Document:

f8k031910ex4i_globhealth.htm

     

    Exhibit 4.1

     

    FORM
OF

    SECURITIES
PURCHASE AGREEMENT

     

    THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made
as of _________, 2010, by and among _______________, a ________ corporation (the
“Company”),
____________, an Illinois limited liability company (the “Investor”), and
_________, President and Chief Executive Officer of the Company, in his
individual capacity, (the “Affiliate”).

    

    RECITALS

     

    WHEREAS, the Company has
authorized the sale and issuance of an interest bearing debenture with a
____________ percent (___%) original issue discount and a rate of ___% per annum
that matures ________ (___) months from the date hereof in substantially the
form attached hereto as Exhibit A (the “Debenture”), a
warrant to exercise a number of shares equal to the $___________ or ________% of
the cash paid at Closing divided by the Market Price (as defined in the
Debenture) and with an initial exercise price of $_____, subject to adjustment,
and an expiration date five (5) years from the date hereof in substantially the
form attached hereto as Exhibit B (the “Warrant”), and common
stock issuable upon satisfaction of all or part of the Note or on exercise of
the warrant (collectively, the “Underlying Shares”)
(collectively, the Debenture, the Warrant and the Underlying Shares shall be
referred to as the “Securities”) as
provided herein in exchange for a loan by the Investor to the Company of
________________ Dollars ($___________) (the “Loan
Amount”);

    

    WHEREAS, the Loan Amount shall
bear interest at the rate of ___% and shall have an original issue discount of
_____________ percent (____%);

    

    WHEREAS, the Investor has
agreed to deliver to the Company at Closing (as defined herein) the total of:
(i) $__________ in cash; (ii) __________ secured notes in the amount of
$_________ each bearing interest at the rate of 5% per annum in substantially
the form attached hereto as Exhibit C-1 (each a
“Investor Note”
and collectively, the “Investor
Notes”);

    

    WHEREAS, as an inducement to
enter into this Agreement and as collateral for the Debenture, the Affiliates
have agreed to pledge _________ shares of common stock of the Company (the
“Collateral
Shares”), which shall have been issued by the company more than ________
months prior to the date hereof;

    

    WHEREAS, at the Closing, the
Company desires to sell, and the Investor desires to purchase, the Securities
upon the terms and conditions stated in this Agreement;

    

    WHEREAS, this Agreement, the
Debenture, the Warrant, the Pledge Agreement (as defined herein), the Guaranty
Agreement (as defined herein), the Investor Notes and the Escrow Agreement (as
defined herein) are sometimes collectively referred to herein as the “Transaction
Documents.”

    

    NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises,
representations, warranties and covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    ARTICLE
1

    

    AUTHORIZATION
AND SALE OF SECURITIES

    

    1.1 Authorization. The Company has authorized
the sale and issuance of the Debenture with a principal amount of $__________
and a maturity date __________ (___) months following the date hereof, and the
Warrant having an expiration date on the fifth (5th)
anniversary of the date hereof.

    

    1.2 Closing Date. The closing of the
purchase and sale of the Securities hereunder (the “Closing”) shall be
held at the offices of ____________, at 10:00 a.m. New York time on or before
___________, 2010 or at such other time and place upon which the Company and the
Investor shall agree.

    

    1.3 Closing Deliverables of the
Company, Affiliates and the Investor.

    

    (a) Closing Deliverables of the
Company.  At
the Closing, subject to the terms and conditions of this Agreement, the Company
agrees to issue and deliver to the Investor the instruments identified in (i)
through (v) below:

     

    (i)   all
executed Transaction Documents that the Company is a party to;

     

    (ii)   completed
Schedules to this Agreement;

     

    (iii)   a
certificate from a duly authorized officer of the Company certifying that the
representations made by the Company in Article 2 are true and correct as of the
Closing;

     

    (iv)   a
corporate resolution authorizing this financing transaction as contemplated in
the Transaction Documents and approving the entry into the Transaction
Documents; and

     

    (v)   an
opinion of Anslow & Jaclin, LLP in the form annexed hereto.

    

    (b) Closing Deliverables of the
Affiliate. In order to induce Investor to purchase the Debenture and
Warrant, at the Closing, the Affiliate shall execute and deliver to the Investor
the documents identified in (i) below:

    

    (i) a pledge
agreement between the Affiliate and the Investor whereby the Affiliate shall
pledge ____________ (___________) shares (the “Pledge Shares”) to
the Company, which shall have been issued by the Company more than __________
months prior to the date hereof (the “Pledge Agreement”),
and a related Escrow Agreement in substantially the forms attached hereto as
Exhibit D and Exhibit
D-1; and

    

    (c) Closing Deliverables of the
Investor. At
the Closing, subject to the terms and conditions of this Agreement, the Investor
agrees to issue and/or deliver to the Company, the following closing item
deliverables identified in (i) and (ii), below:

    

    (i)   $___________
in cash (the “Purchase
Price”) pursuant to the wire instruction set forth in Exhibit F attached
hereto; and

    

    (ii)   ___________
Investor Notes, each in the principal amount of $____________ bearing interest
at the rate of ___% per annum.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    ARTICLE
2

    

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

    

    The
Company represents and warrants to the Investor, as of the date hereof, as
follows:

    

    2.1 Organization, Good Standing
and Power. The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Nevada and has the
requisite corporate power to own, lease and operate its properties and assets
and to conduct its business as it is now being conducted. The Company is not in
violation of any of the provisions of its Certificate of Incorporation or
Bylaws.  Except as disclosed on Schedule 2.1, the
Company does not have any Subsidiaries (as defined below) or own securities of
any kind in any other entity. The Company is duly qualified to do business and
is in good standing in every jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary, except in
such jurisdictions in which the failure to so qualify would not have a material
adverse affect on the Company. “Subsidiary” shall
mean any corporation or other entity of which at least a majority of the
securities or other ownership interest having ordinary voting power (absolutely
or contingently) for the election of directors or other persons performing
similar functions are at the time owned directly or indirectly by the Company
and/or any of its other Subsidiaries.

    

    2.2 Corporate Power;
Authorization. The Company has all requisite legal and corporate
power and has taken all requisite corporate action to execute and deliver this
Agreement and the other Transaction Documents, to sell and issue the Securities,
to issue the shares underlying the Warrant upon exercise of the Warrant in
accordance with the terms of such Warrant, and to carry out and perform all of
its obligations under this Agreement and the other Transaction Documents. This
Agreement and the other Transactional Documents constitute, and will constitute,
legal, valid and binding obligations of the Company, enforceable in accordance
with their respective terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization or similar laws relating to or affecting
the enforcement of creditors’ rights generally and (b) as limited by
equitable principles generally. The execution and delivery of the Transaction
Documents do not, and the performance of the Transaction Documents and the
compliance with the provisions hereof and thereof, including the issuance, sale
and delivery of the Securities by the Company will not, conflict with, or result
in a breach or violation of the terms, conditions or provisions of, or
constitute a default under, or result in the creation or imposition of any lien
pursuant to the terms of, the certificate of incorporations (the “Certificate”)
or by-laws (the “Bylaws”) of the Company, each as amended to date, or any
statute, law, rule or regulation or any state or federal order, judgment or
decree or any indenture, mortgage, lease or other agreement or instrument to
which the Company or any of its properties is subject, except for any conflict,
breach, violation, default or imposition of a lien (other than pursuant to the
terms of the Certificate or Bylaws) that would not, individually or in the
aggregate, reasonably be expected to have a material adverse effect on the
assets, liabilities, financial condition, business or operations of the
Company.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    2.3 Issuance and Delivery of the
Securities. 
The Securities are duly authorized and, when issued at the Closing, will
be validly issued. The shares underlying the Warrant and which may be
delivered in full or partial satisfaction of the Debenture are duly authorized
and, upon exercise of the Warrant or such satisfaction the Debenture in
accordance with the terms thereof, will be validly issued, fully paid and
nonassessable.  The issuance and delivery of the Securities are not subject
to any right of first refusal, preemptive right, right of participation, or any
similar right existing in favor of any person or any liens or
encumbrances.  When issued in compliance with the provisions of this
Agreement and the Debenture and the Warrant as the case may be, the issuance of
the Securities does not require the approval of the Company’s stockholders under
the provisions of the Certificate or Nevada law, or, any stock exchange or
self-regulatory organization.

