Document:

AMENDED
AND RESSTATED DEBENTURE

    

    THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF
THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION D
PROMULGATED THEREUNDER AND SECTION 551.23(8)(g) OF THE WISCONSIN UNIFORM
SECURITIES LAW.

    

    THE
SECURITIES OFFERED HEREBY ARE OFFERED PURSUANT TO AN EXEMPTION FOR OFFERINGS TO
ACCREDITED INVESTORS ONLY UNDER THE RULES OF THE WISCONSIN DEPARTMENT OF
FINANCIAL INSTITUTIONS, SECURITIES DIVISION.  THE WISCONSIN DEPARTMENT
OF FINANCIAL INSTITUTIONS, SECURITIES DIVISION, HAS NEITHER REVIEWED NOR
APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED HEREIN MAY
ONLY BE PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION D AND THE RULES OF THE WISCONSIN DEPARTMENT OF FINANCIAL
INSTITUTIONS, SECURITIES DIVISION.

    

    
      	
              Series
      A-6

            	
              US
      $25,000

            

    

    

    AMERICAN
SCIENTIFIC RESOURCES, INC.

    

    AMENDED
AND RESTATED

    8%
CONVERTIBLE REDEEMABLE DEBENTURE

    DUE
NOVEMBER 7, 2010

    

    THIS AMENDED AND RESTATED DEBENTURE of
American Scientific Resources, Inc. ("Company"), designated
as its Series A 8% Convertible Redeemable Debenture Due November 7,
2010.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    FOR VALUE RECEIVED, the Company
promises to pay to Blaydon Capital, LLC and its authorized successors and
permitted assigns ("Holder"), the
aggregate principal face amount of twenty-five thousand dollars (U.S. $25,000)
on November 7, 2010 ("Maturity Date") and
to pay interest on the principal amount outstanding hereunder at the rate of 8%
per annum commencing on December 7, 2008.  Interest will be paid to
the Holder in whose name this Amended and Restated Debenture is registered on
the records of the Company regarding registration and transfers of this Amended
and Restated Debenture ("Debenture Register");
provided, however, that the Company's obligation to a transferee of this Amended
and Restated Debenture arises only if such transfer, sale or other disposition
is made in accordance with the terms and conditions of the Securities Sale
Agreement dated as of September 29, 2008 between the Company and the Holder
("Sale
Agreement").  The principal of, and interest on, this Amended
and Restated Debenture are payable at 200 South Executive Drive, Suite 101,
Brookfield, WI 53005 initially, and if changed, last appearing on the Debenture
Register of the Company as designated in writing by the Holder hereof from time
to time.  The Company will pay the outstanding principal due upon this
Amended and Restated Debenture before or on the Maturity Date, less any amounts
required by law to be deducted or withheld, to the Holder of this Amended and
Restated Debenture by check if paid more than 10 days prior to the Maturity Date
or, if paid 10 days or less prior to the Maturity Date, by wire transfer and
addressed to such Holder at the last address appearing on the Debenture
Register.  The forwarding of such check or wire transfer shall
constitute a payment of outstanding principal hereunder and shall satisfy and
discharge the liability for principal on this Amended and Restated Debenture to
the extent of the sum represented by such check or wire
transfer.  Interest shall be payable in Common Stock (as defined
below) pursuant to paragraph 4(b) herein.

    

    This Amended and Restated Debenture is
issued pursuant to the Sale Agreement and the Company hereby confirms that all
of the representations and warranties of the Company set forth in the Sale
Agreement are true and correct as of the date hereof, except that (a) the
Company’s capital structure consists of 500,000,000 authorized shares of Common
Stock, and (b) the number of shares of issued and outstanding Common Stock is
247,999,928.

