Document:

Dated:
        July 3, 2007

       

      NEITHER
        THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
        HAVE
        BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
        COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
        ACT”),
        AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
        REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
        EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS.

       

      
        
          	
                  No.
                    TPLE-___

                	
                  $3,000,000

                

        

      

       

      TELEPLUS
        WORLD CORP.

       

      Secured
        Convertible Debenture

       

      Due:
        July 3, 2010

       

      This
        Secured Convertible Debenture (the “Debenture”)
        is
        issued by TELEPLUS
        WORLD, CORP., a
        Nevada
        corporation (the “Company”),
        to
CORNELL
        CAPITAL PARTNERS, LP
        (the
“Holder”),
        pursuant to that certain Securities Purchase Agreement (the “Securities
        Purchase Agreement”)
        dated
        July 3, 2007. 

       

      FOR
        VALUE RECEIVED,
        the
        Company hereby promises to pay to the Holder or its successors and assigns
        the
        principal sum of Three Million Dollars ($3,000,000) together with accrued
        but
        unpaid interest on or before July 3, 2010 (the “Maturity
        Date”)
        in
        accordance with the following terms:

       

      Section
        1. General
        Terms

       

      (a) Interest.
        Interest shall accrue on the outstanding principal balance hereof at an annual
        rate equal to twelve percent (12%). Interest shall be calculated on the basis
        of
        a 365-day year and the actual number of days elapsed, to the extent permitted
        by
        applicable law. Interest hereunder shall be paid on the Maturity Date (or
        sooner
        as provided herein) to the Holder or its assignee in whose name this Debenture
        is registered on the records of the Company regarding registration and transfers
        of Debentures in cash or in Common Stock (valued at the Closing Bid Price
        on the
        Trading Day immediately prior to the date paid) at the option of the Company.
        

       

      (b)  Security.
        This
        Debenture is secured by a Third Amended and Restated Pledge and Escrow Agreement
        (the “Pledge
        Agreement”)
        dated
        July 3, 2007 among the Company, the Holder, the Escrow Agent, a Third Amended
        and Restated Security Agreement (the “Security
        Agreement”)
        dated
        July 3, 2007 between the Company and the Holder, and the Third Amended and
        Restated Subsidiary Security Agreements (collectively, the “Subsidiary
        Security Agreements”)
        dated
        July 3, 2007 among the Company, the Holder, the two (2) subsidiaries of the
        Company.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Section
        2. Events
        of Default.

       

      (a) An
        “Event
        of Default”,
        wherever used herein, means any one of the following events (whatever the
        reason
        and whether it shall be voluntary or involuntary or effected by operation
        of law
        or pursuant to any judgment, decree or order of any court, or any order,
        rule or
        regulation of any administrative or governmental body):

       

      (i) Any
        default in the payment of the principal of, interest on or other charges
        in
        respect of this Debenture, free of any claim of subordination, as and when
        the
        same shall become due and payable whether upon a Mandatory Redemption (as
        defined in Section
        3(b)),
        an
        Optional Redemption (as defined in Section
        3(a)),
        or a
        Conversion Date or the Maturity Date or by acceleration or
        otherwise;

       

      (ii) The
        Company or any subsidiary of the Company shall commence, or there shall be
        commenced against the Company or any subsidiary of the Company under any
        applicable bankruptcy or insolvency laws as now or hereafter in effect or
        any
        successor thereto, or the Company or any subsidiary of the Company commences
        any
        other proceeding under any reorganization, arrangement, adjustment of debt,
        relief of debtors, dissolution, insolvency or liquidation or similar law
        of any
        jurisdiction whether now or hereafter in effect relating to the Company or
        any
        subsidiary of the Company or there is commenced against the Company or any
        subsidiary of the Company any such bankruptcy, insolvency or other proceeding
        which remains undismissed for a period of 61 days; or the Company or any
        subsidiary of the Company is adjudicated insolvent or bankrupt; or any order
        of
        relief or other order approving any such case or proceeding is entered; or
        the
        Company or any subsidiary of the Company suffers any appointment of any
        custodian, private or court appointed receiver or the like for it or any
        substantial part of its property which continues undischarged or unstayed
        for a
        period of sixty one (61) days; or the Company or any subsidiary of the Company
        makes a general assignment for the benefit of creditors; or the Company or
        any
        subsidiary of the Company shall fail to pay, or shall state that it is unable
        to
        pay, or shall be unable to pay, its debts generally as they become due; or
        the
        Company or any subsidiary of the Company shall call a meeting of its creditors
        with a view to arranging a composition, adjustment or restructuring of its
        debts; or the Company or any subsidiary of the Company shall by any act or
        failure to act expressly indicate its consent to, approval of or acquiescence
        in
        any of the foregoing; or any corporate or other action is taken by the Company
        or any subsidiary of the Company for the purpose of effecting any of the
        foregoing;

       

      (iii) The
        Company or any subsidiary of the Company shall default in any of its obligations
        under any other debenture or any mortgage, credit agreement or other facility,
        indenture agreement, factoring agreement or other instrument under which
        there
        may be issued, or by which there may be secured or evidenced any indebtedness
        for borrowed money or money due under any long term leasing or factoring
        arrangement of the Company or any subsidiary of the Company in an amount
        exceeding $100,000, whether such indebtedness now exists or shall hereafter
        be
        created and such default shall result in such indebtedness becoming or being
        declared due and payable prior to the date on which it would otherwise become
        due and payable;

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (iv) The
        Common Stock shall cease to be quoted for trading or listing for trading
        on any
        of (a) the American Stock Exchange, (b) New York Stock Exchange, (c) the
        Nasdaq
        National Market, (d) the Nasdaq Capital Market, or (e) the NASD OTC Bulletin
        Board (“OTC”)
        (each,
        a “Primary
        Market”)
        and
        shall not again be quoted or listed for trading on any Primary Market within
        five (5) Trading Days of such delisting;

       

      (v) The
        Company or any subsidiary of the Company shall be a party to any Change of
        Control Transaction (as defined in Section
        6);
        

       

      (vi) The
        Company shall fail to file the Underlying Shares Registration Statement (as
        defined in Section
        6)
        with
        the Commission (as defined in Section
        6),
        or the
        Underlying Shares Registration Statement shall not have been declared effective
        by the Commission, in each case within the time periods set forth in the
        Investor Registration Rights Agreement (“Registration
        Rights Agreement”)
        dated
        July 3, 2007 between the Company and the Holder;

       

      (vii) If
        the
        effectiveness of the Underlying Shares Registration Statement lapses for
        any
        reason or the Holder shall not be permitted to resell the shares of Common
        Stock
        underlying this Debenture under the Underlying Shares Registration Statement,
        in
        either case, for more than five (5) consecutive Trading Days or an aggregate
        of
        eight Trading Days (which need not be consecutive Trading Days);

       

      (viii) The
        Company shall fail for any reason to deliver Common Stock certificates to
        a
        Holder prior to the fifth (5th)
        Trading
        Day after a Conversion Date or after a Redemption Date if the Company is
        eligible and elects to settle a Mandatory Redemption in shares of Common
        Stock,
        or the Company shall provide notice to the Holder, including by way of public
        announcement, at any time, of its intention not to comply with requests for
        conversions, or settlements of Mandatory Redemptions in shares of Common
        Stock,
        in accordance with the terms hereof 

       

      (ix) The
        Company shall fail for any reason to deliver the payment in cash pursuant
        to a
        Buy-In (as defined herein) within three (3) days after notice is claimed
        delivered hereunder; 

       

      (x) The
        Company shall fail to observe or perform any other covenant, agreement or
        warranty contained in, or otherwise commit any breach or default of any
        provision of this Debenture (except as may be covered by Section
        2(a)(i) through 2(a)(ix)
        hereof)
        or any Transaction Document (as defined in Section
        6)
        which
        is not cured with in the time prescribed, or an Event of Default under any
        other
        debenture issued to the Holder in connection with the Securities Purchase
        Agreement shall occur;

       

      (b) During
        the time that any portion of this Debenture is outstanding, if any Event
        of
        Default has occurred, the full principal amount of this Debenture, together
        with
        interest and other amounts owing in respect thereof, to the date of acceleration
        shall become at the Holder's election, immediately due and payable in cash,
        provided
        however,
        the
        Holder may request (but shall have no obligation to request) payment of such
        amounts in Common Stock of the Company. If an Event of Default shall occur,
        at
        the sole option of the Holder, the Conversion Price shall be reduced to $0.01.
        Furthermore, in addition to any other remedies, the Holder shall have the
        right
        (but not the obligation) to convert this Debenture at any time after (x)
        an
        Event of Default or (y) the Maturity Date at the Conversion Price then
        in-effect. The Holder need not provide and the Company hereby waives any
        presentment, demand, protest or other notice of any kind, and the Holder
        may
        immediately and without expiration of any grace period enforce any and all
        of
        its rights and remedies hereunder and all other remedies available to it
        under
        applicable law. Such declaration may be rescinded and annulled by Holder
        at any
        time prior to payment hereunder. No such rescission or annulment shall affect
        any subsequent Event of Default or impair any right consequent thereon. Upon
        an
        Event of Default, notwithstanding any other provision of this Debenture or
        any
        Transaction Document, the Holder shall have no obligation to comply with
        or
        adhere to any limitations, if any, on the conversion of this Debenture or
        the
        sale of the Underlying Shares. 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      Section
        3. Redemptions.

       

      (a) Company’s
        Optional Cash Redemption.
        The
        Company at its option shall have the right to redeem (“Optional
        Redemption”)
        in
        cash a portion of the amounts outstanding under this Debenture prior to the
        Maturity Date provided
        that
        as of
        the date of the Holder’s receipt of a Redemption Notice (as defined herein) (i)
        the Closing Bid Price of the of the Common Stock, as reported by Bloomberg,
        LP,
        is less than the Fixed Conversion Price, and (ii) no Event of Default has
        occurred. The Company shall pay an amount equal to the principal amount being
        redeemed plus a redemption premium (“Redemption
        Premium”)
        equal
        to ten percent (10%) of the principal amount being redeemed (collectively
        referred to as the “Redemption
        Amount”).
        The
        Redemption Premium is only applicable to an Optional Redemption. In order
        to
        make a redemption, the Company shall first provide written notice to the
        Holder
        of its intention to make a redemption (the “Redemption
        Notice”)
        setting forth the amount of principal it desires to redeem. Notwithstanding
        the
        foregoing, the Company shall not redeem more than (i) $250,000 outstanding
        under
        this Debenture within any twenty (20) Trading Days and (ii) an aggregate
        of
        $1,000,000 outstanding under this Debenture; provided however, Buyer may,
        in its
        sole and absolute discretion, waive the foregoing restrictions. After receipt
        of
        the Redemption Notice the Holder shall have three (3) business days to elect
        to
        such portion of this Debenture, specified in the Redemption Notice subject
        to
        the limitations set forth in Section
        4(b).
        On the
        fourth (4th)
        business day after the Redemption Notice, the Company shall deliver to the
        Holder the Redemption Amount with respect to the principal amount redeemed
        after
        giving effect to conversions effected during the three (3) business day period.
        