    

    2.4 No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and
thereby do not and will not (i) violate any provision of the Company’s
Certificate or Bylaws, each as amended to date, (ii) conflict with, or
constitute a default (or an event which 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 of, any agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party or by which the Company’s respective properties
or assets are bound, or (iii) result in a violation of any federal, state or
local statute, rule, regulation, order, judgment or decree (including federal
and state securities laws and regulations) applicable to the Company or by which
any property or asset of the Company is bound or affected.

    

    2.5 SEC Documents; Financial
Statements. Each report delivered to
the Investors is a true and complete copy of such document as filed by
the Company with the Securities and Exchange Commission (the “SEC”). The Company
has filed in a timely manner all documents that the Company was required to file
with the SEC, such documents, together with the exhibits thereto (the “SEC Documents”),
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) during
the twelve calendar months preceding the date hereof.  As of their
respective filing dates, all SEC Documents complied in all material respects
with the requirements of the Exchange Act.  None of the SEC Documents as of
their respective dates contained any untrue statement of material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances under which they
were made, not misleading.  The financial statements of the Company
included in the SEC Documents (the “Financial
Statements”) comply in all material respects with applicable accounting
requirements and with the published rules and regulations of the SEC with
respect thereto.  The Financial Statements have been prepared in accordance
with generally accepted accounting principles consistently applied and fairly
present the consolidated financial position of the Company and its subsidiaries,
if any, at the dates thereof and the consolidated results of their operations
and consolidated cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal, recurring adjustments or to the extent that
such unaudited statements do not include footnotes).

    

    2.6 Governmental
Consents.  No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any
federal, state, or local governmental authority on the part of the Company is
required in connection with the consummation of the transactions contemplated
hereby except for compliance with the securities and blue sky laws in the states
in which the Debenture and Warrant are offered and/or sold, which offer and sale
will be effected in compliance with such laws.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    2.7 Capitalization.  The
authorized capital stock of the Company consists of 196,000,000 shares of common
stock, par value $0.0001 per share (the “Common Stock”) and
80,000,000 shares of preferred stock, par value $0.0001 per share (the “Preferred Stock”). As
of the date hereof, 63,522,000 shares of Common Stock and no shares of Preferred
Stock are issued and outstanding.  Except as disclosed on Schedule 2.7, there
are no outstanding warrants, options, convertible or exchangeable securities or
other rights, agreements or arrangements of any character under which the
Company is or may be obligated to issue any equity securities of any
kind.

    

    2.8 Litigation.  Except as
disclosed to the Investor in writing and except as disclosed in the SEC
Documents, there are no actions, suits, proceedings or investigations pending
or, to the best of the Company’s knowledge, threatened against the Company or
any of its properties before or by any court or arbitrator or any governmental
body, agency or official in which there is a reasonable likelihood (in the
reasonable judgment of the Company) of an adverse decision that (a) could
have a material adverse effect on the assets, liabilities, financial condition,
business or operations of the Company, or (b) could impair the ability of
the Company to perform in any material respect its obligations under this
Agreement, the Warrant, the Debenture, or any other Transaction
Document.

    

    2.9 Company not an “Investment
Company”.  The Company has been advised by competent counsel of
the rules and requirements under the Investment Company Act of 1940, as amended
(the “Investment
Company Act”).  The Company is not, and immediately after receipt of
payment for the Securities will not be, an “investment company” or an entity
“controlled” by an “investment company” within the meaning of the Investment
Company Act and shall conduct its business in a manner so that it will not
become subject to the Investment Company Act.

    

    2.10 Compliance. The
Company’s Common Stock is registered pursuant to Section 12(g) of the
Exchange Act and is quoted on the Over the Counter Bulletin Board (the “OTCBB”), and the
Company has taken no action designed for the purpose of, or likely to have the
effect of, terminating the registration of its Common Stock under the Exchange
Act or de-listing the Common Stock from the OTCBB, nor has the Company received
any notification that the SEC or the Financial Industry Regulatory Authority
(“FINRA”) is
contemplating terminating such registration or quoting. The Company is in
material compliance with the listing and maintenance requirements for continued
quoting of the Common Stock.

    

    2.11 Use of
Proceeds.  The proceeds of the sale of the Securities shall be
used for working capital or general corporate purposes.

    

    2.12 Brokers and
Finders.  Except as disclosed on Schedule 2.12, no
person or entity will have, as a result of or in connection with the
transactions contemplated by this Agreement, any valid right, interest or claim
against or upon the Company or the Investor for any commission, fee or other
compensation pursuant to any agreement, arrangement or understanding, written or
oral, entered into by or on behalf of the Company.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    2.13 Intellectual
Property.

    

    (a) “Intellectual
Property” shall mean patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, trade secrets, licenses,
information and other proprietary rights and processes disclosed on Schedule
2.13(a).

     

    (b) Except as
disclosed on Schedule
2.13(b), the Company owns or has the valid right to use all of the
Intellectual Property that is necessary for the conduct of the Company’s
business as currently conducted or as currently proposed to be conducted free
and clear of all material liens and encumbrances.

     

    (c) Except as
disclosed on Schedule
2.13(c), (i) the conduct of the Company’s business as currently conducted
does not infringe or otherwise conflict with (collectively, “Infringe”) any
Intellectual Property rights of any third party or any confidentiality
obligation owed by the Company to a third party and the Company has not received
any written notice of any such Infringement, and (ii) to the knowledge of the
Company, the Intellectual Property and confidential information of the Company
are not being Infringed by any third party.

    

    2.14 Questionable
Payments.  Neither the Company nor, to the best knowledge of
the Company, any of its current or former stockholders, directors, officers,
employees, agents or other persons acting on behalf of the Company, has on
behalf of the Company or in connection with its business: (a) used any corporate
funds for unlawful contributions, gifts, entertainment or other unlawful
expenses relating to political activity; (b) made any direct or indirect
unlawful payments to any governmental officials or employees from corporate
funds; (c) established or maintained any unlawful or unrecorded fund of
corporate monies or other assets; (d) made any false or fictitious entries on
the books and records of the Company; or (e) made any unlawful bribe, rebate,
payoff, influence payment, kickback or other unlawful payment of any
nature.

    

    2.15 Transactions with
Affiliates.  Except as disclosed on Schedule 2.15, none
of the officers, directors or shareholders of the Company and, to the best
knowledge of the Company, none of the employees of the Company is presently a
party to any transaction with the Company or to a presently contemplated
transaction (other than for services as employees, officers and directors) that
would be required to be disclosed pursuant to Item 404 of Regulation S-K
promulgated under the Securities Act of 1933., as amended (the “Securities
Act”).

    

    2.16 Insurance.  The
Company maintains and will continue to maintain insurance with financially sound
and reputable insurers in such amounts and covering such risks and in such
amounts as are reasonably adequate, prudent and consistent with industry
practice for the conduct of its business and the value of its property, all of
which insurance is in full force and effect.  The Company has not
received notice from, and has no knowledge of any threat by, any insurer that
has issued any insurance policy to the Company that such insurer intends to deny
coverage under or cancel, discontinue or not renew any insurance policy in force
as of the date hereof.

    

    2.17 No Additional
Agreements.  The Company does not have any agreement or
understanding with any Investor with respect to the transactions contemplated
hereby other than as specified in this Agreement.

    

    2.18 Absence of Undisclosed
Liabilities.  The Company has no material liabilities of any nature
(whether absolute, accrued, contingent or otherwise), except (i) as and to the
extent reflected in the Financial Statements, and (ii) for liabilities that have
been incurred in the ordinary course of business consistent with past practice
and that would not, individually and in the aggregate, reasonably be expected to
have a material adverse effect on the assets, financial condition, business or
operations of the Company.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    2.19 Governmental
Authorizations.  The Company has
all permits, licenses and other authorizations of governmental authorities that
are required for the conduct of its business and operations as currently
conducted or as currently proposed to be conducted, the lack of which could
materially and adversely affect the assets, financial condition, business or
operations of the Company.  The Company is, and at all times has been, in
compliance with the provisions of its material permits, licenses and other
governmental authorizations.

