Document:

Exhibit 10.21

 

SECURITIES PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (the “Agreement”),
dated as of November 4, 2014, is entered into by and among Axxess Pharma, Inc., a Nevada corporation (the
“Company”), and WHC Capital LLC (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Company
and the Purchaser are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration for offers and sales to accredited investors afforded, inter alia, by Rule 506 under Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act
of 1933, as amended (the “Securities Act”), and/or Section 4(2) of the Securities Act; and

 

WHEREAS,
the Purchaser wishes to purchase a 10% Secured Convertible Debenture of the Company having
a face value of $312,500 (the “Debenture”), subject to and upon the terms and conditions of this Agreement and acceptance
of this Agreement by the Company, on the terms and conditions referred to herein.

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.          AGREEMENT
TO PURCHASE; PURCHASE PRICE.

 

a.           Purchase.

 

(i)          Subject
to the terms and conditions of this Agreement and the other Transaction Documents, the Purchaser hereby agrees to purchase the
Debenture from the Company, for an aggregate purchase price of $250,000 (the “Purchase Price”), on the Closing Date
(as defined below). The Debenture referred to herein shall be in the form of Annex I hereto.

 

(ii)         In
consideration for the Purchaser agreeing to purchase the Debenture, the Company agrees to issue to the Purchaser the Warrants (as
defined herein) in the form of Annex II hereto. Additional provisions relating to the Warrants are provided below.

 

(iv)        The
purchase of the Debenture and the issuance of the Warrants by the Purchaser and the other transactions contemplated hereby are
sometimes referred to herein and in the other Transaction Documents as the purchase and sale of the Securities (as defined below),
and are referred to collectively as the “Transactions”.

 

b.           Certain
Definitions. As used herein, each of the following terms has the meaning
set forth below, unless the context otherwise requires:

 

“Closing Date”
means the date of the closing of the purchase of Debenture and issuance of Warrants.

 

    	 

    	 

    

 

“Common Stock”
means shares of common stock of the Company, par value $0.0001 per share.

 

“Conversion Shares”
means shares of Common Stock underlying and issuable upon conversions of the Debenture.

 

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

 

“Holder”
means the Person holding the relevant Securities at the relevant time.

 

“Material Adverse
Effect” means an event or combination of events, which individually or in the aggregate, would reasonably be expected to
(w) adversely affect the legality, validity or enforceability of the Securities or any of the Transaction Documents, (x) have or
result in a material adverse effect on the results of operations, assets, prospects, or condition (financial or otherwise) of the
Company and its subsidiaries, taken as a whole, (y) adversely impair the Company’s ability to perform fully on a timely basis
its obligations under any of the Transaction Documents or the transactions contemplated thereby, or (z) materially and adversely
affect the value of the rights granted to the Purchaser in the Transaction Documents.

 

“Person”
means any living person or any entity, such as, but not necessarily limited to, a corporation, partnership or trust.

 

“Securities”
means the Debenture, the Conversion Shares, the Warrants, the Warrant Shares and any shares of Common Stock of the Company that
may be issued to the Purchaser in connection with any other agreements between the parties.

 

“State of Incorporation”
means Nevada.

 

“Subsidiary”
means any subsidiary of the Company.

 

“Transfer Agent”
means, at any time, the transfer agent for the Company’s Common Stock.

 

“Transaction Documents”
means this Agreement, the Debenture, the Warrants, and includes all ancillary documents referred to in those agreements.

 

“Warrants”
means, collectively, share purchase warrants entitling the Purchaser to acquire 1,000,000 shares of the Company’s Common
Stock, at an exercise price of $0.25535 per share, subject to adjustment.

 

“Warrant Shares”
means shares of Common Stock underlying the Warrants.

 

c.           Form
of Payment; Delivery of Securities.

 

(i)          On
the Closing Date, the Purchaser shall pay the Purchase Price by delivering immediately available funds in United States Dollars
to the Company. The Company shall deliver the Debenture and Warrants, duly executed on behalf of the Company to the Purchaser.

 

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(ii)         By
signing this Agreement, the Purchaser and the Company agree to all of the terms and conditions of the Transaction Documents, all
of the provisions of which are incorporated herein by this reference as if set forth in full.

 

2. PURCHASER REPRESENTATIONS,
WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT INVESTIGATION.

 

The Purchaser represents
and warrants to, and covenants and agrees with, the Company as follows:

 

a.           Without
limiting Purchaser’s right to sell the Securities pursuant to an effective registration statement or otherwise in compliance
with the Securities Act, the Purchaser is purchasing the Securities for its own account for investment only and not with a view
towards the public sale or distribution thereof and not with a view to or for sale in connection with any distribution thereof.

 

b.           The
Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of the General Rules and Regulations
under the Securities Act by reason of Rule 501(a)(3), (ii) experienced in making investments of the kind described in this Agreement
and the related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Company or any of its affiliates or selling agents), to
protect its own interests in connection with the transactions described in this Agreement, and the related documents, and to evaluate
the merits and risks of an investment in the Securities, and (iv) able to afford the entire loss of its investment in the Securities.

