<SUBMISSION>
<ACCESSION-NUMBER>0001078782-15-001770
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20151030
<ITEMS>1.01
<ITEMS>2.01
<ITEMS>9.01
<FILING-DATE>20151109
<DATE-OF-FILING-DATE-CHANGE>20151109
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACCEL BRANDS, INC.
<CIK>0001077800
<ASSIGNED-SIC>3829
<IRS-NUMBER>455151193
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27023
<FILM-NUMBER>151216057
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>137 NATIONAL PLAZA
<STREET2>SUITE 300
<CITY>NATIONAL HARBOR
<STATE>MD
<ZIP>20745
<PHONE>240-273-3295
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>137 NATIONAL PLAZA
<STREET2>SUITE 300
<CITY>NATIONAL HARBOR
<STATE>MD
<ZIP>20745
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>AccelPath, Inc.
<DATE-CHANGED>20120521
</FORMER-COMPANY>
<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>f8k110915_8k.htm
<DESCRIPTION>FORM 8-K CURRENT REPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Form 8-K Current Report</TITLE>
<META NAME="author" CONTENT="Chase Chandler">
<META NAME="date" CONTENT="11/09/2015">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<A NAME="eolPage1"></A><A NAME="FIS_TOP_OF_DOCUMENT"></A><A NAME="F8K021015_8K_HTM"></A><A NAME="FIS_FORM"></A><DIV style="width:720px"><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<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=615.733 /></TR>
<TR><TD style="margin-top:0px" width=615.733><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=615.733><P style="margin:0px" align=center><B>October 30, 2015</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=615.733><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=615.733><P style="margin: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=615.733><P style="margin:0px; font-size:14pt" align=center><B>ACCEL BRANDS, INC.</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=615.733><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=193.333 /><TD width=20.533 /><TD width=193.333 /><TD width=20.533 /><TD width=193.333 /></TR>
<TR><TD style="margin-top:0px" width=193.333><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" width=20.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" width=193.333><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" width=20.533><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" width=193.333><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=193.333><P style="margin:0px" align=center><B>Delaware</B></P>
</TD><TD style="margin-top:0px" valign=top width=20.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=193.333><P style="margin:0px" align=center><B>000-27023</B></P>
</TD><TD style="margin-top:0px" valign=top width=20.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=193.333><P style="margin:0px" align=center><B>45-5151193</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=193.333><P style="margin:0px" align=center>(State or other jurisdiction of incorporation)</P>
</TD><TD style="margin-top:0px" valign=top width=20.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=193.333><P style="margin:0px" align=center>(Commission File Number)</P>
</TD><TD style="margin-top:0px" valign=top width=20.533><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=193.333><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=615.733 /></TR>
<TR><TD style="margin-top:0px" width=615.733><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=615.733><P style="margin:0px" align=center><B>137 National Plaza, Suite 300, National Harbor, Maryland 20745</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=615.733><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=615.733><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=615.733><P style="margin:0px" align=center><B>(240) 273-3295</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=615.733><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><BR></P>
<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="F8K021015_8K_HTM_F8K101614_8K_HTM_ITEM_1"></A><A NAME="F8K021015_8K_HTM_EOLPAGE2"></A><A NAME="FIS_SECTION_8_OTHER_EVENTS"></A><A NAME="FIS_OTHER_EVENTS"></A></P>
<P style="margin:0px"><BR>
<A NAME="FIS_SECTION_1_BUSINESS_AND_OPERATIONS"></A><A NAME="FIS_ENTRY_MATERIAL_AGREEMENT"></A><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"><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 October 30, 2015, Accel Brands, Inc. (the &#147;Company&#148;) entered into a Securities Exchange Agreement (the &#147;Agreement&#148;) with Affinity Beverage Group, Inc., a Nevada corporation (&#147;Affinity&#148;) and Village Tea Distributors, Inc., a Texas corporation (&#147;Village Tea&#148;). Under the terms of the Agreement, the Company shall transfer seventy (70) shares of common stock of Village Tea to Affinity, in exchange for seven hundred fifty (750) shares of Affinity&#146;s newly issued Series C Preferred Stock. Affinity shall also assume from the Company $538,500 worth of obligations of the Company, which shall act a notation to such obligations. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>In conjunction with the Agreement, the Company and the holders of the Company&#146;s Series J Preferred Stock entered into an Exchange Agreement (the &#147;Exchange Agreement&#148;). Under the terms of the Exchange Agreement, the holders of the Company&#146;s Series J Preferred Stock agreed to deliver to the Company for retirement and cancellation all the Series J Preferred Stock that they hold in exchange for an equal amount of the Affinity Series C Preferred Stock the Company received under the Agreement.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>The foregoing information is a summary of the Agreement and the Exchange 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 and the Exchange Agreement, which are attached as exhibits to this Current Report on Form 8-K. Readers should review the Agreement and the Exchange Agreement for a complete understanding of the terms and conditions of the transaction described above.</P>
<A NAME="FIS_SECTION_2_FINANCIAL_INFORMATION"></A><A NAME="FIS_CHANGE_IN_ASSETS"></A><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 October 30, 2015, the Company disposed of the Village Tea assets as described in Item 1.01 above.</P>
