Document:

GUARANTOR
      SECURITY AGREEMENT

     

    THIS
      GUARANTOR SECURITY AGREEMENT (this “Security
      Agreement”)
      is
      made as of September 28, 2007, by and between Patient
      Payment Solutions, Inc., a corporation, organized under the laws of the State
      of
      Florida
      (“Debtor”),
      and
      VICIS CAPITAL MASTER FUND (“Vicis”),
      a
      series
      of the Vicis Capital Master Trust, a trust formed under the laws of the Cayman
      Islands.

     

    RECITALS

     

    A. Debtor
      is
      either a direct or an indirect wholly-owned subsidiary of MDWERKS, INC., a
      Delaware corporation (“Issuer”).

     

    B. Pursuant
      to a Securities Purchase Agreement of even date herewith by and between Vicis
      and Issuer (as amended or modified from time to time, the “Securities
      Purchase Agreement”),
      Issuer has issued to Vicis and Vicis has purchased from Issuer $2,000,000 in
      shares of the Issuer’s Series B Convertible Preferred Stock, par value $.001 per
      share (the “Preferred
      Shares”).

     

    C. It
      is a
      condition precedent to Vicis’s acquisition of the Preferred Shares that the
      Debtor execute and deliver to Vicis a security agreement in the form hereof
      to
      secure its obligations,
      covenants and agreements contained in its Guaranty, dated of even date herewith,
      in favor of Vicis.
      This is
      the Guarantor Security Agreement referred to in the Securities Purchase
      Agreement.

     

    AGREEMENTS

     

    In
      consideration of the Recitals and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, Debtor hereby agrees
      with Vicis as follows:

     

    ARTICLE
      I 

    DEFINITIONS

     

    Capitalized
      terms used herein but not defined herein shall have the respective meanings
      given to them in the Securities Purchase Agreement. Terms not otherwise defined
      herein and defined in the UCC shall have, unless the context otherwise requires,
      the meanings set forth in the UCC as in effect on the date hereof (except that
      the term “document” shall only have the meaning set forth in the UCC for
      purposes of clause (d) of the definition of Collateral). When used in this
      Security Agreement, the following terms shall have the following
      meanings:

     

    Accounts.
      “Accounts” shall mean all accounts, including without limitation all rights to
      payment for goods sold or services rendered that are not evidenced by
      instruments or chattel paper, whether or not earned by performance, and any
      associated rights thereto.

     

    Collateral.
      “Collateral” shall mean, subject to any limitations or qualifications set forth
      in Section 2.1 hereof, all personal properties and assets of Debtor, wherever
      located, whether tangible or intangible, and whether now owned or hereafter
      acquired or arising, including without limitation:

     

    (a)  all
      Inventory and documents relating to Inventory;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  all
      Accounts and documents relating to Accounts;

     

    (c)  all
      equipment, fixtures and other goods, including without limitation machinery,
      furniture and trade fixtures;

     

    (d)  all
      general intangibles (including without limitation payment intangibles, software,
      customer lists, sales records and other business records, contract rights,
      causes of action, and licenses, permits, franchises, patents, copyrights,
      trademarks, and goodwill of the business in which the trademark is used, trade
      names, or rights to any of the foregoing), promissory notes, contract rights,
      chattel paper, documents, letter-of-credit rights and instruments;

     

    (e)  [intentionally
      omitted];

     

    (f)  (i)
      all
      deposit accounts and (ii) all cash and cash equivalents deposited with or
      delivered to Vicis from time to time and pledged as additional security for
      the
      Obligations;

     

    (g)  all
      investment property;

     

    (h)  all
      commercial tort claims; and

     

    (i)  all
      additions and accessions to, all spare and repair parts, special tools,
      equipment and replacements for, and all supporting obligations, proceeds and
      products of, any and all of the foregoing assets described in Sections (a)
      through (h), inclusive, above.

     

    Notwithstanding
      the foregoing, “Collateral” shall not include (i) any general intangibles or
      other rights arising under any contracts, instruments, licenses or other
      documents to the extent that the grant of a lien or the Security Interest
      therein would (A) result in a breach of the terms of, or constitute a default
      under, such contract, instrument, license, agreement or other document (other
      than to the extent that any such term
      would be
      rendered ineffective pursuant to Section 9-406, 9-407 or 9-408 of the UCC or
      any
      successor provision of the UCC of any relevant jurisdiction or other applicable
      law) or (B) give any other party to such contract, instrument, license or other
      document the right to terminate its obligations thereunder pursuant to a valid
      and enforceable provision (including without limitation in connection with
      the
      operation of Section 9-406, 9-407 or 9-408 of the UCC or any other applicable
      law), (ii) any personal property (including motor vehicles) in respect of which
      perfection of a lien or security interest is not either (A) governed by the
      UCC
      or (B) accomplished by appropriate evidence of the lien being recorded in the
      United States Copyright Office or the United States Patent and Trademark Office,
      or (iii) any property subject to any pledge agreement.

     

    Event
      of Default.“Event
      of
      Default” shall have the meaning specified in the Securities Purchase
      Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Inventory.
      “Inventory” shall mean all inventory, including without limitation all goods
      held for sale, lease or demonstration or to be furnished under contracts of
      service, goods leased to others, trade-ins and repossessions, raw materials,
      work in process and materials used or consumed in Debtor’s business, including,
      without limitation, goods in transit, wheresoever located, whether now owned
      or
      hereafter acquired by Debtor, and shall include such property the sale or other
      disposition of which has given rise to Accounts and which has been returned
      to
      or repossessed or stopped in transit by Debtor.

     

    Obligations.
      “Obligations” shall mean all debts, liabilities, obligations, covenants and
      agreements of Debtor contained in the Guaranty, dated of even date herewith,
      by
      Debtor in favor of Vicis.

     

    Person.
      “Person” shall mean and include an individual, partnership, corporation, trust,
      unincorporated association and any unit, department or agency of
      government.

     

    Security
      Agreement.
      “Security Agreement” shall mean this Guarantor Security Agreement, together with
      the schedules attached hereto, as the same may be amended, supplemented or
      otherwise modified from time to time in accordance with the terms
      hereof.

     

    Security
      Interest.
      “Security Interest” shall mean the security interest of Vicis in the Collateral
      granted by Debtor pursuant to this Security Agreement.

     

    UCC.
      “UCC”
      shall mean the Uniform Commercial Code as adopted in Florida and in effect
      from
      time to time.

     

    ARTICLE
      II  

    THE
      SECURITY INTEREST; REPRESENTATIONS AND WARRANTIES

     

    2.1  The
      Security Interest.
      

     

    (a) To
      secure
      the full and complete payment and performance when due (whether at stated
      maturity, by acceleration, or otherwise) of each of the Obligations, Debtor
      hereby grants to Vicis, subject to Section 2.1(b) hereof, a second-priority,
      subordinated security interest in all of Debtor’s right, title and interest in
      and to the Collateral.

     

    (b) Notwithstanding
      Section 2.1(a) above, Vicis hereby agrees that, in the event that Debtor and/or
      any of its subsidiaries should incur any Permitted Senior Indebtedness
in
      accordance with the terms of the Securities Purchase Agreement,
      Vicis,
      at the option or discretion of the lender extending the financing facility
      underlying the Permitted Senior Indebtedness, promptly will release or expressly
      subordinate to such lender Vicis’ Security Interest, if any, in Accounts,
      security interests in client assets, loan documents, reserve accounts and the
      proceeds thereof, in each case to the extent that any of the foregoing secures
      Debtor’s or any of its subsidiaries’ obligations under any Permitted Senior
      Indebtedness.

