Document:

Exhibit 10.93

 

 

 

 

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DRAFT CONFIDENTIAL TERM SHEET

not to be reproduced or distributed

 

6% Convertible Debenture

 

 

	Date:	September 25, 2012
	 	 
	Offeror:	Viral Genetics, Inc., a Delaware corporation
	 	 
	Offering:	not to exceed $250,000
	 	 
	Eligibility:	Accredited Investors or Non-US Persons only.
	 	 
	Funding Release:	on Closing
	 	 
	Closing:	On execution of Subscription Agreement (attached) and receipt of funds.
	 	 
	Maturity:	one year from Closing
	 	 
	Securities:	6% Convertible Debenture
	 	 
	Interest Rate:	Six percent (6%)
	 	 
	Conversion:	Principal and interest exchangeable into Shares at Conversion Price.
	 	 
	Shares:	1 share of common stock of Offeror ("Shares"), par value $0.001
	 	 
	Conversion Price:	seventy percent (70%) of the volume-weighted average closing price of the Shares of Offeror as reported by OTC Markets for the twenty (20) trading days starting from the trading day immediately after the record date of the Offeror's pending reverse stock split, expected on or around November 15, 2012
	 	 
	
        Prepayment:

         
	Offeror may
    prepay unpaid principal and interest on the Convertible Debenture with twenty (20) days' notice, during which period Holder
    may convert all or part of the Convertible Debenture
	 	 
	Reverse Stock Split:	
        Offer will complete a reverse stock split at
        a ratio to be determined within 45 business days of Closing.

 

 

2290 Huntington
Drive, Suite 100, San Marino, CA, 91108, Tel: (626) 334-5310 Fax: (626) 334-5324 www.viraloenetics.com

 

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THE COMMON STOCK OF VIRAL GENETICS,
INC., DESCRIBED IN THIS TERM SHEET INCLUDING THAT ACQUIRABLE THROUGH EXERCISE OF WARRANTS (this "Term Sheet") HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("Act"), OR QUALIFIED UNDER THE STATE SECURITIES LAWS OF
ANY STATE. THE SECURITIES WILL BE SOLD IN RELIANCE ON EXEMPTIONS FROM SUCH REGISTRATION AND QUALIFICATION REQUIREMENTS. THE SECURITIES
DESCRIBED IN THIS TERM SHEET CANNOT BE SOLD, TRANSFERRED, ASSIGNED, OR OTHERWISE DISPOSED OF, EXCEPT IN COMPLIANCE WITH APPLICABLE
FEDERAL AND STATE SECURITIES LAWS, INCLUDING REGULATION S PROMULGATED UNDER THE ACT.

 

ALL OFFERS AND SALE OF SAID
SECURITIES BY NON-U.S. PERSONS PRIOR TO THE EXPIRATION OF A PERIOD COMMENCING ON THE DATE OF THE CLOSING OF THIS OFFERING AND ENDING
ONE-YEAR THEREAFTER SHALL ONLY BE MADE IN COMPLIANCE WITH THE SAFE HARBOR CONTAINED IN REGULATION S, PURSUANT TO THE REGISTRATION
PROVISIONS UNDER THE SECURITIES ACT OF 1933, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION, AND ALL OFFERS AND SALES AFTER THE
EXPIRATION OF THE ONE-YEAR PERIOD SHALL BE MADE ONLY PURSUANT TO REGISTRATION OR AN EXEMPTION FROM REGISTRATION.

************************************************************************

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SUBSCRIPTION AGREEMENT

 

 

VIRAL GENETICS,
INC.

2290 Huntington Drive, Suite 100

San Marino, CA 91108

 

THE COMMON STOCK
OF VIRAL GENETICS, INC., INCLUDING THAT ACQUIRABLE UPON EXCHANGE OF THE CONVERTIBLE DEBENTURE, DESCRIBED IN THIS SUBSCRIPTION AGREEMENT
(this "Agreement") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("Act"), OR QUALIFIED
UNDER THE STATE SECURITIES LAWS OF ANY STATE. THE SECURITIES ARE BEING SOLD IN RELIANCE ON EXEMPTIONS FROM SUCH REGISTRATION AND
QUALIFICATION REQUIREMENTS. THE SECURITIES AND RIGHTS PURSUANT TO THIS AGREEMENT CANNOT BE SOLD, TRANSFERRED, ASSIGNED, OR OTHERWISE
DISPOSED OF, EXCEPT IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS, INCLUDING REGULATION S PROMULGATED UNDER THE
ACT.

