<SUBMISSION>
<ACCESSION-NUMBER>0001376474-12-000211
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20120718
<ITEMS>1.01
<ITEMS>2.03
<ITEMS>3.02
<ITEMS>9.01
<FILING-DATE>20120724
<DATE-OF-FILING-DATE-CHANGE>20120724
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AccelPath, Inc.
<CIK>0001077800
<ASSIGNED-SIC>3829
<IRS-NUMBER>880357272
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27023
<FILM-NUMBER>12976859
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>352A CHRISTOPHER AVENUE
<CITY>GAITHERSBURG
<STATE>MD
<ZIP>20879
<PHONE>301-767-2810
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>352A CHRISTOPHER AVENUE
<CITY>GAITHERSBURG
<STATE>MD
<ZIP>20879
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>TECHNEST HOLDINGS INC
<DATE-CHANGED>20010808
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>FINANCIAL INTRANET INC/NY
<DATE-CHANGED>19990128
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>acc_8k.htm
<DESCRIPTION>ACCELPATH, INC. - 8-K
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE></TITLE>
<META NAME="author" CONTENT="Suzette O'Connor">
<META NAME="date" CONTENT="05/28/2012">
</HEAD>
<BODY
style="MARGIN-TOP: 0px; FONT-FAMILY: Times New Roman; COLOR: #000000; FONT-SIZE: 10pt">
<DIV style="WIDTH: 697px">
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-SIZE: 12pt" align=center><B>UNITED STATES</B></P>
<P style="MARGIN: 0px; FONT-SIZE: 12pt" align=center><B>SECURITIES AND EXCHANGE
COMMISSION</B></P>
<P style="MARGIN: 0px; FONT-SIZE: 12pt" align=center>Washington, D.C. 20549</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-SIZE: 14pt" align=center><B>FORM 8-K</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><B>CURRENT REPORT</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><B>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center>Date of Report (Date of earliest event
reported): <B>July 18, 2012</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px; FONT-SIZE: 16pt" align=center><B>ACCELPATH, INC</B></P>
<P style="MARGIN: 0px" align=center>(Exact name of registrant as specified in
its charter)</P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0
width="100%">

  <TR style="FONT-SIZE: 0px">
    <TD>
    <TD width=13>
    <TD width=223>
    <TD width=13>
    <TD width=223></TD>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 2px solid; MARGIN-TOP: 0px"
      vAlign=bottom><P style="MARGIN: 0px" align=center><B>Delaware</B></P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px"><B></B>&nbsp;</P></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid; MARGIN-TOP: 0px" vAlign=bottom
    width=223>
      <P style="MARGIN: 0px" align=center><B>000-27023</B></P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px"><B></B>&nbsp;</P></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid; MARGIN-TOP: 0px" vAlign=bottom
    width=223>
      <P style="MARGIN: 0px" align=center><B>45-5151193</B></P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom>
      <P style="MARGIN: 0px"
      align=center>(State&nbsp;or&nbsp;other&nbsp;jurisdiction</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=223>
      <P style="MARGIN: 0px"
    align=center>(Commission&nbsp;File&nbsp;Number)</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=223>
      <P style="MARGIN: 0px" align=center>(IRS&nbsp;Employer</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom>
      <P style="MARGIN: 0px" align=center>of&nbsp;incorporation)</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=223>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=223>
      <P style="MARGIN: 0px"
  align=center>Identification&nbsp;No.)</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><B>352A Christopher Avenue,</B></P>
<P style="MARGIN: 0px" align=center><B>Gaithersburg, Maryland 20879</B></P>
<P style="MARGIN: 0px" align=center>(Address of Principal Executive Offices)</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><B>(301) 767-2810</B></P>
<P style="MARGIN: 0px" align=center>Registrant's telephone number, including
area code</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify>Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-FAMILY: Wingdings" align=justify>"<FONT
style="FONT-FAMILY: Times New Roman">&nbsp;Written communications pursuant to
Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-FAMILY: Wingdings" align=justify>"<FONT
style="FONT-FAMILY: Times New Roman">&nbsp;Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-FAMILY: Wingdings" align=justify>"<FONT
style="FONT-FAMILY: Times New Roman">&nbsp;Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; FONT-FAMILY: Wingdings" align=justify>"<FONT
style="FONT-FAMILY: Times New Roman">&nbsp;Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</FONT></P><A name=pgbrk></A><A name=ftr></A><A name=glftr></A>
<P style="MARGIN: 0px"><BR></P><A name=pn></A><A name=hdr></A><A name=glhdr></A>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><B>Item&nbsp;1.01 Entry into Material Definitive
Agreement.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>On July 18, 2012, AccelPath, Inc. (the
"<U>Company</U>") entered into a subscription agreement (the "<U>Subscription
Agreement</U>") with Southridge Partners II, LP ("<U>Southridge</U>") for the
purchase of a convertible promissory note in the aggregate principal amount of
$100,000 (the "<U>Convertible Note</U>"). The Convertible Note accrues interest
at a rate of 5% per annum and is due on January 31, 2013. &nbsp;Southridge has
the option to convert all or a portion of the principal amount of the
Convertible Note plus accrued interest into shares of the Company's common
stock, par value $0.0001 per share (the "<U>Common Stock</U>") at a per share
conversion price of $0.0075. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>On July 18, 2012, the Company entered into
an exchange agreement (the "<U>Exchange Agreement</U>") with Southridge whereby
Southridge, exchanged 100 shares of the Company's Series E Preferred Stock (the
"<U>Series E Preferred Stock</U>") to the Company in exchange for a newly issued
convertible promissory note in the principal amount of $105,834 (the
"<U>Exchange Note</U>"). &nbsp;The Note accrues interest at a rate of 5% per
annum and is due on September 1, 2013. &nbsp;Southridge has the option to
convert all or a portion of the principal amount of the Exchange Note plus
accrued interest into shares of the Company's Common Stock at a per share
conversion price equal to the then current market price multiplied by 60%.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>The above description of the Subscription
Agreement, Exchange Agreement, Convertible Note and Exchange Note does not
purport to be complete and is qualified in its entirety by the full text of such
documents, which are attached as Exhibits 10.1, 10.2 10.3 and 10.4,
respectively, to this Current Report on Form 8-K and incorporated herein by
reference.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px"><B>Item 2.03 Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>The information set forth in Item 1.01 of
this Current Report on Form 8-K is incorporated by reference in to this Item
2.03. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><B>Item 3.02 Unregistered Sales of Equity
Securities.</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify>The information set forth in Item 1.01 of
this Current Report on Form 8-K is incorporated by reference in to this Item
3.02. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify>These securities were not registered under
the Securities Act of 1933, as amended (the "<U>Securities Act</U>"), and
qualified for exemption under Section 4(2) of the Securities Act because the
issuance of the securities did not involve a public offering. The offering was
not a "public offering" as defined in Section 4(2) due to the insubstantial
number of persons involved in the transaction, size of the offering, manner of
the offering and number of securities offered.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><B>Item&nbsp;9.01 Financial Statements and
Exhibits</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">(d)&nbsp;Exhibits</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0
width="100%">

  <TR style="FONT-SIZE: 0px">
    <TD width=83>
    <TD width=13>
    <TD></TD>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" vAlign=bottom
    width=83>
      <P
      style="TEXT-INDENT: -17px; MARGIN: 0px; PADDING-LEFT: 17px; FONT-SIZE: 8pt"><B>Exhibit
      No.</B></P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px; FONT-SIZE: 8pt">&nbsp;</P></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px"
      vAlign=bottom><P
    style="MARGIN: 0px; FONT-SIZE: 8pt"><B>Description</B></P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=83>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">10.1</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">Subscription Agreement by and among the Company and
      Southridge, dated July 18, 2012</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">10.2</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">Exchange Agreement, by and among the Company and
      Southridge, dated July 18, 2012</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">10.3</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">Convertible Note issued in favor of Southridge,
      dated July 18, 2012</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=83>