       

      (b) Mandatory
        Redemptions.
        Beginning on August 2, 2007, and continuing on the first Trading Day of each
        calendar month thereafter, the Company shall make mandatory redemptions
        (“Mandatory
        Redemptions”)
        consisting of outstanding principal. The principal amount of each Mandatory
        Redemption shall be equal to $100,000 (“Mandatory
        Redemption Amount”)
        per
        calendar month, until all amounts owed under this Debenture have been paid
        in
        full. 

       

      The
        Company shall transmit a copy of a Redemption Notice in the form attached
        hereto
        as Exhibit
        A
        (the
“Redemption
        Notice”)
        via
        facsimile (or other delivery) for receipt on or prior to 5:00 pm New York
        City
        time at least one Trading Day prior to the due date of such Mandatory Redemption
        (the “Redemption
        Date”)
        which
        shall (i) indicate the applicable Mandatory Redemption Amount, (ii) indicate
        the
        Company’s choice of settlement options (pursuant to Section
        3(c))
        with
        respect to such Redemption Notice, and (iii) be signed by an officer of the
        Company. The Company shall settle all Mandatory Redemptions within 5 Trading
        Days of the Redemption Date (the “Settlement
        Date”).
        The
        Holder shall have the absolute right, in its sole discretion, to suspend
        the
        Company’s obligations to make Mandatory Redemptions by providing the Company
        with written notice of such election (“Suspension
        Notice”)
        prior
        to the Redemption Date. The Holder shall have no obligation to accept any
        Mandatory Redemptions made by the Company during any suspension period specified
        in a Suspension Notice after the Holder’s submission of such Suspension Notice.
        The obligation of the Company to make Mandatory Redemptions shall resume
        on the
        first Trading Day of the month following the expiration of the suspension
        period
        specified in a Suspension Notice. 

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      In
        order
        to the effect the Mandatory Redemption payments, the Company shall
        simultaneously herewith provide the Buyer with 12 company checks, made payable
        to the Buyer, each in the amount of $100,000 which shall be utilized by Buyer
        to
        satisfy the Mandatory Redemption payments and which shall be replenished
        every
        12 months thereafter until the all amounts owed under the Debenture have
        been
        paid in full.

       

      (c) Company’s
        Settlement of Mandatory Redemptions.
        The
        Company has the option, in its sole discretion, to settle Mandatory Redemptions
        by (i) paying the Holder cash in an amount equal to the Mandatory Redemption
        Amount, or (ii) issuing to the Holder a number of shares of Common Stock
        (the
“Redemption
        Shares”)
        equal
        to the Mandatory Redemption Amount divided by ninety percent (90%) of the
        lowest Volume Weighted Average Price of the Common Stock during the twenty
        (20)
        trading days immediately preceding the Conversion Date as quoted by Bloomberg,
        LP (the “Redemption
        Conversion Price”)
        provided
        that in
        order for the Company to choose option (ii) of this Section
        3(c),
        (A) the
        Underlying Share Registration Statement shall have been declared effective
        and
        shall remain effective on the Redemption Date, (B) no Event of Default shall
        have occurred, and (C) the Closing Bid Price for the Common Stock shall be
        greater than the Redemption Conversion Price as of the Redemption Date.

       

      (d) Special
        Instructions Regarding Settlement of Mandatory Redemptions in Shares of Common
        Stock.
        In the
        event that the Company chooses (if such option is available) to settle a
        Mandatory Redemption in shares of Common Stock pursuant to option (ii) of
        Section
        3(c),
        upon
        notice to the Holder of such settlement selection option, the Redemption
        Notice
        shall be treated the same as a Conversion Notice submitted by the Holder
        and
        processed in accordance with the provisions for Conversion Notices set forth
        in
Section
        4.
        The
        limitations on Conversions set forth in Section
        4(b))
        hereof
        shall apply to any shares of Common Stock issued pursuant to this Section
        3.

       

      Section
        4. Conversion.

       

      (a) Conversion
        at Option of Holder.

       

      (i) This
        Debenture shall be convertible into shares of Common Stock at the option
        of the
        Holder, in whole or in part at any time and from time to time, after the
        Original Issue Date (as defined in Section
        6)
        (subject to the limitations on conversion set forth in Section
        4(b)
        hereof).
        The number of shares of Common Stock issuable upon a conversion hereunder
        equals
        the quotient obtained by dividing (x) the outstanding amount of this Debenture
        to be converted by (y) the Conversion Price (as defined in Section
        4(c)(i)).
        The
        Company shall deliver Common Stock certificates to the Holder prior to the
        Fifth
        (5th)
        Trading
        Day after a Conversion Date.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (ii) Notwithstanding
        anything to the contrary contained herein, if on any Conversion Date: (1)
        the
        number of shares of Common Stock at the time authorized, unissued and unreserved
        for all purposes, or held as treasury stock, is insufficient to pay principal
        and interest hereunder in shares of Common Stock; (2) the Common Stock is
        not
        listed or quoted for trading on the OTC or on a Primary Market; or (3) the
        Company has failed to timely satisfy a conversion; then, at the option of
        the
        Holder, the Company, in lieu of delivering shares of Common Stock pursuant
        to
Section
        4(a)(i),
        shall
        deliver, within three (3) Trading Days of each applicable Conversion Date,
        an
        amount in cash equal to the product of the outstanding principal amount to
        be
        converted divided by the applicable Conversion Price, and multiplied by the
        highest Closing Bid Price of the stock from date of the conversion notice
        till
        the date that such cash payment is made.

       

      Further,
        if the Company shall not have delivered any cash due in respect of conversion
        of
        this Debenture by the fifth (5th)
        Trading
        Day after the Conversion Date, the Holder may, by notice to the Company,
        require
        the Company to issue shares of Common Stock pursuant to Section
        4(c),
        except
        that for such purpose the Conversion Price applicable thereto shall be the
        lesser of the Conversion Price on the Conversion Date and the Conversion
        Price
        on the date of such Holder demand. Any such shares will be subject to the
        provisions of this Section. In the even the Holder elects to convert under
        this
        provision when there is not an effective Registration Statement, Holder shall
        not require a cash payment beyond the Mandatory Redemption Amount provided
        Holder receives the number of shares issuable pursuant to such conversion.
        

       

      (iii) The
        Holder shall effect conversions by delivering to the Company a completed
        notice
        in the form attached hereto as Exhibit B (a “Conversion
        Notice”).
        The
        date on which a Conversion Notice is delivered is the “Conversion
        Date.”
Unless
        the Holder is converting the entire principal amount outstanding under this
        Debenture, the Holder is not required to physically surrender this Debenture
        to
        the Company in order to effect conversions. Conversions hereunder shall have
        the
        effect of lowering the outstanding principal amount of this Debenture plus
        all
        accrued and unpaid interest thereon in an amount equal to the applicable
        conversion. The Holder and the Company shall maintain records showing the
        principal amount converted and the date of such conversions. In the event
        of any
        dispute or discrepancy, the records of the Holder shall be controlling and
        determinative in the absence of manifest error.

       

      (b) Certain
        Conversion Restrictions.

       

      (i) A
        Holder
        may not convert this Debenture or receive shares of Common Stock as payment
        of
        interest hereunder to the extent such conversion or receipt of such interest
        payment would result in the Holder, together with any affiliate thereof,
        beneficially owning (as determined in accordance with Section 13(d) of the
        Exchange Act and the rules promulgated thereunder) in excess of 4.99% of
        the
        then issued and outstanding shares of Common Stock, including shares issuable
        upon conversion of, and payment of interest on, this Debenture held by such
        Holder after application of this Section. Since the Holder will not be obligated
        to report to the Company the number of shares of Common Stock it may hold
        at the
        time of a conversion hereunder, unless the conversion at issue would result
        in
        the issuance of shares of Common Stock in excess of 4.99% of the then
        outstanding shares of Common Stock without regard to any other shares which
        may
        be beneficially owned by the Holder or an affiliate thereof, the Holder shall
        have the authority and obligation to determine whether the restriction contained
        in this Section will limit any particular conversion hereunder and to the
        extent
        that the Holder determines that the limitation contained in this Section
        applies, the determination of which portion of the principal amount of this
        Debenture is convertible shall be the responsibility and obligation of the
        Holder. If the Holder has delivered a Conversion Notice for a principal amount
        of this Debenture that, without regard to any other shares that the Holder
        or
        its affiliates may beneficially own, would result in the issuance in excess
        of
        the permitted amount hereunder, the Company shall notify the Holder of this
        fact
        and shall honor the conversion for the maximum principal amount permitted
        to be
        converted on such Conversion Date in accordance with the periods described
        in
Section
        4(a)(i)
        and, at
        the option of the Holder, either retain any principal amount tendered for
        conversion in excess of the permitted amount hereunder for future conversions
        or
        return such excess principal amount to the Holder. The provisions of this
        Section may be waived by a Holder (but only as to itself and not to any other
        Holder) upon not less than 65 days prior notice to the Company. Other Holders
        shall be unaffected by any such waiver. 

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (c) Conversion
        Price and Adjustments to Conversion Price.

       

      (i) The
        conversion price in effect on any Conversion Date shall be equal to the lower
        of
        $0.035 per share (the “Fixed
        Conversion Price”)
        or (b)
        ninety percent (90%) of the lowest Volume Weighted Average Price of the
        Common Stock during the twenty (20) trading days immediately preceding the
        Conversion Date as quoted by Bloomberg, LP (the “Market
        Conversion Price”).
        The
        Fixed Conversion Price and the Market Conversion Price are collectively referred
        to as the “Conversion
        Price.”
The
        Conversion Price may be adjusted pursuant to the other terms of this
        Debenture.

       

      (ii) If
        the
        Company, at any time while this Debenture is outstanding, shall (a) pay a
        stock dividend or otherwise make a distribution or distributions on shares
        of
        its Common Stock or any other equity or equity equivalent securities payable
        in
        shares of Common Stock, (b) subdivide outstanding shares of Common Stock
        into a
        larger number of shares, (c) combine (including by way of reverse stock split)
        outstanding shares of Common Stock into a smaller number of shares, or (d)
        issue
        by reclassification of shares of the Common Stock any shares of capital stock
        of
        the Company, then the Fixed Conversion Price shall be multiplied by a fraction
        of which the numerator shall be the number of shares of Common Stock (excluding
        treasury shares, if any) outstanding before such event and of which the
        denominator shall be the number of shares of Common Stock outstanding 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.

