Document:

REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement (this "Agreement") is made and entered
into as of February __, 2006, by and among American CareSource Holdings, Inc., a
Delaware corporation (the "Company"), * ("*" or the "Placement Agent") and each
purchaser of securities of the Company pursuant to a Subscription Agreement (as
defined below) (each a "Purchaser" and collectively, the "Purchasers").

      This Agreement is made pursuant to Subscription Agreements by and between
the Company and each Purchaser (the "Subscription Agreement"), submitted in
accordance with and subject to the terms and conditions described in the
Subscription Agreement and the Confidential Private Placement Memorandum of the
Company dated as of January 27, 2006, including all documents incorporated by
reference therein and all attachments, schedules and exhibits thereto,
(collectively, the "PPM"), relating to the offering (the "Offering") by the
Company, on a 1,200,000 Share (each a "Share", collectively the "Shares")
($6,000,000) (the "Minimum Amount") and a 2,000,000 Share ($10,000,000) (the
"Maximum Amount"), at a minimum investor purchase of 20,000 Shares ($100,000).
The Company's common stock (the "Common Stock") and the Agent Shares (as defined
below) have the registration rights as set forth herein.

      The Company and the Purchaser hereby agree as follows:

      1. Definitions. Capitalized terms used and not otherwise defined herein
that are defined in the Purchase Agreement shall have the meanings given such
terms in the Purchase Agreement. As used in this Agreement, the following terms
shall have the following meanings:

      "Agent Shares" means all shares of Common Stock issuable upon exercise of
the Agent Warrants.

      "Agent Warrants" means the Common Stock purchase warrants issued to the
Placement Agent as a portion of its compensation in connection with the
Offering.

      "Effectiveness Date" means, with respect to the Registration Statement
required to be filed pursuant to Section 2(a) of this Agreement, the date no
later than one hundred twenty (120) calendar days from the Final Closing Date.

      "Effectiveness Period" shall have the meaning set forth in Section 2(a).

      "Final Closing Date" shall mean the final closing of the Offering.

      "Holder" or "Holders" means the holder or holders, as the case may be,
from time to time of Registrable Securities (including any permitted assignee).

      "Indemnified Party" shall have the meaning set forth in Section 5(c).

      "Indemnifying Party" shall have the meaning set forth in Section 5(c).

      "Losses" shall have the meaning set forth in Section 5(a).

"*" indicated redacted information
<PAGE>

      "Proceeding" means an action, claim, suit, investigation or proceeding
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

      "Prospectus" means the prospectus included in the Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by the
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

      "Registrable Securities" means (i) the shares of Common Stock included in
the Offering (ii) the shares of Common Stock ("Agent Shares") issuable upon
exercise of warrants issued to the placement agent and its designees of the
Offering (the "Agent Warrants"), and (iii) any shares of Common Stock issued or
issuable upon any stock split, dividend or other distribution, recapitalization,
or anti-dilution adjustment or similar event with respect to the foregoing or in
connection with any provisions in the Warrants.

      "Registration Statement" means the registration statement required to be
filed hereunder (which, at the Company's option, may be an existing registration
statement of the Company previously filed with the Commission, but not declared
effective), including (in each case) the Prospectus, amendments and supplements
to the registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in the registration statement.

      "Rule 415" means Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
Rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

      "Rule 424" means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
Rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

      "Securities Act" means the Securities Act of 1933, as amended.

      2. Registration.

            (a) Mandatory Registration. The Company shall, as soon as
practicable, prepare and file with the Commission the Registration Statement
covering the resale of all of the Registrable Securities for an offering to be
made on a continuous basis pursuant to Rule 415. The Registration Statement
required hereunder shall be on Form S-1, Form SB-2 or Form S-3 (except if the
Company is not then eligible to register for resale the Registrable Securities
on Form S-1, Form SB-2 or Form S-3, in which case the Registration shall be on
another appropriate form in accordance herewith). The Registration Statement
required hereunder shall contain the Plan of Distribution, attached hereto as
Annex A (which may be modified to respond to comments, if any, received by the
Commission). The Company shall cause the Registration Statement to become

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effective and remain effective as provided herein. The Company shall use its
best efforts to cause the Registration Statement to be declared effective under
the Securities Act as promptly as possible after the filing thereof and shall
use its best efforts to keep the Registration Statement continuously effective
under the Securities Act until the earlier date when all Registrable Securities
(a) have been sold pursuant to the Registration Statement or an exemption from
the registration requirements of the Securities Act, or (b) two years from the
Final Closing Date (the "Effectiveness Period").

            (b) Effectiveness Default and Other Default Damages. If a
Registration Statement is not declared effective by the Company on or prior to
the Effectiveness Date or a Registration Statement is declared effective by the
SEC, but for any reason or no reason, the holders of the Registrable Securities
are not permitted to resell their Registrable Securities pursuant thereto, for
any reason or no reason, then the Company shall pay to the Holder, for each
thirty (30) day period (and pro-rata for any period less than 30 days) until the
Registration Statement is declared effective, or the holders of Registrable
Securities may sell all of their Registrable Securities thereunder, as the case
may be, an amount in cash, as partial liquidated damages and not as a penalty,
equal to one (1%) percent of the gross proceeds received from the sale of the
Shares, until such deficiency is cured. Such payment shall be made in
immediately available funds no later than five (5) days following the end of
each such 30 day (or pro rata) period.

            (c) Piggyback Registrations Rights. If, at any time during the
Effectiveness Period, there is not an effective Registration Statement covering
the Registrable Securities (other than the Registrable Securities of a Holder
that failed to comply with its obligations under Section 3(j) hereof), and the
Company shall determine to prepare and file with the Commission a registration
statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity securities, other than on Form S-4
or Form S-8 (each as promulgated under the Securities Act) or any post-effective
amendment to existing registration statements or their then equivalents relating
to equity securities to be issued solely in connection with any acquisition of
any entity or business or equity securities issuable in connection with stock
option or other employee benefit plans, then the Company shall send to each
Holder a written notice of such determination at least twenty (20) days prior to
the filing of any such registration statement and shall include in such
registration statement all Registrable Securities; provided, however, that (i)
if, at any time after giving written notice of is intention to register any
securities and prior to the effective date of the registration statement filed
in connection with such registration, the Company determines for any reason not
to proceed with such registration, the Company will be relieved of its
obligation to register any Registrable Securities in connection with such
registration, and (ii) in case of a determination by the Company to delay
registration of its securities, the Company will be permitted to delay the
registration of Registrable Securities for the same period as the delay in
registering such other securities.

      3. Registration Procedures. In connection with the Company's registration
obligations hereunder, the Company shall:

            (a) Not less than five (5) business days prior to the filing of the
Registration Statement or any related Prospectus or any amendment or supplement
thereto, the Company shall furnish to the Holder a draft of the Registration
Statement.

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<PAGE>

            (b) (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so
supplemented or amended to be filed pursuant to Rule 424; and (iii) respond to
any comments received from the Commission with respect to the Registration
Statement or any amendment thereto.