      <P style="MARGIN: 0px">10.4</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=bottom width=13>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">Exchange Note issued in favor of Southridge, dated
      July 18, 2012</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><B>SIGNATURES</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="MARGIN-TOP: 0px; FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0
width="100%">

  <TR style="FONT-SIZE: 0px">
    <TD>
    <TD width=29>
    <TD width=47>
    <TD width=222>
    <TD width=92></TD>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=299 colSpan=3>
      <P style="MARGIN: 0px">ACCELPATH, INC.</P></TD>
    <TD style="MARGIN-TOP: 0px" width=92>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px" vAlign=top>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=299 colSpan=3>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=92>
      <P
      style="PADDING-BOTTOM: 0px; MARGIN: 0px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; PADDING-TOP: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px">
      <P style="MARGIN: 0px">Date: July&nbsp;24, 2012</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=29>
      <P style="MARGIN: 0px">By:&nbsp;&nbsp;</P></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" width=270
    colSpan=2>
      <P style="MARGIN: 0px">/s/ Shekhar Wadekar</P></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" width=92>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px">
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=29>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=47>
      <P style="MARGIN: 0px">Name:&nbsp;&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=222>
      <P style="MARGIN: 0px">Shekhar Wadekar&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=92>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR>
  <TR>
    <TD style="MARGIN-TOP: 0px">
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=29>
      <P style="MARGIN: 0px">&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" vAlign=top width=47>
      <P style="MARGIN: 0px">Title:&nbsp;&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=222>
      <P style="MARGIN: 0px">Chief Executive Officer&nbsp;</P></TD>
    <TD style="MARGIN-TOP: 0px" width=92>
      <P style="MARGIN: 0px">&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P></DIV><!-- EDGAR Validation Code: 0F603257 --></BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>acc_ex10z1.htm
<DESCRIPTION>SECURITIES PURCHASE AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE></TITLE>
<META NAME="author" CONTENT="Suzette O'Connor">
<META NAME="date" CONTENT="07/23/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>SECURITIES PURCHASE AGREEMENT</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify><B>SECURITIES PURCHASE AGREEMENT</B> (the &#147;<B>Agreement</B>&#148;), dated as of July 18, 2012, between<B> ACCELPATH, INC.</B>, a Delaware corporation (&#147;<B>ACLP</B>&#148;), and<B> Southridge Partners II LP</B>, a &nbsp;Delaware limited partnership (&#147;<B>Purchaser</B>&#148;).</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify><B>WHEREAS</B>, Purchaser and ACLP are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the &#147;<B>1933 Act</B>&#148;);</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify><B>WHEREAS</B>, Purchaser desires to purchase and ACLP desires to issue, upon the terms and conditions set forth in this Agreement, a convertible promissory note of ACLP in consideration for the payment of $100,000.00 in cash; and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify><B>NOW THEREFORE</B>, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>1.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>PURCHASE AND SALE OF CONVERTIBLE PROMISSORY NOTE</U>.</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Purchase of Convertible Promissory Note(s)</U>. &nbsp;On the Closing Date (as defined below) ACLP shall issue and deliver to Purchaser, and Purchaser shall purchase from ACLP a duly executed 5% convertible promissory note in the principal amount of $100,000.00 (the &#147;<B>Note</B>&#148;) in consideration of $100,000.00 in cash (the &#147;<B>Purchase Price</B>&#148;). &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Closing Date</U>. &nbsp;Subject to the satisfaction (or waiver) of the conditions thereto set forth in Section 5 and Section 6 below, the date and time of the sale of a Note pursuant to this Agreement (the &#147;<B>Closing Date</B>&#148;) shall be 12:00 noon New York City Time on the date agreed to by the Parties. &nbsp;The Closing Date shall be July 18, 2012 or such other mutually agreed upon time (the &#147;<B>Closing</B>&#148;). </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Form of Payment</U>. &nbsp;On the Closing Date, (i) Purchaser shall pay the Purchase Price in United States dollars by wire transfer of immediately available funds to an account designated in writing by ACLP for such purpose, against delivery of the Note, and (ii) ACLP shall deliver to Purchaser the Note duly executed on behalf of ACLP, against delivery of the Purchase Price.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>2.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>PURCHASER&#146;S REPRESENTATIONS AND WARRANTIES</U>.</B> &nbsp;Purchaser represents and warrants to ACLP that:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Accredited Purchaser; Investment Purpose</U>. &nbsp;Purchaser represents that it is an &#147;Accredited Investor&#148; as defined in Regulation D under the Securities Act of 1933. &nbsp;Purchaser is purchasing the Note for its own account for investment purposes only and not with a view toward, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1993 Act and applicable state securities laws; <U>provided</U>, <U>however</U>, that by making the representations herein, Purchaser does not agree to hold the Note for any minimum or other specific term and reserves the right to dispose of the Note at any time</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>1</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>in accordance with or pursuant to a registration statement or an exemption under the 1933 Act and applicable state securities laws.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Reliance on Exemptions</U>. &nbsp;Purchaser understands that the Note is being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that ACLP is relying upon the truth and accuracy of, and Purchaser&#146;s compliance with, the representations, warranties, agreements, acknowledgments and understandings of Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Note.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Information</U>. &nbsp;&nbsp;Purchaser and its advisors, if any, have been furnished with materials relating to the business, finances and operations of ACLP and materials relating to the offer and sale of the Note which have been requested by Purchaser or its advisors. &nbsp;Neither such inquiries nor any other due diligence investigation conducted by Purchaser or any of its advisors or representatives shall modify, amend or affect Purchaser&#146;s right to rely on ACLP&#146;s representations and warranties contained in Section 3 below. &nbsp;Purchaser understands that its investment in the Note involves a significant degree of risk.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d. </P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>&nbsp;<U>Governmental Review</U>. &nbsp;Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Note.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">e.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Transfer or Resale</U>. &nbsp;Purchaser understands that (i) the sale or resale of the Note and any underlying conversion shares of common stock has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Note may not be transferred unless (a) the Note and Common Stock issuable upon conversion of the Note (&#147;Conversion Shares&#148;) are sold pursuant to an effective registration statement under the 1933 Act, (b) the Note and the Conversion Shares are sold or transferred pursuant to an exemption from such registration, (c) the Note and the Conversion Shares are sold or transferred to an &#147;affiliate&#148; (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (&#147;<B>Rule 144</B>&#148;)) of Purchaser who agrees to sell or otherwise transfer the Note only in accordance with this Section 2(e) and who is an Accredited Investor, or (d) (i) the Note and the Conversion Shares are sold pursuant to Rule 144, if such Rule is available; &nbsp;and (ii) any sale of such Note and the Conversion Shares made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such Note and the Conversion Shares under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">f.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Legends</U>. &nbsp;Purchaser understands that the Note and the Conversion shares shall bear a restrictive legend in the following form:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; padding-left:144px; font-size:12pt" align=justify>&#147;NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. &nbsp;THE SECURITIES ARE RESTRICTED</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>2</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; padding-left:144px; font-size:12pt" align=justify>AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM.&#148;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">g.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Authorization; Enforcement</U>. &nbsp;This Agreement has been duly and validly authorized by Purchaser. &nbsp;This Agreement has been duly executed and delivered on behalf of Purchaser, and this Agreement constitutes a valid and binding agreement of Purchaser enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors&#146; rights and remedies or by other equitable principles of general application. &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">i.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>No Brokers</U>. Purchaser has taken no action which would give rise to any claim by any person for brokerage commissions, finder&#146;s fees or similar payments relating to this Agreement or the transactions contemplated hereby.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>3.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>REPRESENTATIONS AND WARRANTIES OF ACLP</U></B>. &nbsp;ACLP represents and warrants to Purchaser that:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Authorization; Enforcement</U>. &nbsp;(i) ACLP has all requisite corporate power and authority to enter into and perform this Agreement and to consummate the transactions contemplated hereby and to sell the Note, in accordance with the terms hereof, (ii) the execution and delivery of this Agreement by ACLP and the consummation by it of the transactions contemplated hereby (including without limitation, the sale of the Note to Purchaser) have been duly authorized by ACLP and no further consent or authorization of ACLP or its shareholders is required, (iii) this Agreement has been duly executed and delivered by ACLP, and (iv) this Agreement constitutes a legal, valid and binding obligation of ACLP enforceable against ACLP in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors&#146; rights and remedies or by other equitable principles of general application.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>[RESERVED] </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>No Conflicts</U>. &nbsp;The execution, delivery and performance of this Agreement by ACLP and the consummation by ACLP of the transactions contemplated hereby (including, without limitation, the sale of the Note to Purchaser) will not (i) conflict with or result in a violation of any provision of its certificate of formation or other organizational documents, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, note, bond, indenture or other instrument to which ACLP is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which ACLP is subject) applicable to ACLP or by which any property of ACLP are bound or affected. &nbsp;Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable federal and state securities laws, ACLP is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>3</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>agency, regulatory agency, self regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement in accordance with the terms hereof. &nbsp;Except for filings that may be required under applicable federal and state securities laws in connection with the issuance and sale of the Note, all consents, authorizations, orders, filings and registrations which ACLP is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>No Brokers</U>. ACLP has taken no action which would give rise to any claim by any person for brokerage commissions, finder&#146;s fees or similar payments relating to this Agreement or the transactions contemplated hereby.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">e.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>No Other Representations.</U> Except as specifically set forth herein, ACLP makes no representations or warranties with respect its financial status, earnings, assets, liabilities, corporate status or any other matter.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>4.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>COVENANTS</U>.</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Best Efforts</U>. &nbsp;The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions described in Section 5 and Section 6 of this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style=margin-top:16px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin-top:0px; margin-bottom:-2px; width:144px; font-size:12pt; float:left"><U>Financial Reporting</U>.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>Subsequent to Closing Date, ACLP will take no action which would adversely affect the tacking for the benefit of the Purchaser holding period under Rule 144. &nbsp;ACLP shall make all commercially reasonable best efforts to keep public information available, as those terms are understood and defined in Rule 144 and file with the SEC in a timely manner all quarterly and annual reports required of ACLP under the Exchange Act.</P>
<P style=margin-top:16px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; clear:left; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Reservation of Shares</U>. &nbsp;The Company shall instruct its transfer agent to reserve at least 14,000,000 shares of its Common Stock for issuance to Purchaser upon conversion of the Note and shall provide Purchaser with copy of such letter (&#147;Transfer Agent Instruction Letter&#148;).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style=margin-top:16px;margin-bottom:-1pt;font-size:1pt /><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>5.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>CONDITIONS TO COMPANY&#146;S OBLIGATION TO SELL</U>.</B> &nbsp;The obligation of ACLP hereunder to sell and deliver the Note to Purchaser at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these conditions are for ACLP&#146;s sole benefit and may be waived by ACLP at any time in its sole discretion:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>Purchaser shall have executed this Agreement and delivered the same to ACLP.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>Purchaser shall have delivered the Purchase Price in accordance with Section 1(b) above.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The representations and warranties of Purchaser shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>4</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>that time (except for representations and warranties that speak as of a specific date), and Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by Purchaser at or prior to the Closing Date.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>6.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>CONDITIONS TO PURCHASER&#146;S OBLIGATION TO PURCHASE</U>.</B> &nbsp;The obligation of Purchaser hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions are for Purchaser&#146;s sole benefit and may be waived by Purchaser at any time in its sole discretion.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>ACLP shall have executed this Agreement and delivered the same to Purchaser.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>ACLP shall have delivered to Purchaser duly executed Note (in such denominations as Purchaser shall reasonably request) in accordance with Section 1(b) above.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The representations and warranties of ACLP shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and ACLP shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by ACLP at or prior to the Closing Date.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left"><B>7.</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B><U>GOVERNING LAW; MISCELLANEOUS</U>.</B> &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Governing Law; Jurisdiction</U>. &nbsp;THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITH SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. &nbsp;THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN THE CITY OF NEW YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. &nbsp;BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING. </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>5</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. &nbsp;NOTHING HEREIN SHALL AFFECT ANY PARTY&#146;S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. &nbsp;THE PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. &nbsp;THE PARTIES HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Counterparts; Signatures by Facsimile</U>. &nbsp;This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. &nbsp;This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement. </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Headings</U>. &nbsp;The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Severability</U>. &nbsp;In the event that any provision of this Agreement is invalid or enforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. &nbsp;Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">e.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Entire Agreement; Amendments</U>. &nbsp;This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither ACLP nor Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. &nbsp;No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged with enforcement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">f.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Notices</U>. &nbsp;Any notices required or permitted to be given under the terms of this Agreement shall be sent by certified or registered mail (return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party. &nbsp;The addresses for such communications shall be:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>If to ACLP:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:192px; font-size:12pt">352A Christopher Avenue</P>