 

c.           All
subsequent offers and sales of the Securities by the Purchaser shall be made pursuant to registration of the relevant Securities
under the Securities Act or pursuant to an exemption from registration.

 

d.           The
Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration
requirements of the Securities Act and state securities laws and that the Company is relying upon the truth and accuracy of, and
the Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser
set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the
Securities.

 

e.           The
Purchaser and its advisors, if any, have been furnished with or have been given access to all materials relating to the business,
finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested
by the Purchaser, including those set forth on in any annex attached hereto. The Purchaser and its advisors, if any, have been
afforded the opportunity to ask questions of the Company and its management and have received complete and satisfactory answers
to any such inquiries.

 

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f.            The
Purchaser understands that its investment in the Securities involves a high degree of risk.

 

g.           The
Purchaser hereby represents that, in connection with its purchase of the Securities, it has not relied on any statement or representation
by the Company or any of its officers, directors and employees or any of their respective attorneys or agents, except as specifically
set forth in the Transaction Documents and the Company’s filings with the Securities and Exchange Commission.

 

h.           The
Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on
or made any recommendation or endorsement of the Securities.

 

i.            This
Agreement and the other Transaction Documents to which the Purchaser is a party, and the transactions contemplated thereby, have
been duly and validly authorized, executed and delivered on behalf of the Purchaser and are valid and binding agreements of the
Purchaser enforceable in accordance with their respective terms, subject as to enforceability to general principles of equity and
to bankruptcy, insolvency, moratorium and other similar laws affecting the enforcement of creditors’ rights generally.

 

3.          COMPANY
REPRESENTATIONS, ETC.  The Company represents and warrants to the Purchaser as of the date hereof and as of the closing.

 

a.           Rights
of Others Affecting the Transactions. There are no preemptive rights of any shareholder of the Company, as such, to acquire
the Debenture, the Warrant, or any shares of the Company’s Common Stock that may be issued to the Purchaser in connection
with any other agreements between the parties, in the event such shares are issued. No party other than a Purchaser has a currently
exercisable right of first refusal which would be applicable to any or all of the transactions contemplated by the Transaction
Documents.

 

b.           Status.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Incorporation
and has the requisite corporate power to own its properties and to carry on its business as now being conducted. The Company is
duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so
qualify would not have or result in a Material Adverse Effect.

 

c.           Authorized
Shares. The authorized capital stock of the Company consists of (A) 100,000,000 shares of Common Stock, $0.0001 par value per
share, of which 54,767,009 shares are outstanding as of the date hereof; and (B) 20,000,000 shares of preferred stock, $0.0001
par value per share, of which 20,000,000 shares are outstanding as of the date hereof. No options or warrants are issued and outstanding.

 

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d.           Transaction
Documents and Stock. This Agreement and each of the other Transaction Documents, and the transactions contemplated thereby,
have been duly and validly authorized by the Company, this Agreement has been duly executed and delivered by the Company and this
Agreement is, and the Warrant, the Debenture and each of the other Transaction Documents, when executed and delivered by the Company,
will be, valid and binding agreements of the Company enforceable in accordance with their respective terms, subject as to enforceability
to general principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally.

 

e.           Non-contravention.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company, the issuance of the
Securities, and the consummation by the Company of the other transactions contemplated by this Agreement, each of the Warrant,
the Debenture and the other Transaction Documents do not and will not conflict with or result in a breach by the Company of any
of the terms or provisions of, or constitute a default under (i) the articles of incorporation or by-laws of the Company, each
as currently in effect, (ii) any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company
is a party or by which it or any of its properties or assets are bound, including any listing agreement for the Common Stock except
as herein set forth, or (iii) to its knowledge, any existing applicable law, rule, or regulation or any applicable decree, judgment,
or order of any court, United States federal or state regulatory body, administrative agency, or other governmental body having
jurisdiction over the Company or any of its properties or assets, except such conflict, breach or default which would not have
or result in a Material Adverse Effect.

 

f.            Approvals.
No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock
exchange or market or the shareholders of the Company is required to be obtained by the Company for the issuance and sale of the
Securities to the Purchaser as contemplated by this Agreement, except such authorizations, approvals and consents that have been
obtained.

 

g.           Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board or body
pending or, to the knowledge of the Company, threatened against or affecting the Company before or by any governmental authority
or nongovernmental department, commission, board, bureau, agency or instrumentality or any other person, wherein an unfavorable
decision, ruling or finding would have a Material Adverse Effect or which would adversely affect the validity or enforceability
of, or the authority or ability of the Company to perform its obligations under, any of the Transaction Documents. The Company
is not aware of any valid basis for any such claim that (either individually or in the aggregate with all other such events and
circumstances) could reasonably be expected to have a Material Adverse Effect. There are no outstanding or unsatisfied judgments,
orders, decrees, writs, injunctions or stipulations to which the Company is a party or by which it or any of its properties is
bound, that involve the transaction contemplated herein or that, alone or in the aggregate, could reasonably be expect to have
a Material Adverse Effect.

