Document:

EX-4.2

EXHIBIT 4.2

CLASS B WARRANT AGREEMENT

THIS CLASS B WARRANT AGREEMENT (this “Agreement”), dated as of January 21, 2010, is entered
into by and between Aastrom Biosciences, Inc., a Michigan corporation (the “Company”), and
Continental Stock Transfer & Trust Company, a New York corporation (the “Warrant Agent”).

WHEREAS, the Company is engaged in a public offering (the “Public Offering”) of units (the
“Units”) and, in connection therewith, has determined to issue and deliver up to 53,077,100 Class B
Warrants (the “Warrants”), subject to adjustment as provided herein, to the public investors, each
of such Warrants evidencing the right of the holder thereof to purchase 0.50 of a share of the
Company’s common stock, no par value (the “Common Stock”);

WHEREAS, the Company has filed with the Securities and Exchange Commission a Registration
Statement on Form S-3, No. 333-155739 (the “Registration Statement”), for the registration, under
the Securities Act of 1933, as amended (the “Act”), of, among other securities, the Warrants and
the Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”);

WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, registration, transfer,
exchange, redemption and exercise of the Warrants;

WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms
upon which they shall be issued and exercised, and the respective rights, limitation of rights, and
immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

WHEREAS, all acts and things have been done and performed that are necessary to make the
Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant
Agent, as provided herein, the valid, binding and legal obligations of the Company, and to
authorize the execution and delivery of this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as
agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and
agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

2. Warrants.

2.1 Form of Warrant. Each Warrant shall be (a) issued in registered form only, (b) in
substantially the forms of Exhibit A, hereto, the provisions of which are incorporated
herein, and (c) signed by, or bear the facsimile signature of, the President and the Secretary of
the Company. In the event the person whose facsimile signature has been placed upon any Warrant
shall have ceased to serve in the capacity in which such person signed the Warrant before such
Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such
at the date of issuance.

2.2 Effect of Countersignature. Unless and until countersigned by the Warrant Agent
pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by
the holder thereof.

2.3 Registration.

2.3.1 Warrant Register. The Warrant Agent shall maintain books (the “Warrant
Register”) for the registration of the original issuance and transfers of the Warrants. Upon the
initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the
names of the respective holders thereof in such denominations and otherwise in accordance with
instructions delivered to the Warrant Agent by the Company.

2.3.2 Registered Holder. Prior to due presentment for registration of transfer of any
Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant
shall be registered upon the Warrant Register (the “registered holder”), as the absolute owner of
such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or
other writing on the warrant certificate made by anyone other than the Company or the Warrant
Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the
Company nor the Warrant Agent shall be affected by any notice to the contrary.

3. Terms and Exercise of Warrants.

3.1 Exercise Price. Each Warrant shall, when countersigned by the Warrant Agent,
entitle the registered holder thereof, subject to the provisions of such Warrant and of this
Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated
therein, at the price of $0.26 per whole share (the “Exercise Price”), subject to the adjustments
provided in Section 4 hereof .

3.2 Duration of Warrants. A Warrant may be exercised only during the period
(“Exercise Period”) commencing on the date of issuance and terminating at 5:30 p.m., New York City
time six months from the start of the Exercise Period (the “Expiration Date”). Each Warrant not
exercised on or before the Expiration Date shall become void, and all rights thereunder and all
rights in respect thereof under this Agreement shall cease at the close of business on the
Expiration Date.

3.3 Exercise of Warrants.

(a) A registered holder may exercise the Warrants only through a cash exercise (a “Cash
Exercise”). Notwithstanding the foregoing or anything else herein to the contrary, if the Company
is for any reason unable to issue and deliver Warrant Shares upon exercise of this Warrant as
required pursuant to the terms hereof, the Company shall have no obligation to pay to the
registered holder any cash or other consideration or otherwise “net cash settle” this Warrant.

(b) At such times, and upon such representations and agreements, if applicable, upon surrender
of a Warrant Certificate and delivery of the Form of Election to Purchase (with the Warrant Shares
Exercise Log attached) to the Warrant Agent at its address for notice set forth in Section 9.2
hereof, andupon payment of the Exercise Price multiplied by the number of Warrant Shares that the
registered holder intends to purchase thereunder (which must be a whole number) (the “Aggregate
Exercise Price”), the Company shall promptly issue and deliver to the registered holder a
certificate for the Warrant Shares issuable upon such exercise. Any Person so designated by the
registered holder to receive Warrant Shares shall be deemed to have become holder of record of such
Warrant Shares as of the Date of Exercise of the relevant Warrant Certificate. For so long as there
is a then effective registration statement covering the issuance of the Warrant Shares, the Warrant
Shares shall be issued free of all restrictive legends, and the Company shall, upon request of the
registered holder, if available, use commercially reasonable efforts to deliver Warrant Shares
hereunder electronically through the Depository Trust Corporation or another established clearing
corporation performing similar functions. If fewer than all Warrant Shares issuable upon exercise
of the relevant Warrant Certificate are purchased on such Date of Exercise, then the Company will
execute and deliver to the registered holder or its assigns a New Warrant Certificate (dated the
date thereof) evidencing the unexercised portion of the relevant Warrant Certificate.

3.3.1 Valid Issuance. All shares of Common Stock issued upon the proper exercise of a
Warrant in conformity with this Agreement shall be validly issued, fully paid and nonassessable.

3.3.2 Date of Issuance. Each person in whose name any such certificate for shares of
Common Stock is issued shall for all purposes be deemed to have become the holder of record of such
shares on the date on which the Warrant was surrendered and payment of the Exercise Price was made,
irrespective of the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of business on the
next succeeding date on which the stock transfer books are open.

