<SUBMISSION>
<ACCESSION-NUMBER>0001078782-15-000192
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20150205
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>5.03
<ITEMS>9.01
<FILING-DATE>20150210
<DATE-OF-FILING-DATE-CHANGE>20150210
<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>15593919
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>352A CHRISTOPHER AVENUE
<CITY>GAITHERSBURG
<STATE>MD
<ZIP>20879
<PHONE>240 780 7138
</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>f8k021015_8k.htm
<DESCRIPTION>FORM 8-K CURRENT REPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>FORM 8-K Current Report</TITLE>
<META NAME="author" CONTENT="chase chandler">
<META NAME="date" CONTENT="02/10/2015">
</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><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0px" align=center><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" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=614.4 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=614.4><P style="margin:0px" align=center><B>February 5, 2015</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px" align=center>Date of Report (Date of earliest event reported):</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px; padding:0px">&nbsp;</P></TD><A NAME="FIS_UNIDENTIFIED_TABLE"></A></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=614.4><P style="margin:0px; font-size:14pt" align=center><B>ACCELPATH, INC</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px" align=center>(Exact name of registrant as specified in its charter)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=192 /><TD width=19.2 /><TD width=192 /><TD width=19.2 /><TD width=192 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=192><P style="margin:0px" align=center><B>Delaware</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=192><P style="margin:0px" align=center><B>000-27023</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=192><P style="margin:0px" align=center><B>45-5151193</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px" align=center>(State or other jurisdiction of incorporation)</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px" align=center>(Commission File Number)</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=192><P style="margin:0px" align=center>(IRS Employer Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=614.4 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=614.4><P style="margin:0px" align=center><B>850 3<SUP>rd&nbsp;</SUP>Avenue, Suite 16C, NYC, NY 10022</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px" align=center>Address of principal executive offices and zip code</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=614.4><P style="margin:0px" align=center><B>(212) 994-9875</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=614.4><P style="margin:0px" align=center>Registrant&#146;s telephone number, including area code</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><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" align=justify><BR></P>
<P style="margin:0px" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>&nbsp;<FONT style="margin-bottom:1.333px; padding-top:1.333px; font-size:6pt; border:1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT style="font-size:6pt; color:#FFFFFF">.</FONT>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<A NAME="F8K101614_8K_HTM_PART_1_2_1"></A><A NAME="F8K101614_8K_HTM_ITEM_1_42_1"></A></P>
<A NAME="eolPage2"></A><A NAME="FIS_SECTION_8_OTHER_EVENTS"></A><A NAME="FIS_OTHER_EVENTS"></A><P style="margin:0px"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=justify><B>Item 1.01 Entry into a Material Definitive Agreement.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On February 5, 2015, AccelPath, INc. (the &#147;Company&#148;) entered into a Securities Purchase Agreement (the &#147;Agreement&#148;) with STI Signature Spirits Group, LLC, a New York limited liability company (&#147;STI&#148;), and the members of STI (collectively referred to as the Sellers). &nbsp;&nbsp;Under the terms of the Agreement, the Sellers will sell 52.78 membership interests in STI, representing 52% of the outstanding membership units of STI (the &#147;Majority Interest&#148;), to the Company. &nbsp;In exchange for the Majority Interest, the Company shall issue shares of a newly created Series K preferred stock (the &#147;Preferred Stock&#148;) with a stated value of $750,000 and $55,000 of restricted common stock of the Company and will assume $485,516.53 worth of STI&#146;s debt. &nbsp;Further, the Sellers shall be entitled to additional shares of Preferred Stock with a stated value of $2,250,000 pursuant to a three year earn out based on the number of units sold and booked by STI for each calendar year beginning the 2015.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><FONT style="background-color:#FFFFFF">The foregoing information is a summary of the Agreement involved in the transaction described above, is not complete, and is qualified in its entirety by reference to the full text of the Agreement, which is attached an exhibit to this Current Report on Form 8-K. Readers should review the Agreement for a complete understanding of the terms and conditions associated with this transaction.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Item 2.01 Completion of Acquisition or Disposition of Assets.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On February 5, 2015, the Company closed the transaction with STI described in Item 1.01 above.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On February 5, 2015, the Company created the new Series K preferred stock. &nbsp;A copy of the certificate of designation is filed as an exhibit to this Current Report on Form 8-K.</P>
<A NAME="F8K101614_8K_HTM_PART_1_2_2"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Item 9.01 Financial Statements and Exhibits.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">(a)</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify><U>Financial statements of business acquired.</U></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; padding-left:48px" align=justify><FONT style="background-color:#FFFFFF">The financial statements required by this Item 9.01 will be filed by an amendment to this Form 8-K within 71 calendar days after the filing date of this Form 8-K.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">(b)</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify><U>Pro forma financial information.</U></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; padding-left:48px" align=justify><FONT style="background-color:#FFFFFF">The pro forma financial information required by this Item 9.01 will be filed by an amendment to this Form 8-K within 71 calendar days after the filing date of this Form 8-K.</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; float:left">(d)</P>
<P style="margin:0px; padding-left:24px; text-indent:-2px" align=justify><U>Exhibits.</U></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=61.867 /><TD width=15.8 /><TD width=630 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=61.867><P style="margin:0px" align=center><B>Exhibit Number</B></P>
</TD><TD style="margin-top:0px" valign=top width=15.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=630><P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=61.867><P style="margin:0px" align=center>10.1</P>
</TD><TD style="margin-top:0px" valign=top width=15.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=630><P style="margin:0px" align=justify>Securities Purchase Agreement by and among STI Signature Spirits, LLC, the members of STI, and the Company</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=61.867><P style="margin:0px" align=center>99.1</P>
</TD><TD style="margin-top:0px" valign=top width=15.8><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=630><P style="margin:0px" align=justify>Certificate of Designation of Series K Preferred Stock</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>SIGNATURES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>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 thereunto duly authorized.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-left:384px" align=justify>ACCELPATH, INC.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:384px; float:left">Date: February 10, 2015</P>
<P style="margin:0px; text-indent:-2px" align=justify>By: <I><U>/s/ Gilbert Steedley</U></I></P>
<P style="margin:0px; padding-left:384px; clear:left" align=justify>Its: CEO</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin-top:0px; margin-bottom:9.8px"><BR></P>
</DIV></BODY>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f8k021015_ex10z1.htm
<DESCRIPTION>EXHIBIT 10.1 SECURITIES PURCHASE AGREEMENT
<TEXT>
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<TITLE>Exhibit 10.1 Securities Purchase Agreement</TITLE>
<META NAME="author" CONTENT="JMS">
<META NAME="date" CONTENT="02/10/2015">