 

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h.           No
Undisclosed Liabilities or Events. The Company has no liabilities or obligations other than those disclosed in the Transaction
Documents or those incurred in the ordinary course of the Company’s business since inception, or which individually or in
the aggregate, do not or would not have a Material Adverse Effect. No event or circumstances has occurred or exists with respect
to the Company or its properties, business, operations, condition (financial or otherwise), or results of operations, which, under
applicable law, rule or regulation, requires public disclosure or announcement prior to the date hereof by the Company but which
has not been so publicly announced or disclosed. There are no proposals currently under consideration or currently anticipated
to be under consideration by the Board of Directors or the executive officers of the Company which proposal would (x) change the
articles or certificate of incorporation or other charter document or by-laws of the Company, each as currently in effect, with
or without shareholder approval, which change would reduce or otherwise adversely affect the rights and powers of the shareholders
of the Common Stock or (y) materially or substantially change the business, assets or capital of the Company, including its interests
in subsidiaries.

 

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

 

j.            Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company
or any Subsidiary.

 

4.          CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.

 

a.           Transfer
Restrictions. The Purchaser acknowledges that (1) the Securities have not been and are not being registered under the provisions
of the Securities Act and may not be transferred unless (A) subsequently registered thereunder or (B) the Purchaser shall have
delivered to the Company an opinion of counsel, reasonably satisfactory in form, scope and substance to the Company, to the effect
that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration; (2) any
sale of the Securities made in reliance on Rule 144 promulgated under the Securities Act (“Rule 144”) may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such Securities under circumstances
in which the seller, or the Person through whom the sale is made, may be deemed to be an underwriter, as that term is used in the
Securities Act, may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC
thereunder; and (3) neither the Company nor any other Person is under any obligation to register the Securities under the Securities
Act or to comply with the terms and conditions of any exemption thereunder.

 

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b.           Restrictive
Legend. The Purchaser acknowledges and agrees that the certificates and other instruments representing any of the Securities
shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of
any such Securities):

 

“THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

c.           Use
of Proceeds. The Company agrees that it shall not use the funds from this Agreement, at any time, to lend money, give credit
or make advances to any officers, directors, employees, Subsidiaries and affiliates of the Company.

 

d.           Filings.
The Company undertakes and agrees to make all necessary filings in connection with the sale of the Securities to the Purchaser
under any United States laws and regulations applicable to the Company, or by any domestic securities exchange or trading market,
and to provide a copy thereof to the Purchaser promptly after such filing.

 

e.           Publicity,
Filings, Releases, Etc. Each of the parties agrees that it will not disseminate any information relating to the Transaction
Documents or the transactions contemplated thereby, including issuing any press releases, holding any press conferences or other
forums, or filing any reports (collectively, “Publicity”), without giving the other party reasonable advance notice
and an opportunity to comment on the contents thereof. Neither party will include in any such Publicity any statement or statements
or other material to which the other party reasonably objects, unless in the reasonable opinion of counsel to the party proposing
such statement, such statement is legally required to be included.

 

5.          CONDITIONS
TO THE COMPANY’S OBLIGATION TO SELL.

 

The Purchaser understands
that the Company’s obligation to sell the Securities to the Purchaser pursuant to this Agreement on the Closing Date is conditioned
upon:

 

a.           The
execution and delivery of this Agreement by the Purchaser;

 

b.           Delivery
by the Purchaser to the Company the Purchase Price;

 

c.           The
accuracy in all material respects on the Closing Date of the representations and warranties of the Purchaser contained in this
Agreement, each as if made on such date; and

 

d.           There
shall not be in effect any law, rule or regulation prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained.

 

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6.          CONDITIONS
TO THE PURCHASER’S OBLIGATION TO PURCHASE.

 

The Company understands
that the Purchaser’s obligation to purchase any Securities and its acceptance of any shares of the Company’s Common
Stock that may be issued in connection with any agreements between the parties hereto on the Closing Date is conditioned upon:

 

a.           The
execution and delivery of this Agreement and the other Transaction Documents by the Company;

 

b.           Delivery
by the Company to the Purchaser of the Debenture and the Warrants on the Closing Date in accordance with this Agreement or any
other agreements between the parties;

 

c.           The
accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained in this Agreement,
each as if made on such date, and the performance by the Company on or before such date of all covenants and agreements of the
Company required to be performed on or before such date;

 

d.           There
shall not be in effect any law, rule or regulation prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained; and

 

e.           From
and after the date hereof to and including the Closing Date, each of the following conditions will remain in effect: there shall
not have been any Material Adverse Effect in regards to the Company.

