agree that pursuant to the
      terms of the 2005 Employment Agreement, the Time Vesting Options are fully
      vested.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              New Time Vesting
      Options.   Subject to the provisions of Paragraph 4
      below, Executive is hereby granted, effective October 8, 2008
      (the “Grant Date”), the option to purchase an additional 300,000 shares of
      Company stock at the price of $1.05 per share (the “New Time Vesting
      Options”).  The New Time Vesting Options shall vest according to
      the following schedule:

            

    

     

    
      	
               
      

            	
              (A)

            	
              75,000
      of the New Time Vesting Options will vest on the Grant Date;
      and

            

    

     

    
      	
               
      

            	
              (B)

            	
              75,000
      of the New Time Vesting Options will vest on the first anniversary of the
      Grant Date, provided that Executive is employed by the Company through
      such date; and

            

    

     

    
      	
               
      

            	
              (C)

            	
              75,000
      of the New Time Vesting Options will vest on the second anniversary of the
      Grant Date, provided that Executive is employed by the Company through
      such date; and

            

    

     

    
      	
               
      

            	
              (D)

            	
              75,000
      of the New Time Vesting Options will vest on June 30, 2011, provided that
      Executive is employed by the Company through such
  date.

            

    

     

    
      
        
        

      

      
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              (iii)

            	
              New Performance Vesting
      Options. Subject to the provisions of Paragraph 4 below, Executive
      is hereby granted, effective October 8, 2008, the option to purchase an
      additional 225,000 shares of Company stock at the price of $1.05 per share
      (the “New  Performance Vesting Options”).  The New
      Performance Vesting Options shall vest according to the following
      schedule:   

            

    

     

    
      	
               
      

            	
              (A)

            	
              If
      the Company achieves any of the quarterly Adjusted EBITDA targets for 2009
      set forth in Section 9.18(a) of the Securities Purchase Agreement during
      the fiscal year ending June 30, 2009, then Executive’s New Performance
      Vesting Option to purchase 75,000 shares of the Company’s common stock
      shall vest as of the last day of the applicable
  Quarter.

            

    

     

    
      	
               
      

            	
              (B)

            	
              If
      the Company achieves any of the quarterly Adjusted EBITDA targets for 2010
      set forth in Section 9.18(a) of the Securities Purchase Agreement during
      the fiscal year ending June 30, 2010, then Executive’s New Performance
      Vesting Option to purchase 75,000 shares of the Company’s common stock
      shall vest as of the last day of the applicable
  Quarter.

            

    

     

    
      	
               
      

            	
              (C)

            	
              If
      the Company achieves any of the quarterly Adjusted EBITDA targets for 2011
      set forth in Section 9.18(a) of the Securities Purchase Agreement during
      the fiscal year ending June 30, 2011, then Executive’s New Performance
      Vesting Option to purchase 75,000 shares of the Company’s common stock
      shall vest as of the last day of the applicable
  Quarter.

            

    

     

    
      	
               
      

            	
              (D)

            	
              The
      Company’s EBITDA for any applicable Quarter shall be calculated by
      reference to the Company’s Form 10Q for that Quarter, following the review
      of such Form 10Q by the Company’s outside
  accountants.

            

    

    

    
      	
               
      

            	
              (E)

            	
              The
      maximum number of New Performance Vesting Options that may vest pursuant
      to this paragraph 3(f)(iii) for any fiscal year is 75,000 shares of the
      Company’s common stock.  Any New Performance Vesting Options
      which do not vest within the applicable periods set forth in paragraphs
      3(f) (iii) (A), (B), or (C) above shall be
  forfeited.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Change in
      Control.  All of Executive’s options shall become fully
      vested and exercisable immediately before the effective time of a Change
      in Control as defined in Paragraph 4(a)(v)
  below.

            

    

     

    
      	
               
      

            	
              (v)

            	
              Term of
      Option.  The New Time Vesting Options and the New
      Performance Vesting Options shall remain outstanding for 5 years following
      its date of grant.  To the extent Executive’s options has vested
      at the time of his termination of employment, his option shall remain
      outstanding until the earlier of the end of the term or the date on which
      Executive exercises his option.

            

    

     

    
      
        
        

      

      
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    (g)           Expense
Reimbursement.  Executive shall be entitled to receive prompt
reimbursement from the Company of all travel, tolls, parking, entertainment and
out-of-pocket expenses which are reasonably and necessarily incurred by
Executive in the performance of his duties hereunder; provided, however,
that Executive properly accounts for such expenses in accordance with Company’s
policies as in effect from time to time, and receives pre-approval from the
Board prior to incurring any single expense for which reimbursement will be
sought in excess of $5,000.00.  All approved reimbursements shall be
paid within a reasonable time (not later than March 15 of Employee’s taxable
year following the taxable year in which an expense was incurred) following the
presentation by Employee of appropriate documentation to the
Company.  The amount of expenses eligible for reimbursement during any
taxable year of Employee under this Agreement will not affect the expenses
eligible for reimbursement in any other taxable year of Employee, and Employee’s
right to reimbursement of expenses is not subject to liquidation or exchange for
another benefit.

     

     

    
      	
               
      

            	
              4.

            	
              Termination

            

    

     

    
      	
               
      

            	
              (a)

            	
              Termination of
      Employment.

            

    

     

    (i)        Termination by the Company for
Cause.  The Board may terminate Executive’s employment for
Cause at any time upon written notice.  “Cause” means any of the
following: (1) Executive’s material breach of this Agreement, breach of
fiduciary duty having a material adverse impact on the Company, material breach
of the Company’s employment policies applicable to him, or refusal to follow the
lawful directives of the Board consistent with this Agreement that is not
corrected (to the extent correctable) within ten (10) days after delivery of
written notice to Executive with respect to such breach; (2) Executive’s breach
of a fiduciary duty to the Company, material breach of the Company’s employment
policies applicable to him, refusal to follow the lawful directives of the Board
consistent with this Agreement, or repeated breach of the same provision of this
Agreement, each on more than two (2) occasions, regardless of whether such
breach has been or may be corrected; (3) Executive’s indictment for or
conviction of a felony or any crime involving fraud; (4) Executive’s
misappropriation of funds or material property of the Company or any member of
the Group; or (5) Executive’s material dishonesty, disloyalty, or willful
misconduct.   Notwithstanding the foregoing, any act, or failure
to act, based upon the advice of counsel to the Company shall be presumed to be
done, or omitted to be done, by the Executive in good faith and in the best
interests of the Company, and shall not constitute Cause as defined
herein.

     

    
      
        
        

      

      
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    (ii)                  Termination by the Company without
Cause.  The Company may terminate Executive’s employment under
this Agreement without Cause upon at least thirty (30) days’ prior written
notice to Executive.   Furthermore, for purposes of this
Agreement, a failure by the Company to renew this Agreement pursuant to
Paragraph 1 hereof shall constitute a termination by the Company without
Cause.