            (c) Notify the Holders of Registrable Securities to be sold as
promptly as reasonably possible: (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement is proposed
to be filed; (B) notify the Placement Agent and at the request of the Holders of
Registrable Securities when the Commission notifies the Company whether there
will be a "review" of the Registration Statement and whenever the Commission
comments in writing on the Registration Statement (the Company shall upon
request provide true and complete copies thereof and all written responses
thereto to each of the Holders, subject, if appropriate, to the execution of
confidentiality agreements in form acceptable to the Company); and (C) notify
all Holders of Registrable Securities with respect to the Registration Statement
or any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to the Registration Statement or Prospectus or for additional
information; (iii) of the issuance by the Commission or any other federal or
state governmental authority of any stop order suspending the effectiveness of
the Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes
the financial statements included in the Registration Statement ineligible for
inclusion therein or any statement made in the Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to the
Registration Statement, Prospectus or other documents so that, in the case of
the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

            (d) Use its best efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order suspending the effectiveness of the
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

            (e) Prior to any resale of Registrable Securities by a Holder, use
its best efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or qualification (or exemption from the
registration or qualification) of such Registrable Securities for the resale by
the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep such
registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably
necessary to enable the disposition in such jurisdictions of the Registrable
Securities covered by the Registration Statement; provided, however, that the

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Company shall not be required to qualify generally to do business in any
jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a
general consent to service of process in any such jurisdiction.

            (f) Upon the occurrence of any event contemplated by Section
3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

            (g) Use its commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission relating to the registration
of the Registrable Securities pursuant to the Registration Statement or
otherwise.

            (h) The Company agrees that the Selling Shareholder Questionnaire
attached hereto as Exhibit A, satisfies all of the information required to be
provided by each Holder in connection with the Registration Statement. The
Company shall not be required to include any Holder that does not complete, date
and execute a Selling Shareholder Questionnaire.

            (i) The Company shall either (a) cause all the Registrable
Securities covered by a Registration Statement to be listed on each securities
exchange on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Registrable Securities is then
permitted under the rules of such exchange, or (b) if eligible, secure
designation and quotation of all the Registrable Securities covered by the
Registration Statement on the Nasdaq National Market or the Nasdaq SmallCap
Market, or, (c) if the Company is unsuccessful in satisfying the preceding
clauses (a) or (b), the Company shall secure the inclusion for quotation on the
OTC Bulletin Board for such Registrable Securities and, without limiting the
generality of the foregoing, to arrange for at least two (2) market makers to
register with the National Association of Securities Dealers, Inc. ("NASD") as
such with respect to such Registrable Securities, or, (d) if the Company is
unsuccessful in qualifying for the OTC Bulletin Board, the Company shall secure
inclusion for quotation on the "Pink Sheets." The Company shall pay all fees and
expenses in connection with satisfying its obligation under this Section 3(j).

            (j) The Company covenants that it shall file the reports required to
be filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder so long as the Holder owns any
Registrable Securities, but in no event longer than two (2) years from the date
of this Agreement; provided, however, the Company may delay any such filing but
only pursuant to Rule 12b-25 under the Exchange Act, and the Company shall take
such further reasonable action as the Holder may reasonably request (including,
without limitation, promptly obtaining any required legal opinions from Company
counsel necessary to effect the sale of Registrable Securities under Rule 144
and paying the related fees and expenses of such counsel), all to the extent
required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may
be amended from time to time, or (b) any similar rule or regulation hereafter
adopted by the Commission. Such reasonable action shall be

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taken by the Company for a period of no longer than two (2) years from the date
of this Agreement. Upon the request of any Holder of Registrable Securities, the
Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

      4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement, other than fees and expenses of counsel or any other
advisor retained by the Holders and discounts and commissions with respect to
the sale of any Registrable Securities by the Holders. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with the Trading Market on which
the Common Stock is then listed for trading, and (B) in compliance with
applicable state securities or Blue Sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) Securities Act liability insurance, if the Company so desires such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement.

      5. Indemnification

            (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
the Holder, the officers, directors, agents and employees of it, each Person who
controls the Holder (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) and the officers, directors, agents and
employees of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, reasonable attorneys' fees)
and expenses relating to an Indemnified Party's actions to enforce the
provisions of this Section 5) (collectively, "Losses"), as incurred, to the
extent arising out of or relating to any untrue or alleged untrue statement of a
material fact contained in the Registration Statement, any Prospectus or any
form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished (or in the case of an omission, not furnished) in writing to
the Company by or on behalf of such Holder expressly for use therein, or to the
extent that such information relates to such Holder or such Holder's proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus or in any amendment or
supplement thereto (it being understood that the Holder has approved Annex A
hereto for this purpose), (2) in the case of an occurrence of an event of the
type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective and prior to the receipt by such

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<PAGE>

Holder of the Advice contemplated in Section 6(d), or (3) the failure of the
Holder to deliver a prospectus prior to the confirmation of a sale. The Company
shall notify the Holders promptly of the institution, threat or assertion of any
Proceeding of which the Company is aware in connection with the transactions
contemplated by this Agreement.

            (b) Indemnification by Holder. The Holder shall indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person
who controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, to the extent arising
out of or based upon: (x) the Holder's failure to comply with the prospectus
delivery requirements of the Securities Act or (y) any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, any
Prospectus, or any form of prospectus, or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission
or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading (i) to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished (or in the case of an omission, not furnished) in
writing by or on behalf of such Holder to the Company specifically for inclusion
in the Registration Statement or such Prospectus or (ii) to the extent that (1)
such untrue statements or omissions are based solely upon information regarding
such Holder furnished (or in the case of an omission, not furnished) in writing
to the Company by or on behalf of such Holder expressly for use therein, or to
the extent that such information relates to such Holder or such Holder's
proposed method of distribution of Registrable Securities, such Prospectus or
such form of Prospectus or in any amendment or supplement thereto, or (2) in the
case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v),
the use by such Holder of an outdated or defective Prospectus after the Company
has notified such Holder in writing that the Prospectus is outdated or defective
and prior to the receipt by such Holder of the Advice contemplated in Section
6(b), or (3) the failure of the Holder to deliver a Prospectus prior to the
confirmation of a sale. In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds
received by the Holder from the offering in connection with such Registration
Statement.

            (c) Conduct of Indemnification Proceedings. If any Proceeding shall
be brought or asserted against any Person entitled to indemnity hereunder (an
"Indemnified Party"), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the "Indemnifying Party") in writing, and the
Indemnifying Party shall have the right to assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party and
the payment of all fees and expenses incurred in connection with defense
thereof; provided, that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that such failure
shall have materially prejudiced the Indemnifying Party.

      An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding

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(including any impleaded parties) include both such Indemnified Party and the
Indemnifying Party, and such Indemnified Party shall have been advised by
counsel that a conflict of interest is likely to exist if the same counsel were
to represent such Indemnified Party and the Indemnifying Party (in which case,
if such Indemnified Party notifies the Indemnifying Party in writing that it
elects to employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
the reasonable fees and expenses of one separate counsel for all Indemnified
Parties in any matters related on a factual basis shall be at the expense of the
Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding affected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

      All reasonable fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Trading Days of written notice thereof to the
Indemnifying Party; provided, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses
applicable to such actions for which such Indemnified Party is not entitled to
indemnification hereunder, determined based upon the relative faults of the
parties.

            (d) Contribution. If a claim for indemnification under Section 5(a)
or Section 5(b) is unavailable to an Indemnified Party (by reason of public
policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.

