Document:

Exhibit 10.1 - DEVELOPMENT AND EXCLUSIVE OPTION AGREEMENT BETWEEN QMT AND HBI

                                                                               EXHIBIT
      10.1

      

      DEVELOPMENT
        AND EXCLUSIVE OPTION AGREEMENT

      

      This
        Development and Exclusive Option Agreement (this “Agreement”),
        effective as of February 1st, 2007 (the “Effective
        Date”)
        is
        entered into by and between HANESBRANDS
        INC.,
        having
        an address and contact person at 1000 East Hanes Mill Road, Winston-Salem,
        North
        Carolina 27105 (Attention: Mike Abbott) (“HBI”)
        and
QUICK-MED
        TECHNOLOGIES, INC.,
        having
        an address and contact person at 3427 SW 42nd Way, Gainesville, Florida 32608
        (Attention: David Lerner, President) (“Quick-Med”).
        HBI
        and Quick-Med are sometimes referred to herein individually as a “Party”
and
        collectively as the “Parties”.

       

       

      RECITALS

       

      WHEREAS,
        HBI and Quick-Med are negotiating a license agreement, substantially in the
        form
        of Exhibit
        A
        (the
“License
        Agreement”),
        pursuant to which Quick-Med will grant to HBI a license under certain of
        Quick-Med’s technology relating to the control of ***** and ***** on clothing
        and apparel products;

      

      WHEREAS,
        HBI desires to obtain an option to enter into the License Agreement and obtain
        an exclusive license to the Quick-Med technology pursuant to the terms and
        conditions thereof and Quick-Med desires to grant such option to HBI upon
        the
        terms and conditions set forth herein.

      

      Now,
        therefore, in consideration of the mutual promises contained herein, the
        parties
        agree as follows:

      

      1.
        DEFINITIONS

      

      	1.1  	
              “Confidential
                Information”
                shall have the meaning set forth in Section 5.1 of this
                Agreement.

            

      

      	1.2  	
              “Field”
                shall mean the application of the
                Composition (as defined in the License Agreement) and Process (as
                defined
                in the License Agreement) to Underwear (as defined in the License
                Agreement) for the purpose of controlling ***** and
                *****.

            

      

      	1.3  	
              “Option”
                shall have the meaning set forth in Section 3.1 of this
                Agreement.

            

      

      	1.4  	
              “Option
                Period”
                shall mean the Term.

            

      

      	1.5  	
              “Licensed
                Products”
                shall mean the apparel and products identified
                in the definition of the Field.

            

      

      	1.6  	
              “Licensed
                Technology”
                shall have the meaning set forth in Section 1.14 of the License
                Agreement.

            

      

      	1.7  	
              “Term”
                shall mean the life of this Agreement, which shall commence on the
                Effective Date and shall remain in effect for six months (the
                “Term”),
                unless earlier terminated in accordance with the provisions of this
                Agreement. 

            

      

      	1.8  	
              “Territory”
                shall have the meaning set forth in Section 1.27 of the License
                Agreement.

            

      

      	2.  	
              DEVELOPMENT
                AND FUNDING OF DEVELOPMENT
                COSTS

            

      

      
        	
                2.1

              	
                Development
                  Activities.
                  Subject to the terms and conditions of this Agreement, Quick-Med
                  will use
                  commercially reasonable efforts during the Term to continue to
                  develop the
                  Licensed Technology for use in the Field. HBI
                  and Quick-Med agree that HBI will be conducting a ***** test during
                  the
                  Term. Quick-Med and HBI will reasonably cooperate on the development
                  of
                  the ***** test.

              

      

       

      
        *****
          This material has been omitted pursuant to a request for confidential treatment
          and filed separately with the Securities and Exchange
          Commission.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                2.2

              	
                Consulting
                  Work.
                  To the extent that during the Term HBI requires consulting work
                  from
                  Quick-Med in connection with the wear tests or for other work due
                  to
                  requests made by HBI (and accepted by Quick-Med) for development
                  work,
                  then the rate for such work shall be at $1000 per day per person.
                  In
                  addition, the reasonable out-of-pocket expenses for food, lodging,
                  travel,
                  and consumables incurred and for third party expenses (including,
                  without
                  limitation, independent third party consultants and laboratory
                  expenses)
                  incurred by Quick-Med will be separately billed as incurred and
                  paid by
                  HBI, subject to submission to HBI of evidence of such out-of-pocket
                  expenses in form and substance reasonably satisfactory to HBI.
                  All bills
                  shall be issued on the last day of the month in which the work
                  is
                  performed and paid within fifty-five (55) days of the date
                  thereof.