     

    (iii)                   Death or
Disability.  Executive’s employment by the Company will
immediately terminate upon Executive’s death and at the option of either
Executive or the Company, exercisable upon written notice to the other party,
may terminate upon the Executive’s Disability.  For purposes of this
Agreement, “Disability” will occur if (1) Executive becomes eligible for
benefits under a long-term disability policy provided by the Company, or (2)
Executive has become unable, due to physical or mental illness or incapacity, to
substantially perform the essential duties of Executive’s employment, with or
without reasonable accommodation, for a period of (A) 90 consecutive days or any
consecutive waiting period during which Executive is not eligible for long-term
disability income benefits pursuant to disability income policies provided by
the Company, whichever is less; or (B)  or an aggregate of 120 days
during any consecutive 12 month period, as determined by an independent
physician approved by the Company and Executive.   Executive
agrees to be examined at the request of the Company by such independent
physician upon reasonable notice.

     

    (iv)                   Termination by Executive for Good
Reason.  Executive may terminate his employment for Good Reason
at any time upon written notice to the Company.  “Good Reason” shall
mean the occurrence, during the Term, of any of the following actions or
failures to act, but in each case only if (1) Executive objects in writing
within ten (10) days of Executive having actual knowledge of such event, and (2)
with respect to subsections 1-4 below, such occurrence is not corrected (if
correctable) by the Company within ten (10) days after delivery of written
notice to the Board with respect to such occurrence: (1) a material change in
Executive’s duties, reporting responsibilities, titles or elected or appointed
offices as in effect immediately prior to the effective date of such change; (2)
any reduction in or failure to pay when due any compensation or expense
reimbursement to which Executive is entitled pursuant to this Agreement; (3) the
Company’s breach of any material term of this Agreement; or (4) the Company’s
relocation of its corporate offices to an address more than 50 miles from its
current headquarters in Tarrytown, New York.  For avoidance of doubt
Base Salary shall mean that remuneration which is not based upon performance,
e.g., commissions.

     

    (v)                  Termination as a result of a Change
in Control.   Executive may terminate Executive’s
employment under this Agreement within 60 days of the occurrence of a Change in
Control, as defined herein.  The term “Change in Control” means: a
change in control of the Company of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
under the Exchange Act as in effect at the time of such "change in control",
provided that such a change in control shall be deemed to have occurred at such
time as:

     

    
      
        
        

      

      
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    (A) any "person" (as that
term is used in Sections 13(d) and 14(d)(2) of the Exchange Act), is or becomes
the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) directly
or indirectly, of securities representing 45% or more of the combined voting
power for election of directors of the then outstanding securities of the
Company or any successor to the Company, provided, however,
that for purposes of this definition, the following transactions shall not
constitute a Change in Control: (1) any acquisition directly from the Company
through a public offering or private placement of shares of common stock (2) any
acquisition by the Company or an Affiliate, (3) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliate, or (4)
any acquisition by any corporation pursuant to a transaction which complies with
clauses (1), (2) and (3) of subsection (D) of this definition. 

     

    (B) during any
period of two consecutive years or less, individuals who at the beginning of
such period constitute the Board cease, for any reason, to constitute at least a
majority of the Board, unless the election or nomination for election of each
new director was approved by a vote of at least two-thirds of the directors then
still in office who were directors at the beginning of the period;

     

    (C) the consummation of a sale or
disposition (through one or more transactions) of 50% or more of the assets or
business of the Company; or

     

    (D) the consummation of any
reorganization, merger, consolidation or share exchange unless (1) the persons
who were the beneficial owners of the outstanding Shares of the common stock of
the Company immediately before the consummation of such transaction beneficially
own more than 60% of the outstanding Shares of the common stock of the successor
or survivor corporation in such transaction immediately following the
consummation of such transaction and (2) the number of Shares of the common
stock of such successor or survivor corporation beneficially owned by the
persons described in Paragraph 4(a)(v)(D)(1) immediately following the
consummation of such transaction is beneficially owned by each such person in
substantially the same proportion that each such person had beneficially owned
Shares of the Company’s common stock immediately before the consummation of such
transaction, provided (3) the percentage described in Paragraph 4(a)(v)(D)(1) of
the beneficially owned shares of the successor or survivor corporation and the
number described in Paragraph 4(a)(v)(D)(2) of the beneficially owned shares of
the successor or survivor corporation shall be determined exclusively by
reference to the shares of the successor or survivor corporation which result
from the beneficial ownership of Shares of common stock of the Company by the
persons described in Paragraph 4(a)(v)(D)(1) immediately before the consummation
of such transaction.

     

    
      
        
        

      

      
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    (vi)                   Termination by Executive without
Good Reason.  Executive may terminate his employment under this
Agreement without Good Reason upon at least forty-five (45) days’ prior written
notice to the Company.

     

    
      	
               
      

            	
              (b)

            	
              Consequences of Termination of
      Employment.

            

    

     

    (i)        Termination by the Company without
Cause or by Executive for Good Reason.  If the Company
terminates Executive’s employment without Cause  or if Executive
terminates his employment at any time for Good Reason  at any time
during the Term (and in either case such termination of employment constitutes a
“separation from service” within the meaning of section 409A of the Code),
Executive shall receive the benefits described in this Paragraph 4(b)(i),
provided Executive executes a release (in a form acceptable to the Company) of
all claims he has or may have against the Company.  If Executive
receives the benefits set forth in this Paragraph 4(b)(i), Executive shall not
be eligible for severance benefits from any other plan, program or policy of the
Company then in effect.

     

    1.      Continuation of Base
Salary.  Executive shall be entitled to continuation of
Executive’s then-existing Base Salary through the end of the Term or for 24
months, whichever is longer; provided, however,
that if Executive’s employment terminates as a result of the Company’s failure
to renew this Agreement as provided in Paragraph 1, Executive shall be entitled
to continuation of Executive’s then-existing Base Salary for a period of twelve
(12) months.  Subject to Paragraph 4(c), the Base Salary continuation
payments shall be paid in equal installments in accordance with the Company’s
standard payroll practice.   

     

    2.      Pro-Rata Payment of Annual
Bonus.  Executive shall be entitled to a pro-rata amount of his
Annual Bonus for the fiscal year in which his employment terminates equal to his
Target Annual Bonus times the number of days elapsed in the applicable fiscal
year divided by 365, payable not later than two and one-half (2 1⁄2) months after
the close of the calendar year in which such termination occurred.