      6. Miscellaneous.

            (a) Compliance. The Holder covenants and agrees that it will comply
with the prospectus delivery requirements of the Securities Act as applicable to
it in connection with sales of Registrable Securities pursuant to the
Registration Statement.

            (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may be amended, modified or
supplemented, and waivers or consents

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to departures from the provisions hereof may be given, only with the written
consent of the Company, * and Holders holding at least 66 2/3% of the Shares
issued pursuant to the Offering.

            (c) Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the Trading Day
following the date of mailing, if sent by nationally recognized overnight
courier service, or (ii) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be
delivered and addressed as set forth in the Purchase Agreement.

            (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of the Holder.

            (e) Execution and Counterparts. This Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be
an original and, all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

            (f) Governing Law. This Agreement shall be governed by and construed
exclusively in accordance with the internal laws of the State of New York
without regard to the conflicts of laws principles thereof. The parties hereto
hereby irrevocably agree that any suit or proceeding arising directly and/or
indirectly pursuant to or under this Agreement, shall be brought solely in a
federal or state court located in the City, County and State of New York. By its
execution hereof, the parties hereby covenant and irrevocably submit to the in
personam jurisdiction of the federal and state courts located in the City,
County and State of New York and agree that any process in any such action may
be served upon any of them personally, or by certified mail or registered mail
upon them or their agent, return receipt requested, with the same full force and
effect as if personally served upon them in New York City. The parties hereto
waive any claim that any such jurisdiction is not a convenient forum for any
such suit or proceeding and any defense or lack of in personam jurisdiction with
respect thereto. In the event of any such action or proceeding, the party
prevailing therein shall be entitled to payment from the other party hereto of
its reasonable counsel fees and disbursements.

            (g) Severability. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their commercially reasonable efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

            (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

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<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                               AMERICAN CARESOURCE HOLDINGS, INC

                                               By: _____________________________
                                                   Name:
                                                   Title:

                                               *

                                               By: _____________________________
                                                   Name:
                                                   Title:

              See Omnibus Signature Page for Purchasers' Signatures

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<PAGE>

                                     ANNEX A

                              Plan of Distribution

      The Selling Stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of Common Stock on any stock exchange, market or trading facility on which the
shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The Selling Stockholders may use any one or more of the
following methods when selling shares:

      o     ordinary brokerage transactions and transactions in which the
            broker/dealer solicits purchasers;

      o     block trades in which the broker/dealer will attempt to sell the
            shares as agent but may position and resell a portion of the block
            as principal to facilitate the transaction;

      o     purchases by a broker/dealer as principal and resale by the
            broker/dealer for its account;

      o     an exchange distribution in accordance with the Rules of the
            applicable exchange;

      o     privately negotiated transactions;

      o     settlement of short sales;

      o     broker/dealers may agree with the Selling Stockholders to sell a
            specified number of such shares at a stipulated price per share;

      o     a combination of any such methods of sale; and

      o     any other method permitted pursuant to applicable law.

      The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

      Broker/dealers engaged by the Selling Stockholders may arrange for other
brokers/dealers to participate in sales. Broker/dealers may receive commissions
from the Selling Stockholders (or, if any broker/dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions to exceed what is customary
in the types of transactions involved.

      The Selling Stockholders may from time to time pledge or grant a security
interest in some or all of the shares of common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured
parties may offer and sell the shares of common stock

<PAGE>

from time to time under this prospectus, or under an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act of 1933 amending the list of Selling Stockholders to include the pledgee,
transferee or other successors in interest as Selling Stockholders under this
prospectus.

      The Selling Stockholders and any broker/dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker/dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions under the Securities Act. The Selling Stockholders have informed the
Company that it does not have any agreement or understanding, directly or
indirectly, with any person to distribute the Common Stock.

      The Company is required to pay all fees and expenses incident to the
registration of the shares. The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.SUBSCRIPTION AGREEMENT

                                       FOR

                       AMERICAN CARESOURCE HOLDINGS, INC.

American Caresource Holdings, Inc.
8080 Tri-Star Drive
Irving, TX 75063

Ladies and Gentlemen:

      1. Subscription. Investors will purchase (the "Offering") the number of
shares (each a "Share," collectively the "Shares") of common stock. par value
$0.01 (the "Common Stock"), of American Caresource Holdings, Inc. (the
"Company") set forth on the signature page to this Subscription Agreement at a
purchase price of $5.00 per Share.

      The subscription for the Shares will be made in accordance with and
subject to the terms and conditions of this Subscription Agreement and the
Company's Confidential Private Placement Memorandum used in the Offering (the
"Memorandum"). The Shares are being offered on a 1,200,000 Share ($6,000,000)
minimum amount (the "Minimum Amount") and a 2,000,000 Share ($10,000,000)
maximum amount (the "Maximum Amount") basis. The minimum investment amount that
may be purchased by an Investor is 20,000 Shares ($100,000) (the "Minimum
Investor Purchase"); provided however, the Company may in its sole discretion
accept an Investor subscription for an amount less than the Minimum Investor
Purchase.

      The Shares are entitled to certain registration rights as provided in the
Registration Rights Agreement (the "Registration Rights Agreement"), by and
among the Company, the Placement Agent (defined below) and the Investors in the
Offering.

      * ("*" or the "Placement Agent"), is acting as the non-exclusive placement
agent to the Company in connection with the sale of the Shares on a "reasonable
efforts" basis solely to "accredited investors" (as defined in Rule 501 of
Regulation D promulgated under the Securities Act of 1933, as amended (the
"Securities Act")); provided, however, in the event subscriptions for more than
the Minimum Amount are received, the Company reserves the right to accept
additional subscriptions up to the Maximum Amount.

      The Company and the Placement Agent reserve the right (but are not
obligated) to purchase and/or have their respective employees, agents, officers,
directors and affiliates subscribe and purchase Shares in the Offering and all
such purchases will be counted towards the Minimum Amount and Maximum Amount. If
the Company and/or the Placement Agent rejects a subscription, either in whole
or in part (which decision is in their sole discretion), the rejected
subscription funds or the rejected portion thereof will be returned promptly to
such subscriber without interest accrued thereon.

                                       1
<PAGE>

      The terms of the Offering are more completely described in the Memorandum
and such terms are incorporated herein in their entirety. Capitalized terms
used, but not otherwise defined herein, will have the respective meanings
provided in the Memorandum.

      2. Payment. The Subscriber encloses herewith a check payable to, or will
immediately make a wire transfer payment to, "Signature Bank, Escrow Agent for
American Caresource Holdings, Inc.," in the full amount of the purchase price of
the Shares being subscribed for. Together with the check for, or wire transfer
of, the full purchase price, the Subscriber is delivering a completed and
executed Omnibus Signature Page to this Subscription Agreement and the
Registration Rights Agreement.

      3. Deposit of Funds. All payments made as provided in Section 2 hereof
will be deposited by the Company as soon as practicable with Signature Bank, as
escrow agent (the "Escrow Agent") or such other escrow agent appointed by * and
the Company, in a non-interest bearing escrow account (the "Escrow Account"). In
the event that the Company does not effect a Closing on or before February 15,
2006 (the "Initial Offering Period"), which period may be extended by the
Company and the Placement Agent, in their sole discretions to a date no later
than April 15, 2006 (this additional period and together with the Initial
Offering Period will be referred to as the "Offering Period"), the Escrow Agent
will refund all subscription funds, without deduction and/or interest accrued
thereon, and will return the subscription documents to each subscriber. If the
Company and/or the Placement Agent rejects a subscription, either in whole or in
part (which decision is in their sole discretion), the rejected subscription
funds or the rejected portion thereof will be returned promptly to such
subscriber without interest accrued thereon.

