<SUBMISSION>
<ACCESSION-NUMBER>0000930413-08-002843
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080429
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20080505
<DATE-OF-FILING-DATE-CHANGE>20080505
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Assured Pharmacy, Inc.
<CIK>0001100592
<ASSIGNED-SIC>5912
<IRS-NUMBER>980233878
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-33165
<FILM-NUMBER>08803622
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>17935 SKY PARK CIRCLE
<STREET2>SUITE F
<CITY>IRVINE
<STATE>CA
<ZIP>92614
<PHONE>949-222-9971
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>17935 SKY PARK CIRCLE
<STREET2>SUITE F
<CITY>IRVINE
<STATE>CA
<ZIP>92614
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ERXSYS INC
<DATE-CHANGED>20030916
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>SURFORAMA COM INC
<DATE-CHANGED>20001128
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c53411_8k.htm
<TEXT>

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<P align="center">
<FONT face="serif">UNITED STATES </FONT><BR>
<FONT face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
<FONT face="serif">WASHINGTON, D.C. 20549 </FONT><BR>
<BR>
<FONT face="serif">FORM 8-K</FONT><BR>
<FONT face="serif">CURRENT REPORT </FONT><BR>
<FONT face="serif">PURSUANT TO SECTION 13 OR 15(D) </FONT><BR>
<FONT face="serif">OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>
<P align="center">
<FONT face="serif">April 29, 2008 </FONT><BR>
<FONT face="serif">--------------------------- </FONT><BR>
<FONT face="serif">Date of Report (Date of earliest event reported)</FONT><BR>
<BR>
<FONT face="serif">ASSURED PHARMACY, INC. </FONT><BR>
<FONT face="serif">----------------------------------------------- </FONT><BR>
<FONT size=2 face="serif">(Exact name of registrant as specified in its charter)</FONT></P>
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<TR valign="bottom">
	<TD width="33%" align=center nowrap>
<FONT face="serif">Nevada</FONT>	</TD>
	<TD width="34%" align=center nowrap>
<FONT face="serif">000-33165</FONT>	</TD>
	<TD width="33%" align=center nowrap>
 &nbsp;<FONT face="serif">98-0233878</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">----------------</FONT>	</TD>
	<TD align=center nowrap>
<FONT face="serif">-----------------</FONT>	</TD>
	<TD align=center nowrap>
 &nbsp;<FONT face="serif">------------------</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=2 face="serif">(State or other jurisdiction</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=2 face="serif">(Commission</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=2 face="serif">(IRS Employer</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap><FONT size=2 face="serif">of incorporation)</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=2 face="serif">File Number)</FONT>	</TD>
	<TD align=center nowrap>
<FONT size=2 face="serif">Identification No.)</FONT>	</TD>
</TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">17935 Sky Park Circle, Suite F, Irvine, CA, 85016</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">---------------------------------------------------------------</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT size=2 face="serif">(Address of principal executive offices)</FONT>	</TD>
</TR>
<TR>
	<TD>&nbsp;	</TD>
</TR>
<TR>
	<TD>&nbsp;	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap><FONT size=2 face="serif">(949) 222-9971</FONT>	</TD>
</TR>
<TR valign="bottom">
	<TD align=center><FONT face="serif">--------------------</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT size=2 face="serif">(Registrant&#146;s telephone number, including area code)</FONT>	</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap><font size=2 face="serif">(Former name or former address,
    if changed since last report.)</font> </TD>
</TR>
</TABLE>
<BR>

<P align="left">
<FONT size=2 face="serif">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: </FONT></P>
<P align="left"><FONT size=2 face="serif">[ ] Written communications pursuant
    to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></P>
<P align="left"><FONT size=2 face="serif">[ ] Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12) </FONT></P>
<P align="left"><FONT size=2 face="serif">[ ] Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d
  -2(b)) </FONT></P>
<P align="left"><FONT size=2 face="serif">[ ] Pre-commencement communications
    pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c)) </FONT></P>
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<P align="left">
<B><FONT face="serif">Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Entry into a Material Definitive Agreement </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On April 29, 2008, the Registrant and certain of its subsidiaries, as joint and several borrowers (collectively, the &#147;</FONT><U><FONT face="serif">Borrowers</FONT></U><FONT face="serif">&#148;),
entered into a Credit Agreement (the &#147;</FONT><U><FONT face="serif">Credit Agreemen</FONT></U><FONT face="serif">t&#148;) with Mosaic Financial Services, LLC (&#147;</FONT><U><FONT face="serif">Mosaic</FONT></U><FONT face="serif">&#148;). Pursuant to the Credit Agreement, Mosaic has agreed to advance up to &#36;2,000,000 (or up to &#36;3,000,000 in certain circumstances) to the Borrowers. Amounts advanced under the Credit
Agreement bear interest at the rate of 14% per annum and are due and payable on April 30, 2009.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Each of the Borrowers has granted Mosaic a security interest in substantially all of its assets (including, in the case of the Registrant, the shares of common stock of each of the subsidiaries party
to the Credit Agreement) as security for the repayment of the obligations of the Borrowers under the Credit Agreement. As of May 1, 2008, Mosaic has advanced the sum of &#36;550,000 to the Borrowers under the Credit Agreement. Mosaic is an affiliate
of Mosaic Capital Advisors and the Mosaic Private Equity family of funds.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Ameet Shah, a director of the
Registrant, is the Managing Partner of Mosaic Capital Advisors and the Mosaic
Private Equity family of funds. The Mosaic funds hold 18% convertible debentures
in the  aggregate principal amount of &#36;1,733,500. These debentures are convertible
into an aggregate of 4,333,750 shares of common stock of the Registrant. In addition,
these funds hold 5,993,731 outstanding shares of common stock of the Registrant
and warrants to purchase an aggregate of 5,958,750 shares of common stock of
the Registrant. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A copy of the Credit Agreement is attached as an exhibit to this Current Report.</FONT></P>
<P align="left">
<B><FONT face="serif">Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits</FONT></B></P>
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<TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
	<TD width="3%" valign=top nowrap>
<FONT face="serif">a)</FONT></TD>
	<TD colspan="2">
<P align="left"><FONT face="serif">Not applicable.</FONT></P>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">b)</FONT></TD>
	<TD colspan="2">
<P align="left"><FONT face="serif">Not applicable.</FONT></P>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">c)</FONT></TD>
	<TD colspan="2">
<P align="left"><FONT face="serif">Exhibits</FONT></P>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD width=5%><font face="serif">99.1.</font></TD>
  <TD width=89%><font face="serif">Credit Agreement, dated as of April 29, 2008,
    between the Registrant and Mosaic Financial Services, LLC</font></TD>
</TR>
</TABLE>
<P align="center"><FONT face="sans-serif"> </FONT></P>

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<P align="center">
<FONT face="serif">SIGNATURE</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Dated: May 5, 2008</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;</TD>
    <TD colspan=3 align=left nowrap><b><font face="serif">ASSURED PHARMACY, INC.</font></b></TD>
  </TR>
<TR>
	<TD colspan=4>&nbsp;	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;	</TD>
</TR>
<TR valign="bottom">
  <TD width=62% align=left nowrap>&nbsp;</TD>
  <TD width=5% align=left nowrap>&nbsp;</TD>
	<TD width=4% align=left nowrap><FONT face="serif">By:</FONT>	</TD>
	<TD width=29% align=left nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">/s/
	    Robert DelVecchio</FONT> </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap><FONT face="serif">Name:&nbsp;&nbsp;</FONT>	</TD>
	<TD align=left nowrap>
<FONT face="serif">Robert DelVecchio</FONT>	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap><FONT face="serif">Title:</FONT>	</TD>
	<TD align=left nowrap>
<FONT face="serif">Chief Executive Officer</FONT>	</TD>
</TR>
</TABLE>
<p><br>
  <BR>
</p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>c53411_ex99-1.htm
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<P align="right">
<FONT face="serif">Ex-99.1</FONT></P>