       

      (iii) If
        the
        Company, at any time while this Debenture is outstanding, shall issue rights,
        options or warrants to all holders of Common Stock (and not to the Holder)
        entitling them to subscribe for or purchase shares of Common Stock at a price
        per share less than the Fixed Conversion Price, then the Fixed Conversion
        Price
        shall be multiplied by a fraction, of which the denominator shall be the
        number
        of shares of the Common Stock (excluding treasury shares, if any) outstanding
        on
        the date of issuance of such rights or warrants (plus the number of additional
        shares of Common Stock offered for subscription or purchase), and of which
        the
        numerator shall be the number of shares of the Common Stock (excluding treasury
        shares, if any) outstanding on the date of issuance of such rights or warrants,
        plus the number of shares which the aggregate offering price of the total
        number
        of shares so offered would purchase at the Fixed Conversion Price. Such
        adjustment shall be made whenever such rights or warrants are issued, and
        shall
        become effective immediately after the record date for the determination
        of
        stockholders entitled to receive such rights, options or warrants. However,
        upon
        the expiration of any such right, option or warrant to purchase shares of
        the
        Common Stock the issuance of which resulted in an adjustment in the Fixed
        Conversion Price pursuant to this Section, if any such right, option or warrant
        shall expire and shall not have been exercised, the Fixed Conversion Price
        shall
        immediately upon such expiration be recomputed and effective immediately
        upon
        such expiration be increased to the price which it would have been (but
        reflecting any other adjustments in the Fixed Conversion Price made pursuant
        to
        the provisions of this Section after the issuance of such rights or warrants)
        had the adjustment of the Fixed Conversion Price made upon the issuance of
        such
        rights, options or warrants been made on the basis of offering for subscription
        or purchase only that number of shares of the Common Stock actually purchased
        upon the exercise of such rights, options or warrants actually
        exercised.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (iv) If
        the
        Company or any subsidiary thereof, as applicable, at any time while this
        Debenture is outstanding, shall issue shares of Common Stock or rights,
        warrants, options or other securities or debt that are convertible into or
        exchangeable for shares of Common Stock (“Common
        Stock Equivalents”)
        entitling any Person to acquire shares of Common Stock, at a price per share
        less than the Fixed Conversion Price (if the holder of the Common Stock or
        Common Stock Equivalent so issued shall at any time, whether by operation
        of
        purchase price adjustments, reset provisions, floating conversion, exercise
        or
        exchange prices or otherwise, or due to warrants, options or rights per share
        which is issued in connection with such issuance, be entitled to receive
        shares
        of Common Stock at a price per share which is less than the Fixed Conversion
        Price, such issuance shall be deemed to have occurred for less than the Fixed
        Conversion Price), then, at the sole option of the Holder, the Fixed Conversion
        Price shall be adjusted to mirror the conversion, exchange or purchase price
        for
        such Common Stock or Common Stock Equivalents (including any reset provisions
        thereof) at issue. Such adjustment shall be made whenever such Common Stock
        or
        Common Stock Equivalents are issued. The Company shall notify the Holder
        in
        writing, no later than one (1) business day following the issuance of any
        Common
        Stock or Common Stock Equivalent subject to this Section, indicating therein
        the
        applicable issuance price, or of applicable reset price, exchange price,
        conversion price and other pricing terms. No adjustment under this Section
        shall
        be made as a result of issuances of Excluded Securities.

       

      (v) If
        the
        Company, at any time while this Debenture is outstanding, shall distribute
        to
        all holders of Common Stock (and not to the Holder) evidences of its
        indebtedness or assets or rights or warrants to subscribe for or purchase
        any
        security, then in each such case the Fixed Conversion Price at which this
        Debenture shall thereafter be convertible shall be determined by multiplying
        the
        Fixed Conversion Price in effect immediately prior to the record date fixed
        for
        determination of stockholders entitled to receive such distribution by a
        fraction of which the denominator shall be the Closing Bid Price determined
        as
        of the record date mentioned above, and of which the numerator shall be such
        Closing Bid Price on such record date less the then fair market value at
        such
        record date of the portion of such assets or evidence of indebtedness so
        distributed applicable to one outstanding share of the Common Stock as
        determined by the Board of Directors in good faith. In either case the
        adjustments shall be described in a statement provided to the Holder of the
        portion of assets or evidences of indebtedness so distributed or such
        subscription rights applicable to one share of Common Stock. Such adjustment
        shall be made whenever any such distribution is made and shall become effective
        immediately after the record date mentioned above.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (vi) In
        case
        of any reclassification of the Common Stock or any compulsory share exchange
        pursuant to which the Common Stock is converted into other securities, cash
        or
        property, the Holder shall have the right thereafter to, at its option, (A)
        convert the then outstanding principal amount, together with all accrued
        but
        unpaid interest and any other amounts then owing hereunder in respect of
        this
        Debenture into the shares of stock and other securities, cash and property
        receivable upon or deemed to be held by holders of the Common Stock following
        such reclassification or share exchange, and the Holder of this Debenture
        shall
        be entitled upon such event to receive such amount of securities, cash or
        property as the shares of the Common Stock of the Company into which the
        then
        outstanding principal amount, together with all accrued but unpaid interest
        and
        any other amounts then owing hereunder in respect of this Debenture could
        have
        been converted immediately prior to such reclassification or share exchange
        would have been entitled, or (B) require the Company to prepay the outstanding
        principal amount of this Debenture, plus all interest and other amounts due
        and
        payable thereon. The entire prepayment price shall be paid in cash. This
        provision shall similarly apply to successive reclassifications or share
        exchanges.

       

      (vii) Whenever
        the Conversion Price is adjusted pursuant to Section
        4
        hereof,
        the Company shall promptly mail to the Holder a notice setting forth the
        Conversion Price after such adjustment and setting forth a brief statement
        of
        the facts requiring such adjustment.

       

      (viii) If
        (A)
        the Company shall declare a dividend (or any other distribution) 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 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
        Debenture, and shall cause to be mailed to the Holder at its last address
        as it
        shall appear upon the stock books of the Company, 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 mail such notice or any defect therein or in
        the
        mailing thereof shall not affect the validity of the corporate action required
        to be specified in such notice. The Holder is entitled to convert this Debenture
        during the 20-day calendar period commencing the date of such notice to the
        effective date of the event triggering such notice.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (ix) In
        case
        of any (1) merger or consolidation of the Company or any subsidiary of the
        Company with or into another Person, or (2) sale by the Company or any
        subsidiary of the Company of more than one-half of the assets of the Company
        in
        one or a series of related transactions, a Holder shall have the right to
        (A)
        exercise any rights under Section
        2(b),
        (B)
        convert the aggregate amount of this Debenture then outstanding into the
        shares
        of stock and other securities, cash and property receivable upon or deemed
        to be
        held by holders of Common Stock following such merger, consolidation or sale,
        and such Holder shall be entitled upon such event or series of related events
        to
        receive such amount of securities, cash and property as the shares of Common
        Stock into which such aggregate principal amount of this Debenture could
        have
        been converted immediately prior to such merger, consolidation or sales would
        have been entitled, or (C) in the case of a merger or consolidation, require
        the
        surviving entity to issue to the Holder a convertible Debenture with a principal
        amount equal to the aggregate principal amount of this Debenture then held
        by
        such Holder, plus all accrued and unpaid interest and other amounts owing
        thereon, which such newly issued convertible Debenture shall have terms
        identical (including with respect to conversion) to the terms of this Debenture,
        and shall be entitled to all of the rights and privileges of the Holder of
        this
        Debenture set forth herein and the agreements pursuant to which this Debentures
        were issued. In the case of clause (C), the conversion price applicable for
        the
        newly issued shares of convertible preferred stock or convertible Debentures
        shall be based upon the amount of securities, cash and property that each
        share
        of Common Stock would receive in such transaction and the Conversion Price
        in
        effect immediately prior to the effectiveness or closing date for such
        transaction. The terms of any such merger, sale or consolidation shall include
        such terms so as to continue to give the Holder the right to receive the
        securities, cash and property set forth in this Section upon any conversion
        or
        redemption following such event. This provision shall similarly apply to
        successive such events.

       

      (d) Other
        Provisions.

       

      (i) The
        Company shall at all times reserve and keep available out of its authorized
        Common Stock the full number of shares of Common Stock issuable upon conversion
        of all outstanding amounts under this Debenture; and within three (3) Business
        Days following the receipt by the Company of a Holder's notice that such
        minimum
        number of Underlying Shares is not so reserved, the Company shall promptly
        reserve a sufficient number of shares of Common Stock to comply with such
        requirement.

       

      (ii) All
        calculations under this Section
        4
        shall be
        rounded up to the nearest $0.0001 or whole share.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (iii) The
        Company covenants that it will at all times reserve and keep available out
        of
        its authorized and unissued shares of Common Stock solely for the purpose
        of
        issuance upon conversion of this Debenture and payment of interest on this
        Debenture, each as herein provided, free from preemptive rights or any other
        actual contingent purchase rights of persons other than the Holder, not less
        than such number of shares of the Common Stock as shall (subject to any
        additional requirements of the Company as to reservation of such shares set
        forth in this Debenture or in the Transaction Documents) be issuable (taking
        into account the adjustments and restrictions set forth herein) upon the
        conversion of the outstanding principal amount of this Debenture and payment
        of
        interest hereunder. The Company covenants that all shares of Common Stock
        that
        shall be so issuable shall, upon issue, be duly and validly authorized, issued
        and fully paid, nonassessable and, if the Underlying Shares Registration
        Statement has been declared effective under the Securities Act, registered
        for
        public sale in accordance with such Underlying Shares Registration
        Statement.

       

      (iv) Upon
        a
        conversion hereunder the Company shall not be required to issue stock
        certificates representing fractions of shares of the Common Stock, but may
        if
        otherwise permitted, make a cash payment in respect of any final fraction
        of a
        share based on the Closing Bid Price at such time. If the Company elects
        not, or
        is unable, to make such a cash payment, the Holder shall be entitled to receive,
        in lieu of the final fraction of a share, one whole share of Common
        Stock.

       

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

       

      (vi) Nothing
        herein shall limit a Holder's right to pursue actual damages or declare an
        Event
        of Default pursuant to Section
        2
        herein
        for the Company 's failure to deliver certificates representing shares of
        Common
        Stock upon conversion within the period specified herein and such Holder
        shall
        have the right to pursue all remedies available to it at law or in equity
        including, without limitation, a decree of specific performance and/or
        injunctive relief, in each case without the need to post a bond or provide
        other
        security. 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. 

       

      (vii) In
        addition to any other rights available to the Holder, if the Company fails
        to
        deliver to the Holder such certificate or certificates pursuant to Section
        4(a)(i) by
        the
        fifth (5th)
        Trading
        Day after the Conversion Date, and if after such fifth (5th)
        Trading
        Day the Holder purchases (in an open market transaction or otherwise) Common
        Stock to deliver in satisfaction of a sale by such Holder of the Underlying
        Shares which the Holder anticipated receiving upon such conversion (a
“Buy-In”),
        then
        the Company shall (A) pay in cash to the Holder (in addition to any remedies
        available to or elected by the Holder) the amount by which (x) the Holder's
        total purchase price (including brokerage commissions, if any) for the Common
        Stock so purchased exceeds (y) the product of (1) the aggregate number of
        shares
        of Common Stock that such Holder anticipated receiving from the conversion
        at
        issue multiplied by (2) the market price of the Common Stock at the time
        of the
        sale giving rise to such purchase obligation and (B) at the option of the
        Holder, either reissue a Debenture in the principal amount equal to the
        principal amount of the attempted conversion or deliver to the Holder the
        number
        of shares of Common Stock that would have been issued had the Company timely
        complied with its delivery requirements under Section
        4(a)(i).
        For
        example, if the Holder purchases Common Stock having a total purchase price
        of
        $11,000 to cover a Buy-In with respect to an attempted conversion of Debentures
        with respect to which the market price of the Underlying Shares on the date
        of
        conversion was a total of $10,000 under clause (A) of the immediately preceding
        sentence, the Company shall be required to pay the Holder $1,000. The Holder
        shall provide the Company written notice indicating the amounts payable to
        the
        Holder in respect of the Buy-In.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      Section
        5. Notices.
         Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms hereof must be in writing and will be deemed to have
        been
        delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
        when
        sent by facsimile (provided confirmation of transmission is mechanically
        or
        electronically generated and kept on file by the sending party); or (iii)
        one
        (1) Trading Day after deposit with a nationally recognized overnight delivery
        service, in each case properly addressed to the party to receive the same.
        The
        addresses and facsimile numbers for such communications shall be:

      

      
        	
                If
                  to the Company, to:

              	 	
                Teleplus
                  World Corp. 

