Document:

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT the “Agreement”) is dated as of the 31st day of August, 201 2, and made effective
as of September 20th 2012 (the “Effective Date”), by and between MILLENNIUM HEALTH
CARE, INC., a Delaware corporation (the “Company”) and TCA GLOBAL CREDIT MASTER FUND,
LLP, a Cayman Islands limited partnership (the “Buyer”).

 

RECITALS

 

WHEREAS, Buyer desires
to purchase from Company, and the Company desires to sell and issue to Buyer, upon the terms and subject to the conditions contained
herein, a convertible promissory note in the original principal amount of Three Hundred Seventy-Five Thousand Dollars ($375,000)
in the form attached hereto as Exhibit “A” (the “Note”),
which Note shall be purchased on the date hereof (the “Closing Date”), all for the total purchase
price of Three Hundred Seventy-Five Thousand Dollars ($375,000) (the “Purchase Price”), and all
otherwise subject to the terms and provisions hereinafter set forth; and

 

WHEREAS, the Company
and its subsidiaries have agreed to secure all of their respective “Obligations” (as hereinafter defined) to Buyer
under the Note, this Agreement and all other Transaction Documents by: (i) granting to the Buyer a continuing and first priority
security interest in all of the assets and properties of the Company pursuant to a Security Agreement dated as of the date hereof
(the “Security Agreement”); (ii) causing Millennium ProComm Solutions, Inc., a New York corporation,
Millennium Coding & Billing, Inc., a New York corporation, Millennium Medical Devices, LLC, a New York limited liability company,
Millennium Vascular Management Group, Inc., a New York corporation, and Millennium Vascular Management Group of Staten Island,
LLC, a New York limited liability company (collectively, the “Subsidiaries”), all wholly owned
subsidiaries of the Company, to guaranty all of the Company’s Obligations pursuant to a guaranty agreement executed by the
Subsidiaries in favor of Buyer (the “Subsidiary Guaranty”); (iii) causing each of the Subsidiaries
to grant to the Buyer a continuing and first priority lien and security interest in all of the assets and properties of each of
the Subsidiaries pursuant to a Security Agreement dated as of the date hereof (the “Sub Security Agreement”);
and (iv) agreeing to the filing of UCC-1 Financing Statements covering all of the assets and properties of the Company and
the Subsidiaries (collectively, the “UCC-l’s”);

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants of the parties hereinafter expressed and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, each intending to be legally
bound, agree as follows:

 

ARTICLE I

RECITALS, EXHIBITS, SCHEDULES

 

The foregoing recitals
are true and correct and, together with the Schedules and Exhibits referred to hereafter, are hereby incorporated into this Agreement
by this reference.

 

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ARTICLE II

DEFINITIONS

 

For purposes of this
Agreement, except as otherwise expressly provided or otherwise defined elsewhere in this Agreement, or unless the context otherwise
requires, the capitalized terms in this Agreement shall have the meanings assigned to them in this Article as follows:

 

2.1           “Affiliate”
means, with respect to a Person, any other Person directly or indirectly controlling, controlled by, or under common control with,
such Person at any time during the period for which the determination of affiliation is being made. For purposes of this definition,
the term “control,” “controlling,” “controlled”
and words of similar import, when used in this context, means, with respect to any Person, the possession, directly or indirectly,
of the power to direct, or cause the direction of, management policies of such Person, whether through the ownership of voting
securities, by contract or otherwise.

 

2.2           “Assets”
means all of the properties and assets of the Company and its subsidiaries, as the context may so require, whether real, personal
or mixed, tangible or intangible, wherever located, whether now owned or hereafter acquired.

 

2.3           “Claims”
means any Proceedings, Judgments, Obligations, threats, losses, damages, deficiencies, settlements, assessments, charges, costs
and expenses of any nature or kind.

 

2.4           “Common
Stock” means the Company’s common stock, $0.0001 par value per share.

 

2.5           “Consent”
means any consent, approval, order or authorization of, or any declaration, filing or registration with, or any application or
report to, or any waiver by, or any other action (whether similar or dissimilar to any of the foregoing) of, by or with, any Person,
which is necessary in order to take a specified action or actions, in a specified manner and/or to achieve a specific result.

 

2.6           “Contract”
means any written or oral contract, agreement, order or commitment of any nature whatsoever, including, any sales order, purchase
order, lease, sublease, license agreement, services agreement, loan agreement, mortgage, security agreement, guarantee, management
contract, employment agreement, consulting agreement, partnership agreement, shareholders agreement, buy-sell agreement, option,
warrant, debenture, subscription, call or put.

 

2.7           “Effective
Date” means the date set forth in the introductory paragraph of this Agreement.

 

2.8           “Encumbrance”
means any lien, security interest, pledge, mortgage, easement, leasehold, assessment, tax, covenant, restriction, reservation,
conditional sale, prior assignment, or any other encumbrance, claim, burden or charge of any nature whatsoever.

 

2.9           “Environmental
Requirements” means all Laws and requirements relating to human, health, safety or protection of the environment
or to emissions, discharges, releases or threatened releases of pollutants, contaminants, or Hazardous Materials in the environment
(including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), or otherwise relating
to the treatment, storage, disposal, transport or handling of any Hazardous Materials.

 

2.10         “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

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2.11         “GAAP”
means generally accepted accounting principles, methods and practices set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants, and statements and pronouncements of the Financial
Accounting Standards Board, the SEC or of such other Person as may be approved by a significant segment of the U.S. accounting
profession, in each case as of the date or period at issue, and as applied in the U.S. to U.S. companies.

 

2.12         “Governmental
Authority” means any foreign, federal, state or local government, or any political subdivision thereof, or any court,
agency or other body, organization, group, stock market or exchange exercising any executive, legislative, judicial, quasi-judicial,
regulatory or administrative function of government.

 

2.13         “Hazardous
Materials” means: (i) any petroleum or petroleum products, radioactive materials, asbestos in any form that is or
could become friable, urea formaldehyde foam insulation and transformers or other equipment that contain dielectric fluid containing
levels of polychlorinated biphenyls (PCB’s); (ii) any chemicals, materials, substances or wastes which are now or hereafter
become defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous
materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,”
“toxic pollutants” or words of similar import, under any Law; and (iii) any other chemical, material, substance, or
waste, exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Authority.

 

2.14         “Incentive
Shares” means the shares of the Company’s Common Stock to be issued by the Company to Buyer in accordance with
Section 7.5 below.

 

2.15         “Judgment”
means any order, writ, injunction, fine, citation, award, decree, or any other judgment of any nature whatsoever of any Governmental
Authority.

 

2.16         “Law”
means any provision of any law, statute, ordinance, code, constitution, charter, treaty, rule or regulation of any Governmental
Authority.

 

2.17         “Leases”
means all leases for real or personal property.

 

2.18          “Material
Adverse Effect” means with respect to the event, item or question at issue, that such event, item or question
would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability
of this Agreement or any of the Transaction Documents; (ii) a material adverse effect on the results of operations, Assets, business
or condition (financial or otherwise) or prospects of the Company or any of its subsidiaries, either individually or taken as a
whole; (iii) a material adverse effect on the Company’s or its subsidiaries’ ability to perform, on a timely basis,
its or their respective Obligations under this Agreement or any Transaction Documents; or (iv) a material adverse effect on the
Buyer’s ability to sell or dispose of any of the Securities, whether on the Principal Trading Market, or otherwise, in accordance
with applicable securities laws.

 

2.19         “Material
Contract” shall mean any Contract to which the Company is a party or by which the Company or any of its
Assets are bound and which: (i) involves aggregate payments of Twenty-Five Thousand Dollars ($25,000) or more to or from the Company;
(ii) involves delivery, purchase, licensing or provision, by or to the Company, of any goods, services, assets or other items having
a value (or potential value) over the term of such Contract of Twenty-five Thousand Dollars ($25,000) or more or is otherwise material
to the conduct of the Company’s business as now conducted and as contemplated to be conducted in the future; (iii) involves
a Company Lease; (iv) imposes any guaranty, surety or indemnification Obligations on the Company; or (v) prohibits the Company
from engaging in any business or competing anywhere in the world.

 

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2.20         “Obligation”
means any debt, liability or obligation of any nature whatsoever, whether secured, unsecured, recourse, nonrecourse, liquidated,
unliquidated, accrued, absolute, fixed, contingent, ascertained, unascertained, known, unknown or obligations under executory
Contracts.

 

2.21         “Ordinary
Course of Business” means the ordinary course of business consistent with past custom and practice (including
with respect to quantity, quality and frequency).

 

2.22         “PCAOB”
means the Public Company Accounting Oversight Board.

 

2.23         “Permit”
means any license, permit, approval, waiver, order, authorization, right or privilege of any nature whatsoever, granted, issued,
approved or allowed by any Governmental Authority.

 

2.24         “Person”
means any individual, sole proprietorship, joint venture, partnership, company, corporation, association, cooperation, trust,
estate, Governmental Authority, or any other entity of any nature whatsoever.

 

2.25         “Principal
Trading Market” shall mean the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market,
the OTC Markets, including the Bulletin Board and Pink Sheets, the NYSE Euronext or the New York Stock Exchange, whichever is
at the time the principal trading exchange or market for the Common Stock.

 

2.26         “Proceeding”
means any demand, claim, suit, action, litigation, investigation, audit, study, arbitration, administrative hearing, or any
other proceeding of any nature whatsoever.

 

2.27         “Real
Property” means any real estate, land, building, structure, improvement, fixture or other real property of any nature
whatsoever, including, but not limited to, fee and leasehold interests.

 

2.28         “SEC”
means the United States Securities and Exchange Commission.

 

2.29         “Securities”
means, collectively, the Note, the Incentive Shares and any additional shares of Common Stock issuable in connection with
a conversion of the Note.

 

2.30         “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

2.31         “Tax”
means (i) any foreign, federal, state or local income, profits, gross receipts, franchise, sales, use, occupancy, general
property, real property, personal property, intangible property, transfer, fuel, excise, accumulated earnings, personal holding
company, unemployment compensation, social security, withholding taxes, payroll taxes, or any other tax of any nature whatsoever,
(ii) any foreign, federal, state or local organization fee, qualification fee, annual report fee, filing fee, occupation fee, assessment,
rent, or any other fee or charge of any nature whatsoever, or (iii) any deficiency, interest or penalty imposed with respect to
any of the foregoing.

 

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2.32         “Tax
Return” means any tax return, filing, declaration, information statement or other form or document required
to be filed in connection with or with respect to any Tax.

 

2.33         “Transaction
Documents” means any documents or instruments executed or to be executed by Company in connection with this Agreement,
including the Note, the Security Agreement, the UCC- 1’s, the Subsidiary Guaranty, and the Sub Security Agreement, together
with all modifications, amendments, extensions, future advances, renewals, and substitutions thereof.

 

ARTICLE III

INTERPRETATION

 

In this Agreement,
unless the express context otherwise requires: (i) the words “herein,” “hereof” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (ii) references to the words “Article” or “Section” refer to the respective Articles and Sections of this Agreement,
and references to “Exhibit” or “Schedule” refer to the respective Exhibits and Schedules annexed hereto;
(iii) references to a “party” mean a party to this Agreement and include references to such party’s permitted
successors and permitted assigns; (iv) references to a “third party” mean a Person not a party to this Agreement;
(v) the terms “dollars” and “$” means U.S. dollars; (vi) wherever the word “include,” “includes”
or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation;”
and (vi) the term “Company” shall refer collectively to the Company and all of its subsidiaries, whether listed as
part of the Subsidiaries or not, and to each of them individually, in each case as the context may so require, it being the intent
of the parties under this Agreement that all of the terms, conditions, provisions and representations hereof shall, to the greatest
extent possible, while still maintaining the intent and purpose of this Agreement, apply equally to each of them, as if each term,
covenant, provision and representation was separately made herein by each of them, except only with respect to any terms and provisions
that deal directly with the issuance of any of the Securities, in which case the term Company shall mean and refer only to the
Company, as the issuer of such Securities, without its Subsidiaries.

 

ARTICLE IV

PURCHASE AND SALE OF NOT ES

 

4.1          Purchase
and Sale of Note. Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement, Buyer agrees to purchase,
on the Closing Date, and Company agrees to sell and issue to Buyer, on the Closing Date, the Note in the amount of the Purchase
Price as more specifically set forth below.

 

4.2           Closing.
The closing of the purchase and sale of the Note (the “Closing”) shall take place on the Closing Date,
subject to satisfaction of the conditions to the Closing set forth in this Agreement. The Closing shall occur on the Closing Date
through the use of overnight mails and subject to customary escrow instructions from Buyer and its counsel, or in such other manner
as is mutually agreed to by the Company and the Buyer.

 

4.3           Form
of Payment. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date: (i) the Buyer shall
deliver to the attorney trust account of Lucosky Brookman, LLP, acting as counsel to the Company, the aggregate proceeds for the
Note to be issued and sold to Buyer at the Closing, minus the fees to be paid directly from the proceeds of such Closing as set
forth in this Agreement, in the form of wire transfers of immediately available U.S. funds; and (ii) the Company shall deliver
to Buyer the Securities which Buyer is purchasing hereunder at the Closing, duly executed on behalf of the Company, together with
any other documents required to be delivered pursuant to this Agreement.

 

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ARTICLE V

BUYER’S REPRESENTATIONS AND WARRANTIES

 

Buyer represents and warrants to the Company,
that:

 

5.1           Investment
Purpose. Buyer is acquiring the Securities for its own account for investment only and not with a view towards, or for resale
in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities
Act; provided, however, that by making the representations herein, Buyer reserves the right to dispose of the Securities at any
time in accordance with or pursuant to an effective registration statement covering such Securities or an available exemption under
the Securities Act.

 

5.2           Accredited
Buyer Status. Buyer is an “accredited investor” as that term is defined in Rule 501(a) (3) of Regulation D,
as promulgated under the Securities Act.

 

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

 

5.4           Information.
Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the
Company and information Buyer deemed material to making an informed investment decision regarding its purchase of the Securities,
which have been requested by Buyer. Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the
Company and its management. Neither such inquiries, nor any other due diligence investigations conducted by Buyer or its advisors,
if any, or its representatives, shall modify, amend or affect Buyer’s right to rely on the Company’s and its subsidiaries’
representations and warranties contained in Article VI below. Buyer understands that its investment in the Securities involves
a high degree of risk. Buyer is in a position regarding the Company, which, based upon employment, family relationship or economic
bargaining power, enabled and enables Buyer to obtain information from the Company in order to evaluate the merits and risks of
this investment. Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

 

5.5           No
Governmental Review. Buyer understands that no United States federal or state Governmental Authority has passed on or made
any recommendation or endorsement of the Securities, or the fairness or suitability of the investment in the Securities, nor have
such Governmental Authorities passed upon or endorsed the merits of the offering of the Securities.