<P align="center">
<B><U><FONT face="serif">CREDIT AGREEMENT</FONT></U></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">THIS CREDIT AGREEMENT</FONT></B><FONT face="serif"> (the &#147;</FONT><B><U><FONT face="serif">Credit Agreement</FONT></U></B><FONT face="serif">&#148;) is made and effective as of April 29, 2008,
by and between Assured Pharmacy, Inc. (&#147;</FONT><B><U><FONT face="serif">APHY</FONT></U></B><FONT face="serif">&#148;) and each direct and indirect Subsidiary of APHY (which are listed on </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif"> hereto) (as more fully defined in </FONT><U><FONT face="serif">Article 7</FONT></U><FONT face="serif"> hereof, APHY and each such Subsidiary are sometimes referred to herein individually as a &#147;</FONT><B><U><FONT face="serif">Borrowers</FONT></U></B><FONT face="serif">&#148; and collectively as the &#147;</FONT><B><U><FONT face="serif">Borrowers</FONT></U></B><FONT face="serif">&#148;), and Mosaic Financial Services, LLC, a Delaware limited liability company
(&#147;</FONT><B><U><FONT face="serif">MFS</FONT></U></B><FONT face="serif">&#148;), having an office at 545 Fifth Avenue, Suite 1109, New York, NY 10017. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">NOW, THEREFORE, </FONT></B><FONT face="serif">in consideration of the foregoing and the covenants and agreements contained herein, and other good and valuable consideration, receipt and sufficiency
of which are hereby acknowledged, and intending to be legally bound hereby, the Borrowers (jointly and severally) and MFS hereby agree as follows:</FONT></P>
<P align="center">
<FONT face="serif">ARTICLE I </FONT><BR>
<FONT face="serif">AMOUNT AND TERMS OF THE CREDIT FACILITY</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.1.&nbsp; </FONT></B><B><U><FONT face="serif">The Credit Facility</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Subject to the terms and conditions hereof, MFS agrees to make loans
to Borrowers on a secured basis (the &#147;</FONT><B><U><FONT face="serif">Credit Facility</FONT></U></B><FONT face="serif">&#148;) in the amount of up to Two Million Dollars (&#36;2,000,000) (as it may be increased or adjusted as provided herein,
the &#147;</FONT><B><U><FONT face="serif">Credit Commitment</FONT></U></B><FONT face="serif">&#148;). MFS will use all commercially reasonable efforts to raise additional capital, on terms acceptable to MFS in its sole discretion, to permit MFS to
increase the Credit Commitment to an aggregate amount of &#36;3,000,000 on or before July 1, 2008 (the &#147;</FONT><B><U><FONT face="serif">Credit Commitment Increase</FONT></U></B><FONT face="serif">&#148;). MFS agrees, subject to the terms and
conditions contained in this Credit Agreement, to make loans to the Borrowers on the dates (each, a &#147;</FONT><B><U><FONT face="serif">Funding Date</FONT></U></B><FONT face="serif">,&#148; and collectively, the &#147;</FONT><B><U><FONT face="serif">Funding Dates</FONT></U></B><FONT face="serif">&#148;) and in the principal amounts set forth below (each, an &#147;</FONT><B><U><FONT face="serif">Advance</FONT></U></B><FONT face="serif">,&#148; and, collectively, the
&#147;</FONT><B><U><FONT face="serif">Advances</FONT></U></B><FONT face="serif">&#148;): </FONT></P>
<div style="margin-left:20px">
  <table width="50%" border=0 cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td width=74% align=left style="border-bottom:1px solid #000000;"><b><font face="serif">Funding
            Date</font></b> </td>
      <td width="20%" align=left style="border-bottom:1px solid #000000;"><b><font face="serif">Advance</font></b> </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td width="20%" align=left>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width=74% align=left><font face="serif">Closing Date</font> </td>
      <td width="20%" align=left><font face="serif">&#36;550,000.00</font> </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td width="20%" align=left>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width=74% align=left><font face="serif">May 13, 2008</font> </td>
      <td width="20%" align=left><font face="serif">&#36;450,000.00</font> </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td width="20%" align=left>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width=74% align=left><font face="serif">June 2, 2008</font> </td>
      <td width="20%" align=left><font face="serif">&#36;1,000,000.00</font> </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td width="20%" align=left>&nbsp;</td>
    </tr>
    <tr valign="bottom">
      <td width=74% align=left><font face="serif">July 1, 2008*</font> </td>
      <td width="20%" align=left><font face="serif">&#36;1,000,000.00*</font> </td>
    </tr>
  </table>
</div>
<BR>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">* Subject to the terms and provisions of this Credit Agreement and if and only if the Credit Commitment Increase has previously occurred, as set forth above, and MFS has sufficient capital to fund
such Advance. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.2.  </FONT></B><B><U><FONT face="serif">Facility Maturity</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Credit Facility will mature on April 30, 2009 (as such date may be
further extended from time to time in MFS&#146; sole and absolute discretion, the &#147;</FONT><B><U><FONT face="serif">Maturity Date</FONT></U></B><FONT face="serif">&#148;)). </FONT></P>

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<P align="justify">
<FONT face="serif">The entire aggregate outstanding indebtedness under the Credit Facility (including all principal, interest, fees and expenses) will be due and payable in its entirety in immediately available funds upon any earlier termination of
either the Credit Facility or this Credit Agreement. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.3. </FONT></B><B><U><FONT face="serif">Term Note</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  The indebtedness under the Credit Facility and the corresponding obligation
of Borrowers (jointly and severally)</FONT><FONT size=2 face="serif"> </FONT><FONT face="serif">to repay MFS with interest in accordance with the terms hereof will be evidenced by a Note (as amended, restated, replaced, supplemented, extended or
renewed hereafter, the &#147;</FONT><B><U><FONT face="serif">Note</FONT></U></B><FONT face="serif">&#148;) payable to the order of MFS. The Note will be due and payable in full on the Maturity Date. The stated principal amount of the Note will be
the Credit Commitment established as of the Closing Date pursuant to </FONT><U><FONT face="serif">Section 1.1</FONT></U><FONT face="serif"> hereof; </FONT><U><FONT face="serif">provided</FONT></U><FONT face="serif">, </FONT><U><FONT face="serif">however</FONT></U><FONT face="serif">, that the maximum liability under such Note will be limited at all times to the actual amount of indebtedness (including principal, interest, fees and expenses) then outstanding under the Credit
Facility. MFS is authorized to note or endorse the date and amount of each Advance and payment under the Credit Facility on a schedule annexed to and constituting a part of the Note. Such notations or endorsements, if made, will constitute
</FONT><U><FONT face="serif">prima</FONT></U><FONT face="serif"> </FONT><U><FONT face="serif">facie </FONT></U><FONT face="serif">evidence of the information noted or endorsed on such schedule, but the absence of any such notation or endorsement
will not limit or otherwise affect the obligations and liabilities of any Borrower thereunder or hereunder.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.4. </FONT></B><B><U><FONT face="serif">Interest Rate</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The interest rate on the Note shall be fourteen percent (14%) (the
</FONT><B><FONT face="serif">&#147;</FONT></B><B><U><FONT face="serif">Interest Rate</FONT></U></B><B><FONT face="serif">&#148;</FONT></B><FONT face="serif">). Borrowers agree to pay MFS all accrued interest, in arrears, on the last business day of
each month on all outstanding amounts under the Credit Facility. Interest under the Credit Facility will be calculated, accrued, imposed and payable on the basis of a 365-day year for the actual number of days elapsed. Interest will begin to accrue
on the outstanding principal amount of the Credit Facility (and on any other amounts advanced to or on behalf of Borrowers under the Loan Documents) on and as of the date such funds are advanced. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.5. </FONT></B><B><U><FONT face="serif">Application of Payments</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">All payments and other funds received by MFS hereunder will be
applied by MFS in the following order: (a) first to the payment of any fees and charges due under the Loan Documents, and (b) then to any obligations for the payment of expenses due under the Loan Documents, and (c) then to the payment of interest
due and owing hereunder, and (d) then to the principal indebtedness due and owing under the Credit Facility, and (e) then to any other interest accrued hereunder, and (f) then to any other indebtedness of any Borrower to MFS.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.6. </FONT></B><B><U><FONT face="serif">Manner and Disbursement of Borrowing</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Subject to the terms and conditions of this Credit
Agreement, MFS shall disburse the proceeds of each Advance to APHY in immediately available funds on each Funding Date.</FONT></P>
<P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.7. </FONT></B><B><U><FONT face="serif">Prepayment</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The outstanding principal balance under the Credit Facility may be prepaid in whole or in part at any time
without premium or penalty; </FONT><U><FONT face="serif">provided</FONT></U><FONT face="serif">, </FONT><U><FONT face="serif">however</FONT></U><FONT face="serif">, that if any portion of the Credit Facility is repaid prior to the date which is six
(6) months from the Closing Date, a prepayment fee equal to six (6) months interest on the principal amount prepaid, at the Interest Rate, shall be paid by the Company to MFS at the time of such prepayment.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.8. </FONT></B><B><U><FONT face="serif">Payment on Non-Business Days</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> Whenever any payment to be made hereunder or under the
Note shall be stated to be due on a Saturday, Sunday or a public holiday under the laws of the State of New York, such payment may be made on the next succeeding business day, and such</FONT></P>
<P align="center">
<FONT face="serif">2</FONT></P>

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<FONT face="serif">extension of time shall in such case be included in the computation of payment of interest hereunder or under the Note. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.9. </FONT></B><B><U><FONT face="serif">Use of Proceeds</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Borrowers shall use the funds advanced under this Credit Facility for working capital needs and
general corporate purposes; </FONT><U><FONT face="serif">provided</FONT></U><FONT face="serif">, </FONT><U><FONT face="serif">however</FONT></U><FONT face="serif">, that the funds advanced under this Credit Facility shall not be used to pay off
indebtedness to any Person other than MFS existing as of the Closing Date.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">1.10. </FONT></B><B><U><FONT face="serif">Commitment Fees</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  On each Funding Date, MFS shall receive in immediately available funds
a Commitment Fee in an amount equal to three percent (3%) of the Advance loaned to Borrowers hereunder on such Funding Date. </FONT></P>
<P align="center">
<FONT face="serif">ARTICLE II </FONT><BR>
<FONT face="serif">CONDITIONS OF LENDING</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">2.1. </FONT></B><B><U><FONT face="serif">Closing Conditions</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif"> The obligation of MFS to execute and perform the Loan Documents, to
establish the Credit Facility and to fund any Advance are subject to the conditions precedent that MFS shall have received on or before the Closing Date, in form and substance satisfactory to MFS and its counsel, Rich May, a Professional
Corporation:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) A duly authorized and executed Note in the form attached hereto as </FONT><U><FONT face="serif">Exhibit A</FONT></U><FONT face="serif">; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) A duly authorized and executed pledge and security agreement in the form attached hereto as </FONT><U><FONT face="serif">Exhibit B</FONT></U><FONT face="serif"> (the &#147;</FONT><B><U><FONT face="serif">Security Agreement</FONT></U></B><FONT face="serif">&#148;); </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) A duly authorized and executed security agreement from the Subsidiaries in the form attached hereto as </FONT><U><FONT face="serif">Exhibit C</FONT></U><FONT face="serif"> (collectively, the
&#147;</FONT><B><U><FONT face="serif">Subsidiary Security Agreements</FONT></U></B><FONT face="serif">&#148;); </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d) Copies of all documents evidencing necessary corporate action with respect to this Credit Agreement, the Note, and the Collateral Security Documents certified, as of the Closing Date, by an
authorized person; </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e) Waivers and consents of third parties with respect to the Loan Documents and the transactions contemplated thereby; </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f) Evidence that the conditions set forth in </FONT><U><FONT face="serif">Section 2.2(a) &#150; (e)</FONT></U><FONT face="serif"> have been satisfied; and </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g) Such other documents as MFS shall determine to be necessary or appropriate.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">2.2. </FONT></B><B><U><FONT face="serif">Conditions for Advances</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The obligation of MFS to fund any Advance under the Credit
Facility is subject to the following conditions precedent (unless and except to the extent expressly waived by MFS in its sole and absolute discretion): </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) </FONT><U><FONT face="serif">Documents</FONT></U><FONT face="serif">. MFS must have received any additional documents, certificates and</FONT></P>
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<FONT face="serif">3</FONT></P>