 

ALL OFFERS AND
SALE OF SAID SECURITIES BY NON-U.S. PERSONS PRIOR TO THE EXPIRATION OF A PERIOD COMMENCING ON THE DATE OF THE CLOSING OF THIS OFFERING
AND ENDING ONE-YEAR THEREAFTER SHALL ONLY BE MADE IN COMPLIANCE WITH THE SAFE HARBOR CONTAINED IN REGULATION S, PURSUANT TO THE
REGISTRATION PROVISIONS UNDER THE SECURITIES ACT OF 1933, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION, AND ALL OFFERS AND SALES
AFTER THE EXPIRATION OF THE ONE-YEAR PERIOD SHALL BE MADE ONLY PURSUANT TO REGISTRATION OR AN EXEMPTION FROM REGISTRATION.

 

This
Agreement shall constitute the irrevocable offer of the undersigned to purchase, in the amounts and subject to the terms set forth
in this Agreement, one Convertible Debenture of Viral Genetics, Inc., a Delaware corporation (the "Company") ("Debenture"),
with the face value of $50,000.00 in the form attached hereto as Exhibit A, for the purchase
price of $50,000.00. On execution by both parties,
this Agreement shall become a bilateral agreement binding on both the undersigned and the Company. Each part of this Agreement
must be completed by the undersigned and, by execution below, the undersigned acknowledges that it understands that the Company
is relying on the accuracy and completeness hereof in complying with its obligations under applicable securities laws.

 

On the foregoing,
it is hereby agreed as follows:

 

1.              SUBSCRIPTION.
The undersigned hereby irrevocably subscribes for the purchase of the Debenture. The undersigned is tendering to the Company:

 

(a)               one signed copy of this Agreement; and

 

(b)               payment
in the amount of $50,000.00 (the "Purchase Price").

 

2.              GENERAL
REPRESENTATIONS OF SUBSCRIBER. The undersigned hereby represents and warrants as follows:

 

(a)               The
undersigned is over the age of 18 years;

 

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(b)               The
undersigned acknowledges that neither the United States Securities and Exchange Commission nor the securities commission of
any state or other federal agency has made any determination as to the merits of purchasing these securities;

 

(c)               The
undersigned has received and read all of the Company's filings made on the OTCIQ News and Disclosure system and available at www.pinksheets.com
including the "Quarterly Report" and "Consolidated Financial Statements" for the six months ended June
30, 2012; the "Annual Report" and -Consolidated Financial Statements" for the fiscal year ended
December 31, 2011; the "Initial Company Information and Disclosure Statements" for the nine months and three months
ending September 30, 2009 and March 31, 2009, respectively; the "Articles of Incorporation - Amendment" filed May
15, 2009; and the "Supplemental Information - Current Reporting Obligations Filing - Merger" filed April 24, 2009;
as well as all prior filings made on the SEC EDGAR system including, without limitation, the Form 10-KSB, as amended, for the
fiscal year ended December 31, 2006, the Quarterly Report on Form 10-QSB for the quarter ended September 30, 2007, all
Current Reports on Form 8-K, all other filings and disclosures made on the OTCIQ News and Disclosure system and available at www.pinksheets.com,
all press releases, and other information; and the undersigned understands the risk of an investment in the Company,
acknowledging that an investment in the Company inherently involves high risks.

 

(d)               The
undersigned, either alone or with the assistance of one or more advisers engaged by it, has such knowledge and experience in
business and financial matters that it or they is capable of evaluating the Company, its business operations, and the risks
and merits of an investment in the Company;

 

(e)               The
undersigned has been provided with all materials and information requested by the undersigned or its representatives,
including any information requested to verify any information furnished, and the undersigned has been provided the
opportunity for direct communication between the Company and its representatives and the undersigned and its representatives
regarding the purchase made hereby, including the opportunity to ask questions of and receive answers from the Company
including with regards to any of the information described in 2 (c) above;

 

(f)               All
information which the undersigned has provided to the Company or its agents or representatives concerning the undersigned's
suitability to invest in the Company is complete, accurate, and correct as of the date of the undersigned's signature on this
Agreement. Such information includes, but is not limited to, information concerning the undersigned's personal financial
affairs, business position, and the knowledge and experience of the undersigned and the undersigned's advisers;

 

(g)               The
undersigned has no present intention of dividing any of the securities or the rights under this Agreement with others or of
reselling or otherwise disposing of any portion of the securities, either currently or after the passage of a fixed or
determinable period of time or on the occurrence or nonoccurrence of any predetermined event or circumstance;

 

(h)               The
undersigned was at no time solicited by any leaflet, public promotional meeting, circular, newspaper or magazine article,
radio or television advertisement, or any other form of general advertising or solicitation in connection with the offer,
sale, or purchase of the securities through this Agreement; and

 

(i)               The
undersigned has adequate means of providing for its current needs and possible contingencies and has no need now and
anticipates no need in the foreseeable future, to sell any portion of the securities for which the undersigned hereby
subscribes. The undersigned is able to bear the economic risks of this investment and, consequently, without limiting the
generality of the foregoing, is able to hold the securities for an indefinite period of time, and has a sufficient net worth
to sustain a loss of the entire investment, in the event such loss should occur.