<A NAME="FIS_SECTION_5_CORPORATE_GOVERNANCE"></A><A NAME="FIS_CHANGE_IN_FYE_OR_ARTICLES"></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>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=63.267 /><TD width=17.133 /><TD width=631.333 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=63.267><P style="margin:0px"><B>Exhibit Number</B></P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=631.333><P style="margin:0px"><B>Description</B></P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=63.267><P style="margin:0px">10.1</P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px">&nbsp;</P>
</TD><TD style="margin-top:0px" valign=top width=631.333><P style="margin:0px" align=justify>Securities Exchange Agreement entered into on October 30, 2015, by and among the Company, Affinity Beverage Group, Inc. and Village Tea Distributors, Inc.</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top width=63.267><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=631.333><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=top width=63.267><P style="margin:0px">10.2</P>
</TD><TD style="margin-top:0px" valign=top width=17.133><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=top width=631.333><P style="margin:0px" align=justify>Exchange Agreement entered into on October 30, 2015, by and among the Company and the holders of the Company&#146;s Series J Preferred Stock</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<A NAME="FIS_SIGNATURES"></A><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" align=justify>ACCELPATH, INC.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Date: November 5, 2015</P>
<P style="margin:0px" align=justify><I><U>/s/ Gilbert Steedley</U></I></P>
<P style="margin:0px" align=justify>Gilbert Steedley</P>
<P style="margin:0px" align=justify>CEO</P>
<A NAME="eolPage3"></A><A NAME="F8K021015_EX10Z1_HTM"></A><A NAME="FIS_EXHIBIT_10"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
</DIV></BODY>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f8k110915_ex10z1.htm
<DESCRIPTION>EXHIBIT 10.1 SECURITIES EXCHANGE AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 10.1 Securities Exchange Agreement</TITLE>
<META NAME="author" CONTENT="Justeene Blankenship">
<META NAME="date" CONTENT="11/09/2015">
</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=justify><BR></P>
<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><B>SECURITIES EXCHANGE AGREEMENT</B></P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:48px" align=justify>This Securities Exchange Agreement (this &#147;Agreement&#148;) is dated as of October 30, 2015, by and among Accelpath, Inc. (the &#147;Seller&#148;), Affinity Beverage Group, Inc. [f.k.a. Strategic Rare Earth Metals, Inc.] (the &#147;Purchaser&#148;), and Village Tea Distributors, Inc., a Texas corporation (the &#147;Company&#148;).</P>
<P style="margin:0px" align=justify>&nbsp;</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&nbsp;4(2) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), the Seller desires to<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>sell to the Purchaser, and the Purchaser desires to purchase from the Seller 70 shares of Common Stock of the Company, representing seventy percent (70%) of the issued and outstanding shares of common stock of the Company (the &#147;Shares&#148;), and assume certain debt of the Company, as more fully described in this Agreement.</P>
<P style="margin:0px" align=justify>&nbsp;</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>&nbsp;</P>
<P style="margin:0px" align=center>ARTICLE&nbsp;I<BR>
DEFINITIONS</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">1.1<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Definitions</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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&nbsp;1.1:</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px" align=justify><BR></P>
<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 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>&nbsp;</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&nbsp;2.1.</P>
<P style="margin:0px" align=justify>&nbsp;</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>&nbsp;</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>&nbsp;</P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Common Stock</U>&#148; means the common stock of the Company, $0.001 par value per share, and any securities into which such common stock may hereafter be reclassified.</P>
<P style="margin:0px" align=justify>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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>&nbsp;</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 a newly designated series of convertible preferred stock issued by Purchaser as consideration to Seller, designated as Series C Convertible Preferred Stock the form of certificate of designation of which is set forth as Exhibit A attached hereto. </P>
<P style="margin:0px" align=justify>&nbsp;</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>&nbsp;</P>
<P style="margin:0px" align=justify><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" 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>&nbsp;</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>&nbsp;</P>
<P style="margin:0px; text-indent:96px" align=justify>&#147;<U>Shares</U>&#148; means the seventy (70) shares of Common Stock owned by the Seller to be sold to the Purchaser pursuant to this Agreement.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center>ARTICLE&nbsp;II<BR>
PURCHASE AND SALE</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">2.1<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Closing</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>At the Closing, Purchaser shall deliver 750 shares of the Preferred Stock to Seller as consideration for the Shares, and the Seller shall deliver to Purchaser the Shares. The Purchaser shall also assume from Seller $538,500.00 worth of obligations of the Company as set forth on Exhibit B, which will act as a novation of such obligations.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Upon satisfaction of the conditions set forth in Section&nbsp;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 November 1, 2015.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">2.2&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Closing Conditions</U>.</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:96px" align=justify>(a)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>At each Closing the Seller shall deliver to the Purchaser:</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:144px" align=justify>(i)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>this Agreement duly executed by the Company, and Seller; and</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:144px" align=justify>(ii)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>certificates evidencing the Shares, registered in the name of the Purchaser.