Document:

Unassociated Document

    
       

        
          

        

      

       

      Xi’an TCH
Energy Technology Co., Ltd

    

    
       

      PuCheng
XinHengYuan Biomass Power Generation Co., Ltd

    

    

    Biomass
Power Generation Project Lease Agreement

     

    June,
2010

    
      
         

      

      
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      Biomass
Power Generation Project Lease Agreement

    

    

    
      Lessor: Xi’an TCH Energy
Technology Co., Ltd (hereinafter refers to as Party A)

    

     

    Leasee: PuCheng XinHengYuan
Biomass Power Generation Co., Ltd. (hereinafter refers to as Party
B)

     

    Whereas:

    1. In
order to improve the efficiency of assets operation and decrease the management
cost, Party A agrees Party B to lease its biomass power generation assets, and
Party B agrees to lease such biomass power generation assets and pay the leasing
fee according to this Agreement.

    2. Both
Parties have received valid authorization for the lease agreement, and such
lease does not need any further review, verification or approval by relevant
government agencies.

    3.  Through
friendly negotiation, Parties reach the agreement on Party B leasing Party A’s
biomass power generation assets. According to the Contract Law of China and
other laws and regulations, Parties hereby enter into the lease agreement that
is binding on both.

    

    Article
1  Lease scope

    1.1 The
biomass power generation equipment assets that Party B leases from Party A
(hereinafter referred to as “Lease Project”) has a total installed capacity of
12,000 kw. The details of the Lease Project see “Target Assets List” as an
attachment of this Agreement.

    
      
         

      

      
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    1.2 Party
B leases the Lease Project for its power generation purpose, and Party B will
enjoy the incomes from such power generation.

    1.3  Party
B operates the Lease Project, keeps its own accounts, and is responsible for its
own profits or losses.  Party B shall bear all the taxes and fees in
connection with the operation of the Lease Project.

    

    Article
2  Lease Term

    The lease
term is 15 years starting from the signature day of this Agreement. Upon the
expiration, Party A will transfer the lease assets to Party B without other
charges.

    

    Article
3  Leasing fee and method of payment

    3.1 The
minimum leasing fee is RMB 1,900,000 per month, the payment of leasing fee shall
be made monthly by Party B to Party A in cash through bank wire.

    3.2 Party
B ensures to make payment of leasing fees on the 15th of each
month.(If the 15th of the
month is a weekend or national holiday, such payment shall be made on the first
working day after the weekend or holiday)  Party B shall pay a default
fee to Party A everyday that equals to 0.08% of leasing fee for everyday of its
delaying payment.

    3.3  If
the State electricity price for biomass generated power increases, the leasing
fee shall be increased proportionately in accordance with the same rate or
amount by which the State electricity price has increased on top of the minimum
RMB 1,900,000 a month, according to a formula below.

    The
specific calculation is as follows:

    As the
current electricity rate applied to biomass generated power at RMB 0.686 per
kilowatt hour (“KWH”), the operating cost is RMB 0.30 per KWH, the depreciation
expense is RMB 0.082 per KWH, gross profit per KWH is then RMB 0.304. Party B
will pay 87% of its gross profit to Party A as its leasing fee which is RMB
0.2645. The total annual power generation volume for the Lease Project is 86.22
million KWH,  and annual leasing fee will be RMB 22.8 million per
year, which is minimum RMB 1.9 million per month.

    
      
         

      

      
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    If
biomass electricity rate rises to RMB 0.81, the gross profit per KWH will be RMB
0.428, then according to 87% of the gross profit formula, the leasing fee will
rise to RMB 2.67 million per month from RMB 1.9 million per month.

    The
formula is: New Monthly Leasing Fee = New gross profit * 87% / 12.

    Party B
confirms that its operating cost, depreciation expense and power generation
volume of the Lease Project will remain the same during the term of this
Agreement.

    

    Article
4  Lease Deposit

    4.1 To
ensure the operating profit of the Lease Project and Party B to fulfill its
obligations under this Agreement, both Parties agree that Party B shall pay
Party A  certain amount of security deposit. The security deposit will
guarantee Party B operates the project honestly, manage the power generation
assets diligently and carefully and bear the operating risk during the operation
period.