4. Adjustments.

4.1 Stock Dividends and Splits. If the Company, (i) pays a stock dividend on its
Common Stock or otherwise makes a distribution on any class of capital stock that is payable in
shares of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger number
of shares, (iii) combines its outstanding shares of Common Stock into a smaller number of shares or
(iv) issues by reclassification of shares of Common Stock any shares of capital stock of the
Company, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately before such event
and the denominator of which shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution, and any adjustment pursuant to clause (ii), (iii) or (iv) of
this paragraph shall become effective immediately after the effective date of such subdivision or
combination or reclassification.

4.2 Pro Rata Distributions. If the Company, at any time while the Warrants are
outstanding, distributes to all holders of Common Stock for no consideration (i) evidences of its
indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding
paragraph) or (iii) rights, options or warrants to subscribe for or purchase any security, or (iv)
any other asset (including cash or cash dividends) (in each case, “Distributed Property”), then,
upon any exercise of the Warrants that occurs after the record date fixed for determination of
stockholders entitled to receive such distribution, the registered holder shall be entitled to
receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable),
the Distributed Property that such registered holder would have been entitled to receive in respect
of such number of Warrant Shares had the registered holder been the record holder of such Warrant
Shares immediately prior to such record date without regard to any limitation on exercise contained
therein.

4.3 Fundamental Transactions. If (i) the Company effects any merger or consolidation
of the Company with or into another Person, in which the Company is not the survivor or the
stockholders of the Company immediately prior to such merger or consolidation do not own, directly
or indirectly, at least 50.1% of the voting securities of the surviving entity, (ii) the Company
effects any sale, lease, assignment, transfer, conveyance or other distribution of all or
substantially all of its assets is acquired by a third party, in each case, in one or a series of
related transactions, (iii) any direct or indirect purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which at least a majority of
the holders of Common Stock are permitted to tender or exchange their shares for other securities,
cash or property, (iv) the Company, directly or indirectly, in one or more related transactions,
effects any reorganization, recapitalization or reclassification of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (other than as a result of a subdivision or
combination of shares of Common Stock covered by Section 4.1 above), or (v) the Company, directly
or indirectly, in one or more related transactions consummates a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another person whereby such other person acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the
other person or other persons making or party to, or associated or affiliated with the other
persons making or party to, such stock or share purchase agreement or other business combination)
(in any such case, a “Fundamental Transaction”), then the registered holder shall have the right
thereafter to receive, upon exercise of the Warrant, the same amount and kind of securities, cash
or property as it would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the
number of Warrant Shares then issuable upon exercise in full of the Warrant without regard to any
limitations on exercise contained in the Warrant (the “Alternate Consideration”). The Company
shall not effect any such Fundamental Transaction unless prior to or simultaneously with the
consummation thereof, any successor to the Company, surviving entity or the corporation purchasing
or otherwise acquiring such assets or other appropriate corporation or Person shall assume the
obligation to deliver to the registered holder, such Alternate Consideration as, in accordance with
the foregoing provisions, the registered holder may be entitled to receive, and the other
obligations under the Warrant.

4.4 [Intentionally Omitted.]

4.5 Notices of Changes in Warrant. Upon every adjustment of the Exercise Price or the
number of shares issuable upon exercise of a Warrant, the Company shall give written notice thereof
to the Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment
and the increase or decrease, if any, in the number of shares purchasable at such price upon the
exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts
upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1,
4.2, 4.3 and 4.4, then, in any such event, the Company shall give written notice to each Warrant
holder, at the last address set forth for such holder in the Warrant Register, of the record date
or the effective date of the event, and, upon written request, provide such holder with a copy of
the notice provided to the Warrant Agent. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of such event.

4.6 No Fractional Shares. Notwithstanding any provision contained in this Warrant
Agreement to the contrary, the Company shall not issue fractional shares upon exercise of Warrants.
If the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a
fractional interest in a share, the Company shall, upon such exercise, round down to the nearest
whole number the number of shares of Common Stock to be issued to the Warrant holder and shall pay
the holder in cash the fair market value (based on the Closing Sales Prices) for any such
fractional shares.

5. Transfer and Exchange of Warrants.

5.1 Registration of Transfer. The Warrant Agent shall register the transfer, from
time to time, of any outstanding Warrant in the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent.
The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time
upon request.

5.2 Charges, Taxes and Expenses. No charges shall be made for any issuance and
delivery of shares of Common Stock upon exercise of the Warrant for any issue or transfer tax,
transfer agent fee or other incidental tax or expense in respect of the issuance of such shares,
all of which taxes and expenses shall be paid by the Company; provided, however, that the Company
shall not be required to pay any tax that may be payable in respect of any transfer involved in the
registration of any Warrant Shares or the Warrants in a name other than that of the registered
holder or an affiliate thereof. The registered holder shall be responsible for all other tax
liability that may arise as a result of holding or transferring the Warrant or receiving Warrant
Shares upon exercise hereof.

5.3 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to
countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required
to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by
the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the
Company for such purpose.

6. Other Provisions Relating to Rights of Holders of Warrants.

6.1 No Rights as Stockholder. A Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company, including the right to receive
dividends, or other distributions, exercise any preemptive rights to vote or to consent or to
receive notice as stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

6.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If a Warrant is mutilated, lost,
stolen or destroyed, the Company and the Warrant Agent shall issue or cause to be issued in
exchange and substitution for and upon cancellation thereof, or in lieu of and substitution for the
Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of
such loss, theft or destruction (in such case) and, in each case, a customary and reasonable
indemnity or surety bond, if requested by the Company.