</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=right><B>EXHIBIT 10.1</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>SECURITIES PURCHASE AGREEMENT</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>This Securities Purchase Agreement (this &#147;Agreement&#148;) is dated as of February 3, 2015, by and among the members of STI Signature Spirits Group, LLC , a New York limited liability company (the &#147;Company&#148;) listed on <B>Exhibit A</B> attached hereto (collectively referred to as the Seller&#148;), STI Signature Spirits Group, LLC and Accelpath, Inc. (the &#147;Purchaser&#148;); and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), the Seller desires to sell to the Purchaser, and the Purchaser desires to purchase 52.78 membership interests of the Company, representing fifty two percent (52%) of the issued and outstanding membership interests of the Company (the &#147;Majority Interest&#148;), and assume certain debt of the Company, as more fully described in this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Sellers and the Purchaser agree as follows:</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M18"></A><A NAME="_DV_M19"></A><A NAME="_DV_M20"></A><A NAME="_DV_M21"></A><A NAME="_DV_M25"></A><A NAME="_DV_M26"></A><A NAME="_DV_M27"></A><A NAME="_DV_M28"></A><A NAME="_DV_M29"></A><A NAME="_DV_M30"></A><A NAME="_DV_M31"></A><A NAME="_DV_M32"></A><A NAME="_DV_M33"></A><A NAME="_DV_M34"></A><A NAME="_DV_M35"></A><A NAME="_DV_M36"></A><P style="margin:0px" align=center>ARTICLE I</P>
<P style="margin:0px" align=center>DEFINITIONS</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">1.1</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Definitions</U>. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Affiliate</U>&#148; means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Business Day</U>&#148; means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Closing</U>&#148; means the closing of the purchase and sale of the Common Stock pursuant to Section 2.1.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Closing Date</U>&#148; means the Business Day when this Agreement has been executed and delivered by the applicable parties thereto, and all conditions precedent to the Purchaser&#146;s obligations to pay the Purchase Price have been satisfied or waived.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Commission</U>&#148; means the Securities and Exchange Commission.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Common Stock Equivalents</U>&#148; means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Exchange Act</U>&#148; means the Securities Exchange Act of 1934, as amended.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Liens</U>&#148; means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Losses</U>&#148; means a lien, charge, security interest, encumbrance, rights of first refusal, preemptive right or other restriction.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;Majority Interest&#148; means 52.78 membership interests held by the Seller (as set forth in Exhibit A) representing fifty two percent (52%) of the issued and outstanding membership interest of the Company to be sold to the Purchaser pursuant to this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Person</U>&#148; means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Preferred Stock</U>&#148; means Series K Convertible Preferred Stock issued by Purchaser as consideration to Seller, the form of certificate of designation of which is set forth as <B>Exhibit E</B> attached hereto.</P>
<P style="margin:0px"><BR>
<BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Proceeding</U>&#148; means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Rule 144</U>&#148; means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center>ARTICLE II</P>
<P style="margin:0px" align=center>PURCHASE AND SALE</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">2.1</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Closing</U>. At the Closing, Purchaser shall deliver (a) shares of Preferred Stock to Seller with a Stated Value equal to $750,000.00 as consideration for the Majority Interest, and (b) shares of restricted common stock to various parties as set forth on <B>Exhibit B</B>. The Seller shall be entitled to additional shares of Preferred Stock with a Stated Value of up to $2,250,000.00 pursuant to a three (3) year earn out based on the number of units sold and booked by the Company for each calendar year, beginning the calendar year 2015, as set forth in <B>Exhibit C</B>. The Seller shall deliver to Purchaser the Majority Interest. The Purchaser shall also assume <U>$485,516.53 </U>worth of obligations of the Company as set forth on <B>Exhibit D.</B> Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall occur at the offices of the Company, or such other location as the parties shall mutually agree, on or before February 15, 2014.</P>
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<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">2.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Closing Conditions</U>.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>At each Closing the Seller shall deliver to the Purchaser:</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(i)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>this Agreement duly executed by the Company, and Seller; and</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(ii)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>certificates evidencing the Majority Interest registered in the name of the Purchaser.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(b)</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>At the Closing the Purchaser shall deliver or cause to be delivered to the Seller the following:</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(i)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>this Agreement duly executed by the Purchaser; and</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(ii)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>the Preferred Stock in the amount set forth on Exhibit A; and</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(iii)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>the restricted Common Stock issued to various parties pursuant to Exhibit 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; float:left">(iv)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify>evidence of the assumption of Company obligations set forth in Exhibit D.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(c)</P>
<P style="margin:0px; text-indent:-2px" align=justify>All representations and warranties of the other party contained herein shall remain true and correct as of the Closing Date and all covenants of the other party shall have been performed if due prior to such date.</P>
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<P style="margin:0px" align=center>ARTICLE III</P>
<P style="margin:0px" align=center>REPRESENTATIONS AND WARRANTIES</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">3.1 </P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Company</U>. The Company hereby makes the following representations and warranties set forth below to the Purchaser:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; padding-left:96px; text-indent:-2px" align=justify><U>Subsidiaries</U>. The Company has no direct or indirect subsidiaries.</P>
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<BR></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Organization and Qualification</U>. The Company is duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company is not in violation of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified to do business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, (i) could not, individually or in the aggregate adversely affect the legality, validity or enforceability of this Agreement, (ii) has had or could not reasonably be expected to result in a material adverse effect on the results of operations, assets, prospects, business or condition (financial or otherwise) of the Company, or (iii) could not, individually or in the aggregate, adversely impair the Company&#146;s ability to perform fully on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a &#147;<U>Material Adverse Effect</U>&#148;).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(c)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Authorization; Enforcement</U>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder or thereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the Company other than Required Approvals. This Agreement has been (or upon delivery will be) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors&#146; rights and remedies generally and general principles of equity. The Company is not in violation of any of the provisions of its certificate or articles of incorporation, by-laws or other organizational or charter documents.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(d)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Conflicts</U>. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company&#146;s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals, conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) result, in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as has not had or could not reasonably be expected to result in a Material Adverse Effect.