    

    2.20 No Material Adverse
Change. Except as disclosed on
Schedule 2.20,
since November 30, 2009, there have not been any changes in the assets,
liabilities, financial condition or operations of the Company that reflected in
the Financial Statements except changes in the ordinary course of business which
have not been, either individually or in the aggregate, materially
adverse.  The Company does not have pending before the SEC any request
for confidential treatment of information.

    

    2.21 Reservation.  The
Company has duly reserved for issuance such number of shares of Common Stock as
may be issuable from time to time upon exercise, exchange or conversion, as the
case may be, of the Securities.

    

    2.22 Internal Accounting
Controls.  The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any
differences.  The Company has established disclosure controls and
procedures (as defined in Exchange Rules 13a-15 and 15d-15) for the Company and
designed such disclosure controls and procedures to ensure that material
information relating to the Company is made known to the certifying officers by
others within those entities, particularly during the period in which the
Company’s Form 10-K or 10-Q, as the case may be, is being prepared.

    

    2.23 Title to
Assets.  Except as set forth on Schedule 2.23, the Company has
good and marketable title in fee simple to all real property owned by it that is
material to the business of the Company and good and marketable title in all
tangible personal property owned by it that is material to the business of the
Company in each case free and clear of all liens, except for liens as do not
materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and
liens for the payment of federal, state or other taxes, the payment of which is
neither delinquent nor subject to penalties.  Any real property and
facilities held under lease by the Company is held by it under valid, subsisting
and enforceable leases with which the Company is in material
compliance.

    

    2.24 Registration
Rights. Except as disclosed on
Schedule 2.24,
the Company has not granted or agreed to grant to any person any rights
(including “piggy back” registration rights) to have any securities of the
Company registered with the SEC or any other governmental
authority.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    2.25 Material Non-Public
Information.  The Company confirms that it has not provided the
Investor or their agents or counsel with any information that constitutes or
might constitute material non-public information as of the
Closing.  The Company understands and confirms that the Investors
shall be relying on the foregoing representations in effecting transactions in
securities of the Company.

    

    2.26 Dilution. The Company
acknowledges and agrees that the issuance of the Securities will have a
potential dilutive effect on the equity holdings of other holders of the
Company’s equity or rights to receive equity of the Company. The Board of
Directors of the Company has concluded, in its good faith business judgment that
the issuance of the Securities is in the best interests of the
Company.  The Company specifically acknowledges that its obligation to
issue the Securities is absolute regardless of the dilution such issuance may
have on the ownership interests of other stockholders of the Company or parties
entitled to receive equity securities or equity-linked securities of the
Company.

    

    2.27 Disclosure. Neither
this Agreement nor any other documents, certificates or instruments furnished to
the Investor by or on behalf of the Company in connection with the transactions
contemplated by this Agreement contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements made
herein or therein, in the light of the circumstances under which they were made
herein or therein, not misleading.

    

    2.28 Sarbanes-Oxley
Act.  The Company is in compliance with the applicable provisions of
the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”),
and the rules and regulations promulgated thereunder, that are effective and for
which compliance by the Company is required as of the date hereof.

    

    2.29 Transfer of
Assets.  The Company shall not transfer, convey or assign all
or substantially all of our assets of the Company, including but not limited to,
any of its subsidiaries or all or substantially all of its assets thereof, other
than at fair market value or with the prior written consent of the Investor,
except for a merger in which the Company is the surviving Corporation or in
which the surviving corporation assumes the Company’s obligations under the
Transaction Documents.  In the event that such transfer does occur,
this shall constitute a default of the Transaction Documents and a Trigger Event
(as defined in the Debenture).

    

    2.30  Absence of Certain Company
Control Person Actions or Events. To the Company’s knowledge, none of the
following has occurred during the past five (5) years with respect to a Company
Control Person:

     

    (i)    A petition
under the federal bankruptcy laws or any state insolvency law was filed by or
against, or a receiver, fiscal agent or similar officer was appointed by a court
for the business or property of such Company Control Person, or any partnership
in which he was a general partner at or within two years before the time of such
filing, or any corporation or business association of which he was an executive
officer at or within two years before the time of such filing;

     

    (ii)    Such Company
Control Person was convicted in a criminal proceeding or is a named subject of a
pending criminal proceeding (excluding traffic violations and other minor
offenses);

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    (iii)    Such Company
Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining him from, or otherwise
limiting, the following activities:

     

    (1)
acting, as an investment advisor, underwriter, broker or dealer in securities,
or as an affiliated person, director or employee of any investment company,
bank, savings and loan association or insurance company, as a futures commission
merchant, introducing broker, commodity trading advisor, commodity pool
operator, floor broker, any other Person regulated by the Commodity Futures
Trading Commission (“CFTC”) or engaging in
or continuing any conduct or practice in connection with such
activity;

     

    (2)  engaging
in any type of business practice; or

     

    (3)
engaging in any activity in connection with the purchase or sale of any security
or commodity or in connection with any violation of federal or state securities
laws or federal commodities laws;

     

    (iv)    Such Company
Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any federal or state authority
barring, suspending or otherwise limiting for more than sixty (60) days the
right of such Company Control Person to engage in any activity described in
paragraph (3) of this item, or to be associated with Persons engaged in any such
activity; or

     

    (v)    Such Company
Control Person was found by a court of competent jurisdiction in a civil action
or by the CFTC or SEC to have violated any federal or state securities law, and
the judgment in such civil action or finding by the CFTC or SEC has not been
subsequently reversed, suspended, or vacated.

    

    ARTICLE
3

    

    REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE INVESTOR

    

    The
Investor hereby severally represents and warrants to the Company:

    

    3.1 Authorization. The execution, delivery
and performance by the Investor of the Transaction Documents to which such
Investor is a party have been duly authorized and will each constitute the valid
and legally binding obligation of such Investor, enforceable against such
Investor in accordance with their respective terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability, relating to or affecting creditors’ rights
generally.

    

    3.2 Purchase Entirely for Own
Account. The Securities to be received by such Investor hereunder will be
acquired for such Investor’s own account, not as nominee or agent, and not with
a view to the resale or distribution of any part thereof in violation of the
1933 Act, and such Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same in violation of the 1933
Act without prejudice, however, to such Investor’s right at all times to sell or
otherwise dispose of all or any part of such Securities in compliance with
applicable federal and state securities laws. Nothing contained herein
shall be deemed a representation or warranty by such Investor to hold the
Securities for any period of time. Such Investor is not a broker-dealer
registered with the SEC under the 1934 Act or an entity engaged in a business
that would require it to be so registered.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    3.3 Investment
Experience. Such Investor acknowledges that it can bear the economic risk
and complete loss of its investment in the Securities and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment contemplated hereby.

    

    3.4 Accredited Investor.
The Investor is an “accredited investor” (as defined in Rule 501 of Regulation
D), and the Investor has such experience in business and financial matters that
it is capable of evaluating the merits and risks of an investment in the
Securities. The Investor is not required to be registered as a broker-dealer
under Section 15 of the Exchange Act and such Purchaser is not a broker-dealer.
The Investors acknowledges that an investment in the Securities is speculative
and involves a high degree of risk.

    

    3.5 Restricted
Securities. Such Investor understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the 1933 Act only in
certain limited circumstances.