     

    3.      Payment of Employment
Benefits.  Executive shall be entitled to payment of any
accrued employment benefits to which he might be entitled pursuant to this
Agreement, including, without limitation, payment for any vacation not yet used
during the calendar year in which the termination of employment takes place,
pro-rated to the termination date, payable not later than two and one-half (2 1⁄2)
months after the close of the calendar year in which such termination occurred.
In addition, for a period of twenty-four (24) months following Executive’s
termination of employment, the Company shall continue Executive’s (including
Executive’s family) participation in any health or medical benefit plan(s) in
which he was participating prior to his termination of employment, at the
Company’s expense, if permitted by the terms and conditions of such
plans;  and if such plans do not permit Executive’s continued
participation, then the Company shall reimburse Executive for amounts actually
incurred by him for continuation coverage under such plans pursuant to COBRA for
a period of 18 months, and following the expiration of COBRA coverage, shall
reimburse Executive for amounts actually incurred by him to obtain substantially
comparable coverage for an additional six (6) months; provided, however, if
Executive’s employment terminates as a result of the Company’s failure to renew
this Agreement as provided in Paragraph 1, Executive’s right to benefit
continuation and/or reimbursement  for COBRA expenses as provided
herein shall expire after twelve (12) months. Reimbursements under this
paragraph shall be paid promptly and in all events not later than March 15 of
Employee’s taxable year following the taxable year in which the applicable
expenses were incurred. The amount of expenses eligible for reimbursement during
any taxable year of Employee under this Agreement will not affect the expenses
eligible for reimbursement in any other taxable year of Employee, and Employee’s
right to reimbursement of expenses is not subject to liquidation or exchange for
another benefit.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    4.      Vesting of Stock
Options.   Any unvested Stock Options pursuant to
Paragraph 3(f)(i) and 3(f)(ii) hereof shall immediately vest and become
exercisable pursuant to the applicable Stock Option Agreement(s) for such
options.  In addition to the foregoing, should the Company’s Adjusted
EBITDA for the Quarter during which such termination takes place meet the
applicable Adjusted EBITDA vesting thresholds required by Paragraphs
3(f)(iii)(A-C), then any unvested options that would have vested as a result of
the Company’s achieving such Adjusted EBITDA threshold shall vest and become
exercisable pursuant to the Stock Option Agreement(s) for such
options.  

     

    (ii)                  Termination for Cause, Voluntary
Termination.  If Executive’s employment with the Company is
terminated (i) by the Company for Cause, or (ii) by Executive’s resignation
without Good Reason, Executive shall receive (A) any accrued but unpaid Base
Salary earned only through Executive’s termination date; (B) any Annual Bonus
earned for any prior year(s) but not yet paid; and (C) payment of any accrued
employment benefits to which he might be entitled pursuant to this Agreement,
excepting any accrued but unused vacation benefits.  Nothing contained
in this sub-paragraph shall limit any right of the Company in law or
equity.

     

    (iii)                  
Death or
Disability.  If Executive’s employment with the Company is
terminated as a result of Executive’s death or Disability (and such termination
of employment constitutes a “separation from service” within the meaning of
section 409A of the Code), Executive shall receive (A) any accrued but unpaid
Base Salary earned only through Executive’s termination date, provided that if
Executive terminates employment as a result of Disability, Executive’s Base
Salary shall continue to be paid for any period that Executive is not eligible
to receive disability income benefits pursuant to the Company’s disability
insurance policies, or for six (6) months, whichever is less, and further
provided that such payments shall, subject to Paragraph 4(c), be paid in equal
installments in accordance with the Company’s standard payroll practice; (B) any
Annual Bonus earned for any prior year(s) but not yet paid; and (C) payment of
any accrued employment benefits to which he might be entitled pursuant to this
Agreement, excepting any accrued but unused vacation
benefits.  Nothing contained in this sub-paragraph shall limit any
right of the Company in law or equity.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (iv)                  Termination as a result of a Change
in Control.  If Executive terminates his employment due to a
Change in Control under Paragraph 4(a)(v), Executive shall be entitled to
receive the payments and benefits set forth in Paragraph 4(b)(i)
above.

     

    (c) Required Delay for Payment to
Specified Employees.  To the extent necessary to comply with
the restriction in Section 409A of the Code concerning payments to specified
employees (within the meaning of section 409A of the Code), the first payment to
Executive pursuant to this Paragraph 4(b) shall be made at least six months and
one day after Executive’s “separation from service” (within the meaning of
section 409A of the Code).   The first payment shall include any
installments that would have been paid previously under Paragraph 4(b) were it
not for this special timing rule, plus interest on the delayed installments at
an annual rate (compounded monthly) equal to the federal short-term rate (as in
effect under Section l274(d) of the Code on Executive’s separation from
service).

     

    
      	
               
      

            	
              5.

            	
              Restrictive
      Covenants.

            

    

     

    (a)           Non-Competition.  During
the Term and for any time period during which Executive is receiving Base Salary
continuation payments from the Company pursuant to Paragraphs 4(b)(i)(1),
4(b)(ii), or 4(b)(iv) herein (the “Non-Competition Period”), Executive shall not
directly or indirectly manage, operate, participate in, be employed by, or
perform consulting services for Diversified Clinical Services, Curative Health
Services, National Healing Inc, National Baromedical Services Inc., Oxyheal
Health Group, National City, CA, and Comprehensive Healthcare Solutions, (each a “Competitive
Enterprise”) in the United States of America.  During the
Non-Competition Period, Executive may invest in any Competitive Enterprise,
provided that Executive and Executive’s immediate family members (as defined in
Section 1361(c)(B) of the Code) do not own collectively more than one percent of
the voting securities of any such entity at any time.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b)           Non-Solicitation of
Customers.  During the Non-Competition Period, Executive shall
not solicit, call upon, divert or actively take away, or attempt to solicit,
call upon, divert or take away, for the purpose of competing with the Company,
any individual, partnership, corporation, association, or entity who, within the
thirty-six (36) month period prior to Executive’s termination of employment,
obtained or contracted to obtain goods or services from the Company (a
“Customer”) or was solicited by the Company for business (whether or not he,
she, or it became an actual customer) (a “Potential Customer”).

     

    (c)           Non-Solicitation of
Employees.  During the Non-Competition Period, Executive will
not directly or indirectly solicit or attempt to solicit or encourage anyone
who, at the time of the termination of Executive’s employment, is then an
officer, manager or salesperson of the Company (or who was an officer, manager
or salesperson of the Company within the three (3) months prior to the
termination of Executive’s Employment) to resign from the Company or to apply
for or accept employment with any company or other enterprise.

     

    (d)           Other Employment During the
Term.  During the Term, Executive shall not receive
compensation from any other company or business unless the arrangement giving
rise to such compensation has been (i) disclosed to and approved by the Board in
advance or (ii) is otherwise permitted by the terms of this
Agreement.

     

    (e)           Use and Disclosure of Proprietary
Information.

     

    (i)        Definition of Proprietary
Information.  “Proprietary Information” means information,
knowledge or data not otherwise known to the general public concerning (A) the
Group’s businesses, strategies, operations, prospects, financial affairs,
organizational matters, operational results, operational strengths and
weaknesses, personnel matters, compensation policies and procedures, budgets,
business plans, marketing plans, studies, policies, procedures, products, ideas,
processes, software systems, trade secrets and technical know-how,
specifications, or research and development operations or plans, (B) any matter
relating to clients of the Group or other third parties having relationships
with the Group and (C) any confidential information from which the Group derives
business advantage or economic value.  Proprietary Information
includes (1) the names, addresses, phone numbers and buying habits and
preferences and other information concerning clients and prospective clients of
the Group, and (2) information and materials concerning the personal affairs of
employees of the Group.  In addition, Proprietary Information may
include information furnished to Executive orally or in writing (whatever the
form or storage medium) or gathered by inspection, in each case before or after
the date of this Agreement.  Proprietary Information does not include
information (X) that was or becomes generally available to Executive on a
non-confidential basis, if the source of this information was not reasonably
known to Executive to be bound by a duty of confidentiality, (Y) that was or
becomes generally available to the public, other than as a result of an
unauthorized disclosure by Executive, directly or indirectly, or (Z) that
Executive can establish was independently developed by Executive under
circumstances not covered by the provisions of Paragraph 5(f)
hereof.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (ii)                  Acknowledgements.  Executive
acknowledges that he will obtain or create Proprietary Information in the course
of Executive’s involvement in the Group’s activities and may already have
Proprietary Information.  Executive agrees that the Proprietary
Information is the exclusive property of the Group.  In addition,
nothing in this Agreement will operate to weaken or waive any rights the Group
may have under statutory or common law, or any other agreement, to the
prohibition of unfair competition or the protection of trade secrets,
confidential business information and other confidential
information.

