Document:

3B2 EDGAR HTML -- c53648_preflight.htm

EXHIBIT 10.2

 

AMENDED AND RESTATED VOTING AGREEMENT

AMENDED AND
 RESTATED
 VOTING
 AGREEMENT,
 dated as of August 14, 2008 (this “Agreement”), by and among
 Wendy’s International, Inc., an Ohio corporation (“Wendy’s”),
 and the parties listed on Annex I hereto (each, a “Shareholder”).
 Capitalized terms used but not otherwise defined herein shall have the respective
 meanings ascribed to such terms in the Merger Agreement (as defined below).

WHEREAS, Wendy’s and the Shareholders entered into a Voting Agreement, dated as of April 23, 2008 and the parties now desire to amend and restate the terms of such Voting Agreement;

WHEREAS, as of the date hereof, each Shareholder is the record or beneficial holder of, and has the sole right to vote and dispose of the number of issued and outstanding Common Shares, as set
  forth opposite such Shareholder’s name on Annex I (all such Common Shares owned of record or beneficially by any Shareholder as of the date hereof, together with any Common Shares that are
  hereafter issued to or otherwise acquired by such Shareholder prior to the termination of this Agreement (including pursuant to any exercise of stock options or exercise or conversion of other
  securities, or pursuant to a stock dividend, distribution, split-up, recapitalization, combination or similar transaction), and any Shares with respect to which any Shareholder has of the date hereof, or
  acquires prior to the termination hereof, the right to exercise or direct the vote, whether by proxy or otherwise being hereinafter referred to as the “Subject Shares”);

WHEREAS, concurrently with the execution and delivery of this Agreement, Triarc Companies Inc., a Delaware corporation (“Triarc”), Merger Sub, a Delaware corporation and a wholly-owned
  subsidiary of Triarc (“Merger Sub”), and Wendy’s are entering into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), whereby, among other things in
  accordance with the applicable provisions of the Ohio General Corporation Law, Merger Sub will be merged with and into Wendy’s, with Wendy’s as the surviving corporation (the “Merger”) and as
  a result of the Merger, Wendy’s will become a wholly-owned subsidiary of Triarc; and

WHEREAS, as a condition to their willingness to enter into the Merger Agreement, Triarc and Wendy’s required that each Shareholder, and in order to induce Triarc and Wendy’s to enter into the
  Merger Agreement, each Shareholder (in such Shareholder’s capacity as a holder of the Subject Shares) has agreed to, enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below, and for other good and valuable consideration, the
  receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE 1 
AGREEMENT
 TO
 VOTE

SECTION 1.01. Voting of Subject Shares. Each Shareholder severally as to itself only agrees that, until the date this Agreement is terminated in accordance with Section 4.03, at any meeting of the
  shareholders of Wendy’s and at every adjournment or postponement thereof, such Shareholder shall, or shall cause the holder of record on any applicable record date to, vote (or cause to be voted)
  its, his or her Subject Shares:

(i) in favor of the Wendy’s Shareholder Approval;

(ii) against the approval of any matter or proposal submitted to the shareholders of Wendy’s for approval, if approval of such agreement would result in a breach in any material respect of any
  covenant, representation or warranty or any other obligation of Wendy’s under the Merger Agreement; and

(iii) against (A) merger, rights offering, reorganization, recapitalization or liquidation involving Wendy’s or any of its subsidiaries (other than the Merger), (B) a sale or transfer of a material
  amount of assets or capital stock of Wendy’s or any of its subsidiaries or (C) any action that is 

1

intended, or could reasonably be expected, to materially impede, interfere with, delay, postpone or adversely affect the Merger and the other transactions contemplated by the Merger Agreement.

SECTION 1.02. Irrevocable Proxies. In order to secure the performance of each Shareholder’s obligations under this Agreement, by entering into this Agreement and solely with respect to the
  matters described in Section 1.01, such Shareholder hereby irrevocably grants a proxy appointing Thomas F. Keller, a member of the Board of Directors of Wendy’s (the “Board”), and each of them
  (the “Proxy”) as such Shareholder’s attorney-in-fact and proxy, with full power of substitution, for and in its, his or her name, place and stead, to vote, express consent or dissent, or otherwise to
  utilize such voting power in the manner contemplated by and in accordance with Section 1.01, in such Person’s discretion, with respect to such Shareholder’s Subject Shares, in each case, until the
  termination of this Agreement in accordance with Section 4.03. Each Shareholder hereby represents that any proxies heretofore given in respect of the Subject Shares are not irrevocable, and that any
  such proxies are hereby revoked. Each Shareholder severally (and not jointly) hereby affirms that the irrevocable proxy set forth in this Section 1.02 is given in connection with the execution of the
  Merger Agreement and affirms that such irrevocable proxy is coupled with an interest and may under no circumstances be revoked, except that such irrevocable proxy shall be revoked automatically,
  without any notice or other action by any Person, upon the termination of this Agreement in accordance with Section 4.03. Each Shareholder severally (and not jointly) hereby ratifies and confirms
  all that such irrevocable proxy may lawfully do or cause to be done by virtue hereof. THE PROXY AND POWER OF ATTORNEY SET FORTH IN THIS SECTION 1.02 IS IRREVOCABLE
  AND COUPLED WITH AN INTEREST. Each Shareholder shall execute and deliver to Wendy’s any proxy cards that such Shareholder receives to vote in favor of the adoption of the Merger
  Agreement and the Merger and in favor of the Opt Out Approval.

SECTION 1.03. Company Breach. For the avoidance of doubt, each Shareholder agrees that, during the term of this Agreement the obligations of each Shareholder specified in Section 1.01 shall
  not be affected by (i) any Wendy’s Recommendation Withdrawal or (ii) any breach by Wendy’s of any of its representations, warranties, agreements or covenants set forth in the Merger Agreement.

ARTICLE 2 
REPRESENTATIONS AND
 WARRANTIES OF THE
 SHAREHOLDERS

Each Shareholder hereby represents and warrants as to itself, himself or herself, severally and not jointly, to Wendy’s as follows:

SECTION 2.01. Authorization; Binding Agreement. The execution, delivery and performance by such Shareholder of this Agreement and the consummation of the transactions contemplated hereby
  are within its, his or her legal capacity and requisite powers, and if this Agreement is being executed in a representative or fiduciary capacity, the Person signing this Agreement has full power and
  authority to execute, deliver and perform this Agreement. Assuming the due authorization, execution and delivery of this Agreement by Wendy’s, this Agreement constitutes a legal, valid and binding
  agreement of such Shareholder enforceable against such Shareholder in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
  and other Laws of general applicability relating to or affecting creditors’ rights and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
  at law).

SECTION 2.02. Non-Contravention. Other than (a) the filing by such Shareholder of any reports with the Securities and Exchange Commission required by Section 13(d) or 16(a) of the Exchange
  Act, (b) any consent, approval filing or notification which has been obtained as of the date hereof, or (c) any consent, approval, filing or notification, the failure of which to obtain, make or give
  would not impair in any material respect such Shareholder’s ability to perform its obligations under this Agreement (or the Proxy’s rights to vote such Shareholder’s Subject Shares pursuant to the
  proxy contemplated by Section 1.02), the execution and delivery of this Agreement by such Subject Shareholder does not, and the performance of the terms of this Agreement by such Shareholder
  (or the Proxy’s voting of such Shareholder’s Subject Shares pursuant to the proxy contemplated by Section 1.02) will not (1) require such Shareholder to obtain the consent or approval of, or make 

2

any filing with or notification to, any Governmental Entity, (2) require the consent or approval of any other person pursuant to any agreement, obligation or instrument binding on such Shareholder
  or its properties and assets, (3) conflict with or violate any organizational document or Law applicable to such Shareholder’s Subject Shares or such Shareholder or pursuant to which any such
  Shareholder is a party, including any voting agreement, shareholders agreement, irrevocable proxy or voting trust. Such Shareholder’s Subject Shares are not, with respect to the voting or transfer
  thereof, subject to any other agreement, including any voting agreement, shareholders agreement, irrevocable proxy or voting trust.