    

    ARTICLE
4

    

    INDEMNIFICATION

    4.1 Indemnification.

    

    (a) The
Company will indemnify and hold the Investor and their directors, officers,
shareholders, partners, employees and agents (each, an “Investor Party”)
harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation (collectively, “Losses”) that the
Investor may suffer or incur as a result of or relating to any
misrepresentation, breach or inaccuracy of any representation, warranty,
covenant or agreement made by the Company in any of the Transaction
Documents.  In addition to the indemnity contained herein, the Company
will reimburse each Investor for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are
incurred.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (b) Conduct of Indemnification
Proceedings. Promptly
after receipt by any Person (the “Indemnified Person”)
of notice of any demand, claim or circumstances which would or might give rise
to a claim or the commencement of any action, proceeding or investigation in
respect of which indemnity may be sought, such Indemnified Person shall promptly
notify the Company in writing and the Company shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to such Indemnified
Person, and shall assume the payment of all fees and expenses.  In any
such proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless: (i) the Company and the Indemnified Person shall
have mutually agreed to the retention of such counsel; or (ii) in the reasonable
judgment of counsel to such Indemnified Person representation of both parties by
the same counsel would be inappropriate due to actual or potential differing
interests between them.  The Company shall not be liable for any
settlement of any proceeding effected without its written consent, which consent
shall not be unreasonably withheld, but if settled with such consent, or if
there be a final judgment for the plaintiff, the Company shall indemnify and
hold harmless such Indemnified Person from and against any loss or liability (to
the extent stated above) by reason of such settlement or
judgment.  Without the prior written consent of the Indemnified
Person, which consent shall not be unreasonably withheld, the Company shall not
effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Party, unless such settlement
includes an unconditional release of such Indemnified Person from all liability
arising out of such proceeding.

    

    ARTICLE
5

    

    COVENANTS
AND ADDITIONAL AGREEMENTS OF THE COMPANY

    

    5.1 Reservation of Common
Stock.  The Company shall at all times reserve and keep
available out of its authorized but unissued shares of Common Stock, solely for
the purpose of providing for the exercise of the Warrant or the delivery of
shares in full or partial satisfaction of the Debenture, fifty million
(50,000,000) shares of Common Stock in the event the Investor exercises the
Warrant and/or requests the Debenture be satisfied by the issuance and delivery
of Common Stock.

    

    5.2 Reports.  If
the information is not already publicly disclosed in the Company’s public
filings available on the SEC’s website, the Company will furnish to the
Investors and/or their assignees such information relating to the Company and
its Subsidiaries as from time to time may reasonably be requested by the
Investors and/or their assignees; provided, however, that the Company shall not
disclose material nonpublic information to the Investors, or to advisors to or
representatives of the Investors, unless prior to disclosure of such information
the Company identifies such information as being material nonpublic information
and provides the Investors, such advisors and representatives with the
opportunity to accept or refuse to accept such material nonpublic information
for review and any Investor wishing to obtain such information enters into an
appropriate confidentiality agreement with the Company with respect
thereto.

    

    5.3 No Conflicting
Agreements.  The Company will not take any action, enter into
any agreement or make any commitment that would conflict or interfere in any
material respect with the Company’s obligations to the Investors under the
Transaction Documents.

    

    5.4 Compliance with
Laws.  The Company will comply in all material respects with
all applicable laws, rules, regulations, orders and decrees of all governmental
authorities.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    5.5 Securities Laws Disclosure;
Publicity. The Company shall, by
8:30 a.m. Eastern time on the fourth business day following the date of this
Agreement, issue a press release or file a Current Report on Form 8-K, in each
case reasonably acceptable to the Investor, disclosing the transactions
contemplated hereby.  The Company and the Investor shall consult with
each other in issuing any press releases with respect to the transactions
contemplated hereby, and neither the Company nor the Investor shall issue any
such press release or otherwise make any such public statement without the prior
consent of the Company, with respect to any press release of the Investor, or
without the prior consent of the Investor, with respect to any press release of
the Company, which consent shall not unreasonably be withheld, except if such
disclosure is required by law, in which case the disclosing party shall promptly
provide the other party with notice of such public statement or communication
and consult with each other with respect thereto prior to such public
disclosure.  Notwithstanding the foregoing, other than as set forth
above, the Company shall not publicly disclose the name of any Investor, or
include the name of any Investor in any filing with the SEC or any regulatory
agency or stock exchange, except to the extent such disclosure is required by
law or stock exchange regulation, in which case the Company shall provide the
Investor with prior notice of such disclosure.

    

    5.6 Listing of Common
Stock. The
Company hereby agrees to maintain the listing on the Bulletin Board of the
Common Stock sold hereunder or issuable upon exercise of the Warrant or exchange
of the  Debenture.  The Company further agrees, if the Company
applies to have its Common Stock traded on any other stock exchange or quotation
system, it will include in such application the Common Stock issuable upon
exercise of the Warrants and the Common Stock issuable upon exchange of the
Debenture, and will take such other action as is necessary or desirable in the
opinion of the Investors to cause the Common Stock issuable upon exercise of the
Warrant and the Common Stock issuable upon exchange of the Debenture to be
listed on such other stock exchange or quotation system as promptly as possible.
Additionally, the Company shall maintain its eligibility for issuance of shares
under the DWAC system of the Depository Trust Company (“DWAC Eligibility”)
for a period ending six (6) months after the payment in full of the __________
Note or during which _________ holds any Repayment Shares or any Warrants or
Warrant Shares.

    

    5.7   Reporting.  The
Company will remain as a Reporting Issuer and with respect to all filings of
period quarterly and annual filings and any other filing required to be Rule 144
compliant due to be filed on or after the Closing Date, the Company will commit
to make each such filing in a timely manner (after taking into account any
extensions properly requested) for a period ending six (6) months after the
payment in full of the __________ Note or __________ holds any Repayment Shares
or any Warrants or Warrant Shares.  Until such time as the Investor
may sell the Common Stock without limitation under Rule 144 the Company agrees
that, if the Company fails to file in a timely manner, beyond any applicable
extension period, on the SEC’s EDGAR system any information required to be filed
by it, whether on a Form 10-K, Form 10-Q, Form 8-K, Proxy Statement or
otherwise, the Company shall be liable to pay to the Subscriber an amount equal
to 2% of the sum of the Total Price for each thirty (30) day period after which
the filing is late. As used in this Agreement, “Total Price” means the aggregate
of (i) the Principal amount of the Debenture and (ii) the sum of the Exercise
Price actually paid for exercised Warrant Shares.  The Company shall
pay any payments incurred under this Section in immediately available funds upon
demand by the Investor; provided, however, that the Investor  making
the demand may specify that the payment shall be made in shares of Common Stock
at the Repayment Price applicable to the date of such demand.

    

    5.8   Change in Transfer Agent;
Removal of Legends. (a) Prior to payment in full of the Debenture and
exercise of the Warrants, the Company covenants not to terminate, dismiss or
otherwise remove the Transfer Agent without the written consent of the Investor;
and (b) Upon the earlier of: (i) registration for resale pursuant to a
registration statement; or (ii) Rule 144 becoming available, upon written
request of the Lender, the Company shall (A) deliver to the transfer agent for
the Common Stock irrevocable instructions that the Transfer Agent shall issue a
certificate representing shares of Common Stock without legends upon receipt by
such Transfer Agent of a notice of exercise of the Warrant, exchange of the
Debenture or transfer of the Collateral Shares, and (B) cause its counsel to
deliver to the Transfer Agent one or more blanket opinions to the effect that
the removal of such legends in such circumstances may be effected under the 1933
Act.  From and after the earlier of such dates, upon the Investor’s written
request, the Company shall promptly cause certificates evidencing the Securities
to be replaced with certificates which do not bear such restrictive
legends.  When the Company is required to cause unlegended certificates to
replace previously issued legended certificates, if unlegended certificates are
not delivered to an Investor within five (5) Business Days of submission by that
Investor of legended certificate(s) or the notice to issue shares of Common
Stock without legend to the Transfer Agent as provided above, the Company shall
be liable to the Investor for liquidated damages in an amount equal to 0.5% of
the aggregate purchase price of the Securities evidenced by such certificate(s)
for each thirty (30) day period (or portion thereof) beyond such five (5)
Business Day that the unlegended certificates have not been so delivered. 
In the event that the Company or its counsel fails to deliver the appropriate
instructions to the transfer agent to remove any restrictive legend from Common
Stock from either the exercise of the Warrant, the exchange of the __________
Shares or transfer of the Collateral Shares, then the Company hereby
acknowledges that it authorizes the transfer agent to accept a legal opinion
issued by an attorney reasonably acceptable to the Investor, including but not
limited to Krieger & Prager, LLP.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    ARTICLE
6

    

    MISCELLANEOUS

    

    6.1 Waivers and
Amendments. 
The terms of this Agreement may be waived or amended only upon the written
consent of the Company and the Investor.