      4. Acceptance of Subscription. The Subscriber understands and agrees that
the Company, in its sole discretion, reserves the right to accept or reject this
or any other subscription for the Shares, in whole or in part, notwithstanding
prior receipt by the Subscriber of notice of acceptance of this or any other
subscription. The Company will have no obligation hereunder until the Company
executes and delivers to the Subscriber an executed copy of this Subscription
Agreement. If Subscriber's subscription is rejected in whole or the Offering is
terminated, all funds received from the Subscriber will be returned without
interest, penalty, expense or deduction, and this Subscription Agreement will
thereafter be of no further force or effect. If Subscriber's subscription is
rejected in part, the funds for the rejected portion of such subscription will
be returned without interest, penalty, expense or deduction, and this
Subscription Agreement will continue in full force and effect to the extent such
subscription was accepted.

      5. Representations and Warranties of the Subscriber. The Subscriber hereby
acknowledges, represents, warrants, and agrees as follows:

            (a) The Shares offered pursuant to the Memorandum are not registered
under the Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws. The Subscriber understands that the offering and sale of
the Shares are intended to be exempt from registration under the Securities Act,
by virtue of Section 4(2) thereof and the provisions of Regulation D promulgated
thereunder, based, in part, upon the representations, warranties and agreements
of the Subscriber contained in this Subscription Agreement;

                                       2
<PAGE>

            (b) The Subscriber and the Subscriber's attorney, accountant,
purchaser representative and/or tax advisor, if any (collectively, "Advisors"),
have received the Memorandum and all other documents requested by the Subscriber
or its Advisors, if any, have carefully reviewed them and understand the
information contained therein, prior to the execution of this Subscription
Agreement;

            (c) Neither the Securities and Exchange Commission (the
"Commission") nor any state securities commission has approved the Shares, or
passed upon or endorsed the merits of the Offering or confirmed the accuracy or
determined the adequacy of the Memorandum. The Memorandum has not been reviewed
by any federal, state or other regulatory authority. Any representation to the
contrary is a criminal offense. The Shares are subject to restrictions on
transferability and resale and may not be transferred or resold except as
permitted under the Securities Act, and the applicable state securities laws,
pursuant to registration or exemption therefrom. Investors should be aware that
they will be required to bear the financial risks of this investment for an
indefinite period of time;

            (d) All documents, records, and books pertaining to the investment
in the Shares (including, without limitation, the Memorandum) have been made
available for inspection by the Subscriber and its Advisors, if any;

            (e) The Subscriber and its Advisors, if any, have had a reasonable
opportunity to ask questions of and receive answers from a person or persons
acting on behalf of the Company concerning the offering of the Shares and the
business, financial condition, results of operations and prospects of the
Company, and all such questions have been answered by the Company to the full
satisfaction of the Subscriber and its Advisors, if any;

            (f) In evaluating the suitability of an investment in the Company,
the Subscriber has not relied upon any representation or other information (oral
or written) other than as stated in the Memorandum or as contained in documents
so furnished to the Subscriber or its Advisors, if any, by the Company;

            (g) The subscriber is unaware of, is in no way relying on, and did
not become aware of the offering directly and/or indirectly through or as a
result of, any form of general solicitation or general advertising including,
without limitation, any press release, filing by the company with the
commission, article, notice, advertisement or other communication published in
any newspaper, magazine or similar media or broadcast over television, radio or
over the internet, in connection with the offering and sale of the securities
and is not subscribing for securities and did not become aware of the offering
through or as a result of any seminar or meeting to which the subscriber was
invited by, or any solicitation of a subscription by, a person not previously
known to the subscriber in connection with investments in securities generally;

                                       3
<PAGE>

            (h) The Subscriber has taken no action which would give rise to any
claim by any person for brokerage commissions, finders' fees or the like
relating to this Subscription Agreement or the transactions contemplated hereby
(other than commissions to be paid by the Company to the Placement Agent as
described in the Memorandum);

            (i) The Subscriber, either alone or together with its Advisors, if
any, have such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable them to utilize
the information made available to them in connection with the offering of the
Shares to evaluate the merits and risks of an investment in the Shares and the
Company and to make an informed investment decision with respect thereto;

            (j) The Subscriber is not relying on the Company, the Placement
Agent or any of their respective employees or agents with respect to the legal,
tax, economic and related considerations of an investment in the Shares, and the
Subscriber has relied on the advice of, or has consulted with, only its own
Advisors;

            (k) The Subscriber is acquiring the Shares solely for such
Subscriber's own account for investment and not with a view to resale or
distribution thereof, in whole or in part. The Subscriber has no agreement or
arrangement, formal or informal, with any person to sell or transfer all or any
of the Shares and the Subscriber has no plans to enter into any such agreement
or arrangement;

            (l) The purchase of the Shares represents high risk capital and the
Subscriber is able to afford an investment in a speculative venture having the
risks and objectives of the Company. The Subscriber must bear the substantial
economic risks of the investment in the Shares indefinitely because none of the
Shares may be sold, hypothecated or otherwise disposed of unless subsequently
registered under the Securities Act and applicable state securities laws or an
exemption from such registration is available. Legends will be placed on the
Shares to the effect that they have not been registered under the Securities Act
or applicable state securities laws and appropriate notations thereof will be
made in the Company's stock books. The Company has agreed that purchasers of the
Shares will have, the registration rights described in the Registration Rights
Agreement. Notwithstanding such registration rights, trading volume in the
Common Stock is extremely limited and sporadic and as such, there is currently
limited liquidity in the Common Stock and there can be no assurance when, if
ever, a more liquid market for the Common Stock will develop; or if any
registration statement covering the Shares will be declared effective by the
SEC;

            (m) The Subscriber has adequate means of providing for such
Subscriber's current financial needs and foreseeable contingencies and has no
need for liquidity of the investment in the Shares for an indefinite period of
time;

            (n) The Subscriber is aware that an investment in the Shares
involves a number of very significant risks and has carefully read and
considered the matters set forth in the Memorandum, including, but not limited
to, the Section entitled "Risk Factors;"

                                       4
<PAGE>

            (o) The Subscriber is an "accredited investor" as that term is
defined in Regulation D under the Securities Act, and has truthfully and
accurately completed the Accredited Investor Certification contained herein;