              
	 	 	
                6101
                  Blue Lagoon Drive, Suite 450

              
	 	 	
                Miami,
                  Florida 33126

              
	 	 	
                Attention: Marius
                  Silvasan, CEO

              
	 	 	
                Telephone: (786)
                  594-3939

              
	 	 	
                Facsimile: (786)
                  594-3920

              
	 	 	 
	
                With
                  a copy to: 

              	 	
                Arnstein
                  & Lehr LLP

              
	 	 	
                120
                  South Riverside Plaza, Suite 1200 

              
	 	 	
                Chicago,
                  Illinois 60606-3910

              
	 	 	
                Attention: Jerold
                  N. Siegan, Esq.

              
	 	 	
                Telephone: (312)
                  876-7874

              
	 	 	
                Facsimile: (312)
                  876-6274

              

      

      

      
        	
                If
                  to the Holder:

              	 	
                Cornell
                  Capital Partners, LP

              
	 	 	
                101
                  Hudson Street, Suite 3700

              
	 	 	
                Jersey
                  City, NJ 07303

              
	 	 	
                Attention: Mark
                  Angelo

              
	 	 	
                Telephone: (201)
                  985-8300

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      
        	
                With
                  a copy to:

              	 	
                Troy
                  Rillo, Esq or David Gonzalez, Esq.. 

              
	 	 	
                101
                  Hudson Street - Suite 3700

              
	 	 	
                Jersey
                  City, NJ 07302

              
	 	 	
                Telephone: (201)
                  985-8300

              
	 	 	
                Facsimile: (201)
                  985-8266

              

      

      

      or
        at
        such other address and/or facsimile number and/or to the attention of such
        other
        person as the recipient party has specified by written notice given to each
        other party three (3) business days prior to the effectiveness of such change.
        Written confirmation of receipt (i) given by the recipient of such notice,
        consent, waiver or other communication, (ii) mechanically or electronically
        generated by the sender's facsimile machine containing the time, date, recipient
        facsimile number and an image of the first page of such transmission or (iii)
        provided by a nationally recognized overnight delivery service, shall be
        rebuttable evidence of personal service, receipt by facsimile or receipt
        from a
        nationally recognized overnight delivery service in accordance with clause
        (i),
        (ii) or (iii) above, respectively.

       

      Section
        6. Definitions.
        For the
        purposes hereof, the following terms shall have the following
        meanings:

       

      “Approved
        Stock Plan”
means
        a
        stock option plan that has been approved by the Board of Directors of the
        Company prior to the date of the Securities Purchase Agreement, pursuant
        to
        which the Company’s securities may be issued only to any employee, officer or
        director for services provided to the Company.

       

      “Business
        Day”
means
        any day except Saturday, Sunday and any day which shall be a federal legal
        holiday in the United States or a day on which banking institutions are
        authorized or required by law or other government action to close.

       

      “Change
        of Control Transaction”
means
        the occurrence of (a) an acquisition after the date hereof by an individual
        or
        legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
        Exchange Act) of effective control (whether through legal or beneficial
        ownership of capital stock of the Company, by contract or otherwise) of in
        excess of fifty percent (50%) of the voting securities of the Company (except
        that the acquisition of voting securities by the Holder shall not constitute
        a
        Change of Control Transaction for purposes hereof), (b) a replacement at
        one
        time or over time of more than one-half of the members of the board of directors
        of the Company which is not approved by a majority of those individuals who
        are
        members of the board of directors on the date hereof (or by those individuals
        who are serving as members of the board of directors on any date whose
        nomination to the board of directors was approved by a majority of the members
        of the board of directors who are members on the date hereof), (c) the merger,
        consolidation or sale of fifty percent (50%) or more of the assets of the
        Company or any subsidiary of the Company in one or a series of related
        transactions with or into another entity, or (d) the execution by the Company
        of
        an agreement to which the Company is a party or by which it is bound, providing
        for any of the events set forth above in (a), (b) or (c).

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      “Closing
        Bid Price”
means
        the price per share in the last reported trade of the Common Stock on a Primary
        Market or on the exchange which the Common Stock is then listed as quoted
        by
        Bloomberg, LP.

       

      “Commission”
means
        the Securities and Exchange Commission.

       

      “Common
        Stock”
means
        the common stock, par value $0.001, of the Company and stock of any other
        class
        into which such shares may hereafter be changed or reclassified.

       

      “Conversion
        Date”
shall
        mean the date upon which the Holder gives the Company notice of their intention
        to effectuate a conversion of this Debenture into shares of the Company’s Common
        Stock as outlined herein.

       

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

       

      “Excluded
        Securities”
means,
        (a) shares issued or deemed to have been issued by the Company pursuant to
        an
        Approved Stock Plan (b) shares of Common Stock issued or deemed to be issued
        by
        the Company upon the conversion, exchange or exercise of any right, option,
        obligation or security outstanding on the date prior to date of the Securities
        Purchase Agreement, provided that the terms of such right, option, obligation
        or
        security are not amended or otherwise modified on or after the date of the
        Securities Purchase Agreement, and provided that the conversion price, exchange
        price, exercise price or other purchase price is not reduced, adjusted or
        otherwise modified and the number of shares of Common Stock issued or issuable
        is not increased (whether by operation of, or in accordance with, the relevant
        governing documents or otherwise) on or after the date of the Securities
        Purchase Agreement, and (c) the shares of Common Stock issued or deemed to
        be issued by the Company upon conversion of this Debenture.

       

      “Original
        Issue Date”
shall
        mean the date of the first issuance of this Debenture regardless of the number
        of transfers and regardless of the number of instruments, which may be issued
        to
        evidence such Debenture.

       

      “Person”
means
        a
        corporation, an association, a partnership, organization, a business, an
        individual, a government or political subdivision thereof or a governmental
        agency.

       

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

       

      “Trading
        Day”
means
        a
        day on which the shares of Common Stock are quoted on the OTC or quoted or
        traded on such Primary Market on which the shares of Common Stock are then
        quoted or listed; provided, that in the event that the shares of Common Stock
        are not listed or quoted, then Trading Day shall mean a Business
        Day.

       

      “Transaction
        Documents”
means
        the Securities Purchase Agreement or any other agreement delivered in connection
        with the Securities Purchase Agreement, including, without limitation, the
        Pledge Agreement, the Security Agreement, the Subsidiary Security Agreements,
        the Irrevocable Transfer Agent Instructions, and the Registration Rights
        Agreement.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      “Underlying
        Shares”
means
        the shares of Common Stock issuable upon conversion of this Debenture or
        as
        payment of interest in accordance with the terms hereof.

       

      “Underlying
        Shares Registration Statement”
means
        a
        registration statement meeting the requirements set forth in the Registration
        Rights Agreement, covering among other things the resale of the Underlying
        Shares and naming the Holder as a “selling stockholder” thereunder.

       

      Section
        7. Except
        as
        expressly provided herein, no provision of this Debenture shall alter or
        impair
        the obligations of the Company, which are absolute and unconditional, to
        pay the
        principal of, interest and other charges (if any) on, this Debenture at the
        time, place, and rate, and in the coin or currency, herein prescribed. This
        Debenture is a direct obligation of the Company. This Debenture ranks pari
        passu
        with all other Debentures now or hereafter issued under the terms set forth
        herein. As long as this Debenture is outstanding, the Company shall not and
        shall cause their subsidiaries not to, without the consent of the Holder,
        (i)
        amend its certificate of incorporation, bylaws or other charter documents
        so as
        to adversely affect any rights of the Holder; (ii) repay, repurchase or offer
        to
        repay, repurchase or otherwise acquire shares of its Common Stock or other
        equity securities other than as to the Underlying Shares to the extent permitted
        or required under the Transaction Documents; or (iii) enter into any agreement
        with respect to any of the foregoing. 

       

      Section
        8. This
        Debenture shall not entitle the Holder to any of the rights of a stockholder
        of
        the Company, including without limitation, the right to vote, to receive
        dividends and other distributions, or to receive any notice of, or to attend,
        meetings of stockholders or any other proceedings of the Company, unless
        and to
        the extent converted into shares of Common Stock in accordance with the terms
        hereof.

       

      Section
        9. If
        this
        Debenture is mutilated, lost, stolen or destroyed, the Company shall execute
        and
        deliver, in exchange and substitution for and upon cancellation of the mutilated
        Debenture, or in lieu of or in substitution for a lost, stolen or destroyed
        Debenture, a new Debenture for the principal amount of this Debenture so
        mutilated, lost, stolen or destroyed but only upon receipt of evidence of
        such
        loss, theft or destruction of such Debenture, and of the ownership hereof,
        and
        indemnity, if requested, all reasonably satisfactory to the
        Company.

       

      Section
        10. No
        indebtedness of the Company is senior to this Debenture in right of payment,
        whether with respect to interest, damages or upon liquidation or dissolution
        or
        otherwise. Without the Holder’s consent, the Company will not and will not
        permit any of their subsidiaries to, directly or indirectly, enter into,
        create,
        incur, assume or suffer to exist any indebtedness of any kind, on or with
        respect to any of its property or assets now owned or hereafter acquired
        or any
        interest therein or any income or profits there from that is senior in any
        respect to the obligations of the Company under this Debenture.

       

      Section
        11. This
        Debenture shall be governed by and construed in accordance with the laws
        of the
        State of New Jersey, without giving effect to conflicts of laws thereof.
        Each of
        the parties consents to the jurisdiction of the Superior Courts of the State
        of
        New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
        for the District of New Jersey sitting in Newark, New Jersey in connection
        with
        any dispute arising under this Debenture and hereby waives, to the maximum
        extent permitted by law, any objection, including any objection based on
        forum non conveniens
        to the
        bringing of any such proceeding in such jurisdictions. 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      Section
        12. If
        the
        Company fails to strictly comply with the terms of this Debenture, then the
        Company shall reimburse the Holder promptly for all fees, costs and expenses,
        including, without limitation, attorneys’ fees and expenses incurred by the
        Holder in any action in connection with this Debenture, including, without
        limitation, those incurred: (i) during any workout, attempted workout, and/or
        in
        connection with the rendering of legal advice as to the Holder’s rights,
        remedies and obligations, (ii) collecting any sums which become due to the
        Holder, (iii) defending or prosecuting any proceeding or any counterclaim
        to any
        proceeding or appeal; or (iv) the protection, preservation or enforcement
        of any
        rights or remedies of the Holder.