 

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(j)               The
undersigned is an Accredited Investor, and has completed the following Accredited Investor Qualifying Questionnaire:

 

PERSONAL
FINANCIAL INFORMATION. The following information pertaining to the undersigned as a natural person and U.S. Persons
within the meaning of Regulation S is being provided here in lieu of furnishing a personal financial statement.

 

(a)               My
individual net worth, or joint net worth with my spouse, excluding any primary residence, exceeds $1,000,000.

Yes [X]     No
[  ]

DWO

INITIAL

 

(b)               My
individual income in 2010 and 2011 exceeded $200,000 in each such year, and I reasonably expect my individual income will be
in excess of $200,000 in 2012.

Yes [X]     No
[  ]

DWO

INITIAL

 

(c)               The
joint income of my spouse and I in 2010 and 2011 exceeded $300,000 in each such year, and I reasonably expect our joint
income will be in excess of $300,000 in 2012.

Yes [X]     No [  ]

DWO

INITIAL

 

(d)               Considering
the foregoing and all other relevant factors in my financial and personal circumstances, I am able to bear the economic risk
of an investment in the Company.

Yes [X]     No [  ]

DWO

INITIAL

 

3.              REPRESENTATIONS
REGARDING EXEMPTIONS AND RESTRICTIONS ON TRANSFER. The undersigned represents that the securities are being acquired without
a view to, or for, resale in connection with any distribution of the securities or any interest therein without registration or
other compliance under the Act, and that the undersigned has no direct or indirect participation in any such undertaking or in
the underwriting of such an undertaking. The undersigned understands that the securities have not been registered, but are being
acquired by reason of a specific exemption under the Act as well as under certain state statutes for transactions by an issuer
not involving any public offering and that any disposition of the securities may, under certain circumstances, be inconsistent
with this exemption and may make the undersigned an "underwriter" within the meaning of the Act. The undersigned acknowledges
that the securities must be held and may not be sold, transferred, or otherwise disposed of for value unless they are subsequently
registered under the Act or an exemption from such registration is available. The Company is under no obligation to register the
securities under the Act or under Section 12 of the Securities Exchange Act of 1934, as amended. The certificates representing
the securities will bear a legend restricting transfer, except in compliance with applicable federal and state securities statutes.

 

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4.              GENERAL.
The undersigned further understands, acknowledges, and agrees that:

 

(a)               This Agreement is registered in the name of the undersigned on the books of the Company at its principal offices, and no
transfer hereof shall be valid and binding on the Company unless made at such offices by the registered holder or his attorney-in-fact
duly authorized in writing. The Company may deem and treat the person in whose name this Agreement is registered as the absolute
owner hereof for the purpose of receiving any securities issuable pursuant hereto and for all other purposes.

 

(b)               This Agreement shall be construed in accordance with and governed by the laws of the state of California.

 

(c)               This
Agreement constitutes the entire agreement between the parties respecting the subject matter hereof.

 

(d)                made
herein under federal Notwithstanding any of the representations, warranties, acknowledgments, or
agreements by the undersigned, the undersigned does not waive any rights granted to the undersigned and state securities laws.

 

(e)               The
undersigned will hold title to the securities as follows:

 

______
Community Property

 

______
Joint Tenants, with Right of Survivorship

 

______
Tenants in Common

 

______
Separate Property

 

___X__
Other   Limited Liability Company (DW ODELL COMPANY, LLC)

                   (Single
Person, Trust, Etc., Please Indicate)

 

 

 

 

 

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EXHIBIT A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THIS DEBENTURE DOES NOT REQUIRE PHYSICAL SURRENDER HEREOF IN ORDER TO EFFECT
A PARTIAL PAYMENT, REDEMPTION OR CONVERSION HEREOF. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS DEBENTURE MAY BE LESS
THAN THE PRINCIPAL AMOUNT SHOWN BELOW.

 

VIRAL GENETICS, INC.

 

6% UNSECURED
CONVERTIBLE DEBENTURE

 

	San Marino, California	$50000.00
	Issue Date: September 26, 2012	 

 

FOR
VALUE RECEIVED, VIRAL GENETICS, INC., a Delaware corporation (the "Company"),
hereby promises to pay to the order of DW Odell Co., LLC, or their permitted successors or assigns (the "Holder")
the sum of fifty-three thousand dollars ($53,000) in same day funds, on or before the one-year anniversary
of the date of issue affixed above (the "Maturity Date"). The Company's obligations under the Debenture,
including without limitation its obligation to make payments of principal thereof and interest thereon, are unsecured.