            (p) The Subscriber: (i) if a natural person, represents that the
Subscriber has reached the age of 21 and has full power and authority to execute
and deliver this Subscription Agreement and all other related agreements or
certificates and to carry out the provisions hereof and thereof; (ii) if a
corporation, partnership, or limited liability company or partnership, or
association, joint stock company, trust, unincorporated organization or other
entity, represents that such entity was not formed for the specific purpose of
acquiring the Shares, such entity is duly organized, validly existing and in
good standing under the laws of the state of its organization, the consummation
of the transactions contemplated hereby is authorized by, and will not result in
a violation of state law or its charter or other organizational documents, such
entity has full power and authority to execute and deliver this Subscription
Agreement and all other related agreements or certificates and to carry out the
provisions hereof and thereof and to purchase and hold the securities
constituting the Shares, the execution and delivery of this Subscription
Agreement has been duly authorized by all necessary action, this Subscription
Agreement has been duly executed and delivered on behalf of such entity and is a
legal, valid and binding obligation of such entity; or (iii) if executing this
Subscription Agreement in a representative or fiduciary capacity, represents
that it has full power and authority to execute and deliver this Subscription
Agreement in such capacity and on behalf of the subscribing individual, ward,
partnership, trust, estate, corporation, or limited liability company or
partnership, or other entity for whom the Subscriber is executing this
Subscription Agreement, and such individual, partnership, ward, trust, estate,
corporation, or limited liability company or partnership, or other entity has
full right and power to perform pursuant to this Subscription Agreement and make
an investment in the Company, and represents that this Subscription Agreement
constitutes a legal, valid and binding obligation of such entity. The execution
and delivery of this Subscription Agreement will not violate or be in conflict
with any order, judgment, injunction, agreement or controlling document to which
the Subscriber is a party or by which it is bound;

            (q) The Subscriber and its Advisors, if any, have had the
opportunity to obtain any additional information, to the extent the Company had
such information in their possession or could acquire it without unreasonable
effort or expense, necessary to verify the accuracy of the information contained
in the Memorandum and all documents received or reviewed in connection with the
purchase of the Shares and have had the opportunity to have representatives of
the Company provide them with such additional information regarding the terms
and conditions of this particular investment and the financial condition,
results of operations, business and prospects of the Company deemed relevant by
the Subscriber or its Advisors, if any, and all such requested information, to
the extent the Company had such information in its possession or could acquire
it without unreasonable effort or expense, has been provided by the Company to
the full satisfaction of the Subscriber and its Advisors, if any;

                                       5
<PAGE>

            (r) The Subscriber represents to the Company that any information
which the undersigned has heretofore furnished or is furnishing herewith to the
Company or * is complete and accurate and may be relied upon by the Company in
determining the availability of an exemption from registration under Federal and
state securities laws in connection with the Offering as described in the
Memorandum. The Subscriber further represents and warrants that it will notify
and supply corrective information to the Company and * immediately upon the
occurrence of any change therein occurring prior to the Company's issuance of
the Shares;

            (s) The Subscriber has significant prior investment experience,
including investments in restricted securities of entities whose shares of
common stock are illiquid and are quoted on the Bulletin Board (the "BB"). The
Subscriber is knowledgeable about investment considerations in public companies
and, in particular, public companies traded on the BB. The Subscriber has a
sufficient net worth to sustain a loss of its entire investment in the Company
in the event such a loss should occur. The Subscriber's overall commitment to
investments which are not readily marketable is not excessive in view of the
Subscriber's net worth and financial circumstances and the purchase of the
Shares will not cause such commitment to become excessive. This investment is a
suitable one for the Subscriber;

            (t) The Subscriber is satisfied that it has received adequate
information with respect to all matters which it or its Advisors, if any,
consider material to its decision to make this investment;

            (u) The Subscriber acknowledges that any estimates or
forward-looking statements or projections included in the Memorandum were
prepared by the Company in good faith, but that the attainment of any such
projections, estimates or forward-looking statements cannot be guaranteed, will
not be updated by the Company and should not be relied upon;

            (v) No oral or written representations have been made, or oral or
written information furnished, to the Subscriber or its Advisors, if any, in
connection with the Offering which are in any way inconsistent with the
information contained in the Memorandum;

            (w) Within five (5) days after receipt of a request from the Company
or *, the Subscriber will provide such information and deliver such documents as
may reasonably be necessary to comply with any and all laws and ordinances to
which the Company or * is subject;

            (x) The Subscriber's substantive relationship with * or other agent
or subagent through which the Subscriber is subscribing for Shares predates * or
such other agent or subagent's contact with the Subscriber regarding an
investment in the Shares;

            (y) THE SHARES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATES AND ARE BEING OFFERED AND
SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT
AND SUCH LAWS. THE SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT

                                       6
<PAGE>

AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE SHARES HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION, ANY STATE SECURITIES
COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING
AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY
OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL;

      (aa) (For ERISA plans only) The fiduciary of the ERISA plan (the "Plan")
represents that such fiduciary has been informed of and understands the
Company's investment objectives, policies and strategies, and that the decision
to invest "plan assets" (as such term is defined in ERISA) in the Company is
consistent with the provisions of ERISA that require diversification of plan
assets and impose other fiduciary responsibilities. The Subscriber or Plan
fiduciary (a) is responsible for the decision to invest in the Company; (b) is
independent of the Company and any of its affiliates; (c) is qualified to make
such investment decision; and (d) in making such decision, the Subscriber or
Plan fiduciary has not relied on any advice or recommendation of the Company or
any of its affiliates.

      (bb) The Subscriber hereby represents, warrants, agrees and covenants to
and with the Company that the Subscriber has not, directly and/or indirectly,
previously had and/or maintained and/or currently has, and/or in the future will
not make or maintain a "short" position in the Company's securities and will not
encourage and/or facilitate the same by any third party.

      (cc) The Subscriber has read in its entirety the Memorandum including, but
not limited to, the Section therein entitled "Risk Factors," and understands
fully to its full satisfaction all information included in the Memorandum
including, but not limited to, the conflict of interest of the Placement Agent
and the beneficial ownership of securities of the Company by the Placement
Agent.

      6. Representations and Warranties of the Company. The Company hereby
acknowledges, represents, warrants, and agrees as follows:

            (a) The Company does not own or control, directly or indirectly, any
interest in any other limited liability company, corporation, association or
other business entity.

            (b) The Company is an entity duly organized, validly existing and in
good standing under the laws of the state of its incorporation with the
requisite corporate power and authority to own and use its properties and assets
and to carry on its business as currently conducted. The Company is not in
violation of any of the provisions of its certificate of formation, by-laws or
other organizational or charter documents (the "Internal Documents"). The
Company is duly qualified to conduct business and is in good standing as a
foreign corporation in each jurisdiction in which the nature of the business

                                       7
<PAGE>

conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be,
would not result in a direct and/or indirect (i) material adverse effect on the
legality, validity or enforceability of any of the Shares and/or this
Subscription Agreement, (ii) material adverse effect on the results of
operations, assets, business or financial condition of the Company, or (iii)
material adverse effect on the Company's ability to perform in any material
respect on a timely basis its obligations under this Subscription Agreement, the
Registration Rights Agreement, the ____________ Articles of Incorporation, and
the Memorandum (collectively the "Transaction Documents") (any of (i), (ii) or
(iii), a "Material Adverse Effect").

            (c) The Company has the requisite corporate power and authority to
enter into and to consummate the transactions contemplated by each of the
Transaction Documents and otherwise to carry out its obligations thereunder. The
execution and delivery of each of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of the Company and no further
corporate action is required by the Company in connection therewith. Each
Transaction Document has been (or upon delivery will have been) duly executed by
the Company and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors' rights generally.

            (d) The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions
contemplated thereby, do not and will not (i) conflict with or violate any
provision of the Company's Internal Documents, (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of,
any material agreement, credit facility, debt or other instrument (evidencing a
Company debt or otherwise), or other understanding to which the Company is a
party or by which any property or asset of the Company is bound or affected, or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company is bound or
affected.