    4.2 Party
B shall pay RMB 1,900,000 to Party A as lease security deposit within 10 days
after the effectiveness of this Agreement.

    4.3 If
there is any damage or loss to the Lease Project caused by the operating risk
during Party B’s operation process, Party A has the rights to deduct the
relevant amount from leasing deposit paid by Party B as a compensation based
upon specific situation according to this Agreement and its attachment. If the
deposit is not enough to pay for Party A’s loss, Party A has the right to
request Party B to pay for the difference.

    4.4 Upon
the expiration of this Agreement, Party A shall return the deposit to Party B
after Parties conclude the accounting based upon this Agreement, excluding the
amount that should be deducted subject to this Agreement and its
attachment.

    

    Article
5  Rights and Obligations of Party A

    5.1 Party
A has the right to supervise Party B on Lease Project. For the behaviors that
could damage the Lease Project and affect the economy of the operation, Party A
has the right to stop them and terminate this Agreement.

    5.2 Party
B shall pay the leasing fee on schedule. If Party B delays the payment, Party A
has the right to deduct the fee from leasing deposit. If the deposit is not
enough to pay for the leasing fee, Party A has the right to request Party B to
pay the default fee subject to this Agreement and request Party B to compensate
Party A’s losses.

    
      
         

      

      
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    5.3 Party
A shall not interfere with Party B’s normal operation and management activities.
The incomes that Party B obtains during its lease term belong to Party B after
payment of the leasing fee in full and leasing deposit.

    5.4 One
of the shareholders of Party B shall provide joint liability guarantee to Party
A to ensure that Party B will make full payment of leasing fees on time and
perform its obligations under this Agreement.

    
 

    Article
6  Rights and Obligations to Party B

    6.1
During the operating period, Party B has the rights to autonomous management,
assuming full responsibilities for profits and losses, and independent and
separate accounts.

    6.2 Party
B shall complete all related review and approval procedures for the Lease
Project and obtain the operating rights for the Lease Project by
itself.

    6.3 Party
B shall ensure the integrity and good operating condition of the Lease Project.
If the Lease Project has problems during operation, Party B is responsible for
the repair, maintenance and their costs.

    6.4 Party
B shall pay the leasing fee on schedule and give written notice to Party A when
making such payments.

    6.5 Party
B shall pay the lease deposit in full, and such deposit accrues no
interest.

    6.6
During the operating period, Party B shall not terminate or cancel this
Agreement without Party A’s consent.  If this Agreement is terminated
due to Party B’s reason and it has caused losses to Party A, it shall be
considered as a breach of Agreement by Party B.  Party B shall pay the
breach of contract penalty to Party A and be responsible to compensate Party A’s
losses.

    

    Article 7
Force Majeure (as defined by the law)

    If the
“Lease Project” could not be appropriately used due to force majeure, Party A or
Party B can be partially or wholly exempted from its liability practically and
realistically according to the impact caused by the force majeure. Either Party
that suffers a force majeure shall notify the other party within 2 working days
and provide proofs for the force majeure within 15 working days, and shall
endeavor to retrieve any loss as much as possible. Party A has the right to
terminate this Agreement if this Agreement cannot be performed due to the force
majeure.

    
      
         

      

      
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    Article
8  Liability of breach of contract

    8.1
Unless otherwise agreed in this Agreement or other written consents by Parties,
neither party can modify or terminate this Agreement during the term without the
written consent from the other party.  If any party breaches this
Agreement, it shall pay for all the losses suffered by the other party as a
result of its breach.

    8.2.
Party B shall pay a default fee to Party A each day that equals to 0.08% of
the leasing fee for everyday of its delaying payment.

    8.3 If
Party B defaults payment of leasing fee accumulatively for 3 months, it is
considered as lack of ability to pay leasing fee, and Party A has the right to
terminate this Agreement, and Party B shall compensate all the losses of Party A
and pay default fees.