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(e)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Filings, Consents and Approvals</U>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of 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; float:left">(f)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Majority Interest</U>. The Majority Interest are duly authorized and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in this Agreement.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(g)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Capitalization</U>. The capitalization of the Company as of the Closing Date is as described on Schedule 3.1(g) and will remain as of the Closing Date. The Company has not issued any membership interests or other capital stock since such date. Except as set forth on Schedule 3.1(g), there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, membership interests, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional membership interests, or securities or rights convertible or exchangeable into membership interests. The issuance and sale of the Majority Interest will not obligate the Company to issue membership interest or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(h)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Litigation</U>. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an &#147;<U>Action</U>&#148;) which: (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Shares or (ii) could reasonably be expected to result in a Material Adverse Effect. Neither the Company, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty that has had or could reasonably be expected to result in a Material Adverse Effect. The Company does not have pending before the Commission any request for confidential treatment of information. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company that has had or could reasonably be expected to result in a Material Adverse Effect.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(i)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Labor Relations</U>. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which has had or could reasonably be expected to result in a Material Adverse Effect. None of The Company&#146;s employees is a member of a union that relates to such employee&#146;s relationship with the Company, and the Company is not a party to a collective bargaining agreement, and the Company believes that its relationships with their employees are good. No officer, to the Knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other Contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company to any liability with respect to any of the foregoing matters. The Company is in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(j)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Compliance</U>. The Company is not: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived) that has had or could reasonably be expected to result in a Material Adverse Effect, (ii) is in violation of any order of any court, arbitrator or governmental body that has had or could reasonably be expected to result in a Material Adverse Effect, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority that has had or could reasonably be expected to result in a Material Adverse Effect.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(k)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Regulatory Permits</U>. The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their business, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (&#147;<U>Material Permits</U>&#148;), and the Company has not received any notice of proceedings relating to the revocation or modification of any Material Permit.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(l)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Title to Assets</U>. The Company has good and marketable title in fee simple to all real property owned by it that is material to the business of the Company and good and marketable title in all personal property owned by it that is material to the business of the Company, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company is held by it under valid, subsisting and enforceable leases of which the Company is in compliance, except where the failure to be in compliance would not reasonably be expected to result in a Material Adverse Effect.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(m)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Patents and Trademarks</U>. The Company has, or has rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for use in connection with its businesses and which the failure to so have has had or could reasonably be expected to result in a Material Adverse Effect (collectively, the &#147;<U>Intellectual Property Rights</U>&#148;). The Company has not received a written notice that the Intellectual Property Rights used by the Company violates or infringes upon the rights of any Person that has had or could reasonably be expected to result in a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights that has had or could reasonably be expected to result in a Material Adverse Effect.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(n)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Insurance</U>. The Company maintains no insurance.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(o)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Certain Fees</U>. No brokerage or finder&#146;s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement, and the Company has not taken any action that would cause the Purchaser to be liable for any such fees or commissions.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(p)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Financial Statements</U>. The financial statements of the Company as supplied to the Purchasers (&#147;<U>Financial Statements</U>&#148;) comply in all material respects with applicable accounting requirements with respect thereto as in effect at the time of filing. The Financial Statements have been prepared in accordance with GAAP, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.</P>
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<A NAME="_DV_M138"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(q)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Material Changes</U>. Since the date of the latest Financial Statement: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise), (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities. Except for the issuance of the Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its business, properties, operations or financial condition, that would be required to be disclosed by the Company.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(r)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Tax Status</U>. The Company has made or filed all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, statute or local tax. None of the Company&#146;s tax returns is presently being audited by any taxing authority.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(s)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Foreign Corrupt Practices.</U> Neither the Company, nor to the Knowledge of the Company, any agent or other person acting on behalf of the Company, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.</P>
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<A NAME="_DV_M157"></A><A NAME="_DV_M158"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(t)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Disagreements with Accountants and Lawyers.</U> There are no disagreements of any kind, including but not limited to any disagreements regarding fees owed for services rendered, presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company, and the Company is current with respect to any fees owed to its accountants and lawyers.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(u)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Minute Books</U>. The minute books of the Company made available to the Purchaser contain a complete summary of all meetings and written consents in lieu of meetings of directors and stockholders since the time of incorporation.</P>
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<A NAME="_DV_M162"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(v)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Employee Benefits</U>. The Company has never had any plans which are subject to ERISA.</P>
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<A NAME="_DV_M163"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(w)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Business Records and Due Diligence</U>. Prior to the Closing, the Company has delivered (or will deliver) to the Purchaser all records and documents relating to the Company, which the Company and possesses, including, without limitation, books, records, government filings, Tax Returns, Charter Documents, corporate records, stock records, consent decrees, orders, and correspondence, director and stockholder minutes, resolutions and written consents, stock ownership records, financial information and records, and other documents used in or associated with the Company.</P>