 

7.          COLLATERAL
SHARES. The Company and the Purchaser hereby agree that the Debenture will be secured by 3,500,000 shares of Common Stock of
the Company beneficially owned by Peter Daniel Bagi, the Chief Executive Officer of the Company (the “Collateral Shares”),
pursuant to that certain Stock Pledge Agreement dated as of the even date. The Collateral Shares shall be held in the office of
Szaferman Lakind Blumstein & Blader, PC, as the escrow agent, pursuant to that certain Escrow Agreement dated as of the even
date. The Purchaser shall have full-recourse against the Company in the event that net proceeds from the sale of the Collateral
Shares do not provide adequate coverage of amounts owed under the Debenture. Upon termination of the Debenture, any remaining Collateral
Shares shall be immediately returned to the Company.

 

8.          EXPENSES.
Each of the parties shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers or others
engaged by such party) in connection with this Agreement. The Company agrees to pay $7,500 to its counsel, Szaferman Lakind Blumstein
& Blader, PC, from the proceeds hereof.

 

9.         JURY
TRIAL WAIVER. The Company and the Purchaser hereby waive a trial by jury in any action, proceeding or counterclaim brought
by either of the Parties hereto against the other in respect of any matter arising out or in connection with the Transaction Documents.

 

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10.         GOVERNING
LAW. This Agreement will be governed by and construed and enforced under the laws of the State of New York, without
reference to principles of conflict of laws or choice of laws.

 

11.         NOTICES.
Any notices and other communications required or permitted under this Agreement shall be in writing and shall be delivered
(i) personally by hand or by courier, (ii) mailed by United States first-class mail, postage prepaid or (iii) sent by facsimile
or other electronic transmission directed to the address or facsimile number or other address for electronic transmission set forth
below. All such notices and other communications shall be deemed given upon (i) receipt or refusal of receipt, if delivered personally,
(ii) three (3) days after being placed in the mail, if mailed, or (iii) confirmation of facsimile transfer or other electronic
transmission, if faxed or emailed.

 

	 	If to the Company:
	 	 
	 	Axxess Pharma, Inc.
	 	3250 Bloor Street West, Suite 613
	 	Toronto, ON, M8X 2X9
	 	Fax:
	 	Phone: (461)-410-6006
	 	Attention:	Peter Daniel Bagi, MD
	 	 	President and Director
	 	 
	 	If to the Purchaser:
	 	 
	 	WHC Capital LLC 
	 	200 Stonehinge Lane, Suite 3
	 	Carle Place, NY 11514
	 	Fax: (212) 574-3326
	 	Phone: (718) 530-0184
	 	Attention:	Hamin Abdullah, President

 

12.         SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s and the Purchaser’s representations and warranties herein shall
survive until the termination of the Debenture, and shall inure to the benefit of the Purchaser and the Company and their respective
successors and assigns.

 

13.         SUCCESSORS
AND ASSIGNS. The terms and conditions of this Agreement will inure to the benefit of and be binding upon the respective successors
and permitted assigns of the parties. The Company shall not assign this Agreement or any rights or obligations hereunder without
the prior written consent of the Purchaser. Purchaser may assign its rights under this Agreement to any person to whom the Purchaser
assigns or transfers any of the Shares, provided that such transferee agrees in writing to be bound by the terms and provisions
of this Agreement, and such transfer is in compliance with the terms and provisions of this Agreement and permitted by federal
and state securities laws.

  

[Balance of page intentionally left blank]

 

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IN WITNESS WHEREOF,
this Agreement has been duly executed by the Purchaser and the Company as of the date set first above written.

  

	COMPANY:	 
	 	 
	AXXESS PHARMA, INC.	 
	 	 
	By:	/s/ Peter Daniel Bagi	 
	Name:   Peter Daniel Bagi	 
	Title:     Chief Executive Officer	 

 

PURCHASER:

 

WHC CAPITAL LLC

 

	By:	/s/ Hamin Abdullah	 
	Name:	Hamin Abdullah	 
	Title:	President 	 
	 	 	 

 

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Annex I

 

10% Secured Convertible Debenture 

 

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Annex II

 

Form of Warrant

 

    	12Exhibit 10.22

 

NEITHER THIS SECURITY NOR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON
CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Axxess
Pharma, Inc.

 

10% Secured Convertible Debenture

 

No. _____

 

	$312,500	Issue Date:  November 4, 2014

 

This 10% Secured Convertible
Debenture (the “Debenture”) is duly authorized and issued by Axxess Pharma, Inc., a Nevada corporation, (the
“Company”), having its principal executive office at 3250 Bloor Street West, Suite 613, Toronto, ON, M8X 2X9.

