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| 1.     | Final Maturity Date: The parties hereto acknowledge and agree that the Final Maturity Date of the Debenture shall be extended from July 31, 2012 to August 31, 2012.                                                                                                                                                                                                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 2.     | Interest:  Simple interest shall accrue at a rate of eight percent (8%) per annum.  Interest shall accrue from the date funds were received by the Company from each respective Creditor under the Debenture.  All interest shall be due and payable in cash at the Final Maturity Date. In lieu of a cash interest payment, each Creditor has the right to convert all or any part of the interest amount into shares of Common Stock of the Company at a conversion price per share of $0.03 per Share. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.     | Security:  For the avoidance of doubt and in addition to the Security outlined in section #2.4 of this Convertible Debenture, Creditor(s) shall receive a first priority lien on the recently issued patent “United States Patent No. 8232876”.  Company acknowledges that the patent listed above is covered by the existing Security Agreement.                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.     | Terms of Debenture: Except as provided herein the remaining terms of the Debenture shall be unchanged and fully enforceable by the parties hereto.                                                                                                                                                                                                                                                                                                                                                                                      |

| By:_/s/  John L. Hastings, III | By:   /s/  John L. Hastings, III |
|------------------------------------------|-----------------------------------------------------------|
| John L. Hastings, III                    | John L. Hastings, III                                     |
| President and CEO                        | President                                                 |

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| Creditor: Laemi Real Estates Inc.                                       | Address:                       |   |
|-------------------------------------------------------------------------|--------------------------------|--------|
| Investment Amount: $500,000.00                                          |                           |   |
|                                                                    |                           |   |
| By:     /s/  Hans-Jorg Gatt          | Laemi Real Estates, Inc.       |   |
| Hans-Jorg Gatt, Director                                                | 15 Neugasse                    |   |
|                                                                    |                           |   |
|                                                                    | .O. Box 424                    |   |
| By:    /s/  Christina Meusburger          | LI-9490                        |   |
| Christina Meusburger, Director                                          | Principality of Liechtenstein  |   |
|                                                                    |                           |   |
| Creditor: Sapinda Holding BV                                            |                           |   |
| Investment Amount: $500,000.00                                          |                           |   |
|                                                                    |                           |   |
|                                                                    |                           |   |
| By:      /s/  Dr. Peter Wiesing | Sapinda Holding BV             |   |
| Dr. Peter Wiesing, Managing Director                                    | Attn: Herm Holding BV          |   |
|                                                                    | World Trade Center             |   |
|                                                                    | Schiphol Boulevard 127, A 3.14 |   |
|                                                                    | The Netherlands                |   |
|                                                                    |                           |   |
| Creditor: SAPINDA ASIA Limited                                          |                           |   |
| Investment Amount: $1,000,000.00                                        |                           |   |
|                                                                    |                           |   |
|                                                                    |                           |   |
| By:      /s/ Lars Windhorst               | Sapinda Asia Limited           |   |
| Lars Windhorst, Managing Director                                       | Rooms 803-4, 8/F               |   |
|                                                                    | Hang Seng Bank Building        |   |
|                                                                    | 200 Hennessy Road              |   |
|                                                                    | Wanchai                        |   |
|                                                                    | Hong Kong                      |   |
|                                                                    |                           |   |
|                                                                    |                           |   |
| Creditor: George Schmitt                                                |                           |   |
| Investment Amount: $500,000.00                                          |                           |   |
|                                                                    | George Schmitt                 |   |
| By:      /s/ George Schmitt               | 554 Hamilton Way               |   |
| George Schmitt                                                          | Pleasanton, CA 94566           |   |

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