 

5.6           Authorization,
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of Buyer and is a valid
and binding agreement of Buyer, enforceable in accordance with its terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF THE
SELLER

 

Except as set forth
and disclosed in the disclosure schedule attached to this Agreement and made a part hereof, the Company hereby makes the following
representations and warranties to the Buyer:

 

6.1           Subsidiaries.
Except for one hundred percent (100%) ownership of each of the Subsidiaries, the Company has no subsidiaries and the Company does
not own, directly or indirectly, any outstanding voting securities of or other interests in, or have any control over, any other
Person. With respect to each of the Subsidiaries, all representations and warranties in this Article VI and elsewhere in this
Agreement shall be deemed repeated and re-made from and by each of the Subsidiaries, as if such representations and warranties
were independently made by each of such Subsidiaries in this Agreement. In addition, each representation and warranty contained
in this Article VI or otherwise set forth in this Agreement shall be deemed to mean and be construed to include the Company and
each of its subsidiaries, as applicable, regardless of whether each of such representations and warranties in Article VI specifically
refers to the Company’s subsidiaries or not.

 

6.2           Organization.
The Company and its subsidiaries are corporations, duly organized, validly existing and in good standing under the Laws of the
jurisdiction in which they are incorporated. The Company has the full corporate power and authority and all necessary certificates,
licenses, approvals and Permits to: (i) enter into and execute this Agreement and the Transaction Documents and to perform all
of its Obligations hereunder and thereunder; and (ii) own and operate its Assets and properties and to conduct and carry on its
business as and to the extent now conducted. The Company is duly qualified to transact business and is in good standing as a foreign
corporation in each jurisdiction where the character of its business or the ownership or use and operation of its Assets or properties
requires such qualification.

 

6.3           Authority
and Approval of Agreement; Binding Effect. The execution and delivery by Company of this Agreement and the Transaction Documents,
and the performance by Company of all of its Obligations hereunder and thereunder, including the issuance of the Securities,
have been duly and validly authorized and approved by Company and its board of directors pursuant to all applicable Laws and no
other corporate action or Consent on the part of Company, its board of directors, stockholders or any other Person is necessary
or required by the Company to execute this Agreement and the Transaction Documents, consummate the transactions contemplated herein
and therein, perform all of Company’s Obligations hereunder and thereunder, or to issue the Securities. This Agreement and
each of the Transaction Documents have been duly and validly executed by Company (and the officer executing this Agreement and
all such other Transaction Documents is duly authorized to act and execute same on behalf of Company) and constitute the valid
and legally binding agreements of Company, enforceable against Company in accordance with their respective terms, except as such
enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and
remedies.

 

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6.4           Capitalization.
The authorized capital stock of the Company consists of 34,000,000 shares of Common Stock and 1,000,000 shares of preferred stock,
par value $0.0001 per share (the “Preferred Stock”), of which 19,069,122 shares of Common Stock
are issued and outstanding as of the date hereof, and 210,000 shares of Preferred Stock are issued and outstanding as of the date
hereof (100,000 shares of Series A Preferred Stock and 110,000 shares of Series D Preferred Stock). All of such outstanding shares
have been validly issued and are fully paid and nonassessable. The Common Stock is currently quoted on the OTC Pink Sheets under
the trading symbol “MHCC”. The Company has received no notice, either oral or written, with respect to the continued
eligibility of the Common Stock for quotation on the Principal Trading Market, and the Company has maintained all requirements
on its part for the continuation of such quotation. No shares of Common Stock are subject to preemptive rights or any other similar
rights or any Encumbrances suffered or permitted by the Company. As of the date hereof: (i) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its subsidiaries, or Contracts, commitments, understandings or arrangements
by which the Company or any of its subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its subsidiaries, or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its subsidiaries; (ii)
there are no outstanding debt securities, notes, credit agreements, credit facilities or other Contracts or instruments evidencing
indebtedness of the Company or any of its subsidiaries, or by which the Company or any of its subsidiaries is or may become bound;
(iii) there are no outstanding registration statements with respect to the Company or any of its securities; (iv) there are no
agreements or arrangements under which the Company or any of its subsidiaries is obligated to register the sale of any of their
securities under the Securities Act (except pursuant to this Agreement); (v) there are no financing statements securing obligations
filed in connection with the Company or any of its Assets; (vi) there are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by this Agreement or any related agreement or the consummation of the transactions described herein or therein; and (vii) there are no outstanding securities or instruments of the Company which contain any redemption
or similar provisions, and there are no Contracts by which the Company is or may become bound to redeem a security of the Company.
The Company has furnished to the Buyer true, complete and correct copies of: (I) the Company’s Certificate of Incorporation,
as amended and as in effect on the date hereof (the “Certificate of Incorporation”); and (II) the Company’s
Bylaws, as in effect on the date hereof (the “Bylaws”). Except for the Certificate of Incorporation
and the Bylaws, there are no other shareholder agreements, voting agreements or other Contracts of any nature or kind that restrict,
limit or in any manner impose Obligations on the governance of the Company.

 

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6.5           No
Conflicts; Consents and Approvals. The execution, delivery and performance of this Agreement and the Transaction Documents, and the consummation of the transactions contemplated hereby and thereby, including the issuance of any of the Securities,
will not: (i) constitute a violation of or conflict with the Certificate of Incorporation, Bylaws or any other organizational or
governing documents of Company; (ii) constitute a violation of, or a default or breach under (either immediately, upon notice,
upon lapse of time, or both), or conflicts with, or gives to any other Person any rights of termination, amendment, acceleration
or cancellation of, any provision of any Contract to which Company is a party or by which any of its Assets or properties may be
bound; (iii) constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both),
or conflicts with, any Judgment; (iv) constitute a violation of, or conflict with, any Law (including United States federal and
state securities Laws and the rules and regulations of any market or exchange on which the Common Stock is quoted); or (v) result
in the loss or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to, any Permit
granted or issued to, or otherwise held by or for the use of, Company or any of Company’s Assets. The Company is not in violation
of its Certificate of Incorporation, Bylaws or other organizational or governing documents and the Company is not in default or
breach (and no event has occurred which with notice or lapse of time or both could put the Company in default or breach) under,
and the Company has not taken any action or failed to take any action that would give to any other Person any rights of termination,
amendment, acceleration or cancellation of, any Contract to which the Company is a party or by which any property or Assets of
the Company are bound or affected. The businesses of the Company are not being conducted, and shall not be conducted so long as
Buyer owns any of the Securities, in violation of any Law. Except as specifically contemplated by this Agreement, the Company is
not required to obtain any Consent of, from, or with any Governmental Authority, or any other Person, in order for it to execute,
deliver or perform any of its Obligations under this Agreement or the Transaction Documents in accordance with the terms hereof
or thereof, or to issue and sell the Securities in accordance with the terms hereof. All Consents which the Company is required
to obtain pursuant to the immediately preceding sentence have been obtained or effected on or prior to the date hereof. The Company
is not aware of any facts or circumstances which might give rise to any of the foregoing.

 

6.6           Issuance
of Securities. The Securities are duly authorized and, upon issuance in accordance with the terms hereof, shall be duly issued,
fully paid and non-assessable, and free from all Encumbrances with respect to the issue thereof, and will be issued in compliance
with all applicable United States federal and state securities Laws. Assuming the accuracy of the representations and warranties
of the Buyer set forth in Article V above, the offer and sale by the Company of the Securities is exempt from: (i) the registration
and prospectus delivery requirements of the Securities Act; and (ii) the registration and/or qualification provisions of all applicable
state and provincial securities and “blue sky” laws.

 

6.7           Due
Diligence Documents; Financial Statements. The Company is a non-reporting Company with the SEC and the Company’s
Common Stock is currently not registered pursuant to Section 12 of the Exchange Act, and as of the date hereof, the Company
is not required to file, and has not filed, any periodic reports with the SEC under Sections 13 or 15(d) of the Exchange Act.
The Company, however, has delivered certain reports, schedules, forms, statements and other due diligence documents and
materials to Buyer (referred to as the “Due Diligence Materials”). The Company shall also deliver
to Buyer true and complete copies of all draft filings, reports, schedules, statements and other documents voluntarily filed
or required to be filed by the Company under the Exchange Act, any rules of any Principal Trading Market, or any other
applicable Law that have been prepared but not filed as of the date hereof. None of the Due Diligence Materials contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements or information therein, in light of the circumstances under which they were made, not misleading. In
addition, the Company has delivered to Buyer unaudited financial statements, including Statement of Income, Balance Sheet and
Statement of Cash Flows for fiscal year ending December 31, 2011, as well as unaudited financial statements, including
Statement of Income, Balance Sheet and Statement of Cash Flows for fiscal quarter ending March 31, 2012 and fiscal quarter
ending June 30, 2012 (collectively, the “Financial Statements”). All of the Financial Statements
have been prepared in accordance with GAAP, consistently applied, during the periods involved (except: (i) as may be
otherwise indicated in such Financial Statements or the notes thereto; or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements), and fairly present in all material
respects the consolidated financial position of the Company and its subsidiaries as of the dates thereof and the consolidated
results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). In addition, the Company represents and warrants that it has engaged a PCAOB approved
and registered accounting firm (the “Accounting Firm”) that has prepared audited
financial statements for the Company (which financial statements are approximately 90% completed as of the date hereof)
(the “Audited Financials”) that comply with in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC and the Principal Trading Market with respect
thereto. The Company further represents and warrants the it has paid (or will be paying from the proceeds of the sale of the
Note) the Accounting Firm preparing the Audited Financials in full for all work associated with the production and completion
of the Audited Financials.

 

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6.8           Absence
of Certain Changes. Since the most recent date of the Financial Statements, none of the following have occurred:

 

 (a)          There
has been no event or circumstance of any nature whatsoever that has resulted in, or could reasonably be expected to result in,
a Material Adverse Effect; or

 

 (b)          Any
transaction, event, action, development, payment, or any other matter of any nature whatsoever entered into by the Company other
than in the Ordinary Course of Business.

 

6.9           Absence
of Litigation or Adverse Matters. (i) There is no Proceeding before or by any Governmental Authority or any other Person, pending,
or the best of Company’s know ledge, threatened or contemplated by, against or affecting the Company, its business or Assets;
(ii) there is no outstanding Judgments against or affecting the Company, its business or Assets; (iii) the Company is not in breach
or violation of any Contract; and (iv) the Company has not received any material complaint from any customer, supplier, vendor
or employee.

 

6.10         Liabilities
and Indebtedness of the Company. The Company does not have any Obligations of any nature whatsoever, except: (i) as disclosed
in the Financial Statements; or (ii) Obligations incurred in the Ordinary Course of Business since the date of the last Financial
Statements which do not or would not, individually or in the aggregate, exceed Ten Thousand Dollars ($10,000) or otherwise have
a Material Adverse Effect.

 

6.11         Title
to Assets. The Company has good and marketable title to, or a valid leasehold interest in, all of its Assets which are material
to the business and operations of the Company as presently conducted, free and clear of all Encumbrances or restrictions on the
transfer or use of same. Except as would not have a Material Adverse Effect, the Company’s Assets are in good operating condition
and repair, ordinary wear and tear excepted, and are free of any latent or patent defects which might impair their usefulness,
and are suitable for the purposes for which they are currently used and for the purposes for which they are proposed to be used.

 

6.12         Real
Estate.

 

 (a)          Real
Property Ownership. The Company does not own any Real Property.

 

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 (b)          Real
Property Leases. Except for ordinary and customary office leases for the Company’s offices delivered to Buyer with the
Due Diligence Materials (the “Company Leases”), the Company does not lease any other Real Property.
With respect to each of the Company Leases: (i) the Company has been in peaceful possess ion of the property leased thereunder
and neither the Company nor the landlord is in default thereunder; (ii) no waiver, indulgence or postponement of any of the Obligations
thereunder has been granted by the Company or landlord thereunder; and (iii) there exists no event, occurrence, condition or
act known to the Company which, upon notice or lapse of time or both, would be or could become a default thereunder or which
could result in the termination of the Company Leases, or any of them, or have a Material Adverse Effect on the business of the
Company, its Assets or its operations or financial results. The Company has not violated nor breached any provision of any such
Company Leases, and all Obligations required to be performed by the Company under any of such Company Leases have been fully,
timely and properly performed. The Company has delivered to the Buyer true, correct and complete copies of all Company Leases,
including all modifications and amendments thereto, whether in writing or otherwise. The Company has not received any written
or oral notice to the effect that any of the Company Leases will not be renewed at the termination of the term of such Company
Leases, or that any of such Company Leases will be renewed only at higher rents.

 

6.13         Material
Contracts. An accurate, current and complete copy of each of the Material Contracts has been furnished to Buyer as part of
the Due Diligence Materials, and each of the Material Contracts constitutes the entire agreement of the respective parties thereto
relating to the subject matter thereof. There are no outstanding offers, bids, proposals or quotations made by Company which, if
accepted, would create a Material Contract with Company. Each of the Material Contracts is in full force and effect and is a valid
and binding Obligation of the parties thereto in accordance with the terms and conditions thereof. To the knowledge of the Company
and its officers, all Obligations required to be performed under the terms of each of the Material Contracts by any party thereto
have been fully performed by all parties thereto, and no party to any Material Contracts is in default with respect to any term or
condition thereof, nor has any event occurred which, through the passage of time or the giving of notice, or both, would constitute
a default thereunder or would cause the acceleration or modification of any Obligation of any party thereto or the creation of
any Encumbrance upon any of the Assets of the Company. Further, the Company has received no notice, nor does the Company have any
knowledge, of any pending or contemplated termination of any of the Material Contracts and, no such termination is proposed or
has been threatened, whether in writing or orally.

 

6.14         Compliance
with Laws. To the knowledge of the Company and its officers, the Company is and at all times has been in full compliance with
all Laws. The Company has not received any notice that it is in violation of, has violated, or is under investigation with respect
to, or has been threatened to be charged with, any violation of any Law.

 

6.15         Intellectual
Property. The Company owns or possesses adequate and legally enforceable rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and all other intellectual property rights necessary to conduct its business as now
conducted. The Company does not have any knowledge of any infringement by the Company of trademark, trade name rights, patents,
patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other
intellectual property rights of others, and, to the knowledge of the Company, there is no Claim being made or brought against,
or to the Company’s knowledge, being threatened against, the Company regarding trademark, trade name, patents, patent rights,
invention, copyright, license, service names, service marks, service mark registrations, trade secret or other intellectual property
infringement; and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing.