 

The following terms
shall apply to this Debenture:

 

1.              DEFINITIONS.

 

"Conversion Price" means seventy percent (70%) of the volume-weighted average
closing price of the Shares of Offeror as reported by OTC Markets for the twenty (20) trading days starting from the trading day
immediately after the record date of the Offeror's pending reverse stock split, expected
on or around November 15, 2012.

 

"Default Interest Rate"
means twelve percent (12%).

 

"Issue Date" means
the date on which this Debenture is issued.

 

"Maturity Date" has
the meaning set forth in the preamble to this Agreement.

 

"Person"
means any individual, corporation, trust, association, company, partnership, joint venture, limited liability company,
joint stock company, governmental authority or other entity.

 

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All definitions contained in this Debenture are equally applicable to
the singular and plural forms of the terms defined. The words "hereof', "herein" and "hereunder" and
words of similar import referring to this Debenture refer to this Debenture as a whole and not to any particular provision of
this Debenture.

 

2.              PAYMENT.

 

(a)              Principal
Payment. The Company shall pay to the Holder, in cash on or before the Maturity Date, the original unpaid principal
amount of this Debenture (plus unpaid accrued interest thereon); provided, that if the Maturity Date is not a business
day, such payment shall be made on the next succeeding business day. The Principal Payment that is due in cash and which is
not paid on the Maturity Date shall bear interest until paid at the Default Interest Rate.

 

(b)              Interest.
This Debenture shall bear interest at the simple annual rate of six percent (6%), unless in Default, all due at the Maturity
Date.

 

(c)              Prepayment.
The Company may prepay the unpaid principal of this Debenture in whole or in part at any time by delivery in
immediately-available cash following 20 business days advance notice in writing, during which time Holder may elect to effect
a Conversion of all or any part of unpaid principal and interest, as described herein.

 

3.              CONVERSION.

 

(a)              Conversion.
Subject to the conditions and limitations specifically provided herein, Holder may elect to exchange all or any part of unpaid
principal and interest into Shares (a "Conversion").

 

(b)              Conversion
Notice. In order to effect a conversion of principal and accrued interest of this Debenture, the Holder shall send to
Company by facsimile transmission or email, at any time prior to 5:00 p.m., Pacific Time, on the business day on which the
Company wishes to effect such Conversion (the "Conversion Date"), a properly completed notice of
conversion, in the form set forth on Annex I hereto, stating the amount of principal (and, if the Holder so elects,
Interest) to be converted and a calculation of the number of Shares issuable upon such Conversion (a "Conversion
Notice"). The Holder may specify the name or names (if not the Holder) in which the Shares that are issuable on
such Conversion shall be issued by notifying Company. The Holder shall not be required to physically surrender this Debenture
to the Company in order to effect a Conversion, unless such Conversion would represent payment in full of the Debenture. The
Company shall maintain a record showing, at any given time, the unpaid principal amount of this Debenture and the date of
each Conversion or other payment of principal hereof.

 

(c)              Number
of Shares; Conversion Price. The number of Shares to be delivered by the Company pursuant to a Conversion shall be equal
to the principal amount of (and, if the Holder so elects, Interest accrued on) this Debenture being converted divided
by the Conversion Price.

 

(d)              Delivery
of Common Stock Upon Conversion. Upon delivery of a Conversion Notice, the Company shall, no later than the close of
business on the fifth (5th) business day following the Conversion Date set forth in such Conversion Notice (the "Delivery
Date"), issue and deliver or cause to be delivered to the Holder the number of shares of common stock ("Shares") determined
pursuant to paragraph 3(c) above. The Company shall effect delivery of the Shares to the Holder no later than the close of
business on such Delivery Date by delivering to the Holder or its nominee physical certificates representing such shares. If
any Conversion would create a fractional share, such fractional share shall be disregarded and the number of shares issuable
upon such Conversion, in the aggregate, shall be the nearest whole number.

 

4.              MISCELLANEOUS.

 

(a)              Failure to Exercise Rights not Waiver. No failure or delay on the part of the Holder in the exercise of any power,
right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right
or privilege preclude any other or further exercise thereof. All rights and remedies of the Holder hereunder are cumulative and
not exclusive of any rights or remedies otherwise available.