 

FOR VALUE RECEIVED,
the Company, promises to pay to the order of WHC Capital, LLC and or its registered assigns (the “Payee” or
the “Holder”), the sum of Three Hundred Twelve Thousand Five Hundred Dollars($312,500) (the “Outstanding
Amount”) no later than May 4, 2015 (the “Maturity Date”) in such coin or currency of the United States
of America as at the time of payment shall be legal tender for the payment of public and private debts, unless it is previously
repaid by the Company or converted into common stock. This Debenture shall be subordinated to the Company’s existing debt.

 

This
Debenture has been executed and delivered pursuant to the Securities Purchase Agreement dated as of the even date (the “Agreement”)
by and among the Company and the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth
for such terms in the Agreement.

 

This Debenture is subject
to the following additional provisions:

 

1.          Interest.
This Debenture shall accrue interest at a rate of ten percent (10%) per annum compounded monthly. The Outstanding Amount shall
include all accrued interest herein.

 

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2.          Repurchase.
This Debenture can be repaid at a reduced amount of $285,000, if paid within 120 days of the Issue Date. After 120 days and prior
to the Maturity Date, the Debenture can be repaid at 115% of the face value.

 

3.          Conversion.
At any time if (a) this Debenture is in default according to Section 7, and (b) the net proceeds from the sale of Collateral Shares
do not provide adequate coverage of all amounts owing hereunder pursuant to Section 6, and (c) the Company cannot remedy the inadequate
amount in five (5) business days pursuant to Section 6, this Debenture can be convertible into shares of common stock of the Company
at the option of the Holder, in whole or in part (subject to any limitations on conversion).  The Holder shall effect conversions
by delivering to the Company the form of Notice of Conversion attached hereto as Exhibit A (a “Notice of Conversion”),
specifying therein the amount of this Debenture to be converted and the date on which such conversion is to be effected (a “Conversion
Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such
Notice of Conversion is provided hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender
this Debenture to the Company unless the entire outstanding amount of this Debenture has been so converted. Conversions hereunder
shall have the effect of lowering the outstanding amount of this Debenture in an amount equal to the applicable conversion amount.
The Company shall maintain records showing the amount converted and the date of such conversions. The Holder and any assignee,
by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion
of a portion of this Debenture, the unpaid and unconverted amount of this Debenture may be less than the amount stated on the face
hereof.

 

A.           Conversion
Price. On any Conversion Date, the Debenture is convertible into shares of the Company’s common stock (the “Common
Shares”) at a conversion price equal to 70% of the average of the three daily VWAPs, chosen by the Holder, during the
twenty (20) trading days before the Issue Date, subject to adjustment (the “Conversion Price”).

 

B.           Mechanism
of Conversion

 

i.            Conversion
Shares Issuable Upon Conversion of Outstanding Amount. The number of Common Shares issuable upon a conversion hereunder shall
be determined by the quotient obtained by dividing the outstanding amount of this Debenture thereof to be converted by the Conversion
Price.

 

ii.         Delivery
of Certificate Upon Conversion. In the event of any conversion of this Debenture in accordance with and subject to the terms
and conditions hereof, certificates for the Common Shares shall be dated the Conversion Date and delivered to the Holder hereof
within a reasonable time, not exceeding five (5) Business Days after any Conversion Date (the “Deadline”), and the
Holder hereof shall be deemed for all purpose to be the holder of the Common Shares so purchased as of the date of such conversion.
The Company will deliver or cause to be delivered to the Holder a certificate or certificates representing the number of Common
Shares being acquired upon the conversion of this Debenture. The Holder shall deliver this original Debenture, or an indemnification
undertaking with respect to such Debenture in the case of its loss, theft or destruction, at such time that this Debenture is fully
exercised.

 

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iii.         Without
in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties
agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline the Company shall
pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Company fails to deliver such Common Stock.
Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option
of the Holder (by written notice to the Company by the first day of the month following the month in which it has accrued), shall
be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this
Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The
Company agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate,
interference with such conversion right are difficult if not impossible to qualify. Accordingly
the parties acknowledge that the liquidated damages provision contained in this Section are justified. Any delay or failure of
performance by the Company hereunder shall be excused if and to the extent caused by Force Majeure. For purposes of this agreement,
Force Majeure shall mean a cause or event that is not reasonably foreseeable and/or caused by the Company, including acts of God,
fires, floods, explosions, riots wars, hurricanes, etc.

 

Within Five (5) business days of having received certificate(s) for common stock pursuant to a Notice of Conversion, Holder
may elect to rescind the Notice of Conversion and return the shares, at Holder's expense, to the Company's Transfer Agent. In the
event of such rescission, the principal amount outstanding under this Note shall be adjusted to include the Conversion Amount which
was deducted from the Note as part of the rescinded Notice of Conversion.

 

Reservation of Shares
Issuable Upon Conversion. The Company covenants that it will cause the Company to at all times reserve and keep available out
of its authorized and unissued shares of common stock solely for the purpose of issuance upon any conversion of this Debenture
as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder
(and the other holders of the Debentures), not less than 100% of the Common Shares as shall be issuable upon the conversion of
the outstanding amount hereunder. The Company covenants that all shares of common stock that shall be so issuable shall, upon issue,
be duly and validly authorized, issued, and fully paid, non assessable.