 

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6.16         Labor
and Employment Matters. The Company is not involved in any labor dispute or, to the knowledge of
the Company, is any such dispute threatened. To the knowledge of the Company and its officers, none of the Company’s employees
is a member of a union and the Company believes that its relations with its employees are good. To the knowledge of the Company
and its officers, the Company has complied in all material respects with all Laws relating to employment matters, civil rights
and equal employment opportunities.

 

6.17         Employee
Benefit Plans. The Company does not have and has not ever maintained, and has no Obligations with respect to any employee benefit
plans or arrangements, including employee pension benefit plans, as defined in Section 3(2) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), multi
employer plans, as defined in Section 3(37) of ERISA, employee welfare benefit plans, as defined in Section 3(1) of ERISA, deferred
compensation plans, stock option plans, bonus plans, stock purchase plans, hospitalization, disability and other insurance plans,
severance or termination pay plans and policies, whether or not described in Section 3(3) of ERISA, in which employees, their spouses
or dependents of the Company participate (collectively, the “Employee Benefit Plans”). To the Company’s
knowledge, all Employee Benefit Plans meet the minimum funding standards of Section 302 of ERlSA, where applicable, and each such
Employee Benefit Plan that is intended to be qualified within the meaning of Section 401 of the Internal Revenue Code of 1986
is qualified. No withdrawal liability has been incurred under any such Employee Benefit Plans and no “Reportable Event”
or “Prohibited Transaction” (as such terms are defined in ERlSA), has occurred with respect to any such Employee Benefit
Plans, unless approved by the appropriate Governmental Authority. To the Company’s knowledge, the Company has promptly paid and
discharged all Obligations arising under ERISA of a character which if unpaid or unperformed might result in the imposition of
an Encumbrance against any of its Assets or otherwise have a Material Adverse Effect.

 

6.18         Tax
Matters. The Company has made and timely filed all Tax Returns required by any jurisdiction to which it is subject, and each
such Tax Return has been prepared in compliance with all applicable Laws, and all such Tax Returns are true and accurate in all
respects. Except and only to the extent that the Company has set aside on its books provisions reasonably adequate for the payment
of all unpaid and unreported Taxes, the Company has timely paid all Taxes shown or determined to be due on such Tax Returns, except
those being contested in good faith, and the Company has set aside on its books provision reasonably adequate for the payment of
all Taxes for periods subsequent to the periods to which such Tax Returns apply. There are no unpaid Taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.
The Company has withheld and paid all Taxes to the appropriate Governmental Authority required to have been withheld and paid in
connection with amounts paid or owing to any Person. There is no Proceeding or Claim for refund now in progress, pending or threatened
against or with respect to the Company regarding Taxes.

 

6.19         Insurance.
The Company is covered by valid, outstanding and enforceable policies of insurance which were issued to it by reputable insurers
of recognized financial responsibility, covering its properties, Assets and businesses against losses and risks normally insured
against by other corporations or entities in the same or similar lines of businesses as the Company is engaged and in coverage
amounts which are prudent and typically and reasonably carried by such other corporations or entities (the “Insurance Policies”).
Such Insurance Policies are in full force and effect, and all premiums due thereon have been paid. None of the Insurance Policies
will lapse or terminate as a result of the transactions contemplated by this Agreement. The Company has complied with the provisions
of such Insurance Policies. The Company has not been refused any insurance coverage sought or applied for and the Company
does not have any reason to believe that it will not be able to renew its existing Insurance Policies as and when such Insurance
Policies expire or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that
would not materially and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the
Company.

 

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6.20         Permits.
The Company possesses all Permits necessary to conduct its business, and the Company has not received any notice of, or is otherwise
involved in any Proceedings relating to, the revocation or modification of any such Permits. All such Permits are valid and in
full force and effect and the Company is in full compliance with the respective requirements of all such Permits.

 

6.21         Bank
Accounts; Business Location. Schedule 6.21 sets forth, with respect to each account of the Company with any bank, broker
or other depository institution: (i) the name and account number of such account; (ii) the name and address of the institution
where such account is held; (iii) the name of any Person(s) holding a power of attorney with respect to such account, if any;
and (iv) the names of all authorized signatories and other Persons authorized to withdraw funds from each such account. The Company
has no office or place of business other than as identified on Schedule 6.21 and the Company’s principal places of
business and chief executive offices are indicated on Schedule 6.21. All books and records of the Company and other
material Assets of the Company are held or located at the principal offices of the Company indicated on Schedule 6.21.

 

6.22         Environmental
Laws. The Company is and has at all times been in compliance with any and all applicable Environmental Requirements, and there
are no pending Claims against the Company relating to any Environmental Requirements, nor to the best knowledge of the Company,
is there any basis for any such Claims.

 

6.23         Illegal
Payments. Neither the Company, nor any director, officer, agent, employee or other Person acting on behalf of the Company has,
in the course of his actions for, or on behalf of, the Company: (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or employee.

 

6.24         Related
Party Transactions. Except for arm’s length transactions pursuant to which the Company makes payments in the Ordinary Course
of Business upon terms no less favorable than the Company could obtain from third parties, none of the officers, directors or employees
of the Company, nor any stockholders who own, legally or beneficially, five percent (5%) or more of the issued and outstanding
shares of any class of the Company’s capital stock (each a “Material Shareholder”), is presently a party
to any transaction with the Company (other than for services as employees, officers and directors), including any Contract providing
for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments
to or from, any officer, director or such employee or Material Shareholder or, to the best knowledge of the Company, any other
Person in which any officer, director, or any such employee or Material Shareholder has a substantial or material interest in or
of which any officer, director or employee of the Company or Material Shareholder is an officer, director, trustee or partner.
There are no Claims or disputes of any nature or kind between the Company and any officer, director or employee of the Company
or any Material Shareholder, or between any of them, relating to the Company and its business.

 

    	13

    	 

    

 

6.25         Internal
Accounting Controls. The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability; (iii) access to Assets is permitted only in accordance with management’s general or specific authorization;
and (iv) the recorded accountability for Assets is compared with the existing Assets at reasonable intervals and appropriate action
is taken with respect to any differences.

 

6.26         Acknowledgment
Regarding Buyer’s Purchase of the Securities. The Company acknowledges and agrees that Buyer is acting solely in the capacity
of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement
and the transactions contemplated hereby and any advice given by Buyer or any of its representatives or agents in connection with
this Agreement and the transactions contemplated hereby is merely incidental to Buyer’s purchase of the Securities. The Company
further represents to Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
by the Company and its representatives.

 

6.27         Seniority. No indebtedness or other equity or security of the Company is senior
to the Note in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, except only
purchase money security interests (which are senior only as to underlying Assets covered thereby).

 

6.28         Brokerage
Fees. There is no Person acting on behalf of the Company who is entitled to or has any claim for any brokerage or finder’s
fee or commission in connection with the execution of this Agreement or the consummation of the transactions contemplated hereby.

 

6.29         Full
Disclosure. All the representations and warranties made by Company herein or in the Schedules hereto, and all of the statements,
documents or other information pertaining to the transact ion contemplated herein made or given by Company, its agents or representatives,
are complete and accurate, and do not omit any information required to make the statements and information provided, in light of
the transaction contemplated herein and in light of the circumstances under which they were made, not misleading, accurate and
meaningful.

 

ARTICLE VII

COVENANTS

 

7.1          Negative
Covenants.

 

(a)          Indebtedness.
So long as the Note is outstanding, neither the Company, nor any of its subsidiaries shall, either directly or indirectly,
create, assume, incur or have outstanding any indebtedness for borrowed money of any nature or kind (including purchase money
indebtedness), or become liable, whether as endorser, guarantor, surety or otherwise, for any Obligation of any other Person,
except for: (i) the Note; (ii) Obligations for accounts payable, other than for money borrowed, incurred in the Ordinary
Course of Business; and (iii) indebtedness that is subordinated to the Obligations owed to Buyer under the Note, as a matter
of law, or pursuant to a subordination agreement, in form and content acceptable to Buyer in its
sole discretion, which shall include an indefinite standstill on remedies and payment blockage rights during any default
hereunder.

 

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(b)          Encumbrances.
So long as the Note is outstanding, neither the Company, nor any of its subsidiaries shall, either directly or indirectly, create,
assume, incur or suffer or permit to exist any Encumbrance upon any Asset of the Company or any of its subsidiaries which is senior
to the security interest and rights of the Buyer, whether owned at the date hereof or hereafter acquired.

 

(c)          Intentionally
Left Blank.

 

(d)          Transfer;
Merger. So long as the Note is outstanding, neither the Company, nor any of its subsidiaries shall, either directly or indirectly,
permit or enter into any transaction involving a “Change in Control” (as hereinafter defined), or any other merger, consolidation,
sale, transfer, license, lease, encumbrance or otherwise disposition of all or substantially all of its properties or business
or all or substantially all of its Assets, except for the sale, lease or licensing of property or Assets of the Company in the
Ordinary Course of Business. For purposes of this Agreement, the term “Change of Control” shall mean any
sale, conveyance, assignment or other transfer, directly or indirectly, of any ownership interest of the Company or any of its
subsidiaries which results in any change in the identity of the individuals or entities previously having the power to direct,
or cause the direction of, the management and policies of the Company or any of its subsidiaries, or the grant of a security interest
in any ownership interest of any Person directly or indirectly controlling the Company, which could result in a change in the identity
of the individuals or entities previously having the power to direct, or cause the direct ion of, the management and policies of
the Company or any of its subsidiaries.

 

(e)          Distributions;
Restricted Payments. So long as the Note is outstanding, neither the Company, nor any of its subsidiaries shall, either directly
or indirectly: (i) purchase or redeem any shares of its capital stock; (ii) declare or pay any dividends or distributions, whether
in cash or otherwise, or set aside any funds for any such purpose; (iii) make any loans, advances or extensions of credit to, or
investments in, any Person, including, without limitation, any Affiliates of the Company or its subsidiaries, or the Company’s
officers, directors, employees or Material Shareholders, or the officers, directors, employees of any subsidiary of the Company;
or (iv) increase the annual salary paid to any officers or directors of the Company or any of its subsidiaries as of the Effective
Date, unless any such increase is part of a written employment contract with any such officers entered into prior to the Effective
Date, a copy of which has been delivered to and approved by the Buyer.

 

(f)          Use
of Proceeds. The proceeds from the purchase and sale of the Note shall be used by the Company for general working capital purposes.

 

(g)          Business
Activities; Change of Legal Status and Organizational Documents. Neither the Company, nor any of its subsidiaries, shall:
(i) engage in any line of business other than the businesses engaged in as of the Effective Date and business reasonably related
thereto; (ii) change its respective name, organizational identification number, its type of organization, its jurisdiction of
organization or other legal structure; or (iii) permit its Certificate of Incorporation, Bylaws or other organizational documents
to be amended or modified in any way which could reasonably be expected to have a Material Adverse Effect.

 

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(h)          Transactions
with Affiliates. Neither the Company, nor any of its subsidiaries, shall enter into any transaction with any of its Affiliates,
officers, directors, employees, Material Shareholders or other insiders, except in the Ordinary Course
of Business and upon fair and reasonable terms that are no less favorable to the Company or its subsidiaries, as applicable, than
it would obtain in a comparable arm’s length transaction with a Person not an Affiliate of the Company or any of its subsidiaries.

 

7.2          Affirmative
Covenants.

 

(a)          Corporate
Existence. The Company and each of its subsidiaries shall at all times preserve and maintain their respective: (i) existence
and good standing in the jurisdiction of its and their organization; and (ii) its and their qualification to do business and good
standing in each jurisdiction where the nature of its and their business makes such qualification necessary, and shall at all times
continue as a going concern in the business which the Company is presently conducting.

 

(b)          Tax
Liabilities. The Company and each of its subsidiaries shall at all times pay and discharge all Taxes upon, and all Claims (including
claims for labor, materials and supplies) against the Company and each of its subsidiaries or any of its or their properties or
Assets, before the same shall become delinquent and before penalties accrue thereon, unless and to the extent that the same are
being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAPP are being maintained.

 

(c)          Notice
of Proceedings. The Company shall, promptly, but not more than five (5) days after knowledge thereof shall have come to the
attention of any officer of the Company, give written notice to the Buyer of all threatened or pending Proceedings before any Governmental
Authority affecting the Company or any of its subsidiaries.

 

(d)          Material
Adverse Effect. The Company shall, promptly, but not more than five (5) days after knowledge thereof shall have come to the
attention of any officer of the Company, give written notice to the Buyer of any event, circumstance, fact or other matter that
could in any way have or be reasonably expected to have a Material Adverse Effect.

 

(e)          Notice
of Default. The Company shall, promptly, but not more than five (5) days after the commencement thereof, give notice to the
Buyer in writing of the occurrence of any “Event of Default” (as such term is defined in any of the Transaction Documents)
or of any event which, with the lapse of time, the giving of notice or both, would constitute an Event of Default hereunder or
under any other Transaction Documents.

 

(f)          Maintain
Property. The Company and each of its subsidiaries shall at all times maintain, preserve and keep all of their respective
Assets in good repair, working order and condition, normal wear and tear excepted, and shall from time to time, as the
Company deems appropriate in its reasonable judgment, make all needful and proper repairs, renewal s, replacements, and
additions thereto so that at all times the efficiency thereof shall be fully preserved and maintained. The Company shall
permit Buyer to examine and inspect such Assets (and all assets and properties of its subsidiaries) at all reasonable times
upon reasonable notice during business hours. During the continuance of any Event of Default here under or under any
Transaction Documents, the Buyer shall, at the Company’s expense, have the right to make additional inspections without
providing advance notice.