 

(b)              Notices. Any notice, demand or request required or permitted to be given by the Company or the Holder pursuant to
the terms of this Debenture shall be in writing and shall be deemed delivered (i) when delivered personally or by verifiable facsimile
transmission, unless such delivery is made on a day that is not a business day, in which case such delivery will be deemed to be
made on the next succeeding business day and (ii) on the next business day after timely delivery to an overnight courier, addressed
as follows:

 

If to the Company:

 

Viral Genetics, Inc.

2210 Huntington Drive, Suite 100

San Marino, CA 91108

Attn: Haig Keledjian, Chief Executive Officer

Tel: 626-334-5310

Fax: 626-334-5324

Email: haig@viralgenetics.com

 

If to the Holder:

 

DW Odell Company,
LLC

2927 De La Vina Street

Santa Barbara, CA
93105

Tel: 805-679-7560

Fax: 805-679-6760

 

(c)              Amendments. No amendment, modification or other change to, or waiver of any provision of, this Debenture may be made
unless such amendment, modification or change is set forth in writing and is signed by the Company and the Holder.

 

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(d)              Transfer of Debenture. The Holder may sell, transfer or otherwise dispose of all or any part of this Debenture (including
without limitation pursuant to a pledge) to any person or entity as long as such sale, transfer or disposition is the subject
of an effective registration statement under the Securities Act and applicable state securities laws, or is exempt from registration
thereunder. From and after the date of any such sale, transfer or disposition, the transferee hereof shall be deemed to be the
holder of a Debenture in the principal amount acquired by such transferee, and the Company shall, as promptly as practicable,
issue and deliver to such transferee a new Debenture identical in all respects to this Debenture, in the name of such transferee.
The Company shall be entitled to treat the original Holder as the holder of this entire Debenture unless and until it receives
written notice of the sale, transfer or disposition hereof.

 

(e)              Lost
or Stolen Debenture. Upon receipt by the Company of evidence of the loss, theft, destruction or mutilation of this Debenture,
and (in the case of loss, theft or destruction) of indemnity or security reasonably satisfactory to the Company, and upon surrender
and cancellation of the Debenture, if mutilated, the Company shall execute and deliver to the Holder a new Debenture identical
in all respects to this Debenture.

 

(f)              Governing
Law. This Debenture shall be governed by and construed in accordance with the laws of the State of California applicable to
contracts made and to be performed entirely within the State of California.

 

(g)              Successors
and Assigns. The terms and conditions of this Debenture shall inure to the benefit of and be binding upon the respective
successors (whether by merger or otherwise) and permitted assigns of the Company and the Holder. The Company may not assign
its rights or obligations under this Debenture except as specifically required or permitted pursuant to the terms hereof.

 

(h)              Usury.
This Debenture is subject to the express condition that at no time shall the Company be obligated or required to pay interest
hereunder at a rate which could subject the Holder to either civil or criminal liability as a result of being in excess of
the maximum interest rate which the Company is permitted by applicable law to contract or agree to pay. If by the terms of
this Debenture, the Company is at any time required or obligated to pay interest hereunder at a rate in excess of such
maximum rate, the rate of interest under this Debenture shall be deemed to be immediately reduced to such maximum rate and
the interest payable shall be computed at such maximum rate and all prior interest payments in excess of such maximum rate
shall be applied and shall be deemed to have been payments in reduction of the principal balance of this Debenture.

 

IN WITNESS
WHEREOF, the Parties have caused this Debenture to be signed in their name by a duly authorized officer on the date first above
written.

 

VIRAL GENETICS, INC.

 

 

By: /s/ Haig Keledjian

       Name: Haig
Keledjian

       Title: President

 

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ANNEX I

 

NOTICE OF
CONVERSION

 

The Holder hereby elects to require
conversion of principal of and/or interest accrued on the 6% Unsecured Convertible Debenture (the "Debenture") into shares
of common stock ("Shares") of the Company according to the terms and conditions of the Debenture. Capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in the Debenture.

 

 

Date of Conversion:______________________________

 

Principal Amount of

Debenture to be Converted:________________________

 

Amount
of Interest

to be Converted:_________________________________

 

Number of Shares of

Common Stock to be Issued:________________________

 

Name
of Holder:_________________________________

 

Address:_______________________________________

 

                 _______________________________________

 

                 _______________________________________

 

Signature:______________________________________

                   Name:

                   Title:

 

 

 

    	13Exhibit 10.94

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT").

 

RESTATED CONVERTIBLE DEBENTURE

 

	$54,000.00	 	As of September 30, 2012

 

For value received, Viral Genetics, Inc.,
a Delaware corporation (the "Company"), promises to pay to the order of DMBM Inc. (the "Holder"), the principal
sum of FIFTY FOUR THOUSAND DOLLARS AND NO CENTS or the aggregate outstanding principal amount hereof, whichever is less (the “Principal”),
represents various loans (each a “Loan”) made by the Holder to the Company between September 1, 2012 and September
30, 2012, on the dates and in the amounts specified on Schedule A attached hereto and to pay interest on the outstanding principal
amount of this Convertible Debenture (this "Debenture") as provided herein.