</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:96px" align=justify>(b)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>At the Closing the Purchaser shall deliver or cause to be delivered to the Seller the following:</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:144px" align=justify>(i)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>this Agreement duly executed by the Purchaser; and</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:144px" align=justify>(ii) certificate evidencing 750 shares of Preferred Stock, registered in the name of the Seller; and </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:144px" align=justify>(iii) evidence of the assumption of Company obligations set forth in Exhibit B.</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:96px" align=justify>(c)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px" align=center>ARTICLE&nbsp;III<BR>
REPRESENTATIONS AND WARRANTIES</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">3.1<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Company</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company hereby makes the following representations and warranties set forth below to the Purchaser:</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(a)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Subsidiaries</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company has no direct or indirect subsidiaries.&nbsp;</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(b)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Organization and Qualification</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(c)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Authorization; Enforcement</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(d)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Conflicts</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(e)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Filings, Consents and Approvals</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(f)&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Shares</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Shares 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.&nbsp;</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(g)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Capitalization</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The capitalization of the Company as of the Closing Date is as described on Schedule&nbsp;3.1(g) and will remain as of the Closing Date.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company has not issued any capital stock since such date.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Except as set forth on Schedule&nbsp;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, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares of Common Stock.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock 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>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(h)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Litigation</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(i)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Labor Relations</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(j)&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Compliance</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(k)&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Regulatory Permits</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(l)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Title to Assets</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(m)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Patents and Trademarks</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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;).<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(n)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Insurance</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company maintains no insurance.</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(o)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Certain Fees</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></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">(p)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Financial Statements</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; 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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(r)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Tax Status</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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:96px; width:144px; float:left">(s)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Foreign Corrupt Practices.</U><FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(t)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Disagreements with Accountants and Lawyers.</U><FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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:96px; width:144px; 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>
<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">(v)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Employee Benefits</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company has never had any plans which are subject to ERISA.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></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">(w)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Business Records and Due Diligence</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<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">(x)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Contracts</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Except as set forth on Schedule 3.1(x), The Company is not a party to any Contracts.</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">(y)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Undisclosed Liabilities</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>