              

      

      

      	3.  	
              GRANT
                OF OPTION

            

      

      
        	
                3.1

              	
                Quick-Med
                  hereby grants to HBI an exclusive option (the “Option”)
                  during the Option Period to enter into the License Agreement in
                  substantially the form attached hereto and, pursuant to and subject
                  to the
                  terms and conditions thereof, to obtain an exclusive license to
                  use the
                  Licensed Technology to make, sell, offer to sell, and import Licensed
                  Products. During the Term and so long as this Agreement is not
                  terminated,
                  Quick-Med shall not enter into negotiations or an agreement with
                  a third
                  party granting to such
                  third party an
                  exclusive, royalty bearing license in the
                  Territory to use the Licensed
                  Technology to
                  make, sell, offer to sell and import any apparel products in the
                  Field
                  utilizing the Licensed Technology.

              

      

       

      
        	
                3.2

              	
                In
                  consideration of this Option, HBI
                  shall pay Quick-Med payments (“Option
                  Payments”)
                  in the amount of $45,000 every three month period during the Term
                  to
                  maintain the Option, commencing on the Effective Date, and payable
                  no
                  later than the 55th day following the first day of each three month
                  period
                  thereafter during the Term (each, an “Option
                  Payment Date").
                  All Option Payments due to Quick-Med and actually paid by HBI shall
                  be
                  ***** to ***** of the first ***** payable to Quick-Med under the
                  License
                  Agreement if and when such License Agreement is executed. During
                  the Term,
                  HBI agrees to run and complete three studies as follows and at
                  the
                  following time periods:

              

      

       

      
        	
                Study

                 

              	
                Period
                  of Study

                 

              
	
                Study
                  1: ***** study

                 

              	
                Execution
                  through February 28, 2007

                 

              
	
                Study
                  2***** Study

                 

              	
                March
                  1, 2007 through April 30, 2007

                 

              
	
                Study
                  3: ***** Study

                 

              	
                May
                  1, 2007 through end of Term

                 

              

      

      

       

      Quick
        Med
        and HBI shall cooperate on the design and execution of each study. The results
        of each of these studies shall be reported to Quick-Med in writing and shall
        be
        maintained as confidential information of both HBI and Quick-Med. At the
        conclusion of the ***** Study, the ***** Study and the *****Study, HBI shall
        provide to QMT with notice of “go/no-go” decision made in good faith as to
        whether NIMBUS shall be the preferred solution for each product line within
        the
        ***** Category as set forth in the attached License Agreement. In such notice,
        HBI shall inform QMT if it is proceeding with NIMBUS as a preferred solution
        for
        its ***** Longer program or not and identify which product categories, it
        will
        not be proceeding with to the next study, whereupon such product categories
        shall be no longer subject to the exclusivity requirement set forth in this
        Section 3. At the conclusion of the *****Study, the final “go/no-go” decision
        shall be made by HBI as to all product categories on or before the expiration
        of
        the Term. 

       

      4.
        EXERCISE OF OPTION 

      

      4.1   
HBI
        may
        exercise the Option by sending Quick-Med written notice of such exercise
        during
        the Option Period. 

       

      
        *****
          This material has been omitted pursuant to a request for confidential treatment
          and filed separately with the Securities and Exchange
          Commission.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                4.2

              	
                Upon
                  Quick-Med’s receipt of the written notice described in Section 4.1, the
                  parties shall complete, acting reasonably and in good faith, and
                  date the
                  License Agreement with the date of the Option Notice and execute
                  and
                  deliver to each other signed copies of the License Agreement, whereupon
                  the License Agreement shall immediately become effective. Such
                  terms to be
                  completed include the product lines selected by HBI, the formula
                  at
                  Exhibit 3.1(a) and the minimum sales in Sections 2.1(f) and 3.1(b)
                  shall
                  be adjusted to reflect additional minimum sales as reasonably agreed
                  by
                  the parties for the addition of product lines above and beyond
                  ***** and
                  ***** and *****.