 

1.Definitions.
The following terms shall have the definitions set forth in this Section 1:

 

		(a)	"Business Day" means any day on which banks are open for business in both the State of
California and the State of New York.

 

		(b)	"Common Stock" means the Company's common stock, par value $0.0001 per Share.

 

		(c)	"Conversion Price" shall be $0.0005 per Share.

 

		(d)	"Shares" means shares of Common Stock.

 

		(e)	"Trading Day" means a calendar day on which the Shares are quoted for trading on the
Trading Market.

 

		(f)	"Trading Market" means the following markets or exchanges on which the Shares are listed
or quoted for trading on the date in question: The Over The Counter Bulletin Board, the PinkSheets, the Nasdaq SmallCap Market,
the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market, the Toronto Stock Exchange, the TSX Venture
Exchange, or any other securities exchange registered with the United States Securities and Exchange Commission.

 

2.Loans.
Each Loan made by the Holder to the Company evidenced by this Debenture, shall be set forth on Schedule A attached hereto. The
Holder is authorized by the Company to modify Schedule A from time to time to reflect the amount of any partial conversion of
this Debenture.

 

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3.Interest.
Interest on the outstanding Principal amount of this Debenture will accrue at a rate equal to one percent (1%) per annum from
the date of the making of each Loan as set forth on Schedule A. Interest will be computed on the basis of a year of 12 months,
each having 30 days, and will be paid on the Maturity Date and upon any permitted prepayment of this Debenture.

 

4.Repayment.
The Company shall pay the Principal amount of this Debenture, together with all accrued and unpaid interest, to the Holder on
August 30, 2013 (the "Maturity Date").

 

5.Payment.
All payments due under this Debenture shall be made in either the lawful money of the United States of America or in Shares,
as determined by the Company in its discretion in accordance with Section 5 hereof, without set-off, deduction, demand or
notice.

 

		(a)	Form of Payment. Five (5) business days prior to the Maturity Date, the Company, at its
sole discretion, shall notify the Holder whether the payment due on the Maturity Date shall be made in cash or in Shares.

 

		(b)	Payment in Cash. All payments in cash shall be made to the Holder by check or by wire transfer
to such bank as the Holder may advise the Company in writing.

 

		(c)	Payment in Shares. The number of Shares issuable upon a payment being made in Shares shall
be calculated by dividing the aggregate amount due on the Maturity Date by the Conversion Price. No fractional Shares will be issued
upon conversion of this Debenture or a payment by the Company in Shares. In lieu of any fractional Share to which the Holder would
otherwise be entitled upon a payment in Shares, the Company will pay to the Holder in cash the amount of the unpaid or unconverted
Principal and interest balance of this Debenture that would otherwise be paid or converted into such fractional Share. Shares issued
hereunder shall be transmitted by the transfer agent of the Company to the Holder either by crediting the account of the Holder's
designated broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission ("DWAC"), or, if
so elected by Holder, by physical delivery of certificates to Holder's address within five (5) Trading Days from the Due Date.
If the Company fails for any reason to deliver to the Holder the Shares by the requisite delivery date, the Company shall pay to
the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Shares not timely delivered, $5 per Trading
Day (increasing to $10 per Trading Day on the fifteenth (15) Trading Day after such liquidated damages begin to accrue) for each
Trading Day after such requisite delivery date until such Shares are delivered. In addition to any other rights available to the
Holder, if the Company fails to cause its transfer agent to deliver to the Holder the Shares on or before the requisite delivery
date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise), or
the Holder's brokerage firm otherwise purchases, Shares to deliver in satisfaction of a sale by the Holder of the Shares which
the Holder anticipated receiving pursuant to this Debenture (a "Buy-In"), then the Company shall (1) pay in cash to the
Holder the amount by which (x) the Holder's total

 

 

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purchase price (including brokerage
commissions, if any) for the Shares so purchased exceeds (y) the amount obtained by multiplying (A) the number of Shares that
the Company was required to deliver to the Holder multiplied by (B) the price at which the sell order giving rise to such purchase
obligation was executed, and (2) deliver to the Holder the number of Shares that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Shares having a total purchase
price of $11,000 to cover a Buy-In with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause
(1) of the immediately preceding sentence the Company shall be required to pay the Holder $ 1,000. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
commercially reasonable evidence of the amount of such loss.