    

    6.2 Governing Law.  This Agreement
shall be governed in all respects by and construed in accordance with the laws
of the State of Illinois without any regard to conflicts of laws
principles.

    

    6.3 Survival.  The
representations, warranties, covenants and agreements made in this Agreement
shall survive for a period of one (1) year and any investigation made by the
Company or the Investor and the Closing.

    

    6.4 Successors and
Assigns.  This Agreement and
any of the Transaction Documents can be freely assigned, pledged as collateral
or otherwise transferred by the Investor and any of its successors or
assigns.

    

    6.5 Entire
Agreement.  This Agreement and
the other Transaction Documents constitute the full and entire understanding and
agreement between the parties with regard to the subjects thereof.

    

    6.6 Notices, etc.  All notices and
other communications required or permitted under this Agreement shall be in
writing and may be delivered in person, by telecopy, overnight delivery service
or registered or certified United States mail, addressed to the Company or each
of the Investors, as the case may be, at their respective addresses set forth as
follows:

    

    If to the Company:

    

    With a copy to (which shall not
constitute notice):

    

    

    If to the Investor:

    

    With a copy (which shall not constitute
a notice) to:

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    All notices and other communications
shall be effective upon the earlier of actual receipt thereof by the person to
whom notice is directed or (a) in the case of notices and communications
sent by personal delivery or telecopy, one business day after such notice or
communication arrives at the applicable address or was successfully sent to the
applicable telecopy number, (b) in the case of notices and communications
sent by overnight delivery service, at noon (local time) on the second business
day following the day such notice or communication was sent, and (c) in the
case of notices and communications sent by United States mail, seven days after
such notice or communication shall have been deposited in the United States
mail.

    

    6.7 Severability of this
Agreement.  If any provision
of this Agreement shall be judicially determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

    

    6.8 Counterparts; Signatures by
Facsimile.  This Agreement may
be executed in any number of counterparts, each of which shall be an original,
but all of which together shall constitute one instrument.  This Agreement,
once executed by a party, may be delivered to the other parties hereto by
facsimile transmission of a copy of this Agreement bearing the signature of the
party so delivering this Agreement.

    

    6.9 Further
Assurances. 
Each party to this Agreement shall do and perform or cause to be done and
performed all such further acts and things and shall execute and deliver all
such other agreements, certificates, instruments and documents as the other
party hereto may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

    

    6.10 Expenses. Each party shall bear
their own expenses, except that the Company shall pay Investor’s legal fees in
the aggregate of $15,000 and any fees incurred with respect to such legal
services for closing this transaction.  The Company has already paid
$5,000 and the remainder shall be paid from the proceeds of the
financing.

    

    6.11 Replacement of
Securities.  If any certificate or instrument evidencing any
Securities is mutilated, lost, stolen or destroyed, the Company shall issue or
cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefore, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested.  The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party
costs associated with the issuance of such replacement Securities.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

     

    [SIGNATURE
PAGE TO SECURITIES PURCHASE AGREEMENT]

     

    

     

    IN WITNESS WHEREOF, this
Agreement is hereby executed as of the date first above written.

     

    
      	
              INVESTOR:

               

              By:
      ____________________________

              Name:

              Its:

              Dated:

               

              THE
      COMPANY:

               

              By:  ____________________________

              Name:

              Its:

              Dated:

            	
              THE
      AFFILIATE:

               

              By:
      ____________________________

              Name:

              Dated:

            

    

     

    
      
         

      

      
        15f8k031910ex4ii_globhealth.htm

    Exhibit 4.2

     

    THIS
DEBENTURE AND ANY SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS AND THIS DEBENTURE, THE SECURITIES AND ANY INTEREST THEREIN MAY
NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR
AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS, WHICH, IN THE
OPINION OF COUNSEL FOR THE LENDER, WHICH COUNSEL AND OPINION ARE REASONABLY
SATISFACTORY TO COUNSEL FOR THIS CORPORATION, IS AVAILABLE.

    
 

    FORM
OF DEBENTURE

    

      
        	
                Issue
      Amount:  $______

              	
                          ________,
      2010

              

      
 

    

    FOR VALUE
RECEIVED, the undersigned, ____________., a _______
corporation  (referred to herein as the “Borrower”), with
offices at _________________________, hereby unconditionally promises to pay to
the order of _____________________, its endorsees, successors and/or assigns
(the “Lender”),
in lawful money of the United States, at _______________________ or such other
address as the Lender may from time to time designate, the principal sum of
_________________________ Dollars ($____________) (the “Issue Amount”), with
interest from the date of issuance at the rate of __% per annum.  This
Debenture shall mature and become due and payable in full on __________, ____
(the “Maturity
Date”).

    

    Capitalized
terms used herein have the respective meanings ascribed thereto in the
Securities Purchase Agreement dated of even date herewith unless otherwise
defined herein.

    

    1.   Original
Issue Discount.  The Lender shall purchase this Debenture at a
price equal to ___% of the Issue Amount; ___% of the issue amount shall
represent Original Issue Discount. To the extent applicable, this Debenture
shall be deemed a 12 tranche Debenture equal to the sum of $______ and the
amount of $___________ for each Investor Note (the “Paid In
Amount”).

    

    2.   Terms of
Repayment.  Principal of and interest on this Debenture shall
be paid by the Borrower as follows:

    

    (a) Principal
and interest shall be due and payable in full on the Maturity Date and shall be
paid in cash, unless permitted to be paid in shares of common stock pursuant to
Section 3, below.

     

    (b) The
Borrower further agrees that, if any payment made by the Borrower or any other
person is applied in payment of this Debenture and is at any time annulled, set
aside, rescinded, invalidated, declared to be fraudulent or preferential or
otherwise required to be refunded or repaid, or the proceeds of any property
hereafter pledged as security for this Debenture which has been applied in
payment of this Debenture is required to be returned by Lender to the pledgor,
its estate, trustee, receiver or any other party, including, without limitation,
under any bankruptcy law, state or federal law, common law or equitable cause,
then, to the extent of such payment or repayment, the Borrower’s liability
hereunder shall be and remain in full force and effect, as fully as if such
payment had never been made, or, if prior thereto any such lien, security
interest or other collateral hereunder securing the Borrower’s liability
hereunder shall have been released or terminated, this Debenture (and such lien,
security interest or other collateral) shall be reinstated in full force and
effect, and such prior release or termination shall not diminish, release,
discharge, impair or otherwise affect the obligations of the Borrower in respect
to the amount of such payment (or any lien, security interest or other
collateral securing such obligation).

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (c) All
computations of interest, if any, shall be made by Lender on the basis of a year
of 360 days for the actual number of days (including the first day but excluding
the last day) occurring in the period for which such interest is
payable.  Whenever any payment to be made hereunder shall be stated to
be due on a day which is not a business day, such payment shall be made on the
next succeeding day and such extension of time shall in such case be included in
the computation of payment of interest.

    

    (d) At
anytime after the issuance of this Debenture, the Borrower may prepay all or any
part of the outstanding principal amount of this Debenture, together with
interest accrued, if any, upon not fewer than ten (10) trading days’ prior
written notice to the Lender.  In the event the Borrower elects to
prepay any portion of this Debenture prior to the Maturity Date, the Borrower
shall be entitled to satisfy a portion of the amount outstanding under this
Debenture by offsetting the amount owed under this Debenture by an amount equal
to 125% of the amount owed under the Investor Notes which amount will satisfy a
corresponding portion of this Debenture.  Such satisfaction of the
Debenture shall be considered an offset of liabilities and shall be considered,
in full or partial, payment and satisfaction of this Debenture.