    8.4  If
Party B breaches the term of Article 6 of this Agreement and causes losses to
Party A, Party B shall be responsible to compensate Party A’s losses and pay a
breach of contract penalty fee that equals to 40% of the overall leasing fees of
this Agreement to Party A.  At the same time, Party A has the right to
make such claims to guarantor.

    

    Article
9  Effect of the Agreement

    This
Agreement is established when both Parties sign and seal the agreement. This
Agreement will take effect on the date when Parties sign “Target Assets List”
and “Joint Guarantee  Agreement”. If the dates are different on the
aforementioned documents, this Agreement takes effect on the date of the last
Agreement is signed.

    If any
term of this Agreement is considered invalid by the Court, the validity of other
terms of this Agreement shall not be affected.

    
      
         

      

      
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    Article
10  Settlement of dispute

    Any
disputes arising out of this Agreement shall be settled through friendly
negotiation, in case no settlement can be reached, each party can file a law
suit to the local People’s Court with jurisdiction in which the Party A is
located.

    

    Article
11  Others

    1.  For
any other matters not addressed in this Agreement, Party A and Party B may reach
“Supplement Agreement”, and “Supplement Agreement” has the same legal effect to
this Agreement.

    2.  Party
B agrees, during the implementation of this Agreement, Part A can
change  or assign this Agreement to any other party that Party A
designates, if necessary.  Party B shall not assign/transfer its
rights and obligations under this Agreement without the written approval of
Party A.

    3. This
Agreement has six original copies. Party A and Party B each holds three copies
and they all have same legal effect.

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Party
      A :    (sealed)

                            	 
      	
                              Party
      B :   (sealed)

                            
	 
      	 
      	 
      
	
                              Signature
      of representative:

                            	 
      	
                              Signature
      of representative:

                            
	 
      	 
      	 
      
	
                              Signing
      date: June 29, 2010

                            	 
      	
                              Signing
      date: June 29,
2010

                            

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        7STOCK
PURCHASE AGREEMENT

     

    This
Stock Purchase Agreement (the “Agreement”) dated as of May
13, 2010, by and among American Scientific Resources, Incorporated, a
Nevada  corporation, with headquarters located at 1112 Weston Road,
Unit 278, Weston Florida 33326 (the “Company”), and the purchasers
identified on the signature page hereto (including their successors and assigns
(the “Purchasers”)).

     

    WHEREAS,
the Purchasers desire to purchase from the Company convertible debentures in the
aggregate amount of up to $150,000 in substantially the form attached hereto as
Exhibit A (the “Debentures”);

     

    WHEREAS,
in connection with the purchase of the Debentures, the Company will also issue
Purchasers warrants to purchase up to 7,500,000 shares of the Company’s common
stock at $.001 per share (“Warrants”) in substantially the form attached hereto
as Exhibit B;

     

    WHEREAS,
the Debentures and Warrants are collectively referred to as the
“Securities”;

     

    WHEREAS,
the Company desires that Purchasers purchase the Securities; and

     

    NOW,
THEREFORE, in consideration of the foregoing and on the basis of the respective
representations, warranties, covenants, agreements, undertakings and obligations
set forth herein, and intending to be legally bound hereby, the parties agree as
follows:

     

    ARTICLE
1

     

    PURCHASE
AND SALE OF THE DEBENTURES AND THE WARRANTS

    

    1.1           Purchase
and Sale of Securities.  Upon the terms and subject to the
conditions set forth in this Agreement, the Company agrees to sell, assign,
transfer and deliver to each Purchaser, and each Purchaser hereby agrees to
purchase at the Closing (as defined in Section 2) and accept delivery from the
Company, a Debenture in the principal amount designated on the signature page
hereto, free of all liens, pledges, mortgages, security interests, charges,
restrictions, adverse claims or other encumbrances of any kind or nature
whatsoever, for the consideration specified herein.