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<FONT face="serif">opinions as MFS or its counsel may reasonably request, including without limitation, UCC-1 financing statements, fixture filings and leasehold mortgages regarding new locations for other assets of any Borrower</FONT><FONT size=2 face="serif"> </FONT><FONT face="serif">and evidence that, where applicable, such documents or certificates have been duly recorded or filed in the appropriate public office.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (b) </FONT><U><FONT face="serif">Fees and Expenses</FONT></U><FONT face="serif">. Borrowers must have paid (or made acceptable arrangements with MFS to pay) all fees, costs, expenses and taxes due and payable hereunder,
including, without limitation, all reasonable costs and expenses incurred in connection with or as a result of reviewing and funding such Advance. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (c) </FONT><U><FONT face="serif">Representations</FONT></U><FONT face="serif">. Each, and all, representations and warranties contained in the Loan Documents (including those in Article III hereof) and in each other certificate
or other writing delivered to MFS pursuant hereto or thereto on or prior to the Funding Date must be true, correct and complete in all material respects on and as of the Funding Date, except for such deviations disclosed in writing and acceptable to
MFS (which disclosure will not constitute MFS&#146; waiver or acceptance thereof). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (d) </FONT><U><FONT face="serif">No Default</FONT></U><FONT face="serif">. There must not be any Event of Default hereunder or any default under any other Loan Document on the Funding Date, and there must not be any such default
occurring as a result of funding such Advance, except for such defaults disclosed in writing and acceptable to MFS (which disclosure will not constitute MFS&#146; waiver or acceptance thereof). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (e) </FONT><U><FONT face="serif">No Violations</FONT></U><FONT face="serif">. The funding of such Advance must not contravene any law, rule or regulation applicable to any Borrower or to MFS on the Funding Date. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> (f) </FONT><U><FONT face="serif">No Material Change</FONT></U><FONT face="serif">. There must not have been (in MFS&#146; reasonable opinion) any Material Adverse Change between the Closing Date and the Funding Date.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> </FONT><B><FONT face="serif">2.3. </FONT></B><B><U><FONT face="serif">Obligation to Advance</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">MFS will not be obligated to make any Advance under the following
circumstances: (a) during the existence of an Event of Default hereunder, or (b) if such Advance would cause an Event of Default hereunder, or (c) after the Maturity Date. </FONT></P>
<P align="center">
<FONT face="serif">ARTICLE III </FONT><BR>
<FONT face="serif">REPRESENTATIONS AND WARRANTIES</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">3.1 </FONT></B><B><U><FONT face="serif">Representations and Warranties Concerning Receivables</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> (a) To induce MFS to make Advances
to the Borrowers secured by Receivables of the Borrowers, and with full knowledge that the truth and accuracy of the following are being relied upon by MFS in determining whether to accept Receivables of the Borrowers as Collateral, the Borrowers
represent, warrant, covenant and agree, jointly and severally, with respect to each Receivable, that, subject to any Permitted Liens: </FONT></P>
<div style="margin-left:30px"><P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) The Borrowers are the absolute owners of each Receivable and have full legal right to sell, transfer and assign such Receivable; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii) The payment of each Receivable is not contingent upon the fulfillment of any </FONT></P></div>

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<FONT face="serif">4</FONT></P>

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<FONT face="serif">obligation or contract, past or future and any and all obligations required of the Borrowers, have been fulfilled as of the date of the rendering of the services giving rise to the Receivable; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(iii) Each Receivable is based on an actual sale and delivery of goods and/or services actually rendered, is presently due and owing to the Borrowers, is not past due or in default, has not been
previously sold, assigned, transferred, or pledged, and except for the Permitted Liens is free of any and all liens, security interests and encumbrances other than liens, security interests or encumbrances in favor of MFS; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(iv) There are no defenses, offsets, or counterclaims against any Receivable, and no agreement has been made under which any account debtor may claim any deduction or discount, except as otherwise
disclosed by the Borrowers to MFS in writing; and </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(v) To the best knowledge of the Borrowers, each account debtor of a Receivable is solvent as that term is defined in the United States Bankruptcy Code and the New York Uniform Commercial Code, and no
such account debtor has filed or had filed against it a voluntary or involuntary petition for relief under the United States Bankruptcy Code. </FONT></P></div>

<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">3.2. </FONT></B><B><U><FONT face="serif">Representations and Warranties of the Borrowers</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Each Borrower, as of the Closing Date and the Funding Date for each
Advance hereunder, hereby (jointly and severally) represents and warrants as follows: </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) Each Borrower (i) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and (ii) has all requisite power and authority (corporate,
partnership, LLC and otherwise) to own its properties and to conduct its business as now conducted and as currently proposed to be conducted, and (iii) is duly qualified to conduct business as a foreign organization and is currently in good standing
in each state and jurisdiction in which it conducts business and where the failure to do so could reasonably be expected to cause a Material Adverse Change. Each state and jurisdiction in which any Borrower is organized or is (or should be)
qualified to conduct business is listed on </FONT><U><FONT face="serif">Schedule 3.2(a)</FONT></U><FONT face="serif"> hereto. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b)  The execution, delivery and performance by the Borrowers of the Loan Documents have been duly authorized by all necessary action and do not and will not (i) require any consent or approval of the
directors, managers, stockholders, partners or members of the Borrowers which has not been obtained, or (ii) violate any provision of the Organic Documents of any Borrower. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c)  The execution, delivery and performance by the Borrowers of the Loan Documents do not and will not (i) violate any provision of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award presently in effect having applicability to any Borrower, (ii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which any
Borrower is a party or by which any Borrower or any Borrower&#146;s properties may be bound or affected, or (iii) except as may be provided by the Loan Documents, result in the creation or imposition of any pledge, lien, security interest, mortgage,
charge or encumbrance of any nature whatsoever (each, a &#147;</FONT><B><U><FONT face="serif">Lien</FONT></U></B><FONT face="serif">&#148;) on any Collateral or properties of </FONT></P>
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<FONT face="serif">5</FONT></P>

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<FONT face="serif">any Borrower. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d)  The Loan Documents are legal and binding obligations of the Borrowers enforceable in accordance with their respective terms (subject to bankruptcy and similar laws of general application
affecting the rights and remedies of creditors). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e)  No Borrower is in material default under any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or any indenture, agreement, lease or instrument by which it
is bound. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f)  No authorization, consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or
foreign, is or will be necessary to the valid execution, delivery or performance by the Borrowers of the Loan Documents except for the perfection of liens granted under the Collateral Security Documents.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g)  </FONT><U><FONT face="serif">Schedule 3.2(g)</FONT></U><FONT face="serif"> hereto accurately and completely discloses (i) the number of shares and classes of equity ownership rights and interests
of each Borrower (other than APHY) (whether existing as common or preferred stock, general or limited partnership interests, or LLC membership interests, or warrants, options or other instruments convertible into such equity), and (ii) the ownership
thereof. All such shares and interests that are issued and outstanding are validly existing, fully paid and non-assessable. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(h)  </FONT><U><FONT face="serif">Schedule 3.2(h)</FONT></U><FONT face="serif"> hereto accurately and completely discloses (a) each Subsidiary and Affiliate of each Borrower (other than its officers
and directors) and (b) each investment in or loan to any other Person by any Borrower. No Subsidiary that is not a Borrower is an active operating company or owns any material assets. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) All financial statements previously furnished to MFS concerning the financial condition and operations of any one or more Borrowers (i) have been prepared in accordance with GAAP consistently applied, and (ii) fairly present
the financial condition of the organization covered thereby as of the dates and for the periods covered thereby, and (iii) disclose all material liabilities (contingent and otherwise) of each Borrower.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(j) </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereto (a) accurately and completely discloses each material contract of each Borrower, and (b) also indicates the following information with respect
to each such contract or agreement: (1) the contract parties thereunder, and (2) the contract term and any options or renewals thereto, and (3) the monthly payment required thereunder, and (4) any restrictions on assignments, and (5) the existence
of any breaches or defaults thereunder. No Borrower has committed any unwaived material breach or default under any material contract (whether or not listed on </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereto), and
after due inquiry and investigation, no Borrower has any knowledge or reason to believe that any other party to any such material contract (whether or not listed on </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereto)
has or might have committed any unwaived breach or default thereof. For purposes of this </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereof, a &#147;</FONT><B><U><FONT face="serif">material contract</FONT></U></B><FONT face="serif">&#148; of a Borrower includes the following types of agreements to which a Borrower is a party: (1) any contract either with annual compensation, consideration or payments in excess of</FONT></P>
<P align="center">
<FONT face="serif">6 </FONT></P>

