~ ASHER ~

[lmcat]

KRANEM CORPORATION

8% convertible note payable in the original amount of $78,500 to Asher Enterprises, Inc. due on November 1, 2012, principal and interest payable on the due date. The "Variable Conversion Price" shall mean 60% multiplied by the Market Price (representing a discount rate of 40%). "Market Price" means the average of the lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading Day period ending one Trading Day prior to the date the Conversion Notice is sent by the Holder to the Borrower via facsimile. The originally issued discount was calculated at $55,488 as of June 30, 2012 unamortized debt discount was $44,101. Prepayments are allowed 90 days prior to the due date and interest accrues monthly.

6.0% unsecured note payable in the original amount of $110,000 to Xalted Holding Corporation due on October 16, 2012, principal and interest payable on the due date. Prepayments are allowed and interest accrues monthly.

7.0% unsecured convertible note payable in the original amount of $250,000 to Empire Capital Partners due March 19, 2012, principal and interest payable on the due date. Prepayments are allowed and interest accrues monthly. Empire Capital Partners informed the Company on June 27, 2012 that they wish to convert this note into shares of the Company in accordance with the conversion terms of the note. The note fully amortized the $176,635 of originally issued discount as of June 30, 2012.

6.0% unsecured note payable in the original amount of $90,000 to Xalted Holding Corporation due on January 16, 2013, principal and interest payable on the due date. Prepayments are allowed and interest accrues monthly.

6.0% unsecured note payable in the original amount of $35,000 to Xalted Holding Corporation due on April 16, 2013, principal and interest payable on the due date. Prepayments are allowed and interest accrues monthly.