SECTION 2.03. Ownership of Subject Shares; Total Shares. As of the date hereof, such Shareholder is the record or beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of its, his
  or her Subject Shares free and clear of any Lien and any other limitation or restriction (including any restriction on the right to vote or otherwise transfer such Subject Shares), except as provided
  hereunder or pursuant to any applicable restrictions on transfer under the Securities Act. As of the date hereof, such Shareholder does not own, beneficially or otherwise, any shares of voting stock of
  Wendy’s other than as set forth opposite such Shareholder’s name in Annex I. There are no outstanding options or other rights to acquire from such Shareholder, or obligations of such Shareholder
  to sell or to dispose of, any shares of voting stock of Wendy’s.

SECTION 2.04. Voting Power. Each Shareholder has full voting power with respect to its, his or her Subject Shares, and full power of disposition, full power to issue instructions with respect to the
  matters set forth herein, and full power to agree to all of the matters set forth in this Agreement, in each case with respect to all of its, his or her Subject Shares.

SECTION 2.05. Reliance by Triarc and Wendy’s. Such Shareholder understands and acknowledges that each of Triarc and Wendy’s are entering into the Merger Agreement and the transactions
  contemplated therein in reliance upon such Shareholder’s execution and delivery of this Agreement.

SECTION 2.06. No Representations or Warranties. Notwithstanding anything to the contrary set forth in this Agreement, the Shareholders do not make any representations or warranties as to any
  securities of Wendy’s held by Sandell Asset Management Corp.

ARTICLE 3 
ADDITIONAL
 COVENANTS OF THE
 SHAREHOLDERS

SECTION 3.01. Transfers.

(a) Except as provided hereunder or under the Merger Agreement, from the date hereof until this Agreement is terminated in accordance with Section 4.03, no Shareholder shall, directly or
  indirectly:

(i) sell, transfer, pledge, encumber, assign or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, pledge,
  encumbrance, assignment or other disposition of, such Shareholder’s Subject Shares or any interest contained therein;

(ii) grant any proxies or powers of attorney or enter into a voting agreement or other arrangement with respect to such Shareholder’s Subject Shares, other than this Agreement; nor

(iii) enter into, or deposit such Shareholder’s Subject Shares into, a voting trust or take any other action which would, or could reasonably be expected to, result in a diminution of the voting
  power represented by any of such Shareholder’s Subject Shares; nor

(iv) commit or agree to take any of the foregoing actions.

(b) Notwithstanding anything to the contrary set forth in this Agreement, nothing in this Agreement shall restrict or limit the ability of Sandell Asset Management Corp. or its affiliates to effect
  a sale or acquisition with respect to the securities of Wendy’s.

(c) Notwithstanding anything to the contrary set forth in this Agreement, nothing in this Agreement shall restrict or limit the ability of any Shareholder to, directly or indirectly, sell or cause the
  sale of any securities of Wendy’s that are held by TCMG-MA, LLC (the “TCMG Shares”); 

3

provided, however, that if such sale of TCMG Shares shall occur on a date that is prior to the date of the Wendy’s Meeting, the purchaser of such TCMG Shares shall execute and deliver to the
  Secretary of Wendy’s a joinder to this Agreement, pursuant to which such purchaser shall accept and adopt the terms of this Agreement as if such purchaser is a Shareholder hereunder.

SECTION 3.02. Stop Order. Each Shareholder agrees that it shall authorize and request Wendy’s to notify its transfer agent that there is a stop transfer order with respect to all of the Subject
  Shares.

SECTION 3.03. Documentation and Information. Each Shareholder (i) consents to and authorizes the publication and disclosure by Triarc and Wendy’s and their affiliates of its, his or her identity
  and holding of Subject Shares and the nature of its, his or her commitments and obligations under this Agreement in any announcement or disclosure required by the SEC or other Governmental
  Entity, the Merger Agreement, or any other disclosure document in connection with the transactions contemplated by the Merger Agreement or this Agreement, and (ii) agrees promptly to give to
  Triarc and Wendy’s any information it may reasonably require for the preparation of any such disclosure documents; provided that, to the extent practicable, each such Shareholder shall have a
  reasonable opportunity to review and comment on any such announcement or disclosure prior to its publication, filing or disclosure. Each Shareholder agrees to promptly notify Triarc and Wendy’s of
  any required corrections with respect to any written information supplied by it specifically for use in any such disclosure document, if and to the extent that any shall have become false or misleading
  in any material respect.

SECTION 3.04. Additional Shares. In the event (i) of any stock dividend, stock split, recapitalization, reclassification, combination or exchange of shares of capital stock of Triarc on, of or affecting
  any Shareholder’s Subject Shares or (ii) any Shareholder becomes the beneficial owner of any additional shares of Triarc voting stock or other securities entitling the holder thereof to vote or give
  consent with respect to the matters set forth in Section 1.01 hereof, then the terms of this Agreement shall apply to the shares of capital stock or other securities of Triarc held by such Shareholder
  immediately following the effectiveness of the events described in clause (1) or such Shareholder becoming the beneficial owner thereof, as described in clause (ii), as though they were such
  Shareholder’s Subject Shares hereunder. Each Shareholder hereby agrees, while this Agreement is in effect, to notify Wendy’s of the number of any new shares of Triarc voting stock acquired by such
  Shareholder, if any, after the date hereof. No Shareholder executing this Agreement who is or becomes during the term hereof a director or officer of Triarc makes (or shall be deemed to have
  made) any agreement or understanding herein in his or her capacity as such director or officer. Without limiting the generality of the foregoing, each Shareholder signs solely in his, her or its capacity
  as the record and/or beneficial owner, as applicable, of, or holder of voting rights with respect to, the Subject Shares and nothing herein shall limit or affect any actions taken by such Shareholder (or
  a designee of such Shareholder) in his or her capacity as an officer or director of Triarc in exercising his or her or Triarc’s or the Triarc Board of Directors’ rights in connection with the Merger
  Agreement or otherwise. Subject to the foregoing, until the Merger is consummated or this Agreement is terminated in accordance with its terms, no Shareholder shall, nor shall such Shareholder
  permit any investment banker, attorney or other advisor or representative of the Shareholder to, directly or indirectly through another person, solicit, initiate or encourage, or take any other action to
  facilitate, any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Triarc Takeover Proposal; provided that any action which is permitted by the
  Merger Agreement to be taken by a shareholder in his or her capacity as a director or officer or which is permitted hereby shall not be prohibited by the foregoing.

SECTION 3.05. Standstill. The parties agree that if (i) the Merger Agreement is terminated pursuant to Section 7.1(d) thereof or (ii) the Merger does not occur as a result of the failure of the
  condition set forth in Section 6.3(f) of the Merger Agreement, then for the period beginning on the date of this Agreement and ending on the third anniversary of the date of the termination of the
  Merger Agreement (the “Standstill Period”), except as otherwise provided in this Agreement:

(a) None of (i) the Shareholders, (ii) Nelson Peltz, (iii) Peter W. May, (iv) Edward P. Garden, (v) any account or fund managed by Trian Fund Management, L.P. (“TFMLP”), (vi) any entity in 