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<FONT face="serif">&#36;50,000 or with aggregate compensation, consideration or payments in excess of &#36;50,000, and (2) any lease of real estate or office space from which a Borrower conducts its primary business operations, and (3) any other
agreement or contract the loss or breach of which could cause a Material Adverse Change. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(k) Each Borrower possesses all Licenses necessary or required in the conduct of its businesses and/or the operation of its properties. Each License is valid, binding and enforceable on, against and by such Borrower.  Each
License is subsisting without any defaults thereunder or enforceable adverse limitations thereon, and no License is subject to any proceedings or claims opposing the issuance, renewal, development or use thereof or contesting the validity thereof.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(l) There are no actions, suits or proceedings pending or, to the knowledge of any Borrower, threatened against or affecting any Borrower or any properties or assets of any Borrower before any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, which, if determined adversely to any Borrower would cause a Material Adverse Change. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(m) No Borrower is bankrupt or insolvent and each Borrower is able to pay its debts as and when they become due. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(n) No Borrower is a party to any indenture, loan or credit agreement or any lease or other agreement or instrument or subject to any restriction of any kind which would cause a Material Adverse Change, except for the Permitted
Liens. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(o) Each Borrower has filed all tax returns (Federal, state and local) required to be filed and paid all taxes shown thereon to be due, including interest and penalties, or provided adequate reserves for payment thereof.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(p) Each Borrower has good and marketable title to all of its real and personal properties and assets, free and clear of any Liens, except the security interests and liens in favor of MFS established by the Collateral Security
Documents and the Permitted Liens. </FONT><U><FONT face="serif">Schedule 3.2(p)(i)</FONT></U><FONT face="serif"> hereto lists each trademark, service mark, copyright, patent, database, customized application software and systems integration
software, trade secret and other intellectual property owned, licensed, leased, controlled or applied for by any Borrower, together with relevant identifying information with respect to such intellectual property describing, among other things, the
date of creation and the method of protection against adverse claims. </FONT><U><FONT face="serif">Schedule 3.2(p)(ii)</FONT></U><FONT face="serif"> hereto lists each real property interest owned, leased or otherwise used by any Borrower, together
with relevant identifying information describing, among other things, the location and use of each such real property interest, whether such interest is owned or leased, and the estimated appraised value thereof. Each such property and asset is in
good order and repair (ordinary wear and tear excepted) and is fully covered by the insurance required under </FONT><U><FONT face="serif">Section 4.1(f)</FONT></U><FONT face="serif"> hereof. Each such property and asset owned by any Borrower is
titled in the current legal name of such Borrower. </FONT><U><FONT face="serif">Schedule 3.2(p)(iii)</FONT></U><FONT face="serif"> hereto identifies each legal, operating and trade name that any Borrower has used (or permitted the filing of a UCC
financing statement under) at any time during the twelve (12) consecutive calendar years immediately preceding the Closing Date. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(q) All written information contained in any application, schedule, report, certificate, or any</FONT></P>
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<FONT face="serif">7 </FONT></P>

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<FONT face="serif">other document furnished to MFS by any Borrower or any other Person (on behalf of any Borrower) in connection with the Loan Documents is in all material respects true, accurate and complete, and no such Person (including
Borrowers) has omitted to state therein (or failed to include in any such document) any material fact or any fact necessary to make such information not misleading. All written projections furnished to MFS by any Borrower or any other Person on
behalf of any Borrower have been prepared with a reasonable basis and in good faith, making use of such information as was available at the date such projection was made. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(r) Each Borrower is in compliance in all material respects with all material laws, rules, regulations, administrative orders and judicial decrees (federal, state, local and otherwise) applicable to it, its operations and its
properties. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(s) Each Borrower is in compliance in all material respects with all applicable provisions of the Employee Retirement Income Security Act of 1974, as amended (&#147;</FONT><B><U><FONT face="serif">ERISA</FONT></U></B><FONT face="serif">&#148;), and all rules, regulations and orders implementing ERISA. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(t) Neither the execution and delivery of the Loan Documents, the acquisition of the Note by MFS nor the making of Advances by MFS nor the consummation of any other transactions contemplated by the Loan Documents will subject MFS
to any claim for a brokerage commission, finder&#146;s fee or like charge. </FONT></P>
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<FONT face="serif">ARTICLE IV </FONT><BR>
<FONT face="serif">COVENANTS OF THE BORROWERS</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">4.1. </FONT></B><B><U><FONT face="serif">Affirmative Covenants of the Borrowers Other than Reporting Requirements</FONT></U></B><FONT face="serif">. Each Borrower (jointly and severally) hereby covenants and agrees that, so long as any indebtedness remains outstanding hereunder, each Borrower will comply with the following affirmative covenants:</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) </FONT><U><FONT face="serif">Submission of Unbilled Receivables</FONT></U><FONT face="serif">. Prepare and submit to the appropriate Account Debtor for payment in a timely manner invoices
representing unbilled Receivables, or any other substitute Collateral pursuant to the Collateral Security Documents, and make all reasonable business efforts to receive timely and full payment thereof. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) </FONT><U><FONT face="serif">No Modification to Collateral</FONT></U><FONT face="serif">. The Borrowers shall not change or modify the terms of any Collateral (including, without limitation,
extending the payment term thereof) without the prior written consent of MFS. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) </FONT><U><FONT face="serif">Compliance with Terms and Provisions</FONT></U><FONT face="serif">. All Collateral acquired by the Borrowers hereafter shall comply with each and every one of the
foregoing representations, warranties, covenants and agreements referred to above in </FONT><U><FONT face="serif">Section 3.1</FONT></U><FONT face="serif"> and this </FONT><U><FONT face="serif">Section 4.1</FONT></U><FONT face="serif">. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d) </FONT><U><FONT face="serif">Payment of Taxes</FONT></U><FONT face="serif">. Pay and discharge all taxes, assessments and governmental charges or levies imposed upon any Borrower or upon any
Borrower&#146;s income or profits, or upon any Collateral or properties belonging to any Borrower, prior to the date on which penalties attach thereto, and all lawful claims which, if unpaid, might become a lien or charge upon any
Borrower&#146;s</FONT></P>
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<FONT face="serif">8</FONT></P>

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<FONT face="serif">properties or Collateral provided that the Borrowers shall not be required to pay any such tax, assessment, charge, levy or claim which is being contested in good faith and by proper proceedings and as to which Borrowers shall
have set aside adequate reserves in accordance with GAAP. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e) </FONT><U><FONT face="serif">Existence and Assets</FONT></U><FONT face="serif">. Do or cause to be done all things necessary to preserve, renew and keep in full force and effect its corporate or
limited liability existence, if applicable, and each Borrower&#146;s rights, licenses, patents, copyrights, trademarks, trade names, permits and franchises and comply with all applicable laws and regulations; at all times maintain, preserve and
protect each Borrower&#146;s franchises and trade names and preserve all the remainder of the Borrowers&#146; Collateral and property used or useful in the conduct of the Borrowers&#146; businesses and keep the same in good repair, working order and
condition, and from time to time, make, or cause to be made, all needful and proper repairs, renewals, replacements, betterments and improvements thereto, so that the business carried on in connection therewith may be properly and advantageously
conducted at all times. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f)  </FONT><U><FONT face="serif">Insurance</FONT></U><FONT face="serif">. Maintain, and as of the date hereof have in effect, such policies of motor vehicle, property, casualty, workers&#146;
compensation, general liability, directors and officers and other insurance, including, without limitation, group insurance and other life, health, disability or other insurance for the benefit of employees or their dependents or both as are
required by law or any contract to which it is a party and are adequate and appropriate with respect to the Business.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g) </FONT><U><FONT face="serif">Compliance with Laws</FONT></U><FONT face="serif">. Comply with the requirements of all present and future applicable laws, rules, regulations and orders of any
governmental authority, the non-compliance with which would cause a Material Adverse Change. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(h) </FONT><U><FONT face="serif">Visitation Rights</FONT></U><FONT face="serif">. At any reasonable time and from time to time, permit MFS or any agents or representatives thereof, to examine and make
copies of and abstracts from the records and books of account of, and visit the properties of the Borrowers and to discuss the affairs, finances and accounts of the Borrowers with senior management. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) </FONT><U><FONT face="serif">Keeping of Records and Books of Account</FONT></U><FONT face="serif">. Keep adequate records and books of account, in which complete entries will be made in accordance
with GAAP consistently applied, reflecting all financial transactions of the Borrowers. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(j) </FONT><U><FONT face="serif">Notice of Proceedings</FONT></U><FONT face="serif">. Give prompt written notice to MFS of any proceedings instituted against any Borrower in or before any Federal or
state court or by any regulatory body, which if adversely determined, would cause a Material Adverse Change. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(k) </FONT><U><FONT face="serif">Obligations</FONT></U><FONT face="serif">.  Pay and perform each Borrower&#146;s obligations set forth under any instruments or agreements to which any Borrower is a
party in accordance with the terms thereof.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(l) Each Borrower (a) will notify MFS in writing within 90 calendar days after executing, entering into, becoming bound by or subject to or otherwise obtaining any contract, agreement, or License that should have been listed on
</FONT><U><FONT face="serif">Schedule 3.2(p)(i), (ii) or (iii)</FONT></U><FONT face="serif"> hereto or </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereto if it had existed as of the Closing Date, and (b) will
concurrently update </FONT><U><FONT face="serif">Schedule 3.2(p)(i), (ii) or (iii)</FONT></U></P>
<P align="center">
<FONT face="serif">9</FONT></P>