6.3 Reservation of Common Stock. The Company shall at all times reserve and keep
available a number of its authorized but unissued shares of Common Stock that will be sufficient to
permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

7. Concerning the Warrant Agent and Other Matters.

7.1 Payment of Taxes. The Company will from time to time promptly pay all taxes and
charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or
delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be
obligated to pay any transfer taxes in respect of the Warrants or such shares.

7.2 Resignation, Consolidation, or Merger of Warrant Agent.

7.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to
it hereafter appointed, may resign its duties and be discharged from all further duties and
liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the
office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the
Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the
Company shall fail to make such appointment within a period of 30 days after it has been notified
in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant
(who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then
the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of
New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor
Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized
and existing under the laws of the State of New York, in good standing and having its principal
office in the Borough of Manhattan, City and State of New York, and authorized under such laws to
exercise corporate trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like
effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if
for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and
deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request
of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and
all instruments in writing for more fully and effectually vesting in and confirming to such
successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

7.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall
be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the
transfer agent for the Common Stock not later than the effective date of any such appointment.

7.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which the
Warrant Agent may be merged or with which it may be consolidated or any corporation resulting from
any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Agreement without any further act.

7.3 Fees and Expenses of Warrant Agent.

7.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable
remuneration for its services as such Warrant Agent hereunder and will reimburse the Warrant Agent
upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of
its duties hereunder.

7.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the Warrant Agent for the
carrying out or performing of the provisions of this Agreement.

7.4 Liability of Warrant Agent.

7.4.1 Reliance on Company Statement. Whenever in the performance of its duties under
this Warrant Agreement the Warrant Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a statement signed by the President or
Chairman of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may
rely upon such statement for any action taken or suffered in good faith by it pursuant to the
provisions of this Agreement.

7.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own gross
negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent and
save it harmless against any and all liabilities, including judgments, costs and reasonable counsel
fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

7.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the
validity of this Agreement or with respect to the validity or execution of any Warrant (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to
make any adjustments required under the provisions of Section 4 hereof or responsible for the
manner, method or amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares of Common Stock to
be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock
will when issued be valid and fully paid and nonassessable.

7.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by
this Agreement and agrees to perform the same upon the terms and conditions herein set forth and,
among other things, shall account promptly to the Company with respect to Warrants exercised and
concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the
purchase of shares of Common Stock through the exercise of Warrants.

7.6 Waiver. The Warrant Agent hereby waives any and all right, title, interest or
claim of any kind (“Claim”) in or to any distribution of the Trust Account (as defined in that
certain Investment Management Trust Agreement, dated as of the date hereof, by and between the
Company and the Warrant Agent, as trustee thereunder), and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason
whatsoever.

8. Limitations on Exercise.

8.1 Notwithstanding anything to the contrary contained herein, the number of Warrant Shares
that may be acquired by the registered holder upon any exercise of the Warrant (or otherwise in
respect hereof) shall be limited to the extent necessary to ensure that, following such exercise
(or other issuance), the total number of shares of Common Stock then beneficially owned by the
registered holder and its affiliates and any other persons whose beneficial ownership of Common
Stock would be aggregated with the registered holder’s for purposes of Section 13(d) of the
Exchange Act, does not exceed 4.99% of the total number of issued and outstanding shares of Common
Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such
purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. For purposes of this Section 8.1, in
determining the number of outstanding shares of Common Stock, a registered holder may rely on the
number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (B) a more recent public
announcement by the Company or (C) a more recent written notice by the Company or its transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral
request of a registered holder, the Company shall within two trading days confirm orally and in
writing to the registered holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant, by the registered
holder or its affiliates since the date as of which such number of outstanding shares of Common
Stock was reported. The Company’s obligation to issue shares of Common Stock in excess of the
limitation referred to in this Section shall be suspended (and, except as provided below, shall not
terminate or expire notwithstanding any contrary provisions hereof) until such time, if any, as
such shares of Common Stock may be issued in compliance with such limitation; provided that if, as
of 5:30 P.M., New York City time, on the Expiration Date, the Company has not received written
notice that the shares of Common Stock may be issued in compliance with such limitation, the
Company’s obligation to issue such shares shall terminate. This provision shall not restrict the
number of shares of Common Stock which a registered holder may receive or beneficially own in order
to determine the amount of securities or other consideration that such registered holder may
receive in the event of a Fundamental Transaction as contemplated in Section 4.3 of this Agreement.
By written notice to the Company, the registered holder may waive the provisions of this Section
but any such waiver will not be effective until the 61st day after such notice is delivered to the
Company, nor will any such waiver affect any other registered holder. It shall not be the
responsibility of the Warrant Agent to monitor the limitations on exercises imposed by this Section
8.1.

8.2 Notwithstanding anything to the contrary contained herein, the number of Warrant Shares
that may be acquired by the registered holder upon any exercise of this Warrant (or otherwise in
respect hereof) shall be limited to the extent necessary to ensure that, following such exercise
(or other issuance), the total number of shares of Common Stock then beneficially owned by such
registered holder and its affiliates and any other persons whose beneficial ownership of Common
Stock would be aggregated with the registered holder’s for purposes of Section 13(d) of the
Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of Common
Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For
such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. The Company’s obligation to
issue shares of Common Stock in excess of the limitation referred to in this Section shall be
suspended (and, except as provided below, shall not terminate or expire notwithstanding any
contrary provisions hereof) until such time, if any, as such shares of Common Stock may be issued
in compliance with such limitation; provided that if, as of 5:30 P.M., New York City time, on the
Expiration Date, the Company has not received written notice that the shares of Common Stock may be
issued in compliance with such limitation, the Company’s obligation to issue such shares shall
terminate. This provision shall not restrict the number of shares of Common Stock which a
registered holder may receive or beneficially own in order to determine the amount of securities or
other consideration that such Holder may receive in the event of a Fundamental Transaction as
contemplated in Section 4.3 of this Agreement. This restriction may not be waived. It shall not
be the responsibility of the Warrant Agent to monitor the limitations on exercises imposed by this
Section 8.2.