 

The Company (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates
for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full
authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary
certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

 

    	3

    	 

    

 

iv.         Fractional
Shares. Upon a conversion hereunder the Holder shall be entitled to receive, in lieu of the financial fraction of a share,
one whole share of common stock.

 

v.           Transfer
Taxes. The issuance of certificates for Common Shares upon conversion of this Debenture shall be made without charge to the
Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate,
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any such certificate upon conversion in a name other than that of the Holder of this Debenture so converted and
the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

 

vi.         Maximum
Exercise of Rights. Notwithstanding anything to the contrary set forth in this Debenture, at no time may the Holder convert
all or a portion of this Debenture if the number of shares of Common Stock to be issued pursuant to such conversion, when aggregated
with all other shares of Common Stock owned by the Holder at such time, would result in the Holder, together with its affiliates,
beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of
4.99% of the then issued and outstanding shares of Common Stock outstanding at such time; provided, however, that
upon the Holder providing the Company with at least 61 days’ notice (the “Waiver Notice”) that the Holder would
like to waive this Section 3(vi) with regard to any or all shares of Common Stock issuable upon conversion of this Debenture, this
Section 3(vi) shall be of no force or effect with regard to all or a portion of the Debenture referenced in the Waiver Notice.

 

4.          Adjustment
of Conversion Price. The Conversion Price shall be subject to adjustment from time to time as set forth in this Section 4.
The Company shall give the Holder notice of any event described below which requires an adjustment pursuant to this Section 4 in
accordance with the notice provisions set forth herein.

 

A.           Stock
Dividends, Subdivisions and Combinations. If at any time the Companyshall: (i) make or issue or set a record date for the holders
of the Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, shares of Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a larger number of shares of Common Stock, or (iii) combine its
outstanding shares of Common Stock into a smaller number of shares of Common Stock, then (1) the number of shares of Common Stock
for which this Debenture is convertible immediately after the occurrence of any such event shall be adjusted to equal the number
of shares of Common Stock which a record holder of the same number of shares of Common Stock for which this Debenture is exercisable
immediately prior to the occurrence of such event would own or be entitled to receive after the happening of such event, and (2)
the Conversion Price then in effect shall be adjusted to equal (A) the Conversion Price then in effect multiplied by the number
of shares of Common Stock for which this Debenture is exercisable immediately prior to the adjustment divided by (B) the number
of shares of Common Stock for which this Debenture is exercisable immediately after such adjustment

 

    	4

    	 

    

 

B.           Adjustment
Due to Dilutive Issuance. If, at any time when the Debenture is issued and outstanding, the Company issues or sells, or in
accordance with this Section hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a
consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection
therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common
Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to
the amount of the consideration per share received by the Company in such Dilutive Issuance.

 

The Company shall be deemed to have issued or sold shares of Common Stock if the Company in any manner issues or grants
any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe
for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”)
(such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”)
and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price
then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the
“price per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i)
the total amount, if any, received or receivable by the Company as consideration for the issuance or granting of all such Options,
plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the exercise of all such Options,
plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional
consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible
or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming
full conversion of Convertible Securities, if applicable).

 

Additionally, the Company shall be deemed to have issued or sold shares of Common Stock if the Company in any manner issues,
sells or converts any Convertible Securities (whether or not the security's issuance preceded this Note) , whether or not immediately
convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock
is issuable upon such conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall
be equal to such price per share. For the purposes of the preceding sentence, the “price per share for which Common Stock
is issuable upon such conversion or exchange” is determined by dividing (i) the total amount, if any, received or receivable
by the Company as consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount
of additional consideration, if any, payable to the Company upon the conversion or exchange thereof at the time such Convertible
Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon
the conversion or exchange of all such Convertible Securities.

 

    	5

    	 

    

 

Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in
this Section, the Company, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the
Holder of a written notice setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish to such Holder a like
written notice setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the
number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon
conversion of the Note.

 

5.          Holder’s
Representations and Warranties. The Holder represents and warrants that:

 

A.           Restrictions
on Transfer or Resale. The Holder understands that (i) the Debenture and any Common Shares are not being registered under the
Securities Act, or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) the Debenture
and/or any Common Shares are subsequently registered thereunder, or (B) Holder shall have delivered to the Company an opinion of
counsel, in a generally acceptable form, to the effect that such securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration; and (ii) neither the Company nor any other party is under any obligation
to register the Debenture or the Common Shares under the Securities Act or any state securities laws or to comply with the terms
and conditions of any exemption thereunder; (iii) Holder is acquiring the Debenture and the Common Shares for its own account and
not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered
or exempted under the Securities Act, and (iv) Holder does not presently have any agreement or understanding, directly or indirectly,
with any party to distribute any of the securities.