    

    This Amended and Restated Debenture is
subject to the following additional provisions:

    

    1.           This
Amended and Restated Debenture is issuable or assignable to a Holder in
denominations of Five Thousand Dollars (US$5,000) and integral multiples
thereof.  This Amended and Restated Debenture is exchangeable for an
equal aggregate principal amount of Amended and Restated Debentures of different
authorized denominations, as requested by the Holders surrendering the same, but
not less than U.S. $5,000.  No service charge will be made for such
registration or transfer or exchange, except that Holder shall pay any tax or
other governmental charges payable in connection therewith.

    

    2.           The
Company shall be entitled to withhold from all payments any amounts required to
be withheld under applicable laws.

    
      
         

      

      
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    3.           This
Amended and Restated Debenture may be transferred or exchanged only in
compliance with the Securities Act of 1933, as amended ("Act") and applicable
state securities laws.  Prior to due presentment for transfer of this
Amended and Restated Debenture, the Company and any agent of the Company may
treat the person in whose name this Amended and Restated Debenture is duly
registered on the Company's Debenture Register as the owner hereof for all other
purposes, whether or not this Amended and Restated Debenture be overdue, and
neither the Company nor any such agent shall be affected or bound by notice to
the contrary.  Any Holder of this Amended and Restated Debenture
electing to exercise the right of conversion set forth in Section 4(a) hereof,
in addition to the requirements set forth in Section 4(a), and any prospective
transferee of this Amended and Restated Debenture, are also required to give the
Company written confirmation that this Amended and Restated Debenture is being
converted ("Notice of
Conversion"). The date of receipt (including receipt by telecopy) of such
Notice of Conversion shall be the Conversion Date.

    

    4.           (a)           The
Holder of this Amended and Restated Debenture is entitled, at its option, at any
time following delivery of this Amended and Restated Debenture, to convert all or any
amount over $100 of the principal face amount of this Amended and Restated
Debenture then outstanding into shares of the Company's common stock (the "Common Stock")
without restrictive legend of any nature, at a conversion price ("Conversion Price")
for each share of Common Stock equal to 60% of the lowest closing bid price of
the Common Stock as reported on the National Quotations Bureau Pink Sheets on
which the Company’s shares are traded or any exchange upon which the Common
Stock may be traded in the future ("Exchange") for (i)
any of the three trading days prior to the day upon which a Notice of Conversion
is received by the Company, provided such Notice of Conversion is delivered by
fax to the Company between the hours of 4 P.M. Eastern Standard or Daylight
Savings Time and 7 P.M. Eastern Standard or Daylight Savings Time, or (ii) the
trading day on which a Notice of Conversion is received by the Company provided
such Notice of Conversion is delivered by fax to the Company between the hours
of 4 P.M. Eastern Standard or Daylight Savings Time and 7 P.M. Eastern Standard
or Daylight Savings Time.  If the number of resultant shares of Common
Stock would as a matter of law or pursuant to regulatory authority require the
Company to seek shareholder approval of such issuance, the Company shall, as
soon as practicable, take the necessary steps to seek such
approval.  Such conversion shall be effectuated by the Company
delivering the shares of Common Stock to the Holder within 3 business days of
receipt by the Company of the Notice of Conversion.  Once the Holder
has received such shares of Common Stock, the Holder shall surrender this
Amended and Restated Debentures to the Company, executed by the Holder
evidencing such Holder's intention to convert this Amended and Restated
Debenture or a specified portion hereof, and accompanied by proper assignment
hereof in blank.  Accrued but unpaid interest shall be subject to
conversion.  No fractional shares or scrip representing fractions of
shares will be issued on conversion, but the number of shares issuable shall be
rounded to the nearest whole share.

    
      
         

      

      
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    (b)           Interest
on any unpaid principal balance of this Amended and Restated Debenture shall be
paid at the rate of 8% per annum.  Interest shall be paid by the
Company in Common Stock ("Interest Shares").  The Holder may, at any
time, send in a Notice of Conversion to the Company for Interest Shares based on
the formula provided in Section 4(a) above.  The dollar amount
converted into Interest Shares shall be all or a portion of the accrued interest
calculated on the unpaid principal balance of this Amended and Restated
Debenture to the date of such notice.  Interest Shares shall be issued
under the exemption from registration provided by Rule 504 of Regulation
D.