       

      Section
        13. Any
        waiver by the Holder of a breach of any provision of this Debenture shall
        not
        operate as or be construed to be a waiver of any other breach of such provision
        or of any breach of any other provision of this Debenture. The failure of
        the
        Holder to insist upon strict adherence to any term of this Debenture on one
        or
        more occasions shall not be considered a waiver or deprive that party of
        the
        right thereafter to insist upon strict adherence to that term or any other
        term
        of this Debenture. Any waiver must be in writing.

       

      Section
        14. If
        any
        provision of this Debenture is invalid, illegal or unenforceable, the balance
        of
        this Debenture shall remain in effect, and if any provision is inapplicable
        to
        any person or circumstance, it shall nevertheless remain applicable to all
        other
        persons and circumstances. If it shall be found that any interest or other
        amount deemed interest due hereunder shall violate applicable laws governing
        usury, the applicable rate of interest due hereunder shall automatically
        be
        lowered to equal the maximum permitted rate of interest. The Company covenants
        (to the extent that it may lawfully do so) that it shall not at any time
        insist
        upon, plead, or in any manner whatsoever claim or take the benefit or advantage
        of, any stay, extension or usury law or other law which would prohibit or
        forgive the Company from paying all or any portion of the principal of or
        interest on this Debenture as contemplated herein, wherever enacted, now
        or at
        any time hereafter in force, or which may affect the covenants or the
        performance of this indenture, and the Company (to the extent it may lawfully
        do
        so) hereby expressly waives all benefits or advantage of any such law, and
        covenants that it will not, by resort to any such law, hinder, delay or impeded
        the execution of any power herein granted to the Holder, but will suffer
        and
        permit the execution of every such as though no such law has been
        enacted.

       

      Section
        15. Whenever
        any payment or other obligation hereunder shall be due on a day other than
        a
        Business Day, such payment shall be made on the next succeeding Business
        Day.

       

      Section
        16. This
        Debenture is exchangeable for an equal aggregate principal amount of Debentures
        of different authorized denominations, as requested by the Holder surrendering
        the same. No service charge will be made for such registration of transfer
        or
        exchange.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      Section
        17. THE
        PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
        OF
        THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
        OR
        ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
        DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
        VERBAL
        OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
        FOR
        THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

       

      [REMAINDER
        OF PAGE INTENTIONLLY LEFT BLANK]

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Secured Convertible Debenture to be duly executed
        by a
        duly authorized officer as of the date set forth above.

       

      
        	 	 	 
	 	
                COMPANY:

                
                  TELEPLUS
                    WORLD CORP.

                

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                Name: Marius
                  Silvasan

              
	 	
                Title: CEO

              

      

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      EXHIBIT
        A

       

      REDEMPTION
        NOTICE

      

        
          	
                  Redemption
                    Date: _____________

                	
                  Mandatory
                    Redemption Amount:
                    _____________

                

        

      

       

      
        	
                Settlement
                  in Common Stock

              
	 
	
                Mandatory
                  Redemption Amount:

              	
                $
                  _______________________________________________        

              
	
                Redemption
                  Conversion Price:

              	
                $
                  _________

              
	
                Number
                  of shares of Common Stock to be issued:

              	________________________________________________
	 	
                  

              
	
                Please
                  issue the shares of Common Stock in the following name and to the
                  following address:

              
	 
	
                Issue
                  to:

              	
                Cornell
                  Capital Partners, LP

                101
                  Hudson Street, Suite 3700

                Jersey
                  City, NJ 07083 

                Tel:
                  (201) 985-8300

                Fax:
                  (201) 985-8266   

              
	 	 
	
                Broker
                  DTC Participant Code:

              	
                0158

              
	 	 
	
                Account
                  Number:

              	
                622
                  000 07

              

      

       

      
        	
                Settlement
                  in Cash

              
	
                Mandatory
                  Redemption Amount:

              	
                $
                  _______________________________________________        

              
	
                Redemption
                  Premium:

              	
                $
                  _______________________________________________        

              
	
                Total
                  Cash Settlement:

              	
                $
                  _______________________________________________        

              

      

       

      
        	
                Notification
                  of Settlement Option

              
	 
	
                o
Settlement
                  in Common
                  Stock

              	
                o
Settlement
                  in Cash

              

      

       

      
        	 	 	 	 
	 	 	 	 
	
                

                TELEPLUS
                  ENTERPRISES, INC.

              	 	 	
              
	
                By:

              	 	 	
              
	
                Its:

              	 	 	 
	 

                **THIS
                  REDEMPTION NOTICE MUST BE SIGNED & RETURNED VIA FACSIMILE TO THE
                  HOLDER AT (201) 946-0851 NO LATER THAN 5:00 N.Y.C. TIME ON THE
                  DAY PRIOR
                  TO THE REDEMPTION DATE**

              

      

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

       

      EXHIBIT
        B

       

      CONVERSION
        NOTICE

       

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

      

      
        	
                TO:
                  

              

      

      

      The
        undersigned hereby irrevocably elects to convert $
        ______________________________
        of the
        principal amount of the above Debenture into Shares of Common Stock of
TELEPLUS
        ENTERPRISES, INC.,
        according to the conditions stated therein, as of the Conversion Date written
        below.

       

      
        	
                Conversion
                  Date:

              	
                
                   ________________________________________________

                

              	
              
	
                Amount
                  to be converted:

              	
                $
                  _______________________________________________

              	 
	
                Conversion
                  Price:

              	
                $
                  _______________________________________________

              	 
	
                Number
                  of shares of Common Stock to be issued:

              	
                 ________________________________________________

              	 
	
                Amount
                  of Debenture

                Unconverted:

              	
                $
                  _______________________________________________

              	 

      

       

      
        	
                Please
                  issue the shares of Common Stock in the following name and to the
                  following address:

              
	 
	
                Issue
                  to:

              	
                Cornell
                  Capital Partners, LP

                101
                  Hudson Street, Suite 3700

                Jersey
                  City, NJ 07083 

                Tel:
                  (201) 985-8300

                Fax:
                  (201) 985-8266   

              
	 	 
	
                Authorized
                  Signature:

              	
                 ________________________________________________

              
	
                Name:

              	
                 ________________________________________________

              
	
                Title:

              	
                 ________________________________________________

              
	
                Broker
                  DTC Participant Code:

              	
                0158

              
	
                Account
                  Number:

              	
                622
                  000 07

              

      

      

      
        
           

        

        
          20THIRD
      AMENDED AND RESTATED SECURITY AGREEMENT

     

    THIS
      THIRD AMENDED AND RESTATED SECURITY AGREEMENT
      (the
“Agreement”), is
      entered into and made effective as of July 3, 2007, by and between TELEPLUS
      WORLD CORP., a
      Nevada
      corporation with its principal place of business located at 6101 Blue Lagoon
      Drive, Suite 450, Miami, Florida 33126 (the “Company”),
      and
      the BUYER(S)
      listed
      on Schedule I attached to the Securities Purchase Agreement dated the date
      hereof (the
      “Secured
      Party”).

     

    WHEREAS,
      the
      Company issued to the Secured Party, as provided in the Securities Purchase
      Agreements dated July 28, 2006 and December 13, 2005 between the Company and
      the
      Secured Party, and the Secured Party purchased an aggregate of Twelve Million
      Dollars ($12,000,000) of secured convertible debenture and (the “Prior
      Convertible Debentures”).
      This
      Agreement shall amend and restate the Second Amended and Restated Security
      Agreement between the Company and the Secured Party dated July 28, 2006;

     

    WHEREAS,
      the
      Company has requested the Secured Party to make additional financing available
      to the Company; 

     

    WHEREAS,
      the
      Secured Party is willing to provide such additional financing on the condition
      that such additional financing is secured hereunder and under the UCC-1 filed
      on
      August 3, 2005 (#2005024163-4) filed in connection with the Securities Purchase
      Agreement dated July 15, 2005;

     

    WHEREAS,
      the
      Company shall issue and sell to the Secured Party, as provided in the Securities
      Purchase Agreement of even date herewith between the Company and the Secured
      Party (the “Securities
      Purchase Agreement”),
      and
      the Secured Party shall purchase up to Three Million Dollars ($3,000,000) of
      secured convertible debentures (the “Convertible
      Debentures”),
      which
      shall be convertible into shares of the Company’s common stock, par value $0.001
      (the “Common
      Stock”)
      (as
      converted, the “Conversion
      Shares”)
      in the
      respective amounts set forth opposite each Buyer(s) name on Schedule I
      attached to the Securities Purchase Agreement;

     

    WHEREAS,
      to
      induce
      the Secured Party to enter into the transaction contemplated by the Securities
      Purchase Agreement, the Convertible Debentures, the Investor Registration Rights
      Agreement of even date herewith between the Company and the Secured Party (the
      “Investor
      Registration Rights Agreement”),
      the
      Third Amended and Restated Pledge and Escrow Agreement of even date herewith
      among the Company, the Secured Party, the Pledgors and David Gonzalez, Esq.
      (the
“Pledge
      Agreement”),
      and
      the Irrevocable Transfer Agent Instructions among the Company, the Secured
      Party, Transfer Agent, and David Gonzalez, Esq. (the “Transfer
      Agent Instructions”)
      (collectively referred to as the “Transaction
      Documents”),
      the
      Company hereby grants to the Secured Party a security interest in and to the
      pledged property identified on Exhibit
      A
      hereto
      (collectively referred to as the “Pledged
      Property”)
      until
      the satisfaction of the Obligations, as defined herein below.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

    ARTICLE
      1.

     

    DEFINITIONS
      AND INTERPRETATIONS

     

    Section
      1.1. Recitals.
      

     

    The
      above
      recitals are true and correct and are incorporated herein, in their entirety,
      by
      this reference.

     

    Section
      1.2. Interpretations.
      

     

    Nothing
      herein expressed or implied is intended or shall be construed to confer upon
      any
      person other than the Secured Party any right, remedy or claim under or by
      reason hereof.

     

    Section
      1.3. Obligations
      Secured.

     

    The
      obligations secured hereby are any and all obligations of the Company now
      existing or hereinafter incurred to the Secured Party, whether oral or written
      and whether arising before, on or after the date hereof including, without
      limitation, those obligations of the Company to the Secured Party under this
      Agreement, the Transaction Documents, the Prior Convertible Debentures, and
      any
      other amounts now or hereafter owed to the Secured Party by the Company
      thereunder or hereunder (collectively, the “Obligations”).

     

    ARTICLE
      2.

     

    PLEDGED
      COLLATERAL, ADMINISTRATION OF COLLATERAL 

    AND
      TERMINATION OF SECURITY INTEREST

     

    Section
      2.1. Pledged
      Property.

     

    (a) Company
      hereby pledges to the Secured Party, and creates in the Secured Party for its
      benefit, a security interest for such time until the Obligations are paid in
      full, in and to all of the property of the Company as set forth in Exhibit “A”
      attached
      hereto (collectively, the “Pledged
      Property”):

     

    The
      Pledged Property, as set forth in Exhibit “A”
      attached
      hereto, and the products thereof and the proceeds of all such items are
      hereinafter collectively referred to as the “Pledged
      Collateral.”