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<A NAME="_DV_M164"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(x)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Contracts</U>. Except as set forth on Schedule 3.1(x), The Company is not a party to any Contracts.</P>
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<A NAME="_DV_M165"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(y)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Undisclosed Liabilities</U>. Except as otherwise disclosed in the Company&#146; Financial Statements, the Company has no other undisclosed liabilities whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise. The Company represents that at the date of Closing, except as set forth on Schedule 3.1 (y) the Company shall have no liabilities or obligations whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.</P>
<A NAME="_DV_M166"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M167"></A><A NAME="_DV_M168"></A><P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">3.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Purchaser</U>. The Purchaser represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Organization; Authority</U>. The Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations thereunder. The execution, delivery and performance by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action on the part of the Purchaser. This Agreement, to which it is party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Investment Intent</U>. The Purchaser understands that the Shares are &#147;restricted securities&#148; and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Shares as principal for its own account for investment purposes only and not with a view to or for distributing or reselling such Shares or any part thereof, has no present intention of distributing any of such Shares and has no arrangement or understanding with any other persons regarding the distribution of such Shares. The Purchaser is acquiring the Shares hereunder in the ordinary course of its business. The Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Shares.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M95"></A><A NAME="_DV_M96"></A><A NAME="_DV_M97"></A><A NAME="_DV_M98"></A><A NAME="_DV_M99"></A><A NAME="_DV_M100"></A><A NAME="_DV_M101"></A><A NAME="_DV_M102"></A><A NAME="_DV_M119"></A><A NAME="_DV_M120"></A><A NAME="_DV_M121"></A><A NAME="_DV_M122"></A><A NAME="_DV_M123"></A><A NAME="_DV_M124"></A><A NAME="_DV_M125"></A><A NAME="_DV_M126"></A><P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">3.3</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Seller</U>. The Seller represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Ownership</U>. The Seller is the legal, beneficial and registered owner(s) of Majority Interest, free and clear of any liens, security interests, charges or other encumbrances of any nature whatsoever. The Majority Interest are each validly issued, fully paid and non-assessable.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Conflict</U>. The execution, delivery and performance by the Seller of this Agreement, and the consummation of the transactions contemplated hereby, will not (i) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any contractual obligations or other agreements of the Seller, or (ii) violate any provision of law applicable to the Seller.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(c)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Consents</U>. No registration, filing with the consent or approval of, or other action by, any federal, state or other governmental authority, agency, regulatory body, third party or other Person is or will be required in connection with the execution, delivery and performance by the Seller of this Agreement and the consummation of the transactions contemplated hereby.</P>
<P style="margin:0px; clear:left"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center>ARTICLE IV</P>
<P style="margin:0px" align=center>OTHER AGREEMENTS OF THE PARTIES</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">4.1</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Transfer Restrictions</U>.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify>The Preferred Stock may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Preferred Stock other than pursuant to an effective registration statement or Rule 144, the Purchaser may require the transferor thereof to provide an opinion of counsel selected by the transferor and reasonably acceptable to Purchaser, the form and substance of which opinion shall be reasonably satisfactory to the Purchaser, to the effect that such transfer does not require registration of such transferred Preferred Stock under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of the Seller under 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; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify>The Seller agrees to the imprinting, so long as is required by this Section 4.1(b), of the following legend on any certificate evidencing the Preferred Stock:</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; padding-left:96px" align=justify>THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;SECURITIES ACT&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">4.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Leak Out.</U> Each Seller agrees not to convert more than twenty percent (20%) of the stated value of the Preferred Stock it / / she / he holds during any calendar quarter (3 month period).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">4.3</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Working Capital Facility</U>. Purchaser shall provide a working capital loan with monthly installments of a minimum of $50,000.00 per calendar month to be paid by the 5<SUP>th</SUP> day of each calendar month pursuant to the Working Capital Loan (&#147;Loan&#148;) set forth in Exhibit F. Pursuant to the Loan, Purchaser shall provide $25,000.00 upon closing and $75,000.00 within 20 business days of the Closing Date. Subject to the applicable cure period in the Loan Agreement, any default of the Working Capital Loan shall be a default under this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=center>ARTICLE V<BR>
MISCELLANEOUS</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.1</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Fees and Expenses</U>. Except as otherwise set forth in this Agreement, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Shares.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Entire Agreement</U>. This Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.3</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Notices</U>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 6:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 6:00 p.m. (New York time) on any Business Day, (c) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.</P>
<P style="margin:0px; clear:left"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.4</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Amendments; Waivers</U>. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.5</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Construction</U>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 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-top:0px; margin-bottom:-2px; width:48px; float:left">5.6</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser. The Purchaser may assign its rights under this Agreement to any Person to whom the Purchaser assigns or transfers any Shares.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.7</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Third-Party Beneficiaries</U>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.5.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.8</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Governing Law; Venue; Waiver of Jury Trial</U>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the County of New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney&#146;s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.9</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Survival</U>. The representations, warranties and covenants contained herein shall survive for a period of 12 months after the Closing Date and delivery and/or exercise of the Shares, as applicable.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.10</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Execution</U>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">5.11</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Severability</U>. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center>(Signature Page Follows)</P>
<P style="margin:0px"><BR>
<BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>ACCELPATH, INC.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>By: <I><U>/s/ Gilbert Steedley</U></I></P>