<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">(z)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Minority Certification</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company is a Minority Certificate Company with the Dallas Regional Council of the National Minority Supplier Council (&#147;Minority Certification&#148;), and shall be such at all times.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style=page-break-before:always;margin-top:0;margin-bottom:-4pt;font-size:4pt /><P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">3.2&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Purchaser</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(a)&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Organization; Authority</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(b)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Investment Intent</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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; font-family:Calibri,Times New Roman; font-size:11pt; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; float:left">3.3&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties of the Seller</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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:96px; width:144px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Ownership</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Seller is the legal, beneficial and registered owner of the Shares, free and clear of any liens, security interests, charges or other encumbrances of any nature whatsoever.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Shares are validly issued, fully paid and non-assessable.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; clear:left; float:left">(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Conflict</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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:96px; width:144px; float:left">(c)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Consents</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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" align=justify><BR></P>
<P style="margin:0px" align=center>ARTICLE&nbsp;IV<BR>
OTHER AGREEMENTS OF THE PARTIES</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">4.1<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Transfer Restrictions</U>.</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(a)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">(b)<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify>The Seller agrees to the imprinting, so long as is required by this Section&nbsp;4.1(b), of the following legend on any certificate evidencing the Preferred Stock:</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px" 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&nbsp;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.&nbsp;</P>
<P style="margin:0px; text-indent:48px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">&nbsp;</FONT></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">4.2<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Minority Certification</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company shall maintain its Minority Certification.</P>
<P style="margin:0px; clear:left" align=justify><BR>
<BR></P>
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<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">4.3</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Loan.</U><FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company shall provide to the Purchaser the necessary audited Company financials in order to satisfy the required regulatory disclosure associated with this Securities Purchase Agreement within 60 days of the Closing.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></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">&nbsp;4.4</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Leak Out.</U><FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Seller agrees not to convert more than twenty percent (20%) of the stated value of the Preferred Stock it holds during any calendar month. </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px" align=center>ARTICLE&nbsp;V<BR>
MISCELLANEOUS</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.1</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Fees and Expenses</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Entire Agreement</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.3</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Notices</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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" align=justify>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.4&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Amendments; Waivers</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.5</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Construction</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.6</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Successors and Assigns</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.7<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>No Third-Party Beneficiaries</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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&nbsp;4.5.</P>
<P style="margin:0px; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px" align=justify><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" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.8<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Governing Law; Venue; Waiver of Jury Trial</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The parties hereby waive all rights to a trial by jury.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.9&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Survival</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.10&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Execution</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left">5.11&nbsp;</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Severability</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>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>&nbsp;</P>
<P style="margin:0px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px" align=center>(<I>Signature Page Follows</I>)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
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<P style="margin:0px; page-break-before:always" align=justify><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>By: /s/______________________</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>
<P style="margin:0px" align=justify>AFFINITY BEVERAGE GROUP, INC.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>By: /s/______________________</P>