 

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(g)          Maintain
Insurance. The Company and its subsidiaries shall at all times insure and keep insured with insurance companies acceptable
to Buyer, all insurable property owned by the Company and its subsidiaries, respectively and as applicable, which is of a character
usually insured by companies similarly situated and operating like properties, against loss or damage from environmental, fire and
such other hazards or risks as are customarily insured against by companies similarly situated and operating like properties; and
shall similarly insure employers’, public and professional liability risks. Prior to the Closing Date, the Company shall deliver
to the Buyer a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Section.
All such policies of insurance must be satisfactory to Buyer in relation to the amount and term of the Note and type and value
of the Assets of the Company and the assets and properties of its subsidiaries, shall identify Buyer as sole/lender’s loss payee
and as an additional insured. In the event the Company fails to provide Buyer with evidence of the insurance coverage required
by this Section or at any time hereafter shall fail to obtain or maintain any of the policies of insurance required above, or to
pay any premium in whole or in part relating thereto, then the Buyer, without waiving or releasing any obligation or default by
the Company hereunder, may at any time (but shall be under no obligation to so act), obtain and maintain in such policies of insurance
and pay such premium and take any other action with respect thereto, which Buyer deems advisable. This insurance coverage: (i)
may, but need not, protect the Company’s interest in such property; and (ii) may not pay any claim made by, or against, the Company
in connection with such property. The Company may later request that the Buyer cancel any such insurance purchased by Buyer, but
only after providing Buyer with evidence that the insurance coverage required by this Section is in force. The costs of such insurance
obtained by Buyer, through and including the effective date such insurance coverage is canceled or expires, shall be payable on
demand by the Company to Buyer, together with interest at the highest non-usurious rate permitted by law on such amounts until
repaid and any other charges by Buyer in connection with the placement of such insurance. The costs of such insurance, which may
be greater than the cost of insurance which the Company may be able to obtain on its own, together with interest thereon at the
highest non-usurious rate permitted by Law and any other charges incurred by Buyer in connection with the placement of such insurance
may be added to the total Obligations due and owing by the Company hereunder and under the Note to the extent not paid by the Company.

 

(h)          Reporting
Status; Listing. The Company shall, on or about forty-five (45) days from the Effective Date (the “Reporting Date”):
(i) provide and deliver to Buyer a complete copy of the Audited Financials containing an unqualified opinion of the Accounting
Firm; and (ii) file a Form 10 and comply with any other requirements to become a full reporting Company required to file reports
with the SEC under the Exchange Act, and have its Common Stock registered with the SEC under Section 12 of the Exchange Act, and
provide to Buyer evidence reasonably acceptable to the Buyer of same. In addition, immediately after the Form 10 becomes effective
with the SEC, on or about sixty (60) days after the Reporting Date, the Company shall file all required applications and documents
to have its Common Stock quoted and listed in the OTC Bulletin Board, which shall be the Company’s Principal Trading Market. In
that regard, the Company shall file all required applications, reports, statements and all other documents, and pay all required
fees and costs, necessary or required in order for the Company to accomplish the foregoing requirements on or about sixty (60)
days from and after the Reporting Date, so long as Buyer owns, legally or beneficially, any of the Securities, the Company shall:
(i) file in a timely manner all reports required to be filed under the Securities Act, the Exchange Act or any securities Laws
and regulations thereof applicable to the Company of any state of the United States, or by the rules and regulations of the Principal
Trading Market, and, to provide a copy thereof to the Buyer promptly after such filing; (ii) not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations there under would otherwise
permit such termination; (iii) if required by the rules and regulations of the Principal Trading Market, promptly secure the listing
of the Incentive Shares or any other shares of Common Stock issuable to Buyer under any of the Transaction Documents upon the Principal
Trading Market (subject to official notice of issuance) and, take all reasonable action under its control to maintain the continued
listing, quotation and trading of its Common Stock (including, without limitation, the Incentive Shares or any other shares of
Common Stock issuable to Buyer under any of the Transaction Documents) on the Principal Trading Market, and the Company shall
comply in all respects with the Company’s reporting, filing and other Obligations under the bylaws or rules of the Principal Trading
Market, the Financial Industry Regulatory Authority, Inc. and such other Governmental Authorities, as applicable. The Company shall
promptly provide to Buyer copies of any notices it receives from the SEC or any Principal Trading Market, to the extent any such
notices could in any way have or be reasonably expected to have a Material Adverse Effect.

 

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(i)          Rule
144. With a view to making available to Buyer the benefits of Rule 144 under the Securities Act (“Rule
144”), or any similar rule or regulation of the SEC that may at any time permit Buyer to sell any of the Securities
to the public without registration, the Company represents and, warrants that: (i) on or about sixty (60) days after the Reporting
Date, the Company shall be subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act; (ii) sixty (60) days from
and after the Reporting Date, the Company will file all required reports under Section 13
or 15(d) of the Exchange Act, as applicable; and (iii) the Company is not an issuer defined as a “Shell Company”
(as hereinafter defined). For the purposes hereof, the term “Shell Company” shall mean an issuer that
meets the description defined under Rule 144. In addition, on or about sixty (60) days from and after the Reporting Date, so long
as Buyer owns, legally or beneficially, any of the Securities, the Company shall, at its sole expense:

 

(i)          Make,
keep and ensure that adequate current public information with respect to the Company, as required in accordance with Rule 144,
is publicly available;

 

(ii)         furnish
to the Buyer, promptly upon reasonable request: (A) a written statement by the Company that it has complied with the reporting
requirements of Rule 144, the Securities Act and the Exchange Act; and (b) such other information as may be reasonably requested
by Buyer to permit the Buyer to sell any of the Securities pursuant to Rule 144 without limitation or restriction; and

 

(iii)        promptly
at the request of Buyer, give the Company’s transfer agent (the “Transfer Agent”) instructions to the
effect that, upon the Transfer Agent’s receipt from Buyer of a certificate (a “Rule 144 Certificate”)
certifying that Buyer’s holding period (as determined in accordance with the provisions of Rule 144) for any portion of
the Securities which Buyer proposes to sell (or any portion of such Securities which Buyer is not presently selling, but for which
Buyer desires to remove any restrictive legends applicable thereto) (the “Securities Being Sold”) is not less
than six (6) months, and receipt by the Transfer Agent of the “Rule 144 Opinion” (as hereinafter defined) from the
Company or its counsel (or from Buyer and its counsel as permitted below), the Transfer Agent is to effect the transfer (or issuance
of a new certificate without restrictive legends, if applicable) of the Securities Being Sold and issue to Buyer or transferee(s)
thereof one or more stock certificates representing the transferred (or reissued) Securities Being Sold without any restrictive
legend and without recording any restrictions on the transferability of such shares on the Transfer Agent’s books and records.
In this regard, upon Buyer’s request, the Company shall have an affirmative obligation to cause its counsel to promptly
issue to the Transfer Agent a legal opinion providing that, based on the Rule 144 Certificate, the Securities Being Sold may be
sold pursuant to the provisions of Rule 144, even in the absence of an effective registration statement, or re-issued without
any restrictive legends pursuant to the provisions of Rule 144, even in the absence of an effective
registration statement (the “Rule 144 Opinion”). If the Transfer Agent requires any additional documentation
in connection with any proposed transfer (or re-issuance) by Buyer of any Securities Being Sold, the Company shall promptly deliver
or cause to be delivered to the Transfer Agent or to any other Person, all such additional documentation as may be necessary to
effectuate the transfer (or re-issuance) of the Securities Being Sold and the issuance of an unlegend certificate to any such
Buyer or any transferee thereof, all at the Company’s expense. Any and all fees, charges or expenses, including, without
limitation, attorneys’ fees and costs, incurred by Buyer in connection with issuance of any Securities, or the removal
of any restrictive legends thereon, or the transfer of any such Securities to any assignee of Buyer, shall be paid by the Company,
and if not paid by the Company, the Buyer may, but shall not be required to, pay any such fees, charges or expenses, and the amount
thereof, together with interest thereon at the highest non-usurious rate permitted by law, from the date of outlay, until paid
in full, shall be due and payable by the Company to Buyer immediately upon demand therefor, and all such amounts advanced by
the Buyer shall be additional sums advanced and due under the Note and secured under the Transaction Documents.

 

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(j)          Matters
With Respect to Securities.

 

(i)          Issuance
of Conversion Shares. The parties hereto acknowledge that pursuant to the terms of the Note, Buyer has the right, at its discretion,
to convert amounts due under the Note into Common Stock in accordance with the terms of the Note. In the event, for any reason,
the Company fails to issue, or cause the Transfer Agent to issue, any portion of the Common Stock issuable upon conversion of the
Note (the “Conversion Shares”) to Buyer in connection with the exercise by Buyer of any of its conversion rights
under the Note, then the parties hereto acknowledge that Buyer shall irrevocably be entitled to deliver to the Transfer Agent,
on behalf of itself and the Company, a “Conversion Notice” (as defined in the Note) requesting the issuance of the Conversion
Shares then issuable in accordance with the terms of the Note, and the Transfer Agent, provided they are the acting transfer agent
for the Company at the time, shall, and the Company hereby irrevocably authorizes and directs the Transfer Agent to, without any
further confirmation or instructions from the Company, issue the Conversion Shares applicable to the Conversion Notice then being
exercised, and surrender to a nationally recognized overnight courier for delivery to Buyer at the address specified in the Conversion
Notice, a certificate of the Common Stock of the Company, registered in the name of Buyer, for the number of Conversion Shares
to which Buyer shall be then entitled under the Note, as set forth in the Conversion Notice.

 

(ii)         Issuance
of Additional Common Stock Under Section 7.5. The parties hereto acknowledge that pursuant to Section 7.5 below, the Company
has agreed to issue, simultaneously with the execution of this Agreement and in the future, certain shares of the Company’s Common
Stock in accordance with the terms of Section 7.5 below. In the event, for any reason, the Company fails to issue, or cause its
Transfer Agent to issue, any portion of the Common Stock issuable to Buyer under Section 7.5, either now or in the future, then
the parties hereto acknowledge that Buyer shall irrevocably be entitled to deliver to the Transfer Agent, on behalf of itself and
the Company, a written instruction requesting the issuance of the shares of Common Stock then issuable in accordance with Section
7.5 below, and the Transfer Agent, provided they are the acting transfer agent for the Company at the time, shall, and the Company
hereby irrevocably authorizes and directs the Transfer Agent to, without any further confirmation or instructions from the Company,
issue such shares of the Company’s Common Stock as directed by Buyer, and surrender to a nationally recognized overnight courier
for delivery to Buyer at the address specified in the Buyer’s notice, a certificate of the Common Stock of the Company, registered
in the name of Buyer, for the number of shares of Common Stock issuable to Buyer in accordance with Section 7.5.

 

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(iii)        Removal
of Restrictive Legends. In the event that Buyer has any shares of the Company’s Common Stock bearing any restrictive
legends, and Buyer, through its counsel or other representatives, submits to the Transfer Agent any such shares for the removal
of the restrictive legends thereon, whether in connection with a sale of such shares pursuant to any exempt ion
to the registration requirements under the Securities Act, or otherwise, and the Company and or its counsel refuses or fails for
any reason to render an opinion of counsel or any other documents or certificates required for the removal of the restrictive
legends, then the Company hereby agrees and acknowledges that Buyer is hereby irrevocably and expressly authorized to have counsel
to Buyer render any and all opinions and other certificates or instruments which may be required for purposes of removing such
restrictive legends, and the Company hereby irrevocably authorizes and directs the Transfer Agent to, without any further confirmation
or instructions from the Company, issue any such shares without restrictive legends as instructed by Buyer, and surrender to a
common carrier for overnight delivery to the address as specified by Buyer, certificates, registered in the name of Buyer or its
designees, representing the shares of Common Stock to which Buyer is entitled, without any restrictive legends and otherwise freely
transferable on the books and records of the Company.

 

(iv)        Authorized
Agent of the Company. The Company hereby irrevocably appoints the Buyer and its counsel and its representatives, each as the
Company’s duly authorized agent and attorney-in-fact for the Company for the purposes of authorizing and instructing the Transfer
Agent to process issuances, transfers and legend removals upon instructions from Buyer, or any counsel or representatives of Buyer,
as specifically contemplated herein. The authorization and power of attorney granted hereby is coupled with an interest and is
irrevocable so long as any obligations of the Company under Note remain outstanding, and so long as the Buyer owns or has the right
to receive, any shares of the Company’s Common Stock hereunder. In this regard, the Company hereby confirms to the Transfer Agent
and the Buyer that it can NOT and will NOT give instructions, including stop orders or otherwise, inconsistent with
the terms of this Agreement with regard to the matters contemplated herein, and that the Buyer shall have the absolute right to
provide a copy of this Agreement to the Transfer Agent as evidence of the Company’s irrevocable authority for Buyer and Transfer
Agent to process issuances, transfers and legend removals upon instructions from Buyer, or any counsel or representatives of Buyer,
as specifically contemplated herein, without any further instructions, orders or confirmations from the Company.

 

(v)         Injunction
and Specific Performance. The Company specifically acknowledges and agrees that in the event of a breach or threatened breach
by the Company of any provision of this Section 7.2(j), the Buyer will be irreparably damaged and that damages at law would be an
inadequate remedy if this Agreement were not specifically enforced. Therefore, in the event of a breach or threatened breach of
any provision of this Section 7.2(j) by the Company, the Buyer shall be entitled to obtain, in addition to all other rights or remedies
Buyer may have, at law or in equity, an injunction restraining such breach, without being required to show any actual damage or
to post any bond or other security, and/or to a decree for specific performance of the provisions of this Section 7.2(j).

 

7.3         Reporting
Requirements. The Company shall agree as follows:

 

(a)          Annual
Financial Statements Before Reporting Date. At or before the time required by the Principal Trading Market for filing of the Company’s
Form 10-K (or equivalent filing), to file with the Principal Trading Market, and to deliver a copy of such filing to the Buyer,
of the annual financial statements of the Company, including all information required by the Principal
Trading Market to be included in a Form 10-K filing (or its equivalent); and

 

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(b)          Annual
Audited Financial Statements After Reporting Date. From and after the Reporting Date, at or before the time required by the
SEC for filing of the Company’s Form 10-K, to file with the SEC, and to deliver a copy of such filing to the Buyer, of the annual
audited financial statements of the Company, including all information required by the SEC to be included in a Form 10-K filing;
and

 

(c)          Quarterly
Financial Statements Before Reporting Date. At or before the time required by the Principal Trading Market for filing of the
Company’s Form 10-Q (or equivalent filing), to file with the Principal Trading Market, and to deliver a copy of such filing to
the Buyer, of the quarterly financial statements of the Company, including all information required by the Principal Trading Market
to be included in a Form 10-Q filing (or its equivalent); and

 

(d)          Quarterly
Financial Statements After Reporting Date. From and after the Reporting Date, at or before the time required by the SEC for
filing of the Company’s Form 10-Q, to file with the SEC, and to deliver a copy of such filing to the Buyer, of the quarterly financial
statements of the Company, including all information required by the SEC to be included in a Form 10-Q filing; and

 

(e)          Monthly
Compliance Certificate. On the first  10th day of every month, the Company shall deliver to the Buyer a
compliance certificate in substantial substance and form as attached hereto as Exhibit “B”, including
a balance sheet and income statement of the Company, on a consolidated basis, as of the then ended calendar month.