9. Miscellaneous Provisions.

9.1 Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective
successors and assigns.

9.2 Notices. Any notice, statement or demand authorized by this Warrant Agreement to
be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be
delivered by hand or sent by registered or certified mail or overnight courier service, addressed
(until another address is filed in writing by the Company with the Warrant Agent) as follows:

Aastrom Biosciences, Inc.

24 Frank Lloyd Wright Drive

Ann Arbor, MI 48106

Attn: President

Any notice, statement or demand authorized by this Agreement to be given or made by the holder of
any Warrant or by the Company to or on the Warrant Agent shall be delivered by hand or sent by
registered or certified mail or overnight courier service, addressed (until another address is
filed in writing by the Company with the Warrant Agent) as follows:

	 	 	 
	Continental Stock Transfer & Trust Company

	17 Battery Place

	 	

	New York, New York 10004

	Attn:

	 	Compliance Department

Any notice, statement or demand authorized by this Agreement to be given or made by the Company or
by the Warrant Agent to or on the holder of any Warrant shall be delivered by hand or sent by
registered or certified mail or overnight courier service, addressed (until another address is
filed in writing by the holder with the Warrant Agent) as set forth on the Warrant Register

Any notice, sent pursuant to this Warrant Agreement shall be effective, if delivered by hand, upon
receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next
business day of the delivery to the courier, and if sent by registered or certified mail on the
third day after registration or certification thereof.

9.3 Applicable Law. The validity, interpretation and performance of this Agreement
and of the Warrants shall be governed in all respects by the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the application of the
substantive laws of another jurisdiction. The Company hereby agrees that any action, proceeding or
claim against it arising out of or relating in any way to this Agreement shall be brought and
enforced in the courts of the State of New York or the United States District Court for the
Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and
that such courts represent an inconvenient forum. Any such process or summons to be served upon
the Company may be served by transmitting a copy thereof by registered or certified mail, return
receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof.
Such mailing shall be deemed personal service and shall be legal and binding upon the Company in
any action, proceeding or claim.

9.4 Persons Having Rights under this Agreement. Nothing in this Agreement expressed
and nothing that may be implied from any of the provisions hereof is intended, or shall be
construed, to confer upon, or give to, any person or corporation other than the parties hereto and
the registered holders of the Warrants any right, remedy, or claim under or by reason of this
Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All
covenants, conditions, stipulations, promises, and agreements contained in this Warrant Agreement
shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns
and of the registered holders of the Warrants.

9.5 Examination of the Warrant Agreement. A copy of this Agreement shall be available
at all reasonable times at the office of the Warrant Agent in the Borough of Manhattan, City and
State of New York, for inspection by the registered holder of any Warrant. The Warrant Agent may
require any such holder to submit his, her or its Warrant for inspection by it.

9.6 Counterparts. This Agreement may be executed in any number of original or
facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the same instrument.

9.7 Effect of Headings. The section headings herein are for convenience only and are
not part of this Warrant Agreement and shall not affect the interpretation thereof.

9.8 Amendments. This Agreement may be amended by the parties hereto without the
consent of any registered holder for the purpose of curing any ambiguity, or curing, correcting or
supplementing any defective provision contained herein or adding or changing any other provisions
with respect to matters or questions arising under this Agreement as the parties may deem necessary
or desirable and that the parties deem shall not adversely affect the interest of the registered
holders. All other modifications or amendments, including any amendment to increase the Exercise
Price or shorten the Exercise Period, shall require the written consent of the registered holders
of a majority of the then outstanding Warrants.

9.9 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

[Signature page follows]IN WITNESS WHEREOF, this Agreement has been duly executed by
the parties hereto as of the day and year first above written.

AASTROM BIOSCIENCES, INC.

By: /s/ Timothy M. Mayleben

Name: Timothy M. Mayleben

Title: President and Chief Executive Officer

CONTINENTAL STOCK TRANSFER & TRUST COMPANY

By: /s/ John W. Comer, Jr.

Name: John W. Comer, Jr.

Title: Vice President

Exhibit A

EXERCISABLE ON OR AFTER JANUARY 21, 2010

AND ON OR BEFORE JULY 21, 2010 (THE EXPIRATION DATE)

CLASS B WARRANTS

TO ACQUIRE _______ SHARES OF COMMON STOCK OF

AASTROM BIOSCIENCES, INC.

Warrant Certificate No.:        CUSIP: 00253U 156

This Warrant Certificate certifies that      , or registered assigns, is the
registered holder of a Class B Warrant (the “Warrant”) to acquire from Aastrom Biosciences, Inc., a
Michigan corporation (the “Company”), the number of fully paid and non-assessable shares of Common
Stock, no par value, of the Company (the “Common Stock”) specified above for consideration equal to
the Exercise Price (as defined in the Warrant Agreement) per share of Common Stock. The Exercise
Price and number of shares of Common Stock and/or type of securities or property issuable upon
exercise of the Warrant are subject to adjustment upon the occurrence of certain events as set
forth in the Warrant Agreement. The Warrant evidenced by this Warrant Certificate shall not be
exercisable after and shall terminate and become void as of 5:30 P.M., New York time, on the
Expiration Date.