<P style="margin:0px" align=justify>Name: Gilbert Steedley</P>
<P style="margin:0px" align=justify>Title: CEO</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=340 /><TD width=15.733 /><TD width=342.667 /></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px">SELLER:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px">Artisan Brands, LLC</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px">Spirits Trading USA, LLC</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px">By:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px">By:</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>Franklin Dismuke</U></P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Evie Ponce</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>David Cooke</U></P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Kurt Carrington</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px">STI Signature Spirits Group, LLC</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Richard Yost</U></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px">By:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px">Title:</P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px"><U>Address for Notice:</U></P>
</TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px"><U>Address for Notice</U>:</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=340><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=15.733><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=342.667><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center><B>EXHIBIT A</B></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=288 /><TD width=19.2 /><TD width=96 /><TD width=19.2 /><TD width=96 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=288><P style="margin:0px"><B>Seller</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=center><B>% Membership Interests To Purchaser</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=center><B>Number of Shares of Preferred Stock</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Artisan Brands, LLC</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>23.82%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>343.5</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Spirits Trading USA, LLC</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>23.82%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>343.5</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Franklin Dismuke</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>1.02%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>14.775</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Evie Ponce</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>1.02%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>14.775</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">David Cooke</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>1.02%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>14.775</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Kurt Carrington</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>.77%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>11.25</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Richard Yost</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>.52%</P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=right>7.425</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center><B>EXHIBIT B</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Stock Incentives for key Company talent/personnel/vendors:</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Talent</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>To receive new class of preferred stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Tameka Harris &#150; $50,000</P>
<P style="margin:0px" align=justify>Lonika Atkinson &#150; $2,500</P>
<P style="margin:0px" align=justify>Shekinha Anderson &#150; $10,000</P>
<P style="margin:0px" align=justify>Demetria McKinney &#150; $5,000</P>
<P style="margin:0px" align=justify>Clifford Harris &#150; $10,000</P>
<P style="margin:0px" align=justify>Toya Wrigh &#150; $5,000</P>
<P style="margin:0px" align=justify>Rian Parish &#150; $10,000</P>
<P style="margin:0px" align=justify>Sonja Norwood &#150; $10,000</P>
<P style="margin:0px" align=justify>Sean Porter &#150; $2500</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>$105,000 New Class Preferred</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Sales/Brand Ambassadors</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Shawn Steadman &#150; $2500</P>
<P style="margin:0px" align=justify>Ade Alexander &#150; $$2500</P>
<P style="margin:0px" align=justify>Gemma Lancaster &#150; $2500</P>
<P style="margin:0px" align=justify>Victoria Kibunja &#150; $2500</P>
<P style="margin:0px" align=justify>Shaneka Mobley &#150; $2500</P>
<P style="margin:0px" align=justify>Oronde Gadsden &#150; $2500</P>
<P style="margin:0px" align=justify>Jim Jones &#150; $2500</P>
<P style="margin:0px" align=justify>Ronald Coleman &#150; $2500</P>
<P style="margin:0px" align=justify>Antonio McNair &#150; $2500</P>
<P style="margin:0px" align=justify>Quincy Smith &#150; $2500</P>
<P style="margin:0px" align=justify>Coby Kindles &#150; $2500</P>
<P style="margin:0px" align=justify>Shaleah King &#150; $2500</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>$30,000 value in restricted common stock</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Vendors</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Anje Collins &#150; $5000</P>
<P style="margin:0px" align=justify>1226 Studios &#150; $5000</P>
<P style="margin:0px" align=justify>Lynsey Mcfail &#150; $5000</P>
<P style="margin:0px" align=justify>Manu Lawrence &#150; $5000</P>
<P style="margin:0px" align=justify>All linked Media &#150; $5000</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>$25,000 value in restricted common stock</B></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center><B>EXHIBIT C</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Earn-out Schedule</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Initial down payment Upon Closing: $750,00.00 in Series K Preferred Stock</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">Projected total case sales:</P>
<P style="margin:0px"><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=192 /><TD width=19.2 /><TD width=96 /><TD width=19.2 /><TD width=96 /><TD width=19.2 /><TD width=96 /></TR>
<TR><TD style="margin-top:0px" valign=bottom width=192><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center><B>2015</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center><B>2016</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center><B>2017</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=192><P style="margin:0px"><B>Total # of Cases Sold</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center>5,094</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center>18,281</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=96><P style="margin:0px" align=center>35,344</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The Seller shall receive an earn out in additional shares of Series K Preferred Stock if the Company reaches sales of the following number of cases during the three (3) calendar year period beginning January 1, 2015. Issuances of additional shares of Preferred Stock after any calendar year shall be distributed pro-rata to the Seller pursuant to the issuance amount set forth in Schedule A above:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=96 /><TD width=19.2 /><TD width=96 /><TD width=19.2 /><TD width=19.2 /><TD width=86.067 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=center><B>Calendar Year</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=96><P style="margin:0px" align=center><B>Cases</B> <B>Sold</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=105.267 colspan=2><P style="margin:0px" align=center><B>$ Amount in Stated Value of Preferred Stock</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=86.067><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>2015</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>5,094</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.067><P style="margin:0px" align=right>750,000.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>2016</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>18,281</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.067><P style="margin:0px" align=right>750,000.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>2017</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=96><P style="margin:0px" align=center>35,344</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=86.067><P style="margin:0px" align=right>1,250,000.00</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