<P style="margin:0px" align=justify>Name: Janon Costley</P>
<P style="margin:0px" align=justify>Title: CEO</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>COMPANY:</P>
<P style="margin:0px" align=justify>Village Tea Distributors, Inc.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>By: /s/______________________</P>
<P style="margin:0px" align=justify>Name: </P>
<P style="margin:0px" align=justify>Title: </P>
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<P style="margin:0px" align=center>EXHIBIT A</P>
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<P style="margin:0px" align=center>Certificate of Designation of Series C Preferred Stock</P>
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<P style="margin:0px" align=center>EXHIBIT B</P>
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<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=225.6 /><TD width=180 /></TR>
<TR><TD style="margin-top:0px; border:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify><B>Note Holders</B></P>
</TD><TD style="margin-top:0px; border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right><B>Amounts</B></P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Dana Poe</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$157,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Trillium Partners</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$62,500</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Martin Ekechukwu</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$85,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Citibank Group</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$31,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Mastercard Bank</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$13,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Wellsfargo Bank</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$21,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Curtis Edwards</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$50,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Janon Costley</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$108,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Steve Heller</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$4,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=225.6><P style="margin:0px" align=justify>Serec of California</P>
</TD><TD style="margin-top:0px; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=180><P style="margin:0px" align=right>$4,500</P>
</TD></TR>
</TABLE>
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<P style="margin:0px" align=center>SCHEDULE 3.1(y)</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>f8k110915_ex10z2.htm
<DESCRIPTION>EXHIBIT 10.2 EXCHANGE AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>Exhibit 10.2 Exchange Agreement</TITLE>
<META NAME="author" CONTENT="Justeene Blankenship">
<META NAME="date" CONTENT="11/09/2015">
</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=justify><BR></P>
<P style="margin:0px" align=right><B><U>EXHIBIT 10.2</U></B></P>
<P style="margin:0px" align=center><B><U>EXCHANGE AGREEMENT</U></B></P>
<A NAME="_DV_M1"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>THIS EXCHANGE AGREEMENT</B> (this &#147;<B>Exchange Agreement</B>&#148;), is effective as of October __ by and among Accelpath, Inc., a Delaware corporation (the &#147;<B>Company</B>&#148;), and certain holders of the Company&#146;s Series J Preferred Stock listed on Exhibit A attached hereto (each a &#147;Holder&#148; and collectively, the &#147;Holders&#148;). </P>
<A NAME="_DV_M2"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>WHEREAS, the parties are executing and delivering this Agreement in reliance upon an exemption from securities registration afforded by the provisions of Section 4(2), Section 4(6) and/or Regulation D (&#147;<B>Regulation D</B>&#148;) as promulgated by the United States Securities and Exchange Commission (the &#147;<B>Commission</B>&#148;) under the Securities Act of 1933, as amended (the &#147;<B>1933 Act</B>&#148;); and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>WHEREAS, the Company has entered into a separate exchange agreement with Affinity Beverage Group, Inc. (&#147;Affinity&#148;) wherein the Company shall transfer all 70 shares of the common stock of Village Tea Distributors, Inc. that the Company holds to Affinity in exchange for 750 shares of a newly issued Series C Preferred Stock issued by Affinity (&#147;Series C Preferred Stock&#148;); and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>WHEREAS, the Holders now agree to deliver to the Company for retirement and cancellation all the Series J Preferred Stock that they hold in exchange for an equal amount of Series C Preferred Stock as further outlined in Exhibit A.</P>
<A NAME="_DV_M3"></A><A NAME="_DV_M5"></A><A NAME="_DV_M6"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px" align=justify><B>NOW, THEREFORE</B>, in consideration of the mutual covenants and other agreements contained in this Agreement, the parties hereby agree as follows:</P>
<A NAME="_DV_M7"></A><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>Exchange.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>On the Closing Date, the Holders shall deliver to the Company the Series J Preferred Stock for cancellation and retirement to treasury, and the Company shall deliver to the Holders the Series C Preferred Stock, in such amounts and to such Holders as is outlined on Exhibit A.</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">1.2</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Closing</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The &#147;<B>Closing Date</B>&#148; shall be the date that the securities are delivered to the respective parties.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Subject to the satisfaction or waiver of the terms and conditions of this Exchange Agreement.</P>
<A NAME="_DV_M8"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M11"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">2.<A NAME="_DV_M16"></A><A NAME="_DV_M17"></A></P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Representations and Warranties</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Each Holder hereby represents<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>to the Company that:<A NAME="_DV_C7"></A></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">

(a)<A NAME="_DV_C8"></A>

</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>

Authorization and Power

</U>

..