     

    (iii)                  During
Employment.  Executive will use and disclose Proprietary
Information only for the Group’s benefit and in accordance with any restrictions
placed on its use or disclosure by the Group.

     

    (iv)                  Post-Employment.  After
the termination of Executive’s employment, Executive will not use or disclose
any Proprietary Information for any purpose; provided, however,
that the restriction on Proprietary Information not constituting a trade secret
under applicable law shall expire after five (5) years.

     

    (f)           Ownership of Work
Product.  All work product, property, data, documentation,
information or materials conceived, discovered, developed or created by
Executive during or in connection with Executive’s employment with the Company
or any of its parents, subsidiaries, or affiliates (collectively, the “Work
Product”) shall be owned exclusively by the Company.  To the greatest
extent possible, any Work Product shall be deemed to be a “work made for hire”
(as defined in the United States Copyright Act, 17 U.S.C.A. §101 et seq., as amended) and
owned exclusively by the Company.  Executive hereby unconditionally
and irrevocably transfers and assigns to the Company all right, title and
interest in or to any Work Product.   Executive agrees that any
trade secret, invention, improvement, patent applications, copyrighted material,
program, system or novel technique or the like conceived, devised, developed or
otherwise obtained by Executive or other Company employees during or in
connection with Executive’s employment with the Company shall be and become the
sole property of the Company, and that Executive will execute any and all
documents reasonably necessary to evidence or secure the Company’s
ownership.

     

    (g)           Non-Disparagement.  During
and after Executive’s employment with the Company, the parties mutually covenant
and agree that neither will directly or indirectly disparage the other, or make
or solicit any comments, statements, or the like to any clients, competitors,
suppliers, employees or former employees of the Company, the press, other media,
or others that may be considered derogatory or detrimental to the good name or
business reputation of the other party.  Nothing herein shall be
deemed to constrain either party’s cooperation in any Board authorized
investigation or governmental action.  In the event of Executive’s
termination of employment or the non-renewal of this Agreement, Executive and
Company shall agree on any press release relating to such termination or
nonrenewal and the Company and Executive shall not publicly discuss or comment
on Executive’s termination or non-renewal in any manner other than as mutually
agreed in the press release.  

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    6.      Employment
Taxes.  All payments and other compensation under this
Agreement shall be subject to withholding of applicable taxes and other amounts
required by law to be withheld.  

     

    7.      Indemnification.  To
the fullest extent permitted by applicable law, the Company shall provide
indemnification for Executive under its Articles of Incorporation and
Bylaws.  Executive shall be covered by the Company’s standard
indemnification agreement and by any director’s and officer’s liability
insurance policy maintained by the Company, subject to the terms of such
agreement and/or policy(ies).   The Company shall maintain
directors and officer’s liability insurance in amounts appropriate for the
Company’s size and business throughout the Term and for a period of three (3)
years thereafter.

     

    8.      Successors.  The
Company shall use commercially reasonable efforts to require (through
contractual arrangements or otherwise) any successor to the
Company  to all or substantially all of the Company’s business and/or
assets (whether a direct or indirect successor, and whether by purchase, lease,
merger, consolidation, liquidation, or otherwise) to assume the obligations
under this Agreement.  In case of any succession, the term “Company”
shall refer to the successor.  The terms of this Agreement and all of
Executive’s rights hereunder shall inure to the benefit of, and be enforceable
by, Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and
legatees.  Notwithstanding the foregoing, nothing contained herein
shall be construed as authorizing any assignment or other delegation by
Executive of his duties hereunder.

     

    9.      No Third-Party
Beneficiaries.  Except as to any successor of the Company as
provided in Paragraph 8 above, nothing in this Agreement may confer upon any
person or entity not a party to this Agreement any rights or remedies of any
nature or kind whatsoever under or by reason of this Agreement.

     

    10.               No Duty to
Mitigate.  Executive shall not be required to seek new
employment or otherwise to mitigate the payments contemplated by this Agreement;
provided,
however, that the payments contemplated by Paragraph 4(b)(i)(1) this
Agreement (and to the extent such provision is incorporated by reference by any
other provision of this Agreement) shall be offset by any earnings that
Executive may receive from any other source (other than investment activities)
during the period in which payments pursuant to Paragraph 4(b)(i)(1) are being
made by the Company.  Moreover, any benefits or reimbursement to which
Executive is entitled pursuant to Paragraph 4(b)(i)(4) shall cease if Executive
obtains comparable heath or medical insurance coverage with another
employer.  Nothing contained in this Paragraph 10 shall be construed
to obligate Executive to pay any amounts to the Company, or to repay any amounts
already paid to him by the Company, under any circumstances.

     

    11.               Notice.  Notices and
other communications between the parties to this Agreement shall be delivered in
writing and shall be deemed to have been given when personally delivered or on
the third business day after mailing by U.S. registered or certified mail,
return receipt requested and postage prepaid, or by a recognized national
courier service.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (a)           Notices
and other communications not personally delivered to Executive shall be
addressed to Executive, at the most recent home address that he provided in
writing to the Company.

     

    (b)           Notices
and other communications to the Company shall be addressed to the Company’s
corporate headquarters, to the attention of the Company’s
Secretary.

     

    12.               Waiver and
Amendments.  No provision of this Agreement may be modified,
waived, or discharged, unless the modification, waiver, or discharge is agreed
to in writing signed by Executive and by an authorized representative of the
Company (other than Executive).  Unless specifically characterized as
a continuing waiver, no waiver of a condition or provision at any one time may
be considered a waiver of the same provision or condition (or any different
provision or condition) at any other time.

     

    13.               Ability to Enter this
Agreement.  Executive represents and warrants that neither the
execution and delivery of this Agreement nor the performance of Executive’s
services hereunder will conflict with, or result in a breach of any employment
or other agreement to which Executive is a party or by which Executive might be
bound or affected.  Executive further represents and warrants that
Executive has full right, power, and authority to enter into and carry out the
provisions of this Agreement.

     

    14.               American Jobs Creation Act of
2004.  This Agreement shall be construed, administered and
interpreted in accordance with a good-faith interpretation of Section 409A of
the Code and Section 885 of the American Jobs Creation Act of
2004.  If the Company or Executive determines that any provision of
this Agreement is or might be inconsistent with such provisions (including any
administrative guidance issued thereunder), the parties shall make their best
efforts to act in good faith compliance with the requirements of Section 409A of
the Code and to agree to such amendments to this Agreement as may be necessary
or appropriate to comply with such requirements.