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<P style="margin:0px" align=center><B>EXHIBIT D</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Larry has actuals</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=288 /><TD width=19.2 /><TD width=19.2 /><TD width=76.8 /></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px"><B>Note Holders</B></P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=96 colspan=2><P style="margin:0px" align=center><B>Amounts</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Franklin Dismuke </P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>118,000</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Sean Porter</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>10,000.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Owen May </P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>9,000.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Janon Costley</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>93,436.91</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Robert Montgomery </P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>93,333.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Eric Banks</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>83,333.00</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=288><P style="margin:0px">Brad Donovan</P>
</TD><TD style="margin-top:0px" valign=top width=19.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=19.2><P style="margin:0px">$</P>
</TD><TD style="margin-top:0px" valign=bottom width=76.8><P style="margin:0px" align=right>76,666.00</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
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<P style="margin:0px" align=center><B>EXHIBIT E</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Certificate of Designation of Series K Preferred Stock</P>
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<P style="margin:0px" align=center><B>SCHEDULE 3.1(g) </B></P>
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<P style="margin:0px" align=center><B>SCHEDULE 3.1(x)</B></P>
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<P style="margin:0px" align=center><B>SCHEDULE 3.1(y)</B></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>f8k021015_ex99z1.htm
<DESCRIPTION>EXHIBIT 99.1 CERTIFICATE OF DESIGNATION OF SERIES K PREFERRED STOCK
<TEXT>
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<TITLE>Exhibit 99.1 Certificate of Designation of Series K Preferred Stock</TITLE>
<META NAME="date" CONTENT="02/10/2015">
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<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="_DV_M0"></A><DIV style="width:720px"><P style="margin:0px" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>CERTIFICATE OF DESIGNATION OF RIGHTS AND PREFERENCES</B></P>
<A NAME="_DV_M1"></A><P style="margin:0px" align=center><B>FOR SERIES K 10% CONVERTIBLE PREFERRED STOCK</B></P>
<A NAME="_DV_M2"></A><P style="margin:0px" align=center><B>OF</B></P>
<A NAME="_DV_M3"></A><P style="margin:0px" align=center><B>ACCELPATH, INC.</B></P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M4"></A><P style="margin:0px; text-indent:48px" align=justify>Accelpath, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;), does hereby certify:</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M5"></A><P style="margin:0px; text-indent:48px" align=justify>FIRST: That pursuant to authority expressly vested in it by the Articles of Incorporation of the Company, the Board of Directors of the Company has adopted the following resolution establishing a new series of Preferred Stock of the Company, consisting of Three Thousand Five Hundred (3,500) shares designated &#147;Series K 10% Convertible Preferred Stock,&#148; with such powers, designations, preferences, and relative participating, optional, or other rights, if any, and the qualifications, limitations, or restrictions thereof, as are set forth in the resolutions:</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M6"></A><P style="margin:0px; padding-left:48px" align=justify>RESOLVED, that the Company's Board of Directors hereby approves the designation and issuance of the Series K 10% Convertible Preferred Stock according to the terms and conditions as set forth herein and authorizes and instructs the Company's Executive Officers to proceed in filing the Certificate of Designation with the State of Delaware and to take such other action as shall be appropriate in connection with the issuance of the Series K 10% Convertible Preferred Stock.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M7"></A><P style="margin:0px; text-indent:48px" align=justify>SECOND: That said resolutions of the directors of the Company were duly adopted in accordance with the provisions of the Delaware Business Corporation Act.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M8"></A><P style="margin:0px; text-indent:48px" align=justify>IN WITNESS WHEREOF, the undersigned hereby affirms, under penalties of perjury, that the foregoing instrument is the act and deed of the Company and that the facts stated therein are true. Dated as of the ____ day of February, 2015.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M9"></A><P style="margin:0px; padding-left:384px" align=justify><B>ACCELPATH, INC.,</B></P>
<A NAME="_DV_M10"></A><P style="margin:0px; padding-left:384px" align=justify><B>a Delaware corporation,</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M11"></A><P style="margin:0px; padding-left:384px" align=justify>By: <I><U>/s/ Gilbert Steedley</U></I></P>
<A NAME="_DV_M12"></A><P style="margin:0px; padding-left:384px" align=justify>Name: Gilbert Steedley</P>
<A NAME="_DV_M13"></A><P style="margin:0px; padding-left:384px" align=justify>Title: CEO</P>
<A NAME="_DV_M14"></A><P style="margin:0px" align=justify><BR>
<BR></P>
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<A NAME="_DV_M15"></A><P style="margin:0px; page-break-before:always" align=justify><BR></P>
<A NAME="_DV_M16"></A><P style="margin:0px" align=center>SERIES K 10% CONVERTIBLE PREFERRED STOCK TERMS</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M17"></A><P style="margin-top:0px; margin-bottom:-2px; width:96px; float:left">Section 1.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Designation, Amount and Par Value</U>. (a) The series of preferred stock shall be designated as the Series K 10% Convertible Preferred Stock (the &#147;<U>Series K Preferred Stock</U>&#148;), and the number of shares so designated and authorized shall be Three Thousand Five Hundred (3,500). Each share of Series K Preferred Stock shall have a par value of $0.001 per share and a stated value of $1,000 per share (the &#147;<U>Stated Value</U>&#148;).</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>(b)<A NAME="_Ref52966801"></A> <U>Transfers</U>. Shares of Series K Preferred Stock may be transferred, assigned, pledged or hypothecated by the Holder of such shares with the written consent of the Company, not to be unreasonable withheld.</P>
<A NAME="_DV_M18"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:96px; float:left">Section 2.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Dividends</U>.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M19"></A><P style="margin:0px; text-indent:48px" align=justify>(a) Holders of Series K Preferred Stock shall be entitled to receive, when and as declared by the Board of Directors out of funds legally available therefor, and the Company shall accrue, quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, commencing on the Issuance Date, cumulative dividends on the Series K Preferred Stock at the rate per share (as a percentage of the Stated Value per share) equal to ten percent (10%) per annum on the Stated Value, payable in common stock. The Company may pay, at its option, accrued dividends at any time while the Series K Preferred Stock remains outstanding. The Company shall pay all accrued and unpaid dividends within five (5) days following the conversion of any or all of the Series K Preferred Stock pursuant to Section 5 hereof. Dividends on the Series K Preferred Stock shall be calculated on the basis of a 360-day year, shall accrue daily commencing on the Issuance Date (as defined in Section 7), and shall be deemed to accrue on such date whether or not earned or declared and whether or not there are profits, surplus or other funds of the Company legally available for the payment of dividends. The party that holds the Series K Preferred Stock on an applicable record date for any dividend payment will be entitled to receive such dividend payment and any other accrued and unpaid dividends which accrued prior to such dividend payment date, without regard to any sale or disposition of such Series K Preferred Stock subsequent to the applicable record date but prior to the applicable dividend payment date. Except as otherwise provided herein, if at any time the Company pays less than the total amount of dividends then accrued on account of the Series K Preferred Stock, such payment shall be distributed ratably among the Holders of the Series K Preferred Stock based upon the number of shares then held by each Holder in proportion to the total number of shares of Series K Preferred Stock then outstanding. In order for the Holders to exercise the right to have dividends paid in cash on any Conversion Date, the Holders must indicate such intention in the Conversion Notice (as defined below), which notice will remain in effect for subsequent Conversion Notices until rescinded by the Holder in a written notice to such effect that is addressed to the Company.