     

    2.2  Representations
      and Warranties.
      Debtor
      hereby represents and warrants to Vicis that:

     

    (a)  The
      records of Debtor with respect to the Collateral are presently located only
      at
      the address(es) listed on Schedule
      1
      attached
      to this Security Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Collateral is presently located only at the location(s) listed on Schedule 1
      attached
      to this Security Agreement.

     

    (c)  The
      chief
      executive office and chief place(s) of business of Debtor are presently located
      at the address(es) listed on Schedule
      1
      to this
      Security Agreement.

     

    (d)  Debtor
      is
      a Florida corporation and its exact legal name is set forth in the definition
      of
“Debtor” in the introductory paragraph of this Security Agreement. The
      organization identification number of Debtor is listed on Schedule
      1
      to this
      Security Agreement.

     

    (e)  All
      of
      Debtor’s present patents and trademarks, if any, including those that have been
      registered with, or for which an application for registration has been filed
      in,
      the United States Patent and Trademark Office are listed on Schedule
      2
      attached
      to this Security Agreement. All of Debtor’s present copyrights registered with,
      or for which an application for registration has been filed in, the United
      States Copyright Office or any similar office or agency of any state or any
      other country are listed on Schedule
      2
      attached
      to this Security Agreement.

     

    (f)  Debtor
      has good title to, or valid leasehold interest in, all of the Collateral, and
      there are no Liens on any of the Collateral except Permitted Liens.

     

    2.3  Authorization
      to File Financing Statements.
      Debtor
      hereby irrevocably
      authorizes Vicis at any time and from time to time to file in any UCC
      jurisdiction any initial financing statements and amendments thereto that (a)
      indicate the Collateral (i) as all assets of Debtor or words of similar effect,
      regardless of whether any particular asset comprised in the Collateral falls
      within the scope of Article 9 of the UCC or such other jurisdiction, or (ii)
      as
      being of an equal or lesser scope or with greater detail, and (b) contain any
      other information required by part 5 of Article 9 of the UCC for the sufficiency
      of filing office acceptance of any financing statement or amendment, including
      whether Debtor is an organization, the type of organization and any state or
      federal organization identification number issued to Debtor. Debtor agrees
      to
      furnish any such information to Vicis promptly upon written request.

     

    ARTICLE
      III
AGREEMENTS
      OF DEBTOR

     

    From
      and
      after the date of this Security Agreement, and until all of the Obligations
      are
      paid in full, Debtor shall:

     

    3.1  Sale
      of Collateral.
      Not
      sell, lease, transfer or otherwise dispose of Collateral or any interest
      therein, except as provided for in the Securities Purchase Agreement and for
      sales of Inventory in the ordinary course of business.

     

    3.2  Maintenance
      of Security Interest.

     

    (a)  At
      the
      expense of Debtor, defend the Security Interest against any and all claims
      of
      any Person adverse to Vicis (but only to the extent the claim of such adverse
      Person is subordinate or junior to the interest of Vicis) and take such action
      and execute such financing statements and other documents as Vicis may from
      time
      to time reasonably request in writing to maintain the perfected status of the
      Security Interest. Debtor shall not further encumber or grant a security
      interest in any of the Collateral except as provided for in the Securities
      Purchase Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)  Debtor
      further agrees to take any other commercially reasonable action reasonably
      requested in writing by Vicis to ensure the attachment, perfection and second
      priority of, and the ability of Vicis to enforce its security interest in any
      and all of the Collateral including, without limitation, (i) executing,
      delivering and, where appropriate, filing financing statements and amendments
      relating thereto under the UCC, to the extent, if any, that Debtor’s signature
      thereon is required therefor, (ii) complying with any provision of any statute,
      regulation or treaty of the United States as to any Collateral if compliance
      with such provision is a condition to attachment, perfection or priority of,
      or
      ability of Vicis to enforce, its security interest in such Collateral, (iii)
      taking all actions required by any earlier versions of the UCC (to the extent
      applicable) or by other law, as applicable in any relevant UCC jurisdiction,
      or
      by other law as applicable in any foreign jurisdiction, and (iv) obtaining
      waivers from landlords where any material portion of the tangible Collateral
      is
      located in form and substance reasonably satisfactory to Vicis.

     

    3.3  Locations.
      Give
      Vicis at least thirty (30) days prior written notice of Debtor’s intention to
      relocate the tangible Collateral (other than Inventory in transit) or any of
      the
      records relating to the Collateral from the locations listed on Schedule
      1
      attached
      to this Security Agreement, in which event Schedule
      1
      shall be
      deemed amended to include the new location. Any additional filings or refilings
      requested in writing by Vicis as a result of any such relocation in order to
      maintain the Security Interest in such Collateral shall be at Debtor’s
      expense.

     

    3.4  Insurance.
      Maintain
      insurance (including, without limitation, commercial general liability and
      property insurance) with respect to the Collateral consisting of tangible
      personal property in such amounts, against such risks, in such form and with
      responsible and reputable insurance companies or associations as is required
      by
      any governmental authority having jurisdiction with respect thereto or as is
      carried generally in accordance with sound business practice by companies in
      similar businesses similarly situated. Debtor will obtain lender’s loss payable
      endorsements on applicable insurance policies in favor of Vicis and will provide
      to Vicis certificates of such insurance or copies thereof. Debtor shall use
      commercially reasonable efforts to cause each insurer to agree, by endorsement
      on the policy or policies or certificates of insurance issued by it or by
      independent instrument furnished to Vicis, that such insurer will give thirty
      (30) days written notice to Vicis before such policy will be altered or
      canceled. No settlement of any insurance claim shall be made without Vicis’s
      prior consent, which consent will not be unreasonably withheld, conditioned
      or
      delayed. In the event of any insured loss, Debtor shall promptly notify Vicis
      thereof in writing, and, after an Event of Default shall have occurred and
      be
      continuing, Debtor hereby authorizes and directs any insurer concerned to make
      payment of such loss directly to Vicis as its interest may appear. Vicis is
      authorized, in the name and on behalf of Debtor, to make proof of loss and
      to
      adjust, compromise and collect, in such manner and amounts as it reasonably
      shall determine, all claims under all policies; and Debtor agrees to sign,
      on
      written demand of Vicis, all receipts, vouchers, releases and other instruments
      which may be necessary in aid of this authorization. After an Event of Default
      shall have occurred and be continuing, the proceeds of any insurance from loss,
      theft, or damage to the Collateral shall be held in a segregated account
      established by Vicis and disbursed and applied at the discretion of Vicis,
      either in reduction of the Obligations or applied toward the repair, restoration
      or replacement of the Collateral.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.5  Name;
      Legal Status.
      (a)
      Without providing at least 30 days prior written notice to Vicis, Debtor will
      not change its name, its place of business or, if more than one, chief executive
      office, or its mailing address or organizational identification number if it
      has
      one, (b) if Debtor does not have an organizational identification number and
      later obtains one, Debtor shall forthwith notify Vicis of such organizational
      identification number, and (c) Debtor will not change its type of organization
      or jurisdiction of organization.

