Document:

DEBENTURE

     

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

    

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

    

    
      	
              Series  A-4

            	
              US
      $10,000

            

    

     

    AMERICAN
SCIENTIFIC RESOURCES, INC.

    

    8%
CONVERTIBLE REDEEMABLE DEBENTURE

    DUE
OCTOBER 10, 2010

     

    THIS DEBENTURE of American Scientific
Resources, Inc. ("Company"), designated
as its Series A 8% Convertible Redeemable Debenture Due October 10,
2010.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

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

    

    This Debenture is issued pursuant to
the Sale Agreement and the Company hereby confirms that all of the
representations and warranties of the Company set forth in the Sale Agreement
are true and correct as of the date hereof, except that (a) the Company’s
capital structure consists of 500,000,000 authorized shares of Common Stock, and
(b) the number of shares of issued and outstanding Common Stock is
242,739,928.

    

    This Debenture is subject to the
following additional provisions:

    

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

    

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

    

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

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

    

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

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

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

    

    
      	
               
      

            	
              (j)

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

            

    

    

    
      	
               
      

            	
              (k)

            	
              The
      Company shall not, on or prior to October 29, 2008, increase its
      authorized Common Stock and deliver to Robert C. Laskowski, escrow agent
      (the “Escrow Agent’), such number of additional shares of the Common Stock
      as shall cause the number of shares of the Common Stock held by the Escrow
      Agent to equal the outstanding amount of this Debenture at such date,
      divided by the best bid price for the Common Stock shown on the pink
      sheets on such date, times four.

            

    

    

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

    

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

    

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

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

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

    

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

     

    {REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK}

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

     

    Dated:
October 10, 2008

     

    
      
        
          
            
              	
                      AMERICAN
      SCIENTIFIC RESOURCES,
      INC.

                    
	 
      	 
      
	
                      By:

                    	
                       
      

                    
	
                      Name:  Christopher
      F. Tirotta, MD, MBA

                    
	
                      Title:
      CEO/Chairman of the
Board

                    

            

          

        

      

    

     

    
      
         

      

      
        8DEBENTURE

    

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

    

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

    

    
      
        	
                Series
      A-5

              	
                US
      $25,000

              

      

    

    

    AMERICAN
SCIENTIFIC RESOURCES, INC.

    

    8%
CONVERTIBLE REDEEMABLE DEBENTURE

    DUE
OCTOBER 24, 2010

    

    THIS DEBENTURE of American Scientific
Resources, Inc. ("Company"), designated
as its Series A 8% Convertible Redeemable Debenture DueOctober 24,
2010.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FOR VALUE RECEIVED, the Company
promises to pay to Blaydon Capital, LLC and its authorized successors and
permitted assigns ("Holder"), the
aggregate principal face amount of twenty-five thousand dollars (U.S. $25,000)
onOctober 24, 2010 ("Maturity Date") and
to pay interest on the principal amount outstanding hereunder at the rate of 8%
per annum commencingon November 24, 2008.  Interest will be paid to
the Holder in whose name this Debenture is registered on the records of the
Company regarding registration and transfers of this Debenture ("Debenture Register");
provided, however, that the Company's obligation to a transferee of this
Debenture arises only if such transfer, sale or other disposition is made in
accordance with the terms and conditions of the Securities Sale Agreement dated
as of September 29, 2008 between the Company and the Holder ("Sale
Agreement").  The principal of, and interest on, this Debenture
are payable at 200 South Executive Drive, Suite 101, Brookfield, WI
53005initially, and if changed, last appearing on the Debenture Register of the
Company as designated in writing by the Holder hereof from time to
time.  The Company will pay the outstanding principal due upon this
Debenture before or on the Maturity Date, less any amounts required by law to be
deducted or withheld, to the Holder of this Debenture by check if paid more than
10 days prior to the Maturity Date or, if paid 10 days or less prior to the
Maturity Date, by wire transfer and addressed to such Holder at the last address
appearing on the Debenture Register.  The forwarding of such check or
wire transfer shall constitute a payment of outstanding principal hereunder and
shall satisfy and discharge the liability for principal on this Debenture to the
extent of the sum represented by such check or wire
transfer.  Interest shall be payable in Common Stock (as defined
below) pursuant to paragraph 4(b) herein.

    

    This Debenture is issued pursuant to
the Sale Agreement and the Company hereby confirms that all of the
representations and warranties of the Company set forth in the Sale Agreement
are true and correct as of the date hereof, except that (a) the Company’s
capital structure consists of 500,000,000 authorized shares of Common Stock, and
(b) the number of shares of issued and outstanding Common Stock is
242,739,928.

    

    This Debenture is subject to the
following additional provisions:

    

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

    

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

    

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

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

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

    

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

     

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

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

    

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

    

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

    

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

    

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

    

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

    

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

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (j)

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

            

    

    

    
      	
               
      

            	
              (k)

            	
              The
      Company shall not, on or prior to October 29, 2008, increase its
      authorized Common Stock and deliver to Robert C. Laskowski, escrow agent
      (the “Escrow Agent’), such number of additional shares of the Common Stock
      as shall cause the number of shares of the Common Stock held by the Escrow
      Agent to equal the outstanding amount of this Debenture at such date,
      divided by the best bid price for the Common Stock shown on the pink
      sheets on such date, times four.

            

    

    

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

    

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

    

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

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

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

    

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

    

    {REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK}

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

    

    Dated:October
24, 2008

    

    
      
        
          
            
              
                
                  	 
      	
                          AMERICAN
      SCIENTIFIC

                        
	 
      	
                          RESOURCES,
      INC.

                        
	 
      	 
      	 
      
	 
      	
                          By: 

                        	
	 
      	
                          Name:
      Christopher F. Tirotta, MD, MBA

                        
	 
      	
                          Title:
      CEO/Chairman of the
Board

                        

                

              

            

          

        

      

    

    
      
         

      

      
        8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]