            (e) The Company is not required to obtain any consent, waiver,
authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other an individual or corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision
thereof) or other entity of any kind (a "Person") in connection with the
execution, delivery and performance by the Company of the Transaction Documents,
other than the filing with the Commission of a Form D and applicable Blue Sky
filings.

                                       8
<PAGE>

            (f) The Company possesses all licenses, certificates, authorizations
and permits issued by the appropriate federal, state, local or foreign
regulatory authorities necessary to conduct their respective businesses, except
where the failure to possess such permits would not have or reasonably be
expected to result in a Material Adverse Effect ("Material Permits"), and
believes it can obtain, without undue burden or expense, any similar authority
for the conduct of its business as planned to be conducted, and the Company has
not received any notice of proceedings relating to the revocation or
modification of any Material Permit.

            (g) The Company owns its property and assets free and clear of all
mortgages, liens, loans, pledges, security interests, claims, equitable
interests, charges, and encumbrances, except such encumbrances and liens which
arise in the ordinary course of business and do not materially impair the
Company's ownership or use of such property or assets. With respect to the
property and assets it leases, the Company is in compliance in all material
respects with such leases and, to its knowledge, holds a valid leasehold
interest free of any liens, claims, or encumbrances.

            (h) The Company owns, or possesses adequate rights or licenses to
use all trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to
conduct their respective businesses as now conducted, the lack of which could
reasonably be expected to have a Material Adverse Effect. The Company does not
have any knowledge of any infringement by the Company of trademarks, trade name
rights, patents, patent rights, copyrights, inventions, licenses, service names,
service marks, service mark registrations, trade secrets or other similar rights
of others, or of any such development of similar or identical trade secrets or
technical information by others and no claim, action or proceeding has been made
or brought against, or to the Company's knowledge, has been threatened against,
the Company regarding trademarks, trade name rights, patents, patent rights,
inventions, copyrights, licenses, service names, service marks, service mark
registrations, trade secrets or other infringement, except where such
infringement, claim, action or proceeding would not reasonably be expected to
have either individually or in the aggregate a Material Adverse Effect. The
Company is not aware that any of its employees, officers, or consultants are
obligated under any contract (including licenses, covenants, or commitments of
any nature) or other agreement, or subject to any judgment, decree, or order of
any court or administrative agency, that would interfere with the use of such
employee's, officer's, or consultant's commercially reasonable efforts to
promote the interests of the Company or that would conflict with the Company's
business as conducted. Neither the execution nor delivery of the Transaction
Documents, nor the carrying on of the Company's business by the employees of the
Company, as is presently conducted, nor the conduct of the Company's business,
will, to the Company's knowledge, conflict with or result in a breach of the
terms, conditions, or provisions of, or constitute a default under, any
contract, covenant, or instrument under which any of such employees, officers or
consultants are now obligated.

            (i) The Common Stock has been duly and validly authorized and, when
issued, delivered and sold in accordance with the Subscription Agreement against
full payment therefor, will be duly and validly, issued, fully paid, and
nonassessable, free and clear of all liens, pledges and other encumbrances, and
not subject to any preemptive or other similar rights

                                       9
<PAGE>

            (j) There is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company,
currently threatened against or affecting the Company, or any of its respective
properties before or by any court, arbitrator, governmental or administrative
agency and/or regulatory authority (federal, state, county, local or foreign),
(collectively, an "Action") which does and/or could (i) adversely affects or
challenges the legality, validity or enforceability of any of the Transaction
Documents and/or the Shares, if issued, or to consummate the transactions
contemplated hereby or thereby or (ii) could, if there were an unfavorable
decision, have, either individually or in the aggregate, a Material Adverse
Effect. The foregoing includes, without limitation, actions, pending or
threatened (or any basis therefor known to the Company), involving the prior
employment of any of the Company's employees, their use in connection with the
Company's business of any information or techniques allegedly proprietary to any
of their former employers, or their obligations under any agreements with prior
employers. The Company is not a party or subject to the provisions of any order,
writ, injunction, judgment, or decree of any court or government agency or
instrumentality.

            (k) Except as expressly disclosed in the Memorandum (i) there has
been no event, occurrence or development that has had or that could reasonably
be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any material liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company's financial statements pursuant to GAAP or required to be
disclosed in filings made with the Commission, (iii) the Company has not altered
its method of accounting or the identity of its auditors, (iv) the Company has
not declared or made payment or distribution of any dividend or distribution of
cash or other property to its holders of Common Stock or purchased, redeemed or
made any agreements to purchase or redeem any shares of its capital stock and
(v) the Company has not issued any equity securities to any officer, director or
Affiliate, except pursuant to existing Company stock option agreements.

            (l) The Company (i) is not in default under, or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by the Company under), nor has the
Company received notice of a claim that it is in default under or that it is in
violation of, any indenture, mortgage, decree, lease, license, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound (whether or not such default or
violation has been waived), (ii) is in violation of any order of any court,
arbitrator or governmental body, or (iii) is or has been in violation of any
statute, rule or regulation of any governmental authority, including without
limitation all foreign, federal, state and local laws applicable to its
business, except in the case of clauses (i), (ii) and (iii) as would not result
in a Material Adverse Effect. The Company has not received any written notice of
any violation of or noncompliance with, any federal, state, local or foreign
laws, ordinances, regulations and orders (including, without limitation, those
relating to environmental protection, occupational safety and health, federal

                                       10
<PAGE>

securities laws, equal employment opportunity, consumer protection, credit
reporting, "truth-in-lending", and warranties and trade practices) applicable to
its business, the violation of, or noncompliance with, which would have a
Materially Adverse Effect on the Company's business or operations, and the
Company knows of no facts or set of circumstances which would give rise to such
a notice. The execution, delivery, and performance of the Transaction Documents
and the consummation of the transactions contemplated thereby will not result in
any such violation or be in conflict with or constitute, with or without the
passage of time and giving of notice, either a default under any such provision,
instrument, judgment, order, writ, decree or contract, or an event which results
in the creation of any lien, charge, or encumbrance upon any assets of the
Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of
any material permit, license, authorization, or approval applicable to the
Company, its business or operations, or any of its assets or properties, except
as would not reasonably be expected to have a Material Adverse Effect.

            (m) No material labor dispute exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company which
could reasonably be expected to result in a Material Adverse Effect.

            (n) The Company is not required to pay any brokerage or finder's
fees or commissions to any person including, but not limited to, any broker,
financial advisor or consultant, finder, placement agent, investment banker,
bank or other person with respect to the Offering contemplated by this
Agreement, other than the Placement Agent.

            (o) Assuming the accuracy of the Subscriber's representations and
warranties set forth in this Subscription Agreement, no registration under the
Securities Act is required for the offer and sale of the Shares by the Company
to the Subscriber as contemplated hereby.

            (p) The Company is not, and is not an affiliate of, an "investment
company" within the meaning of the Investment Company Act of 1940, as amended.

            (q) Neither the Company, nor any of their affiliates nor any person
acting on their behalf, has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of any of the Shares.