 

7.4          Fees
and Expenses.

 

(a)          Transaction
Fees. The Company agrees to pay to the Buyer a funding fee equal to five percent (5.0%) of the original face amount of the
Note, due and payable at the Closing. Such fee may be withheld and deducted by Buyer from the proceeds of the Note otherwise payable
to the Company. In addition, the Company agrees to pay to its counsel, Lucosky Brookman LLP, a fee pursuant to a separate agreement
in connection with such firm’s work in connection with such firm’s preparation and filing of an S-1 registration statement for
the Company, which fees the Company agrees may be withheld and deducted by the Buyer from the proceeds of the Note otherwise payable
to the Company, and paid directly to such law firm.

 

(b)          Due
Diligence Fees. The Company agrees to pay to the Buyer a due diligence fee equal to Ten Thousand and No/100 Dollars ($10,000.00),
which shall be due and payable in full on the Effective Date, or any remaining portion thereof shall be due and payable on the
Effective Date if a portion of such fee was paid upon the execution of any term sheet related to this Agreement.

 

(c)          Document
Review and Legal Fees. The Company agrees to pay to the Buyer or its counsel a document review and legal fee equal to Ten Thousand
and No/100 Dollars ($10,000.00), which shall be due and payable in full on the Effective Date, or any remaining portion thereof
shall be due and payable on the Effective Date if a portion of such fee was paid upon the execution of any term sheet related to
this Agreement. The Company also agrees to be responsible for the prompt payment of all legal fees and expenses of the Company
and its own counsel and other professionals incurred by the Company in connection with the negotiation and execution of this Agreement
and the Transaction Documents.

 

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(d)          Other
Fees. The Company also agrees to pay to the Buyer (or any designee of the Buyer), upon demand, or to otherwise be responsible
for the payment of, any and all other costs, fees and expenses, including the reasonable fees, costs, expenses and disbursements
of counsel for the Buyer and of any experts and agents, which the Buyer may incur or which may otherwise be due and payable in
connection with: (i) the administration, amendment, waiver or other modification or termination of this Agreement or any other
Transaction Documents; (ii) any documentary stamp taxes, intangibles taxes, recording fees, filing fees, or other similar taxes,
fees or charges imposed by or due to any Governmental Authority in connection with this Agreement or any other Transaction Documents; (iii) the exercise or enforcement of any of the rights of the Buyer under this Agreement or the Transaction Documents; or (iv)
the failure by the Company to perform or observe any of the provisions of this Agreement or any of the Transaction Documents. Included
in the foregoing shall be the amount of all expenses paid or incurred by Buyer in consulting with counsel concerning any of its
rights under this Agreement or any other Transaction Document or under applicable law. To the extent any such costs, fees, charges,
taxes or expenses are incurred prior to the funding of proceeds from the Closing, same shall be paid directly from the proceeds
of the Closing. All such costs and expenses, if not so immediately paid when due or upon demand thereof, shall bear interest from
the date of outlay until paid, at the highest rate set forth in the Debenture, or if none is so stated, the highest rate allowed
by law. All of such costs and expenses shall be additional Obligations of the Company to Buyer secured under the Transaction Documents.
The provisions of this Subsection shall survive the termination of this Agreement. Notwithstanding anything which may be contained
in this Section 7.4(d) to the contrary, the only cash fees and expenses (other than stamp and UCC Financing Statement filing expenses)
which shall be assessed by the Buyer upon Closing are provided in Sections 7.4(a), (b) and (c).

 

7.5          Incentive
Shares.

 

(a)          Share
Issuance. The Company shall pay to Buyer a fee for corporate advisory and investment banking services provided by the Buyer
to the Company prior to the Effective Date by issuing to Buyer that number of shares of the Company’s Common Stock that
equal to a dollar amount equal to $200,000.00 (the “Share Value”). For purposes of determining the number
of Incentive Shares issuable to Buyer under this Section 7.5(a), the Company’s Common Stock shall be valued at the volume
weighted average price as of the close of the business day immediately prior to the date the Company executes this Agreement (the
“Valuation Date”), as reported by Bloomberg (the “VWAP”). The
Buyer shall confirm to the Company in writing, the VWAP for the Common Stock as of the Valuation Date, and the corresponding number
of Incentive Shares issuable to the Buyer based on such price. The Company shall instruct its Transfer Agent to issue certificates
representing the Incentive Shares issuable to the Buyer immediately upon the Company’s execution of this Agreement, and
shall cause its Transfer Agent to deliver such certificates to Buyer within five (5) business days from the date the Company
executes this Agreement. In the event such certificates representing the Incentive Shares issuable hereunder shall not be delivered
to the Buyer within said five (5) business day period, same shall be an immediate default under this Agreement and the other Transaction
Documents. The Incentive Shares, when issued, shall be deemed to be validly issued, fully paid, and non-assessable shares of the
Company’s Common Stock. The Incentive Shares are and shall be deemed fully earned in connection with the corporate advisory
and investment banking services provided by the Buyer to the Company prior to the Effective Date.

 

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(b)          Adjustments.
It is the intention of the Company and Buyer that by a date that is twelve (12) months after the Valuation Date (the “Twelve
Month Valuation Date”) the Buyer shall have generated net proceeds from the sale of the Incentive Shares equal
to the Share Value. The Buyer shall have the right to sell the Incentive Shares in the Principal Trading Market or otherwise, at
any time in accordance with applicable securities laws. At any time the Buyer may elect after the Twelve Month Valuation Date (or
prior to such Twelve Month Valuation Date, if Buyer has sold all Incentive Shares prior to such Twelve Month Valuation Date), the
Buyer may deliver to the Company a reconciliation statement showing the net proceeds actually received by the Buyer from the sale
of the Incentive Shares (the “Sale Reconciliation”). If, as of the date of the delivery by Buyer of the
Sale Reconciliation, the Buyer has not realized net proceeds from the sale of such Incentive Shares equal to at least the Share
Value, as shown on the Sale Reconciliation, then the Company shall immediately take all required action necessary or required in
order to cause the issuance of additional shares of Common Stock to the Buyer in an amount sufficient such that, when sold and
the net proceeds thereof are added to the net proceeds from the sale of any of the previously issued and sold Incentive Shares,
the Buyer shall have received total net funds equal to the Share Value. If additional shares of Common Stock are issued pursuant
to the immediately preceding sentence, and after the sale of such additional issued shares of Common Stock, the Buyer still has
not received net proceeds equal to at least the Share Value, then the Company shall again be required to immediately take all required
action necessary or required in order to cause the issuance of additional shares of Common Stock to the Buyer as contemplated above,
and such additional issuances shall continue until the Buyer has received net proceeds from the sale of such Common Stock equal
to the Share Value. In the event the Buyer receives net proceeds from the sale of Incentive Shares equal to the Share Value, and
the Buyer still has Incentive Shares remaining to be sold, the Buyer shall return all such remaining Incentive Shares to the Company.
In the event additional Common Stock is required to be issued as outlined above, the Company shall instruct its transfer agent
to issue certificates representing such additional shares of Common Stock to the Buyer immediately subsequent to the Buyer’s notification
to the Company that additional shares of Common Stock are issuable hereunder, and the Company shall in any event cause its transfer
agent to deliver such certificates to Buyer within five (5) business days following the date Buyer notifies the Company that additional
shares of Common Stock are to be issued hereunder. In the event such certificates representing such additional shares of Common
Stock issuable hereunder shall not be delivered to the Buyer within said five (5) business day period, same shall be an immediate
default under this Agreement and the Transaction Documents. Notwithstanding anything contained in this Section 7.5 to the contrary,
at any time on or prior to the Twelve Month Valuation Date, but not thereafter (unless agreed to by the Buyer), the Company shall
have the right, at any time during such period, to redeem any Incentive Shares then in the Buyer’s possession for an amount payable
by the Company to Buyer in cleared U.S. funds equal to the Share Value, less any net cash proceeds received by the Buyer from any
previous sales of Incentive Shares. Upon Buyer’s receipt of such cash payment in accordance with the immediately preceding sentence,
the Buyer shall return any then remaining Incentive Shares in its possession back to the Company.

 

7.6           Share
Reserve. The Company shall take all action reasonably necessary to at all times have authorized, and reserved for the purpose
of issuance, such number of shares of Common Stock as shall be necessary to effect the issuance of the Conversion Shares and Incentive
Shares under this Agreement or any other Transaction Documents (collectively, the “Share Reserve”). The
Company represents that it has sufficient authorized and unissued shares of Common Stock available to create the Share Reserve
after considering all other commitments that may require the issuance of Common Stock. The Company shall take all action reasonably
necessary to at all times have authorized, and reserved for the purpose of issuance, such number of shares of Common Stock as shall
be necessary to effect the full conversion of the Note and issuance of all Incentive Shares that may be issuable hereunder. If
at any time the Share Reserve is insufficient to effect the full conversion of the Note and issuance of all Incentive Shares that
may be issuable hereunder, the Company shall take all required measures to implement an increase of the Share Reserve accordingly.
If the Company does not have sufficient authorized and unissued shares of Common Stock available to increase the Share Reserve,
the Company shall call and hold a special meeting of the shareholders within twenty (20) business days of such occurrence, for
the sole purpose of increasing the number of shares authorized. The Company’s management shall recommend to the shareholders to
vote in favor of increasing the number of shares of Common Stock authorized.

 

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ARTICLE VIII

CONDITIONS PRECEDENT TO THE COMPANY’S
OBLIGATIONS TO SELL

 

The obligation of
the Company hereunder to issue and sell the Securities to the Buyer at the Closings is subject to the satisfaction, at or before
the respective Closing Dates, of each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion:

 

8.1           Buyer
shall have executed the Transaction Documents and delivered them to the Company.

 

8.2           The
representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Dates as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Dates.

 

ARTICLE IX

CONDITIONS PRECEDENT TO THE BUYER’S OBLIGATIONS
TO PURCHASE

 

The obligation of
the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date, of each
of the following conditions (in addition to any other conditions precedent elsewhere in this Agreement), provided that these conditions
are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

9.1         The Company
shall have executed and delivered the Transaction Documents and delivered the same to the Buyer.

 

9.2           The
representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any
of such representations and warranties are already qualified as to materiality in Article VI above, in which case, such representations
and warranties shall be true and correct in all respects without further qualification) as of the date when made and as of the
Closing Date as though made at that time (except for representations and warranties that speak as of a specific date) and the Company
shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

9.3           The
Buyer shall have received an opinion of counsel from counsel to the Company in a form satisfactory to the Buyer and its counsel.

 

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9.4           The
Buyer shall have issued an irrevocable issuance instruction letter and board resolution, authorizing the issuance of the Incentive
Shares and directing its transfer agent to issue and deliver the Incentive Shares to Buyer or its designee.

 

9.5           The
Company shall have executed and delivered to Buyer a closing certificate in substance and form required by Buyer, which closing
certificate shall include and attach as exhibits: (i) a true copy of a certificate of good standing evidencing the formation and
good standing of the Company from the secretary of state (or comparable office) from the jurisdiction in which the Company is incorporated,
as of a date within ten (10) days of the Closing Date; (ii) the Company’s Certificate of Incorporation; (iii) the Company’s Bylaws;
and (iv) copies of the resolutions of the board of directors of the Company consistent with Section 6.3, as adopted by the Company’s
board of directors in a form reasonably acceptable to Buyer.

 

9.6           No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect.

 

9.7           The
Company shall have executed such other agreements, certificates, confirmations or resolutions as the Buyer may required to consummate
the transactions contemplated by this Agreement and the Transaction Documents, including a closing statement and joint disbursement
instructions as may be required by Buyer.

 

ARTICLE X

INDEMNIFICATION

 

10.1         Company’s
Obligation to Indemnify. In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the
Securities hereunder, and in addition to all of the Company’s other obligations under this Agreement, the Company and
its subsidiaries, jointly and severally, hereby agree to defend and indemnify Buyer and its Affiliates and subsidiaries and
their respective directors, officers, employees, agents and representatives, and the successors and assigns of each of them
(collectively, the “Buyer Indemnified Parties”) and Company and its subsidiaries do hereby
agree to hold the Buyer Indemnified Parties forever harmless, from and against any and all Claims made, brought or asserted
against the Buyer Indemnified Parties, or any one of them, and Company and its subsidiaries hereby agree to pay or reimburse
the Buyer Indemnified Parties for any and all Claims payable by any of the Buyer Indemnified Parties to any Person, including
reasonable attorneys’ and paralegals’ fees and expenses, court costs, settlement amounts, costs of investigation
and interest thereon from the time such amounts are due at the highest non-usurious rate of interest permitted by applicable
Law, through all negotiations, mediations, arbitrations, trial and appellate levels, as a result of, or arising out of, or
relating to: (i) any misrepresentation or breach of any representation or warranty made by the Company or any of its
subsidiaries in this Agreement, the Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby; (ii) any breach of any covenant, agreement or Obligation of the Company or its subsidiaries contained in
this Agreement, the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby; or
(iii) any Claims brought or made against the Buyer Indemnified Parties, or any one of them, by a third party and arising out
of or resulting from the execution, delivery, performance or enforcement of this Agreement, the Transaction Documents or any
other instrument, document or agreement executed pursuant hereto or thereto, any transaction financed or to be financed in
whole or in part, directly or indirectly, with the proceeds of the issuance of the Note, or the status of the Buyer or
holder of any of the Securities, as a buyer of such Securities in the Company. To the extent that the foregoing undertaking
by the Company and its subsidiaries may be unenforceable for any reason, the Company and its subsidiaries shall make the
maximum contribution to the payment and satisfaction of each of the Claims covered hereby, which is permissible under
applicable Law.