    

    For the
avoidance of any doubt, if the Borrower elects to offset this Debenture with the
Investor Notes at a time when no Investor Notes have been paid and satisfied by
the Lender, then the Borrower shall be entitled to offset the amount owed under
this Debenture by $__________ (which is the amount of Investor Notes
outstanding, $_________, times ____%).

    

    (e) The Issue
Amount may be increased to include any costs, fees or other reasonable expenses
incurred by the Lender in connection with this Debenture and the related
documents.

    

    3.   Repayment
in Common Stock.

    

    (a) From the
date that is six (6) months from the date hereof, the Lender shall have the
option, at any time, to request to be re-paid (the “Request for
Repayment”) its Paid In  Amount and accrued interest, in full
or in part, in fully-paid and nonassessable shares of Borrower’s Common Stock at
the rate per share equal to the Fixed Re-Payment Price (the “Re-Payment Rate”),
provided, however, that the Lender shall not be permitted to deliver a Request
for Repayment where the dollar amount of the Request for Repayment would exceed
the dollar amount represented by the difference between (i) the amount
outstanding under this Debenture at the time of the Request for Repayment; and
(ii) ______________ percent (____%) of the aggregate principal amount of all of
the notes issued by the Lender to the Borrower on the date hereof (the “Investor Notes”) and
remaining outstanding and not satisfied in cash by the Lender as of the date of
such Request for Repayment.  For purposes of this Debenture, the term
“Fixed Re-Payment Price” means the Market Price.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    For purposes of this Debenture, the
term “Market Price” shall mean: (i) 100% of the average of three closing bid
prices of the Company’s common stock as selected by the Lender, within the prior
twenty (20) trading days on the OTC Bulletin Board; or (ii) in the event the
Market Price falls below $____ per share on any for any three of  the twenty
(20) trading  days,  prior to delivery of a Request
for Repayment,   the Market Price will be defined as 80% of the
average of three closing bid prices selected by the Lender within the prior
twenty (20) trading  days, in each case as recorded by Bloomberg,
L.P.

    

    (b) As
promptly as practicable after notice of the Request for Repayment, pursuant to
this Section 3, the Borrower shall deliver or cause to be delivered to the
Lender certificates for the full number of shares of Common Stock issuable upon
Request for Repayment of this Debenture, in accordance with the provisions
hereof. Any such repayment shall be deemed to have been made at the time that
such notice for the Request for Repayment shall have been received by the
Borrower.  If, however, the Borrower fails to deliver the full number
of shares due upon any repayment of common stock within three (3) business days
following the Borrower’s receipt of the request for repayment in common stock
(the “Delivery
Date”), the Borrower shall pay liquidated damages in cash equal to $1,500
per day for each day the Shares are not delivered to the Lender. The Lender is
not obligated nor required to surrender this Debenture upon the Request for
Repayment. A Request for Repayment shall be effectuated by faxing a Notice of
Conversion to the Borrower as provided in this paragraph. The Notice of
Conversion shall be executed by the Lender of this Debenture and shall evidence
such Lender’s intention to request repayment of this Debenture or a specified
portion hereof in the form annexed hereto as Exhibit A. Unless the
Request for Repayment convert the entire remaining principal of this Debenture,
the Lender shall not be required to deliver to the Borrower the original
Debentures.  Facsimile delivery of the Notice of Conversion shall be
accepted by the Borrower at facsimile number (604) 324-4845; Attn: Dr. Hassan
Salari, Chief Executive Officer. Certificates representing Common Stock will be
delivered to the Lender at the address specified in the Notice of Conversion
(which may be the Lender’s address for notices as contemplated by the Securities
Purchase Agreement or a different address), by electronic transfer, by crediting
the account of the Lender’s prime broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”)
system.

    

    (c) If, on the relevant Delivery Date,
the Company fails for any reason to deliver the Repayment Shares to be DWAC
Eligible, and the Lender  purchases, in an arm’s-length open market
transaction or otherwise, shares of Common Stock (the “Covering Shares”) in
order to make delivery in satisfaction of a sale of Common Stock by the
Lender  (the “Sold Shares”), which
delivery such Lender anticipated to make using the shares to be issued upon such
Request for Repayment  (a “Buy-In”), the Lender
shall have the right to require the Company to pay to the Lender, in addition to
and not in lieu of  the amounts contemplated in other provisions of
the Transaction Agreements, including, but not limited to, the provisions of the
immediately preceding Section, the Buy-In Adjustment Amount (as defined below).
The “Buy-In Adjustment Amount” is the amount equal to the number of Sold Shares
multiplied by the excess, if any, of (x) the Lender’s total purchase price per
share (including brokerage commissions, if any) for the Covering Shares over (y)
the net proceeds per share (after brokerage commissions, if any) received by the
Lender from the sale of the Sold Shares.  The Company shall pay the
Buy-In Adjustment Amount to the Lender in immediately available funds
immediately upon demand by the Lender.  By way of illustration and not
in limitation of the foregoing, if the Lender purchases shares of Common Stock
having a total purchase price (including brokerage commissions) of $11,000 to
cover a Buy-In with respect to shares of Common Stock it sold for net proceeds
of $10,000, the Buy-In Adjustment Amount which Company will be required to pay
to the Lender will be $1,000.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (c) Percentage
Cap.  Notwithstanding the provisions of this Debenture, in no
event (except as specifically provided in the Debenture as an exception to this
provision), (i) during the forty-five (45) day period prior to the Maturity
Date, or (ii) while there is outstanding a tender offer for any or all of the
shares of the Borrower’s Common Stock) shall the Lender be entitled to request
re-payment of this Debenture, or the Borrower have the obligation or option to
issue shares upon such request or in lieu of cash payments hereunder, to the
extent that, after such payment of common stock or issuance the sum of (1) the
number of shares of Common Stock beneficially owned by the Lender and its
affiliates, and (2) the number of shares of Common Stock issuable upon the
request of repayment of the Debenture with respect to which the determination of
the proviso is being made, would result in beneficial ownership by the Lender
and its affiliates of more than 9.99% (the “Percentage Cap”) of
the outstanding shares of Common Stock (after taking into account the shares to
be issued to the Lender upon such repayment).  For purposes of the
proviso to the immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 12(d) of the Securities Exchange Act of
1934, as amended.

    

    4.   Liability
of the Borrower.  The Borrower is unconditionally, and without
regard to the liability of any other person, liable for the payment and
performance of this Debenture and such liability shall not be affected by an
extension of time, renewal, waiver, or modification of this Debenture or the
release, substitution, or addition of collateral for this
Debenture.  Each person signing this Debenture consents to any and all
extensions of time, renewals, waivers, or modifications, as well as to release,
substitution, or addition of guarantors or collateral security, without
affecting the Borrower’s liabilities hereunder.

    

    5.   Representations
and Warranties.  The Borrower represents and warrants as
follows:

    

    (i) the
Borrower is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada;

    

    (ii) the
execution, delivery and performance by the Borrower of this Debenture are within
the Borrower’s powers, have been duly authorized by all necessary action, and do
not contravene: (A) the Borrower’s certificate of incorporation or by-laws; or
(B) any law or agreement or document binding on or affecting the
Borrower;

    

    (iii) no
authorization or approval or other action by, and no notice to or filing with,
any governmental authority, regulatory body or third person is required for the
due execution, delivery and performance by the Borrower of this
Debenture;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (iv) this
Debenture constitutes the legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms except as
enforcement hereof may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditors’ rights generally and subject to the
applicability of general principles of equity;

    

    (v) the
Borrower has all requisite power and authority to own and operate its property
and assets and to conduct its business as now conducted and proposed to be
conducted and to consummate the transactions contemplated hereby;

    

    (vi) the
Borrower is duly qualified to conduct its business and is in good standing in
each jurisdiction in which the character of the properties owned or leased by
it, or in which the transaction of its business makes such qualification
necessary except to the extent such failure to qualify would not have a material
adverse effect on the Company;

    

    (vii) there is
no pending or, to the Borrower ‘s knowledge, threatened action or proceeding
affecting the Borrower before any governmental agency or arbitrator which
challenges or relates to this Debenture or which may otherwise have a material
adverse effect on the Borrower;

    

    (viii) after
giving effect to the transactions contemplated by this Debenture, the Borrower
is Solvent;

    

    (ix) the
Borrower is not in violation or default of any provision of its certificate of
incorporation or by-laws, each as currently in effect, or any instrument,
judgment, order, writ, decree or contract, statute, rule or regulation to which
the Borrower is subject;

    

    (x) this
Debenture is validly issued, free of any taxes, liens, and encumbrances related
to the issuance, hereof and is not subject to preemptive right or other similar
right of members of the Borrower; and

    

    (xi) the
Borrower has taken all required action to reserve for issuance fifty million
(50,000,000) shares of Common Stock as may be issuable from time to time upon a
request for repayment of this Debenture in common stock.