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M20"></A><P style="margin:0px; text-indent:48px" align=justify>(b) So long as any shares of Series K Preferred Stock remain outstanding, neither the Company nor any subsidiary thereof shall, without the consent of the Holders of seventy five percent (75%) of the shares of Series K Preferred Stock then outstanding (the &#147;<U>Requisite Holders</U>&#148;), redeem, repurchase or otherwise acquire directly or indirectly any Junior Securities (as defined in Section 7), nor shall the Company directly or indirectly pay or declare any dividend or make any distribution upon, nor shall any distribution be made in respect of, any Junior Securities, nor shall any monies be set aside for or applied to the purchase or redemption (through a sinking fund or otherwise) of any Junior Securities.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M21"></A><P style="margin-top:0px; margin-bottom:-2px; width:96px; float:left">Section 3.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Voting Rights; Negative Covenants</U>. Subject to Section 5(g) below, the Series K Preferred Stock shall have the right to vote, on an as converted basis, on any matter that may from time to time be submitted to the Company&#146;s shareholders for a vote, either by written consent or by proxy. So long as any shares of Series K Preferred Stock are outstanding, the Company shall not and shall cause its subsidiaries not to, without the affirmative vote of the Requisite Holders, (a) alter or change adversely the powers, preferences or rights given to the Series K Preferred Stock, (b) alter or amend this Certificate of Designation, (c) amend its certificate of incorporation, bylaws or other charter documents so as to affect adversely any rights of any Holders of the Series K Preferred Stock, (d) increase the authorized or designated number of shares of Series K Preferred Stock, (e) issue any additional shares of Series K Preferred Stock (including the reissuance of any shares of Series K Preferred Stock converted for Common Stock) or (f) enter into any agreement with respect to the foregoing.</P>
<P style="margin:0px; clear:left" align=justify><BR>
<BR></P>
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<A NAME="_DV_M22"></A><P style="margin-top:0px; margin-bottom:-2px; width:96px; float:left">Section 4.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Liquidation</U>. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary or a Sale (as defined below) (a &#147;<U>Liquidation</U>&#148;), the holders of the Series K Preferred Stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series K Preferred Stock an amount equal to the Stated Value plus all accrued but unpaid dividends per share, whether declared or not, and all other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any Junior Securities, and if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the holders of Series K Preferred Stock shall be distributed among the holders of Series K Preferred Stock ratably in accordance with the respective amounts that would be payable on such shares if all amounts payable thereon were paid in full. The Company shall mail written notice of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each record Holder of Series K Preferred Stock. A &#147;<U>Sale</U>&#148; shall mean a sale of the majority of assets, a merger (other than where the Company is the surviving entity) or consolidation by the Company with another corporation or other entity.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M23"></A><P style="margin-top:0px; margin-bottom:-2px; width:96px; float:left">Section 5.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Conversion</U>.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M24"></A><P style="margin:0px; text-indent:48px" align=justify>(a) <U>Conversion at Option of Holder</U>. Each share of Series K Preferred Stock may be convertible into shares of Common Stock at the option of a Holder, at any time and from time to time, from and after the issuance of the Series K Preferred Stock, at a conversion price equal to the lowest closing bid price for the Common Stock during the thirty (30) trading days immediately preceding a Conversion Date. A Holder shall effect a conversion by surrendering to the Company the original certificate or certificates representing the shares of Series K Preferred Stock to be converted to the Company, together with a completed form of conversion notice attached hereto as <U>Exhibit B</U> (the &#147;<U>Conversion Notice</U>&#148;). Each Conversion Notice shall specify the number of shares of Series K Preferred Stock to be converted, the date on which such conversion is to be effected, which date may not be prior to the date the Holder delivers such Conversion Notice (the &#147;<U>Conversion Date</U>&#148;). If no Conversion Date is specified in a Conversion Notice, the Conversion Date shall be the date that the Conversion Notice is delivered pursuant to this Section 5(a).</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M25"></A><P style="margin:0px; text-indent:48px" align=justify>(b) Not later than five (5) Trading Days after a Conversion Date, the Company will deliver to the Holder (i) a certificate or certificates representing the number of shares of Common Stock being issued upon the conversion of shares of Series K Preferred Stock, (ii) one or more certificates representing the number of shares of Series K Preferred Stock not converted, and (iii) a bank check in the amount of accrued and unpaid dividends on the shares of Series K Preferred Stock so converted. The Company shall, upon request of the Holder, use reasonable efforts to deliver any certificate or certificates required to be delivered by the Company under this Section electronically through the Depository Trust Company or another established clearing corporation performing similar functions.</P>
<A NAME="_DV_M28"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M29"></A><P style="margin:0px; text-indent:48px" align=justify>(c) If at any time conditions shall arise by reason of action taken by the Company which in the sole opinion of the Board of Directors are not adequately covered by the other provisions hereof and which would be reasonably expected to materially and adversely affect the rights of the holders of Series K Preferred Stock (different than or distinguished from the effect generally on rights of holders of any class of the Company's capital stock) or if at any time any such conditions would be reasonably expected to arise by reason of any action contemplated by the Company, the Company shall mail a written notice briefly describing the action contemplated and the material adverse effects of such action on the rights of the holders of Series K Preferred Stock at least 30 calendar days prior to the effective date of such action, and an Appraiser selected by the holders of majority in interest of the Series K Preferred Stock shall give its opinion as to the adjustment, if any (not inconsistent with the standards established in this Section 5), of the Conversion Price (including, if necessary, any adjustment as to the securities into which shares of Series K Preferred Stock may thereafter be convertible) and any distribution which is or would be required to preserve without diluting the rights of the holders of shares of Series K Preferred Stock; <U>provided</U>, <U>however</U>, that the Company, after receipt of the determination by such Appraiser, shall have the right to select an additional Appraiser, in good faith, in which case the adjustment shall be equal to the average of the adjustments recommended by each such Appraiser. The Board of Directors shall make the adjustment recommended forthwith upon the receipt of such opinion or opinions or the taking of any such action contemplated, as the case may be; <U>provided</U>, <U>however</U>, that no such adjustment of the Conversion Price shall be made which in the opinion of the Appraiser(s) giving the aforesaid opinion or opinions would result in an increase of the Conversion Price to more than the Conversion Price then in effect.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M30"></A><P style="margin:0px; text-indent:48px" align=justify>(d) The Company covenants that it will at all times reserve and keep available out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of Series K Preferred Stock, as herein provided, free from preemptive rights or any other actual or contingent purchase rights of persons other than the holders of Series K Preferred Stock, not less than 100% of such number of shares of Common Stock as shall be issuable. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and nonassessable.</P>
<A NAME="_DV_M31"></A><P style="margin:0px" align=justify><BR>
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<A NAME="_DV_M32"></A><P style="margin:0px; text-indent:48px" align=justify>(e) The issuance of certificates for shares of Common Stock on conversion of Series K Preferred Stock shall be made without charge to the Holders thereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, <U>provided</U> that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of such shares of Series K Preferred Stock so converted and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.</P>