 

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ARTICLE XI

MISCELLANEOUS

 

11.1         Notices.
All notices of request, demand and other communications hereunder shall be addressed to the parties as follows:

 

	If to the Company:	Millennium Healthcare, Inc.
	 	400 Garden City Plaza
	 	Garden City NY 11530
	 	Suite 440
	 	Attn: Mr. Dominick Sartorio, CEO.
	 	Telephone: 516 628-5500
	 	Facsimile: 516 628-5400
	 	E-Mail: dominick@millenniumhcs.com
	 	 
	With a copy to:	Seth Brookman, Esq.
	(which shall not constitute notice)	Lucosky Brookman, LLP
	 	33 Wood Avenue South, 6th” Floor
	 	Iselin, New Jersey 08830
	 	Phone: (732) 395-4400
	 	Fax: (732) 395-4401
	 	Email: sbrookman@lucbro.com
	 	 
	If to the Buyer:	TCA Global Credit Master Fund, LP 
	 	1404 Rodman Street
	 	Hollywood, FL 33020
	 	Attn: Mr. Robert Press
	 	Telephone: (786) 323-1650
	 	Facsimile: (786) 323-1651
	 	E-Mail: bpress@trafcap.com
	 	 
	With a copy to:	David Kahan, P.A.
	 	6420 Congress Ave., Suite 1800 
	 	Boca Raton, FL 33487
	 	Attn: David Kahan, Esq. 
	 	Telephone: (561) 672-8330
	 	Facsimile: (561) 672-8301
	 	E-Mail: david@dkpalaw.com

 

unless the address
is changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed delivered: (i)
if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below, then three
(3) business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal Express, UPS
or other nationally recognized overnight courier service, next business morning delivery, then one (1) business day after deposit
of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand delivered, then upon hand delivery thereof
to the address indicated on or prior to 5:00 p.m., EST, on a business day. Any notice hand delivered after 5:00 p.m., EST, shall
be deemed delivered on the following business day. Notwithstanding the foregoing, notice, consents, waivers or other communications
referred to in this Agreement may be sent by facsimile, e-mail, or other method of delivery, but shall be deemed to have been delivered
only when the sending party has confirmed (by reply e-mail or some other form of written confirmation from the receiving party)
that the notice has been received by the other party.

 

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11.2         Entire
Agreement. This Agreement, including the Exhibits and Schedules attached hereto and the documents delivered pursuant hereto,
including the Transaction Documents, set forth all the promises, covenants, agreements, conditions and understandings between
the parties hereto with respect to the subject matter hereof and thereof, and supersede all prior and contemporaneous agreements,
understandings, inducements or conditions, expressed or implied, oral or written, except as contained herein and in the Transaction
Documents.

 

11.3         Assignment.
The Buyer may at any time assign its rights in this Agreement or any of the other Transaction Documents, or any part thereof, without
the Company’s consent or approval. In addition, the Buyer may at any time sell one or more participations in the Note. The Company
may not sell or assign this Agreement or any of the Transaction Documents, or any portion thereof, either voluntarily or by operation
of law, nor delegate any of its duties of obligations hereunder or thereunder, without the prior written consent of the Buyer,
which consent may be withheld in Buyer’s sole and absolute discretion.

 

11.4         Binding
Effect. This Agreement shall be binding upon the parties hereto, their respective successors and permitted assigns.

 

11.5         Amendment.
The parties hereby irrevocably agree that no attempted amendment, modification, or change of this Agreement shall be valid and
effective, unless the parties shall unanimously agree in writing to such amendment, modification or change.

 

11.6         No
Waiver. No waiver of any provision of this Agreement shall be effective, unless it is in writing and signed by the party against
whom it is asserted, and any such written waiver shall only be applicable to the specific instance to which it relates and shall
not be deemed to be a continuing or future waiver.

 

11.7         Gender
and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or
plural, as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

11.8         Counterparts.
This Agreement and any amendments hereto may be executed in one or more counterparts, each of which shall be deemed an original
and all of which together will constitute one and the same instrument.

 

11.9         Electronic
Signatures. The Buyer is hereby authorized to rely upon and accept as an original for all purposes, this Agreement, any other
Transaction Document or other communication which is sent to Buyer or its counsel by facsimile, telegraphic, .pdf, or other electronic
transmission (each, a “Communication”) which Buyer or its counsel in good faith believes has
been signed by the Company and has been delivered to Buyer or its counsel by a properly authorized representative of the Company,
whether or not that is in fact the case. Notwithstanding the foregoing, the Buyer shall not be obligated to accept any such Communication
as an original and may in any instance require that an original document be submitted to Buyer in lieu of, or in addition to,
any such Communication.

 

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11.10         Headings.
The article and section headings contained in this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of the Agreement.

 

11.11         Governing
Law. This Agreement shall be construed in accordance with the laws of the State of Nevada, without regard to the principles
of conflicts of laws. The parties further agree that any action between them shall be heard in Clark County, Nevada and expressly
consent to the jurisdiction and venue of the State Courts sitting in Clark County, Nevada and the United States District Court
for the District of Nevada for the adjudication of any civil action asserted pursuant to this Agreement; provided, however, nothing
contained herein shall limit the Buyer’s ability to bring suit or enforce this Agreement or any other Transaction Documents in
any other jurisdiction.

 

11.12         Further
Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things as may
be reasonably required to carry out the intent and purposes of this Agreement.

 

11.13         Survival.
All covenants, agreements, representations and warranties made by the Company herein shall, notwithstanding any investigation by
the Buyer, be deemed material and relied upon by Buyer and shall survive the making and execution of this Agreement and the Transaction
Documents and the issuance of the Note, and shall be deemed to be continuing representations and warranties until such time as
the Company has fulfilled all of its Obligations to Buyer, the Note has been indefeasibly repaid in full and Buyer no longer owns
any of the Incentive Shares.

 

11.14         Time
is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’
Obligations under this Agreement. The parties agree that in the event that any date on which performance is to occur falls on a
Saturday, Sunday or state or national holiday, then the time for such performance shall be extended until the next business day
thereafter occurring.

 

11.15         Joint
Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents shall not,
solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

11.16         Severability.
If any one of the provisions contained in this Agreement, for any reason, shall be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement
shall remain in full force and effect and be construed as if the invalid, illegal or unenforceable provision had never been contained
herein.

 

11.17         No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	28

    	 

    

 

11.18         WAIVER
OF JURY TRIAL. THE BUYER AND THE COMPANY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES, IRREVOCABLY, THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING BASED HEREON,
OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OTHER AGREEMENT EXECUTED
OR CONTEMPLATED TO BE EXECUTED IN CONJUNCTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH THE
BUYER AND THE COMPANY ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BUYER TO PURCHASE THE DEBENTURES.

 

11.19         Compliance
with Federal Law. The Company shall: (i) ensure that no Person who owns a controlling interest in or otherwise controls the
Company is or shall at any time be listed on the Specially Designated Nationals and Blocked Person List or other similar lists
maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury,
included in any Executive Orders or in any other similar lists of any Governmental Authority; (ii) not use or permit the use of
the proceeds of the purchase of the Note to violate any of the foreign asset control regulations of OFAC or any enabling statute,
Executive Order relating thereto or any other requirements or restrictions imposed by any Governmental Authority; and (iii) comply
with all applicable Lender Secrecy Act (“BSA”) laws and regulations, as amended. As required by federal
law and Buyer’s policies and practices, Buyer may need to obtain, verify and record certain customer identification information
and documentation in connection with opening or maintaining accounts or establishing or continuing to provide services.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	29

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the date and year set forth above.

 

	 	COMPANY:
	 	 
	 	MILLENNIUM
        HEALTHCARE, INC., a Delaware 

corporation

	 	 	 
	 	By:	/s/ Dominick Sartorio
	 	Name:	Dominick Sartorio
	 	Title:	CEO
	 	Date:	9/20/12
	 	 	 
	 	BUYER:
	 	 
	 	TCA GLOBAL CREDIT MASTER FUND, LP
	 	 	 
	 	By:	TCA Global Credit Fund GP, Ltd.
	 	Its:	General Partner
	 	 	 
	 	By:	 
	 	 	Robert Press, Director
	 	 	 
	 	Date:	 

 

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

 

    	30

    	 

    

 

Each of the Subsidiaries listed below is hereby executing this Agreement for the purpose of agreeing to
all of the terms, covenants, provisions, conditions, representations and warranties deemed made and agreed to by each of such Subsidiaries
under and pursuant to this Agreement.

 

	MILLENNIUM PROCOMM SOLUTIONS, INC.	 	MILLENNIUM CODING & BILLING, INC.
	 	 	 	 	 
	By:	/s/ Dominick Sartorio	 	By:	/s/ Dominick Sartorio
	Name:	Dominick Sartorio	 	Name:	Dominick Sartorio
	Title:	CEO	 	Title:	CEO
	 	 	 	 	 
	Date:	9/20/12	 	Date:	9/20/12

 

	MILLENNIUM
    MEDICAL DEVICES, LLC	 	MILLENNIUM VASCULAR 

    MANAGEMENT GROUP, INC.
	 	 	 	 	 
	By:	/s/ Dominick Sartorio	 	By:	/s/ Dominick Sartorio
	Name:	Dominick Sartorio	 	Name:	Dominick Sartorio
	Title:	CEO	 	Title:	CEO
	 	 	 	 	 
	Date:	9/20/12	 	Date:	9/20/12

 

	MILLENNIUM VASCULAR MANAGEMENT 

    GROUP OF STATEN ISLAND, LLC	 	 
	 	 	 	 	 
	By:	/s/ Dominick Sartorio	 	 	 
	Name:	Dominick Sartorio	 	 	 
	Title:	CEO	 	 	 
	 	 	 	 	 
	Date:	9/20/12	 	 	 

 

    	31

    	 

    

 

EXHIBIT “A”

 

FORM OF NOTE

 

    	 

    	 

    

 

EXHIBIT “B”

 

FORM OF COMPLIANCE CERTIFICATE

 

    	 

    	 

    

 

DISCLOSURE SCHEDULES FOR COMPANY AND
ITS SUBSIDIARIESNEITHER THIS NOTE NOR THE SECURITIES THAT ARE ISSUABLE TO THE HOLDER UPON CONVERSION HEREOF (COLLECTIVELY, THE "SECURITIES")
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR
APPLICABLE STATE SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE ISSUER,
THAT REGISTRATION IS NOT REQUIRED UN DER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

BY
ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANTS THAT IT IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT
DESCRIBED IN SEC 6049(B)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF
OF A U NITES STATES PERSON (OTHER TH AN A N EXEMPT RECIPIENT DESCRIBED IN SEC. 6049(B)(4) OF THE INTERNAL REVEN U E CODE AND THE
REGULATIONS THEREUNDER).

 

PROMISSORY
NOTE

 

	 	Garden
    City, New York
	Issuance
    Date: As of August 31, 2012	 
	Effective Date: As of September 24, 2012	 
	 	$375,000.00

 

FOR
VALUE RECEIVED, Millennium Healthcare, Inc., a corporation incorporated under the laws of the State of Delaware and with an office
located at 400 Garden City Plaza, Suite 440, Garden City, NY 11530 (the "Company"), hereby promises to pay to the order
of TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership located at 1404 Rodman Street, Hollywood , FL 33020,
and its successors or assigns (the "Holder"), the principal amount of Three Hundred Seventy-Five Thousand and 00/ 100
United States Dollars (US$375 ,000.00) on or prior to September 24, 2013 (the "Maturity Date"), and to pay interest
on the unpaid principal balance hereof at the rate of twelve percent ( 12%) per annum (the "Applicable
Rate") commencing as of the date the proceeds hereunder are funded to the Company
(the "Funding Date"), in accordance with the terms hereof. This Convertible Promissory Note (this note, and all modifications,
extensions, future advances, supplements, and renewals thereof, and any substitutions therefor, hereinafter referred to as the
"Note") shall be payable in accordance with the terms set faith below.

  

Company
Initials

 

    	 

    	 

    

 

1.Payments
of Principal and Interest.

 

(a)Payment
of Principal. The principal amount of this Note, together with all accrued and unpaid
interest and all other sums due and payable hereunder and/or under the "Security Agreement " or any other "Transaction
Document s" (as both terms are hereinafter defined) , shall be due and payable in full to the Holder on or prior to the Maturity
Date.

 

(b)Monthly
Payments. Interest on the unpaid principal balance of this Note shall accrue at the
Applicable Rate commencing on the Funding Date. In addition, the Company shall make monthly payments to the Holder of interest
only for the first sixty (60) days of this Note, and thereafter monthly payments of principal and interest, commencing on the
twenty-fourth (24th) day
of October, 2012, and on the twenty-fourth (24th) day of each consecutive calendar month thereafter while this Note is outstanding,
until the Maturity Date, all based on the payment and amo11ization schedule attached hereto as Exhibit "A".
Interest shall be computed on the basis of a 360-day year and paid for the actual number of days elapsed. Accrued and unpaid interest
under this Note shall be paid in full on the Maturity Date . Any accrued but unpaid interest shall, at the option of the Holder,
be included, from time to time, in the Conversion Amount (as defined herein).

 

(c)Payment
of Default Interest. Any amount of principal or interest on this Note which is not
paid when due shall bear interest from the date due until such past due amount is paid at a rate of interest equal to the lesser
of: (i) eighteen percent (18%) per annum; or (ii) the highest non-usurious rate permitted by applicable law (the "Default
Rate"). Any accrued but unpaid interest at the Default Rate shall, at the option of the Holder, be included , from time to
time, in the Conversion Amount.

 

(d)Genera
l Payment Provisions. All payment s of principal and interest on this Note shall
be mad e in lawful money of the United States of America by wire transfer to the Holder's wire instruction s set forth below ,
or such other account as the Holder may designate by written notice to the Company from time to time in accordance with the provisions
of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day,
the same shall instead be due on the next succeeding Business Day. For purpose s of this Note, "Business Day" shall
mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Florida are authorized or required
by law or executive order to remain closed. All payment s hereunder shall be applied first towards costs and expenses due under
this Note and any other Transaction Documents, second towards the payment of accrued and unpaid interest und er this Note, and
third toward s the principal outstanding hereunder. Wire Instructions for all sums due and pay able hereunder are as follows:

 

TCA
Global Credit Master Fund. LP (US Dollars)

Correspondent
Bank:

Ban
k of New York

I
Wall Street

New
York, New York 10286

ABA#
02 1 -0000-18

SWIFT:
IRVTUS3N

 

Company
Initials 

 

    	2

    	 

    

 

Beneficiary
Bank:

Caledonian Bank Limited 

A/C Number : 89-000-50977

SWIFT: CBTLKYKY

 

For
Final Credit:

Account
Name: Caledonian Fund Services (Cayman) Limited - Client Bank Account Account

Number: 020 1420308681001

 

Beneficiary
Reference: TCA Global Credit Master Fund, LP A/C # 0201420310849001

 

Address:

TCA
Global Credit Master Fund, LP

c/o
Caledon ian Fund Services (Cayman) Ltd.

P.O.
Box 1043

69
Dr. Roy 's Dri ve Georgetown

Grand
Cayman, KY 1- 1 102 Cayman Islands

 

(e)Optional
Prepayment.At any time prior to the Maturity Date and/or the Conversion Date,
the Company may pre-pay this Note in full or in part, without penalty. Upon prepayment of this Note in full, the Holder shall
have no further rights under this Note (except for such rights that may specifically survive the payment of the Note), including
no rights of conversion.