     

    ARTICLE
      IV

    RIGHTS
      AND REMEDIES

     

    4.1  Right
      to Cure.
      In
      case
      of failure by Debtor after receipt of written notice from Vicis to procure
      or
      maintain insurance, or to pay any fees, assessments, charges or taxes (subject
      to Debtor’s right to contest in good faith, such assessments, charges or taxes)
      arising with respect to the Collateral, Vicis shall have the right, but shall
      not be obligated, to effect such insurance or pay such fees, assessments,
      charges or taxes, as the case may be, and, in that event, the cost thereof
      shall
      be payable by Debtor to Vicis immediately upon demand, together with interest
      at
      an annual rate of 8% from the date of disbursement by Vicis to the date of
      payment by Debtor. If Vicis effects any insurance on behalf of Debtor, Debtor
      thereafter may cancel such insurance so effected after providing Vicis with
      evidence that Debtor has obtained insurance as required by this Security
      Agreement.

     

    4.2  Rights
      of Parties.
      Upon
      the occurrence and during the continuance of an Event of Default, in addition
      to
      all the rights and remedies provided in the Transaction Documents or in
      Article 9 of the UCC and any other applicable law, Vicis may (but is under
      no obligation so to do):

     

    (a)  require
      Debtor to assemble the Collateral at a place designated by Vicis, which is
      reasonably convenient to the parties; and

     

    (b)  take
      physical possession of Inventory and other tangible Collateral and of Debtor’s
      records pertaining to all Collateral that are necessary to properly administer
      and control the Collateral or the handling and collection of Collateral, and
      sell, lease or otherwise dispose of the Collateral in a commercially reasonable
      manner in whole or in part, at public or private sale, on or off the premises
      of
      Debtor; and

     

    (c)  collect
      any and all money due or to become due and enforce in Debtor’s name all rights
      with respect to the Collateral; and

     

    (d)  settle,
      adjust or compromise any dispute with respect to any Account; and

     

    (e)  receive
      and open mail addressed to Debtor; and

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f)  on
      behalf
      of Debtor, endorse checks, notes, drafts, money orders, instruments or other
      evidences of payment.

     

    4.3  Power
      of Attorney.
      Upon
      the occurrence and during the continuance of an Event of Default, Debtor does
      hereby constitute and appoint Vicis as Debtor’s true and lawful attorney with
      full power of substitution for Debtor in Debtor’s name, place and stead for the
      purposes of performing any obligation of Debtor under this Security Agreement
      and taking any action and executing any instrument which Vicis may deem
      necessary or advisable to perform any obligation of Debtor under this Security
      Agreement, which appointment is irrevocable and coupled with an interest, and
      shall not terminate until the Obligations are paid in full.

     

    4.4  Right
      to Collect Accounts.
      Upon
      the occurrence and during the continuance of an Event of Default, and without
      limiting Debtor’s obligations under the Transaction Documents: (a) Debtor
      authorizes Vicis to notify any and all debtors on the Accounts to make payment
      directly to Vicis (or to such place as Vicis may direct); (b) Debtor agrees,
      on
      written notice from Vicis, to deliver to Vicis promptly after receipt thereof,
      in the form in which received (together with all necessary endorsements), all
      payments received by Debtor on account of any Account; and (c) Vicis may, at
      its
      option, apply all such payments against the Obligations or remit all or part
      of
      such payments to Debtor.

     

    4.5  Reasonable
      Notice.  Written
      notice, when required by law, sent in accordance with the provisions of Section
      12.6 of the Securities Purchase Agreement and given at least ten (10) calendar
      days (counting the day of sending) before the date of a proposed disposition
      of
      the Collateral shall be reasonable notice.

     

    4.6  Limitation
      on Duties Regarding Collateral.  The
      sole duty of Vicis with respect to the custody, safekeeping and physical
      preservation of the Collateral in its possession, under Section 9-207 of the
      UCC
      or otherwise, shall be to deal with it in the same manner as Vicis deals with
      similar property for its own account. Neither Vicis nor any of its directors,
      officers, employees or agents, shall be liable for failure to demand, collect
      or
      realize upon any of the Collateral or for any delay in doing so or shall be
      under any obligation to sell or otherwise dispose of any Collateral upon the
      request of Debtor or otherwise.

     

    4.7  Lock
      Box; Collateral Account.
      This
      Section 4.7 shall be effective only upon the occurrence and during the
      continuance of an Event of Default. If Vicis so requests in writing, Debtor
      will
      direct each of its debtors on the Accounts to make payments due under the
      relevant Account or chattel paper directly to a special lock box to be under
      the
      control of Vicis. Debtor hereby authorizes and directs Vicis to deposit into
      a
      special collateral account to be established and maintained by Vicis all checks,
      drafts and cash payments received in said lock box. All deposits in said
      collateral account shall constitute proceeds of Collateral and shall not
      constitute payment of any Obligation until so applied. At its option, Vicis
      may,
      at any time, apply finally collected funds on deposit in said collateral account
      to the payment of the Obligations, in the order of application set forth in
      Section
      4.8,
      or
      permit Debtor to withdraw all or any part of the balance on deposit in said
      collateral account. If a collateral account is so established, Debtor agrees
      that it will promptly deliver to Vicis, for deposit into said collateral
      account, all payments on Accounts and chattel paper received by it. All such
      payments shall be delivered to Vicis in the form received (except for Debtor’s
      endorsement where necessary). Until so deposited, all payments on Accounts
      and
      chattel paper received by Debtor shall be held in trust by Debtor for and as
      the
      property of Vicis and shall not be commingled with any funds or property of
      Debtor.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    4.8  Application
      of Proceeds.
      Vicis
      shall apply the proceeds resulting from any sale or disposition of the
      Collateral in the following order:

     

    (a)  to
      the
      reasonable costs of any sale or other disposition;

     

    (b)  to
      the
      reasonable expenses incurred by Vicis in connection with any sale or other
      disposition, including attorneys’ fees;

     

    (c)  to
      the
      payment of the Obligations then due and owing in any order selected by Vicis
      in
      a commercially reasonable manner; and

     

    (d)  to
      Debtor.

     

    4.9  Other
      Remedies.  No
      remedy herein conferred upon Vicis is intended to be exclusive of any other
      remedy, and each and every such remedy shall be cumulative and shall be in
      addition to every other remedy given under this Security Agreement and the
      Transaction Documents now or hereafter existing at law or in equity or by
      statute or otherwise. No failure or delay on the part of Vicis in exercising
      any
      right or remedy hereunder shall operate as a waiver thereof nor shall any single
      or partial exercise of any right hereunder preclude other or further exercise
      thereof or the exercise of any other right or remedy.

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1  Expenses
      and Attorneys’ Fees.
      Debtor
      shall pay all fees and expenses incurred by Vicis, including the reasonable
      fees
      of counsel, in connection with the preparation, administration and amendment
      of
      this Security Agreement and the protection, administration and enforcement
      of
      the rights of Vicis under this Security Agreement or with respect to the
      Collateral, including without limitation the protection and enforcement of
      such
      rights in any bankruptcy.

     

    5.2  Setoff.
      Debtor
      agrees that, upon the occurrence and during the continuance of an Event of
      Default, Vicis shall have all rights of setoff and bankers’ lien provided by
      applicable law.

     

    5.3  Assignability;
      Successors.
      Debtor’s rights and liabilities under this Security Agreement are not assignable
      or delegable, in whole or in part, without the prior written consent of Vicis.
      The provisions of this Security Agreement shall inure to the benefit of and
      be
      binding upon the successors and assigns of the parties.

     

    5.4  Survival.
      All
      agreements, representations and warranties made in this Security Agreement
      or in
      any document delivered pursuant to this Security Agreement shall survive the
      execution and delivery of this Security Agreement, and the delivery of any
      such
      document.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    5.5  Governing
      Law.
      This
      Security Agreement shall be governed by, and construed and interpreted in
      accordance with, the laws of the State of New York applicable to contracts
      made
      and wholly performed within such state.