<FONT style="font-family:Calibri,Times New Roman; font-size:11pt">

 </FONT>Holder has the requisite power and authority to enter into and perform this Exchange Agreement.

<FONT style="font-family:Calibri,Times New Roman; font-size:11pt">

 </FONT>The execution, delivery and performance of this Exchange Agreement by Holder and the consummation by Holder of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action, and no further consent or authorization of

<FONT style="font-family:Calibri,Times New Roman; font-size:11pt">

 </FONT>Holder, if applicable, is required.

<FONT style="font-family:Calibri,Times New Roman; font-size:11pt">

 </FONT>This Exchange Agreement has been or will be duly authorized and executed and when delivered by Holder will constitute valid and binding obligations of Holder, enforceable against Holder in accordance with the terms thereof.

</P>
<A NAME="_DV_M22"></A><A NAME="_DV_M23"></A><A NAME="_DV_M24"></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_M33"></A><A NAME="_DV_M34"></A><A NAME="_DV_M36"></A><A NAME="_DV_M38"></A><A NAME="_DV_M40"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(<A NAME="_DV_M39"></A>b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Restricted Security</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Holder understands that the Series C Preferred Stock has not been registered under the 1933 Act and Holder will not sell, offer to sell, assign, pledge, hypothecate or otherwise transfer any of the Series C Preferred Stock unless pursuant to an effective registration statement under the 1933 Act, or unless an exemption from registration is available.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Notwithstanding anything to the contrary contained in this Exchange Agreement, Holder may transfer (without restriction and without the need for an opinion of counsel) the Series C Preferred Stock<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>to its Affiliates (as defined below) provided that each such Affiliate is an &#147;accredited investor&#148; under Regulation D and such Affiliate agrees to be bound by the terms and conditions of this Exchange Agreement. For the purposes of this Exchange Agreement, an &#147;<B>Affiliate</B>&#148; of any person or entity means any other person or entity directly or indirectly controlling, controlled by or under direct or indirect common control with such person or entity.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Affiliate includes each Subsidiary of the Company.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>For purposes of this definition, &#147;<B>control</B>&#148; means the power to direct the management and policies of such person or firm, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<A NAME="_DV_M42"></A><A NAME="_DV_M43"></A><A NAME="_DV_M44"></A><A NAME="_DV_M45"></A><A NAME="_DV_M46"></A><A NAME="_DV_M47"></A><A NAME="_DV_M48"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">3.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Company Representations and Warranties</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company represents to Holders that:<A NAME="_DV_M49"></A></P>
<A NAME="_DV_M51"></A><A NAME="_DV_M52"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; text-indent:144px" align=justify><U>Authority; Enforceability</U>.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>This Exchange Agreement and any other agreements delivered or required to be delivered together with or pursuant to this Exchange Agreement or in connection herewith (collectively &#147;<B>Transaction Documents</B>&#148;) have been duly authorized, executed and delivered by the Company and any Subsidiaries, as the case may be, and are valid and binding agreements of the Company and any Subsidiaries, as the case may be, enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights generally and to general principles of equity.<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>The Company and any Subsidiaries, as the case may be, have full corporate power and authority necessary to enter into and deliver the Transaction Documents and to perform their obligations thereunder.</P>
<A NAME="_DV_M53"></A><A NAME="_DV_M55"></A><A NAME="_DV_M61"></A><A NAME="_DV_M62"></A><A NAME="_DV_M63"></A><A NAME="_DV_M64"></A><A NAME="_DV_M65"></A><A NAME="_DV_M66"></A><A NAME="_DV_M79"></A><A NAME="_DV_M80"></A><A NAME="_DV_M81"></A><A NAME="_DV_M82"></A><A NAME="_DV_M87"></A><A NAME="_DV_M89"></A><A NAME="_DV_M90"></A><A NAME="_DV_M91"></A><A NAME="_DV_M92"></A><A NAME="_DV_M93"></A><A NAME="_DV_M94"></A><A NAME="_DV_M95"></A><A NAME="_DV_M98"></A><A NAME="_DV_M103"></A><A NAME="_DV_M104"></A><A NAME="_DV_M105"></A><A NAME="_DV_M106"></A><A NAME="_DV_M107"></A><A NAME="_DV_M108"></A><A NAME="_DV_M109"></A><A NAME="_DV_M110"></A><A NAME="_DV_M112"></A><A NAME="_DV_M116"></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><A NAME="_DV_M130"></A><A NAME="_DV_M136"></A><A NAME="_DV_M138"></A><A NAME="_DV_M139"></A><A NAME="_DV_M142"></A><A NAME="_DV_M143"></A><A NAME="_DV_M144"></A><A NAME="_DV_M145"></A><A NAME="_DV_M146"></A><A NAME="_DV_M148"></A><A NAME="_DV_M149"></A><A NAME="_DV_M181"></A><A NAME="_DV_M183"></A><A NAME="_DV_M184"></A><A NAME="_DV_M185"></A><A NAME="_DV_M186"></A><A NAME="_DV_M188"></A><A NAME="_DV_M189"></A><A NAME="_DV_M190"></A><P style="margin:0px" align=justify><BR>