     

    15.               Choice of Law and Exclusive
Jurisdiction.  This Agreement (including its validity,
interpretation, construction, and performance) shall be governed by the laws of
the State of New York, without regard to any concerning conflicts or choice of
law that might otherwise refer construction or interpretation to the substantive
law of another jurisdiction.   Any dispute related to or arising
from this Agreement, or its construction, formation, or termination, shall be
brought exclusively in the state or federal courts for Westchester County, New
York, and both the Company and Executive waive any defense of lack of personal
jurisdiction in such courts for any action arising from or related to this
Agreement.

     

    16.               Section
Headings.  All headings in this Agreement are inserted for
convenience only.  Headings do not constitute a part of the Agreement
and may not affect the meaning or interpretation of any term or other provision
of this Agreement.

     

    17.               Severability and
Reformation.  Each substantive provision of this Agreement is a
separate agreement, independently supported by good and adequate consideration,
and is severable from the other provisions of the Agreement.  If a
court of competent jurisdiction determines that any term or provision of this
Agreement is unenforceable, then the other terms and provisions of this
Agreement shall remain in full force and effect, and the unenforceable terms or
provisions shall be equitably modified to the extent necessary to achieve the
underlying purpose in an enforceable way.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    18.               Whole
Agreement.  This Agreement reflects the entire understanding
and agreement between the Company and Executive regarding Executive’s
employment.  This Agreement supersedes all prior negotiations,
discussions, correspondence, communications, understandings, and agreements,
whether oral or written, relating to Executive’s employment with the Company,
including, without limitation, the 2005 Employment Agreement, which is cancelled
and of no further effect.  The respective rights and obligations of
the parties to this Agreement shall survive the termination of Executive’s
employment to the extent necessary to give such rights and obligations their
intended effect.

     

    19.               No
Presumption.  Each party hereto has participated in the
negotiation and drafting of this Agreement and each has been represented
throughout to his or its satisfaction by legal counsel of their respective
choice.  In the event any ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provision of this
Agreement.

     

    20.               Fiscal
Year.   Should the Company’s fiscal year be modified
during the Term, the provisions of this Agreement shall be deemed modified and
amended to provide Executive with equivalent rights and benefits to which he
would otherwise have been eligible but for such modification.

     

    21.               Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute a single
instrument.

     

    
      
        
          
            
              
                	THE CENTER FOR WOUND HEALING,
      INC.: 	 
	 	 	 
	
                                        By 

                      	
                      	 
	 	Andrew
      G. Barnett	 
	 	 	 
	
                                       
      Its:

                      	
                        Chief
      Executive Officer

                      	 
	 	 	 
	                Date    	
                         

                      	 

              

            

          

        

      

       

      
        
          
            
              
                
                  	EXECUTIVE:	 
	 	 	 
	
                                      

                        	    	 
	 	David
      Walz	 

                  	 	 	 
	                Date    	
                           

                        	 

                

              

            

          

        
                          

    

    
      
         

      

      
        16THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE
      NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
      TRANSFERRED TO ANY PERSON, INCLUDING A PLEDGEE, UNLESS (1) EITHER (A) A
      REGISTRATION STATEMENT WITH RESPECT THERETO SHALL BE EFFECTIVE UNDER THE
      SECURITIES ACT, OR (B) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL
      SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE
      SECURITIES ACT IS AVAILABLE, AND (2) THERE SHALL HAVE BEEN COMPLIANCE WITH
      ALL
      APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

     

    PURSUANT
      TO THAT CERTAIN LOCK-UP AGREEMENT, DATED AS OF THE DATE HEREWITH, HOLDER HAS
      AGREED WITH THE COMPANY THAT IT WILL NOT DISPOSE OF OR TRANSFER THIS WARRANT
      OR
      ANY OF THE SHARES OF COMMON
      STOCK ISSUED UPON ANY EXERCISE HEREOF
      FOR A
      PERIOD OF ONE YEAR FOLLOWING THE DATE OF THE CLOSING (AS SUCH TERM IS DEFINED
      IN
      THE ASSET PURCHASE AGREEMENT, BY AND AMONG THE COMPANY, GRUPO GRANDIOSO, LLC
      AND
      JEFFREY SCHWARTZ, DATED AS OF DECEMBER 2, 2008).

     

    
      	
              No.
                

            	 	
              For
                the Purchase

            
	 	 	
              of
                1,800,000 shares

            
	 	 	
              of
                Common Stock

            

    

    

    WARRANT
      TO PURCHASE 

     

    COMMON
      STOCK

     

    OF

     

    ASIANADA,
      INC.

    

    (A
      DELAWARE CORPORATION)

     

    ASIANADA,
      INC., a Delaware corporation (the “Company”), for value received, hereby
      certifies that Grupo Grandioso, LLC (the “Holder”), is entitled, subject to the
      terms set forth below, to purchase from the Company, at any time or from time
      to
      time at or before the earlier of 5:00 p.m. New York City time on December 2,
      2013 (the “Expiration Date”) and the termination of this Warrant as provided in
      Section 7 hereof, 1,800,000 shares of Common Stock, par value $0.001 per share,
      of the Company (the “Common Stock”), at a purchase price equal to $1.25 per
      share (the “Base Price”), as adjusted upon the occurrence of certain events as
      set forth in Section 3 of this Warrant. The shares of stock issuable upon
      exercise of this Warrant, and the purchase price per share, are hereinafter
      referred to as the “Warrant Stock” and the “Purchase Price,”
respectively.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
            	1.	
              Exercise.

            

    

     

    1.1 Manner
      of Exercise; Payment in Cash.
      This
      Warrant may be exercised by the Holder, in whole or in part, by surrendering
      this Warrant, with the purchase form appended hereto as Exhibit
      A
      duly
      executed by the Holder, at the principal office of the Company, or at such
      other
      place as the Company may designate, accompanied by payment in full of the
      Purchase Price payable in respect of the number of shares of Warrant Stock
      purchased upon such exercise. Payment of the Purchase Price shall be in cash
      or
      by certified or official bank check payable to the order of the
      Company.

    

    1.2 Effectiveness.
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which this Warrant shall have been
      surrendered to the Company as provided in Section 1.1 above. At such time,
      the
      person or persons in whose name or names any certificates for Warrant Stock
      shall be issuable upon such exercise as provided in Section 1.3 below shall
      be
      deemed to have become the holder or holders of record of the Warrant Stock
      represented by such certificates.

     

    1.3. Delivery
      of Certificates.
      As soon
      as practicable after the exercise of this Warrant in full or in part, and in
      any
      event within ten (10) business days thereafter, the Company at its sole expense
      will cause to be issued in the name of, and delivered to, the Holder, or,
      subject to the terms and conditions hereof, as such Holder (upon payment by
      such
      Holder of any applicable transfer taxes) may direct:

     

    (a) A
      certificate or certificates for the number of full shares of Warrant Stock
      to
      which such Holder shall be entitled upon such exercise plus, in lieu of any
      fractional share to which such Holder would otherwise be entitled, cash in
      an
      amount determined pursuant to Section 1.5 hereof, and

     

    (b) In
      case
      such exercise is in part only, a new warrant or warrants (dated the date hereof)
      of like tenor, calling in the aggregate on the face or faces thereof for the
      number of shares of Warrant Stock (without giving effect to any adjustment
      therein) equal to the number of such shares called for on the face of this
      Warrant minus the number of such shares purchased by the Holder upon such
      exercise as provided in Section 1.1 above.