4

which Nelson Peltz, Peter W. May or Edward P. Garden owns, or in which Nelson Peltz, Peter W. May and Edward P. Garden collectively own, directly or indirectly, a majority ownership interest,
  or (vii) any other entity controlled by or acting at the direction or request of Nelson Peltz, Peter W. May or Edward P. Garden or any of them collectively (the persons and entities identified in
  clauses (i)–(vii) collectively, the “Restricted Parties” and each individually, a “Restricted Party”), may, directly or indirectly, without the prior written consent of the Board, (A) acquire, agree to
  acquire, propose, seek or offer to acquire any securities or assets of Wendy’s or any of its subsidiaries, any warrant or option to purchase such securities or assets, any security convertible into any
  such securities, or any other right to acquire such securities, other than the purchase by any Shareholder of any such securities that were owned on the date hereof by any other person that was a
  member of a “group” (within the meaning of Section 13(d)(3) of the Exchange Act with any Shareholder with respect to the Company on the date hereof, (B) enter, agree to enter, propose, seek or
  offer to enter into any merger, share exchange, exchange offer, liquidation, dissolution, business combination, recapitalization, restructuring, or other extraordinary transaction involving Wendy’s or
  any of its subsidiaries, (C) make, or in any way participate or engage in, any solicitation of proxies or consents to vote, or seek to advise or influence any person with respect to the voting of, any
  voting securities of Wendy’s, other than any voting rights pursuant to the Agreement, dated as of November 4, 2005 by and among Sandell Asset Management Corp and Trian Fund Management,
  L.P., and any amendments thereto, (D) form, join or in any way participate in a “group” (as defined in Section 13(d)(3) of the Exchange Act) with respect to any voting securities of Wendy’s, other
  than any Shareholder’s participation in a group with a member that was a member of a “group” (as defined in Section 13(d)(3) of the Exchange Act) on the date hereof with such Shareholder with
  respect to Wendy’s, (E) call, request the calling of, or otherwise seek or assist in the calling of a special meeting of the shareholders of Wendy’s, (F) call, request the calling of, or otherwise seek or
  assist in the calling of a special meeting of the shareholders of Wendy’s, (G) seek to make, or make, a stockholder proposal at any meeting of the stockholders of Wendy’s or make a request for a
  list of Wendy’s’ stockholders or otherwise acting alone, or in concert with others, seek to control or influence the governance or policies of Wendy’s, (H) disclose any intention, plan or arrangement
  prohibited by the foregoing, or (I) advise, assist or encourage or enter into any discussions, negotiations, agreements or arrangements with any other persons, other than officers, directors, partners,
  members, employees, advisors (including without limitation, financial and legal advisors and accountants) and representatives with respect to the foregoing. Each Restricted Party further agrees that
  during the Standstill Period it will not, directly or indirectly, without the prior written consent of the Board, (a) make any request directly or indirectly, to amend or waive any provision of this
  paragraph (including this sentence), or (b) take any action that would require Wendy’s to make a public announcement regarding the possibility of a business combination, merger or other type of
  transaction described in this paragraph. Notwithstanding the foregoing, nothing in this Section 3.06 shall be deemed to in any way restrict or limit the ability of (i) the Restricted Parties to discuss any
  matter confidentially with Wendy’s, the Board or any of its members, (ii) the Restricted Parties to take any action required by applicable law (whether or not otherwise restricted by this Section
  3.06), (iii) the Restricted Parties to communicate, on a confidential basis, with attorneys, accountants or financial advisors (excluding any such advisor who has taken any action that if taken by the
  Restricted Parties would violate this Section 3.06), (iv) Sandell Asset Management Corp. or any of its affiliates to effect a sale or acquisition with respect to the securities of Wendy’s or (v) the
  Restricted Parties to effect a sale with respect to the securities of Wendy’s.

SECTION 3.06. Standstill Termination. Section 3.05 shall be null and void and of no force or effect upon the earliest to occur of any of the following (each, a “Termination Event”), provided that
  (i) a Termination Event shall not relieve any Shareholder of any liability for breaches of the preceding paragraph occurring prior to such Termination Event and (ii) no Termination Event shall occur
  as a result of an event described in paragraphs (a) through (e) below resulting from a breach of this Agreement:

(a) the execution by Wendy’s or one of its subsidiaries of a definitive agreement with a third party and the transactions provided for in such agreement would result in any other person or group
  (as defined in Section 13(d)(3) of the Exchange Act) acquiring or entering into a definitive 

5

agreement (approved by the Board) to acquire beneficial ownership of more than 50% of the outstanding voting securities of Wendy’s or assets of Wendy’s or its subsidiaries representing more than
  50% of the consolidated earning power of Wendy’s and its subsidiaries (a “Business Combination”);

(b) any other person or group (as defined in Section 13(d)(3) of the Exchange Act) acquires beneficial ownership of more than 50% of the outstanding voting securities of the Company or assets
  of the Company or its subsidiaries representing beneficial ownership of more than 50% of the consolidated earning power of the Company and its subsidiaries;

(c) the commencement by any other person or group (as defined in Section 13(d)(3) of the Exchange Act), other than by one or more of a Restricted Party’s affiliates, of a bona fide tender or
  exchange offer to acquire beneficial ownership of more than 50% of the outstanding voting securities of Wendy’s (a “Tender Offer”);

(d) any merger, consolidation, share exchange, recapitalization or other business combination, the effect of which would result in the current shareholders of Wendy’s failing to own a majority of
  the outstanding shares of the surviving company; and

(e) any liquidation, dissolution or sale of all or substantially all of the assets of Wendy’s, in each case that is subject to Wendy’s shareholder approval.

SECTION 3.07. Certain Director Matters. The Shareholders hereby acknowledge that Messrs. Rothschild and Oran have submitted their resignation from the Board, which shall be effective, without
  further action, immediately upon the earlier of (i) termination of the Merger Agreement pursuant to Section 7.1(d) thereof or (ii) termination of the Merger Agreement as a result of the failure of
  the condition set forth in Section 6.3(f) thereof.

ARTICLE 4 
MISCELLANEOUS

SECTION 4.01. Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, by facsimile, receipt confirmed,
  or on the next Business Day when sent by overnight courier or on the second succeeding Business Day when sent by registered or certified mail (postage prepaid, return receipt requested) to the
  respective parties at the following addresses (or at such other address for a party as shall be specified by like notice):

if to Wendy’s to:

Wendy’s International, Inc.
One Dave Thomas Blvd.
Dublin, Ohio 43017
Telecopy:
Attention: General Counsel

with a copy to:

Akin Gump Strauss Hauer & Feld LLP 
Robert S. Strauss Building 
1333 New Hampshire Avenue, NW 
Washington, DC 20036 
Telecopy: (202) 887-4288 
Attention: Rick L. Burdick, Esq. 
                       J. Steven Patterson, Esq.

6

and with a copy to counsel for the Special Committee:

Baker & Hostetler LLP 
3200 National City Center 
1900 East 9th Street 
Cleveland, Ohio 44114-3485 
Telecopy: (216) 696-0740 
Attention: Robert A. Weible, Esq. 
                       Matthew A. Tenerowicz, Esq.

if to any Shareholder, to him or her at the address specified on Annex I, with a copy to:

Cadwalader, Wickersham & Taft LLP
One World Financial Center 
New York, New York 10281 
Facsimile: (212) 504-6666 
Attention: Dennis J. Block, Esq.

SECTION 4.02. Further Assurances. Each Shareholder shall, from time to time, execute and deliver, or cause to be executed and delivered, such additional or further transfers, assignments,
  endorsements and other instruments as Wendy’s may reasonably request to carry out the transactions contemplated by this Agreement.

SECTION 4.03. Termination.

(a) Except for the provisions set forth in Section 3.05 and 3.06 of this Agreement, this Agreement shall terminate automatically, without any notice or other action by any Person, upon the
  earlier of (i) the termination of the Merger Agreement in accordance with its terms and (ii) the Effective Time.

(b) In the event of the termination of this Agreement pursuant to this Section 4.03, this Agreement shall become void and of no effect with no liability on the part of any party hereto; provided, however, no such termination shall relieve any party hereto from any liability for any material breach of this Agreement occurring prior to such termination.

SECTION 4.04. Survival of Representations and Warranties. The representations and warranties contained herein and in any certificate or other writing delivered pursuant hereto shall not survive the
  Effective Time.

SECTION 4.05. Amendments and Waivers.