    

    6.   Covenants.  So
long as any principal or interest, if any, is due hereunder and shall remain
unpaid, the Borrower will, unless the Lender shall otherwise consent in
writing:

    

    (a) Maintain
and preserve its existence, rights and privileges;

    

    (b) Not: (i)
directly or indirectly sell, lease or otherwise dispose of any of its property
or assets other than in its ordinary course of business, in the aggregate, to
any person(s), whether in one transaction or in a series of transactions over
any period of time; (ii) merge into, with or consolidate with any other person
unless this Debenture is assumed by the surviving entity; or (iii) adopt any
plan or arrangement for the dissolution or liquidation of the
Borrower;

    

    (c) Give
written notice to Lender upon the occurrence of a Event of Default (as defined
below) within five (5) Business Days of such event;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (d) Not use
the proceeds from the issuance of this Debenture in any way for any purpose that
entails a violation of, or is inconsistent with, Regulation U of the Board of
Governors of the Federal Reserve System of the United States of
America;

    

    (e) Comply in
all material respects with all applicable laws (whether federal, state or local
and whether statutory, administrative or judicial or other) and with every
applicable lawful governmental order (whether administrative or
judicial);

    

    (f) Not
redeem or repurchase any of its capital stock;

    

    (g) Not: make
any advance or loan to any person, firm or corporation, except for reasonable
travel or business expenses advanced to the Company’s employees or independent
contractors in the ordinary course of business;

    

    (h) Cause its
transfer agent to issue shares of common stock upon written notice of Lender’s
request to receive repayment of this Debenture in shares of common stock
pursuant to the terms herein within five (5) business days of notification; or
(b) at the request of the Lender, cause the removal of any restrictive legend on
any certificate or cause its transfer agent to remove such legend where such
removal is lawful within five (5) business days;

    

    (i) Not take
any action which would impair the rights and privileges of this Debenture set
forth herein or the rights and privileges of the holder of this Debenture;
and

    

    (j) Timely
file all reports required to be filed under the Securities Exchange Act of
1934.

    

    7.   Event of
Default.  Upon the occurrence of one of the following Events of
Default, (i) the amount due under this Debenture will be immediately due and
payable at the rate of 110% of the sum of such principal amount outstanding
immediately before such Event of Default, and  all interest, fees,
costs and penalties  then due and, if unsatisfied such amount will
accrue interest at a rate of twelve percent (12%) per annum until fully paid or
exercised; and (ii) the Lender may, at its sole and exclusive option, accelerate
the maturity of this Debenture and demand immediate payment in full, whereupon
the outstanding principal amount of the Debenture and all obligations of
Borrower to Lender hereunder, together with accrued interest thereon and accrued
charges and costs, if any, shall become immediately due and payable without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived, provided, however, that this remedy shall not preclude
the Lender from exchanging this Debenture for shares of Common Stock pursuant to
Section 3 hereof; and (iii) exercise all legally available rights and
privileges.

    

    If an
Event of Default occurs, then such Event of Default shall constitute a
continuing default which will permit the Lender to exercise its rights under
this Section at any time.

    

    An “Event
of Default” shall be when any of the following occur:

    

    (a)   The
Company shall default in the payment of principal or interest on this Debenture
or any other amount due hereunder; or

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (b) Any
material default, material misrepresentation, or material breach of a covenant,
representation or warranty or other agreement under the Transaction Documents;
or

    

    (c) Any
transfer, conveyance, or assignment of substantial Company assets or substantial
assets of any of its subsidiaries, in each case not in the ordinary course of
business, except for a merger in which the Company is the surviving Corporation
or in which the surviving corporation assumes the Company’s obligations under
the Transaction Documents; or

    

    (d) Any money
judgment, writ or warrant of attachment, or similar process against Company or
any of its properties or other assets, or defaults on obligations, in amount in
excess of $100,000 unless such are being contested by the Company;
or

    

    (e) The
Company (i) fails to cause its transfer agent to issue shares of common
stock upon written notice of Lender’s request to receive repayment of this
Debenture in shares of common stock pursuant to the terms herein within five (5)
business days of receipt of a Request for Repayment; (ii) upon written request
of the Lender, fails to remove any restrictive legend on any certificate or
fails to cause its transfer agent to remove such legend where such removal is
lawful within five (5) business days of receipt of a written demand therefore or
(b) the value of the Collateral Shares under the Pledge Agreement  shall
fall below the Required Level; or

    

    (f) The
average dollar volume of Common Stock for any consecutive ten (10) trading-day
period is less than Forty Thousand Dollars ($40,000) per day (the “Volume Default”). For
purposes of measuring compliance with this covenant, the dollar volume  for
each trading day shall be deemed to be equal to the average of the VWAP of
Common Stock times the volume, each as reported by Bloomberg, L.P.;
or

    

    (g) Any
governmental agency or any court of competent jurisdiction at the instance of
any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or

    

    (h) The entry
of a decree or order by a court having jurisdiction adjudging the Company a
bankrupt or insolvent, or approving a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company, under
federal bankruptcy law, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law; or the
commencement against the Company of a proceeding under the federal bankruptcy
law or any applicable federal or state bankruptcy, insolvency or similar law and
the continuance of any such proceedings unstayed and in effect for a period of
90 days or more; or the commencement by the Company of a voluntary case under
federal bankruptcy law, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency, or other similar law, or the consent by
it to the institution of bankruptcy or insolvency proceedings against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief
under federal bankruptcy law or any other applicable federal or state law, or
the consent by it to the filing of such petition or to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator or similar official of the
Company or of any substantial part of its property, or the making by it of an
assignment for the benefit of creditors, or the admission by it in writing of
its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company in furtherance of any such action;
or

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (i) Failure
of Company to continuously maintain its status as a reporting company under the
federal securities laws or as a DWAC Eligible issuer; or

    

    (j) Failure
to timely file all reports required to be filed by it with the SEC pursuant to
Section 12, 13 or 15(d) of the Securities Exchange Act of 1934, or otherwise
required by the Securities Exchange Act of 1934 (the Company can cure any late
filing by filing a timely notice of late filing and filing such periodic report,
provided, however, that any such late filing shall not prevent the Lender from
listing or selling its shares under Rule 144); or

    

    8.   Lender’s
Rights Upon Default.  Upon the occurrence of any Event of
Default pursuant to this Debenture, the Lender may, at its sole and exclusive
option, do any or all of the following, either concurrently or separately: (a)
accelerate the maturity of this Debenture and demand immediate payment in full,
whereupon the outstanding principal amount of the Debenture and all obligations
of Borrower to Lender hereunder, together with accrued interest thereon and
accrued charges and costs, including costs incurred by the Company with respect
to the collection of this Purchase Note (including reasonable legal fees), if
any, shall become immediately due and payable without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived;
(b) offset, recoup or exercise any other legal remedy to offset any liabilities
due by the Lender, including but not limited to any offset of this Debenture
against the Investor Notes being delivered by the Lender to the Borrower at
Closing, as provided under Section 3 of the Investor Notes issued by the Lender
to the Company on the date hereof; and (c) exercise all legally available rights
and privileges.  If an Event of Default occurs hereunder, the Borrower
will be responsible for all costs incurred by the Lender in collection of this
Debenture, including reasonable legal fees, which costs will constitute part of
the obligations of the Borrower hereunder.