            (r) Neither the Company, nor any of their affiliates nor any person
acting on their behalf has, directly or indirectly, made any offers or sales of
any security or solicited any offers to buy any security, under circumstances
that would require registration of any of the Shares under the Securities Act or
cause the Offering to be integrated with prior offerings by the Company for
purposes of the Securities Act or any applicable stockholder approval
provisions, including without limitation, under the rules and regulations of any
exchange or automated quotation system on which any of the securities of the
Company are listed or designated. Neither the Company, nor their affiliates nor
any person acting on their behalf will take any action or steps referred to in
the preceding sentence that would require registration of any of the Shares
under the Securities Act or cause the Offering to be integrated with other
offerings.

                                       11
<PAGE>

            (s) The Company has made or filed all federal and state income and
all other tax returns, reports and declarations required by any jurisdiction to
which it is subject, except when the failure to do so would not have a Material
Adverse Effect, and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations otherwise due and payable, except those being
contested in good faith and has set aside on its books reserves in accordance
with GAAP reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know of no basis
for any such claim. The Company has not executed a waiver with respect to the
statute of limitations relating to the assessment or collection of any foreign,
federal, statue or local tax. To the Company's knowledge, none of the Company's
tax returns is presently being audited by any taxing authority. To the Company's
knowledge, (i) none of the tax returns of the Company or any Subsidiary is being
audited by the Internal Revenue Service and (ii) neither the Company nor any
Subsidiary will owe a material tax obligation under any federal or state tax
return to be filed.

            (t) The Company is not indebted in excess of $20,000, directly or
indirectly, to any of its employees, officers or directors or to their
respective spouses or children, in any amount whatsoever other than in
connection with accrued but unpaid salary payments, expenses or advances of
expenses incurred in the ordinary course of business or relocation expenses of
employees, officers and directors, nor is the Company contemplating such
indebtedness as of the date of this Agreement, (ii) to the Company's knowledge,
none of said employees, officers or directors, or any member of their immediate
families, is directly or indirectly indebted to the Company (other than in
connection with purchases of the Company's stock) or have any direct or indirect
ownership interest in any firm or corporation with which the Company is
affiliated or with which the Company has a business relationship or any firm or
corporation which competes with the Company, nor is the Company contemplating
such indebtedness as of the date of this Agreement, except that employees,
officers, directors and/or shareholders of the Company may own stock in publicly
traded companies (not in excess of 1% of the outstanding capital stock thereof)
which may directly compete with the Company and (iii) to the Company's
knowledge, no employee, shareholder, officer or director, or any member of their
immediate families, is, directly or indirectly, interested in any material
contract with the Company, nor does any such person own, directly or indirectly,
in whole or in part, any material tangible or intangible property that the
Company uses or contemplates using in the conduct of its business. The Company
is not a guarantor or indemnitor of any indebtedness of any other Person.

            (u) If the Offering is conducted in accordance with the Transaction
Documents and the Memorandum, neither the sale of any of the Shares by the
Company hereunder nor its use of the proceeds thereof will violate the Trading
with the Enemy Act, as amended, or any of the foreign assets control regulations
of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto.
Without limiting the foregoing, neither the Company nor any of its Subsidiaries
(a) is a person whose property or interests in property are blocked pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages in any dealings or
transactions, or is otherwise associated, with any such person. The Company and
its Subsidiaries are in compliance with the anti-money laundering requirements
of the USA Patriot Act of 2001 (signed into law October 26, 2001).

                                       12
<PAGE>

            (v) The Company is current in all filings required to be made by it
pursuant to the Securities Act and the Exchange Act and all information
contained therein is true, accurate, complete and does not omit to contain any
material facts.

            (w) The Common Stock is eligible for quotation on the BB under the
symbol "ASCH.OB." The Company has no reason to believe the Common Stock will not
continue to be eligible for quotation thereon.

            (x) As of the date of the PPM, all prior issuances of securities by
the Company have been duly authorized and validly issued in compliance with all
applicable rules, regulations and laws, including, but not limited to, the
Federal Securities Laws and State Securities Laws and no person has any
rescission rights with respect to any prior issuances of Company securities.

            (z) No person has any preemptive and/or any right of first refusal
and/or any similar rights with respect to any securities of the Company.

      7. Indemnification. The Subscriber agrees to indemnify and hold harmless
the Company, * and each of their respective officers, directors, employees,
agents, attorneys, control persons and affiliates from and against all losses,
liabilities, claims, damages, costs, fees and expenses whatsoever (including,
but not limited to, any and all expenses incurred in investigating, preparing or
defending against any litigation commenced or threatened) based upon or arising
out of any actual or alleged false acknowledgment, representation or warranty,
or misrepresentation or omission to state a material fact, or breach by the
Subscriber of any covenant or agreement made by the Subscriber herein or in any
other document delivered by or on behalf of the Subscriber in connection with
this Subscription Agreement.

      8. Irrevocability; Binding Effect. The Subscriber hereby acknowledges and
agrees that the subscription hereunder is irrevocable by the Subscriber, except
as required by applicable law, and that this Subscription Agreement will survive
the death or disability of the Subscriber and will be binding upon and inure to
the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns. If the Subscriber is
more than one person, the obligations of the Subscriber hereunder will be joint
and several and the agreements, representations, warranties and acknowledgments
herein will be deemed to be made by and be binding upon each such person and
such person's heirs, executors, administrators, successors, legal
representatives and permitted assigns.

                                       13
<PAGE>

      9. Modification. This Subscription Agreement will not be modified or
waived except by an instrument in writing signed by the party against whom any
such modification or waiver is sought.

      10. Notices. Any notice or other communication required or permitted to be
given hereunder will be in writing and will be mailed by certified mail, return
receipt requested, or delivered against receipt to the party to whom it is to be
given (a) if to the Company, at the address set forth above or (b) if to the
Subscriber, at the address set forth on the signature page hereof (or, in either
case, to such other address as the party will have furnished in writing in
accordance with the provisions of this Section 10). Any notice or other
communication given by certified mail will be deemed given at the time of
certification thereof, except for a notice changing a party's address which will
be deemed given at the time of receipt thereof.

      11. Assignability. This Subscription Agreement and the rights, interests
and obligations hereunder are not transferable or assignable by the Subscriber
and the transfer or assignment of the Shares issued by the Company will be made
only in accordance with all applicable laws.

      12. Applicable Law. This Subscription Agreement will be governed by and
construed exclusively under the laws of the State of New York as applied to
agreements among New York residents entered into and to be performed entirely
within New York. Each of the parties hereto (1) agree that any legal suit,
action or proceeding arising out of or relating to this Agreement will be
instituted exclusively in New York State Supreme Court, County of New York, or
in the United States District Court for the Southern District of New York, (2)
waive any objection which the Company may have now or hereafter to the venue of
any such suit, action or proceeding, and (3) irrevocably consent to the
jurisdiction of the New York State Supreme Court, County of New York, and the
United States District Court for the Southern District of New York in any such
suit, action or proceeding. Each of the parties hereto further agrees to accept
and acknowledge service of any and all process which may be served in any such
suit, action or proceeding in the New York State Supreme Court, County of New
York, or in the United States District Court for the Southern District of New
York and agree that service of process upon it mailed by certified mail to its
address will be deemed in every respect effective service of process upon it, in
any such suit, action or proceeding. THE PARTIES HERETO AGREE TO WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS SUBSCRIPTION AGREEMENT OR ANY DOCUMENT OR AGREEMENT
CONTEMPLATED HEREBY.