(a) Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement and
  Triarc or, in the case of a waiver, by each party against whom the waiver is to be effective and Triarc.

(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
  further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by
  applicable Law.

SECTION 4.06. Expenses. Except as otherwise provided herein or in the Merger Agreement, all costs and expenses incurred in connection with this Agreement shall be paid by the party incurring
  such cost or expense.

SECTION 4.07. Binding Effect; Intended Third Party Beneficiary; Assignment;

(a) The provisions of this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors, heirs, personal representatives, administrators,
  executors and permitted assigns. No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations or liabilities hereunder upon any Person other than the parties hereto
  and their successors, heirs, personal representatives, administrators, executors and permitted assigns; provided that, Triarc is an intended third party beneficiary of, with the right to enforce, the
  obligations of the Shareholders under this Agreement.

7

(b) No party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of each other party hereto.

SECTION 4.08. Governing Law; Jurisdiction. This Agreement is for the benefit of and may be enforced by the parties hereto and its and their respective directors, officers, shareholders, affiliates,
  employees and agents and be governed by and construed in accordance with Ohio law without regard to conflicts of law principles. The parties hereto also hereby irrevocably and unconditionally
  consent to submit to the exclusive jurisdiction of the courts of the State of Ohio and of the United States of America located in the State of Ohio for any actions, suits or proceedings arising out of
  or relating to this Agreement and the transactions contemplated hereby. The parties hereto also agree not to commence any action, suit or proceeding arising out of or relating to this Agreement
  except in such courts and that service of any process, summons, notice or document by U.S. registered mail to your address as set forth above shall be effective service of process for any action, suit
  or proceeding brought against you in any such court. The parties hereto hereby irrevocably and unconditionally waive any objection to the laying of venue of any action, suit or proceeding arising out
  of or relating to this Agreement and the transactions contemplated hereby in the courts of the State of Ohio and of the United States of America located in the State of Ohio, and irrevocably and
  unconditionally waive and agree not to plead or claim in any such court that any action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

SECTION 4.09. Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
  PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

SECTION 4.10. Counterparts: Effectiveness. This Agreement may be executed in two or more consecutive counterparts (including by facsimile), each of which shall be an original, with the same
  effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties and delivered (by
  telecopy or otherwise) to the other parties.

SECTION 4.11. Entire Agreement. This Agreement constitutes the entire agreement among the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and
  understandings, both oral and written, among the parties with respect to its subject matter.

SECTION 4.12. Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the sole extent of such
  invalidity or unenforceability without rendering invalid or unenforceable the remainder of such term or provision or the remaining terms and provisions of this Agreement in any jurisdiction. If any
  provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

SECTION 4.13. Specific Performance. The parties hereto agree that irreparable damage would occur in the event any of the provisions of this Agreement were not performed in accordance with
  their specific terms or were otherwise breached, and that there would not be an adequate remedy at law for money damages in such event. Accordingly, it is agreed that the parties hereto shall be
  entitled to specific performance and injunctive and other equitable relief to prevent breaches or threatened breaches of this Agreement or to enforce specifically the performance of the terms and
  provisions hereof, without the need to post bond or other security, in addition to any other remedy to which they are entitled at law or in equity.

SECTION 4.14. Shareholder Obligations Several and not Joint. The obligations of each Shareholder hereunder shall be several and not joint, and no Shareholder shall be liable for any breach of the
  terms of this Agreement by any other Shareholder. The failure of any Shareholder to execute and deliver this Agreement shall in no way affect the obligations of any other Shareholder hereunder.

SECTION 4.15. Interpretation. When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. The headings contained
  in this Agreement are for reference purposes only and shall not affect in any way the meaning or 

8

interpretation of this Agreement. Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

SECTION 4.16. No Presumption Against Drafter. Each of the parties hereto has jointly participated in the negotiation and drafting of this Agreement. In the event of an ambiguity or a question of
  intent or interpretation arises, this Agreement shall be construed as if drafted jointly by each of the parties hereto and no presumptions or burdens of proof shall arise favoring any party hereto by
  virtue of the authorship of any of the provisions of this Agreement.

[Remainder of page intentionally left blank]

9

IN
 WITNESS
 WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

WENDY’S
 INTERNATIONAL, INC.

	
      By: 
	 	
    /s/ L. M. MCCORKLE, JR.

    

Name: L.M. McCorkle, Jr.
Title: Executive Vice President,

           General Counsel & Secretary

       

    

TRIAN
 PARTNERS
 MASTER
 FUND, L.P.

By: Trian Partners GP, L.P., its general partner

By: Trian Partners General Partner, LLC, its general partner

	
      By: 
	 	
    /s/ PETER W. MAY

    

Name: Peter W. May
Title: Member

       

    

TRIAN
 PARTNERS GP, L.P.

	
      By: 
	 	
    /s/ PETER W. MAY

    

Name: Peter W. May
Title: Member

       

    

TRIAN
 PARTNERS, L.P.

By: Trian Partners GP, L.P., its general partner

By: Trian Partners General Partner, LLC, its general partner

	
      By: 
	 	
    /s/
      PETER W. MAY

    

Name: Peter
    W. May

    Title:  Member

       

    

TRIAN
 PARTNERS
 PARALLEL
 FUND I, L.P.

By: Trian Partners GP, L.P., its general partner

By: Trian Partners General Partner, LLC, its general partner

	
      By: 
	 	
    /s/
      PETER W. MAY

    

Name: Peter
    W. May

    Title:  Member

       

    
	

10

TRIAN
 PARTNERS
 PARALLEL
 FUND II, L.P.

By: Trian Partners GP, L.P., its general partner

By: Trian Partners General Partner, LLC, its general partner

	
      By: 
	 	
    /s/
      PETER W. MAY

    

Name: Peter
    W. May

    Title:  Member

       

    

TRIAN
 FUND
 MANAGEMENT, L.P.

By: Trian Fund Management GP, LLC, its general partner

	
      By: 
	 	
    /s/
      PETER W. MAY

    

Name: Peter
    W. May

Title: Member

       

    

	
     

    /s/ NELSON PELTZ

Nelson Peltz

       

    

	
     

    /s/ PETER W. MAY

Peter W. May

       

    

	
     

    /s/ EDWARD P. GARDEN

Edward P. Garden

       

    
	 

11

ANNEX I
Record or Beneficial Ownership of the Voting Shares

	 
	 
	 
	 
	 
	 
	 

	

Shareholder

	 	

      Shares of
Voting Stock Directly
Beneficially Owned
	 	

      Warrants/Options to
Acquire Voting Stock
	 	

      Notes Exchangeable
for Voting Stock

	

Trian Partners Master Fund, L.P.

	 	

      
	 	

      3,261,527 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 
	

Trian Partners GP, L.P.

	 	

      
	 	

      5,958 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 
	

Trian Partners, L.P.

	 	

      
	 	

      952,519 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 
	

Trian Partners Parallel Fund I, L.P.

	 	

      
	 	

      135,712 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 
	

Trian Partners Parallel Fund II, L.P.

	 	

      
	 	

      30,751 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 
	

Trian Fund Management, L.P.

	 	

      
	 	

      251,320 Shares
	 	 	

      
	 	

      0
	 	 	

      
	 	

      0
	 

12c54638_ex4-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 4.1

NEITHER THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN
SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. 

NANOSCIENCE TECHNOLOGIES, INC.