     

    1.4 Right
      to Convert Warrant into Stock: Net Issuance.

    

    (a) Right
      to Convert.
      Subject
      to Section 7, in addition to and without limiting the rights of the Holder
      under
      the terms of this Warrant, the Holder shall have the right to convert this
      Warrant or any portion thereof (the “Conversion Right”) into shares of Warrant
      Stock as provided in this Section 1.4 at any time or from time to time during
      the term of this Warrant. Upon exercise of the Conversion Right with respect
      to
      a particular number of shares subject to this Warrant (the “Converted Warrant
      Shares”), the Company shall deliver to the Holder (without payment by the Holder
      of any Purchase Price or any cash or other consideration) that number of shares
      of fully paid and nonassessable Warrant Stock equal to the quotient obtained
      by
      dividing (X) the value of this Warrant (or the specified portion hereof) on
      the
      Conversion Date (as defined in subsection (b) hereof), which value shall be
      determined by subtracting (A) the aggregate Purchase Price of the Converted
      Warrant Shares immediately prior to the exercise of the Conversion Right from
      (B) the aggregate fair market value of the Converted Warrant Shares issuable
      upon exercise of this Warrant (or the specified portion hereof) on the
      Conversion Date (as herein defined) by (Y) the fair market value of one share
      of
      Warrant Stock on the Conversion Date (as herein defined).

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Expressed
      as a formula, such conversion shall be computed as follows:

    

    
      	
              X

            	
              =

            	
              B-A

            
	 	 	
              Y

            

    

    

    
      	 	
              where:
                

            	 	
              X
                =
                

            	
                    the
                number of shares of Warrant Stock that may be issued to
                Holder

            

    

    

    
      	 	
              Y
                =
                

            	
              the
                fair market value (FMV) of one share of Warrant
                Stock

            

    

    

    
      	 	
              A
                =
                

            	
              the
                aggregate Warrant Price (i.e., Converted Warrant Shares x Purchase
                Price)

            

    

    

    B
      =
 the
      aggregate FMV (i.e., FMV x Converted Warrant Shares)

    

    No
      fractional shares shall be issuable upon exercise of the Conversion Right,
      and,
      if the number of shares to be issued determined in accordance with the foregoing
      formula is other than a whole number, the Company shall pay to the Holder an
      amount in cash equal to the fair market value of the resulting fractional share
      of the Conversation Date (as herein defined).

    

    (b) Method
      of Exercise.
      The
      Conversion Right may be exercised by the Holder by the surrender of this Warrant
      at the principal office of the Company together with the Subscription Form
      in
      the form attached hereto duly completed and executed and indicating the number
      of shares subject to this Warrant which are being surrendered (referred to
      in
      Section 1.4(a) hereof as the Converted Warrant Shares) in exercise of the
      Conversion Right. Such conversion shall be effective upon receipt by the Company
      of this Warrant together with the aforesaid written statement, or on such later
      date as is specified therein (the “Conversion Date”), and, at the election of
      the Holder hereof, may be made contingent upon the occurrence of any of the
      events specified in Section 8. Certificates for the shares issuable upon
      exercise of the Conversion Right and, if applicable, a new Warrant evidencing
      the balance of the shares remaining subject to this Warrant, shall be issued
      as
      of the Conversion Date and shall be delivered to the Holder within thirty (30)
      days following the Conversion Date.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (c) Determination
      of Fair Market Value.
      For
      purposes of this Section 1.4, “fair market value” of a share of Warrant Stock as
      of a particular date (the “Determination Date”) shall be
      determined as follows: 

    

    (1) If
      the
      Company's Common Stock is traded on an exchange or is quoted on the National
      Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ") Stock
      Market, then the closing price on the day before the Determination Date;
      or

    

    (2) If
      the
      Company's Common Stock is not traded on an exchange or on the NASDAQ Stock
      Market but is traded in the over-the-counter market, then the closing price
      on
      the day before the Determination Date; or

    

    (3)
      In
      the event that the Determination Date is the date of a liquidation, dissolution
      or winding up, or any event deemed to be a liquidation, dissolution or winding
      up with respect to the Warrant Stock under the Company’s Certificate of
      Incorporation, then the fair market value per share of the Warrant Stock shall
      be determined by aggregating all amounts to be payable per share to holders
      of
      the Warrant Stock in the event of such liquidation, dissolution or winding
      up,
      plus all other amounts to be payable per share in respect of the Warrant Stock
      in liquidation, assuming for the purposes of this subsection that all of the
      shares of Warrant Stock issuable upon exercise of the Warrant are outstanding
      at
      the Determination Date; or

    

    (4)
      In
      all other cases, the fair market value per share of the Warrant Stock shall
      be
      determined in good faith by the Company’s Board of Directors upon review of
      relevant factors.

    

    1.5. Fractional
      Shares.
      The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, but shall make an adjustment therefor in cash on the basis
      of
      the fair market value of the Warrant Stock reasonably determined by The Board
      of
      Directors of the Company (and, in the case of a conversion of this Warrant,
      in
      accordance with Section 1.4(c)).

    

    2. Certain
      Adjustments.
      The
      Purchase Price and the number of shares of Warrant Stock
      deliverable upon exercise of the Warrant shall be subject to adjustment from
      time to time as follows:

    

    2.1 Subdivision,
      Consolidation, Reclassification or Change in Common Stock.
      In the
      event of any subdivision, consolidation, reclassification or change of the
      Common Stock into a greater or lesser number or different class or classes
      of
      stock, the number of shares of Warrant Stock deliverable upon exercise of this
      Warrant shall be determined in accordance with the terms of the Certificate
      of
      Incorporation, and the Purchase Price for such Warrant Stock shall be
      proportionately reduced.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.2 Subdivision,
      Consolidation, Reclassification or Change in Warrant Stock.
      In the
      event of any consolidation, reclassification or change of the Warrant Stock
      into
      a lesser number or different class or classes of stock, the number of shares
      of
      Warrant Stock deliverable upon exercise of this Warrant shall be proportionally
      decreased and the Purchase Price for such Warrant Stock shall be proportionately
      increased. In the event of any subdivision, reclassification or change of the
      Warrant Stock into a greater number or different class or classes of stock,
      the
      number of shares of Warrant Stock deliverable upon exercise of this Warrant
      shall be proportionally increased and the Purchase Price for such Warrant Stock
      shall be proportionately reduced.

     

    2.3 Dividends
      or Other Distributions.
      In the
      event that the Company issues additional shares of Common Stock as a dividend
      or
      other distribution with respect to the Common Stock, the number of shares of
      Warrant Stock deliverable upon exercise of this Warrant shall be determined
      in
      accordance with the terms of the Certificate of Incorporation, and the Purchase
      Price for such Warrant Stock shall be proportionately reduced. 