 

(d) Adjustments. If the Company, at any time while this Debenture
is outstanding subdivides outstanding Shares into a larger number of shares or combines (including by way of reverse stock split)
outstanding Shares into a smaller number of shares, then the Conversion Price shall be multiplied by a fraction of which the numerator
shall be the number of Shares outstanding immediately before such event and of which the denominator shall be the number of Shares
outstanding immediately after such event.

 

6.Prepayment.
This Debenture may not be prepaid by the Company without the prior written consent of the Holder, except as provided in Section
7 of this Debenture .

 

7.Conversion.
At any time prior to five (5) business days prior to the Maturity Date, all or any portion of the Principal amount of this
Debenture, together will accrued interest thereon, may be converted at the option of the Holder, at any time and from time to
time, in the minimum principal amount of $5,000 and integral multiples of $1,000 thereafter, upon not less than two (2) three
(3) Business Days after the Company's receipt of the Conversion Notice (as hereinafter defined) from the Holder and payment
in full of the Conversion Price as then in effect. Each "Conversion Notice" shall mean a written notice from the
Holder informing the Company of the date of the conversion, the principal amount of this Debenture being converted, the
number of shares of Common Stock to be received upon conversion and confirming that the Conversion Price will be paid in
cash. The Conversion Price shall be paid by certified check or by wire transfer of immediately available funds to a bank
account designated by the Company in writing. Within three (3) Business Days after payment of the Conversion Price, the
Company will deliver a certificate for the shares of Common Stock issued upon conversion to the Holder, or at the
Holder’s request, to a brokerage account for the benefit of Holder. The Company shall at all times reserve for issuance
a number of shares of Common Stock sufficient to satisfy the conversion feature of this Debenture. The number of shares of
Common Stock issuable upon the conversion of all or a portion of this Debenture shall be equal to the Principal amount of
this Debenture being converted divided by the Conversion Price. For purposes hereof, any partial conversion of this
Debenture, each Loan shall be considered separate and distinct indebtedness of the Company to the Holder for purposes of
determining the holding period of each item of indebtedness represented by the Loan. Notwithstanding anything set forth
herein, in no event shall the Holder be entitled to convert this Debenture for a number of shares of Common Stock in excess
of that number of shares of Common Stock which, upon giving effect to such conversion, would cause the aggregate number of
shares of Common Stock beneficially owned by the Holder and its affiliates to exceed 9.99% of the outstanding shares of
the Common Stock following such conversion. Notwithstanding receipt of a Conversion Notice, the Company shall have the right
to prepay this Debenture in the amount being converted if the principal amount to be converted together with accrued interest
thereon is paid in immediately available funds within one (1) business day after the date of the

 

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8.Seniority.
The indebtedness represented by this Debenture is and shall be an obligation of the Company ranking senior in right of payment,
liquidation and otherwise to any future indebtedness and other obligations of the Company. The Company will not create any indebtedness
that is senior in priority to the indebtedness represented by this Debenture.

 

9.Default. Any one of the following occurrences
shall constitute an "Event of Default" under this Debenture:

 

(a)failure
of Company to pay any amount that it payable under this Debenture on the Due Date, provided that such failure is not cured
within a grace period of ten (10) calendar days; or

 

(b)failure
to comply with or perform any other agreement or covenant of the Company contained herein, which failure does not otherwise
constitute an Event of Default, provided that such failure has not been cured within thirty (30) calendar days written notice
by Holder to the Company; or

 

(c)there
shall occur any default or event of default, any similar event, any event that requires the prepayment of borrowed money or
permits the acceleration of the maturity thereof, or any event or condition that might become any of the foregoing with
notice or the passage of time or both, under the terms of any evidence of indebtedness or other agreement issued or assumed
or entered into by the Company, or under the terms of any document or instrument under which any such evidence of
indebtedness or other agreement is issued, assumed, secured, or guaranteed, and such event shall continue beyond any
applicable notice, grace or cure period, provided that such condition shall not have been cured within thirty (30)
calendar days of notice by Holder; or

 

(d)the
Company shall fail to maintain its existence in good standing in its state of incorporation; provided that such
condition shall not have been cured within thirty (30) calendar days of notice by Holder; or

 

(e)a
judgment or settlement shall be entered or agreed to in any proceeding which would reasonably be expected to have a material
and adverse effect on the ability of the Company to repay this Debenture; or any garnishment, summons, writ of attachment,
citation, levy or the like is issued against or served upon Holder for the attachment of any property of the Company in
Holder’s possession or control, provided that such condition shall not have been cured within thirty (30) calendar days
of notice by Holder of such condition; or

 

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(f)any
Share issued pursuant to this Debenture shall not be duly authorized, validly issued, fully paid or nonassessable, provided
that such condition shall not have been cured within ninety (90) calendar days of notice by Holder of such condition; or

 

(g)the
Company shake make a voluntary filing for bankruptcy under Title 11, Chapter 7 of the United States Code; or

 

(h)there
shall be appointed a receiver or trustee to take possession of the property or assets of the Company under Title 11, Chapter
7 of the United States Code.