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<A NAME="_DV_M192"></A><P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left">4.</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Miscellaneous</U>.</P>
<A NAME="_DV_M206"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(a)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Notices</U>. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company, to Accelpath, Inc. Attn: President, and (ii) if to Holder, to: the address and fax number indicated on the Signature page hereto. </P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">&nbsp;(b)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Entire Agreement; Assignment</U>. This Exchange Agreement and other documents delivered in connection herewith represent the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties. Neither the Company nor any Holder has relied on any representations not contained or referred to in this Exchange Agreement and the documents delivered herewith. The rights and obligations of each party may be assigned by given written notice of such assignment to the other party.</P>
<A NAME="_DV_M210"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(c)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Counterparts/Execution</U>. This Exchange Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Exchange Agreement may be executed by facsimile signature and delivered by electronic transmission.</P>
<A NAME="_DV_M211"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(d)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Law Governing this Exchange Agreement</U>. This Exchange Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Exchange Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York. The parties to this Exchange Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon <U>forum non conveniens</U>. <B>The parties executing this Exchange Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. </B>The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Exchange Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Exchange Agreement or any other Transaction Document 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 Exchange 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 other manner permitted by law.</P>
<A NAME="_DV_M214"></A><P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(e)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Specific Enforcement, Consent to Jurisdiction</U>. The Company and Holders acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Exchange Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent or cure breaches of the provisions of this Exchange Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. Subject to Section 4(d) hereof, the Company and Holders hereby irrevocably waive, and agree not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction in New York of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(g)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Calendar Days</U>. All references to &#147;days&#148; in the Transaction Documents shall mean calendar days unless otherwise stated. The terms &#147;business days&#148; and &#147;trading days&#148; shall mean days that the New York Stock Exchange is open for trading for three or more hours. Time periods shall be determined as if the relevant action, calculation or time period were occurring in New York City. Any deadline that falls on a non-business day in any of the Transaction Documents shall be automatically extended to the next business day and interest, if any, shall be calculated and payable through such extended period. </P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; float:left">(h)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Captions: Certain Definitions</U>. The captions of the various sections and paragraphs of this Exchange Agreement have been inserted only for the purposes of convenience; such captions are not a part of this Exchange Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any of the provisions of this Exchange Agreement.</P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:144px; width:192px; clear:left; float:left">(i)</P>
<P style="margin:0px; text-indent:-2px" align=justify><U>Severability</U>. In the event that any term or provision of this Exchange Agreement shall be finally determined to be superseded, invalid, illegal or otherwise unenforceable pursuant to applicable law by an authority having jurisdiction and venue, that determination shall not impair or otherwise affect the validity, legality or enforceability: (i) by or before that authority of the remaining terms and provisions of this Exchange Agreement, which shall be enforced as if the unenforceable term or provision were deleted, or (ii) by or before any other authority of any of the terms and provisions of this Exchange Agreement.<A NAME="_DV_M147"></A></P>