     

    ARTICLE
2

     

    CLOSING

     

    2.1           Closing.  As
used herein the Closing Date shall mean the day when all conditions precedent to
(i) the Purchasers’ obligations to purchase the Debentures and (ii) the
Company’s obligations to issue the Debentures and Warrants have been satisfied
or waived.  On the Closing Date, upon the terms and subject to the
conditions set forth herein, the Company agrees to sell to each Purchaser and
each Purchaser agrees to purchase a Debenture in the principal amount designated
on the signature page hereto. The closing of the purchase and sale of Debentures
is referred to herein as the “Closing”.

    
      
         

      

      
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    The Closing Date shall occur on the
date of this Agreement at the offices of Sichenzia Ross Friedman Ference LLP,
New York, New York 10066, at 10:00 a.m., or at such other time and place as the
parties may agree.

     

    2.2 Deliveries.

     

    (a)
  On or prior to the Closing Date, the Company shall deliver or cause
to be delivered to each Purchaser:

     

    (i)   this
Agreement duly executed by the Company;

     

    (ii)  a
Debenture in the principal amount equal to in the principal amount designated on
the signature page hereto; and

     

    (iii) a
Warrant registered in the name of Purchaser to purchase up to the number of
shares of common stock designated on the signature page hereto, at an exercise
price of $.01 per share.

     

    (b
)  On or prior to the Closing Date, each Purchaser shall deliver or
cause to be delivered to the Company:

     

    (i)  this
Agreement duly executed by the Purchaser; and

     

    (ii)  the
principal amount of the Debenture designated on the signature page hereto by
wire to the account specified in writing by the Company.

     

      2.3   Closing
Conditions

     

    (a) 
The obligations of the Company hereunder in connection with each Closing are
subject to the following conditions being met:

     

    (i)  the
accuracy in all material respects on each Closing Date of the representations
and warranties of the Purchasers contained herein;

     

    (ii)   the
delivery by the Purchasers of the items set forth in Section 2.2
(b).

     

    (b)  The
obligations of each Purchaser hereunder in connection with the Closing are
subject to the following conditions being met:

     

    (i)  the
accuracy in all material respects when made and on each Closing Date of the
representations and warranties of the Company contained herein;

     

    (ii)  all
obligations, covenants and agreements of the Company required to be performed at
or prior to the relevant Closing Date shall been performed;

     

    (iii)  the
delivery by the Company of the items set forth in Section 2.2
(a).

    
      
         

      

      
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    ARTICLE
3

     

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

     

    3.           Representations
and Warranties of the Company.  The Company represents and
warrants to each Purchaser as follows:

     

    (a)          The
Company is a corporation duly organized,
validly existing, and in good standing under the laws of Nevada, and is
qualified in no other state.

    

    (b)          This
Agreement has been duly executed and delivered by Company and constitutes the
valid, binding and enforceable obligation of Company, subject to the applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and rights of stockholders.

    

    (c)          The
authorized capital stock of the Company consists of 2,500,000,000 shares of common
stock, 1,922,027,167 of which are validly issued and outstanding, fully paid and
non-assessable and 1,000,000 shares of blank check preferred stock of which
500,000 have been designated as Series A Preferred Stock of which 0 are issued
and outstanding and 500,000 have been designated as Series B Preferred Stock of
which 0 are issued and outstanding.  The Common Stock issuable upon
the conversion of the Debentures and exercise of the Warrants will be when
issued in accordance with the Debenture and or the Warrant validly issued, are
fully paid and non-assessable.  The Company has the unqualified right
to sell, assign, and deliver the Securities, and, upon consummation of the
transactions contemplated by this Agreement, the Purchaser will acquire good and
valid title to the Securities, free and clear of all liens, claims, options,
charges, and encumbrances of whatsoever nature.  The Company’s
subsidiaries are set forth on Schedule (c) (such subsidiaries and any direct or
indirect subsidiary of the Company formed or acquired after the date hereof
shall be referred as a “Subsidiary”).