 SECURED CONVERTIBLE DEBENTURE 

	 	
	
Issuance Date: July 31, 2008		 		
Original Principal Amount:   
$61,000	
	
No. NANS-6-1		 		 	

                       FOR VALUE RECEIVED, Nanoscience Technologies, Inc., a Nevada corporation (the "Company"), hereby promises to pay to the order of YA GLOBAL INVESTMENTS, L.P. or its registered assigns (the "Holder") the amount set out above as the Original Principal
Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the "Principal") when due, whether upon the Maturity Date (as defined below),
acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest ("Interest") on any outstanding Principal at the applicable
Interest Rate from the date set out above as the Issuance Date (the "Issuance Date") until the same becomes due and payable, whether upon the Maturity Date or acceleration,
conversion, redemption or otherwise (in each case in accordance with the terms hereof).  This Secured Convertible Debenture including all Secured Convertible Debentures issued in exchange, transfer or replacement hereof, is referred to as the
"Debenture". Certain capitalized terms used herein are defined in Section 16. 

               (1)     GENERAL TERMS 

                       (a)     Payment of Principal. On the Maturity Date, the Company shall pay to the
Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest. The "Maturity Date" shall be July __, 2009, as may be extended at the option of
the Holder (i) in the event that, and for so long as, an Event of Default (as defined below) shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or any event shall have occurred and be
continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with the passage of time and the failure to cure would result in an Event of Default. Other than as specifically permitted by this Debenture, the Company may not
prepay or redeem any portion of the outstanding Principal without the prior written consent of the Holder. 

                       (b)     Interest. Interest shall accrue on the outstanding principal balance hereof at
an annual rate equal to 14% (“Interest Rate”). Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent
permitted by applicable law. Interest hereunder shall be paid on the Maturity Date (or sooner as provided herein) to the Holder or its assignee in whose name this Debenture is registered on the records of the Company regarding registration and
transfers of Debentures at the option of the Company in cash, or, provided that the Equity Conditions are then satisfied converted into Common Stock at the applicable Conversion Price on the Trading Day immediately prior to the date paid.

                       (c)     Security.  The Debenture is secured by the Pledged Property as defined in the
Security Agreement (the “Security Agreement”) between the Company and the Holder dated July 28, 2006.

                       (d)     Use of Proceeds. The proceeds to the Company in exchange for the
Company’s issuance of this Debenture will be disbursed to the parties and in the amounts set forth on Exhibit A hereto. The Company acknowledges that it will receive no
proceeds from the issuance of this Debenture. 

               (2)     EVENTS OF DEFAULT.

                       (a)      An “Event
      of Default”, wherever
used herein, means any one of the following events (whatever the reason and whether
      it shall be voluntary or involuntary or effected by operation of law or
      pursuant to any judgment, decree or order of any court, or any order, rule
      or regulation of  any administrative or governmental body): 

                                 (i)            The Company's failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under
this Debenture (including, without limitation, the Company's failure to pay any redemption payments or amounts hereunder) or any other Transaction Documents; 

                                 (ii)           The
    Company or any subsidiary of the Company shall commence, or there shall be
    commenced against the Company or any  subsidiary of the Company under any
    applicable bankruptcy or insolvency laws as now or hereafter in effect or
    any successor thereto, or the Company or any subsidiary of the Company commences
    any other proceeding under any reorganization,  arrangement, adjustment of
    debt, relief of debtors, dissolution, insolvency or liquidation or similar
    law of any jurisdiction whether now or hereafter in effect relating to the
    Company or any subsidiary of the Company or there is commenced against  the
    Company or any subsidiary of the Company any such bankruptcy, insolvency
    or other proceeding which remains undismissed for a period of 61 days; or
    the Company or any subsidiary of the Company is adjudicated insolvent or
    bankrupt; or any order of  relief or other order approving any such case
    or proceeding is entered; or the Company or any subsidiary of the Company
    suffers any appointment of any custodian, private or court appointed receiver
    or the like for it or any substantial part of its  property which continues
    undischarged or unstayed for a period of 61 days; or the Company or any subsidiary
    of the Company makes a general assignment for the benefit of creditors; or
    the Company or any subsidiary of the Company shall fail to pay, or  shall
    state that it is unable to pay, or shall be unable to pay, its debts generally
    as they become due; or the Company or any subsidiary of the Company shall
    call a meeting of its 

2

creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval of
or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the foregoing; 

                                 (iii)            The Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or
any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any
long term leasing or factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable; 

                                 (iv)            If the Common Stock is quoted or listed for trading on any of the following and it ceases to be so quoted or listed
for trading and shall not again be quoted or listed for trading on any Primary Market within 5 Trading Days of such delisting: (a) the American Stock Exchange, (b) New York Stock Exchange, (c) the Nasdaq Global Market, (d) the Nasdaq Capital Market,
or (e) the Nasdaq OTC Bulletin Board (“OTCBB”) (each, a “Primary Market”); 

                                 (v)       The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in
Section 6) unless in connection with such Change of Control Transaction this Debenture is retired;

                                 (vi)     The Company's (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock
within 5 Business Days after the applicable Conversion Failure or (B) notice, written or oral, to any holder of the Debentures, including by way of public announcement, at any time, of its intention not to comply with a request for conversion of any
Debentures into shares of Common Stock that is tendered in accordance with the provisions of the Debentures, other than pursuant to Section 4(c); 

                                 (vii)     The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within
3 Business Days after such payment is due;

                                 (viii)     The Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise
commit any breach or default of any provision of this Debenture (except as may be covered by Section 2(a)(i) through 2(a)(vii) hereof) or any Transaction Document which is not cured within the time prescribed. 

                       (b)     During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred, the full
unpaid Principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date of acceleration shall become at the Holder's election, immediately due and payable in cash; provided however, the
Holder

3

may request (but shall have no obligation to request) payment of such amounts in Common Stock of the Company. Furthermore, in addition to any other remedies, the Holder shall have the right (but not the obligation) to
convert this Debenture at any time after (x) an Event of Default or (y) the Maturity Date at the Conversion Price. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, (other than
required notice of conversion) and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be
rescinded and annulled by Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

               (3)     REDEMPTION. The Company at its option shall have the right to redeem
(“Optional Redemption”) a portion or all amounts outstanding under this Debenture prior to the Maturity Date provided that as of the date of the Holder’s receipt
of a Redemption Notice (as defined herein) (i) the Closing Bid Price is less than the Fixed Conversion Price and (ii) there is no Equity Conditions Failure. The Company shall
pay an amount equal to the principal amount being redeemed plus a redemption premium (“Redemption Premium”) equal to 15% of the Principal amount being redeemed, and
accrued Interest, (collectively referred to as the “Company Additional Redemption Amount”).
In order to make a redemption pursuant to this Section, the Company shall first provide written notice to the Holder of its intention to make a redemption (the “Redemption Notice”) setting forth the amount of Principal it desires to redeem. After receipt of the Redemption Notice the Holder shall have 3 Business Days to elect to convert all or any portion of this Debenture, subject to the limitations set
forth in Section 4(b). On the 4th Business Day after the Redemption Notice, the Company shall deliver to the Holder the Company Additional Redemption Amount with respect to the Principal amount redeemed after giving effect to conversions effected
during the 3 Business Day period. 

               (4)     CONVERSION OF DEBENTURE. This Debenture shall be convertible into shares of
the Company's Common Stock, on the terms and conditions set forth in this Section 4. 

                       (a)     Conversion Right. Subject to the provisions of Section 4(c), at any time or
times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section 4(b), at
the Conversion Rate (as defined below). The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 4(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the
"Conversion Rate"). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a
share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery
of Common Stock upon conversion of any Conversion Amount.

                                 (i)     "Conversion Amount" means the portion of the
Principal and accrued Interest to be converted, redeemed or otherwise with respect to which this determination is being made. 

4

                                 (ii)     "Conversion Price" means, as of any
Conversion Date (as defined below) or other date of determination, the lesser of (a) $0.009 (the “Fixed Conversion Price”), subject to adjustment as provided herein,
or (b) 80% of the lowest Volume Weighted Average Price during the 30 Trading Days immediately preceding the Conversion Date (the “Market Conversion Price”).

                        (b)     Mechanics
of Conversion. 