    

    (c)           At
any time the Company shall have the option to redeem this Amended and Restated
Debenture and pay to the Holder 150% of the unpaid principal amount of this
Amended and Restated Debenture, in full. The Company shall give the Holder 5
days written notice and the Holder during such 5 days shall have the option to
convert this Amended and Restated Debenture or any part thereof into shares of
Common Stock at the Conversion Price set forth in paragraph 4(a) of this Amended
and Restated Debenture.

    

    (d)           Upon
(i) a transfer of all or substantially all of the assets of the Company to any
person in a single transaction or series of related transactions, (ii) a
reclassification, capital reorganization or other change or exchange of
outstanding shares of the Common Stock, or (iii) any consolidation or merger of
the Company with or into another person or entity in which the Company is not
the surviving entity (other than a merger which is effected solely to change the
jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale
Event"), then, in each case, the Company shall, upon request of the Holder,
redeem this Amended and Restated Debenture in cash for 150% of the principal
amount, plus accrued but unpaid interest through the date of redemption, or at
the election of the Holder, such Holder may convert the unpaid principal amount
of this Amended and Restated Debenture (together with the amount of accrued but
unpaid interest) into shares of Common Stock immediately prior to such Sale
Event at the Conversion Price.

    

    (e)           In
case of any Sale Event in connection with which this Amended and Restated
Debenture is not redeemed or converted, the Company shall cause effective
provision to be made so that the Holder of this Amended and Restated Debenture
shall have the right thereafter, by converting this Amended and Restated
Debenture, to purchase or convert this Amended and Restated Debenture into the
kind and number of shares of stock or other securities or property (including
cash) receivable upon such reclassification, capital reorganization or other
change, consolidation or merger by a holder of the number of shares of Common
Stock that could have been purchased upon exercise of the Debentures and at the
same Conversion Price, as defined in this Amended and Restated Debenture,
immediately prior to such Sale Event. The foregoing provisions shall similarly
apply to successive Sale Events. If the consideration received by the holders of
Common Stock is other than cash, the value shall be as determined by the Board
of Directors of the Company or successor person or entity acting in good
faith.

    

    5.           This
Debenture is secured by all assets of the Company.

    
      
         

      

      
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    6.           No
provision of this Amended and Restated Debenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the
principal of, and interest on, this Amended and Restated Debenture at the time,
place, and rate, and in the form, herein prescribed.

    

    7.           The
Company hereby expressly waives demand and presentment for payment, notice of
non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto.

    

    8.           The
Company agrees to pay all costs and expenses, including reasonable attorneys'
fees, which may be incurred by the Holder in collecting any amount due under
this Amended and Restated Debenture.

    

    9.           If
one or more of the following described "Events of Default" shall occur and
continue for five (5) days, unless a different time frame is noted
below:

    

    (a)          The
Company shall default in the payment of principal or interest on this Amended
and Restated Debenture or any other debenture issued pursuant to the Sale
Agreement; or

    

    (b)          Any
of the representations or warranties made by the Company herein, in the Sale
Agreement, or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection
with the execution and delivery of this Amended and Restated Debenture or the
Sale Agreement shall be false or misleading in any material respect at the time
made or the Company shall violate any covenants in the Sale Agreement including
but not limited to Section 5(b) or 10; or

    

    (c)           The
Company shall fail to perform or observe, in any material respect, any other
covenant, term, provision, condition, agreement or obligation of the Company
under this Amended and Restated Debenture or the Sale Agreement; or

    

    (d)          The
Company shall (1) become insolvent; (2) admit in writing its inability to pay
its debts generally as they mature; (3) make an assignment for the benefit of
creditors or commence proceedings for its dissolution; (4) apply for or consent
to the appointment of a trustee, liquidator or receiver for its or for a
substantial part of its property or business; (5) file a petition
for  bankruptcy relief, consent to the filing of such petition or have
filed against it an involuntary petition for bankruptcy relief, all under
federal or state laws as applicable; or