     

    (b) Simultaneously
      with the execution and delivery of this Agreement, the Company shall make,
      execute, acknowledge, file, record and deliver to the Secured Party any
      documents reasonably requested by the Secured Party to perfect its security
      interest in the Pledged Property. Simultaneously with the execution and delivery
      of this Agreement, the Company shall make, execute, acknowledge and deliver
      to
      the Secured Party such documents and instruments, including, without limitation,
      financing statements, certificates, affidavits and forms as may, in the Secured
      Party’s reasonable judgment, be necessary to effectuate, complete or perfect, or
      to continue and preserve, the security interest of the Secured Party in the
      Pledged Property, and the Secured Party shall hold such documents and
      instruments as secured party, subject to the terms and conditions contained
      herein.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Section
      2.2. Rights;
      Interests; Etc.

     

    (a) So
      long
      as no Event of Default (as hereinafter defined) shall have occurred and be
      continuing:

     

    (i) the
      Company shall be entitled to exercise any and all rights pertaining to the
      Pledged Property or any part thereof for any purpose not inconsistent with
      the
      terms hereof; and

     

    (ii) the
      Company shall be entitled to receive and retain any and all payments paid or
      made in respect of the Pledged Property.

     

    (b) Upon
      the
      occurrence and during the continuance of an Event of Default:

     

    (i) All
      rights of the Company to exercise the rights which it would otherwise be
      entitled to exercise pursuant to Section 2.2(a)(i) hereof and to
      receive payments which it would otherwise be authorized to receive and retain
      pursuant to Section 2.2(a)(ii) hereof shall be suspended, and all such
      rights shall thereupon become vested in the Secured Party who shall thereupon
      have the sole right to exercise such rights and to receive and hold as Pledged
      Collateral such payments; provided,
      however,
      that if
      the Secured Party shall become entitled and shall elect to exercise its right
      to
      realize on the Pledged Collateral pursuant to Article 5 hereof, then all
      cash sums received by the Secured Party, or held by Company for the benefit
      of
      the Secured Party and paid over pursuant to Section 2.2(b)(ii) hereof,
      shall be applied against any outstanding Obligations; and

     

    (ii) All
      interest, dividends, income and other payments and distributions which are
      received by the Company contrary to the provisions of
      Section 2.2(b)(i) hereof shall be received in trust for the benefit of
      the Secured Party, shall be segregated from other property of the Company and
      shall be forthwith paid over to the Secured Party; or 

     

    (iii) The
      Secured Party in its sole discretion shall be authorized to sell
      any
      or all of the Pledged Property at public or private sale in order to recoup
      all
      of the outstanding principal plus accrued interest owed pursuant to the
      Convertible Debenture as described herein

     

    (c) An
      Event
      of Default hereunder shall be deemed to occur upon an Event of Default under
      the
      Convertible Debentures.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    ARTICLE
      3.

     

    ATTORNEY-IN-FACT;
      PERFORMANCE

     

    Section
      3.1. Secured
      Party Appointed Attorney-In-Fact.

     

    Upon
      the
      occurrence of an Event of Default, the Company hereby appoints the Secured
      Party
      as its attorney-in-fact, with full authority in the place and stead of the
      Company and in the name of the Company or otherwise, from time to time in the
      Secured Party’s discretion to take any action and to execute any instrument
      which the Secured Party may reasonably deem necessary to accomplish the purposes
      of this Agreement, including, without limitation, to receive and collect all
      instruments made payable to the Company representing any payments in respect
      of
      the Pledged Collateral or any part thereof and to give full discharge for the
      same. The Secured Party may demand, collect, receipt for, settle, compromise,
      adjust, sue for, foreclose, or realize on the Pledged Property as and when
      the
      Secured Party may determine. To facilitate collection, the Secured Party may
      notify account debtors and obligors on any Pledged Property or Pledged
      Collateral to make payments directly to the Secured Party.

     

    Section
      3.2. Secured
      Party May Perform.

     

    If
      the
      Company fails to perform any agreement contained herein, the Secured Party,
      at
      its option, may itself perform, or cause performance of, such agreement, and
      the
      expenses of the Secured Party incurred in connection therewith shall be included
      in the Obligations secured hereby and payable by the Company under
      Section 8.3.

     

    ARTICLE
      4.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      4.1. Authorization;
      Enforceability.

     

    Each
      of
      the parties hereto represents and warrants that it has taken all action
      necessary to authorize the execution, delivery and performance of this Agreement
      and the transactions contemplated hereby; and upon execution and delivery,
      this
      Agreement shall constitute a valid and binding obligation of the respective
      party, subject to applicable bankruptcy, insolvency, reorganization, moratorium
      and similar laws affecting creditors’ rights or by the principles governing the
      availability of equitable remedies.

     

    Section
      4.2. Ownership
      of Pledged Property.

     

    The
      Company warrants and represents that it is the legal and beneficial owner of
      the
      Pledged Property free and clear of any lien, security interest, option or other
      charge or encumbrance except for that grant of a security interest in and to
      all
      undertakings, property and assets made by Teleplus Connect Corp., a subsidiary
      of the Company, in favor of Steve Kerekes, Melanie Kerekes, Jim Oattes, Grace
      Debrabandere, Jim Reddon, Monica Reddon, Tom Davis and Jane Davis pursuant
      to
      that certain General Security Agreement dated May 11, 2005, and except for
      that
      grant of a security interest in and to all undertakings, property and assets
      made by Telizon Inc., a subsidiary of the Company, in favor of James R. Fairhead
      In Trust, Tom Hards In Trust, Steve Kerekes In Trust, Paul Chapman In Trust,
      Jacques Pilon In Trust, Tom Davis In Trust, Alan R. Purser In Trust and Arnold
      McAuley In Trust (collectively the "Vendors")
      and a
      pledge to the Vendors of all of the shares of Telizon Inc. purchased by Teleplus
      Connect Corp., a subsidiary of the Company, from the Vendors pursuant to the
      General Security Agreement and Share Pledge Agreement among Teleplus Connect,
      Corp., Telizon Inc. and the Vendors.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    ARTICLE
      5.

     

    DEFAULT;
      REMEDIES; SUBSTITUTE COLLATERAL

     

    Section
      5.1. Default
      and Remedies.

     

    (a) If
      an
      Event of Default occurs, then in each such case the Secured Party may
      declare the Obligations to be due and payable immediately, by a notice in
      writing to the Company, and upon any such declaration, the Obligations shall
      become immediately due and payable. If an Event of Default occurs and is
      continuing for the period set forth therein, then the Obligations shall
      automatically become immediately due and payable without declaration or other
      act on the part of the Secured Party.

     

    (b) Upon
      the
      occurrence of an Event of Default, the Secured Party shall: (i) be entitled
      to receive all distributions with respect to the Pledged Collateral,
      (ii) to cause the Pledged Property to be transferred into the name of the
      Secured Party or its nominee, (iii) to dispose of the Pledged Property, and
      (iv) to realize upon any and all rights in the Pledged Property then held
      by the Secured Party.

     

    Section
      5.2. Method
      of Realizing Upon the Pledged Property: Other Remedies.

     

    Upon
      the
      occurrence of an Event of Default, in addition to any rights and remedies
      available at law or in equity, the following provisions shall govern the Secured
      Party’s right to realize upon the Pledged Property:

     

    (a) Any
      item
      of the Pledged Property may be sold for cash or other value in any number of
      lots at brokers board, public auction or private sale and may be sold without
      demand, advertisement or notice (except that the Secured Party shall give the
      Company ten (10) days’ prior written notice of the time and place or
      of the time after which a private sale may be made (the “Sale
      Notice”)),
      which notice period is hereby agreed to be commercially reasonable. At any
      sale
      or sales of the Pledged Property, the Company may bid for and purchase the
      whole
      or any part of the Pledged Property and, upon compliance with the terms of
      such
      sale, may hold, exploit and dispose of the same without further accountability
      to the Secured Party. The Company will execute and deliver, or cause to be
      executed and delivered, such instruments, documents, assignments, waivers,
      certificates, and affidavits and supply or cause to be supplied such further
      information and take such further action as the Secured Party reasonably shall
      require in connection with any such sale.

     

    (b) Any
      cash
      being held by the Secured Party as Pledged Collateral and all cash proceeds
      received by the Secured Party in respect of, sale of, collection from, or other
      realization upon all or any part of the Pledged Collateral shall be applied
      as
      follows:

     

    (i) to
      the
      payment of all amounts due the Secured Party for the expenses reimbursable
      to it
      hereunder or owed to it pursuant to Section 8.3 hereof;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (ii) to
      the
      payment of the Obligations then due and unpaid.

     

    (iii) the
      balance, if any, to the person or persons entitled thereto, including, without
      limitation, the Company.

     

    (c) In
      addition to all of the rights and remedies which the Secured Party may have
      pursuant to this Agreement, the Secured Party shall have all of the rights
      and
      remedies provided by law, including, without limitation, those under the Uniform
      Commercial Code.

     

    (i) If
      the
      Company fails to pay such amounts due upon the occurrence of an Event of Default
      which is continuing, then the Secured Party may institute a judicial proceeding
      for the collection of the sums so due and unpaid, may prosecute such proceeding
      to judgment or final decree and may enforce the same against the Company and
      collect the monies adjudged or decreed to be payable in the manner provided
      by
      law out of the property of Company, wherever situated.

     

    (ii) The
      Company agrees that it shall be liable for any reasonable fees, expenses and
      costs incurred by the Secured Party in connection with enforcement, collection
      and preservation of the Transaction Documents, including, without limitation,
      reasonable legal fees and expenses, and such amounts shall be deemed included
      as
      Obligations secured hereby and payable as set forth in Section 8.3
      hereof.

     

    Section
      5.3. Proofs
      of Claim.

     

    In
      case
      of the pendency of any receivership, insolvency, liquidation, bankruptcy,
      reorganization, arrangement, adjustment, composition or other judicial
      proceeding relating to the Company or the property of the Company or of such
      other obligor or its creditors, the Secured Party (irrespective of whether
      the
      Obligations shall then be due and payable as therein expressed or by declaration
      or otherwise and irrespective of whether the Secured Party shall have made
      any
      demand on the Company for the payment of the Obligations), subject to the rights
      of Previous Security Holders, shall be entitled and empowered, by intervention
      in such proceeding or otherwise:

     

    (i) to
      file
      and prove a claim for the whole amount of the Obligations and to file such
      other
      papers or documents as may be necessary or advisable in order to have the claims
      of the Secured Party (including any claim for the reasonable legal fees and
      expenses and other expenses paid or incurred by the Secured Party permitted
      hereunder and of the Secured Party allowed in such judicial proceeding),
      and

     

    (ii) to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same; and any custodian, receiver, assignee,
      trustee, liquidator, sequestrator or other similar official in any such judicial
      proceeding is hereby authorized by the Secured Party to make such payments
      to
      the Secured Party and, in the event that the Secured Party shall consent to
      the
      making of such payments directed to the Secured Party, to pay to the Secured
      Party any amounts for expenses due it hereunder.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Section
      5.4. Duties
      Regarding Pledged Collateral.