                                 (i)     Optional Conversion. To convert any Conversion Amount into shares of Common
Stock on any date (a "Conversion Date"), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time, on such date,
a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the "Conversion Notice") to the Company and (B) if required by Section 4(b)(iv), surrender this Debenture to a nationally recognized overnight delivery service for delivery to the Company (or an indemnification undertaking reasonably satisfactory to the
Company with respect to this Debenture in the case of its loss, theft or destruction).  On or before the 3rd Business Day following the date of receipt of a Conversion Notice (the "Share Delivery
Date"), the Company shall (X) if legends are not required to be placed on certificates of Common Stock pursuant to Section 4(b)(iv) hereof and provided that the Transfer Agent is participating in the Depository
Trust Company's ("DTC") Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's
or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required
pursuant to Section 4(b)(iv) hereof. If this Debenture is physically surrendered for conversion and the outstanding Principal of this Debenture is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as
soon as practicable and in no event later than 3 Business Days after receipt of this Debenture and at its own expense, issue and deliver to the holder a new Debenture representing the outstanding Principal not converted. The Person or Persons
entitled to receive the shares of Common Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.

                                 (ii)     Company's Failure to Timely Convert. If within 3 Trading Days after the
Company's receipt of the facsimile copy of a Conversion Notice the Company shall fail to issue and deliver a certificate to the Holder or credit the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is
entitled upon such holder's conversion of any Conversion Amount (a "Conversion Failure"), and if on or after such Trading Day the Holder purchases (in an open market
transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company (a "Buy-In"), then the Company shall, within 3 Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase
price (including brokerage commissions and other out of pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In Price"), at which point the Company's obligation to deliver such 

5

certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder in an
amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on the Conversion Date. 

                                 (iii)     Book-Entry. Notwithstanding anything to the contrary set forth herein, upon
conversion of any portion of this Debenture in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless (A) the full Conversion Amount represented by this Debenture is being
converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical surrender of this Debenture.  The Holder and the Company shall
maintain records showing the Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Debenture upon
conversion. 

                                 (iv)     Legends. So long as is required by this Section 4(b)(iii), a restrictive
legend in substantially the following form will be printed on the shares of Common Stock issuable upon conversion of this Debenture: 

  
    
      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES
        AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

  

Certificates evidencing shares of Common Stock issued upon conversion of this Debenture shall not contain any legend (including the legend set forth above), (i) while a registration statement covering the resale of such
security is effective under the Securities Act, (ii) following any sale of such shares of Common Stock issuable upon conversion of this Debenture pursuant to Rule 144, (iii) if such shares of Common Stock are eligible for sale under Rule 144, or
(iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Company shall cause its counsel to issue a legal opinion to the
Company’s transfer agent promptly after the effective date (the “Effective Date”) of a registration statement if required by the Company’s transfer agent to
effect the removal of the legend hereunder. If all or any portion of this Debenture is exercised by a Buyer that is not an Affiliate of the Company (a “Non-Affiliated Buyer”) at a time

6

when there is an effective registration statement to cover the resale of the shares of Common Stock issued upon conversion of this Debenture, such shares of Common Stock shall be issued free of all legends. The Company
agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4(b)(iv), it will, no later than 3 Trading Days following the delivery by a Non-Affiliated Buyer to the Company or the Company’s
transfer agent of a certificate representing shares of Common Stock issued upon conversion of this Debenture with a restrictive legend (such 3rd Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to such Non-Affiliated Buyer a certificate representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions
to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section.

                        (c)     Limitations on Conversions. 

                            (i)     Beneficial
      Ownership. The Company shall not effect
      any conversions of this  Debenture and the Holder shall not have the right
      to convert any portion of this Debenture or receive shares of Common Stock
      as payment of interest hereunder to the extent that after giving effect
      to such conversion or receipt of such interest  payment, the Holder, together
      with any affiliate thereof, would beneficially own (as determined in accordance
      with Section 13(d) of the Exchange Act and the rules promulgated thereunder)
      in excess of 4.99% of the number of shares of Common Stock  outstanding
      immediately after giving effect to such conversion or receipt of shares
      as payment of interest. Since the Holder will not be obligated to report
      to the Company the number of shares of Common Stock it may hold at the
      time of a conversion  hereunder, unless the conversion at issue would result
      in the issuance of shares of Common Stock in excess of 4.99% of the then
      outstanding shares of Common Stock without regard to any other shares which
      may be beneficially owned by the Holder or an  affiliate thereof, the Holder
      shall have the authority and obligation to determine whether the restriction
      contained in this Section will limit any particular conversion hereunder
      and to the extent that the Holder determines that the limitation  contained
      in this Section applies, the determination of which portion of the principal
      amount of this Debenture is convertible shall be the responsibility and
      obligation of the Holder. If the Holder has delivered a Conversion Notice
      for a principal  amount of this Debenture that, without regard to any other
      shares that the Holder or its affiliates may beneficially own, would result
      in the issuance in excess of the permitted amount hereunder, the Company
      shall notify the Holder of this fact and  shall honor the conversion for
      the maximum principal amount permitted to be converted on such Conversion
      Date in accordance with Section 4(a) and, any principal amount tendered
      for conversion in excess of the permitted amount hereunder shall remain
       outstanding under this Debenture. The provisions of this Section may be
       waived by a Holder (but only as to itself and not to any other Holder)
       upon not less than 65 days prior notice to the Company. Other Holders
       shall be unaffected by any such  waiver. 

                        (d)     Other Provisions. 

                            (i)     The
    Company shall at all times reserve and keep available out of its authorized
    Common Stock the full number of shares  of Common Stock issuable upon conversion
    of all outstanding amounts under this Debenture; and within 3 Business Days
    following the receipt by the Company of a Holder's notice that such minimum
    number of 

7

Underlying Shares is not so reserved, the Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement. 

                                (ii)     All calculations
under this Section 4 shall be rounded to the nearest $0.0001 or whole share.

                                (iii)    The
    Company covenants that it will at all times reserve and keep available out
    of its authorized and unissued shares  of Common Stock solely for the purpose
    of issuance upon conversion of this Debenture and payment of interest on
    this Debenture, each as herein provided, free from preemptive rights or any
    other actual contingent purchase rights of persons other than  the Holder,
    not less than such number of shares of the Common Stock as shall (subject
    to any additional requirements of the Company as to reservation of such shares
    set forth in this Debenture or in the Transaction Documents) be issuable
    (taking  into account the adjustments and restrictions set forth herein)
    upon the conversion of the outstanding principal amount of this Debenture
    and payment of interest hereunder. The Company covenants that all shares
    of Common Stock that shall be so  issuable shall, upon issue, be duly and
    validly authorized, issued and fully paid, nonassessable and, if the Underlying
    Shares Registration Statement has been declared effective under the Securities
    Act, registered for public sale in accordance with  such Underlying Shares
    Registration Statement. 

                                (iv)     Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to
Section 2 herein for the Company 's failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to
enforce damages pursuant to any other Section hereof or under applicable law.

               (5)     Adjustments to Conversion Price 

                        (a)     Adjustment of Conversion Price upon Issuance of Common Stock. If the Company,
at any time while this Debenture is outstanding, issues or sells, or in accordance with this Section 5(a) is deemed to have issued or sold, any shares of Common Stock for a consideration per share (the “New
Issuance Price”) less than a price equal to the Conversion Price in effect immediately prior to such issue or sale (such price the "Applicable Price") (the foregoing a "Dilutive Issuance"), then immediately after such Dilutive Issuance the Conversion Price then in effect shall be reduced to an amount equal to
the New Issuance Price. For purposes of determining the adjusted Conversion Price under this Section 5(a), the following shall be applicable: 

                                (i)     Issuance
      of Options. If the Company in any
      manner grants or sells any Options  and the lowest price per share for
      which one share of Common Stock is issuable upon the exercise of any such
      Option or upon conversion or exchange or exercise of any Convertible Securities
      issuable upon exercise of such Option is less than the  Applicable Price,
      then such share of Common Stock shall be deemed to be outstanding and to
      have been issued and sold by the Company at the time of the granting or
      sale of such Option for such price per 

8

share. For purposes of this Section, the "lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon granting or sale of the Option, upon exercise
of the Option and upon conversion or exchange or exercise of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock or of
such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Common Stock upon conversion or exchange or exercise of such Convertible Securities. 