     

    5.6  Execution;
      Headings.
      This
      Security Agreement may be executed in two or more counterparts, all of which
      when taken together shall be considered one and the same agreement and shall
      become effective when counterparts have been signed by each party and delivered
      to the other party, it being understood that both parties need not sign the
      same
      counterpart. In the event that any signature is delivered by facsimile
      transmission, such signature shall create a valid and binding obligation of
      the
      party executing (or on whose behalf such signature is executed) with the same
      force and effect as if such facsimile signature page were an original thereof.
      The article and section headings in this Security Agreement are inserted for
      convenience of reference only and shall not constitute a part
      hereof.

     

    5.7  Notices.
      All
      communications or notices required or permitted by this Security Agreement
      shall
      be given to Debtor (to be delivered care of Issuer) in accordance with Section
      12.6 of the Securities Purchase Agreement.

     

    5.8  Amendment.
      No
      amendment of this Security Agreement shall be effective unless in writing and
      signed by Debtor and Vicis.

     

    5.9  Severability.
      Any
      provision of this Security Agreement which is prohibited or unenforceable in
      any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions of this Security Agreement in such jurisdiction or affecting the
      validity or enforceability of any provision in any other
      jurisdiction.

     

    5.10  WAIVER
      OF RIGHT TO JURY TRIAL.
      EACH
      OF
      THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
      ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF ANY
      CONTROVERSY THAT MAY ARISE UNDER THIS SECURITY AGREEMENT.

     

    5.11  Submission
      to Jurisdiction.
      

     

    (a) EACH
      OF
      THE PARTIES TO THIS SECURITY AGREEMENT HEREBY IRREVOCABLY AND UNCONDITIONALLY
      SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED
      THE STATE AND COUNTY OF NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING
      OUT OF OR RELATING TO THIS SECURITY AGREEMENT. EACH OF THE PARTIES TO THIS
      SECURITY AGREEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
      ANY OBJECTION THAT SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE
      VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS AND ANY CLAIM THAT
      ANY
      SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS HAS BEEN BROUGHT IN AN INCONVENIENT
      FORUM.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) EACH
      OF
      THE PARTIES TO THIS SECURITY AGREEMENT HEREBY CONSENTS TO SERVICE OF PROCESS
      BY
      NOTICE IN THE MANNER SPECIFIED IN SECTION 12.6 OF THE SECURITIES PURCHASE
      AGREEMENT AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
      OBJECTION SUCH PARTY MAY NOW OR HEREAFTER HAVE TO SERVICE OF PROCESS IN SUCH
      MANNER. DEBTOR AGREES THAT SERVICE OF PROCESS MAY BE DELIVERED CARE OF
      ISSUER.

     

    (signature
      page follows)

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Guarantor Security Agreement has been executed as of
      the
      day and year first above written.

     

    
      	 	 	 
	 	PATIENT
              PAYMENT SOLUTIONS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Howard
              B.
              Katz
	 	
              
Name:
              Howard B. Katz
	 	Title:
              Chief Executive Officer

    

     

    
      	 	 	 
	 	
              VICIS
                CAPITAL
                MASTER FUND
By:
                Vicis Capital LLC

            
	 
 	 
 	 
 
	
            	By:  	/s/ Keith
              W.
              Hughes
	 	
              
Name:
              Keith W. Hughes
	 	Title:
              Chief Financial Officer

    

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1 TO SECURITY AGREEMENT

     

    Locations
      of Collateral

     

    Organizational
      ID:

    

    Patient
      Payment Solutions, Inc. (Florida Corporation)

    52-2661186

    

    Address
      of Debtor’s records and chief executive office:

    

    1020
      NW
      6th
      Street

    Suite
      I

    Deerfield
      Beach, FL 33442

    

    Collateral
      Locations:

    

    1020
      NW
      6th
      Street

    Suite
      I

    Deerfield
      Beach, FL 33442

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2 TO SECURITY AGREEMENT

     

    Intellectual
      Property

     

    Organizational
      ID:

    

    Patient
      Payment Solutions, Inc.

    52-2661186

    

    Patents

    

    None

    

    Trademarks

    

    None

    

    Copyrights

    

    None

     

    
      
        
        

      

      
        13AMENDMENT,
      CONSENT AND WAIVER

    

    This
      AMENDMENT, CONSENT AND WAIVER (this “Amendment,
      Consent and Waiver”)
      is
      dated as of September 28, 2007, by and among MDWERKS, INC., a Delaware
      corporation (the “Company”),
      XENI
      FINANCIAL SERVICES, CORP., a Florida corporation (“XFS”),
      and
      GOTTBETTER CAPITAL MASTER, LTD., a Cayman Islands company (the “Consenting
      Holder”).

    

    WITNESSETH

    

    WHEREAS,
      pursuant to a Securities Purchase Agreement, dated as of October 19, 2006 (the
      “Securities
      Purchase Agreement”),
      the
      Consenting Holder purchased (i) Senior Secured Convertible Notes in the
      aggregate principal amount of $5,000,000 (the “Notes”),
      (ii)
      warrants to purchase an aggregate of 375,000 shares of the Company’s common
      stock, $.001 par value per share (the “Common
      Stock”),
      initially at an exercise price of $2.25 per share subject to adjustment (the
      “Series
      D Warrants”),
      and
      (iii) warrants to purchase an aggregate of 375,000 shares of Common Stock
      initially at an exercise price of $3.25 per share subject to adjustment (the
      “Series
      E Warrants”);

    

    WHEREAS,
      defined terms used herein but not otherwise defined herein shall have the
      respective meanings ascribed to such terms in the Securities Purchase
      Agreement;

    

    WHEREAS,
      Section 4(o) of the Securities Purchase Agreement grants the Consenting Holder
      the right of first refusal to purchase additional securities upon a Subsequent
      Placement;

    

    WHEREAS,
      Section 4(s) of the Securities Purchase Agreement requires that the Company
      obtain the Consenting Holder’s prior written consent to, among other things, the
      issuance of additional capital stock;

    

    WHEREAS,
      Section 7 of the Notes provides for adjustment of the Conversion Price (as
      defined in the Notes) upon certain issuances of Common Stock, Options or
      Convertible Securities at a price less than the Applicable Price;

    

    WHEREAS,
      Section 15(c) of the Notes contains a negative covenant regarding the existence
      of Liens (as defined in the Notes);

    

    WHEREAS,
      Section 15(e) of the Notes contains a negative covenant regarding the issuance
      or sale of certain equity securities of the Company;

    

    WHEREAS,
      Section 2(a) of the Warrants provides for adjustment of the exercise price
      and
      number of Warrant Shares (as defined in the Warrants) upon certain issuances
      of
      Common Stock, Options or Convertible Securities at a price less than the
      Applicable Price;

    

    WHEREAS,
      on the date hereof the Company proposes to
      sell
      and issue
      to
      Vicis Capital Master Fund (“Vicis”)
      the
      following securities (collectively, the “Bridge
      Securities”;
      such
      sale and issuance, the “Bridge
      Issuance”):
      (i) 200 shares (the “Preferred
      Shares”)
      of the
      Company’s Series B Convertible Preferred Stock, par value $.001 per share (the
“Series
      B Preferred Stock”);
      (ii) warrants to purchase an aggregate of 1,500,000 shares of Common Stock
      initially at an exercise price of $2.25 per share (the “$2.25
      Warrants”);
      and
      (c) warrants to purchase an aggregate of 1,000,000 shares of Common Stock
      initially at an exercise price of $2.50 per share (the “$2.50
      Warrants”,
      and
      together with the $2.25 Warrants, the “Bridge
      Warrants”);