    

    (e)           A
trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment;
or

    
      
         

      

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

    

    (g)          One
or more money judgments, writs or warrants of attachment, or similar process, in
excess of One Hundred Thousand Dollars ($100,000) in the aggregate, shall be
entered or filed against the Company or any of its properties or other assets
and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen
(15) days or in any event later than five (5) days prior to the date of any
proposed sale thereunder; or

    

    (h)          Bankruptcy,
reorganization, insolvency or liquidation proceedings, or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted voluntarily by or involuntarily against the Company; or

    

    (i)           If
listed, the Company shall have its Common Stock delisted from an Exchange or, if
the Common Stock trades on an Exchange, then trading in the Common Stock shall
be suspended for more than five (5) consecutive days; or

    

    (j)           The
Company shall not deliver or cause to be delivered to the Holder the Common
Stock pursuant to paragraph 4 herein without restrictive legend within five (5)
business days of its receipt of a Notice of Conversion; or

    

    (k)          If
there is any attempt by the Borrower to circumvent the requirements or
provisions of this Amended and Restated Debenture or the Sale Agreement or to
mislead the Holder through any ruse, program, subterfuge or other means, whether
perpetrated alone or in consort with others

    

    Then, or
at any time thereafter, unless cured, and in each and every such case, unless
such Event of Default shall have been waived in writing by the Holder (which
waiver shall not be deemed to be a waiver of any subsequent default) at the
option of the Holder and in the Holder's sole discretion, the Holder may
consider 150% of all amounts outstanding under this Amended and Restated
Debenture immediately due and payable, without presentment, demand, protest or
(further) notice of any kind (other than notice of acceleration), all of which
are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and
without expiration of any period of grace, enforce any and all of the Holder's
rights and remedies provided herein or any other rights or remedies afforded by
law.  Upon an Event of Default, interest shall be accrue at a default
interest rate of 24% per annum or, if such rate is usurious or not permitted by
current law, then at the highest rate of interest permitted by law.

    

    10.          This
Debenture represents a prioritized obligation of the
Company.  However, no recourse shall be had for the payment of the
principal of, or the interest on, this Amended and Restated Debenture, or for
any claim based hereon, or otherwise in respect hereof, against any
incorporator, shareholder, officer or director, as such, past, present or
future, of the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.

    
      
         

      

      
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    11.           In
case any provision of this Amended and Restated Debenture is held by a court of
competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible,
so that it is enforceable to the maximum extent possible, and the validity and
enforceability of the remaining provisions of this Amended and Restated
Debenture will not in any way be affected or impaired thereby.

    

    12.           This
Debenture and the agreements referred to in this Amended and Restated Debenture
constitute the full and entire understanding and agreement between the Company
and the Holder with respect to the subject matter hereof.  Neither
this Amended and Restated Debenture nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the
Company and the Holder.

    

    13.           This
Debenture shall be governed by and construed in accordance with the laws of
Wisconsin applicable to contracts made and wholly to be performed within the
State of Wisconsin and shall be binding upon the successors and assigns of each
party hereto.  The Holder and the Company hereby mutually waive trial
by jury and consent to exclusive jurisdiction and venue in the courts of the
State of Wisconsin.  At the Holder's election, any dispute between the
parties may be arbitrated rather than litigated in the courts, before the
American Arbitration Association in Milwaukee, Wisconsin and pursuant to its
rules.  Upon demand made by the Holder to the Company, the Company
agrees to submit to and participate in such arbitration.  This
Agreement may be executed in counterparts, and the facsimile transmission of an
executed counterpart to this Agreement shall be effective as an
original.

    

    {REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK}

    
      
         

      

      
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    IN WITNESS WHEREOF, the Company has
caused this Amended and Restated Debenture to be duly executed by an officer
thereunto duly authorized.