<A NAME="_DV_M33"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M34"></A><P style="margin:0px; text-indent:48px" align=justify>(f) Any and all notices or other communications or deliveries to be provided by the Holders of the Series K Preferred Stock hereunder, including, without limitation, any Conversion Notice, shall be in writing and delivered by facsimile, sent by a nationally recognized overnight courier service, or sent by certified or registered mail, postage prepaid, addressed to the attention of the President of the Company at the facsimile telephone number or address of the principal place of business of the Company. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to each Holder of Series K Preferred Stock at the facsimile telephone number or address of such Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section prior to 5:00 p.m. (New York time), (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date, (iii) four days after deposit in the United States mails, (iv) the Business Day (as defined in Section 7) following the date of mailing, if send by nationally recognized overnight courier service, or (v) upon actual receipt by the party to whom such notice is required to be given.</P>
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<P style="margin:0px; text-indent:48px" align=justify>(g) <U>Beneficial Ownership Limitation</U>. The Company shall not effect any conversion of the Series K Preferred Stock, and a Holder shall not have the right to convert any portion of the Series K Preferred Stock, to the extent that, after giving effect to the conversion set forth on the applicable Notice of Conversion, such Holder (together with such Holder&#146;s Affiliates, and any Persons acting as a group together with such Holder or any of such Holder&#146;s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined herein). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of the Series K Preferred Stock with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted shares of Series K Preferred Stock beneficially owned by such Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, the Series K Preferred Stock or any other convertible securities of the Company) beneficially owned by such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 5, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 5 applies, the determination of whether the Series K Preferred Stock is convertible (in relation to other securities owned by such Holder together with any Affiliates) and of how many shares of Series K Preferred Stock are convertible shall be in the sole discretion of such Holder, and the submission of a Notice of Conversion shall be deemed to be such Holder&#146;s determination of whether the shares of Series K Preferred Stock may be converted (in relation to other securities owned by such Holder together with any Affiliates) and how many shares of the Series K Preferred Stock are convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, each Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 5, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) a more recent public announcement by the Company or (ii) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including the Series K Preferred Stock, by such Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The &#147;<U>Beneficial Ownership Limitation</U>&#148; shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of Series K Preferred Stock held by the applicable Holder. A Holder, upon not less than sixty five (65) days&#146; prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 5 applicable to its Series K Preferred Stock and the provisions of this Section 5 shall continue to apply. Any such increase will not be effective until the sixty-sixth (66th) day after such notice is delivered to the Company and shall only apply to such Holder and no other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 5 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor Holder of Series K Preferred Stock.</P>
<A NAME="_DV_M35"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M41"></A><P style="margin:0px" align=justify>Section 6. <U>Definitions</U>. For the purposes hereof, the following terms shall have the following meanings:</P>
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<A NAME="_DV_M42"></A><P style="margin:0px" align=justify>&#147;<U>Business Day</U>&#148; means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.</P>
<A NAME="_DV_M43"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M44"></A><P style="margin:0px" align=justify>&#147;<U>Common Stock</U>&#148; means the common stock, $.001 par value per share, of the Company, and stock of any other class into which such shares may hereafter have been reclassified or changed.</P>
<A NAME="_DV_M45"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M46"></A><P style="margin:0px" align=justify>&#147;<U>Issuance Date</U>&#148; means the earliest date on which a Holder receives shares of the Series K Preferred Stock, regardless of the number of certificates which may be issued to evidence such Series K Preferred Stock.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M47"></A><P style="margin:0px" align=justify>&#147;<U>Holder</U>&#148; means a registered holder of a share or shares of Series K Preferred Stock.</P>
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<A NAME="_DV_M48"></A><P style="margin:0px" align=justify>&#147;<U>Junior Securities</U>&#148; means the Company&#146;s Common Stock.</P>
<A NAME="_DV_M49"></A><P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M50"></A><P style="margin:0px" align=justify>&#147;<U>Person</U>&#148; means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political subdivision thereof) or other entity of any kind.</P>
<A NAME="_DV_M51"></A><A NAME="_DV_M52"></A><P style="margin:0px" align=justify><BR>
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<A NAME="_DV_M53"></A><P style="margin:0px" align=center><B>EXHIBIT B</B></P>
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<A NAME="_DV_M54"></A><P style="margin:0px" align=center><B>NOTICE OF CONVERSION</B></P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_DV_M55"></A><P style="margin:0px" align=justify>(To be executed by the registered holder</P>
<A NAME="_DV_M56"></A><P style="margin:0px" align=justify>to convert shares of Series K Preferred Stock)</P>
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<A NAME="_DV_M57"></A><P style="margin:0px" align=justify>The undersigned hereby elects, in accordance with the terms and conditions of the Certificate of Designation, to convert the number of shares of Series K 10% Convertible Preferred Stock indicated below, into shares of Common Stock, par value $0.001 per share (the &#147;<U>Common Stock</U>&#148;), of Accelpath, Inc. (the &#147;<U>Company</U>&#148;), as of the date written below. If shares are to be issued in the name of a person other than undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the undersigned for any conversion, except for such transfer taxes, if any.</P>
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<A NAME="_DV_M58"></A><P style="margin:0px" align=justify>Conversion calculations:</P>
<A NAME="_DV_M59"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M60"></A><P style="margin:0px; padding-left:144px" align=justify>Date to effect conversion</P>
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<A NAME="_DV_M61"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M62"></A><P style="margin:0px; padding-left:144px" align=justify>Number of shares of Series K Preferred Stock to be converted</P>
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<A NAME="_DV_M63"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M64"></A><P style="margin:0px; padding-left:144px" align=justify>Number of shares of Common Stock to be issued</P>
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<A NAME="_DV_M65"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M66"></A><P style="margin:0px; padding-left:144px" align=justify>Applicable conversion price</P>
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<A NAME="_DV_M67"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M68"></A><P style="margin:0px; padding-left:144px" align=justify>Name of Holder</P>
<A NAME="_DV_M69"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
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<A NAME="_DV_M70"></A><P style="margin:0px; padding-left:144px" align=justify>______________________________________________________</P>
<A NAME="_DV_M71"></A><P style="margin:0px; padding-left:144px" align=justify>Address of Holder</P>
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<A NAME="_DV_M72"></A><P style="margin:0px; padding-left:144px" align=justify>__________________________________</P>
<A NAME="_DV_M73"></A><P style="margin:0px; padding-left:144px" align=justify>Authorized Signature</P>
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