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    WHEREAS,
      on
      the
      date hereof the Company and each of its Subsidiaries propose to
      grant
      second-priority security interests in favor of Vicis in order to secure such
      debtors’ respective obligations in connection with the Bridge Securities and the
      Bridge Issuance, and Vicis proposes to file financing statements reflecting
      such
      security interests; 

    

    WHEREAS,
      the Consenting Holder desires to consent to the Bridge Issuance, to waive any
      rights to purchase any of the Bridge Securities or other securities as part
      of
      or in connection with the Bridge Issuance, and to waive any potential breach
      of
      any covenants that restrict the Company’s ability to issue and sell additional
      securities or that preclude the existence of any Liens in favor of Vicis, to
      the
      extent such breach results from the Bridge Issuance;

    

    WHEREAS,
      the Consenting Holder desires to amend Section 4(o) of the Securities Purchase
      Agreement to limit the number of additional securities the Consenting Holder
      can
      purchase upon certain Subsequent Placements;

    

    WHEREAS,
      Section 1 of the Note, dated October 19, 2006, in the original principal amount
      of $2,500,000 (the “October
      Note”),
      provides that the Company will commence payments of principal under such Note
      on
      October 1, 2007;

    

    WHEREAS,
      Section 1 of the Note, dated November 9, 2006, in the original principal amount
      of $2,500,000 (the “November
      Note”),
      provides that the Company will commence payments of principal under such Note
      on
      November 1, 2007;

    

    WHEREAS,
      the Company has requested that commencement of payment of principal under each
      Note be postponed until February 1, 2008, whereupon the first payment of
      principal under each Note will be due;

    

    WHEREAS,
      the Company has requested that the definition
      of “Excluded Securities”
      set
      forth in the Notes be amended to conform to the definition of such term in
      the
      Bridge Warrants;

    

    WHEREAS,
      the Consenting
      Holder desires to amend and restate each Note to reflect the postponement of
      the
      due dates for the initial payments of principal under each Note, to attach
      as a
      schedule to each Note an appropriate schedule reflecting amended Installment
      Amounts (as defined in each Note) and the proper Installment Dates (as defined
      in each Note), to amend certain definitions as a result of the foregoing
      amendments, to amend the definition
      of “Excluded Securities” so as to conform to the definition of such term in the
      Bridge Warrants and to rectify non-substantive typographical
      errors;

    

    WHEREAS,
      pursuant to a Security Agreement, dated as of October 19, 2006 (the
“Security
      Agreement”),
      the
      Company and the Company’s direct and indirect, wholly-owned subsidiaries,
      including XFS, granted in favor of the Consenting Holder a continuing security
      interest in the Collateral (as defined in the Security Agreement);

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    WHEREAS,
      the Company and XFS have requested that the Consenting Holder release its
      security interest in that portion of the Collateral comprised of Accounts
      (as
      defined in the Security Agreement) and
      documents relating to Accounts, payment intangibles, contract rights and causes
      of action, in each case to the extent granted by XFS (such partial release
      of
      Collateral, the “Partial
      Release”);

    

    WHEREAS,
      the Consenting Holder desires to provide its consent to the Partial Release,
      and
      the parties desire to amend the Security Agreement to reflect the Partial
      Release; and

    

    WHEREAS,
      in consideration for the Consenting Holder’s agreement to this Amendment,
      Consent and Waiver, the Company has agreed to issue to the Consenting Holder
      an
      additional Series D Warrant to purchase an aggregate of 500,000 shares of Common
      Stock initially at an exercise price of $2.25 per share.

    

    NOW,
      THEREFORE, in consideration of the mutual promises of the parties hereto and
      of
      the mutual benefits to be gained by the performance thereof, and for other
      good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledge, the parties hereto hereby agree as follows:

    

    1.  The
      Consenting Holder hereby consents to
      the
      Bridge
      Issuance and, irrevocably and for an unlimited duration, hereby waives (i)
      its
      right to purchase additional securities of the Company upon the Bridge Issuance,
      (ii) any potential breach of covenants that restrict the Company’s ability to
      issue and sell additional securities, to the extent such breach results from
      the
      Bridge Issuance and (iii) any potential breach of covenants that preclude the
      existence of any Liens in favor of other Persons, to the extent such breach
      results from the Liens in favor of Vicis in connection with the Bridge
      Issuance.

    

    2.  Section
      4(o)(iii)(1) of the Securities Purchase Agreement is hereby deleted
      and replaced in its entirety with the following:

    

    “(1) The
      Company shall deliver to each Buyer who still holds Notes a written notice
      (the
“Offer
      Notice”)
      of any
      proposed or intended issuance or sale or exchange (the “Offer”)
      of the
      securities being offered (the “Offered
      Securities”)
      in a
      Subsequent Placement, which Offer Notice shall (w) identify and describe the
      Offered Securities, (x) describe the price and other terms upon which such
      Offered Securities are to be issued, sold or exchanged, and the number or amount
      of the Offered Securities to be issued, sold or exchanged, (y) identify the
      persons or entities (if known) to which or with which the Offered Securities
      are
      to be offered, issued, sold or exchanged and (z) offer to issue and sell to
      or
      exchange with such Buyers on a pro
      rata,
      pari
      passu
      basis
      with Vicis Capital Master Fund (“Vicis”)
      (based
      upon Vicis’s and Buyer’s total initial subscription amounts of $2,000,000 and
      $5,000,000, respectively), collectively, up to 100% of the Offered Securities.
      The Offered Securities that may be purchased by Buyers shall be allocated among
      such Buyers (a) based on each such Buyer’s pro rata portion of the
      aggregate principal amount of Notes purchased hereunder (the “Basic
      Amount”),
      and
      (b) with respect to each such Buyer that elects to purchase its Basic Amount,
      any additional portion of the Offered Securities attributable to the Basic
      Amounts of other Buyers as such Buyer shall indicate it will purchase or acquire
      should the other Buyers subscribe for less than their Basic Amounts (the
“Undersubscription
      Amount”).”

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    3.  The
      Company acknowledges that, as a result of the Bridge Issuance, (i) the
      Conversion Price set forth in the Notes will be adjusted pursuant to, in
      accordance with and to the extent required by Section 7 of the Notes and (ii)
      the exercise price of the Series E Warrants and the number of Warrant Shares
      for
      which such warrants may be exercised will be adjusted pursuant to, in accordance
      with and to the extent required by Section 2(a) of the Warrants, such that
      the
      exercise price of the Series E Warrants will be reduced to $2.25 per share
      subject to further adjustment, and the number of Warrant Shares for which such
      warrants may be exercised will be increased to 541,666 and 2/3 shares subject
      to
      further adjustment.