    

    Dated:
November 7, 2008

    

    
      
        
          
            	
                    AMERICAN
      SCIENTIFIC

                  
	
                    RESOURCES,
      INC.

                  
	 
      
	
                    By:

                  	
                    

                  
	
                    Name:  Christopher
      F. Tirotta, MD, MBA

                  
	
                    Title:
      CEO/Chairman of the
Board

                  

          

        

      

    

    

    
      
         

      

      
        8DEBENTURE

    

    THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF
THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION D
PROMULGATED THEREUNDER AND SECTION 551.23(8)(g) OF THE WISCONSIN UNIFOM
SECURITIES LAW.

    

    THE
SECURITIES OFFERED HEREBY ARE OFFERED PURSUANT TO AN EXEMPTION FOR OFFERINGS TO
ACCREDITED INVESTORS ONLY UNDER THE RULES OF THE WISCONSIN DEPARTMENT OF
FINANCIAL INSTITUTIONS, SECURITIES DIVISION.  THE WISCONSIN DEPARTMENT
OF FINANCIAL INSTITUTIONS, SECURITIES DIVISION, HAS NEITHER REVIEWED NOR
APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED HEREIN MAY
ONLY BE PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION D AND THE RULES OF THE WISCONSIN DEPARTMENT OF FINANCIAL
INSTITUTIONS, SECURITIES DIVISION.

    

    
      	
              Series
      A-1

            	 
      	
              US
      $50,000

            

    

    

    AMERICAN
SCIENTIFIC RESOURCES, INC.

    

    8%
CONVERTIBLE REDEEMABLE DEBENTURE

    DUE MARCH
18, 2010

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    THIS DEBENTURE of American Scientific
Resources, Inc. ("Company"), designated
as its Series A 8% Convertible Redeemable Debenture Due March 18,
2010.

    

    FOR VALUE RECEIVED, the Company
promises to pay to The Tripod Group, LLC and its authorized successors and
permitted assigns ("Holder"), the
aggregate principal face amount of fifty thousand dollars (U.S. $50,000) on
March 18, 2010 ("Maturity Date") and
to pay interest on the principal amount outstanding hereunder at the rate of 8%
per annum commencing on April 17, 2008.  Interest will be paid to the
Holder in whose name this Debenture is registered on the records of the Company
regarding registration and transfers of this Debenture ("Debenture Register");
provided, however, that the Company's obligation to a transferee of this
Debenture arises only if such transfer, sale or other disposition is made in
accordance with the terms and conditions of the Securities Sale Agreement dated
as of March 18, 2008 between the Company and the Holder ("Sale
Agreement").  The principal of, and interest on, this Debenture
are payable at 250 E. Wisconsin Ave., Suite 1800, Milwaukee, WI
53202  initially, and if changed, last appearing on the Debenture
Register of the Company as designated in writing by the Holder hereof from time
to time.  The Company will pay the outstanding principal due upon this
Debenture before or on the Maturity Date, less any amounts required by law to be
deducted or withheld, to the Holder of this Debenture by check if paid more than
10 days prior to the Maturity Date or, if paid 10 days or less prior to the
Maturity Date, by wire transfer and addressed to such Holder at the last address
appearing on the Debenture Register.  The forwarding of such check or
wire transfer shall constitute a payment of outstanding principal hereunder and
shall satisfy and discharge the liability for principal on this Debenture to the
extent of the sum represented by such check or wire
transfer.  Interest shall be payable in Common Stock (as defined
below) pursuant to paragraph 4(b) herein.

    

    This Debenture is subject to the
following additional provisions:

    

    1.           This
Debenture is issuable or assignable to a Holder in denominations of Five
Thousand Dollars (US$5,000) and integral multiples thereof.  This
Debenture is exchangeable for an equal aggregate principal amount of Debentures
of different authorized denominations, as requested by the Holders surrendering
the same, but not less than U.S. $5,000.  No service charge will be
made for such registration or transfer or exchange, except that Holder shall pay
any tax or other governmental charges payable in connection
therewith.