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<A NAME="_DV_M220"></A><A NAME="_DV_M221"></A><A NAME="_DV_M222"></A><A NAME="_DV_M223"></A><A NAME="_DV_M224"></A><A NAME="_DV_M225"></A><A NAME="_DV_M226"></A><P style="margin:0px; padding-right:19.2px; text-indent:48px" align=justify>This<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>Exchange Agreement being duly<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>executed<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT>by the undersigned whereupon it shall become a binding agreement between the parties.</P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify><B>Accelpath, Inc.</B></P>
<P style="margin:0px; padding-left:336px; padding-right:19.2px" align=justify>a Delaware corporation</P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify>By: /s/________________________________</P>
<P style="margin:0px; padding-left:336px; padding-right:19.2px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Name: </FONT></P>
<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Title: </FONT></P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify><B>Trillium Partners LP</B></P>
<P style="margin:0px; padding-left:336px; padding-right:19.2px" align=justify>a Delaware limited partnership</P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify>By: /s/_________________________________</P>
<P style="margin:0px; padding-left:336px; padding-right:19.2px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Name: </FONT></P>
<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Title: </FONT></P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify><B>D. C. Brands International, Inc.</B></P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify>By: /s/_________________________________</P>
<P style="margin:0px; padding-left:336px; padding-right:19.2px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Name: </FONT></P>
<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px; font-family:Calibri,Times New Roman; font-size:11pt" align=justify>&nbsp;<FONT style="font-family:Times New Roman; font-size:10pt">Title: </FONT></P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify><B>Martin Ekechukwu</B> </P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify>&nbsp;/s/_________________________________</P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify><B>Curtis Edwards</B></P>
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<P style="margin:0px; padding-left:288px; padding-right:19.2px; text-indent:48px" align=justify>&nbsp;/s/_________________________________</P>
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<A NAME="_DV_M228"></A><A NAME="_DV_M229"></A><A NAME="_DV_M230"></A><P style="margin:0px" align=justify><BR></P>
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<P style="margin:0px" align=center>EXHIBIT A</P>
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<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=223.2 /><TD width=132 /><TD width=126 /></TR>
<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px" align=center><B>Series J Preferred</B></P>
</TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px" align=center><B>Series C Preferred</B></P>
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<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=223.2><P style="margin:0px"><B>Holder</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=132><P style="margin:0px" align=center><B>Stock (Retired)</B></P>
</TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=bottom width=126><P style="margin:0px" align=center><B>Stock (Received)</B></P>
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<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px">Martin Ekechukwu<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
</TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px" align=center>135 Shares</P>
</TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px" align=center>135 Shares</P>
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<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px">Curtis Edwards</P>
</TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px" align=center>150 Shares</P>
</TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px" align=center>150 Shares</P>
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<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px">Trillium Partners LP<FONT style="font-family:Calibri,Times New Roman; font-size:11pt"> </FONT></P>
</TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px" align=center>127.5 Shares</P>
</TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px" align=center>127.5 Shares</P>
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<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px; padding:0px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px" valign=bottom width=223.2><P style="margin:0px">D. C. Brands International, Inc.</P>
</TD><TD style="margin-top:0px" valign=bottom width=132><P style="margin:0px" align=center>112.5 Shares</P>
</TD><TD style="margin-top:0px" valign=bottom width=126><P style="margin:0px" align=center>112.5 Shares</P>
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