                                (ii)     Issuance of Convertible Securities. If the Company in any manner issues or
sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange or exercise thereof is less than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share.  For the purposes of this Section, the "lowest price per share for which one share of
Common Stock is issuable upon such conversion or exchange or exercise" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the issuance or
sale of the Convertible Security and upon the conversion or exchange or exercise of such Convertible Security. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock upon conversion or
exchange or exercise of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of the Conversion Price had been or are to be made pursuant to other
provisions of this Section, no further adjustment of the Conversion Price shall be made by reason of such issue or sale. 

                                (iii)     Change in Option Price or Rate of Conversion.  If the purchase price
provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exchangeable or
exercisable for Common Stock changes at any time, the Conversion Price in effect at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options or Convertible Securities provided
for such changed purchase price, additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section, if the terms of any Option or Convertible Security that was
outstanding as of the Issuance Date are changed in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be
deemed to have been issued as of the date of such change. No adjustment shall be made if such adjustment would result in an increase of the Conversion Price then in effect. 

                                (iv)     Calculation of Consideration Received. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been
issued for the difference

9

of (x) the aggregate fair market value of such Options and other securities issued or sold in such integrated transaction, less (y) the fair market value of the securities other than such Option, issued or sold in such
transaction and the other securities issued or sold in such integrated transaction will be deemed to have been issued or sold for the balance of the consideration received by the Company. If any Common Stock, Options or Convertible Securities are
issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the gross amount raised by the Company; provided, however, that such gross amount is not greater than 110% of the net amount
received by the Company therefor. If any Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company will be the fair value of such
consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the Closing Bid Price of such securities on the date of receipt. If any Common Stock, Options or
Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the
net assets and business of the non-surviving entity as is attributable to such Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or securities will be determined jointly by the
Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "Valuation Event"), the
fair value of such consideration will be determined within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable
appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be deemed binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company. 

                                (v)     Record Date. If the Company takes a record of the holders of Common Stock for
the purpose of entitling them (A) to receive a dividend or other distribution payable in Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date
will be deemed to be the date of the issue or sale of the Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or
purchase, as the case may be. 

                       (b)     Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company, at any time while this Debenture is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d)
issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record
date for the determination of

10

stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

                       (c)     Purchase Rights.  If at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the "Purchase Rights"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock
acquirable upon complete conversion of this Debenture (without taking into account any limitations or restrictions on the convertibility of this Debenture) immediately before the date on which a record is taken for the grant, issuance or sale of
such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 

                       (d)     Other Events.  If any event occurs of the type contemplated by the provisions
of this Section 4 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's Board of Directors will
make an appropriate adjustment in the Conversion Price so as to protect the rights of the Holder under this Debenture; provided that no such adjustment will increase the Conversion Price as otherwise determined pursuant to this Section 5.

                       (e)     Other Corporate Events. In addition to and not in substitution for any other
rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a
"Corporate Event"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon a conversion of this Debenture, at the
Holder's option, (i) in addition to the shares of Common Stock receivable upon such conversion, such securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock
been held by the Holder upon the consummation of such Corporate Event (without taking into account any limitations or restrictions on the convertibility of this Debenture) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such
conversion, such securities or other assets received by the holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Debenture initially
been issued with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence shall
be in a form and substance satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to successive Corporate Events and shall be applied without regard to any limitations on the conversion or redemption
of this Debenture. 

                       (f)     Whenever the Conversion Price is adjusted pursuant to Section 5 hereof, the Company shall promptly mail to the Holder
a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 

11

                       (g)     In case of any (1) merger or consolidation of the Company or any subsidiary of the Company with or into another
Person, or (2) sale by the Company or any subsidiary of the Company of more than one-half of the assets of the Company in one or a series of related transactions, a Holder shall have the right to (A) exercise any rights under Section 2(b), (B)
convert the aggregate amount of this Debenture then outstanding into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders of Common Stock following such merger, consolidation or sale, and such
Holder shall be entitled upon such event or series of related events to receive such amount of securities, cash and property as the shares of Common Stock into which such aggregate principal amount of this Debenture could have been converted
immediately prior to such merger, consolidation or sales would have been entitled, or (C) in the case of a merger or consolidation, require the surviving entity to issue to the Holder a convertible Debenture with a principal amount equal to the
aggregate principal amount of this Debenture then held by such Holder, plus all accrued and unpaid interest and other amounts owing thereon, which such newly issued convertible Debenture shall have terms identical (including with respect to
conversion) to the terms of this Debenture, and shall be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein and the agreements pursuant to which this Debentures were issued. In the case of clause (C), the
conversion price applicable for the newly issued shares of convertible preferred stock or convertible Debentures shall be based upon the amount of securities, cash and property that each share of Common Stock would receive in such transaction and
the Conversion Price in effect immediately prior to the effectiveness or closing date for such transaction. The terms of any such merger, sale or consolidation shall include such terms so as to continue to give the Holder the right to receive the
securities, cash and property set forth in this Section upon any conversion or redemption following such event. This provision shall similarly apply to successive such events. 

             (6)     NOTICES.
       Any notices, consents, waivers or other communications required or  permitted
  to be given under the terms hereof must be in writing and will be deemed
  to have been delivered: (i) upon receipt, when delivered personally; (ii)
  upon receipt, when sent by facsimile (provided confirmation of transmission
  is mechanically  or electronically generated and kept on file by the sending
  party); or (iii) one (1) Trading Day after deposit with a nationally recognized
  overnight delivery service, in each case properly addressed to the party
  to receive the same. The addresses  and facsimile numbers for such communications
  shall be: 

	
If to the Company, to:		 		
Nanoscience Technologies, Inc.	
	 		 		
45 Rockefeller Plaza, Suite 2000 #43	
	 		 		
New York, NY 10111	
	 		 		
Attention: John Ruddy	
	 		 		
Telephone: 212-332-3443	
	 		 		
Facisimile: 212-332-2401	
	 	

12

	With a copy to: 	 	Sichenzia Ross Friedman Ference
        LLP 
	 		 		
1065 Avenue of the Americas, 21st Floor	
	 		 		
New York, NY 10018	
	 		 		
Telephone: 212-930-9700	
	 		 		
Facisimile:  212-930-9725	
	 		 		
Facisimile:  732-577-1188	
	 	
	
If to the Holder:		 		
YA Global Investments, LP	
	 		 		
101 Hudson Street, Suite 3700	
	 		 		
Jersey City, NJ 07302	
	 		 		
Attention:	Mark Angelo 
	 		 		
Telephone:		(201) 985-8300 
	 	
	
With a copy to:		 		
David Gonzalez, Esq.	
	 		 		
101 Hudson Street – Suite 3700	
	 		 		
Jersey City, NJ 07302	
	 		 		
Telephone:		
      (201)
      985-8300	
	 		 		
Facsimile:		
      (201)
      985-8266	

       or
    at such other address and/or facsimile number and/or to the attention of
    such other person as the recipient party has specified by written notice
    given to each other party three (3) Business  Days prior to the effectiveness
    of such change. Written confirmation of receipt (i) given by the recipient
    of such notice, consent, waiver or other communication, (ii) mechanically
    or electronically generated by the sender's facsimile machine  containing
    the time, date, recipient facsimile number and an image of the first page
    of such transmission or (iii) provided by a nationally recognized overnight
    delivery service, shall be rebuttable evidence of personal service, receipt
    by facsimile  or receipt from a nationally recognized overnight delivery
    service in accordance with clause (i), (ii) or (iii) above, respectively. 