    

    2.           The
Company shall be entitled to withhold from all payments any amounts required to
be withheld under applicable laws.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.           This
Debenture may be transferred or exchanged only in compliance with the Securities
Act of 1933, as amended ("Act") and applicable
state securities laws and only to an Accredited Investor who resides in
Wisconsin.  Any attempted transfer to a non-qualifying party shall be
treated by the Company as void.  Prior to due presentment for transfer
of this Debenture, the Company and any agent of the Company may treat the person
in whose name this Debenture is duly registered on the Company's Debenture
Register as the owner hereof for all other purposes, whether or not this
Debenture be overdue, and neither the Company nor any such agent shall be
affected or bound by notice to the contrary.  Any Holder of this
Debenture electing to exercise the right of conversion set forth in Section 4(a)
hereof, in addition to the requirements set forth in Section 4(a), and any
prospective transferee of this Debenture, are also required to give the Company
written confirmation that this Debenture is being converted ("Notice of
Conversion") in the form annexed hereto as Exhibit I. The date
of receipt (including receipt by telecopy) of such Notice of Conversion shall be
the Conversion Date.

    

    4.           (a)           The
Holder of this Debenture is entitled, at its option, at any time following
delivery of this Debenture, to convert all or any
amount over $100 of the principal face amount of this Debenture then outstanding
into shares of the Company's common stock (the "Common Stock")
without restrictive legend of any nature, at a conversion price ("Conversion Price")
for each share of Common Stock equal to 60% of the lowest closing bid price of
the Common Stock as reported on the National Quotations Bureau Pink Sheets on
which the Company’s shares are traded or any exchange upon which the Common
Stock may be traded in the future ("Exchange") for (i)
any of the three trading days prior to the day upon which a Notice of Conversion
is received by the Company, provided such Notice of Conversion is delivered by
fax to the Company between the hours of 4 P.M. Eastern Standard or Daylight
Savings Time and 7 P.M. Eastern Standard or Daylight Savings Time, or (ii) the
trading day on which a Notice of Conversion is received by the Company provided
such Notice of Conversion is delivered by fax to the Company between the hours
of 4 P.M. Eastern Standard or Daylight Savings Time and 7 P.M. Eastern Standard
or Daylight Savings Time.  If the number of resultant shares of Common
Stock would as a matter of law or pursuant to regulatory authority require the
Company to seek shareholder approval of such issuance, the Company shall, as
soon as practicable, take the necessary steps to seek such
approval.  Such conversion shall be effectuated by the Company
delivering the shares of Common Stock to the Holder within 3 business days of
receipt by the Company of the Notice of Conversion.  Once the Holder
has received such shares of Common Stock, the Holder shall surrender this
Debentures to the Company, executed by the Holder evidencing such Holder's
intention to convert this Debenture or a specified portion hereof, and
accompanied by proper assignment hereof in blank.  Accrued but unpaid
interest shall be subject to conversion.  No fractional shares or
scrip representing fractions of shares will be issued on conversion, but the
number of shares issuable shall be rounded to the nearest whole
share.

    

    (b)         Interest
on any unpaid principal balance of this Debenture shall be paid at the rate of
8% per annum.  Interest shall be paid by the Company in Common Stock
("Interest Shares").  The Holder may, at any time, send in a Notice of
Conversion to the Company for Interest Shares based on the formula provided in
Section 4(a) above.  The dollar amount converted into Interest Shares
shall be all or a portion of the accrued interest calculated on the unpaid
principal balance of this Debenture to the date of such
notice.  Interest Shares shall be issued under the exemption from
registration provided by Rule 504 of Regulation D.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c)         At
any time the Company shall have the option to redeem this Debenture and pay to
the Holder 150% of the unpaid principal amount of this Debenture, in full. The
Company shall give the Holder 5 days written notice and the Holder during such 5
days shall have the option to convert this Debenture or any part thereof into
shares of Common Stock at the Conversion Price set forth in paragraph 4(a) of
this Debenture.