    

    4.  (a)The
      Consenting Holder hereby agrees that:

    

    	(i)  	
            Section
              1 of each of the Notes shall be amended to indicate that payments of
              principal under the October Note and the November Note will
              commence
              on
              February
              1,
              2008;

          

     

    	(ii)  	
            an
              Installment Schedule in substantially the form attached hereto as
              Exhibit
              A
              will be attached to the October Note;

          

     

    	(iii)  	
            an
              Installment Schedule in substantially the form attached hereto as
              Exhibit
              B
              will be attached to the November Note;

          

     

    	(iv)  	
            the
              definition of “Excluded
              Securities” set forth in Section 28(o) of each of the Notes shall be
              deleted and replaced in its entirety with the
              following:

          

     

    “(o) “Excluded
      Securities”
means
      any Common Stock and/or Options, Warrants or other Common Stock Purchase Rights
      (and the Common Stock issuable pursuant to such Options) issued or issuable:
      (i)
      in connection with any Approved Stock Plan up to a maximum of ten percent (10%)
      of the outstanding Common Stock (provided that securities issued in connection
      with an Approved Stock Plan that are outstanding as of September 28, 2007,
      and
      shares of Common Stock issuable pursuant to exercise or conversion of such
      outstanding securities shall not be included for purposes of calculating the
      maximum of ten percent (10%)); (ii) upon conversion or exercise of any Options
      or Convertible Securities which are outstanding on the day immediately preceding
      September 28, 2007, provided that the terms of such Options or Convertible
      Securities are not amended, modified or changed on or after September 28, 2007,
      to lower the conversion or exercise price thereof and so long as the number
      of
      shares of Common Stock underlying such securities is not otherwise increased;
      (iii) shares of Common Stock issued in an underwritten public offering in which
      the gross cash proceeds to the Company (before underwriting discounts,
      commissions and fees) are at least $10,000,000; (iv) Options issued to medical
      practices that are customers of the Company in good standing to acquire up
      to a
      maximum of 250,000 shares of Common Stock per practice with an exercise or
      conversion price at or above the Closing Sale Price on the day of issuance;
      (v)
      up to 250,000 shares of Common Stock (or securities convertible into 250,000
      shares of Common Stock with an exercise or conversion price at or above the
      Closing Sale price on the day of issuance) as consideration for strategic
      acquisitions up to a maximum of 250,000 shares of Common Stock per acquisition;
      (vi) up to 250,000 shares of Common Stock (or securities convertible into
      250,000 shares of Common Stock with an exercise or conversion price at or above
      the Closing Sale Price on the day of issuance) per year to third parties in
      connection with investor relations and public relations efforts of the Company;
      and (vii) shares of Common Stock, Options, or Warrants to be issued to Rodman
      & Renshaw (or their designees) as consideration for securing a line of
      credit or similar financing for the Company or its subsidiaries.”

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    	(v)  	
            the
              definition of “Installment
              Amount” set forth in Section 28(t) of each of the Notes shall be deleted
              and replaced in its entirety with the
              following:

          

    

    “(t) “Installment
      Amount”
means
      with respect to any Installment Date, the lesser of (A) the dollar amount set
      forth in the column entitled “Installment Amount” in the Installment Schedule
      and that corresponds to such Installment Date and (B) the remaining principal
      due hereunder. In the event the Holder shall sell or otherwise transfer any
      portion of this Note, the transferee shall be allocated a pro rata portion
      of
      the each unpaid Installment Amount hereunder.”

    

    	(vi)  	
            the
              following definition of the new defined term “Installment Schedule” shall
              be inserted as Section 28(v) in each of the Notes immediately following
              the definition of “Installment Date”, and all subsequent definitions in
              Section 28 in each of the Notes shall be re-lettered
              accordingly:

          

    

    “(v) “Installment
      Schedule”
means
      the Installment Schedule attached hereto as Schedule
      I.”

    
 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (b) The
      Company herewith delivers to the Consenting Holder (i) an Amended and Restated
      Note in substantially the form attached hereto as Exhibit
      C,
      which
      Amended and Restated Note amends, restates and supersedes the original October
      Note, and (ii) an Amended and Restated Note in substantially the form attached
      hereto as Exhibit
      D,
      which
      Amended and Restated Note amends, restates and supersedes the original November
      Note. The Consenting Holder herewith delivers both original Notes to the Company
      for cancellation.

    

    5.  (a)The
      Consenting Holder hereby consents to the Partial Release and herewith delivers
      to the Company a UCC-3 financing statement naming XFS as the debtor and
      reflecting such partial release and otherwise in form suitable for filing with
      the Secretary of State of the State of Florida.

    

    (b) In
      furtherance of Section 5(a) hereof, the Security Agreement is hereby amended
      by
      inserting the following at the end of Section 2 of the Security
      Agreement:

    

    “Notwithstanding
      the foregoing, “Collateral” shall not include and expressly excludes, with
      respect to Grantor Xeni Financial Services, Corp. only, (i)
      any of
      such Grantor’s Accounts and documents relating to Accounts; or (v) any of such
      Grantor’s Payment Intangibles, contract rights and causes of
      action.”

    

    6.  The
      Consenting Holder hereby consents to the execution and delivery by the Company
      of the registration rights agreement delivered to Vicis contemporaneously with
      this Amendment, Consent and Waiver with respect to the Common Stock issuable
      upon the conversion of all or any part of the Preferred Stock or upon the
      exercise of all or any portion of the Bridge Warrants, with such registration
      rights agreement to be in such form as the Company’s Board of Directors
      determines to be reasonable and appropriate. The Consenting Holder hereby
      consents to the Company’s performance of its obligations under such registration
      rights agreement.

    

    7.  Except
      as
      expressly amended hereby, the Securities Purchase Agreement is hereby ratified
      and confirmed in every respect and shall remain in full force and effect in
      accordance with its terms.

    

    8.  In
      consideration for the Consenting Holder’s agreement to this Amendment, Consent
      and Waiver, the Company hereby agrees to issue to the Consenting Holder an
      additional Series D Warrant to purchase an aggregate of 500,000 shares of Common
      Stock initially at an exercise price of $2.25 per share subject to adjustment.
      The Company herewith delivers to the Consenting Holder such additional Series
      D
      Warrant in substantially the form attached hereto as Exhibit
      E.

    

    9.  This
      Amendment, Consent and Waiver shall be construed and enforced in accordance
      with
      the laws of the State of New York.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    10.  This
      Amendment, Consent and Waiver may be executed in one or more counterparts,
      all
      of which shall together constitute a single agreement. A facsimile of an
      executed counterpart signature page shall be deemed to constitute an original
      executed counterpart signature page.

    

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this
      Amendment,
      Consent
      and Waiver as of the day and year first above written.

     

    
      	 	 	 
	 	MDWERKS, INC.
	 
 	 
 	 
 
	
            	By:  	/s/
              Howard B. Katz
	 	
              

              Name: Howard
                Katz

              Title: Chief
                Executive Officer

            

    

     

    
      	 	 	 
	 	XENI FINANCIAL SERVICES, CORP.
	 
 	 
 	 
 
	
            	By:  	/s/ Howard B. Katz
	 	
              

              Name: Howard
                Katz

              Title: Chief
                Executive Officer

            

    

     

    
      	 	 	 
	 	GOTTBETTER CAPITAL MASTER, LTD.
	 