      13. Blue Sky Qualification. The purchase of Shares under this Subscription
Agreement is expressly conditioned upon the exemption from qualification of the
offer and sale of the Shares from applicable Federal and state securities laws.
The Company will not be required to qualify this transaction under the
securities laws of any jurisdiction and, should qualification be necessary, the
Company will be released from any and all obligations to maintain its offer, and
may rescind any sale contracted, in the jurisdiction.

                                       14
<PAGE>

      14. Use of Pronouns. All pronouns and any variations thereof used herein
will be deemed to refer to the masculine, feminine, neuter, singular or plural
as the identity of the person or persons referred to may require.

      15. Confidentiality. The Subscriber acknowledges and agrees that any
information or data the Subscriber has acquired from or about the Company, not
otherwise properly in the public domain, was received in confidence (the
"Confidential Information"). Any distribution of the Confidential Information to
any person other than the Subscriber named above, in whole or in part, or the
reproduction of the Confidential Information, or the divulgence of any of its
contents (other than to the Subscriber's tax and financial advisers, attorneys
and accountants, who will likewise be required to maintain the confidentiality
of the Confidential Information) is unauthorized, except that any Subscriber
(and each employee, representative, or other agent of such Subscriber) may
disclose to any and all persons, without limitations of any kind (except as
provided in the next sentence) the tax treatment and tax structure of the
transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to the Subscriber relating to such tax treatment and
tax structure. Any such disclosure of the tax treatment, tax structure and other
tax-related materials shall not be made for the purpose of offering to sell the
securities offered hereby or soliciting an offer to purchase any such
securities. Except as provided above with respect to tax matters, the above
named Subscriber, agrees not to divulge, communicate or disclose, except as may
be required by law or for the performance of this Subscription Agreement, or use
to the detriment of the Company or for the benefit of any other person or
persons, or misuse in any way, any Confidential Information of the Company,
including any scientific, technical, trade or business secrets of the Company
and any scientific, technical, trade or business materials that are treated by
the Company as confidential or proprietary, including, but not limited to,
ideas, discoveries, inventions, developments and improvements belonging to the
Company and Confidential Information obtained by or given to the Company about
or belonging to third parties.

      16. Miscellaneous.

            (a) This Subscription Agreement, together with the Registration
Rights Agreement, constitute the entire agreement between the Subscriber and the
Company with respect to the subject matter hereof and supersede all prior oral
or written agreements and understandings, if any, relating to the subject matter
hereof. The terms and provisions of this Subscription Agreement may be waived,
or consent for the departure therefrom granted, only by a written document
executed by the party entitled to the benefits of such terms or provisions.

            (b) Each of the Subscriber's representations and warranties made in
this Subscription Agreement will survive the execution and delivery hereof and
delivery of the Shares for a period of twelve (12) months from the date of
issuance.

            (c) Each of the parties hereto will pay its own fees and expenses
(including the fees of any attorneys, accountants, appraisers or others engaged
by such party) in connection with this Subscription Agreement and the
transactions contemplated hereby whether or not the transactions contemplated
hereby are consummated.

                                       15
<PAGE>

            (d) This Subscription Agreement may be executed in one or more
counterparts each of which will be deemed an original, but all of which will
together constitute one and the same instrument.

            (e) Each provision of this Subscription Agreement will be considered
separable and, if for any reason any provision or provisions hereof are
determined to be invalid or contrary to applicable law, such invalidity or
illegality will not impair the operation of or affect the remaining portions of
this Subscription Agreement.

            (f) Paragraph titles are for descriptive purposes only and will not
control or alter the meaning of this Subscription Agreement as set forth in the
text.

      17. Omnibus Signature Page. This Subscription Agreement is intended to be
read and construed in conjunction with the Registration Rights Agreement.
Accordingly, pursuant to the terms and conditions of this Subscription Agreement
and such related agreements it is hereby agreed that the execution by the
Subscriber of this Subscription Agreement, in the place set forth herein, will
constitute agreement to be bound by the terms and conditions hereof and the
terms and conditions of the Registration Rights Agreement, with the same effect
as if each of such separate, but related agreement, were separately signed.

           - the remainder of the page was intentionally left blank -

                                       16
<PAGE>

                       ANTI-MONEY LAUNDERING REQUIREMENTS

<TABLE>
<CAPTION>
                                                                          How big is the problem and why is
The USA PATRIOT Act                   What is money laundering?           it important?
-----------------------------------------------------------------------------------------------------------
<S>                                   <C>                                 <C>
The USA PATRIOT Act is designed to    Money laundering is the process     The use of the U.S. financial
detect, deter, and punish             of disguising illegally obtained    system by criminals to facilitate
terrorists in the United States and   money so that the funds appear to   terrorism or other crimes could
abroad.  The Act imposes new          come from legitimate sources or     well taint our financial
anti-money laundering requirements    activities.  Money laundering       markets.  According to the U.S.
on brokerage firms and financial      occurs in connection with a wide    State Department, one recent
institutions.  Since April 24, 2002   variety of crimes, including        estimate puts the amount of
all brokerage firms have been         illegal arms sales, drug            worldwide money laundering
required to have new, comprehensive   trafficking, robbery, fraud,        activity at $1 trillion a year.
anti-money laundering programs.       racketeering, and terrorism.

To help you understand theses
efforts, we want to provide you
with some information about money
laundering and our steps to
implement the USA PATRIOT Act.
</TABLE>

What the Placement Agent is required to do to eliminate money laundering?

Under new rules required by the USA PATRIOT Act, the Placement Agent's
anti-money laundering program must designate a special compliance officer, set
up employee training, conduct independent audits, and establish policies and
procedures to detect and report suspicious transaction and ensure compliance
with the new laws.

As part of the Placement Agent's required program, it may ask you to provide
various identification documents or other information. Until you provide the
information or documents required, the Placement Agent may not be able to effect
any transactions for you.

                                       17
<PAGE>

                       AMERICAN CARESOURCE HOLDINGS, INC.
                            OMNIBUS SIGNATURE PAGE TO
            SUBSCRIPTION AGREEMENT AND REGISTRATION RIGHTS AGREEMENT

Subscriber hereby elects to purchase a total of ______ Shares at a price of
$5.00 per Share for a total cost of $__________ (NOTE: to be completed by the
Subscriber) and agrees to all of the terms and conditions of this Agreement and
the Registration Rights Agreement referred to herein.

Date (NOTE: To be completed by the Subscriber): __________________, 2006

--------------------------------------------------------------------------------
   If the Subscriber is an INDIVIDUAL, and if purchased as JOINT TENANTS, as
                  TENANTS IN COMMON, or as COMMUNITY PROPERTY:

         ____________________________       ______________________________
         Print Name(s)                      Social Security Number(s)

         ___________________________        ______________________________
         Signature(s) of Subscriber(s)      Signature

         ____________________________       ______________________________
         Date                               Address

       If the Subscriber is a PARTNERSHIP, CORPORATION, LIMITED LIABILITY
                               COMPANY or TRUST:

         ____________________________       ______________________________
         Name of Partnership,               Federal Taxpayer
         Corporation, Limited               Identification Number
         Liability Company or Trust

         By:_________________________       ______________________________
            Name:                           State of Organization
            Title:

         ____________________________       ______________________________
         Date                               Address

AMERICAN CARESOURCE HOLDINGS, INC.

By: __________________________
    Authorized Officer

                                       18

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