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<FONT face="serif">hereto or </FONT><U><FONT face="serif">Schedule 3.2(j)</FONT></U><FONT face="serif"> hereto (as appropriate).</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">4.2. </FONT></B><B><U><FONT face="serif">Negative Covenants of the Borrowers</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">From the date hereof and thereafter for so long as
the Borrowers are indebted to MFS, the Borrowers will not, without the prior written consent of MFS: </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) </FONT><U><FONT face="serif">Liens</FONT></U><FONT face="serif">. Create, incur, assume or suffer to exist any Lien (including the lien or retained security title of a conditional vendor) of any
nature, upon or with respect to any property or assets (real or personal, tangible or intangible) of any Borrower, except for MFS&#146; liens and the Permitted Liens, or assign or otherwise convey any right to receive income from the Collateral,
except: </FONT></P>
<div style="margin-left:20px"><P align="justify">
<FONT face="serif">(i) for taxes not yet due or being contested in good faith and by appropriate proceedings by the Borrowers; </FONT></P>
<P align="justify">
<FONT face="serif">(ii) imposed by law, such as carriers&#146;, warehousemen&#146;s and mechanics&#146; liens and other similar liens incurred by the Borrowers in good faith and in the ordinary course of business; </FONT></P>
<P align="justify">
<FONT face="serif">(iii) in connection with workmen&#146;s compensation, unemployment insurance or other social security obligations. </FONT></P></div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) </FONT><U><FONT face="serif">Assumptions, Guaranties of Indebtedness of Other Persons</FONT></U><FONT face="serif">. Assume, guarantee, endorse or otherwise become directly or contingently liable
(including, without limitation, liable by way of agreement, contingent or otherwise) in connection with any obligation or indebtedness of any other Person, except as permitted by this Credit Agreement and except for guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of business. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) </FONT><U><FONT face="serif">Mergers; Acquisitions and Sales</FONT></U><FONT face="serif">. Dissolve, liquidate, merge, consolidate with or otherwise acquire all or substantially all of the assets
of any other Person or any equity interest (common stock, preferred stock, partnership interests, membership interests or otherwise) in any other Person, or sell, assign, lease or otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of any Borrower&#146;s assets (whether now owned or hereafter acquired) to any other Person. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d) </FONT><U><FONT face="serif">Sales of Collateral</FONT></U><FONT face="serif">.  Sell, assign, lease or otherwise dispose of (whether in one transaction or in a series of transactions) any of the
Collateral, unless any such Collateral is replaced with like Collateral of equal or greater value. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e) </FONT><U><FONT face="serif">Investment in Other Persons</FONT></U><FONT face="serif">. Make any loan, or advance to any Person; or make any investment in or acquisition of any securities or
ownership interest of any other Person or entity other than investments in readily marketable short-term obligations of the United States. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f) </FONT><U><FONT face="serif">Change in Nature of Business</FONT></U><FONT face="serif">.  Make any material change in the nature of the Borrowers&#146; business (the &#147;</FONT><B><U><FONT face="serif">Business</FONT></U></B><FONT face="serif">&#148;) as carried on at the date hereof. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g) </FONT><U><FONT face="serif">Indebtedness; Permitted Liens</FONT></U><FONT face="serif">. (i) Incur, create, become or be liable in any manner with respect to or permit to exist new indebtedness
to Persons other than MFS except for accounts payable incurred by the Borrowers in the ordinary course of business upon customary trade terms, or (ii) increase the maximum amount of indebtedness that is secured by the Permitted Liens, or (iii) incur
additional indebtedness after the date hereof secured by or advanced against the property or assets (real or personal, tangible or intangible) of any Borrower. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(h) </FONT><U><FONT face="serif">Dividends; Purchase of Stock</FONT></U><FONT face="serif">.  Declare or pay any dividends, or make any distribution of cash, equity interests (common stock, preferred
stock, partnership interests, membership interests or otherwise) or other property, to holders of any Borrower&#146;s equity interests, or directly or indirectly, redeem, purchase or otherwise acquire for a consideration, any equity interests of any
Borrower. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) </FONT><U><FONT face="serif">Sale of Intangibles</FONT></U><FONT face="serif">. Sell, assign, discount or dispose in any way of any Receivables, promissory notes or trade acceptances held by the
Borrowers, with or without recourse, except for collection (including endorsements) in the ordinary course of business. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(j) </FONT><U><FONT face="serif">Transactions with Affiliates</FONT></U><FONT face="serif">. Except as may be specifically permitted by this Credit Agreement, enter into any transaction or agreement
with any Subsidiary, Affiliate or other related enterprise except as follows: (a) reasonable and customary compensation arrangements in the ordinary course of business with its officers and directors, and (b) reasonable and customary asset transfers
among Borrowers to the extent permitted under this Credit Agreement. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(k) </FONT><U><FONT face="serif">Right to Participate in Purchase of Additional Equity</FONT></U><FONT face="serif">.</FONT></P>


<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) Without first complying with the provisions of subsection (k)(ii) and (iii) below, permit the issuance (or reissuance) of any equity interests (common stock, preferred stock, partnership
interests, member interests or otherwise) or any options, warrants, convertible securities or other rights to purchase such beneficial or equity interest (the &#147;</FONT><B><U><FONT face="serif">Offered Securities</FONT></U></B><FONT face="serif">&#148;), except to the extent provided under option plans and employment agreements existing as of the Closing Date. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii) The applicable Borrower offering the Offered Securities shall permit MFS, and MFS shall have the right, to participate in such offering and to purchase Offered Securities, up to the amount then
outstanding under the Credit Facility (as determined hereunder), at a price and on such other terms as shall have been specified by the Borrower in written offering materials delivered to MFS at least 30 days prior to the earliest anticipated
closing of such offering, but in no event on terms less favorable than those offered to any other offeree of, or offeror for, such Offered Securities. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(iii) MFS&#146; right to participate as provided in this </FONT><U><FONT face="serif">Section 4.2(k)</FONT></U><FONT face="serif"> shall extend during the term of this Credit Facility and for a
period of six months from and after the termination of the Credit Facility.  In the event of such termination, or any prepayment hereunder, the greatest outstanding amount under this Credit Facility during the six month period immediately prior to
such termination or prepayment shall be the amount of the Credit Facility used for purposes of determining the participation right under this </FONT><U><FONT face="serif">Section 4.2(k)</FONT></U><FONT face="serif">. At the closing of any purchase
by MFS of any such Offered Securities, MFS may pay for such Offered Securities by wire transfer of </FONT></P>


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<FONT face="serif">immediately available funds, by cancellation of any amount then outstanding under this Credit Facility, or otherwise as mutually determined by the parties. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(l) </FONT><U><FONT face="serif">Amendment or Modification of Organic Documents</FONT></U><FONT face="serif">. Amend or modify any term or provision of any Organic Document of any Subsidiary or the
name of any Borrower. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">4.3. </FONT><U><FONT face="serif">Reporting Requirements</FONT></U><FONT face="serif">. From the date hereof and thereafter for so long as the any Borrower is indebted to MFS, in addition to such
other information representing the business, properties or the condition or operations, financial or otherwise, of the Borrowers as MFS may from time to time request, the Borrowers will, unless MFS shall otherwise consent in writing, furnish to MFS:
</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) monthly management-prepared financial statements of the Borrowers with comparisons to budget and prior year figures within fifteen (15) days of month end; </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) monthly and quarterly unaudited financial statements of the Borrowers certified by Chief Executive Officer and Chief Financial Officer of APHY, within forty-five (45) days of quarter end; and
</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) annual audited financial statements of the Borrowers within ninety (90) days of year end. </FONT></P>
<P align="center">
<FONT face="serif">ARTICLE V </FONT><BR>
<FONT face="serif">EVENTS OF DEFAULT </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Borrowers shall be in default under this Credit Agreement upon the occurrence of any of the following events (each, an &#147;</FONT><B><U><FONT face="serif">Event of Default</FONT></U></B><FONT face="serif">&#148;):</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) The occurrence of any Event of Default under the Note or the Collateral Security Documents; or </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) Any representation or warranty made by the Borrowers or the Subsidiaries in any of the Loan Documents or in any written certificate, agreement, instrument or statement contemplated by or made or
delivered pursuant to or in connection with the Loan Documents shall prove to have been incorrect in any material respect when made; or </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) If APHY ceases to own and control 100% of the capital stock or other equity interests of any Subsidiary. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d) If Robert DelVecchio or Haresh Sheth ceases to hold a senior management position with active involvement in the management and operations of APHY, unless (1) such event is by reason of his death or disability and (2)
management replacement arrangements satisfactory to MFS (in its sole and absolute discretion) are made within 60 calendar days after such death or within 120 calendar days after the commencement of such period of disability. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e) The Borrowers shall fail to perform or observe any other term, covenant or agreement contained in any of the Loan Documents and not covered by (a) through (d) above, on their part to be performed
or observed and such failure is not cured within thirty (30) days. </FONT></P>
<P align="center">
<FONT face="serif">ARTICLE VI </FONT><BR>
<FONT face="serif">REMEDIES OF MFS</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Upon the occurrence of any one or more Event of Default and at any time thereafter while such Event of Default continues: </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a) MFS or any other holder of the Note or any other indebtedness of the Borrowers to MFS may, by notice to the Borrowers, declare the entire unpaid principal amount of the Note and/or any other
indebtedness of the Borrowers to MFS or such holder and all administration fees, interest and other sums accrued and unpaid thereon to be forthwith due and payable, whereupon the Note and/or any such indebtedness and all accrued interest and any
prepayment fees, as applicable, shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrowers. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) MFS may exercise any and all of the rights, powers, privileges and remedies provided by the Loan Documents or otherwise available at law or in equity, and all rights and remedies will be
cumulative in nature. </FONT></P>
<P align="center">
<FONT face="serif">ARTICLE VII </FONT><BR>
<FONT face="serif">DEFINITIONS AND ACCOUNTING TERMS</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">7.1. </FONT></B><B><U><FONT face="serif">Certain Defined Terms</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">As used in this Credit Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Affiliate</FONT></U></B><FONT face="serif">&#148; means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under
direct or indirect common control with such Person. A Person shall be deemed to control another Person if such first Person possesses directly or indirectly the power to direct, or cause the direction of, the management and policies of the second
Person, whether through the ownership of voting securities, by contract or otherwise.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> &#147;</FONT><B><U><FONT face="serif">Borrower</FONT></U></B><FONT face="serif">&#148; means, individually and collectively, the following: </FONT></P>
<div style="margin-left:60px"><P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">a. Assured Pharmacy, Inc., a Nevada corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, or
any successor or authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">b. Assured Pharmacies, Inc., a Louisiana corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">,
or any successor or</FONT></P></div>
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<FONT face="serif">13</FONT></P>