 	 
 	 
 
	
            	By:  	/s/ Adam S. Gottbetter
	 	
              

              Name:
                Adam S. Gottbetter

              Title:
                Director

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

    

    EXHIBIT
      A

     

    INSTALLMENT
      SCHEDULE TO OCTOBER NOTE

    

    
      	
              Issue
                Date

            	 	 	 	 	
              10/19/2006

            	 	 	 	 	 	 	 	 	 	 
	
              Face
                Amount

            	 	 	 	
              $

            	
              2,500,000

            	 	 	 	 	 	 	 	 	 	 
	
              Interest
                Rate

            	 	 	 	 	
              8.0

            	
              %

            	 	 	 	 	 	 	 	 	 
	
              Term
                (months)

            	 	 	 	 	
              36

            	 	 	 	 	 	 	 	 	 	 
	
              Principal
                (months)

            	 	

            	 	 	
              25

            	 	 	 	 	 	 	 	 	 	 

    

     

    
      	
               

              Period

            	 	 	
              Installment

              Date

            	
               

            	
               

            	
              Beginning
                Principal

            	
               

            	
               

            	
              Accrued
                Interest

            	
               

            	
               

            	
              Interest
                Due

            	
               

            	
               

            	
              Installment

              Payment

            	
               

            	
               

            	
              Ending
                Principal

            	 
	
              0

            	 	 	
              11/1/2006

            	 	
              $

            	
              2,500,000.00

            	 	
              $

            	
              6,666.67

            	 	
              $

            	
              0.00

            	 	
              $

            	
              0.00

            	 	
              $

            	
              2,500,000.00

            	 
	
              1

            	 	 	
              12/1/2006

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              23,333.33

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              2

            	 	 	
              1/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              3

            	 	 	
              2/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              4

            	 	 	
              3/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              5

            	 	 	
              4/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              6

            	 	 	
              5/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              7

            	 	 	
              6/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              8

            	 	 	
              7/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              9

            	 	 	
              8/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              10

            	 	 	
              9/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              11

            	 	 	
              10/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              12

            	 	 	
              11/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              13

            	 	 	
              12/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              14

            	 	 	
              1/1/2008

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              15

            	 	 	
              2/1/2008

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              113,636.36

            	 	 	
              2,386,363.64

            	 
	
              16

            	 	 	
              3/1/2008

            	 	 	
              2,386,363.64

            	 	 	
              15,909.09

            	 	 	
              15,909.09

            	 	 	
              113,636.36

            	 	 	
              2,272,727.27

            	 
	
              17

            	 	 	
              4/1/2008

            	 	 	
              2,272,727.27

            	 	 	
              15,151.52

            	 	 	
              15,151.52

            	 	 	
              113,636.36

            	 	 	
              2,159,090.91

            	 
	
              18

            	 	 	
              5/1/2008

            	 	 	
              2,159,090.91

            	 	 	
              14,393.94

            	 	 	
              14,393.94

            	 	 	
              113,636.36

            	 	 	
              2,045,454.55

            	 
	
              19

            	 	 	
              6/1/2008

            	 	 	
              2,045,454.55

            	 	 	
              13,636.36

            	 	 	
              13,636.36

            	 	 	
              113,636.36

            	 	 	
              1,931,818.18

            	 
	
              20

            	 	 	
              7/1/2008

            	 	 	
              1,931,818.18

            	 	 	
              12,878.79

            	 	 	
              12,878.79

            	 	 	
              113,636.36

            	 	 	
              1,818,181.82

            	 
	
              21

            	 	 	
              8/1/2008

            	 	 	
              1,818,181.82

            	 	 	
              12,121.21

            	 	 	
              12,121.21

            	 	 	
              113,636.36

            	 	 	
              1,704,545.45

            	 
	
              22

            	 	 	
              9/1/2008

            	 	 	
              1,704,545.45

            	 	 	
              11,363.64

            	 	 	
              11,363.64

            	 	 	
              113,636.36

            	 	 	
              1,590,909.09

            	 
	
              23

            	 	 	
              10/1/2008

            	 	 	
              1,590,909.09

            	 	 	
              10,606.06

            	 	 	
              10,606.06

            	 	 	
              113,636.36

            	 	 	
              1,477,272.73

            	 
	
              24

            	 	 	
              11/1/2008

            	 	 	
              1,477,272.73

            	 	 	
              9,848.48

            	 	 	
              9,848.48

            	 	 	
              113,636.36

            	 	 	
              1,363,636.36

            	 
	
              25

            	 	 	
              12/1/2008

            	 	 	
              1,363,636.36

            	 	 	
              9,090.91

            	 	 	
              9,090.91

            	 	 	
              113,636.36

            	 	 	
              1,250,000.00

            	 
	
              26

            	 	 	
              1/1/2009

            	 	 	
              1,250,000.00

            	 	 	
              8,333.33

            	 	 	
              8,333.33

            	 	 	
              113,636.36

            	 	 	
              1,136,363.64

            	 
	
              27

            	 	 	
              2/1/2009

            	 	 	
              1,136,363.64

            	 	 	
              7,575.76

            	 	 	
              7,575.76

            	 	 	
              113,636.36

            	 	 	
              1,022,727.27

            	 
	
              28

            	 	 	
              3/1/2009

            	 	 	
              1,022,727.27

            	 	 	
              6,818.18

            	 	 	
              6,818.18

            	 	 	
              113,636.36

            	 	 	
              909,090.91

            	 
	
              29

            	 	 	
              4/1/2009

            	 	 	
              909,090.91

            	 	 	
              6,060.61

            	 	 	
              6,060.61

            	 	 	
              113,636.36

            	 	 	
              795,454.55

            	 
	
              30

            	 	 	
              5/1/2009

            	 	 	
              795,454.55

            	 	 	
              5,303.03

            	 	 	
              5,303.03

            	 	 	
              113,636.36

            	 	 	
              681,818.18

            	 

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               

              Period

            	 	 	
              Installment

              Date

            	
               

            	
               

            	
              Beginning
                Principal

            	
               

            	
               

            	
              Accrued
                Interest

            	
               

            	
               

            	
              Interest
                Due

            	
               

            	
               

            	
              Installment

              Payment

            	
               

            	
               

            	
              Ending
                Principal

            	 
	
              31

            	 	 	
              6/1/2009

            	 	 	
              681,818.18

            	 	 	
              4,545.45

            	 	 	
              4,545.45

            	 	 	
              113,636.36

            	 	 	
              568,181.82

            	 
	
              32

            	 	 	
              7/1/2009

            	 	 	
              568,181.82

            	 	 	
              3,787.88

            	 	 	
              3,787.88

            	 	 	
              113,636.36

            	 	 	
              454,545.45

            	 
	
              33

            	 	 	
              8/1/2009

            	 	 	
              454,545.45

            	 	 	
              3,030.30

            	 	 	
              3,030.30

            	 	 	
              113,636.36

            	 	 	
              340,909.09

            	 
	
              34

            	 	 	
              9/1/2009

            	 	 	
              340,909.09

            	 	 	
              2,272.73

            	 	 	
              2,272.73

            	 	 	
              113,636.36

            	 	 	
              227,272.73

            	 
	
              35

            	 	 	
              10/1/2009

            	 	 	
              227,272.73

            	 	 	
              1,515.15

            	 	 	
              1,515.15

            	 	 	
              113,636.36

            	 	 	
              113,636.36

            	 
	
              36

            	 	 	
              10/18/2009

            	 	 	
              113,636.36

            	 	 	
              454.55

            	 	 	
              454.55

            	 	 	
              113,636.36

            	 	 	
              0.00

            	 

    

    
       

      
         

      

      
        9

        
          

        

      

      
         

      

    

    EXHIBIT
      B

     

    INSTALLMENT
      SCHEDULE TO NOVEMBER NOTE

    

    
      	
              Issue
                Date

            	 	 	 	 	
              11/9/2006

            	 	 	 	 	 	 	 	 	 	 
	
              Face
                Amount

            	 	 	 	
              $

            	
              2,500,000

            	 	 	 	 	 	 	 	 	 	 
	