     

    The
      Secured Party shall have no duty as to the collection or protection of the
      Pledged Property or any income thereon or as to the preservation of any rights
      pertaining thereto, beyond the safe custody and reasonable care of any of the
      Pledged Property actually in the Secured Party’s possession.

     

    ARTICLE
      6.

     

    AFFIRMATIVE
      COVENANTS

     

    The
      Company covenants and agrees that, from the date hereof and until the
      Obligations have been fully paid and satisfied, unless the Secured Party shall
      consent otherwise in writing (as provided in Section 8.4
      hereof):

     

    Section
      6.1. Existence,
      Properties, Etc.

     

    (a) The
      Company shall do, or cause to be done, all things, or proceed with due diligence
      with any actions or courses of action, that may be reasonably necessary
      (i) to maintain Company’s due organization, valid existence and good
      standing under the laws of its state of incorporation, and (ii) to preserve
      and keep in full force and effect all qualifications, licenses and registrations
      in those jurisdictions in which the failure to do so could have a Material
      Adverse Effect (as defined below); and (b) the Company shall not do, or
      cause to be done, any act impairing the Company’s corporate power or authority
      (i) to carry on the Company’s business as now conducted, and (ii) to
      execute or deliver this Agreement or any other document delivered in connection
      herewith, including, without limitation, any UCC-1 Financing Statements required
      by the Secured Party to which it is or will be a party, or perform any of
      its obligations hereunder or thereunder. For purpose of this Agreement, the
      term
“Material
      Adverse Effect”
shall
      mean any material and adverse affect as determined by Secured Party in its
      sole
      discretion, whether individually or in the aggregate, upon (a) the
      Company’s assets, business, operations, properties or condition, financial or
      otherwise; (b) the Company’s to make payment as and when due of all or any
      part of the Obligations; or (c) the Pledged Property.

     

    Section
      6.2. Financial
      Statements and Reports.

     

    The
      Company shall furnish to the Secured Party within a reasonable time such
      financial data as the Secured Party may reasonably request, including, without
      limitation, the following:

     

    (a) The
      balance sheet of the Company as of the close of each fiscal year, the statement
      of earnings and retained earnings of the Company as of the close of such fiscal
      year, and statement of cash flows for the Company for such fiscal year, all
      in
      reasonable detail, prepared in accordance with generally accepted accounting
      principles consistently applied, certified by the chief executive and chief
      financial officers of the Company as being true and correct and accompanied
      by a
      certificate of the chief executive and chief financial officers of the Company,
      stating that the Company has kept, observed, performed and fulfilled each
      covenant, term and condition of this Agreement during such fiscal year and
      that
      no Event of Default hereunder has occurred and is continuing, or if an Event
      of
      Default has occurred and is continuing, specifying the nature of same, the
      period of existence of same and the action the Company proposes to take in
      connection therewith;

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b) A
      balance
      sheet of the Company as of the close of each month, and statement of earnings
      and retained earnings of the Company as of the close of such month, all in
      reasonable detail, and prepared substantially in accordance with generally
      accepted accounting principles consistently applied, certified by the chief
      executive and chief financial officers of the Company as being true and correct;
      and

     

    (c) Copies
      of
      all accountants' reports and accompanying financial reports submitted to the
      Company by independent accountants in connection with each annual examination
      of
      the Company.

     

    Section
      6.3. Accounts
      and Reports.

     

    The
      Company shall maintain a standard system of accounting in accordance with
      generally accepted accounting principles consistently applied and provide,
      at
      its sole expense, to the Secured Party the following:

     

    (a) as
      soon
      as available, a copy of any notice or other communication alleging any
      nonpayment or other material breach or default, or any foreclosure or other
      action respecting any material portion of its assets and properties, received
      respecting any of the indebtedness of the Company in excess of $100,000 (other
      than the Obligations), or any demand or other request for payment under any
      guaranty, assumption, purchase agreement or similar agreement or arrangement
      respecting the indebtedness or obligations of others in excess of $100,000,
      including any received from any person acting on behalf of the Secured Party
      or
      beneficiary thereof; and

     

    (b) within
      fifteen (15) days after the making of each submission or filing, a copy of
      any report, financial statement, notice or other document, whether periodic
      or
      otherwise, submitted to the shareholders of the Company, or submitted to or
      filed by the Company with any governmental authority involving or affecting
      (i)
      the Company that could have a Material Adverse Effect; (ii) the
      Obligations; (iii) any part of the Pledged Collateral; or (iv) any of
      the transactions contemplated in this Agreement or the Loan
      Instruments.

     

    Section
      6.4. Maintenance
      of Books and Records; Inspection.

     

    The
      Company shall maintain its books, accounts and records in accordance with
      generally accepted accounting principles consistently applied, and permit the
      Secured Party, its officers and employees and any professionals designated
      by
      the Secured Party in writing, at any time to visit and inspect any of its
      properties (including but not limited to the collateral security described
      in
      the Transaction Documents and/or the Loan Instruments), corporate books and
      financial records, and to discuss its accounts, affairs and finances with any
      employee, officer or director thereof.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Section
      6.5. Maintenance
      and Insurance.

     

    (a) The
      Company shall maintain or cause to be maintained, at its own expense, all of
      its
      assets and properties in good working order and condition, making all necessary
      repairs thereto and renewals and replacements thereof.

     

    (b) The
      Company shall maintain or cause to be maintained, at its own expense, insurance
      in form, substance and amounts (including deductibles), which the Company deems
      reasonably necessary to the Company’s business, (i) adequate to insure all
      assets and properties of the Company, which assets and properties are of a
      character usually insured by persons engaged in the same or similar business
      against loss or damage resulting from fire or other risks included in an
      extended coverage policy; (ii) against public liability and other tort
      claims that may be incurred by the Company; (iii) as may be required by the
      Transaction Documents and/or applicable law and (iv) as may be reasonably
      requested by Secured Party, all with adequate, financially sound and reputable
      insurers.

     

    Section
      6.6. Contracts
      and Other Collateral.

     

    The
      Company shall perform all of its obligations under or with respect to each
      instrument, receivable, contract and other intangible included in the Pledged
      Property to which the Company is now or hereafter will be party on a timely
      basis and in the manner therein required, including, without limitation, this
      Agreement.

     

    Section
      6.7. Defense
      of Collateral, Etc.

     

    The
      Company shall defend and enforce its right, title and interest in and to any
      part of: (a) the Pledged Property; and (b) if not included within the
      Pledged Property, those assets and properties whose loss could have a Material
      Adverse Effect, the Company shall defend the Secured Party’s right, title and
      interest in and to each and every part of the Pledged Property, each against
      all
      manner of claims and demands on a timely basis to the full extent permitted
      by
      applicable law.

     

    Section
      6.8. Payment
      of Debts, Taxes, Etc.

     

    The
      Company shall pay, or cause to be paid, all of its indebtedness and other
      liabilities and perform, or cause to be performed, all of its obligations in
      accordance with the respective terms thereof, and pay and discharge, or cause
      to
      be paid or discharged, all taxes, assessments and other governmental charges
      and
      levies imposed upon it, upon any of its assets and properties on or before
      the
      last day on which the same may be paid without penalty, as well as pay all
      other
      lawful claims (whether for services, labor, materials, supplies or
      otherwise) as and when due.

     

    Section
      6.9. Taxes
      and Assessments; Tax Indemnity.

     

    The
      Company shall (a) file all tax returns and appropriate schedules thereto
      that are required to be filed under applicable law, prior to the date of
      delinquency, (b) pay and discharge all taxes, assessments and governmental
      charges or levies imposed upon the Company, upon its income and profits or
      upon
      any properties belonging to it, prior to the date on which penalties attach
      thereto, and (c) pay all taxes, assessments and governmental charges or
      levies that, if unpaid, might become a lien or charge upon any of its
      properties; provided,
      however,
      that
      the Company in good faith may contest any such tax, assessment, governmental
      charge or levy described in the foregoing clauses (b) and (c) so long as
      appropriate reserves are maintained with respect thereto. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Section
      6.10. Compliance
      with Law and Other Agreements.
      

     

    The
      Company shall maintain its business operations and property owned or used in
      connection therewith in material compliance with (a) all applicable
      federal, state and local laws, regulations and ordinances governing such
      business operations and the use and ownership of such property, and (b) all
      agreements, licenses, franchises, indentures and mortgages to which the Company
      is a party or by which the Company or any of its properties is bound. Without
      limiting the foregoing, the Company shall pay all of its indebtedness promptly
      in accordance with the terms thereof.

     

    Section
      6.11. Notice
      of Default.
      

     

    The
      Company shall give written notice to the Secured Party of the occurrence of
      any
      default or Event of Default under this Agreement, the Transaction Documents
      or
      any other Loan Instrument or any other agreement of Company for the payment
      of
      money, promptly upon the occurrence thereof.

     

    Section
      6.12. Notice
      of Litigation.

     

    The
      Company shall give notice, in writing, to the Secured Party of (a) any
      actions, suits or proceedings wherein the amount at issue is in excess of
      $100,000, instituted by any persons against the Company, or materially affecting
      any of the assets of the Company, and (b) any dispute, not resolved within
      fifteen (15) days of the commencement thereof, between the Company on the one
      hand and any governmental or regulatory body on the other hand, which might
      reasonably be expected to have a Material Adverse Effect on the business
      operations or financial condition of the Company.

     

    ARTICLE
      7.

     

    NEGATIVE
      COVENANTS

     

    The
      Company covenants and agrees that, from the date hereof until the Obligations
      have been fully paid and satisfied, the Company shall not, unless the Secured
      Party shall consent otherwise in writing:

     

    Section
      7.1. Liens
      and Encumbrances.

     

    The
      Company shall not directly or indirectly make, create, incur, assume or permit
      to exist any assignment, transfer, pledge, mortgage, security interest or other
      lien or encumbrance of any nature in, to or against any part of the Pledged
      Property or of the Company’s capital stock, or offer or agree to do so, or own
      or acquire or agree to acquire any asset or property of any character subject
      to
      any of the foregoing encumbrances (including any conditional sale contract
      or
      other title retention agreement), or assign, pledge or in any way transfer
      or
      encumber its right to receive any income or other distribution or proceeds
      from
      any part of the Pledged Property or the Company’s capital stock; or enter into
      any sale-leaseback financing respecting any part of the Pledged Property as
      lessee, or cause or assist the inception or continuation of any of the
      foregoing.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    Section
      7.2. Certificate
      of Incorporation, By-Laws, Mergers, Consolidations, Acquisitions and
      Sales.

     

    Without
      the prior express written consent of the Secured Party, the Company shall not:
      (a) Amend its Certificate of Incorporation or By-Laws; (b) issue or sell
      its stock, stock options, bonds, notes or other corporate securities or
      obligations, except as otherwise permitted in Section 4(k) of the Securities
      Purchase Agreement of even date herewith; (c) be a party to any merger,
      consolidation or corporate reorganization, (d) purchase or otherwise
      acquire all or substantially all of the assets or stock of, or any partnership
      or joint venture interest in, any other person, firm or entity, (e) sell,
      transfer, convey, grant a security interest in or lease all or any substantial
      part of its assets, nor (f) create any subsidiaries nor convey any of its
      assets to any subsidiary.