The Warrant evidenced by this Warrant Certificate is part of a duly authorized issue of warrants
expiring on the Expiration Date entitling the registered holder hereof to receive shares of Common
Stock, and is issued or to be issued pursuant to a Warrant Agreement dated January 21, 2010 (the
“Warrant Agreement”), duly executed and delivered by the Company to Continental Stock Transfer &
Trust Company, as warrant agent (the “Warrant Agent”, which term includes any successor Warrant
Agent under the Warrant Agreement), which Warrant Agreement is hereby incorporated by reference in
and made a part of this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the
Company and the registered holders (“Holders” meaning, from time to time, the registered holders of
the warrant issued thereunder). To the extent any provisions of this Warrant Certificate conflicts
with any provision of the Warrant Agreement, the provisions of the Warrant Agreement shall apply. A
copy of the Warrant Agreement may be obtained by the Holder hereof upon written request to the
Company at 24 Frank Lloyd Wright Drive, Ann Arbor, MI 48106. Capitalized terms not defined herein
have the meanings ascribed thereto in the Warrant Agreement.

This Warrant may be exercised, in whole or in part, at any time on or after the date hereof and on
or before July 21, 2010 (the “Expiration Date”), subject to the terms of the Warrant Agreement
including, but not limited to, Section 3 thereof, by surrendering this Warrant Certificate, with
the Form of Election to Purchase set forth hereon properly completed and executed, together with
payment of the Aggregate Exercise Price in accordance with Section 3 of the Warrant Agreement. Each
exercise must be for a whole number of Warrant Shares. In the event that upon any exercise of the
Warrant evidenced hereby the number of shares of Common Stock acquired shall be less than the total
number of shares of Common Stock which may be purchased pursuant to this Warrant, there shall be
issued to the Holder hereof or such Holder’s assignee a new Warrant Certificate evidencing the
unexercised portion of this Warrant.

The Warrant Agreement provides that upon the occurrence of certain events the Exercise Price set
forth on this Warrant Certificate may, subject to certain conditions, be adjusted, and that upon
the occurrence of certain events the number of shares of Common Stock and/or the type of securities
or other property issuable upon the exercise of this Warrant shall be adjusted. No fractions of a
share of Common Stock will be issued upon the exercise of this Warrant, but the Company will pay
the cash value thereof determined as provided in the Warrant Agreement.

Warrant Certificates, when surrendered at the office of the Warrant Agent by the registered Holder
thereof in person or by such Holder’s legal representative or attorney duly appointed and
authorized in writing, may be exchanged, in the manner and subject to the limitations provided in
the Warrant Agreement, but without payment of any service charge, for another Warrant Certificate
or Warrant Certificates of like tenor evidencing in the aggregate the right to purchase a like
number of Warrant Shares.

Each taker and holder of this Warrant Certificate, by taking or holding the same, consents and
agrees that the holder of this Warrant Certificate when duly endorsed in blank may be treated by
the Company, the Warrant Agent and all other persons dealing with this Warrant Certificate as the
absolute owner hereof for any purpose and as the person entitled to exercise the rights represented
hereby or the person entitled to the transfer hereof on the register of the Company maintained by
the Warrant Agent, any notice to the contrary notwithstanding, provided that until such transfer on
such register, the Company and the Warrant Agent may treat the registered Holder hereof as the
owner for all purposes.

This Warrant does not entitle any Holder to any of the rights of a shareholder of the Company.

This Warrant and the Warrant Agreement are subject to amendment as provided in the Warrant
Agreement.

This Warrant Certificate shall not be valid or obligatory for any purpose until it shall have been
countersigned by the Warrant Agent.

[The remainder of this page has been left intentionally blank.]

1

IN WITNESS WHEREOF, the undersigned have caused this Warrant Certificate to be executed as of the
date set forth below.

AASTROM BIOSCIENCES, INC.

By:

Name:

Title:

Countersigned:

CONTINENTAL STOCK TRANSFER &

TRUST COMPANY

By:

Name:

Title:

2

FORM OF ELECTION TO EXERCISE

To Aastrom Biosciences, Inc.:

In accordance with the Warrant Certificate enclosed with this Form of Election to Exercise, the
undersigned hereby irrevocably elects to exercise the Warrant with respect to      
Warrant Shares in accordance with the terms of the Warrant Agreement.

The Holder shall pay the Aggregate Exercise Price, in lawful money of the United States, by
certified check or bank draft payable to the order of the Company (or as otherwise agreed to by the
Company) delivered to the Warrant Agent, together with any applicable taxes payable by the
undersigned pursuant to the Warrant.

The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of

	 	 	 
	Name:       

	Address:

	 	     

      

      

Social Security or Tax I.D. No.:       

3qumi_ex101.htm

    
      Exhibit
10.1

       

      RESTATED
CONSULTING SERVICES AGREEMENT

       

      THIS
CONSULTING AGREEMENT (the “Agreement”), is made and entered into as of this 2nd
day of August, 2009 (the “Effective Date”), by and among WQN, Inc., a Texas
corporation (the “Company”), Quamtel, Inc., (“Parent”) and iTella, Inc.,
(hereinafter referred to as “Consultant”), as amended and restated on December
1, 2009.  The Company and Consultant are sometimes collectively
referred to as “Parties” or individually as a “Party”.