     

    2.4 Reorganizations.
      If
      there shall occur any capital reorganization of the Common Stock or the Warrant
      Stock (excluding mergers and consolidations covered under Section 2.5 hereto
      and
      other than a subdivision, combination, reclassification or change in par value),
      then, as part of any such reorganization, lawful provision shall be made so
      that
      the Holder shall have the right thereafter to receive upon the exercise of
      this
      Warrant the kind and amount of shares of stock or other securities or property
      which such Holder would have been entitled to receive if, immediately prior
      to
      any such reorganization, such Holder had held the number of shares of Common
      Stock which were then purchasable upon the exercise of this Warrant. In any
      such
      case, appropriate adjustment (as reasonably determined by the Board of Directors
      of the Company) shall be made in the application of the provisions set forth
      herein with respect to the rights and interests thereafter of the Holder such
      that the provisions set forth in this Section 2 (including provisions with
      respect to adjustment of the Purchase Price) shall thereafter be applicable,
      as
      nearly as is reasonably practicable, in relation to any shares of stock or
      other
      securities or property thereafter deliverable upon the exercise of this
      Warrant.

     

    2.5 Merger,
      Consolidation or Sale of Assets.
      Subject
      to the provisions of Section 7, if there shall be a merger or consolidation
      of
      the Company with or into another corporation (other than a merger or
      reorganization involving only a change in the state of incorporation of the
      Company or the acquisition by the Company of other businesses where the Company
      survives as a going concern), or the sale of all or substantially all of the
      Company’s capital stock or assets to any other person, then as a part of such
      transaction, provision shall be made so that the Holder shall thereafter be
      entitled to receive the number of shares of stock or other securities or
      property of the Company, or of the successor corporation resulting from the
      merger, consolidation or sale, to which the Holder would have been entitled
      if
      the Holder had exercised its rights pursuant to this Warrant immediately prior
      thereto. In any such case, appropriate adjustment shall be made in the
      application of the provisions of this Section 2 to the end that the provisions
      of this Section 2 shall be applicable after that event in as nearly equivalent
      a
      manner as may be practicable.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    2.6 Certificate
      of Adjustment.
      When
      any adjustment is required to be made in the Purchase Price, the Company shall
      promptly mail to the Holder a certificate setting forth the Purchase Price
      after
      such adjustment and setting forth a brief statement of the facts requiring
      such
      adjustment. Delivery of such certificate shall be deemed to be a final and
      binding determination with respect to such adjustment unless challenged by
      the
      Holder within ten (10) days of receipt thereof. Such certificate shall also
      set
      forth the kind and amount of stock or other securities or property into which
      this Warrant shall be exercisable following the occurrence of any of the events
      specified in this Section 2.

     

    3. Compliance
      with Securities Act.

     

    3.1 Unregistered
      Securities.
      The
      Holder acknowledges that this Warrant and the Warrant Stock have not been
      registered under the Securities Act of 1933, as amended, and the rules and
      regulations thereunder, or any successor legislation (the “Securities Act”), and
      agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise
      dispose of this Warrant or any Warrant Stock in the absence of (i) an effective
      registration statement under the Securities Act covering this Warrant or such
      Warrant Stock and registration or qualification of this Warrant or such Warrant
      Stock under any applicable “blue sky” or state securities law then in effect, or
      (ii) an opinion of counsel, satisfactory to the Company, that such registration
      and qualification are not required. The Company may delay issuance of the
      Warrant Stock until completion of any action or obtaining of any consent, which
      the Company deems necessary under any applicable law (including without
      limitation state securities or “blue sky” laws).

     

    3.2 Investment
      Letter.
      Without
      limiting the generality of Section 3.1, unless the offer and sale of any shares
      of Warrant Stock shall have been effectively registered under the Securities
      Act, the Company shall be under no obligation to issue the Warrant Stock unless
      and until the Holder shall have executed an investment letter in form and
      substance satisfactory to the Company, including a warranty at the time of
      such
      exercise that the Holder is acquiring such shares for its own account, for
      investment and not with a view to, or for sale in connection with, the
      distribution of any such shares.

     

    3.3 Legend.
      Certificates delivered to the Holder pursuant to Section 1.3 shall bear the
      following legend or a legend in substantially similar form:

    
       

        “THE
          SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN TAKEN FOR INVESTMENT AND
          THEY
          MAY NOT BE SOLD OR OTHERWISE TRANSFERRED BY ANY PERSON, INCLUDING A PLEDGEE,
          IN
          THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER
          THE
          SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL, SATISFACTORY
          TO
          THE COMPANY, THAT AN EXEMPTION FROM REGISTRATION IS THEN
          AVAILABLE.”

      

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
       

        “THE
          SHARES REPRESENTED BY THIS CERTIFICATE
          ARE
          SUBJECT TO THAT CERTAIN LOCK-UP AGREEMENT, DATED AS OF DECEMBER 2,
          2008.”

      

    

     

    4. Reservation
      of Stock.
      The
      Company agrees that, prior to the expiration of this Warrant, the Company will
      at all times have authorized and in reserve, and will keep available, solely
      for
      issuance or delivery upon the exercise of this Warrant, the shares of Common
      Stock and other securities and properties as from time to time shall be
      receivable upon the exercise of this Warrant, free and clear of all restrictions
      on sale or transfer and free and clear of all preemptive rights and rights
      of
      first refusal.

     

    5. Replacement
      of Warrant.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and (in the case of loss, theft or
      destruction) upon delivery of an indemnity agreement (with surety if reasonably
      required) in an amount reasonably satisfactory to the Company, or (in the case
      of mutilation) upon surrender and cancellation of this Warrant, the Company
      will
      issue, in lieu thereof, a new Warrant of like tenor.

     

    6. “Piggy
      Back” Registration.
      If at
      any time the Company shall determine to register under the Securities Act,
      any
      of its Common Stock, other than on Form S-8 or its then equivalent, it shall
      send to the Holder written notice of such determination and, if within ten
      (10)
      days after receipt of such notice, the Holder shall so request in writing,
      the
      Company shall use its commercially reasonable best efforts to include in such
      registration statement all or any part of the Warrant Stock except that if,
      in
      connection with any offering involving an underwriting of Common Stock to be
      issued by the Company, the managing underwriter shall impose a limitation on
      the
      number of shares of such Common Stock which may be included in any such
      registration statement because, in its judgment, such limitation is necessary
      to
      effect an orderly public distribution, and such limitation is imposed
pro rata
      among
      the holders of such Common Stock having an incidental “piggy back” right to
      include such Common Stock in the registration statement according to the amount
      of such Common Stock which each holder had requested to be included pursuant
      to
      such right, then the Company shall be obligated to include in such registration
      statement only such limited portion of the Warrant Stock with respect to which
      the Holder has requested inclusion hereunder.