      

    (d)          Other
than as set forth on the financial statements for the year ended December 21,
2009, attached hereto as Exhibit “C” (the “Financial Statements”), the Company
is not a party to or bound by any unexpired, undischarged or unsatisfied written
or oral contract, agreement, indenture, mortgage, debenture, note or other
instrument under the terms of which performance by Purchaser according to the
terms of this Agreement will be a default or an event of acceleration, or
grounds for termination, or whereby timely performance by Purchaser according to
the terms of this Agreement may be prohibited, prevented or
delayed.

    

    (e)          The
Company has full power and authority to sell and transfer the Securities to
Purchaser without obtaining the waiver, consent, order or approval of (i) any
state or federal governmental authority or (ii) any third party or other
person.  The Company has the corporate power, authority and
capacity to carry on its business as presently conducted.

    

    (f)           Neither
the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will constitute a violation or default under
any term or provision of the Certificate of Incorporation or By-Laws of the
Company or of any contract, commitment, indenture,
other agreement or restriction of any kind or character to which the Company is
a party to or by which the Company is bound.

    

    (g)          As of December 31, 2009, the Company has no
outstanding liabilities or obligations to any party except as reflected on the
Financial Statements.

    
      
         

      

      
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    (h)          The Company has the
corporate power to own its properties and to carry on its business as now being
conducted and is duly qualified to do business and is in good standing in each
jurisdiction in which the failure to be so qualified and in good standing would
have a material adverse effect on the Company.  The Company is not in
violation of any of the provisions of its certificate of incorporation or
by-laws.  No consent, approval or agreement of any individual or
entity is required to be obtained by the Company in
connection with this Agreement.

    

    (i)           There is no private or governmental action, suit,
proceeding, claim, arbitration or investigation pending before any agency, court
or tribunal, foreign or domestic, or, to the Company’s best
knowledge, threatened against the Company or any of
its properties or any of its officers or directors (in their capacities as
such).  There is no judgment, decree or order against the Company that could
prevent, enjoin, alter or delay any of the transactions contemplated by this
Agreement.

    

    (j)           There are no material claims, actions, suits,
proceedings, inquiries, labor disputes or investigations (whether or not
purportedly on behalf of the Company) pending
or, to the Company’s  knowledge, threatened against the Company or any of
its assets, at law or in equity or by or before any governmental entity or in
arbitration or mediation.  No bankruptcy, receivership or debtor
relief proceedings are pending or, to the best of the Company’s
knowledge, threatened against the Company.

    

    (k)          Other
than with respect to the filing of tax returns, the Company has
complied with, is not in violation of, and has not received any notices of
violation with respect to, any federal, state, local or foreign laws, judgment,
decree, injunction or order, applicable to it, the conduct of its business, or
the ownership or operation of its business.    References in
this Agreement to “Laws” shall refer to any laws, rules or regulations of any federal, state or local
government or any governmental or quasi-governmental agency, bureau, commission,
instrumentality or judicial body
(including, without limitation, any federal or state securities law, regulation,
rule or administrative order).

     

     (l)          All representations, covenants and warranties of the
Company contained in this Agreement shall be true and correct
on and as of the Closing date with the same effect as though the same had been
made on and as of such date.

    

    (m)         The Company has the
corporate power, authority and capacity to carry on its business as presently
conducted.

     

    ARTICLE
4

     

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    4.           Representations
and Warranties of Buyer.  Each Purchaser hereby represents and
warrants to the Company only as to such Purchaser as follows:

    
      
         

      

      
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    (a)  Organization;
Authority.  Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with full right, corporate or partnership power and authority to
enter into and to consummate the transactions contemplated by this
Agreement   and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and performance by
Purchaser of the transactions contemplated by this Agreement have been duly
authorized by all necessary corporate or similar action on the part of
Purchaser.  This Agreement has been duly executed by Purchaser, and
when delivered by Purchaser in accordance with the terms hereof, will constitute
the valid and legally binding obligation of Purchaser, enforceable against it in
accordance with its terms, except: (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights
generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

     

    (b)  Own
Account.  Purchaser understands that the Securities are
“restricted securities” and have not been registered under the Securities Act of
1933, as amended (the “Securities Act”) or any applicable state securities law
and is acquiring the Securities as principal for its own account and not with a
view to or for distributing or reselling such Securities or any part thereof in
violation of the Securities Act or any applicable state securities law, has no
present intention of distributing any of such Securities in violation of the
Securities Act or any applicable state securities law and has no direct or
indirect arrangement or understandings with any other persons to distribute or
regarding the distribution of such Securities (this representation and warranty
not limiting Purchaser’s right to sell the Securities pursuant to an effective
registration statement  or otherwise in compliance with applicable
federal and state securities laws) in violation of the Securities Act or any
applicable state securities law.