     

    Section
      7.3. Management,
      Ownership.

     

    The
      Company shall not materially change its ownership, executive staff or management
      without the prior written consent of the Secured Party. The ownership, executive
      staff and management of the Company are material factors in the Secured Party's
      willingness to institute and maintain a lending relationship with the
      Company.

     

    Section
      7.4. Dividends,
      Etc.

     

    The
      Company shall not declare or pay any dividend of any kind, in cash or in
      property, on any class of its capital stock, nor purchase, redeem, retire or
      otherwise acquire for value any shares of such stock, nor make any distribution
      of any kind in respect thereof, nor make any return of capital to shareholders,
      nor make any payments in respect of any pension, profit sharing, retirement,
      stock option, stock bonus, incentive compensation or similar plan (except as
      required or permitted hereunder), without the prior written consent of the
      Secured Party.

     

    Section
      7.5. Guaranties;
      Loans.

     

    The
      Company shall not guarantee nor be liable in any manner, whether directly or
      indirectly, or become contingently liable after the date of this Agreement
      in
      connection with the obligations or indebtedness of any person or persons, except
      for (i) the indebtedness currently secured by the liens identified on the
      Pledged Property identified on Exhibit A hereto and (ii) the endorsement of
      negotiable instruments payable to the Company for deposit or collection in
      the
      ordinary course of business. The Company shall not make any loan, advance or
      extension of credit to any person other than in the normal course of its
      business.

     

    Section
      7.6. Debt.

     

    The
      Company shall not create, incur, assume or suffer to exist any additional
      indebtedness of any description whatsoever in an aggregate amount in excess
      of
      $100,000 (excluding any indebtedness of the Company to the Secured Party, trade
      accounts payable and accrued expenses incurred in the ordinary course of
      business and the endorsement of negotiable instruments payable to the Company,
      respectively for deposit or collection in the ordinary course of
      business).

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Section
      7.7. Conduct
      of Business.

     

    The
      Company will continue to engage, in an efficient and economical manner, in
      a
      business of the same general type as conducted by it on the date of this
      Agreement.

     

    Section
      7.8. Places
      of Business.

     

    The
      location of the Company’s chief place of business is 6101 Blue Lagoon Drive,
      Suite 450, Miami, Florida, 33126. The Company shall not change the location
      of
      its chief place of business, chief executive office or any place of business
      disclosed to the Secured Party or move any of the Pledged Property from its
      current location without thirty (30) days' prior written notice to the Secured
      Party in each instance. 

     

    ARTICLE
      8.

     

    MISCELLANEOUS

     

    Section
      8.1. Notices.

     

    All
      notices or other communications required or permitted to be given pursuant
      to
      this Agreement shall be in writing and shall be considered as duly given on:
      (a) the date of delivery, if delivered in person, by nationally recognized
      overnight delivery service or (b) five (5) days after mailing if
      mailed from within the continental United States by certified mail, return
      receipt requested to the party entitled to receive the same:

     

    
      	
              If
                to the Secured Party:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street-Suite 3700 

            
	 	
              Jersey
                City, New Jersey 07302 

            
	 	
              Attention: Mark
                Angelo

            
	 	
                                 
                Portfolio Manager

            
	 	
              Telephone: (201)
                986-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                a copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              And
                if to the Company:

            	
              Teleplus
                World Corp. 

            
	 	
              6101
                Blue Lagoon Drive, Suite 450

            
	 	
              Miami,
                Florida 33126

            
	 	
              Attention: Marius
                Silvasan, CEO

            
	 	
              Telephone: (786)
                594-3939

            
	 	
              Facsimile: (786)
                594-3920 

            
	 	 
	
              With
                a copy to:

            	
              Arnstein
                & Lehr LLP

            
	 	
              120
                South Riverside Plaza, Suite 1200 

            
	 	
              Chicago,
                Illinois 60606

            
	 	
              Attention: Jerold
                N. Siegan, Esq.

            
	 	
              Telephone: (312)
                876-7874

            
	 	
              Facsimile: (312)
                876-6274

            

    

    

    Any
      party
      may change its address by giving notice to the other party stating its new
      address. Commencing on the tenth (10th) day
      after the giving of such notice, such newly designated address shall be such
      party’s address for the purpose of all notices or other communications required
      or permitted to be given pursuant to this Agreement.

     

    Section
      8.2. Severability.

     

    If
      any
      provision of this Agreement shall be held invalid or unenforceable, such
      invalidity or unenforceability shall attach only to such provision and shall
      not
      in any manner affect or render invalid or unenforceable any other severable
      provision of this Agreement, and this Agreement shall be carried out as if
      any
      such invalid or unenforceable provision were not contained herein.

     

    Section
      8.3. Expenses.

     

    In
      the
      event of an Event of Default, the Company will pay to the Secured Party the
      amount of any and all reasonable expenses, including the reasonable fees and
      expenses of its counsel, which the Secured Party may incur in connection with:
      (i) the custody or preservation of, or the sale, collection from, or other
      realization upon, any of the Pledged Property; (ii) the exercise or
      enforcement of any of the rights of the Secured Party hereunder or
      (iii) the failure by the Company to perform or observe any of the
      provisions hereof.

     

    Section
      8.4. Waivers,
      Amendments, Etc.

     

    The
      Secured Party’s delay or failure at any time or times hereafter to require
      strict performance by Company of any undertakings, agreements or covenants
      shall
      not waiver, affect, or diminish any right of the Secured Party under this
      Agreement to demand strict compliance and performance herewith. Any waiver
      by
      the Secured Party of any Event of Default shall not waive or affect any other
      Event of Default, whether such Event of Default is prior or subsequent thereto
      and whether of the same or a different type. None of the undertakings,
      agreements and covenants of the Company contained in this Agreement, and no
      Event of Default, shall be deemed to have been waived by the Secured Party,
      nor
      may this Agreement be amended, changed or modified, unless such waiver,
      amendment, change or modification is evidenced by an instrument in writing
      specifying such waiver, amendment, change or modification and signed by the
      Secured Party.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    Section
      8.5. Continuing
      Security Interest.

     

    This
      Agreement shall create a continuing security interest in the Pledged Property
      and shall: (i) remain in full force and effect until payment in full of the
      Obligations; and (ii) be binding upon the Company and its successors and
      heirs and (iii) inure to the benefit of the Secured Party and its
      successors and assigns. Upon the payment or satisfaction in full of the
      Obligations, the Company shall be entitled to the return, at its expense, of
      such of the Pledged Property as shall not have been sold in accordance with
      Section 5.2 hereof or otherwise applied pursuant to the terms
      hereof.

     

    Section
      8.6. Independent
      Representation.

     

    Each
      party hereto acknowledges and agrees that it has received or has had the
      opportunity to receive independent legal counsel of its own choice and that
      it
      has been sufficiently apprised of its rights and responsibilities with regard
      to
      the substance of this Agreement.

     

    Section
      8.7. Applicable
      Law: Jurisdiction.

     

    This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New Jersey without regard to the principles of conflict of laws.
      The parties further agree that any action between them shall be heard in Hudson
      County, New Jersey, and expressly consent to the jurisdiction and venue of
      the
      Superior Court of New Jersey, sitting in Hudson County and the United States
      District Court for the District of New Jersey sitting in Newark, New Jersey
      for
      the adjudication of any civil action asserted pursuant to this
      Paragraph.

     

    Section
      8.8. Waiver
      of Jury Trial.

     

    AS
      A
      FURTHER INDUCEMENT FOR THE SECURED PARTY TO ENTER INTO THIS AGREEMENT AND TO
      MAKE THE FINANCIAL ACCOMMODATIONS TO THE COMPANY, THE COMPANY HEREBY WAIVES
      ANY
      RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS
      AGREEMENT AND/OR ANY AND ALL OTHER DOCUMENTS RELATED TO THIS TRANSACTION.

     

    Section
      8.9. Entire
      Agreement.

     

    This
      Agreement constitutes the entire agreement among the parties and supersedes
      any
      prior agreement or understanding among them with respect to the subject matter
      hereof.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the
      parties hereto have executed this Security Agreement as of the date first above
      written.

    
      	 	 	 
	 	
              COMPANY:

              TELEPLUS
                WORLD
                CORP.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name: Marius
              Silvasan
	 	
              Title: CEO

            

    

     

    
      	 	 	 
	 	
              SECURED
                PARTY:

              
                CORNELL
                  CAPITAL PARTNERS, LP

              

            
	 	
            	
            
	 	
              By: Yorkville
                Advisors, LLC

              
                Its: General
                  Partner

              

            
	 
 	
	

	
            	By:  	
            
	 	
              
Name: Mark
              Angelo
	 	
              Title: Portfolio
                Manager

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

    DEFINITION
      OF PLEDGED PROPERTY

     

    For
      the
      purpose of securing prompt and complete payment and performance by the Company
      of all of the Obligations, the Company unconditionally and irrevocably hereby
      grants to the Secured Party a continuing security interest in and to, and lien
      upon, the following Pledged Property of the Company:

     

    (a) all
      goods
      of the Company, including, without limitation, machinery, equipment, furniture,
      furnishings, fixtures, signs, lights, tools, parts, supplies and motor vehicles
      of every kind and description, now or hereafter owned by the Company or in
      which
      the Company may have or may hereafter acquire any interest, and all
      replacements, additions, accessions, substitutions and proceeds thereof, arising
      from the sale or disposition thereof, and where applicable, the proceeds of
      insurance and of any tort claims involving any of the foregoing;

     

    (b) all
      inventory of the Company, including, but not limited to, all goods, wares,
      merchandise, parts, supplies, finished products, other tangible personal
      property, including such inventory as is temporarily out of Company’s custody or
      possession and including any returns upon any accounts or other proceeds,
      including insurance proceeds, resulting from the sale or disposition of any
      of
      the foregoing;

     

    (c) all
      contract rights and general intangibles of the Company, including, without
      limitation, goodwill, trademarks, trade styles, trade names, leasehold
      interests, partnership or joint venture interests, patents and patent
      applications, copyrights, deposit accounts whether now owned or hereafter
      created;

     

    (d) all
      documents, warehouse receipts, instruments and chattel paper of the Company
      whether now owned or hereafter created;

     

    (e) all
      accounts and other receivables, instruments or other forms of obligations and
      rights to payment of the Company (herein collectively referred to as
“Accounts”),
      together with the proceeds thereof, all goods represented by such Accounts
      and
      all such goods that may be returned by the Company’s customers, and all proceeds
      of any insurance thereon, and all guarantees, securities and liens which the
      Company may hold for the payment of any such Accounts including, without
      limitation, all rights of stoppage in transit, replevin and reclamation and
      as
      an unpaid vendor and/or lienor, all of which the Company represents and warrants
      will be bona fide and existing obligations of its respective customers, arising
      out of the sale of goods by the Company in the ordinary course of
      business;

     

    (f) to
      the
      extent assignable, all of the Company’s rights under all present and future
      authorizations, permits, licenses and franchises issued or granted in connection
      with the operations of any of its facilities;

     

    (g) all
      products and proceeds (including, without limitation, insurance proceeds) from
      the above-described Pledged Property.

     

    
      
         

      

      
        A-1

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