    

    9.   Default
Interest Rate.   Upon an Event of Default, without any
further action on the part of Lender, interest will thereafter accrue at the
rate of twelve percent (12%) per annum (the “Default Rate”), until
all outstanding principal, interest and fees are repaid in full by
Borrower.

    

    10.   Usury.  In
no event shall the amount of interest paid or agreed to be paid hereunder exceed
the highest lawful rate permissible under applicable law.  Any excess
amount of deemed interest shall be null and void and shall not interfere with or
affect the Borrower’s obligation to repay the principal of and interest on the
Debenture.  This confirms that the Borrower and, by its acceptance of
this Debenture, the Lender intend to contract in strict compliance with
applicable usury laws from time to time in effect.  Accordingly, the
Borrower and the Lender stipulate and agree that none of the terms and
provisions contained herein shall ever be construed to create a contract to pay,
for the use or forbearance of money, interest in excess of the maximum amount of
interest permitted to be charged by applicable law from time to time in
effect.

    

    11.   Costs of
Enforcement. Borrower hereby covenants and agrees to indemnify, defend
and hold Lender harmless from and against all costs and expenses, including
reasonable attorneys’ fees and their costs, together with interest thereon at
the Prime Rate, incurred by Lender in enforcing its rights under this Debenture;
or if Lender is made a party as a defendant in any action or proceeding arising
out of or in connection with its status as a lender, or if Lender is requested
to respond to any subpoena or other legal process issued in connection with this
Debenture; or reasonable disbursements arising out of any costs and expenses,
including reasonable attorneys’ fees and their costs incurred in any bankruptcy
case; or for any legal or appraisal reviews, advice or counsel performed for
Lender following a request by Borrower for waiver, modification or amendment of
this Debenture or any of the other Transaction Documents.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    12.   Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial.  This
Debenture shall be governed by, and construed in accordance with, the internal
laws of the State of Illinois, without reference to the choice of law provisions
thereof.  The Borrower and, by accepting this Debenture, the Lender,
each irrevocably submits to the exclusive jurisdiction of the courts of the
State of Illinois located in Cook County and any United States District Court
for the Northern District of Illinois for the purpose of any suit, action,
proceeding or judgment relating to or arising out of this Debenture and the
transactions contemplated hereby.  Service of process in connection
with any such suit, action or proceeding may be served on each party hereto
anywhere in the world by the same methods as are specified for the giving of
notices under this Debenture.  The Company and, by accepting this
Debenture, the Lender, each irrevocably consents to the jurisdiction of any such
court in any such suit, action or proceeding and to the laying of venue in such
court.  The Borrower and, by accepting this Debenture, the Lender,
each irrevocably waives any objection to the laying of venue of any such suit,
action or proceeding brought in such courts and irrevocably waives any claim
that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. EACH OF THE BORROWER AND, BY ITS
ACCEPTANCE HEREOF, THE LENDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY
IN ANY LITIGATION WITH RESPECT TO THIS DEBENTURE AND REPRESENTS THAT COUNSEL HAS
BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

    

    13.   Miscellaneous.

    

    (a)
Borrower hereby waives protest, notice of protest, presentment, dishonor, and
demand.

    

    (b) The
rights and privileges of Lender under this Debenture shall inure to the benefit
of its successors and assigns.  All obligations of Borrower in
connection with this Debenture shall bind Borrower’s successors and assigns, and
Lender’s repayment rights shall succeed to any successor securities to
Borrower’s common stock.

    

    (c) If
any provision of this Debenture shall for any reason be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, but this Debenture shall be construed as if such invalid or
unenforceable provision had never been contained herein.

    

    (d) The
waiver of any Event of Default or the failure of Lender to exercise any right or
remedy to which it may be entitled shall not be deemed a waiver of any
subsequent Event of Default or Lender’s right to exercise that or any other
right or remedy to which Lender is entitled.   No delay or
omission by Lender in exercising, or failure by Lender to exercise on any one or
more occasions, shall be construed as a waiver or novation of this Debenture or
prevent the subsequent exercise of any or all such rights.

    

    (e) This
Debenture may not be waived, changed, modified, or discharged orally, but only
in writing.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    14.   Notice,
Etc.  Any notice required by the provisions of this Debenture
will be in writing and will be deemed effectively given:  (a) upon
personal delivery to the party to be notified; (b) when sent by confirmed telex
or facsimile if sent during normal business hours of the recipient; if not, then
on the next business day; (c) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid; or (d) one (1) day
after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt, and delivered as
follows:

    

    If to the
Borrower:

     

    With a
copy to (which shall not constitute notice):

     

    If to
Lender:

     

    With a
copy to (which shall not constitute notice):

     

    or, as to
each party, at such other address as shall be designated by such party in a
written notice to the other parties.

    

    15.   Definitions.  As
used herein, the following terms shall have the meaning ascribed to them
below:

    

    (a)  “Solvent”
shall mean, with respect to any person or entity on a particular date, that on
such date: (i) the fair value of the property of such person or entity is not
less than the total amount of the liabilities of such person or entity; (ii) the
present fair salable value of the assets of such person or entity is not less
than the amount required to pay the probable liability on such person’s existing
debts as they become absolute and matured; and (iii) such person is able to
realize upon its assets an amount sufficient to and pay its debts and other
liabilities;

    

    (b)
“Securities Purchase Agreement” shall mean the Securities Purchase Agreement
dated the date hereof among the Borrower, the Lender and the other purchasers
identified therein.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              [SIGNATURE
      PAGE TO SELLER DEBENTURE]

            

    

    

     

    IN WITNESS WHEREOF, the
undersigned has executed this Debenture as of the date first set forth
above.

    

    
      
        	
                 

              	
                By:
      _________________________

              	 
	 	Name 	 
	 	Its:	 

      

    

     

    
      	
              STATE
      OF
      _______________                        )

              )  ss:

              COUNTY
      OF
      _______________                     )

            

    

     

    On this
_____ day of February, 2010, before me, personally came _____________, to me
known, who being by me duly sworn, did depose and say that he resides in
____________________________________, that he is the President and Chief
Executive Officer of                            
    the corporation described in and which executed
the above instrument; and that he signed his name by authority of the board of
directors of said corporation.

    

    

    

    _______________________________

    Notary
Public

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

    

    REQUEST
FOR REPAYMENT IN COMMON SHARES

     

     

    
      	Date:_______________________
      

              

              VIA
      FAX:  __________________

              Attn:  ______________________

            	 

    

     

    CONVERSION
NOTICE

    

    The above-captioned Holder hereby
gives notice to ____________, a _______ corporation (the “Company”), pursuant
to that certain Debenture made by the Company in favor of the Holder on
________, 2010 (the “Note”), that the
Holder elects to convert the portion of the Note balance set forth below into
fully paid and non-assessable shares of Common Stock, $0.001 par value, of the
Company as of the Conversion Date specified above.  Said conversion
shall be based on the Conversion Price set forth below.

    

    
      	
              A.  

            	
              Date
      of
      conversion:                                           ____________

            

    

    
      	
              B.  

            	
              Conversion
      #:                                  ____________

            

    

    
      	
              C.  

            	
              Conversion
      Amount:                                             ____________

            

    

    
      	
              D.  

            	
              (i)
      If the Market Price is $0.05 or above:  the average VWAP for the
      3 trading days chosen by the Holder from the last 20 trading days:
      ____________

            

    

    or

    (ii) If
the Market Price is below $0.05: 80% of the average VWAP for the 3 trading days
chosen by the Holder from the last 20 trading days: ____________

    
      	
              E.  

            	
              Conversion
      Shares:  _______________ (C divided by
  D)

            

    

    
      	
              F.  

            	
              Remaining
      Note
Balance:  ____________

            

    

    

    Please
transfer the Conversion Shares electronically (DTC or DWAC) to the following
account:

     

    
      	Broker:________________________                                                                 
      

              DTC#:_________________________                        

              Account
      #:______________________                                               

              Account
      Name:___________________                                                                    

              

              Sincerely,

              

              
By:_________________________________ 

                             

            	Address:	
              _______________________________

              _______________________________

              _______________________________

               

            

    

     

    
      
         

      

      
        12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]