     

    (c)  Purchaser
Status.  At the time Purchaser was offered the Securities, it
was, as of the date hereof it is, as of the date of each Closing and when it
converts any portion of the Debentures or when it exercises any portion of the
Warrant it will be either: (i) an “accredited investor” as defined in Rule
501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a
“qualified institutional buyer” as defined in Rule 144A(a) under the Securities
Act.  Purchaser is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act.  Purchaser has (i) a preexisting
personal or business relationship with the Company or one or more of its
directors, officers or control persons or (ii) by reason of Purchaser’s business
or financial experience Purchaser is capable of evaluating the risks and merits
of this investment and of protecting Purchaser’s own interests in connection
with an investment in the Securities.

     

    (d)  Experience of
Purchaser.  Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment.  Purchaser is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to
afford a complete loss of such investment.

     

    (e)  General
Solicitation.  Purchaser is not purchasing the Securities as a
result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

     

    (f)  Receipt of
Information.  Purchaser believes it has received all the information
it considers necessary or appropriate for deciding whether to purchase the
Securities.  Purchaser further represents that through its
representatives it has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of the
Securities and the business, properties and financial condition of the Company
and to obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense)
necessary to verify the accuracy of any information furnished to it or to which
it had access.  The foregoing, however, does not limit or modify the
representations and warranties of the Company in Section 3 of this Agreement or
the right of Purchaser to rely thereon.

    
      
         

      

      
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    ARTICLE
5

     

    MISCELLANEOUS

     

    5.1 Debenture
and  Warrant Dated February 16, 2010 and Debenture and Warrant dated
March 23, 2010.   Reference is made to the (i) Debenture
dated February 16, 2010 (the “February 2010 Debenture”) in the principal amount
of $100,000 issued by the Company to Granite Financial Group, LLC (“Granite”),
(ii) the Warrant dated February 16, 2010  (the “February 2010
Warrant”) to purchase 5,000,000 shares of the Company’s Common Stock issued by
the Company to Granite, (iii) the Debenture dated March 23, 2010 (the “March
2010 Debenture”) in the principal amount of $300,000 issued by the Company to
Granite and (iv) the Warrant dated March 23, 2010  (the “March 23,
2010 Warrant”) to purchase 15,000,000 shares of the Company’s Common
Stock.   For good and valuable consideration the receipt of which
is acknowledged the Company and Granite agree that (i)  in exchange
for the February 2010 Debenture, the Company shall issue Granite a Debenture in
the form of Exhibit “D” (ii) in exchange for the March 2010 Debenture, the
Company shall issue Granite a Debenture in the Form of Exhibit “E”, (iii) in
exchange for the February Warrant 2010, the Company shall issue Granite a
Warrant in the Form of Exhibit “F”, and (iv) in exchange for the March 2010
Warrant the Company shall issue  Granite a Warrant in the form of
Exhibit “G”.   The aforementioned Debentures and Warrants will be
issued within one week of the receipt of the original February 2010 Debenture
and  February 2010 Warrant and the Original March 2010 Debenture and
March 2010 Warrant.  The parties agree that upon the issuance of the
aforementioned Debentures and Warrants the February 2010 Debenture, the February
2010 Warrant, the March 2010 Debenture and the March 2010 Warrant will be null
and void.

     

    5.2 Further
Assurances.  By its signature hereto, each party consents and
agrees to all of the transactions contemplated hereby.  Each party
hereto shall execute, deliver, file and record any and all instruments,
certificates, agreements and other documents, and take any and all other
actions, as reasonably requested by any other party hereto in order to
consummate the transactions contemplated hereby and, in the case of the Company,
to ensure that each Purchaser receive in full the benefits of the equity
interests to which it is entitled hereby.