 

10.Remedies.
Upon the occurrence and during the continuance of an Event of Default, this Debenture and shall become immediately due in full,
and unpaid amounts hereunder will accrue interest at the rate equal to the stated rate plus 5.00% per annum, and Holder may exercise
any rights and remedies under this Debenture, any Transaction Document or other document or instrument and at law or in equity.
The time of payment of this Debenture is also subject to acceleration if an Event of Default occurs. Notwithstanding the foregoing,
the entire unpaid Principal sum of this Debenture, together with accrued and unpaid interest thereon, shall become immediately
due and payable upon any of the Events of Default set forth in this Debenture.

 

11.Transfer;
Successors and Assigns. The terms and conditions of this Debenture shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. At the election of the Holder, but subject-to compliance with applicable securities laws,
this Debenture may be assigned or transferred by the Holder, in whole or in part, upon surrender of this Debenture, duly endorsed,
and accompanied by a duly executed written instrument of transfer in customary form, following which a new Debenture for the same
principal amount and interest will be issued to, and registered in the name of, the transferee. If less than the entire amount
of this Debenture is transferred or assigned, the Company will issue new Debentures to the transferee, in the amount transferred
or assigned, and to the Holder, in the remaining Principal amount hereof after the transfer or assignment. This Debenture shall
be binding upon and inure to the benefit of the Company and the Holder, their successors and permitted assigns and the transferees
of the Holder.

 

12.Governing
Law. This Debenture and all acts and transactions pursuant hereto and the rights and obligations of the Company and the Holder
shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect to any
of its principles of conflicts of law or choice of law principles which would result in the application of the laws of another
jurisdiction.

 

13.Notices.
Any notice required or permitted by this Debenture shall be in writing and shall be deemed sufficient upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile, or 96 hours after being deposited in the U.S. mail
as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party's
address or facsimile number as set forth herein or as subsequently modified by written notice.

 

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14.Amendments
and Waivers. This Debenture may only be amended, modified or waived by a written instrument executed by the Company and the
Holder. Any amendment or waiver effected in accordance with this Section 14 shall be binding upon the Company, the Holder and
each transferee or permitted assigns of any Debenture.

 

15.Loss of Debenture.
Upon receipt by the Company of a customary representation by the Holder of the loss, theft, destruction or mutilation of this
Debenture or any Debenture exchanged for it, and a customary indemnity undertaking by the Holder (in case of loss, theft or destruction)
or surrender and cancellation of such Debenture {in the case of mutilation), the Company will make and deliver in lieu of such
Debenture a new Debenture of like tenor.

 

16.Waiver of
Presentment, etc. The Company hereby expressly waives presentment, demand for payment, dishonor, notice of dishonor, protest,
notice of protest and any other formality upon the occurrence of an Event of Default.

 

17.Entire Understanding.
This Debenture sets forth the entire understanding agreement of the Company and the Holder with respect to the subject matter
hereof and it supersedes all prior and/or contemporaneous understandings and agreements with respect to such subject matter, all
of which are merged herein, and it specifically amends and restates a Debenture dated this date in the same principal amount hereof,
which did not accurately reflect the understanding and agreement of the Company and the Holder.

 

18.Costs and Fees. The
Company agrees to pay all costs, expenses, including, without limitation, reasonable attorneys' fees and disbursements, incurred
by the Holder in endeavoring to collect any amounts payable hereunder (including, without limitation, amounts payable in Shares)
which are not paid when due or otherwise in enforcing any provision of this Debenture and any of the rights and remedies of the
Holder under this Debenture, at law or in equity.

 

 

 

[signature page follows]

 

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IN
WITNESS WHEREOF, this Note has been executed by a duly authorized officer of the Company as of the date of this Note.

 

VIRAL GENETICS, INC.

 

By: /s/ Haig Keledjian                                 

Name: Haig Keledjian

Title: President

 

 

 

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Schedule A

	Date of Loan	Amount of Loan	 
	9/12/12	WIRE TRANSFER OUTGOING Viral Genetics Inc	$10,000.00
	9/14/12	WIRE TRANSFER OUTGOING Viral Genetics Inc	$14,000.00
	9/21/12	WIRE TRANSFER OUTGOING Viral Genetics Inc	$20,000.00
	9/24/12	WIRE TRANSFER OUTGOING Viral Genetics Inc	$10,000.00

 

 

    	8

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