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<div style="margin-left:60px"><P align="justify">
<FONT face="serif">authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">c. Assured Pharmacies Northwest, Inc., a Nevada corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, or any successor or authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">d. Assured Pharmacy Gresham, Inc., a Nevada corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, or any successor or authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">e. Assured Pharmacy Las Vegas, Inc., a Nevada corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, or any successor or authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">f. Assured Pharmacy Irvine, Inc., a Nevada corporation, having its principal and chief executive office at the address specified in </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, or any successor or authorized assignee thereof, and </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">g. Any other entity subsequently added hereto as a Borrower hereunder, or any successor or authorized assignee thereof. </FONT></P></div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> &#147;</FONT><B><U><FONT face="serif">Business</FONT></U></B><FONT face="serif">&#148; has the meaning assigned to that term in </FONT><U><FONT face="serif">Section 4.2</FONT></U><FONT face="serif">. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Closing Date</FONT></U></B><FONT face="serif">&#148; means the date on which this Credit Agreement becomes effective, which date is first written above.
</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> </FONT><FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Collateral</FONT></U></B><FONT face="serif">&#148; means all those accounts, receivables, chattel paper, instruments, contract rights, documents, general
intangibles, letters of credit, drafts, bankers acceptances, and rights to payment, and all proceeds thereof, and all such other collateral security committed to MFS under the Collateral Security Documents executed by any Borrower in favor of MFS
pursuant to this Credit Agreement from time to time and/or pursuant to all similar or related documents and agreements from time to time, all as amended from time to time. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> </FONT><FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Collateral Security Documents</FONT></U></B><FONT face="serif">&#148; means, individually and collectively, (a) the Pledge and Security Agreement, and the
financing statements filed pursuant thereto, (b) the Subsidiary Security Agreements, and the financing statements filed pursuant thereto, and (c) any additional documents guaranteeing indebtedness, assuring performance of obligations, subordinating
indebtedness, or granting security or Collateral to MFS hereunder, all as amended from time to time. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Event of Default</FONT></U></B><FONT face="serif">&#148; has the meaning assigned to that term in </FONT><U><FONT face="serif">Article V</FONT></U><FONT face="serif">. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">GAAP</FONT></U></B><FONT face="serif">&#148; means generally accepted accounting principles. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Government Authority</FONT></U></B><FONT face="serif">&#148; means any government or political subdivision (and any agency, authority, bureau, central bank,
commission, department or instrumentality of either) and any court,</FONT></P>
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<FONT face="serif">14</FONT></P>

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<FONT face="serif">tribunal, grand jury or arbitrator, in each case whether foreign or domestic. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">License</FONT></U></B><FONT face="serif">&#148; means any authorization, construction or other permit, consent, franchise, ordinance, registration, certificate, license, call sign, frequency
designation, agreement or other right filed with, granted by, issued by or entered into with a Federal, state or local Government Authority. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Loan Documents</FONT></U></B><FONT face="serif">&#148; means this Credit Agreement, the Note, and the Collateral Security Documents.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Material Adverse Change</FONT></U></B><FONT face="serif">&#148; means any change that has or causes or could reasonably be expected to have or cause a Material Adverse Effect. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Material Adverse Effect</FONT></U></B><FONT face="serif">&#148; means, relative to any occurrence of whatever nature (including, without limitation, any adverse determination in any
litigation, arbitration, or governmental investigation or proceeding), a material adverse change to, or, as the case may be, a materially adverse effect on: </FONT></P>
<div style="margin-left:60px"><P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">a. The business, assets, revenues, financial condition, operations, Collateral or prospects of any Borrower; or </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">b. The ability of any Borrower to perform any of its payment obligations when due or to perform any other material obligations under any Loan Document; or </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">c. Any right, remedy or benefit of MFS under any Loan Document. </FONT></P></div>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Maturity Date</FONT></U></B><FONT face="serif">&#148; has the meaning set forth in </FONT><U><FONT face="serif">Section 1.2</FONT></U><FONT face="serif"> hereof,
as may be extended from time to time in MFS&#146; sole and absolute discretion.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Organic Document</FONT></U></B><FONT face="serif">&#148; means, relative to any entity, its certificate and articles of incorporation or organization, its by-laws
or operating agreements, and all equityholder agreements, voting agreements and similar arrangements applicable to any of its authorized shares of capital stock, its partnership interests or its member interests, and any other arrangements relating
to the control or management of any such entity (whether existing as a corporation, a partnership, an LLC or otherwise). </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Person</FONT></U></B><FONT face="serif">&#148; means an individual, corporation, limited liability company, partnership, joint venture, trust or unincorporated
organization, or a government or any agency or political subdivision thereof. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Permitted Liens</FONT></U></B><FONT face="serif">&#148; means Liens listed on </FONT><U><FONT face="serif">Schedule 4.2</FONT></U><FONT face="serif"> hereof with
the consent of MFS (which consent will not be unreasonably withheld while no Event of Default is occurring). </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&#147;</FONT><B><U><FONT face="serif">Receivables</FONT></U></B><FONT face="serif">&#148; means accounts receivable of the Borrowers evidencing indebtedness of Persons to the Borrowers for goods
actually delivered or services actually performed by the Borrowers to or for such Person. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> </FONT><FONT size=2 face="serif">&#147;</FONT><B><U><FONT face="serif">Subsidiary</FONT></U></B><FONT face="serif">&#148; of any Person or entity means any Person as to which such other Person or entity</FONT></P>
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<FONT face="serif">(a) directly or indirectly owns, controls or holds 25% or more of the outstanding beneficial interest or (b) is otherwise required in accordance with GAAP to be considered as part of a consolidated organization.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">7.2. </FONT></B><FONT face="serif"> </FONT><B><U><FONT face="serif">Accounting Terms</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">All accounting terms not specifically
defined herein shall be construed in accordance with GAAP consistent with those applied in the preparation of the financial statements referred to in </FONT><U><FONT face="serif">Section 3.2(i)</FONT></U><FONT face="serif">, and all financial data
submitted pursuant to this Credit Agreement shall be prepared in accordance with such principles. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">7.3.  </FONT></B><B><U><FONT face="serif">UCC References</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">References in this Credit Agreement to the &#147;UCC&#148; are to the
Uniform Commercial Code of the State of New York.</FONT></P>
<P align="center">
<FONT face="serif">ARTICLE VIII </FONT><BR>
<FONT face="serif">MISCELLANEOUS</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.1. </FONT></B><B><U><FONT face="serif">No Waiver; Cumulative Remedies</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> No failure or delay on the part of MFS, or any other
holder of the Note in exercising any right, power or remedy under the Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the
exercise of any other right, power or remedy hereunder. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.2. </FONT></B><B><U><FONT face="serif">Amendments</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">No amendment, modification, termination, or waiver of any provision of the
Loan Documents nor consent to any departure by the Borrowers therefrom, shall in any event be effective unless the same shall be in writing and signed by MFS and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given. No notice to or demand on the Borrowers in any case shall entitle the Borrowers to any other or further notice or demand in similar or other circumstances. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.3. </FONT></B><B><U><FONT face="serif">Indemnification</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif"> Each Borrower hereby agrees (jointly and severally) to defend MFS (and
its directors, officers, employees, agents, counsels and Affiliates) from, and hold each of them harmless against, any and all losses, liabilities, claims, damages, interests, judgments, costs, or expenses (including without limitation, reasonable
fees and disbursements of counsel) incurred by any of them arising out of or in any way connected with any Loan Document, </FONT><U><FONT face="serif">except</FONT></U><FONT face="serif"> for losses resulting from such Person&#146;s own gross
negligence, willful misconduct or fraud. In addition, each Borrower will reimburse and (jointly and severally) indemnify MFS for all costs, expenses and losses resulting from the following: (1) any failure or refusal by any Borrower or by any
Affiliate of any Borrower to provide any requested assistance or cooperation in connection with any attempt by MFS to liquidate any Collateral in the event of any Event of Default and/or any attempt by MFS to otherwise exercise its rights hereunder,
and (2) any misrepresentation, gross negligence, fraud or willful misconduct by any Borrower (or any of its employees or officers), or any other person or entity pledging Collateral hereunder. Each Borrower&#146;s obligations provided for in this
</FONT><U><FONT face="serif">Section 8.3</FONT></U><FONT face="serif"> will survive any termination of this Credit Agreement, and the repayment of the outstanding balances hereunder. </FONT></P>
<P align="center">
<FONT face="serif">16</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.4. </FONT></B><B><U><FONT face="serif">Addresses for Notices</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  All notices, demands, requests, consents or other communications
hereunder or in connection herewith (&#147;</FONT><B><U><FONT face="serif">Notices</FONT></U></B><FONT face="serif">&#148;) shall be in writing and shall be mailed postage prepaid, delivered or sent by facsimile to the applicable party at its
address first set forth above, with respect to MFS, and at its address set forth on </FONT><U><FONT face="serif">Schedule A</FONT></U><FONT face="serif">, with respect to a Borrower. Any party may, by Notice, change its address for all subsequent
Notices. All Notices shall, (i) when mailed, be effective three (3) days after deposit in the mails, (ii) when delivered, be effective upon delivery to the address of the applicable party, and (iii) when faxed, be effective upon receipt by the party
sending such Notice of machine confirmation of receipt by the party to which such Notice is addressed of all pages. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.5. </FONT></B><B><U><FONT face="serif">Costs, Expenses and Taxes</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> The Borrowers agree to pay on demand all out-of-pocket costs
and expenses of MFS (and any participant of all or any portion of the Credit Facility) in connection with the preparation of the Loan Documents and the issuance of Advances (up to a maximum of &#36;12,500), the enforcement of the Loan Documents and
the other instruments and documents to be delivered hereunder. In addition, the Borrowers shall pay any and all stamp and other taxes and fees payable or determined to be payable in connection with the execution and delivery of the Loan Documents
and other instruments and documents to be delivered hereunder and agree (jointly and severally) to save MFS harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such taxes or
fees. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.6. </FONT></B><B><U><FONT face="serif">Protection of Collateral</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">MFS may at any time at its option discharge or bond any liens
or other encumbrances upon, purchase and maintain required insurance in respect of, and otherwise preserve and protect the value of the Collateral, and pay any other sums Borrowers are obligated to pay under the Loan Documents. Any amounts expended
by MFS for any such purpose shall be treated in all respects as part of the Credit Facility and shall be secured by the Collateral Security Documents. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.7. </FONT></B><B><U><FONT face="serif">Further Assurances</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">From time to time, Borrowers will execute and deliver, or cause to be
executed and delivered, such supplements and amendments to the Loan Documents and such further instruments as may be reasonably requested by MFS or required to effectuate the intention of the parties to, or otherwise facilitate the performance of,
the Loan Documents. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.8. </FONT></B><B><U><FONT face="serif">Binding Effect; Assignment</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> This Credit Agreement shall be binding upon and inure to the
benefit of the Borrowers and MFS and their respective successors and assigns, except that no Borrower shall have the right to assign such Borrower&#146;s rights hereunder or any interest herein without the prior written consent of MFS. Subject to
the prior written consent of APHY, such consent not to be unreasonably withheld, conditioned or delayed, MFS may assign, negotiate or pledge all or any portion of its rights under the Loan Documents, and, in case of such assignment, negotiation or
pledge, the Borrowers shall accord full recognition thereto.  The foregoing notwithstanding, APHY hereby consents and agrees that MFS may assign, negotiate or pledge all or any portion of its rights under the Loan Documents to Global Investors, L.P.
and/or The Sehgal Family Foundation (or any of their Affiliates). </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.9. </FONT></B><B><U><FONT face="serif">Governing Law</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  This Credit Agreement, the Note, the Collateral Security Documents and
any financing statement filed pursuant hereto or thereto shall be governed by, and</FONT></P>
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<FONT face="serif">construed in accordance with, the laws of the State of New York, except to the extent that the validity or perfection of the security interest(s) or the remedies set forth in the Collateral Security Documents are governed by the
law of another jurisdiction. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.10 </FONT></B><B><U><FONT face="serif">Forum Selection and Consent to Jurisdiction</FONT></U></B><B><FONT face="serif">. Except to the extent prohibited by applicable law, each of the Borrowers
agrees that any suit for the enforcement of this Credit Agreement may be brought exclusively in the courts of record of the State of New York or the courts of the United States located in the Southern District of New York, consents to the
jurisdiction of each such court and to service of process in any such suit being made upon them by mail at the Borrowers&#146; addresses as set forth on the signature page hereto and waives any objection which any of them may have to the laying of
venue of such suit in any of such courts.  The foregoing notwithstanding, any suit seeking enforcement hereof against any Borrower, any Collateral or any other property may also be brought by MFS (at its sole option and discretion) in the courts of
any other jurisdiction where such Collateral or other property may be found or where MFS may other obtain personal jurisdiction over any Borrower. </FONT></B></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.11. </FONT></B><B><U><FONT face="serif">Severability of Provisions</FONT></U></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  Any provision of this Credit Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.12. </FONT></B><B><U><FONT face="serif">Survival</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">This Credit Agreement and all covenants, agreements, representations and
warranties made herein and the certificates delivered pursuant hereto shall survive the making by MFS of the Advances and the execution and delivery to MFS of the Note and the Collateral Security Documents, and shall continue in full force and
effect as long as the Note is outstanding and unpaid in whole or in part. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.13. </FONT></B><B><U><FONT face="serif">Headings</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> Article and Section headings in this Credit Agreement are included herein for
convenience or reference only and shall not constitute a part of this Credit Agreement for any other purpose. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.14. </FONT></B><B><U><FONT face="serif">Controlling Effect</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif"> To the extent of any inconsistency between the provisions of this
Credit Agreement, the Note, and/or the Collateral Security Documents, the provisions of this Credit Agreement shall control. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.15. </FONT></B><B><U><FONT face="serif">Integration</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">This Credit Agreement supersedes any commitment and proposal letters in
respect hereof, and all other prior dealings between the parties hereto and their respective agents, employees or officers with respect to the credit facilities extended hereby, and the Loan Documents constitute the entire agreement of the parties
hereto with respect to the subject matter hereof. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.16. </FONT></B><B><U><FONT face="serif">Reinstatement</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">To the maximum extent not prohibited by applicable law, this Credit
Agreement and the indebtedness hereunder will be reinstated and correspondingly increased if at any time any amount received by MFS in respect of any Loan Document is rescinded or must otherwise be restored or returned by MFS to any Person upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of any Borrower or any other Person or upon the appointment of any receiver, </FONT></P>
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<FONT face="serif">18</FONT></P>