    

    7. Termination
      Upon Certain Events.
       If
      there
      shall be a merger or consolidation of the Company with or into another
      corporation (other than a merger or reorganization involving only a change
      in
      the state of incorporation of the Company or the acquisition by the Company
      of
      other businesses where the Company survives as a going concern), or the sale
      of
      all or substantially all of the Company’s capital stock or assets to any other
      person, or the liquidation or dissolution of the Company, then as a part of
      such
      transaction, at the Company’s option, either:

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (a) provision
      shall be made so that the Holder shall thereafter be entitled to receive the
      number of shares of stock or other securities or property of the Company, or
      of
      the successor corporation resulting from the merger, consolidation or sale,
      to
      which the Holder would have been entitled if the Holder had exercised its rights
      pursuant to this Warrant immediately prior thereto (and, in such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section 7(a) to the end that the provisions of Section 3 shall be
      applicable after that event in as nearly equivalent a manner as may be
      practicable); or

     

    (b) this
      Warrant shall terminate on the effective date of such merger, consolidation
      or
      sale (the “Termination Date”) and become null and void, provided
      that if
      this Warrant shall not have otherwise terminated or expired, (1) the Company
      shall have given the Holder written notice of such Termination Date at least
      five business days prior to the occurrence thereof and (2) the Holder shall
      have
      the right until 5:00 p.m, Eastern Standard Time, on the day immediately prior
      to
      the Termination Date to exercise its rights hereunder to the extent not
      previously exercised.

     

    8. Transferability.
      Without
      the prior written consent of the Company, this Warrant shall not be assigned,
      pledged or hypothecated in any way (whether by operation of law or otherwise)
      and shall not be subject to execution, attachment or similar process. Any
      attempted transfer, assignment, pledge, hypothecation or other disposition
      of
      this Warrant or of any rights granted hereunder contrary to the provisions
      of
      this Section 8, or the levy of any attachment or similar process upon this
      Warrant or such rights, shall be null and void.

     

    9. No
      Rights as Stockholder.
      Until
      the exercise of this Warrant, the Holder shall not have or exercise any rights
      by virtue hereof as a stockholder of the Company.

     

    10. Notices.
      All
      notices, requests and other communications hereunder shall be in writing, shall
      be either (i) delivered by hand, (ii) made by telex, telecopy or facsimile
      transmission, (iii) sent by overnight courier, or (iv) sent by registered mail,
      postage prepaid, return receipt requested. In the case of notices from the
      Company to the Holder, they shall be sent to the address furnished to the
      Company in writing by the last Holder who shall have furnished an address to
      the
      Company in writing. All notices from the Holder to the Company shall be
      delivered to the Company at Asianada, Inc., 2121 Avenue of the Stars, Suite
      2550, Los Angeles, CA, 90067, Attn: President, or such other address as the
      Company shall so notify the Holder. All notices, requests and other
      communications hereunder shall be deemed to have been given (i) by hand, at
      the
      time of the delivery thereof to the receiving party at the address of such
      party
      described above, (ii) if made by telex, telecopy or facsimile transmission,
      at
      the time that receipt thereof has been acknowledged by electronic confirmation
      or otherwise, (iii) if sent by overnight courier, on the next business day
      following the day such notices is delivered to the courier service, or (iv)
      if
      sent by registered mail, on the fifth business day following the day such
      mailing is made.

    

    11. Amendment,
      Modification and Waiver.
      The
      Warrant may
      be
      amended or modified, and any provision hereof and thereof may be waived, with
      the written consent of the Company and the Holder and their successors and
      assigns. 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    12. Headings.
      The
      headings in this Warrant are for convenience of reference only and shall in
      no
      way modify or affect the meaning or construction of any of the terms or
      provisions of this Warrant.

     

    13. Governing
      Law.
      This
      Warrant will be governed by and construed in accordance with and governed by
      the
      law of the State of Delaware, without giving effect to the conflict of law
      principles thereof.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      its
      authorized officer as of the date first indicated above.      

     

    
      	
              ASIANADA,
                INC.

            	 
	 	 	 
	
              By:

            	
              /s/
                Charles Bentz

            	 
	
              Name:

            	
              Charles
                Bentz

            	 
	
              Title:

            	
              Chief
                Financial Officer

            	 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    PURCHASE
      FORM

    

    To: ASIANADA,
      INC.

    

    The
      undersigned pursuant to the provisions set forth in the attached Warrant (No.
      W-____), hereby irrevocably elects to (check one):

    
      
        	 	 	 	 
	 	
              	 	
                (A)
                  purchase ___ shares of Common Stock, par value $0.001 per share
                  (the
                  “Common Stock”) of ASIANADA, INC., covered by such Warrant and herewith
                  makes payment of $_____________, representing the full purchase
                  price for
                  such shares at the price per share provided for in such Warrant;
                  or

              
	 	 	 	 
	 	 	 	
                (B)
                  convert ___ Converted Warrant Shares into that number of shares
                  of fully
                  paid and nonassessable shares of Common Stock, determined pursuant
                  to the
                  provisions of Section 1.4 of the
                  Warrant.

              

      

    

     

    The
      Common Stock for which the Warrant may be exercised or converted shall be known
      herein as the “Warrant Stock.”

    

    The
      undersigned is aware that the Warrant Stock has not been and will not be
      registered under the Securities Act of 1933, as amended (the “Securities Act”)
      or any state securities laws. The undersigned understands that reliance by
      the
      Company on exemptions under the Securities Act is predicated in part upon the
      truth and accuracy of the statements of the undersigned in this Purchase
      Form.

    

    The
      undersigned represents and warrants that (1) it has been furnished with all
      information which it deems necessary to evaluate the merits and risks of the
      purchase of the Warrant Stock, (2) it has had the opportunity to ask questions
      concerning the Warrant Stock and the Company and all questions posed have been
      answered to its satisfaction, (3) it has been given the opportunity to obtain
      any additional information it deems necessary to verify the accuracy of any
      information obtained concerning the Warrant Stock and the Company and (4) it
      has
      such knowledge and experience in financial and business matters that it is
      able
      to evaluate the merits and risks of purchasing the Warrant Stock and to make
      an
      informed investment decision relating thereto.

    

    The
      undersigned hereby represents and warrant that it is purchasing the Warrant
      Stock for its own account for investment and not with a view to the sale or
      distribution of all or any part of the Warrant Stock.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    The
      undersigned understands that because the Warrant Stock has not been registered
      under the Securities Act, it must continue to bear the economic risk of the
      investment for an indefinite period of time and the Warrant Stock cannot be
      sold
      unless it is subsequently registered under applicable federal and state
      securities laws or an exemption from such registration is
      available.

    

    The
      undersigned agrees that it will in no event sell or distribute or otherwise
      dispose of all or any part of the Warrant Stock unless (1) there is an effective
      registration statement under the Securities Act and applicable state securities
      laws covering any such transaction involving the Warrant Stock, or (2) the
      Company receives an opinion satisfactory to the Company of the undersigned’s
      legal counsel stating that such transaction is exempt from registration. The
      undersigned consents to the placing of a legend on its certificate for the
      Warrant Stock stating that the Warrant Stock has not been registered and setting
      forth the restriction on transfer contemplated hereby and to the placing of
      a
      stop transfer order on the books of the Company and with any transfer agents
      against the Warrant Stock until the Warrant Stock may be legally resold or
      distributed without restriction.

    

    The
      undersigned has considered the federal and state income tax implications of
      the
      exercise of the Warrant and the purchase and subsequent sale of the Warrant
      Stock.

    

    
      	 
	 	 
	
              Dated:

            	 

    

    
      
        
        

      

      
        12

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