       

      R E C I T
A L S

       

      WHEREAS,
the Company is an emerging global provider of advanced communications services
specializing in Virtual calling cards with 100% online distribution, residential
and Business phone replacement services with low cost international termination
and Toll Free-Virtual Fax with unified messaging capabilities utilizing Voice
over Internet Protocol (VOIP) as its core technology component; and

       

      WHEREAS,
Consultant has significant experience with operations, administration,
financing, marketing and day to day operations of the Company; and

       

      WHEREAS,
the Company desires to utilize Consultant’s business expertise and Consultant
desires to provide services to the Company.

       

      NOW,
THEREFORE, in consideration of the mutual promises and agreements set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby expressly acknowledged, the Parties agree as
follows:

       

      A G R E E M E N
T

       

      ARTICLE
I

       

      APPOINTMENT

       

      1.1           Appointment.  The
Company hereby engages Consultant to furnish the services described in
Article 3 of this Agreement, and Consultant hereby accepts such
engagement.  The Consultant agrees to use its best efforts to perform
its duties, responsibilities, and obligations set forth in this
Agreement.

       

      1.2           Status of the
Parties.  It is expressly understood and agreed that in the
performance of services under this Agreement, Consultant shall, at all times, be
an independent contractor with respect to the Company, and not an agent, officer
or employee of the Company.  Further, it is expressly understood and
agreed by the Parties that nothing contained in this Agreement is intended to
create a joint venture, partnership, association or other affiliation or like
relationship between the Parties.  In no event shall either Party be
liable for the debts or obligations of the other Party.  Consultant
understands that it will not be treated as an employee for Federal tax purposes
and that Consultant shall be responsible for all taxes, Social Security and FICA
payments and withholding.

        

      Consultant
shall not be entitled or eligible to receive workman’s compensation insurance,
disability or unemployment insurance benefits or any other employee benefits
offered by the Company to its employees.

       

      
        
          	 
      	
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      ARTICLE
II

       

      CONDITIONS
AND TERMS OF AGREEMENT

       

      The
Company shall at all times retain and exercise full control over the operations
of the Company’s business.  Nothing in this Agreement shall be deemed
to delegate to Consultant any such control or
responsibility.  Consultant shall perform only those functions set
forth in this Agreement or otherwise delegated by the Company, and shall be
solely responsible for determining the manner in which the services are
rendered.  The Company shall provide Consultant with access to the
Company’s premises and its employees to enable Consultant to perform its
services hereunder.

       

      ARTICLE
III

       

      OBLIGATIONS
OF CONSULTANT

       

      Consultant
shall devote its best efforts, skill and sufficient time and attention to carry
out its responsibilities under this Agreement.  Consultant shall
report to the Chief Executive Officer of the Company (the “Chief Executive
Officer”) and the Board of Directors of the Company (the “Board of
Directors”).  Consultant shall provide, at the reasonable request of
the Chief Executive Officer and the Board of Directors (the “Management”),
advanced business strategy, financing, product development and marketing advice
including but not limited to day to day operations.  Consultant shall
act in substantial accordance with all reasonable instructions and directives of
Management.  Consultant shall comply with all written policies and
procedures of the Company that are furnished to it and which are applicable to
Company employees in general, in connection with the performance of services
hereunder.  Consultant shall be available, at reasonable times and
upon reasonable notice, to consult with Management.

       

      ARTICLE
IV

       

      PAYMENT

       

      4.1           Consideration.  In
consideration of the services provided by Consultant pursuant to this Agreement,
the Company shall pay to Consultant $200,000 on an annual (12 calendar month)
basis for a period of six months then after the first six months starting
February 1, 2010 the annual basis will increase to $250,000. All payments
shall be payable in equal monthly installments commencing on the Effective Date
of August 2, 2009, and the above base compensation shall be in addition to
the profit sharing compensation listed in Section 5.2 and other benefits
listed in Article V.

       

      4.2           Reasonableness of
Payments.  The amounts paid to Consultant hereunder have been
determined by the Parties in good faith and through arms-length negotiation and
are intended to be based on fair market value for the services rendered by the
Consultant.

       

      
        
          	
                	
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      ARTICLE
V

       

      BUSINESS
EXPENSES; ADDITIONAL BENEFITS

       

      5.1           Reimbursement of
Expenses.  The Company shall reimburse Consultant for business
expenses incurred in the performance of its services pursuant to this Agreement,
including, without limitation, travel, entertainment, and the use of any and all
communications devices without limit.  Requests for reimbursement must
be in writing and accompanied by appropriate documentation.

       

      5.2           Revenue
Sharing.  Consultant shall be entitled to and is due to receive
revenue sharing in such amounts of a total of nine percent (9%) of all current
and future Parent and  Company  gross revenues, but in no
event more than $800,000 in any calendar year.  Gross revenues are
payable at such times as results are reported in quarterly
Form 10-Q’s.  This benefit is owing and due over the life of the
contract and any renewals.

       

      5.3           Office Space.
Consultant shall maintain at its expense its own business office suitable for
use by Consultant in the performance of its services at the Company’s executive
offices or at a location satisfactory to Consultant, and in addition Consultant
shall be provided adequate work space in the Company’s offices.

       

      5.4           Stock Option
Plan.  In consideration of the execution by Consultant of this
Agreement and for services rendered hereunder, employees of
Consultant  may be eligible for grants of stock options pursuant to
the Parent’s  Equity Incentive  Plan, in such amounts as may
from time to time be determined by the Board of Directors of Parent (or the
Stock Option/Compensation Committee), in its sole discretion..