<P style="margin:0px; text-indent:192px; font-size:12pt">Gaithersburg, MD 20879</P>
<P style="margin:0px; text-indent:192px; font-size:12pt">Attention: President</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>6</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Phone:</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Facsimile:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>If to Purchaser:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Southridge Partners II LP</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>90 Grove Street, Ste 206</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Ridgefield CT 06877</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Tel: 203-431-8300</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Fax: 203-431-8301</P>
<P style="margin:0px; text-indent:192px; font-size:12pt" align=justify>Email:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>Each party shall provide notice to the other party of any change in address.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">g.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Successors and Assigns</U>. &nbsp;This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. &nbsp;Neither ACLP nor Purchaser shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. &nbsp;Notwithstanding the foregoing, subject to Section 2(e), Purchaser may assign its rights hereunder to any person that purchases the Note or any Conversion Shares in a private transaction from Purchaser or to any of its &#147;affiliates,&#148; as that term is defined under the 1934 Act, without the consent of ACLP.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">h.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Third Party Beneficiaries</U>. &nbsp;This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">i.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>Further Assurances</U>. &nbsp;Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">j.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><U>No Strict Construction</U>. &nbsp;The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>7</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; text-indent:96px; font-size:12pt" align=justify><B>IN WITNESS WHEREOF</B>, Purchaser and ACLP have caused this Securities Purchase Agreement to be duly executed as of the date first above written.</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=94.8 /><TD width=57 /><TD width=269.4 /><TD /></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=326.4 colspan=2><P style="margin:0px; font-size:12pt"><B>ACCELPATH, INC.</B></P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=269.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; font-size:12pt">Name:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=269.4><P style="margin:0px; font-size:12pt" align=center>/s/Shekhar Wadekar</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; font-size:12pt">Title:</P>
</TD><TD style="margin-top:0px" valign=top width=269.4><P style="margin:0px; font-size:12pt">Chief Executive Officer</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=269.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=326.4 colspan=2><P style="margin:0px; font-size:12pt"><B>SOUTHRIDGE PARTNERS II LP</B></P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=269.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; font-size:12pt">Name:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=269.4><P style="margin:0px; font-size:12pt">/s/ Henry Sargent</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=94.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=57><P style="margin:0px; font-size:12pt">Title:</P>
</TD><TD style="margin-top:0px" valign=top width=269.4><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>8</P>
<P style="margin:0px" align=center><BR>
<BR></P>
</DIV></BODY>
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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>acc_ex10z2.htm
<DESCRIPTION>EXCHANGE AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE></TITLE>
<META NAME="author" CONTENT="Suzette O'Connor">
<META NAME="date" CONTENT="07/23/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>EXCHANGE AGREEMENT</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>Southridge Partners II LP (the &#147;Southridge&#148;) is the current holder of 200 shares of Series E Preferred Stock issued by AccelPath, Inc. (the &#147;Company&#148;). </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>Southridge and the Company now agree to exchange 100 shares of the outstanding Series E Preferred Stock for a newly issued convertible promissory note in the principal amount of $105,834.00, attached hereto as Exhibit A. &nbsp;Upon completion of the exchange, the Series E Preferred Stock shall be retired to Company treasury stock. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px; font-size:12pt" align=justify>This Agreement shall be construed as to both validity and performance and enforced in accordance with and governed by the laws of the State of New York, without giving effect to the conflicts of the law principles thereof.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>This Agreement may not be modified or changed except by an instrument or instruments in writing executed by the parties hereto.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Dated: July 18, 2012</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=36 /><TD /><TD width=28.8 /><TD width=36 /><TD width=309.6 /></TR>
<TR><TD style="margin-top:0px" valign=top width=345.6 colspan=2><P style="margin:0px; font-size:12pt">AccelPath, Inc.</P>
</TD><TD style="margin-top:0px" valign=top width=28.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=345.6 colspan=2><P style="margin:0px; font-size:12pt">Southridge Partners II LP</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=28.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=309.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top><P style="margin:0px; padding-left:12px; font-size:12pt">/s/Shekhar Wadekar</P>
</TD><TD style="margin-top:0px" valign=top width=28.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=309.6><P style="margin:0px; padding-left:12px; font-size:12pt">/s/Henry Sargent</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">Title:</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding-left:60px; font-size:12pt">Chief Executive Officer</P>
</TD><TD style="margin-top:0px" valign=top width=28.8><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">Title:</P>
</TD><TD style="margin-top:0px" valign=top width=309.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>EXHIBIT A</P>
<P style="margin:0px" align=center><BR>
<BR></P>
</DIV></BODY>
<!-- EDGAR Validation Code: D3408591 -->
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>acc_ex10z3.htm
<DESCRIPTION>CONVERTIBLE PROMISSORY NOTE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE></TITLE>
<META NAME="author" CONTENT="hsargent">
<META NAME="date" CONTENT="07/23/2012">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px; padding-left:48px; font-size:12pt" align=justify>NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. &nbsp;THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM. </P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=49.8 /><TD /><TD width=268.867 /></TR>
<TR><TD style="margin-top:0px" valign=top width=49.8><P style="margin:0px; font-size:12pt">No. </P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; font-size:12pt"><U>_____________</U></P>
</TD><TD style="margin-top:0px" valign=top width=268.867><P style="margin:0px; padding-left:48px; font-size:12pt" align=center>US $100,000.00</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>ACCELPATH, INC.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>CONVERTIBLE PROMISSORY NOTE DUE JANUARY 31, 2013</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">THIS Note is a duly authorized issuance of up to $500,000.00 of<FONT style="font-size:10pt"><B> </FONT>ACCELPATH, INC.,</B> a Delaware corporation and located at &nbsp;352A Christopher Avenue, Gaithersburg, MD 20879 (the &quot;Company&quot;) designated as its July 2012 Convertible Note, pursuant to that certain Securities Purchase Agreement between the Company and Holder of even date. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>FOR VALUE RECEIVED, the Company promises to pay to <B>SOUTHRIDGE PARTNERS II, LP</B>, the registered holder hereof (the &quot;Holder&quot;), the principal sum of One Hundred Thousand and 00/100 Dollars (US $100,000.00), plus accrued interest in the amount of five percent (5%) per annum on all outstanding principal on January 31, 2013 (the &#147;Maturity Date&#148;). The Company will pay the outstanding principal amount of this Note, plus accrued interest, in cash on the Maturity Date to the registered holder of this Note. &nbsp;The wire transfer of such amount shall constitute a payment hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by wire transfer plus any amounts so deducted.