              Interest
                Rate

            	 	 	 	 	
              8.0

            	
              %

            	 	 	 	 	 	 	 	 	 
	
              Term
                (months)

            	 	 	 	 	
              36

            	 	 	 	 	 	 	 	 	 	 
	
              Principal
                (months)

            	 	

            	 	 	
              25

            	 	 	 	 	 	 	 	 	 	 

    

     

    
      	
               

              Period

            	 	 	
              Installment

              Date

            	 	 	
              Beginning
                Principal

            	 	 	
              Accrued
                Interest

            	 	 	
              Interest
                Due

            	 	 	
              Installment

              Payment

            	 	 	
              Ending
                Principal

            	 
	
              0

            	 	 	
              12/1/2006

            	 	
              $

            	
              2,500,000.00

            	 	
              $

            	
              11,666.67

            	 	
              $

            	
              11,666.67

            	 	
              $

            	
              0.00

            	 	
              $

            	
              2,500,000.00

            	 
	
              1

            	 	 	
              1/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              2

            	 	 	
              2/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              3

            	 	 	
              3/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              4

            	 	 	
              4/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              5

            	 	 	
              5/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              6

            	 	 	
              6/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              7

            	 	 	
              7/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              8

            	 	 	
              8/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              9

            	 	 	
              9/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              10

            	 	 	
              10/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              11

            	 	 	
              11/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              12

            	 	 	
              12/1/2007

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              13

            	 	 	
              1/1/2008

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              0.00

            	 	 	
              2,500,000.00

            	 
	
              14

            	 	 	
              2/1/2008

            	 	 	
              2,500,000.00

            	 	 	
              16,666.67

            	 	 	
              16,666.67

            	 	 	
              108,695.65

            	 	 	
              2,391,304.35

            	 
	
              15

            	 	 	
              3/1/2008

            	 	 	
              2,391,304.35

            	 	 	
              15,942.03

            	 	 	
              15,942.03

            	 	 	
              108,695.65

            	 	 	
              2,282,608.70

            	 
	
              16

            	 	 	
              4/1/2008

            	 	 	
              2,282,608.70

            	 	 	
              15,217.39

            	 	 	
              15,217.39

            	 	 	
              108,695.65

            	 	 	
              2,173,913.04

            	 
	
              17

            	 	 	
              5/1/2008

            	 	 	
              2,173,913.04

            	 	 	
              14,492.75

            	 	 	
              14,492.75

            	 	 	
              108,695.65

            	 	 	
              2,065,217.39

            	 
	
              18

            	 	 	
              6/1/2008

            	 	 	
              2,065,217.39

            	 	 	
              13,768.12

            	 	 	
              13,768.12

            	 	 	
              108,695.65

            	 	 	
              1,956,521.74

            	 
	
              19

            	 	 	
              7/1/2008

            	 	 	
              1,956,521.74

            	 	 	
              13,043.48

            	 	 	
              13,043.48

            	 	 	
              108,695.65

            	 	 	
              1,847,826.09

            	 
	
              20

            	 	 	
              8/1/2008

            	 	 	
              1,847,826.09

            	 	 	
              12,318.84

            	 	 	
              12,318.84

            	 	 	
              108,695.65

            	 	 	
              1,739,130.43

            	 
	
              21

            	 	 	
              9/1/2008

            	 	 	
              1,739,130.43

            	 	 	
              11,594.20

            	 	 	
              11,594.20

            	 	 	
              108,695.65

            	 	 	
              1,630,434.78

            	 
	
              22

            	 	 	
              10/1/2008

            	 	 	
              1,630,434.78

            	 	 	
              10,869.57

            	 	 	
              10,869.57

            	 	 	
              108,695.65

            	 	 	
              1,521,739.13

            	 
	
              23

            	 	 	
              11/1/2008

            	 	 	
              1,521,739.13

            	 	 	
              10,144.93

            	 	 	
              10,144.93

            	 	 	
              108,695.65

            	 	 	
              1,413,043.48

            	 
	
              24

            	 	 	
              12/1/2008

            	 	 	
              1,413,043.48

            	 	 	
              9,420.29

            	 	 	
              9,420.29

            	 	 	
              108,695.65

            	 	 	
              1,304,347.83

            	 
	
              25

            	 	 	
              1/1/2009

            	 	 	
              1,304,347.83

            	 	 	
              8,695.65

            	 	 	
              8,695.65

            	 	 	
              108,695.65

            	 	 	
              1,195,652.17

            	 
	
              26

            	 	 	
              2/1/2009

            	 	 	
              1,195,652.17

            	 	 	
              7,971.01

            	 	 	
              7,971.01

            	 	 	
              108,695.65

            	 	 	
              1,086,956.52

            	 
	
              27

            	 	 	
              3/1/2009

            	 	 	
              1,086,956.52

            	 	 	
              7,246.38

            	 	 	
              7,246.38

            	 	 	
              108,695.65

            	 	 	
              978,260.87

            	 
	
              28

            	 	 	
              4/1/2009

            	 	 	
              978,260.87

            	 	 	
              6,521.74

            	 	 	
              6,521.74

            	 	 	
              108,695.65

            	 	 	
              869,565.22

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
               

              Period

            	 	 	
              Installment

              Date

            	 	 	
              Beginning
                Principal

            	 	 	
              Accrued
                Interest

            	 	 	
              Interest
                Due

            	 	 	
              Installment

              Payment

            	 	 	
              Ending
                Principal

            	 
	
              29

            	 	 	
              5/1/2009

            	 	 	
              869,565.22

            	 	 	
              5,797.10

            	 	 	
              5,797.10

            	 	 	
              108,695.65

            	 	 	
              760,869.57

            	 
	
              30

            	 	 	
              6/1/2009

            	 	 	
              760,869.57

            	 	 	
              5,072.46

            	 	 	
              5,072.46

            	 	 	
              108,695.65

            	 	 	
              652,173.91

            	 
	
              31

            	 	 	
              7/1/2009

            	 	 	
              652,173.91

            	 	 	
              4,347.83

            	 	 	
              4,347.83

            	 	 	
              108,695.65

            	 	 	
              543,478.26

            	 
	
              32

            	 	 	
              8/1/2009

            	 	 	
              543,478.26

            	 	 	
              3,623.19

            	 	 	
              3,623.19

            	 	 	
              108,695.65

            	 	 	
              434,782.61

            	 
	
              33

            	 	 	
              9/1/2009

            	 	 	
              434,782.61

            	 	 	
              2,898.55

            	 	 	
              2,898.55

            	 	 	
              108,695.65

            	 	 	
              326,086.96

            	 
	
              34

            	 	 	
              10/1/2009

            	 	 	
              326,086.96

            	 	 	
              2,173.91

            	 	 	
              2,173.91

            	 	 	
              108,695.65

            	 	 	
              217,391.30

            	 
	
              35

            	 	 	
              11/1/2009

            	 	 	
              217,391.30

            	 	 	
              1,449.28

            	 	 	
              1,449.28

            	 	 	
              108,695.65

            	 	 	
              108,695.65

            	 
	
              36

            	 	 	
              11/9/2009

            	 	 	
              108,695.65

            	 	 	
              217.39

            	 	 	
              217.39

            	 	 	
              108,695.65

            	 	 	
              0.00

            	 

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
      C

     

    FORM
      OF AMENDED AND RESTATED
      OCTOBER NOTE

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
      D

     

    FORM
      OF AMENDED
      AND RESTATED NOVEMBER NOTE

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
      E

     

    FORM
      OF ADDITIONAL SERIES D WARRANT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]