             (7)     Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the
Company, which are absolute and unconditional, to pay the principal of, interest and other charges (if any) on, this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the
Company. As long as this Debenture is outstanding, the Company shall not and shall cause their subsidiaries not to, without the consent of the Holder, (i) amend its certificate of incorporation, bylaws or other charter documents so as to adversely
affect any rights of the Holder (which shall include combining (by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares); (ii) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of
its Common Stock or other equity securities other than as to the Underlying Shares to the extent permitted or required under the Transaction Documents; or (iii) enter into any agreement with respect to any of the foregoing.

13

             (8)     This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company, including without
limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Company, unless and to the extent converted into shares of Common Stock
in accordance with the terms hereof. 

             (9)     No indebtedness of the Company is senior to this Debenture in right of payment, whether with respect to interest,
damages or upon liquidation or dissolution or otherwise. Without the Holder’s consent, the Company will not and will not permit any of their subsidiaries to, directly or indirectly, enter into, create, incur, assume or suffer to exist any
indebtedness of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits there from that is senior in any respect to the obligations of the Company under this
Debenture. 

             (10)     This Debenture shall be governed by and construed in accordance with the laws of the State of New Jersey, without
giving effect to conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Superior Courts of the State of New Jersey sitting in Hudson County, New Jersey and the U.S. District Court for the District of New Jersey sitting in
Newark, New Jersey in connection with any dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in
such jurisdictions.

             (11)     If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder
promptly for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action in connection with this Debenture, including, without limitation, those incurred: (i) during any
workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or
any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder. 

             (12)     Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver
or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in writing. 

             (13)     If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain
in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall
violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not
at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,

14

extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by
resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted. 

             (14)     Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day. 

             (15)     THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT. 

             (16)     CERTAIN DEFINITIONS For purposes of this Debenture, the following terms shall
have the following meanings: 

                       (a)     “Approved Stock Plan” means a stock
option plan that has been approved by the Board of Directors of the Company, pursuant to which the Company’s securities may be issued only to any employee, officer, or director for services provided to the Company. 

                       (b)     "Bloomberg" means Bloomberg Financial Markets. 

                       (c)     “Business Day” means any day except
Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions are authorized or required by law or other government action to close. 

                       (d)     “Change of Control Transaction”
means the occurrence of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial
ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent (50%) of the voting securities of the Company (except that the acquisition of voting securities by the Holder or any other current holder of
convertible securities of the Company shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement at one time or over time of more than one-half of the members of the board of directors of the Company which is not
approved by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board of directors was
approved by a majority of the members of the board of directors who are members on the date hereof), (c) the 

15

merger, consolidation or sale of fifty percent (50%) or more of the assets of the Company or any subsidiary of the Company in one or a series of related transactions with or into another entity, or (d) the execution by the
Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth above in (a), (b) or (c). 

                       (e)     “Closing Bid Price” means the price
per share in the last reported trade of the Common Stock on a Primary Market or on the exchange which the Common Stock is then listed as quoted by Bloomberg. 

                       (f)     “Convertible Securities” means any
stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock. 

                       (g)     “Commission” means the Securities and Exchange Commission.

                       (h)     “Common Stock” means the common
stock, par value $.001, of the Company and stock of any other class into which such shares may hereafter be changed or reclassified. 

                       (i)     "Equity Conditions" means that each of the
following conditions is satisfied: (i) on each day during the period beginning two (2) weeks prior to the applicable date of determination and ending on and including the applicable date of determination (the "Equity Conditions Measuring Period"),
either (x) the Underlying Shares Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all applicable shares of Common Stock to be issued in connection with the event requiring
determination or (y) all applicable shares of Common Stock to be issued in connection with the event requiring determination shall be eligible for sale without restriction and without the need for registration under any applicable federal or state
securities laws; (ii) on each day during the Equity Conditions Measuring Period, the Common Stock is designated for quotation on the Principal Market and shall not have been suspended from trading on such exchange or market nor shall delisting or
suspension by such exchange or market been threatened or pending either (A) in writing by such exchange or market or (B) by falling below the then effective minimum listing maintenance requirements of such exchange or market; (iii) during the Equity
Conditions Measuring Period, the Company shall have delivered the shares of Common Stock deliverable upon conversion of the Debentures to the Holder on a timely basis as set forth in Section 4(b)(ii) hereof; (iv) any applicable shares of Common
Stock to be issued in connection with the event requiring determination may be issued in full without violating Section 4(c) hereof and the rules or regulations of the Primary Market; (v) during the Equity Conditions Measuring Period, there shall
not have occurred either (A) an Event of Default or (B) an event that with the passage of time or giving of notice would constitute an Event of Default; and (vii) the Company shall have no knowledge of any fact that would cause (x) the Registration
Statements required pursuant to the Registration Rights Agreement not to be effective and available for the resale of all applicable shares of Common Stock to be issued in connection with the event requiring determination or (y) any applicable
shares of Common Stock to be issued in connection with the event requiring determination not to be eligible for sale without restriction and without the need for registration under any applicable federal or state securities laws. 

16

                       (j)     "Equity Conditions Failure" means that on any
applicable date the Equity Conditions have not been satisfied (or waived in writing by the Holder). 

                       (k)     “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 

                       (l)      “Options” means any rights,
warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities. 

                       (m)     “Original Issue Date” means the
date of the first issuance of this Debenture regardless of the number of transfers and regardless of the number of instruments, which may be issued to evidence such Debenture. 

                       (n)     “Person” means a corporation, an
association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency. 

                       (o)      “Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

                       (p)     “Trading Day” means a day on which
the shares of Common Stock are quoted on the OTCBB or quoted or traded on such Primary Market on which the shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or quoted, then
Trading Day shall mean a Business Day. 

                       (q)     “Transaction Documents” means any
Securities Purchase Agreements between the Company and the Holder and any other agreements delivered in connection with such Securities Purchase Agreements. 

                       (r)     “Underlying Shares” means the
shares of Common Stock issuable upon conversion of this Debenture or as payment of interest in accordance with the terms hereof. 

                       (s)     “Underlying Shares Registration Statement” means a registration statement covering among other things the resale of the Underlying Shares and naming the Holder as a “selling stockholder” thereunder. 

                       (t)     "Volume Weighted Average Price" means, for
any security as of any date, the daily dollar volume-weighted average price for such security as reported by Bloomberg through its “Historical Price Table Screen (HP)” with Market: Weighted Ave function selected, or, if no dollar
volume-weighted average price is reported for such security by Bloomberg, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the "pink sheets" by Pink Sheets
LLC.

[Signature Page Follows]

17

                       IN WITNESS WHEREOF, the Company has caused this Secured Convertible Debenture to be duly executed by a duly authorized officer as of the date set forth
above. 

	 	COMPANY:  

      NANOSCIENCE TECHNOLOGIES, INC. 

      

      By: ________________________

      Name:

      Title: 

 

EXHIBIT I 

CONVERSION NOTICE

(To be executed by the Holder in order to Convert the Debenture)

TO:  

          The
undersigned hereby irrevocably elects to convert $______________________________________
of the principal amount of Debenture No.NANS-6-1 into Shares of Common Stock
of NANOSCIENCE
 TECHNOLOGIES, INC., according to the conditions
 stated therein, as of the Conversion Date written below. 

	
Conversion Date:		 		 	
	
Conversion Amount to be		 		 	
	
converted:		 		
$	
	
Conversion Price:		 		
$	
	
Number of shares of Common		 		 	
	
Stock to be issued:		 		 	
	
Amount of Debenture		 		 	
	
Unconverted:		 		
$	

Please issue the shares of Common Stock in the following name and to the following address: 

Issue to:   

	Authorized Signature: 	 	 
	
Name:		 	 
	
Title:		 	 
	
Broker DTC Participant Code:		 	 
	
Account Number:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]