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px; font-size:12pt" align=justify>This Note is subject to the following additional provisions:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">1.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Note is issuable in denominations of Ten Thousand Dollars (US$10,000) and integral multiples thereof, provided that the number of shares to be issued upon conversion is a minimum of 3,000 (unless if at the time of election to convert the number of shares of Common Stock issuable upon conversion is less than 3,000). &nbsp;The Note is exchangeable for an equal aggregate principal amount of Note of different authorized denominations, as requested by the Holder surrendering the same. &nbsp;No service charge will be made for such registration or transfer or exchange.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">2.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Holder of this Note is entitled at any time at its option to convert all or a portion of the principal amount of this Note plus accrued interest into shares of Common Stock at a conversion price for each share of Common Stock equal to $0.0075 (the &#147;Conversion Price&#148;). The amount of shares issuable pursuant to a conversion shall equal the principal amount (or portion thereof) of the Note to be converted, plus accrued interest, divided by the Conversion Price.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>1</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>Conversion shall be effectuated by surrendering the Note to the Company, accompanied by or preceded by facsimile or other delivery to the Company of the form of conversion notice attached hereto as Exhibit A, executed by the Holder evidencing such Holder's intention to convert a specified portion hereof. &nbsp;No fractional shares of Common Stock or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. &nbsp;The date on which notice of conversion is given (the &quot;Conversion Date&quot;) shall be deemed to be the date on which the Holder faxes or otherwise delivers the conversion notice (&quot;Notice of Conversion&quot;), substantially in the form annexed hereto as Exhibit A, duly executed, to the Company. &nbsp;Facsimile delivery of the Notice of Conversion shall be accepted by the Company at facsimile number ( &nbsp;&nbsp;) <FONT style="font-size:11pt">__________________ </FONT><U>ATTN: President.</U> &nbsp;Certificates representing Common Stock upon conversion will be delivered within five (5) business days from the Conversion Date. (&#147;Delivery Date&#148;)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>The Company understands that a delay in the issuance of the Shares of Common Stock beyond the Delivery Date (as defined in this Section) could result in economic loss to the Holder. &nbsp;As compensation to the Holder for such loss, the Company agrees to pay late payments to the Holder for late issuance of Shares upon Conversion, unless the delay is due to causes beyond the reasonable control of the Company or the Transfer Agent, in accordance with the following schedule (where &#147;No. Business Days Late&#148; refers to the number of business days which is beyond three (3)) business days after the Delivery Date):</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=46.867 /><TD width=147.733 /><TD width=58.6 /><TD /><TD width=65.933 /><TD width=150.333 /><TD width=72.867 /></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=206.333 colspan=2><P style="margin:0px; font-size:12pt">No. Business Days Late</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=216.267 colspan=2><P style="margin:0px; font-size:12pt">Late Payment For Each $10,000</P>
<P style="margin:0px; font-size:12pt">of Note Principal or Interest</P>
<P style="margin:0px; font-size:12pt">Amount Being Converted</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">1</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$100</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">2</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$200</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">3</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$300</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">4</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$400</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">5</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$500</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">6</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$600</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">7</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$700</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">8</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$800</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">9</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$900</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">10</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$1,000</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">&gt;10</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=223.2 colspan=2><P style="margin:0px; font-size:12pt">$1,000 +$200 for each Business</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=223.2 colspan=2><P style="margin:0px; font-size:12pt">Day Late beyond 10 days</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The Company shall pay any payments incurred under this Section in immediately available funds upon demand as the Holder&#146;s remedy for such delay. &nbsp;Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>2</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>delivery of such shares of Common Stock by close of business on the Delivery Date, unless such failure is due to causes beyond the Company&#146;s reasonable control or that of its Transfer Agent, &nbsp;the Holder will be entitled to revoke the relevant Notice of Conversion by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to delivery of such Notice of Conversion; provided, however, that an amount equal to any payments contemplated by this Section which have accrued through the date of such revocation notice shall remain due and owing to the Converting Holder notwithstanding such revocation. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Company&#146;s Transfer Agent is participating in the Depository Trust Company (&#147;DTC&#148;) Fast Automated Securities Transfer program, upon request of the Holder and its compliance with the provisions contained in this paragraph, so long as the certificates therefore do not bear a legend and the Holder thereof is not obligated to return such certificate for the placement of a legend thereon, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder&#146;s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>The Holder of the Note shall be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement of any case under 11 U.S.C. &#167;101 <U>et</U> <U>seq.</U> (the &#147;Bankruptcy Code&#148;). &nbsp;In the event the Company is a debtor under the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. &#167;362 in respect of such holder&#146;s conversion privilege. &nbsp;The Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. &#167;362 in respect of the conversion of the Note. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">3.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Company shall be entitled to withhold from all payments of principal of this Note any amounts required to be withheld under the applicable provisions of the United States income tax laws or other applicable laws at the time of such payments, and Holder shall execute and deliver all required documentation in connection therewith.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">4.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (the &quot;Act&quot;), and other applicable state and foreign securities laws. &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">5.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Note at the time, place, and rate, and in the coin or currency, herein prescribed. &nbsp;This Note is a direct obligation of the Company.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">6.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt">Presentment. &nbsp;Except as set forth herein, the Company waives presentment, demand and presentation for payment, notice of nonpayment and dishonor, protest and notice of protest and expressly agrees that this Note or any payment hereunder may be extended from time to time by the Holder without in any way affecting the liability of the Company.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>3</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">7.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt">Maximum Rate. &nbsp;All provisions herein made are expressly limited so that in no event whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to Holder for the use of the money advanced or to be advanced hereunder exceed the maximum rate of interest allowed to be charged under applicable law (the &#147;Maximum Rate&#148;), regardless of whether or not there has been an acceleration of the payment of principal as set forth herein. If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby shall involve the payment of interest in excess of the Maximum Rate, then, <U>ipso facto</U>, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder shall ever receive interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the payment of interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between the Maker and Holder with respect to the indebtedness evidenced hereby. </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">8.