 

B.           Accredited
Investor Status. Holder is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

C.           Reliance
on Exemptions. The Holder understands that the Debenture and any Common Shares issuable upon voluntary conversion are being
offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state
securities laws and that the Company is relying in part upon the truth and accuracy of, and Holder’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of Holder set forth herein in order to determine the
availability of such exemptions and the eligibility of Holder to acquire the securities.

 

D.           Information. Holder and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and materials relating to the offer and sale of the securities that have been requested by Holder.
Holder and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor
any other due diligence investigations conducted by Holder or its advisors, if any, or its representatives shall modify, amend
or affect Holder's right to rely on the Company's representations and warranties contained herein. Holder understands that its
investment in the Debenture and any Common Shares upon voluntary conversion involve a high degree of risk and is able to afford
a complete loss of such investment. Holder has sought such accounting, legal and tax advice as it has considered necessary to make
an informed investment decision with respect to its acquisition of the securities.

 

    	6

    	 

    

 

E.           No
Governmental Review. Holder understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the securities or the fairness or suitability of the investment
in the securities nor have such authorities passed upon or endorsed the merits of the offering of the securities.

 

F.           Legend.
This Debenture and all certificates representing Common Shares upon voluntary conversion shall be stamped or imprinted with a
legend in substantially the following form:

 

Neither
the issuance and sale of the securities represented by this Certificate nor the securities into which these securities are exercisable
have been registered under the securities Act of 1933, as amended, or Applicable state securities laws. The securities may not
be offered for sale, sold, transferred or assigned (i) in the absence of (A) an effective registration statement for the securities
under the securities Act of 1933, as amended, or (B) an opinion of counsel, in a generally acceptable form, that registration is
not required under said Act or (II) unless sold pursuant to Rule 144 or Rule 144 A under said Act. Notwithstanding the foregoing,
the securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the
securities.

 

6.          Collateral
Shares. The Company and the Holder hereby agree that the Debenture will be secured by 3,500,000 shares of Common Stock of the
Company, which are beneficially held by Peter Daniel Bagi, the Chief Executive Officer of the Company (the “Collateral Shares”)
and originate from that certain Consulting Agreement dated April 30, 2012 between the Company and Mr. Bagi. The Collateral Shares
shall be held in the office of Szaferman Lakind Blumstein & Blader, PC, as the escrow agent. Within three (3) business days
from an Event of Default, the Company, at its expenses, shall cause its counsel to deliver to the transfer agent a legal opinion
pursuant to Rule 144 under the Securities Act, assuming all required documentation have been provided by the Holder. In the event
that the net proceeds from the sale of Collateral Shares do not provide adequate coverage of all amounts owing pursuant to this
Debenture, the Company shall have five (5) business days to remedy the inadequate amount through the repayment of cash or issuance
of shares, subject to the Holder’s acceptance. The Holder shall have full recourse against the Company. Upon termination
of the Debenture, the Collateral Shares shall be immediately returned to the Company.

 

    	7

    	 

    

 

7.          Events
of Default

 

A.           The
term “Event of Default” shall mean any of the events set forth in this Section 7A (the term “Company”
for this purpose shall include all subsidiaries of the Company):

 

i.            Non-Payment
of Obligations. The Company shall default in the payment of the Outstanding Amount of this Debenture as and when the same shall
become due and payable, whether by acceleration or otherwise.

 

ii.         Public
Company Obligation. The Company shall fail to become a fully reporting company with the Securities and Exchange
Commission under Section 12(g) or 15(d) of the Exchange Act by the Maturity Date. In addition to other default remedies
contained herein, the face value of this Note shall immediately be increased to 125% of the face amount upon a default under
this subsection 7.A.ii.

 

iii.         Conversion
and the Shares. The Company fails to issue shares of Common Stock
to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder
of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent
to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon
conversion of or otherwise pursuant to this Note as and when required by this Note, the Company directs its transfer agent not
to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated
form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note
as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders
its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on
any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations
described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not
to honor its obligations shall not be rescinded in writing) for five (5) business days after the Holder shall have delivered a
Notice of Conversion. It is an obligation of the Company to remain current in its obligations to its transfer agent. It shall be
an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the
Company to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Company’s transfer agent
in order to process a conversion, such advanced funds shall be paid by the Company to the Holder within forty eight (48) hours
of a demand from the Holder.

 

iv.         Delisting
of Common Stock. The Company shall fail to maintain the listing of the Common Stock on at least one of the OTC tiers or an
equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American
Stock Exchange.

 

    	8

    	 

    

 

v.           Cessation
of Operations. Any cessation of operations by Company or Company admits it is otherwise generally unable to pay its debts as
such debts become due, provided, however, that any disclosure of the Company’s ability to continue as a “going concern”
shall not be an admission that the Company cannot pay its debts as they become due. Cessation of Operations. Any cessation
of operations by Company or Company admits it is otherwise generally unable to pay its debts as such debts become due, provided,
however, that any disclosure of the Company’s ability to continue as a “going concern” shall not be an admission
that the Company cannot pay its debts as they become due.