    

    (d)         Upon
(i) a transfer of all or substantially all of the assets of the Company to any
person in a single transaction or series of related transactions, (ii) a
reclassification, capital reorganization or other change or exchange of
outstanding shares of the Common Stock, or (iii) any consolidation or merger of
the Company with or into another person or entity in which the Company is not
the surviving entity (other than a merger which is effected solely to change the
jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale
Event"), then, in each case, the Company shall, upon request of the Holder,
redeem this Debenture in cash for 150% of the principal amount, plus accrued but
unpaid interest through the date of redemption, or at the election of the
Holder, such Holder may convert the unpaid principal amount of this Debenture
(together with the amount of accrued but unpaid interest) into shares of Common
Stock immediately prior to such Sale Event at the Conversion Price.

    

    (e)         In
case of any Sale Event in connection with which this Debenture is not redeemed
or converted, the Company shall cause effective provision to be made so that the
Holder of this Debenture shall have the right thereafter, by converting this
Debenture, to purchase or convert this Debenture into the kind and number of
shares of stock or other securities or property (including cash) receivable upon
such reclassification, capital reorganization or other change, consolidation or
merger by a holder of the number of shares of Common Stock that could have been
purchased upon exercise of the Debentures and at the same Conversion Price, as
defined in this Debenture, immediately prior to such Sale Event. The foregoing
provisions shall similarly apply to successive Sale Events. If the consideration
received by the holders of Common Stock is other than cash, the value shall be
as determined by the Board of Directors of the Company or successor person or
entity acting in good faith.

    

    5.           No
provision of this Debenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, and interest on,
this Debenture at the time, place, and rate, and in the form, herein
prescribed.

    

    6.           The
Company hereby expressly waives demand and presentment for payment, notice of
non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    7.           The
Company agrees to pay all costs and expenses, including reasonable attorneys'
fees, which may be incurred by the Holder in collecting any amount due under
this Debenture.

    

    8.           If
one or more of the following described "Events of Default" shall occur and
continue for 30 days, unless a different time frame is noted below:

    

    (a)         The
Company shall default in the payment of principal or interest on this Debenture
or any other debenture issued pursuant to the Sale Agreement; or

    

    (b)         Any
of the representations or warranties made by the Company herein, in the Sale
Agreement, or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Company in connection
with the execution and delivery of this Debenture or the Sale Agreement shall be
false or misleading in any material respect at the time made or the Company
shall violate any covenants in the Sale Agreement including but not limited to
Section 5(b) or 10; or

    

    (c)         The
Company shall fail to perform or observe, in any material respect, any other
covenant, term, provision, condition, agreement or obligation of the Company
under this Debenture or the Sale Agreement  and such failure shall
continue uncured for a period of thirty (30) days after notice from the Holder
of such failure; or

    

    (d)         The
Company shall (1) become insolvent; (2) admit in writing its inability to pay
its debts generally as they mature; (3) make an assignment for the benefit of
creditors or commence proceedings for its dissolution; (4) apply for or consent
to the appointment of a trustee, liquidator or receiver for its or for a
substantial part of its property or business; (5) file a petition
for  bankruptcy relief, consent to the filing of such petition or have
filed against it an involuntary petition for bankruptcy relief, all under
federal or state laws as applicable; or

    

    (e)         A
trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment; or

    

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

     

    (g)         One
or more money judgments, writs or warrants of attachment, or similar process, in
excess of One Hundred Thousand Dollars ($100,000) in the aggregate, shall be
entered or filed against the Company or any of its properties or other assets
and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen
(15) days or in any event later than five (5) days prior to the date of any
proposed sale thereunder; or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (h)         Bankruptcy,
reorganization, insolvency or liquidation proceedings, or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted voluntarily by or involuntarily against the Company; or

    

    (i)          If
listed, the Company shall have its Common Stock delisted from an Exchange or, if
the Common Stock trades on an Exchange, then trading in the Common Stock shall
be suspended for more than 10 consecutive days; or

    

    (j)          The
Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4
herein without restrictive legend within 5 business days of its receipt of a
Notice of Conversion.