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>This Note shall be governed by and construed in accordance with the laws of the State of New York. &nbsp;Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the City of New York or the state courts of the State of New York sitting in the City of New York in connection with any dispute arising under this Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on <I>forum non coveniens</I>, to the bringing of any such proceeding in such jurisdictions. Each of the parties hereby waives the right to a trial by jury in connection with any dispute arising under this Note.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">9.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The following shall constitute an &quot;Event of Default&quot;:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall default in the payment of principal and interest on this Note and same shall continue for a period of five (5) days; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any of the representations or warranties made by the Company herein, in any certificate or financial or other written statements heretofore or hereafter furnished by the Company in connection with the execution and delivery of this Note shall be false or misleading in any material respect at the time made; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall fail to perform or observe, in any material respect, any other covenant, term, provision, condition, agreement or obligation of any Note and such failure shall continue uncured for a period of thirty (30) days after written notice from the Holder of such failure; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company fails to authorize or to cause its Transfer Agent to issue shares</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>4</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; padding-left:144px; font-size:12pt" align=justify>of Common Stock upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or to cause its Transfer Agent to transfer any certificate for shares of Common Stock issued to the Holder upon conversion of this Note and when required by this Note, and such transfer is otherwise lawful, or fails to remove any restrictive legend on any certificate or fails to cause its Transfer Agent to remove such restricted legend, in each case where such removal is lawful, as and when required by this Note, the Agreement, and any such failure shall continue uncured for ten (10) business days; or</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">e.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall (1) admit in writing its inability to pay its debts generally as they mature; (2) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (3) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">f.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">g.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company and shall not be dismissed within sixty (60) days thereafter; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">h.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any money judgment, writ or warrant of attachment, or similar process in excess of One Hundred Fifty Thousand ($150,000) Dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of sixty (60) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">i.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company and, if instituted against the Company, shall not be dismissed within sixty (60) days after such institution or the Company shall by any action or answer approve of, consent to, or acquiesce in any such proceedings or admit the material allegations of, or default in answering a petition filed in any such proceeding; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">j.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall have its Common Stock suspended or delisted from an exchange or over-the-counter market from trading for in excess of five trading days.</P>
<P style="margin:0px; clear:left" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>5</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Then, or at any time thereafter, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment, demand, protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt"><U>Collection</U>. &nbsp;In the event this Note is placed by Holder in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby, the Company agrees to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys' fees and all court costs. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">10.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt">The Holder may not convert this Note to the extent such conversion would result in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.999% of the then issued and outstanding shares of Common Stock held by such Holder after application of this Section. &nbsp;Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock &nbsp;in excess of 9.999% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal amount of Note are convertible shall be the responsibility and obligation of the Holder. &nbsp;If the Holder has delivered a Conversion Notice for a principal amount of Note that would result in the issuance of in excess of the permitted amount hereunder, without regard to any other shares that the Holder or its affiliates may beneficially own, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date and, at the option of the Holder, either retain any principal amount tendered for conversion in excess of the permitted amount hereunder for future conversions or return such excess principal amount to the Holder. &nbsp;The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">11.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent or receive notice as a shareholder in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the Company, unless and to the extent converted in accordance with the terms hereof.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>6</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Dated: July 18, 2012</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD /><TD width=36 /><TD width=324 /></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt"><B>ACCELPATH, INC. </B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=324><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=324><P style="margin:0px; font-size:12pt" align=center>/s/Shekhar Wadekar</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=324><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt">Shekhar Wadekar</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt">Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=36 /><TD width=288 /><TD /></TR>
<TR><TD style="margin-top:0px" valign=top width=324 colspan=2><P style="margin:0px; font-size:12pt">ATTESTOR</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=288><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
</DIV></BODY>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>acc_ex10z4.htm
<DESCRIPTION>CONVERTIBLE PROMISSORY NOTE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<TITLE></TITLE>
<META NAME="author" CONTENT="hsargent">
<META NAME="date" CONTENT="07/24/2012">
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<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px; padding-left:48px; font-size:12pt" align=justify>NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. &nbsp;THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM. </P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=49.267 /><TD width=333.933 /><TD /></TR>
<TR><TD style="margin-top:0px" valign=top width=49.267><P style="margin:0px; font-size:12pt">No.</P>