       

      ARTICLE
VI

       

      TERM
OF AGREEMENT

       

      6.1           Term.  The
term of this Agreement shall be for a period of Five years from the Effective
Date.  This Agreement shall automatically renew for successive one
year period if approved by both parties.  This Agreement shall
automatically terminate upon (i) failure of the Consultant to perform its duties
hereunder; (ii) failure of Consultant to provide adequate staffing for its
obligations, or (iii) a Change of Control of the Company, as defined below
, in which case  Consultant shall be entitled to receive (a) a
lump sum payment from the Company, within five (5) days after such termination,
equal to the consideration, as defined in Sections 4.1, 5.2, 5.4, 5.5 and
5.6 due to Consultant for the remaining term of this Agreement and (b) any and
all stock options granted to Consultant shall immediately vest, and become
exercisable in accordance with their terms.  Sections 5.2, 5.4,
5.5 and 5.6 shall be calculated throughout the term based on reasonable
projections in conjunction with a six month trailing average.

       

      6.2           Force
Majeure.  The inability of any Party to commence or complete
its obligations hereunder by the dates required resulting from delays caused by
strikes, walk-outs, insurrection, fires, floods, hurricane, freight embargoes,
epidemics, quarantine restrictions, any law, act, order, proclamation,
decree, regulation, ordinance or any other acts of any governmental or judicial
authority, acts of God, acts of terrorists, war, emergencies, equipment
failures, shortages or unavailability of materials, unavailability of necessary
utilities or other similar causes beyond the Party’s reasonable control which
shall have been timely communicated to the other Party, shall extend the period
for the performance of the obligations for the period equal to the period(s) of
any such delays(s); provided that such Party shall continue to perform to the
extent feasible in view of such force majeure event.

      
         

        
          
            	
                  	
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      6.3           Change in Control of the
Company Defined.  The term “Change in Control of the Company”
shall mean (i) the approval by the shareholders of the Company ‘s Parent of a
reorganization, merger, consolidation or other form of corporate transaction or
series of transactions, in each case, with respect to which persons who were the
shareholders of the Company immediately prior to such reorganization, merger or
consolidation or other transaction do not, immediately thereafter, own more than
50% of the combined voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated company’s then outstanding
voting securities, or (ii) the sale of all or substantially all of the assets of
the Company or (iii) the liquidation of the Company  or its Parent ,
or (iv) a change in the composition of the Board of Directors such that the
present members do not constitute a majority of the Board of
Directors.

       

      6.4           Section 280G or
409.  In the event Consultant is considered a “specified
employee” as defined in Internal Revenue Code (“Code”)
Section 409(A)(2)(B)(i), or in the event that any payment, benefit or
compensation (within the meaning of Sections 280G(b)(2) or 409A of the
Code) to the Consultant or for its benefit is paid or payable or distributed or
distributable pursuant to the terms of the this Agreement or otherwise in
connection with, or arising out of, its engagement by the Company or a change in
ownership or effective control of the Company or a substantial portion of its
assets (a “Payment” or “Payments”), would be subject to excise or additional tax
or interest imposed by Code section 4999 or required under Code section
409A(b)(1) and/or any interest, tax or penalties are incurred by the Consultant
with respect to such excise or additional tax (such excise or additional tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then either (i) the Consultant shall promptly
receive an additional payment (a “Gross-Up Payment”) in an amount such that
after payment by the Consultant of all taxes (including any interest or
penalties, other than interest and penalties imposed by reason of the
Consultant’s failure to file timely a tax return or pay taxes shown due on its
return, imposed with respect to such taxes and the Excise Tax), including any
Excise Tax imposed upon the Gross-Up Payment, the Consultant retains an amount
of the Gross-Up Payment equal to the Excise Tax imposes upon the Payments, or
(ii) solely at the Company’s election, any lump sum payment due to Consultant as
a result of the provisions of Section 6.1, 6.2.2 or 6.2.3, shall be paid to
Consultant 6 months after the date such payment is otherwise due, together with
interest at the rate of 8% per annum on such lump sum amount.

      
         

        
          
            	
                  	
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      ARTICLE
VII

       

      COVENANTS

       

      7.1           Confidentiality.  Consultant
shall (a) not disclose or reveal any confidential information (as herein
defined) to any person other than those who are actively and directly
participating in the services rendered by Consultant under this Agreement and
(b) not use any confidential information regarding the Company for any purposes
other than in connection with the services to be rendered by Consultant
hereunder, and (c) take all steps as are normally used by Consultant in
protecting confidential information to assure adherence to the terms of this
Agreement.  In the event that Consultant is requested pursuant to, or
required by, applicable law or regulation or by legal process to disclose any
confidential information regarding the Company, Consultant agrees that it will
provide the Company with prompt notice of such request(s) to enable the Company
to seek an appropriate protective order and/or waive compliance by Consultant
with the provisions of this Section.  “Confidential Information” means
all information about the Company, in any form, however and whenever acquired,
that is not generally known to business competitors or the general public, and
which is treated as confidential by the Company, including, without
limitation:  price lists, customer lists, vendor or supplier lists,
procedures, improvements, modifications, enhancements, concepts and ideas,
business plans and proposals, business methods,  technical plans and
proposals, research and development, know how, budgets and projections, sales
techniques, market studies, competitive analyses, accounts receivable or
payable, billing methods and other non-public financial information, information
regarding the skills and compensation of employees, technical memoranda,
reports, designs and specifications, product and user manuals, software (whether
or not reduced to writing and whether or not protectable by patent or copyright
registration), in both object code and source code, engineering, hardware
configuration information, new product and service developments, and other
information, data and documents now existing or later acquired, regardless of
whether any of such information, data or documents qualify as “trade secrets”
under applicable Federal or state law.  Notwithstanding the foregoing,
“confidential information” does not include information which is generally known
in the trade or industry, or which is not gained as a result of a breach of a
duty to maintain the secrecy of the Company’s confidential
information.  The phrase “generally known” shall mean readily
accessible to the public in a written publication.