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<FONT face="serif">intervenor, conservator, trustee or similar official for any Borrower or other Person or for any substantial part of the assets of any Borrower or any other Person, or otherwise, all as though such payments had not been made.
</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">8.17 </FONT></B><B><U><FONT face="serif">Counterparts</FONT></U></B><B><FONT face="serif">. </FONT></B><FONT face="serif">This Credit Agreement may be executed in any number of counterparts with
the same effect as if all the signatures on such counterparts appeared on one document. Each such counterpart will be deemed to be an original but all counterparts together will constitute one and the same instrument. </FONT></P>
<P align="center">
<B><FONT face="serif">[BALANCE OF PAGE INTENTIONALLY BLANK]</FONT></B></P><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>

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<FONT face="serif">19</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF, </FONT></B><FONT face="serif">the parties hereto have caused this Credit Agreement to be duly executed and delivered, as an instrument under seal (whether or not any such seals
are physically attached hereto), as of the day and year first above written.</FONT></P>
<div style="margin-left:350px"><TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACY, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>
<FONT face="serif">By:</FONT>  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">/s/ Robert DelVecchio</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left width=3%>&nbsp;</TD>
  <TD align=left width=84%><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left width=3%>&nbsp;</TD>
  <TD align=left width=84%><FONT face="serif">Chief Executive Officer</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly authorized</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACIES, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT face="serif">By:&nbsp;</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">/s/ Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">President</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACIES NORTHWEST, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">By:&nbsp;</FONT>      </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">/s/ Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">President</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACY GRESHAM, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">By:&nbsp;</FONT>      </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">/s/ Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">President</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACY LAS VEGAS, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">By:&nbsp;</FONT>      </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">/s/ Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">President</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left colspan=3>
<B><FONT face="serif">ASSURED PHARMACY IRVINE, INC.</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">By:&nbsp;</FONT>      </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">/s/ Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Name:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">Robert DelVecchio</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Title:</FONT>  </TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT face="serif">President</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=13%>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=left width=84%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
</TABLE>
</div>
<BR>
<P align="center">
<FONT face="serif">20</FONT></P>

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<div style="margin-left:350px"><TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=99% colspan=3>
<B><FONT face="serif">MOSAIC FINANCIAL SERVICES, LLC</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=3>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14%>
<FONT face="serif">By:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=83%>
<FONT face="serif">/s/ Ameet Shah</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14%><FONT face="serif">Name:</FONT></TD>
  <TD align=left width=2%>&nbsp;</TD>
  <TD align=left width=83%><FONT face="serif">Ameet Shah</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14%>
<FONT face="serif">Title:</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=83%>
<FONT face="serif">Manager</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14%>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=83%>
<FONT face="serif">Duly Authorized</FONT>  </TD>
</TR>
</TABLE>
</div><BR>
<P align="center">
<FONT face="serif">21</FONT></P>

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<P align="justify">
<B><FONT face="serif">SCHEDULES AND EXHIBITS:</FONT></B></P><br>




<TABLE border=0 cellspacing=1 cellpadding=0>
  <tr valign="bottom">
    <td align=left width=14% nowrap><b><u><font face="serif">Schedules</font></u></b><b><font face="serif">:</font></b></td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap>&nbsp;</td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td colspan=5>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp;</td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">A</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">List of Borrowers and
        Addresses</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(a)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Good Standing / Foreign
        Qualification Jurisdictions</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(g)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Capital Structure / Equity
        Ownership</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(h)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Subsidiaries, Affiliates &amp; Investments</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(j)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Material Contracts</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(p)(i)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Trademarks and Copyrights</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(p)(ii)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Real Property and Leaseholds</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">3.2(p)(iii)</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Tradenames</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Schedule</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">4.2</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Permitted Liens</font>&nbsp; </td>
  </tr>
  <tr>
    <td colspan=5>&nbsp;</td>
  </tr>
  <tr>
    <td colspan=5>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><b><u><font face="serif">Exhibits</font></u></b><font face="serif">:</font></td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap>&nbsp;</td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td colspan=5>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Exhibit</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">A</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Form of Note</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Exhibit</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">B</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Form of Pledge and Security
        Agreement</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left width=14% nowrap><font face="serif">Exhibit</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=13% nowrap><font face="serif">C</font>&nbsp; </td>
    <td width=2%>&nbsp;</td>
    <td align=left width=67% nowrap><font face="serif">Form of Subsidiary Security
        Agreement</font>&nbsp; </td>
  </tr>
</TABLE>
<BR>










<P align="center">
<FONT face="serif">22</FONT></P>
<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE A</FONT></U></B><FONT face="serif"> </FONT><BR>
<BR>
<B><FONT face="serif">BORROWERS AND ADDRESSES</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">1.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<P align="left"><FONT face="serif">Assured Pharmacy, Inc.<br>
17935 Sky Park Circle, Suite F<br>
Irvine, CA 92614</FONT></P></TD>
</TR>

<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">2.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<P align="left"><FONT face="serif">Assured Pharmacies, Inc.<br>
2431 N. Tustin Ave., Unit L<br>
Santa Ana, CA 92705</FONT></P></TD>
</TR>

<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">3.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD rowspan="2">
<P align="left"><FONT face="serif">Assured Pharmacies Northwest, Inc.<br>
 12071 124<SUP>th</SUP>Ave. NE<br>
Kirkland, WA 98034</FONT></P></TD>
</TR>
<TR>
<TD width="2%">&nbsp;</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">4.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<P align="left"><FONT face="serif">Assured Pharmacy Gresham, Inc.<br>
831 NW Council Drive, Suite 11<br>
Gresham, OR 97030</FONT></P></TD>
</TR>

<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">5.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<P align="left"><FONT face="serif">Assured Pharmacy Las Vegas, Inc.<br>
801 S. Rancho Drive, Suite E3A<br>
Las Vegas, NV 89106</FONT></P></TD>
</TR>

<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD width="2%" valign=top nowrap>
<FONT face="serif">6.</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<P align="left"><FONT face="serif">Assured Pharmacy Irvine, Inc.<br>
2040 Pacific Coast Highway R.<br>
Lomita, CA 90717</FONT></P></TD>
</TR>