 

2.Conversion
of Note.At any time and from time to time while this Note i s outstanding on
or after the Funding Date, but only after the occurrence of an Event of Default , this Note may be, at the sole option of the
Holder, convert ible into shares of the Company 's common stock, par value $0.000 1 per share (the "Common Stock"),
in accordance with the terms and conditions set forth in this Section 2.

 

(a)Voluntary
Conversion. At any time while this Note is outstanding on or after the Funding Date,
but only after the occurrence of an Event of Default, the Holder may conve11all or any portion of the outstanding principal ,
accrued and unpaid interest , and any other sums due and payable hereunder or under any of the other Transaction Document s (such
total amount , the "Conversion Amount") into shares of Common
Stock of the Company (the "Conversion Shares") at a price equal
to: (i) the Conversion Amount (the numerator); divided by (ii) eighty five percent (85%) of the lowest daily volume weighted
average price of the Company's Common Stock during the five (5) trading days immediately prior to the Conversion Date (as defined
below) as indicated in the conversion notice (in the form attached hereto as Exhibit " 8 ",
the "Conversion Notice") (the denominator) (the "Conversion
Price").The Holder shall submit a Conversion Notice indicating the amount of the Note being converted , the number of
Conversion Shares issuable upon such conversion , and where the Conversion Shares should be delivered.

 

 (b) The Holder 's Conversion Limitations.

 

Company
Initials

 

    	3

    	 

    

 

(1) The Company shall not effect any conversion of this Note, and the Holder shall not have the
right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the Conversion
Notice submitted by the Holder , the Holder (together with the Holder 's affiliates (as defined herein) and any Persons acting
as a group together with the Holder or any of the Holder 's affiliates) would beneficially own in excess of the Beneficial Ownership
Limitation (as defined herein). To ensure compliance with this restriction , prior to delivery of any Conversion Notice, the Holder
shall have the right to request that the Company provide to the Holder a written statement of the percentage ownership of the
Company 's Common Stock that would by beneficially owned by the Holder and its affiliates in the Company if the Holder converted
such portion of this Note then intended to be converted by Holder. The Company shall , within two (2) Business Days of such request,
provide Holder with the requested information in a written statement, and the Holder shall be entitled to rely on such written
statement from the Company in issuing its Conversion Notice and ensuring that its ownership of the Company's Common Stock is not
in excess of the Beneficial Ownership Limitation . The restriction described in this Section may be waived by Holder, in whole
or in part, upon sixty one (61) days ' prior notice from the Holder
to the Company to increase such percentage .

 

For
purposes of this Note, the "Beneficial Ownership Limitation "
shall be 4.99% of the number of shares of Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note. The limitations contained in this
Section shall apply to a successor holder of this Note . For purposes of this Note, "Person" means an individual,
a limited liability company, a pa11nership, a joint venture , a corporation, a trust, an unincorporated organization or a government
or any department or agency thereof.

 

(c)Mechanics
of Conversion. The conversion of this Note shall be conducted in the following manner:

 

(1) Holder's Delivery Requirements. To convert this Note into shares of Common Stock on any date
set fo11h in the Conversion Notice by the Holder (the "Conversion Date"), the Holder shall transmit by facsimile
or electronic mail (or otherwise deliver) a copy of the fully executed Conversion Notice to the Company (or, under certain circumstances
as set forth below, by delivery of the Conversion Notice to the Company's transfer agent).

 

(2)Company's
Response. Upon receipt by the Company of a copy of a Conversion Notice , the Company shall as soon as practicable , but in no
event later than two (2) Business Days after receipt of such Conversion Notice, send, via facsimile or electronic mail (or otherwise
deliver) a confirmation of receipt of such Conversion Notice (the "Conversion Confirmation") to the Holder indicating
that the Company will process such Conversion Notice in accordance with the terms herein. In the event the Company fails to issue
its Conversion Confirmation within said two (2) Business Day time period, the Holder shall have the absolute and irrevocable right
and authority to deliver the fully executed Conversion Notice to the Company's transfer agent, and pursuant to the terms of the
SPA, the Company's transfer agent shall issue the applicable Conversion Shares to Holder as hereby provided. Within five (5) Business
Days after the date of the Conversion Conformation (or the date of the Conversion Notice, if the Company fails to issue the Conversion
Confirmation) , provided that the Company's transfer agent is participating in
the Depository Trust Company ("DTC") Fast Automated
Securities Transfer ("FAST")
program, the Company shall cause the transfer agent to (or, if for
any reason the Company fails to instruct or cause its transfer agent to so act, then pursuant to the terms of the SPA, the Holder
may request and require the Company's transfer agent to) electronically transmit the applicable Conversion Shares to which the
Holder shall be entitled by crediting the account of the Holder's prime broker with OTC through its Deposit Withdrawal Agent Commission
("DWAC")
system, and provide proof satisfactory to the Holder of such delivery.
In the event that the Company's transfer agent is not participating in the OTC FAST program and is not otherwise OWAC eligible,
within five (5) Business Days after the date of the Conversion Confirmation (or the date of the Conversion Notice, if the Company
fails to issue the Conversion Confirmation), the Company shall instruct and cause its transfer agent to (or, if for any reason
the Company fails to instruct or cause its transfer agent to so act, then pursuant to the terms of the SPA, the Holder may request
and require the Company's transfer agent to) issue and surrender to a nationally recognized overnight courier for delivery to
the address specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of Conversion
Shares to which the Holder shall be entitled. To effect conversions hereunder, the Holder shall not be required to physically
surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon,
has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in
an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s)
converted and the date of such conversion(s). The Holder, and any assignee by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted
principal amount of this Note may be less than the amount stated on the face hereof.

 

Company
Initial

 

    	4

    	 

    

 

(3)Record Holder. The Person(s) entitled to receive the shares of Common
Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder(s) of such shares of Common
Stock as of the Conversion Date.

 

(4)Failure
to Deliver Certificates. If in the case of any Conversion Notice, the certificate or certificates are not delivered to or as
directed by the Holder by the date required hereby, the Holder shall be entitled to elect by written notice to the Company at
any time on or before its receipt of such certificate or certificates, to rescind such Conversion Notice, in which event the Company
shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company
the Common Stock certificates representing the principal amount of this Note unsuccessfully tendered for conversion to the Company
..

 

    	5

    	 

    

 

(5)Obligation
Absolute; Partial Liquidated Damages. The Company's obligations to issue and deliver the Conversion Shares upon conversion
of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by
the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment
against any person or entity or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other person or entity of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other person or entity, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such
Conversion Shares; provided, however, that such delivery shall not
operate as a waiver by the Company of any such action the Company may have against the Hold er. In the event the Holder of
this Note shall elect to convert any or all of the outstanding principal amount hereof and accrued but unpaid interest
thereon in accordance with the terms of this Note, the Company may not refuse conversion based on any claim that the Holder
or anyone associated or affiliated with the Holder has been engaged in any violation of law, agreement or for any other
reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion of all or part of
this Note shall have been sought and obtained , and the Company posts a surety bond for the benefit of the Holder in the
amount of 150% of the outstanding principal amount of this Note, which is subject to the injunction, which bond shall remain
in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable
to such Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion
Shares upon a properly noticed conversion . If the Company
fails for any reason to deliver to the Holder such certificate or certificates representing Conversion Shares pursuant to
timing and delivery requirements of this Note, the Company shall pay to such Holder, in cash, as liquidated damages and not
as a penalty, for each $ 1,000 of principal amount being converted, $ 1.00 per day for each day after the date by which such
certificates should have been delivered until such certificates are delivered. Nothing herein shall limit a Holder's right to
pursue actual damages or declare an Event of Default pursuant this Note or any agreement securing the indebtedness under
this Note for the Company 's failure to deliver Conversion Shares within the period specified herein and such Holder shall
have the right to pursue all remedies available to it hereunder, at law or in equity, including, without limitation, a decree
of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking
to enforce damages pursuant to any other Section hereof or under applicable law. Nothing herein shall prevent the Holder from
having the Conversion Shares issued directly by the Company's transfer agent in accordance with the terms of the SPA, in the
event for any reason the Company fails to issue or deliver, or cause its transfer agent to issue and deliver, the Conversion
Shares to the Holder upon exercise of Holder's conversion rights hereunder. Notwithstanding anything contained in this
Section 2(c)(5) to the contrary, the foregoing penalty shall not apply in the event the failure to deliver the certificates
representing the Conversion Shares is the direct result of any strike, lock out, civil commotion, warlike operation,
invasion, rebellion, hostilities, military or usurped power, sabotage, or through an act of God (each an "Event of
Force Majeure"), provided, however, if an Event of Force Majeure occurs, the certificates representing the
Conversion Shares shall nonetheless be delivered within ten (I0)
Business Days after the date of the Conversion Confirmation (or the date of the Conversion Notice, if the Company fails to
issue the Conversion Confirmation), regardless of the occurrence of an Event of Force Majeure, failure of which shall result
in the imposition of the penalties and other remedies provided in this Section 2(c)(5).

 

(6)Transfer
Taxes. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge
to the Holder hereof for any documentary stamp or similar taxes, or any other issuance or transfer fees of any nature or kind
that may be payable in respect of the issue or delivery of such certificates, any such taxes or fees, if payable, to be paid
by the Company.

 

    	6

    	 

    

 

 (d) Adjustments to Conversion Price.

 

(1)Stock
Dividends and Stock Splits. If the Company, at any time while
this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common
Stock on outstanding shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares,
(iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares,
or (iv) issues, in the event of a reclassification of shares of Common Stock, any shares of capital stock of the Company, then
the Conversion Price shall be multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock (excluding
any treasury shares of the Company) outstanding immediately before such event, and the denominator of which shall be the
number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in the case of a subdivision, combination, or re-classification.

 

(2)Fundamental
Transaction. If, at any time while this Note is outstanding: (i) the Company effects any merger or consolidation of the
Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one
transaction or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other
securities, cash or property , or (iv) the Company effects any reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property
(in any such case, a "Fundamental Transaction"), then upon any subsequent conversion of this Note, the
Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities, cash or property
as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately
prior to such Fundamental Transaction, the holder of one ( 1) share of Common Stock (the "Alternate
Consideration"). For purposes of any such conversion , the determination of the Conversion Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable i n
respect of one ( I ) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the
Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any conversion of this Note following such Fundamental Transaction. To the extent necessary to
effectuate the foregoing provisions , any successor to the Company or surviving entity in such Fundamental Transaction shall
issue to the Holder a new note consistent with the foregoing provisions and evidencing the Holder's right to convert such
note into Alternate Consideration . The terms of any agreement pursuant to which a Fundamental Transaction is effected shall
include terms requiring any such successor or surviving entity to comply with the provisions of this Section and insuring
that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a
Fundamental Transaction.

 

Company
Initial

 

    	7

    	 

    

 

(3)Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision
of this Note, the Company shall promptly deliver to Holder a notice setting forth the Conversion Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment.

 

(4)Notice
to Allow Conversion by Holder. If: (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on
or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights
or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders
of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which
the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or property , or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be
delivered to the Holder at its last address as it shall appear upon the Company's records, at least twenty (20) calendar days
prior to the applicable record or effective date hereinafter specified , a notice stating: (x) the date on which a record is to
be taken for the purpose of such dividend, distribution , redemption, rights or warrants, or if a record is not to be taken, the
date as of which the holders of the Common Stock of record to be entitled to such dividend , distributions , redemption , rights
or warrants are to be determined, or (y) the date on which such reclassification , consolidation, merger , sale, transfer or share
exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of
record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice
or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. The Holder is entitled to convert this Note during the 10-day period commencing on the date of such notice through
the effective date of the event triggering such notice.

 

(e)Reservation
of Common Stock.The Company shall
reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the
conversion of this Note, such number of shares of Common Stock as shall from time to time be sufficient to effect such
conversion, based upon the Conversion Price. If at any time
the Company does not have a sufficient number of Conversion Shares authorized and available, the Company shall immediately
take such action as is required to increase the number of Conversion Shares authorized and available to allow for the Holder
to effectuate a full conversion of this Note at the Conversion Price. Specifically, if the Company does not have sufficient
authorized and unissued shares of Common Stock available to allow for the Holder to effectuate a full conversion of this Note
at the Conversion Price, the Company shall call and hold a special meeting of the shareholders within ten (10) Business
Days of such occurrence, for the sole purpose of increasing the number of shares authorized. The Company's management shall
recommend to the shareholder s to vote in favor of increasing the number of shares of Common Stock authorized.

 

Company
Initial

 

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3.Voting
Rights. The Holder shall have no voting rights under this Note, except as required
by applicable law, including, but not limited to, the Nevada Corporations Law, and as expressly provided in this Note .

 

4.Short
Sales. Holder represents and agrees, as applicable: (i) neither Holder, nor any of
its "Affiliates" (as such term is defined in set forth in Rule 405 of the Securities Act), has, prior to the Effective
Date, entered into or effected any Sh011Sales; and (ii) so long as the Note remains outstanding, neither Holder, nor any of its
Affiliates will enter into or effect any Short Sales. The Company acknowledges and agrees that upon submission of a Conversion
Notice as set forth herein, Holder immediately owns the Common Stock described in the Conversion Notice and any sale of that Common
Stock issuable und er such Conversion Notice would not be considered Short Sales. For purposes herein, "Short Sales"
shall mean entering into any short sale or other hedging transaction which establishes a net short position with respect
to the Company 's Common Stock.

 

5.Secured
Nature of Note. This Note is being issued in connection with a Securities Purchase
Agreement dated of even date herewith by and between the Company and the Holder (the "SPA").
The indebtedness evidenced by this Note is also secured by all of the assets and property of the Company pursuant to
that certain Security Agreement by and between the Company and Holder mad e as of the date hereof (the "Security Agreement").
This Note, the SPA, the Security Agreement, and all other documents and instrument
s heretofore or hereafter executed in connection with the indebtedness evidenced by this Note (whether by the Company or any other
guarantor, or obligor of the indebtedness evidenced hereby), and all modification s, extensions, future advances, and renewal
s thereof, and any substitutions therefor, being herein collectively referred as the "Transaction
Documents. " All of the agreements, conditions, covenant s, provisions , representations, warranties and stipulations
contained in any of the Transaction Documents which are to be kept and performed by the Company are hereby mad e a part of this
Note to the same extent and with the same force and effect as if they were fully set fo1th herein , and the Company covenants
and agrees to keep and perform them, or cause them to be kept or performed , strictly in accordance with their terms.