       

      ARTICLE
VIII

       

      MISCELLANEOUS

       

      8.1           Indemnification.  To
the fullest extent permitted by law, the Company and Parent shall promptly
indemnify Consultant for all amounts (including, without limitation, judgments,
fines, settlement payments, losses, damages, costs and expenses (including
reasonable attorneys’ fees)) incurred or paid by Consultant in connection with
any action, proceeding, suit or investigation arising out of or relating to the
performance by Consultant of its services pursuant to this
Agreement.  This indemnification shall also apply to Consultant’s
prior activities as an officer and director of the Company.  The
Company and Parent shall use its best efforts to include Consultant as an
insured under any insurance policy covering its officers, directors and
employees.

      
         

        
          
            	
                  	
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      8.2           Notice.  Any
notice, request or demand given pursuant to this Agreement shall be in writing
and either hand delivered, or sent by certified or registered U.S. mail, return
receipt requested.  Notice shall be deemed given upon receipt and
delivered to the respective addresses set out below, or to such other address as
a Party shall specify in the manner required by this Section, as
follows:

       

      
        	
                 
      

              	
                If
      to COMPANY:

              

      

       

      
        	
                 
      

              	
                WQN,
      Inc.

              

      

       

      
        	
                 
      

              	
                14911
      Quorum Drive

              

      

       

      
        	
                 
      

              	
                Suite
      140

              

      

       

      
        	
                 
      

              	
                Dallas
      Texas

              

      

       

      
        	
                 
      

              	
                 

              	
                
                  Attn:
      Stuart Ehrlich, CEO

                

              

      

       

      
        	
                 
      

              	
                If
      to CONSULTANT:

              

      

       

      
        	
                 
      

              	
                iTella,
      Inc.

              

      

       

      
        	
                 
      

              	
                135
      Weston Road

              

      

       

      
        	
                 
      

              	
                Suite
      326

              

      

       

      
        	
                 
      

              	
                Weston,
      Florida 33326

              

      

       

      8.3           Assignment.  Consultant
may only assign any of its rights under this Agreement to an entity controlled
by Consultant.  The Agreement may not be assigned by the Company
without Consultant’s prior written consent.

       

      8.4           Observation
Rights.  In consideration of the execution by Consultant of
this Agreement, one representative of Consultant shall have the right to attend
all meetings of the Board of Directors.

       

      8.5           Governing Law/Prevailing
Party.  This Agreement shall be construed in accordance with
and governed for all purposes by the laws of the State of Florida applicable to
contracts executed and to be wholly performed within such state without giving
effect to any choice of law or conflict of law rules or provisions (whether of
the State of Florida or any other jurisdiction) that would cause the application
of the laws of any other jurisdiction other than the State of
Florida.  This Agreement shall be subject to the exclusive
jurisdiction of the courts of the State of Florida located in Broward County,
Florida or the United States District Court for the Southern District of
Florida.  The parties to this Agreement agree that any breach of any
term or condition of this Agreement shall be deemed to be a breach occurring in
the State of Florida by virtue of a failure to perform an act required to be
performed in the State of Florida and irrevocably and expressly agree to submit
to the jurisdiction of such courts in the State of Florida for the purpose of
resolving any disputes among the parties relating to this Agreement or the
transactions contemplated hereby.  The parties irrevocably waive, to
the fullest extent permitted by law, any objection which they may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement, or any judgment entered by any court in
respect hereof brought in Broward County, Florida, and further irrevocably waive
any claim that any suit, action or proceeding brought in Broward County,
Florida has been brought in an inconvenient forum.  The
prevailing party in any suit brought hereunder shall be entitled to
reimbursement for legal fees and costs incurred in connection with such suit
(and appeal).

      
        
           

          
            
              	
                    	
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      8.6           Entire
Agreement.  This Agreement contains the entire agreement of the
Parties and supersedes all prior agreements, contracts and understandings,
whether written or otherwise, between the Parties relating to the subject matter
hereof and may not be modified except by an amendment signed by the
Parties.

       

      8.7           Termination.  This
agreement is irrevocable and under no circumstance can be canceled by the
company for any reason what so ever.

       

      8.8           Severability.  If
any provision of this Agreement shall be determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or
invalidated.  If any provisions shall be determined by a court of
competent jurisdiction to be unenforceable because excessively broad or vague as
to duration, activity or subject, it shall be construed by limiting, reducing or
defining it, so as to be enforceable.

       

      8.9           Waiver.  Neither
the failure nor delay on the part of either Party to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver
hereof.  No waiver shall be effective unless it is in writing and is
signed by the Party asserted to have granted such waiver.

       

      [Signatures
Follow]

      
         

        
          
            	
                  	
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      IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date and
year set forth on the first page of this Agreement.

       

      
        	 
      	 WQN,
      INC.
	 	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Stuart
      Ehrlich , President

              
	 
      	 
      	 
      
	 
      	 QUAMTEL,
      INC.
	 	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Stuart
      Ehrlich , President

              
	 
      	 
      	 
      
	 
      	 ITELLA,
      INC / CONSULTANT
	 
      	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Salvatore
      Nasca, Jr. President-CEO

              

      

       

      
        
          
            	
                  	
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