<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT face="serif">23</FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(a)</FONT></U></B><FONT face="serif"> </FONT><BR>
<BR>
<B><FONT face="serif">GOOD STANDING AND FOREIGN QUALIFICATION JURISDICTIONS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<B><FONT face="serif">State of</FONT></B>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<B><FONT face="serif">Company Name</FONT></B>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<B><FONT face="serif">Incorporation</FONT></B>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<B><FONT face="serif">Foreign Qualification Jurisdictions</FONT></B>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Nevada</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">California</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacies, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Louisiana</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">California</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacies Northwest, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Nevada</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Washington; Oregon</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Gresham, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Nevada</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Oregon</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Las Vegas, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Nevada</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Irvine, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Nevada</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">California</FONT>  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">24</FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(g)</FONT></U></B><B><FONT face="serif"> </FONT></B><BR>
<BR>
<B><FONT face="serif">CAPITAL STRUCTURE; EQUITY OWNERSHIP </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>
<U><FONT face="serif">Company Name</FONT></U>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<U><FONT face="serif">Authorized Capital</FONT></U>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<U><FONT face="serif">Securities Outstanding</FONT></U>  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">150,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">65,659,609 shares of</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Common Stock, par value</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Common Stock issued and</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">&#36;0.001 per share;</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">outstanding; no shares of</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">5,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Preferred Stock issued</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Preferred Stock, par value</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">and outstanding</FONT>  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left><FONT face="serif">&#36;0.001 per share</FONT></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center colspan=5>  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacies, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">[To be supplied.]</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacies Northwest, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">90,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Common Stock, par value</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">&#36;0.001 per share;</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">10,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Blank Check Preferred</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Stock</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Gresham, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">90,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Common Stock, par value</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">&#36;0.001 per share;</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">10,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Blank Check Preferred</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Stock</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Las Vegas, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">[To be supplied.]</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>
<FONT face="serif">Assured Pharmacy Irvine, Inc.</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">90,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Common Stock, par value</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">&#36;0.001 per share;</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">10,000,000 shares of</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Blank Check Preferred</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>
<FONT face="serif">Stock</FONT>  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">25</FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(h)</FONT></U></B><B><FONT face="serif"> </FONT></B><BR>
<BR>
<B><FONT face="serif">SUBSIDIARIES, AFFILIATES &amp; INVESTMENTS</FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>
<FONT face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD width=100% rowspan="2">
<P align="left"><FONT face="serif">Each of the following entities is a subsidiary of Assured Pharmacy, Inc.: (i) Assured Pharmacies, Inc.; (ii) Assured Pharmacies Northwest, Inc.; (iii) Assured Pharmacy Gresham, Inc.; (iv) Assured Pharmacy Las
Vegas, Inc.; (v) Assured Pharmacy Irvine, Inc.; (vi) Assured Pharmacy Plus, Corp.; (vii) Assured Pharmacy DME, Corp.; (viii) Assured Pharmacy Henderson, Inc.; and (ix) Assured Pharmacy Los Angeles 1, Inc. There are no other subsidiaries or affiliates of Assured Pharmacy, Inc. or any of its subsidiaries.</FONT></P></TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>
<FONT face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD width=100%>
<P align="left"><FONT face="serif">None.</FONT></P>  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>

<P align="center">
<FONT face="serif">26</FONT></P>

<HR noshade align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(j)</FONT></U></B><B><FONT face="serif"> </FONT></B><BR>
<BR>
<B><FONT face="serif">MATERIAL CONTRACTS</FONT></B></P>
<P align="justify">
<FONT face="serif">See Schedule 3.2(p)(ii).</FONT></P><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>

<P align="center">
<FONT face="serif">27</FONT></P>

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<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(p)(i)</FONT></U></B><B><FONT size=2 face="serif"> </FONT></B></P>
<P align="center">
<B><FONT face="serif">TRADEMARKS AND COPYRIGHTS</FONT></B></P>
<P align="justify">
<FONT face="serif">None.</FONT></P><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<P align="center">
<FONT face="serif">28</FONT></P>

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<P align="left" style="page-break-before:always"></P>
<PAGE>
<P align="center">
<B><U><FONT face="serif">SCHEDULE 3.2(p)(ii)</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P align="center">
<B><FONT face="serif">REAL PROPERTY AND LEASEHOLDS</FONT></B></P>
<P align="justify">
<U><FONT face="serif">Property No. 1</FONT></U><FONT face="serif"> </FONT><BR>
<BR>
<FONT face="serif">Address: 17935 Sky Park Circle, Suite F, Irvine, CA 92614 </FONT><BR>
<BR>
<FONT face="serif">Type: Lease (through 09/30/08) </FONT><BR>
<BR>
<FONT face="serif">Landlord: Airport Business Center </FONT><BR>
<BR>
<FONT face="serif">Use: Corporate office</FONT><BR>
<BR>
<U><FONT face="serif">Property No. 2</FONT></U><FONT face="serif"> </FONT><BR>
<BR>
<FONT face="serif">Address: 2431 N. Tustin Ave., Unit L, Santa Ana, CA 92705</FONT><BR>
<BR>
<FONT face="serif">Type: Lease (through 04/30/08) </FONT><BR>
<BR>
<FONT face="serif">Landlord: S &amp; A Properties </FONT><BR>
<BR>
<FONT face="serif">Use: Pharmacy site </FONT><BR>
<BR>
<U><FONT face="serif">Property No. 3</FONT></U><FONT face="serif"> </FONT><BR>
<BR>
<FONT face="serif">Address: 7000 Indiana Ave., Suite 112, Riverside, CA 95206</FONT><BR>
<BR>
<FONT face="serif">Type: Lease (through 02/28/09) </FONT><BR>
<BR>
<FONT face="serif">Landlord: J.E.D. Family Trust </FONT><BR>
<BR>
<FONT face="serif">Use: Pharmacy site </FONT><BR>
<BR>
<U><FONT face="serif">Property No. 4</FONT></U><FONT face="serif"> </FONT><BR>
<BR>
<FONT face="serif">Address: 12071 124</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> Ave., NE, Kirkland, WA 98034 </FONT><BR>
<BR>
<FONT face="serif">Type: Lease (through 04/30/09) </FONT><BR>
<BR>
<FONT face="serif">Landlord: Totem Square </FONT><BR>
<BR>
<FONT face="serif">Use: Pharmacy Site </FONT></P>
<P align="center">
<FONT face="serif">29</FONT></P>

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<P align="left" style="page-break-before:always"></P>
<PAGE>

<P align="justify">
<U><FONT face="serif">Property No. 5</FONT></U><FONT face="serif"> </FONT><BR>
<BR>
<FONT face="serif">Address: 3822 SE Powell Blvd., Portland, OR 97202 </FONT><BR>
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<FONT face="serif">Type: Lease (through 03/31/09) </FONT><BR>
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<FONT face="serif">Landlord: Powell Square/WYSE </FONT><BR>
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<FONT face="serif">Use: Pharmacy site </FONT><BR>
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<U><FONT face="serif">Property No. 6</FONT></U><FONT face="serif"> </FONT><BR>
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<FONT face="serif">Address: 10196 SW Parkway, Portland, OR 97225 </FONT><BR>
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<FONT face="serif">Type: Lease (through 12/31/09) </FONT><BR>
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<FONT face="serif">Landlord: Cedar Hills Shopping Center, LLC </FONT><BR>
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<FONT face="serif">Use: Pharmacy site </FONT><BR>
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<U><FONT face="serif">Property No. 7</FONT></U><FONT face="serif"> </FONT><BR>
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<FONT face="serif">Address: 831 NW Council Drive, Gresham, OR 97030 </FONT><BR>
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<FONT face="serif">Type: Lease (through 01/11/12)</FONT><BR>
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<FONT face="serif">Landlord: Chang Income Property Partnership </FONT><BR>
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<FONT face="serif">Use: Pharmacy site </FONT><BR>
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<U><FONT face="serif">Property No. 8</FONT></U><FONT face="serif"> </FONT><BR>
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<FONT face="serif">Address: 801 S. Rancho Drive, Las Vegas, NV 89106 </FONT><BR>
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<FONT face="serif">Type: Lease (through 06/30/10) </FONT><BR>
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<FONT face="serif">Landlord: Johnny Ribeiro Builder, Inc. </FONT><BR>
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<FONT face="serif">Use: Pharmacy site </FONT><BR>
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<U><FONT face="serif">Property No. 9</FONT></U><FONT face="serif"> </FONT><BR>
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<FONT face="serif">Address: 2040 Pacific Coast Highway, Suite R, Lomita, CA 90717</FONT></P>
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<FONT face="serif">Type: Lease (through 06/30/12) </FONT><BR>
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<FONT face="serif">Landlord: Oak Lomita LLC </FONT><BR>
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<FONT face="serif">Use: Pharmacy site (set to open in the Second Quarter of 2008)</FONT></P><br>
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<B><U><FONT face="serif">SCHEDULE 3.2(p)(iii)</FONT></U></B><BR>
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<B><FONT face="serif">TRADENAMES </FONT></B></P>
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<FONT face="serif">None.</FONT></P><br>
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<B><U><FONT face="serif">SCHEDULE 4.2</FONT></U></B><B><FONT face="serif"> </FONT></B><BR>
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<B><FONT face="serif">PERMITTED LIENS</FONT></B></P>
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<FONT face="serif">Security interest granted by each of the Borrowers in favor of H.D. Smith Wholesale Drug Company Barnes Division with respect to substantially all of the assets of each of the Borrowers.</FONT></P><br>
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<FONT face="serif">33</FONT></P>

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<B><U><FONT face="serif">EXHIBIT A</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
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<B><FONT face="serif">FORM OF NOTE</FONT></B></P><br>
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<B><U><FONT face="serif">EXHIBIT B</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
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<B><FONT face="serif">FORM OF PLEDGE AND SECURITY AGREEMENT</FONT></B></P><br>
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<B><U><FONT face="serif">EXHIBIT C</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
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<B><FONT face="serif">FORM OF SUBSIDIARY SECURITY AGREEMENT</FONT></B></P><br>
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<FONT face="serif">36</FONT></P>

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