     

    5.3 Notices.  All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given or made if (i) sent by
registered or certified mail, return receipt requested, postage prepaid, (ii)
hand delivered, (iii) sent by prepaid overnight carrier, with a record of
receipt or (iv) sent by facsimile (with confirmation of receipt), to the parties
at the following address (or at such other addresses as shall be specified by
the parties by like notice):

     

    (i)           To the
Company:

    American Scientific Resources,
Incorporated

    1112 Weston Road, Unit
278

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

    

    Weston, Florida, 33326

    Fax: (954) 659-3412

    Attention:  Christopher
Tirotta

    

    With a copy to:

    Sichenzia Ross Friedman Ference
LLP

    61 Broadway

    New York 10006

    Fax:  (212)
930-9725

    Attention:  David B. Manno,
Esq.

    

    (ii)          To each
Purchaser:

    Granite
Financial Group, LLC

    135
Liverpool Drive, Suite 200

    Cardiff,
California 92007

    Attention:
Daniel Schreiber

    

    Each
notice or other communication shall be deemed to have been given on the date
received.

     

    5.4         Entire
Agreement.  This Agreement constitutes the entire agreement and
supersedes all prior agreements and understandings, oral and written, between
the parties hereto with respect to the subject matter hereof.

    

    5.5         Headings.  The
section and other headings contained in this Agreement are for reference
purposes only and shall not be deemed to be a part of this Agreement or to
affect the meaning or interpretation of this Agreement.

    

    5.6         Counterparts.  This
Agreement may be executed in any number of counterparts, each of which, when
executed, shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument.

    

    5.7         Governing
Law and Jurisdiction.  This Agreement shall be construed as to
both validity and performance and enforced in accordance with and governed by
the laws of the State of New York, without giving effect to the conflicts of law
principles thereof. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the civil or state courts of New York or in the federal courts located in the
State of New York.  The parties executing this Agreement and other
agreements referred to herein or delivered in connection herewith on behalf of
the Company agree to submit to the jurisdiction of such courts.

    

    5.8         Severability.  If
any term or provision of this Agreement shall to any extent be invalid or
unenforceable, the remainder of this Agreement shall not be affected thereby,
and each term and provision of the Agreement shall be valid and enforced to the
fullest extent permitted by law.

    

    5.9         Amendments.  This
Agreement may not be modified or changed except by an instrument or instruments
in writing executed by the parties hereto.

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the date first written above

     

    
      
        
          
            
              	 
      	
                      THE
    COMPANY:

                    
	 	 
	
                      AMERICAN
      SCIENTIFIC RESOURCES, INCORPORATED

                    
	 
	 
      	
                      By:

                    	
                         

                    
	 
      	
                      Name:  Christopher
      F. Tirotta, MD, MBA

                    
	 
      	
                      Title:  CEO

                    
	 
      	 
      
	 
      	
                      PURCHASERS:

                    
	 
      	 
      
	 
      	
                      GRANITE
      FINANCIAL GROUP, LLC

                    
	 
      	 
      
	 
      	
                      By:

                    	
                         

                    
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      Amount
      of Debenture: $101,000

                    
	 
      	
                      Amount
      of Warrants: 5,050,000

                    
	 
      	 
      
	 
      	
                      DANIEL
      SCHRIEBER SEP IRA

                    
	 
      	 
      
	 
      	
                      By:

                    	
                         

                    
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    
	 
      	 
      
	 
      	
                      Amount
      of Debenture: $49,000

                    
	 
      	
                      Amount
      of Warrants:
2,450,000

                    

            

          

        

      

    

     

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

    Schedule
3 (Subsidiaries)

    

    Kidz-Med,
Inc., Florida corporation

    Heartsmart,
Inc., Nevada corporation

    Ulster
Scientific, New York corporation

    
      
         

      

      
        1

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