    

    Then, or
at any time thereafter, unless cured, and in each and every such case, unless
such Event of Default shall have been waived in writing by the Holder (which
waiver shall not be deemed to be a waiver of any subsequent default) at the
option of the Holder and in the Holder's sole discretion, the Holder may
consider this Debenture immediately due and payable, without presentment,
demand, protest or (further) notice of any kind (other than notice of
acceleration), all of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder's rights and remedies provided herein or any other
rights or remedies afforded by law.  Upon an Event of Default,
interest shall be accrue at a default interest rate of 24% per annum or, if such
rate is usurious or not permitted by current law, then at the highest rate of
interest permitted by law.

    

    9.           This
Debenture represents a prioritized obligation of the
Company.  However, no recourse shall be had for the payment of the
principal of, or the interest on, this Debenture, or for any claim based hereon,
or otherwise in respect hereof, against any incorporator, shareholder, officer
or director, as such, past, present or future, of the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the
issuance hereof, expressly waived and released.

    

    10.         In
case any provision of this Debenture is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is
enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Debenture will not in any way be affected or
impaired thereby.

    

    11.         This
Debenture and the agreements referred to in this Debenture constitute the full
and entire understanding and agreement between the Company and the Holder with
respect to the subject matter hereof.  Neither this Debenture nor any
term hereof may be amended, waived, discharged or terminated other than by a
written instrument signed by the Company and the Holder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.         This
Debenture shall be governed by and construed in accordance with the laws of
Wisconsin applicable to contracts made and wholly to be performed within the
State of Wisconsin and shall be binding upon the successors and assigns of each
party hereto.  The Holder and the Company hereby mutually waive trial
by jury and consent to exclusive jurisdiction and venue in the courts of the
State of Wisconsin.  This Agreement may be executed in counterparts,
and the facsimile transmission of an executed counterpart to this Agreement
shall be effective as an original.

    

    {REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK}

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Debenture to be duly executed by an officer thereunto duly
authorized.

    

    Dated:
March 18, 2008

    

    
      
        
          
            	 
      	
                    AMERICAN
      SCIENTIFIC RESOURCES, INC.

                  
	 
      	 
      
	 
      	
                    By: 

                  	
                    

                  
	 
      	
                    Name:  Christopher
      F. Tirotta, MD, MBA

                  
	 
      	
                    Title:  CEO/Chairman
      of the Board

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    NOTICE OF
CONVERSION

    

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

    

    The undersigned hereby irrevocably
elects to convert $___________ of the above Debenture No. A -____ into Shares of
Common Stock of American Scientific Resources, Inc.  (“Shares”)
according to the conditions set forth in such Debenture, as of the date written
below.

    

    If Shares are to be issued in the name
of a person other than the undersigned, the undersigned will pay all transfer
and other taxes and charges payable with respect thereto.

    

    Date of
Conversion: _____________________________________________________

    Applicable
Conversion Price: ______________________________________________

    Signature:
_____________________________________________________________

    [Print Name of Holder and Title of
Signer]

    Address:
______________________________________________________________

     ______________________________________________________________

    
    

     

    SSN or
EIN: ________________________________

    Shares
are to be registered in the following name:
___________________________________________________

      

    Name: ________________________________________________________________

    Address:
______________________________________________________________ 

    Tel:
____________________________________

    Fax: ___________________________________

    SSN or
EIN: ____________________________

    

    Shares
are to be sent or delivered to the following account:

    

    Account
Name: __________________________________________________________

    Address:
_______________________________________________________________

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