</TD><TD style="margin-top:0px" valign=top width=333.933><P style="margin:0px; font-size:12pt"><U>___________</U></P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; font-size:12pt" align=center>US $105,834.00</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>ACCELPATH, INC.</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>CONVERTIBLE PROMISSORY NOTE DUE SEPTEMBER 1, 2013</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt">THIS Note is a duly authorized issuance of up to $500,000.00 of<FONT style="font-size:10pt"><B> </FONT>ACCELPATH, INC.,</B> a Delaware corporation and located at 352A Christopher Avenue, Gaithersburg, MD 20879 (the &quot;Company&quot;) designated as its July 2012 Convertible Note, pursuant to that certain Exchange Agreement between the Company and Holder of even date. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>FOR VALUE RECEIVED, the Company promises to pay to <B>SOUTHRIDGE PARTNERS II, LP</B>, the registered holder hereof (the &quot;Holder&quot;), the principal sum of One Hundred Five Thousand Eight Hundred Thirty Four and 00/100 Dollars (US $105,834.00), plus accrued interest in the amount of five percent (5%) per annum on all outstanding principal on September 1, 2013 (the &#147;Maturity Date&#148;). The Company will pay the outstanding principal amount of this Note, plus accrued interest, in cash on the Maturity Date to the registered holder of this Note. &nbsp;The wire transfer of such amount shall constitute a payment hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by wire transfer plus any amounts so deducted.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:48px; font-size:12pt" align=justify>This Note is subject to the following additional provisions:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">1.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Note is issuable in denominations of Ten Thousand Dollars (US$10,000) and integral multiples thereof, provided that the number of shares to be issued upon conversion is a minimum of 3,000 (unless if at the time of election to convert the number of shares of Common Stock issuable upon conversion is less than 3,000). &nbsp;The Note is exchangeable for an equal aggregate principal amount of Note of different authorized denominations, as requested by the Holder surrendering the same. &nbsp;No service charge will be made for such registration or transfer or exchange.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">2.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Holder of this Note is entitled at any time at its option to convert all or a portion of the principal amount of this Note plus accrued interest into shares of Common Stock at a conversion price for each share of Common Stock equal to the Current Market Price multiplied by sixty percent (60%) (the &#147;Conversion Price&#148;). &#147;Current Market Price&#148; means the average of the two (2) lowest closing bid prices for the Common Stock as reported by Bloomberg, LP or, if not so</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>1</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>reported, as reported on the over-the-counter market, for the five (5) trading days ending on the trading day immediately before the relevant Conversion Date (as defined below). &nbsp;The amount of shares issuable pursuant to a conversion shall equal the principal amount (or portion thereof) of the Note to be converted, plus accrued interest, divided by the Conversion Price.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>Conversion shall be effectuated by surrendering the Note to the Company, accompanied by or preceded by facsimile or other delivery to the Company of the form of conversion notice attached hereto as Exhibit A, executed by the Holder evidencing such Holder's intention to convert a specified portion hereof. &nbsp;No fractional shares of Common Stock or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. &nbsp;The date on which notice of conversion is given (the &quot;Conversion Date&quot;) shall be deemed to be the date on which the Holder faxes or otherwise delivers the conversion notice (&quot;Notice of Conversion&quot;), substantially in the form annexed hereto as Exhibit A, duly executed, to the Company. &nbsp;Facsimile delivery of the Notice of Conversion shall be accepted by the Company at facsimile number ( &nbsp;&nbsp;) <FONT style="font-size:11pt">__________________ </FONT><U>ATTN: President.</U> &nbsp;Certificates representing Common Stock upon conversion will be delivered within five (5) business days from the Conversion Date. (&#147;Delivery Date&#148;)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>The Company understands that a delay in the issuance of the Shares of Common Stock beyond the Delivery Date (as defined in this Section) could result in economic loss to the Holder. &nbsp;As compensation to the Holder for such loss, the Company agrees to pay late payments to the Holder for late issuance of Shares upon Conversion, unless the delay is due to causes beyond the reasonable control of the Company or the Transfer Agent, in accordance with the following schedule (where &#147;No. Business Days Late&#148; refers to the number of business days which is beyond three (3)) business days after the Delivery Date):<SUP>1</SUP></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=46.867 /><TD width=147.733 /><TD width=58.6 /><TD /><TD width=65.933 /><TD width=150.333 /><TD width=72.867 /></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=206.333 colspan=2><P style="margin:0px; font-size:12pt">No. Business Days Late</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=216.267 colspan=2><P style="margin:0px; font-size:12pt">Late Payment For Each $10,000</P>
<P style="margin:0px; font-size:12pt">of Note Principal or Interest</P>
<P style="margin:0px; font-size:12pt">Amount Being Converted</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">1</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$100</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">2</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt">$200</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">3</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$300</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">4</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$400</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">5</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$500</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">6</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$600</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">7</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$700</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">8</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$800</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">9</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$900</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">10</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=150.333><P style="margin:0px; font-size:12pt" align=justify>$1,000</P>
</TD><TD style="margin-top:0px" valign=top width=72.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; font-size:12pt">&gt;10</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=223.2 colspan=2><P style="margin:0px; font-size:12pt" align=justify>$1,000 +$200 for each Business</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=46.867><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=147.733><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=58.6><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=65.933><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=223.2 colspan=2><P style="margin:0px; font-size:12pt" align=justify>Day Late beyond 10 days</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=180 /><TD /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>2</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The Company shall pay any payments incurred under this Section in immediately available funds upon demand as the Holder&#146;s remedy for such delay. &nbsp;Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of such shares of Common Stock by close of business on the Delivery Date, unless such failure is due to causes beyond the Company&#146;s reasonable control or that of its Transfer Agent, &nbsp;the Holder will be entitled to revoke the relevant Notice of Conversion by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to delivery of such Notice of Conversion; provided, however, that an amount equal to any payments contemplated by this Section which have accrued through the date of such revocation notice shall remain due and owing to the Converting Holder notwithstanding such revocation. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Company&#146;s Transfer Agent is participating in the Depository Trust Company (&#147;DTC&#148;) Fast Automated Securities Transfer program, upon request of the Holder and its compliance with the provisions contained in this paragraph, so long as the certificates therefore do not bear a legend and the Holder thereof is not obligated to return such certificate for the placement of a legend thereon, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder&#146;s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>The Holder of the Note shall be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement of any case under 11 U.S.C. &#167;101 <U>et</U> <U>seq.</U> (the &#147;Bankruptcy Code&#148;). &nbsp;In the event the Company is a debtor under the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. &#167;362 in respect of such holder&#146;s conversion privilege. &nbsp;The Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. &#167;362 in respect of the conversion of the Note. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">3.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Company shall be entitled to withhold from all payments of principal of this Note any amounts required to be withheld under the applicable provisions of the United States income tax laws or other applicable laws at the time of such payments, and Holder shall execute and deliver all required documentation in connection therewith.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">4.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (the &quot;Act&quot;), and other applicable state and foreign securities laws. &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">5.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Note at the time, place, and rate, and in the coin or currency, herein prescribed. &nbsp;This Note is a direct obligation of the Company.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>3</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">6.</P>