 

 6. Defaults and Remedies.

 

(a)Events
of Default. The occurrence of any of the following events shall constitute an "Event
of Default" hereunder : (i) the Company shall fail to pay any
installment of interest, principal or other sums due under this Note or any other Transaction Document within three (3)
Business Days of when any such payment shall be due and payable; (ii) the Company makes an assignment for the benefit of
creditors; (iii) any order or decree is rendered by a cou1t which appoints or requires the appointment of a receiver,
liquidator or trustee for the Company, and the order or decree is not vacated within thirty (30) days from the date of entry
thereof; (iv) any order or decree is rendered by a court adjudicating the Company insolvent, and the order or decree is not
vacated within thirty (30) days from the date of entry thereof; (v) the Company files a petition in bankruptcy under the
provisions of any bankrupt cy law or any insolvency act; (vi) the Company admits, in writing, its inability to pay its debts
as they become due (provided, however, that receipt by the Company of an audit letter from its accountants questioning the
viability of the Company as a going concern shall not , in and of itself, be construed as an admission by the Company of its
inability to pay its debts as they become due; further provided, however, that receipt of any such letter shall not preclude
the Holder from declaring any other default that may be applicable as a result of such a letter or the financial state of the
Company giving rise to such a latter, either under this Note or any other Transact ion Documents); (vii) a proceeding or
petition in bankruptcy is filed against the Company and such proceeding or petition is not dismissed within forty-five (45)
days from the date it is filed; (viii) the Company files a petition or answer seeking reorganization or a1Tangement under the
bankruptcy laws or any law or statute of the United States or any other foreign country or state; or (ix) the Company shall
fail to perform, comply with or abide by any of the material stipulations, agreements, conditions and/or covenants contained
in this Note, any other Transaction Documents, or any other agreements between the Company and the Holder, on the part of the
Company to be performed, complied with, or abided by, and such failure is not cured within ten ( 10) days after written
notice of such failure is delivered by Holder to the Company.

 

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(b)Remedies.
Upon the occurrence of one or more Events of Default, the Holder, at its option and without further notice, demand or presentment
for payment to the Company or others, may declare the then outstanding principal balance of this Note, together with all other
sum s due under the Note and the other Transaction Documents, immediately due and payable, together with all accrued and unpaid
interest thereon and thereafter all such sums shall bear interest at the Default Rate, together with all reasonable attorneys'
fees, paralegals' fees and costs and expenses incurred by the Holder in collecting or enforcing payment thereof (whether such
fees, costs or expenses are incurred in negotiations, all trial and appellate levels, administrative proceedings, bankruptcy proceedings
or otherwise), and all other sums due by the Company hereunder and under the Transaction Documents, all without any relief whatsoever
from any valuation or appraisement laws and payment thereof may been forced and recovered in whole or in part at any time by one
or more of the remedies provided to the Holder at law , in equity, or under this Note or the other Transaction Documents. Any
accrued but unpaid interest and other sums due by the Company hereunder and under the Transaction Documents shall, at the option
of the Holder, be included, from time to time, in the Conversion Amount.

 

7.Lost
or Stolen Note. Upon notice to the Company of the loss, theft, destruction or mutilation of this Note, and , in the case of
loss, theft or destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable
to the Company and customary for similar circumstances in commercial lender/borrower circumstances, and , in the case of
mutilation, upon surrender and cancellation of the Note, the Company shall execute and deliver a new Note of like tenor and
date and in substantially the same form as this Note; provided, however, the Company shall not be obligated to
re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining principal amount and interest
into Common Stock.

 

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8.Cancellation.
After all principal, accrued interest and all other sums at any time owed on this Note or any other Transaction Documents have
been pa id in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and
shall not be re-issued.

 

9.Waivers.
The Company hereby waives and releases all benefit that might accrue to the Company by virtue of any present or future laws
exempting any property that may serve as security for this Note, or any other property, real or personal , or any part of the
proceeds arising from any sale of any such property, from attachment, levy, or sale under execution, exemption from
civil process, or extension of time for payment , including, without limitation, any and all homestead exemption rights of
the Company ; and the Company agrees that any property that may be levied upon pursuant to a judgment obtained by virtue
hereof, on any writ of execution issued thereon , may be sold upon any such writ in whole or in part in any order or manner
desired by Holder. In addition, the Company and all others who are, or may become liable for the payment hereof: (i)
severally waive presentment for payment, demand, notice of nonpayment or dishonor, protest and notice of protest of this Note
or the other Transaction Documents, and all other notices in connection with the delivery, acceptance, performance, default,
or enforcement of the payment of this Note or the other Transaction Documents; (ii) expressly consent to all extensions of
time, renewal s or postponements of time of payment of this Note or the other Transaction Document s from time to time prior
to or after the maturity of this Note without notice, consent or further consideration to any of the foregoing; (iii)
expressly agree that the Holder shall not be required first to institute any suit, or to exhaust its remedies against the
Company or any other person or pa1ty to become liable hereunder or against any collateral that may secure this Note in order
to enforce the payment of this Note; and (iv) expressly agree that , notwithstanding the occu1Tence of any of the foregoing
(except the express written release by the Holder of any such person), the undersigned shall be and remain, directly and
primarily liable for all sums due under this Note .

 

10.
Governing Law. This Note shall be construed and en forced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the laws of the State of Nevada, without giving
effect to provisions thereof regarding conflict of law s. Each party hereto hereby irrevocably submits to the non exclusive
jurisdiction of the state and federal courts sitting in Clark Count y, Nevada for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit , action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such cou1t, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit ,
action or proceeding is improper , provided , however, nothing contained herein shall limit the Holder's ability to bring
suit or enforce this Note in any other jurisdiction. Each
party hereto hereby irrevocably waives personal service of process and consents to process being served i n any such suit,
action or proceeding by sending by certified ma il or overnight courier a copy thereof to such party at the address indicated
in the preamble hereto and agrees that such service shall constitute good and sufficient service of process and notice
thereof.

 

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Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDIC ATION OF ANY DISP
UTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

11 .Indemnity and Expenses. The Company agrees:

 

(a)To
indemnify and hold harmless the Holder and each of its partners, employees, agents and affiliates from and against any and all
claims, damages, demands, losses, obligations, judgment s, suit s, actions, threats and liabilities (including, without limitation,
attorneys' fees and expenses) in any way arising out of or in connection with this Note; and

 

(b)To
pay and reimburse the Holder upon demand for all costs and expenses (including, without limitation, attorney s' fees and expenses)
that the Holder may incur in connection with (i) the exercise
or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available
to it (whether at law, in equity or otherwise), or (ii) the failure by the Company to perform or observe any of the provision
s hereof. The provisions of this Section 1 1 shall survive the
execution and delivery of this Note , the repayment of any or all of the principal or interest owed pursuant hereto, and the termination
of this Note.

 

12.
Remedies, Characterizations, Other Obligations, Breaches and Injun ctive Relief. The remedies
of the Holder as provided herein, or the other Transaction Documents, shall be cumulative and concurrent and may be pursued singly,
successively or together, at the sole discretion of the Holder , and may be exercised as often as occasion therefor shall occur;
and the fai lure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof.

 

13.Specific
Shall Not Limit General; Construction . No specific provision contained in this Note shall limit or modify any more general provision
contained herein . This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof.

 

14.Failure
or Indulgence Not Waiver. Holder shall not be deemed , by any act of omission or commission, to have waived any of its rights
or remedies hereunder or under any Transaction Document s, unless such waiver is in writing and signed by Holder, and then only
to the extent specifically set forth in the writing. A waiver on one event shall not be construed as continuing or as a bar to
or waiver of any right or remedy to a subsequent event.

 

15.Notice.
Notice shall be given to each party at the address indicated in the preamble hereto or at such other address as provided to the
other party in writing, and such notice shall be deemed properly given in accordance with the notice provisions set forth in the
Security Agreement securing this Note.

 

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16.Usury
Savings Clause. Notwithstanding any provision in this Note or the other Transaction Documents, the total liability for
payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions, or other
sum s which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury laws of the jurisdiction
governing this Note or any other applicable law. In the event the total liability of payments of interest and payments in the
nature of interest, including, without limitation , all charges, fees, exaction s or other sums which may at any time be deemed
to be interest, shall, for any reason whatsoever, result in an effective rate of interest, which for any month or other interest
payment period exceeds the limit imposed by the usury laws of the jurisdiction governing this Note, all sums in excess of those
lawfully collectible as interest for the period in question shall, without further agreement or notice by, between, or to any
party hereto, be applied to the reduction of the outstanding principal balance of this Note immediately upon receipt of such sums
by the Holder hereof, with the same force and effect as though the Company had specifically designated such excess sum s to be
so applied to the reduction of such outstanding principal balance and the Holder hereof had agreed to accept such sums as a penalty-free
payment of principal ; provided, however, that the Holder of this Note may, at any time and from time to time, elect, by notice
in writing to the Company, to waive, reduce, or limit the collection of any sum s in excess of those lawfully collectible as interest
rather than accept such sum s as a prepayment of the outstanding principal balance. It is the intention of the parties that the
Company does not intend or expect to pay nor does the Holder intend or expect to charge or collect any interest under this Note
greater than the highest non-usurious rate of interest which may be charged under applicable law.

 

17. Binding Effect. This Note shall be binding upon the Company and the successors and assigns
of the Company and shall inure to the benefit of Holder and the successors and assigns of Holder.

 

18. Severability. In the event any one or more of the provisions of this Note shall for any reason
be held to be invalid, illegal, or unenforceable, in whole or i n pa11, in any respect, or in the event that any one or more of
the provisions of this Note operates or would prospectively operate to invalidate this Note, then and in any of those events,
only such provision or provisions shall be deemed null and void and shall not affect any other pro vision of this Note. The remaining
provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced, or disturbed
thereby.

 

19.
Participations. Holder may from time to time sell or assign, in whole or in part, or grant
participations in this Note and/or the obligations evidenced hereby, subject, however, to first obtaining the Company's written
consent, which consent shall not be unreasonably withheld, conditioned or delayed. The holder of any such sale, assignment or
participation , if the applicable agreement between Holder and such holder so provides, shall be: (a) entitled to all of the rights,
obligations and benefits of Holder (to the extent of such holder 's interest or participation); and (b) deemed to hold and may
exercise the rights of setoff or banker's li en with respect to any and all obligations of such holder to the Company (to the
extent of such holder's interest or participation), in each case as fully as though the Company was directly indebted to such
holder.

 

Company Initial

 

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20.Amendments. The provisions of this Note may be changed only by a written agreement executed by the Company and Holder.

 

21.Non-U.S.
Status. THE HOLDER IS A NON-U.S. PERSON AS THAT TERM I S DEFIN ED IN THE UN ITED STATES INTERNAL REVEN UE CODE. IT I S H EREBY
AG REED AND UNDERSTOOD THAT THE OBLIGATIONS HEREUNDER MAY BE SOLD OR RESOLD ONLY TO NON-U.S. PERSONS. THE INTEREST PAYABLE HEREUN
DER IS PAYABLE ONLY OUTSIDE THE UNITED STATES. AN Y U.S. PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJ ECT TO LIMITATIONS UNDER
THE UN ITED STATES INCOME TAX LAW.

  

[Signature
page follows]

 

Company Initial

 

    	14

    	 

    

 

IN
WITNESS WHEREOF , the Company has caused this Note to be executed as of the Issuance Date
set forth above.

 

	 	MILLENNIUM HEALTH CARE, INC.
	 	 
	 	

 

[
signature page to Promissory Note]

 

    	15

    	 

    

 

Exhibit
"A"

 

Schedule
of Payments

 

	Payment Date	 	Payment No.	 	Interest Payment	 	 	Prin. Payment	 	 	Redemption prem. %	 	 	Prem. Payable	 	 	Total Payable	 	 	Balance Outstanding	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	375,000.00	 
	10/24/12	 	1	 	$	3,750.00	 	 	$	0.00	 	 	 	0	%	 	$	0.00	 	 	$	3,750.00	 	 	$	375,000.00	 
	11/24/12	 	2	 	$	3,750.00	 	 	$	0.00	 	 	 	0	%	 	$	0.00	 	 	$	3,750.00	 	 	$	375,000.00	 
	12/24/12	 	3	 	$	3,750.00	 	 	$	35,843.28	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	339,156.72	 
	1/24/13	 	4	 	$	3,391.57	 	 	$	36,201.71	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	302,955.01	 
	2/24/13	 	5	 	$	3,029.55	 	 	$	36,563.73	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	266,391.28	 
	3/24/13	 	6	 	$	2,663.91	 	 	$	36,929.37	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	229,461.92	 
	4/24/13	 	7	 	$	2,294.62	 	 	$	37,298.66	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	192,163.26	 
	5/24/13	 	8	 	$	1,921.63	 	 	$	37,671.65	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	154,491.61	 
	6/24/13	 	9	 	$	1,544.92	 	 	$	38,048.36	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	116,443.25	 
	7/24/13	 	10	 	$	1,164.43	 	 	$	38,428.85	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	78,014.40	 
	8/24/13	 	11	 	$	780.14	 	 	$	38,813.13	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	$	39,201.27	 
	9/24/13	 	12	 	$	392.01	 	 	$	39,201.27	 	 	 	0	%	 	$	0.00	 	 	$	39,593.28	 	 	 	 	 

 

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EXHIBIT
"B"

 

NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert principal and/or interest under the Convertible Promissory
Note (the "Note") of
Millennium Healthcare, Inc., a corporation incorporated under the laws of the State of Delaware (the "Company"), into
shares of common stock, par value $0.0001 per share (the "Common Shares"), of
the Company in accordance with the conditions of the Note, as of the date written below.

 

Based
solely on information provided by the Company to Holder, the undersigned represents and warrants to the Company that its ownership
of the Common Shares does not exceed the amounts determined in accordance with Section 13(d) of the Exchange Act of 1 934, as
amended, specified under Section 2(b) of the Note.

 

	Conversion calculations	 
	 	 
	Effective Date of Conversion:	________________________________
	 	 
	Principal Amount and/or Interest to be Converted:	________________________________
	 	 
	Number of Common Shares to be Issued:	________________________________

 

	 	[HOLDER)
	 	 	 
	 	By:	________________________________
	 	 	 
	 	Name:	________________________________
	 	 	 
	 	Title:	________________________________
	 	 	 
	 	Address:  	________________________________
	 	 	 
	 	 	________________________________
	 	 	 
	 	 	________________________________

 

    	17

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