 

vi.         Liquidation.
Any dissolution, liquidation, or winding up of Company or any substantial portion of its business.

 

vii.         Cross-Default.
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default
by the Company of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable
notice and cure or grace periods, shall, at the option of the Company, be considered a default under this Note and the Other Agreements,
in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the
terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder.         “Other
Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Company, and, or for the benefit
of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term
“Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions
will be cross-defaulted with each other loan transaction and with all other existing and future debt of Company to the Holder.

 

viii.       Non-Performance
of Affirmative Covenants. The Company shall default in the due observance or performance of any covenant set forth herein,
which default shall continue uncured for ten (10) days.

 

ix.         Non-Performance
of Negative Covenants. The Company shall default in the due observance or performance of any covenant set forth herein, which
default shall continue uncured for ten (10) days.

 

x.         Bankruptcy,
Insolvency, etc. The Company shall: (a) admit in writing its inability to pay its debts as they become due; (b) apply for,
consent to, or acquiesce in, the appointment of a trustee, receiver, sequestrator or other custodian for the Company or any of
its property, or make a general assignment for the benefit of creditors; (c) in the absence of such application, consent or acquiesce
in, permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for the Company or for any
part of its property and that is not dismissed within sixty days; (d) permit or suffer to exist the commencement of any bankruptcy,
reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding
up or liquidation proceeding, in respect of the Company, and, if such case or proceeding is not commenced by the Company or converted
to a voluntary case, such case or proceeding is consented to or acquiesced in by the Company or results in the entry of an order
for relief; or(e) take any corporate or other action authorizing any
of the foregoing.

 

    	9

    	 

    

 

B.           Action
if Event of Default. If any Event of Default shall occur, the Outstanding Amount of this Debenture and all other obligations
hereunder shall automatically be and become immediately due and payable, without notice or demand and the Company shall pay to
the Holder, in full satisfaction of its obligations hereunder and amount equal to 115% of all principal, interests and penalties
outstanding.. At the option of the Holder, the Debenture may be converted into Common Shares in accordance with Section 3. Any
amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen (18%) per annum
from the due date thereof until the same is paid (“Default Interest”).

 

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 other or further exercise thereof or of any other
right, power or privileges.         All rights and remedies existing hereunder are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

8.          Miscellaneous.

 

A.           Parties
in Interest. All covenants, agreements and undertakings in this Debenture binding upon the Company or the Holder shall bind
and inure to the benefit of the successors and permitted assigns of the Company and the Holder, respectively, whether so expressed
or not.

 

B.           Governing
Law. This Debenture shall be governed by the laws of New York as applied to contracts entered into and to be performed entirely
within New York.

 

C.           Waiver
of Jury Trial. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE OR ANY OTHER DOCUMENT OR
INSTRUMENT EXECUTED AND DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN), OR ACTIONS OF THE PAYEE OR THE COMPANY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE'S PURCHASING THIS NOTE.

 

D.           Notices.
Any notice pursuant to this Debenture to be given or made by the Holder to or upon the Company shall be sufficiently given or made
if sent by certified or registered mail, postage prepaid, addressed (until another address is sent by the Company to the Holder)
as the addresses as set forth in the Agreement.

 

E.           No
Waiver. No delay in exercising any right hereunder shall be deemed a waiver thereof, and no waiver shall be deemed to have
any application to any future default or exercise of rights hereunder.

 

    	10

    	 

    

 

F.           Modification
and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein,
any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make
it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability
of such provision shall not affect the other provisions herein, but this Debenture shall be construed as if such unenforceable
provision had never been contained herein.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	11

    	 

    

 

[SIGNATURE PAGE TO CONVERTIBLE DEBENTURE]

 

IN WITNESS WHEREOF,
this Debenture has been executed and delivered on the date specified above by the duly authorized representative of the Company.

 

	 	AXXESS PHARMA, INC.
	 	 	 
	 	By: 	               
	 	Name:
	 	Title:

 

    	12

    	 

    

 

Exhibit
A

 

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal under the 10% Secured Subordinated Convertible Debenture of Axxess Pharma, Inc. (the “Company”)
due on May 4, 2015, into shares of common stock of the Company (the “Common Shares”), in accordance with Section 3
and 7, as of the date written below.  If the Common Shares are to be issued in the name of a person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions
as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except
for such transfer taxes, if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Shares does not
exceed the amounts determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid Common Shares.

 

Conversion calculations:

 

	 	Date to Effect Conversion:	 

 

	 	Outstanding Amount of Debenture to be Converted:	 

 

	 	Number of Common Shares to be issued:	 

 

	 	Signature: 	 

 

	 	Name: 	 

 

	 	Address:	 
	 	 	 
	 	 	 

 

    	13

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