<P style="margin-top:0px; margin-bottom:16px; text-indent:-2px; font-size:12pt">Presentment. &nbsp;Except as set forth herein, the Company waives presentment, demand and presentation for payment, notice of nonpayment and dishonor, protest and notice of protest and expressly agrees that this Note or any payment hereunder may be extended from time to time by the Holder without in any way affecting the liability of the Company.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; clear:left; float:left">7.</P>
<P style="margin-top:0px; margin-bottom:16px; text-indent:-2px; font-size:12pt">Maximum Rate. &nbsp;All provisions herein made are expressly limited so that in no event whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to Holder for the use of the money advanced or to be advanced hereunder exceed the maximum rate of interest allowed to be charged under applicable law (the &#147;Maximum Rate&#148;), regardless of whether or not there has been an acceleration of the payment of principal as set forth herein. If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby shall involve the payment of interest in excess of the Maximum Rate, then, <U>ipso facto</U>, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder shall ever receive interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the payment of interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between the Maker and Holder with respect to the indebtedness evidenced hereby. </P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; clear:left; float:left">8.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>This Note shall be governed by and construed in accordance with the laws of the State of New York. &nbsp;Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the City of New York or the state courts of the State of New York sitting in the City of New York in connection with any dispute arising under this Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on <I>forum non coveniens</I>, to the bringing of any such proceeding in such jurisdictions. Each of the parties hereby waives the right to a trial by jury in connection with any dispute arising under this Note.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">9.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The following shall constitute an &quot;Event of Default&quot;:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">a.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall default in the payment of principal and interest on this Note and same shall continue for a period of five (5) days; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">b.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any of the representations or warranties made by the Company herein, in any certificate or financial or other written statements heretofore or hereafter furnished by the Company in connection with the execution and delivery of this Note shall be false or misleading in any material respect at the time made; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>4</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">c.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall fail to perform or observe, in any material respect, any other covenant, term, provision, condition, agreement or obligation of any Note and such failure shall continue uncured for a period of thirty (30) days after written notice from the Holder of such failure; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">d.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company fails to authorize or to cause its Transfer Agent to issue shares of Common Stock upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or to cause its Transfer Agent to transfer any certificate for shares of Common Stock issued to the Holder upon conversion of this Note and when required by this Note, and such transfer is otherwise lawful, or fails to remove any restrictive legend on any certificate or fails to cause its Transfer Agent to remove such restricted legend, in each case where such removal is lawful, as and when required by this Note, the Agreement, and any such failure shall continue uncured for ten (10) business days; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">e.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall (1) admit in writing its inability to pay its debts generally as they mature; (2) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (3) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">f.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">g.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company and shall not be dismissed within sixty (60) days thereafter; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">h.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Any money judgment, writ or warrant of attachment, or similar process in excess of One Hundred Fifty Thousand ($150,000) Dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of sixty (60) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">i.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company and, if instituted against the Company, shall not be dismissed within sixty (60) days after such institution or the Company shall by any action or answer approve of, consent</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=center>5</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin:0px; padding-left:144px; font-size:12pt" align=justify>to, or acquiesce in any such proceedings or admit the material allegations of, or default in answering a petition filed in any such proceeding; or</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:12pt; float:left">j.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:12pt" align=justify>The Company shall have its Common Stock suspended or delisted from an exchange or over-the-counter market from trading for in excess of five trading days.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Then, or at any time thereafter, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment, demand, protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt"><U>Collection</U>. &nbsp;In the event this Note is placed by Holder in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby, the Company agrees to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys' fees and all court costs.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">10.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>The Holder may not convert this Note to the extent such conversion would result in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.999% of the then issued and outstanding shares of Common Stock held by such Holder after application of this Section. &nbsp;Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock &nbsp;in excess of 9.999% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal amount of Note are convertible shall be the responsibility and obligation of the Holder. &nbsp;If the Holder has delivered a Conversion Notice for a principal amount of Note that would result in the issuance of in excess of the permitted amount hereunder, without regard to any other shares that the Holder or its affiliates may beneficially own, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date and, at the option of the Holder, either retain any principal amount tendered for conversion in excess of the permitted amount hereunder for future conversions or return such excess principal amount to the Holder. &nbsp;The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected by any such waiver.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>6</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:12pt; float:left">11.</P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify>Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent or receive notice as a shareholder in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the Company, unless and to the extent converted in accordance with the terms hereof.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:12pt" align=justify>IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Dated: July 18, 2012</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD /><TD width=36 /><TD width=324 /></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt"><B>ACCELPATH, INC. </B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=324><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt" align=justify>By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=324><P style="margin:0px; padding-left:12px; font-size:12pt">/s/Shekhar Wadekar</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=324><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt" align=justify>Shekhar Wadekar</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=360 colspan=2><P style="margin:0px; font-size:12pt" align=justify>Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=36 /><TD width=288 /><TD /></TR>
<TR><TD style="margin-top:0px" valign=top width=324 colspan=2><P style="margin:0px; font-size:12pt">ATTESTOR</P>
</TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=36><P style="margin:0px; font-size:12pt">By:</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=288><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD><TD style="margin-top:0px" valign=top><P style="margin:0px; padding:0px; font-size:12pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>7</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
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