              

      

      

      
        	
                4.3

              	
                If
                  HBI fails to exercise the Option during the Option Period, this
                  Agreement
                  and all rights granted hereunder, including without limitation
                  the Option,
                  shall immediately terminate and neither Party shall have any further
                  obligation to the other except to the extent such obligation was
                  incurred
                  prior to the effective date of such
                  termination.

              

      

      

      5.
        CONFIDENTIALITY

      

      
        	
                5.1

              	
                Each
                  Party acknowledges that, in furtherance of this Agreement, it may
                  wish to
                  disclose to the other Party certain business, technical or other
                  information that the disclosing party considers confidential, whether
                  or
                  not such information is in writing and whether or not it is identified
                  as
                  confidential (“Confidential
                  Information”).
                  During
                  the Term and for a period of five (5) years following the expiration
                  or
                  termination of this Agreement (provided, that with respect to any
                  Confidential Information related to the Composition and Process
                  (as
                  defined in the License Agreement), any patents owned or controlled
                  by
                  Quick-Med for so long as such patents remain unpublished, and any
                  know-how
                  of Quick-Med, the term of this confidentiality obligation shall
                  be
                  perpetual because such information constitutes trade secrets of
                  Quick-Med), each Party shall maintain in confidence any and all
                  Confidential Information of the other Party. Each Party further
                  agrees
                  that it shall not use for any purpose not authorized under this
                  Agreement
                  or disclose the Confidential Information to any third party, except
                  that
                  either party may disclose Confidential Information under a similar
                  obligation of confidentiality and non-use on a need-to-know basis
                  to its
                  directors, officers, employees, licensors, consultants and agents.
                  Upon
                  termination of this Agreement (unless the Option is exercised and
                  the
                  License Agreement becomes effective), each party shall return to
                  the other
                  Party Confidential Information received from the other in tangible
                  form.
                  Notwithstanding the foregoing, this Agreement and the contents
                  hereof
                  (excluding Exhibit 1.5 of the License Agreement) may be disclosed
                  by
                  either Party to its actual or potential investors and their
                  representatives in a private financing transaction, or to actual
                  or
                  potential acquirers or targets and their representatives in an
                  acquisition
                  transaction; provided that such investors, acquirers or targets
                  and their
                  representatives agree to keep the Confidential Information confidential
                  and not use it for any purpose not authorized under this Agreement.
                  

              

      

      

      5.2 Each
        party shall be relieved of its obligations under Section 5.1 with respect
        to any
        Confidential Information which:

      

      
        	 	
                (a)

              	
                was
                  already known to the receiving Party
                  as
                  demonstrated by the receiving Party by clear and convincing
                  evidence,
                  other than under an obligation of confidentiality, at the time
                  of
                  disclosure by the other Party;

              

      

      

      
        	 	
                (b)

              	
                was
                  generally available or known to the public or otherwise part of
                  the public
                  domain at the time of its disclosure to the receiving Party
                  as
                  demonstrated by the receiving Party by clear and convincing
                  evidence;

              

      

      

      
        	 	
                (c)

              	
                became
                  generally available or known to the public or otherwise part of
                  the public
                  domain after its disclosure through no fault attributable to the
                  receiving
                  Party
                  as
                  demonstrated by the receiving Party by clear and convincing
                  evidence;

              

      

      

      
        	 	
                (d)

              	
                was
                  disclosed to the receiving Party by a third party who had no obligation
                  to
                  the disclosing Party or another party not to disclose such information
                  to
                  others
                  as
                  demonstrated by the receiving Party by clear and convincing evidence;
                  or

              

      

      

      
        	 	
                (e)

              	
                was
                  independently discovered or developed by the receiving Party without
                  the
                  use of Confidential Information belonging to the disclosing
                  Party
                  as
                  demonstrated by the receiving Party by clear and convincing
                  evidence. 

              

      

       

      
        *****
          This material has been omitted pursuant to a request for confidential treatment
          and filed separately with the Securities and Exchange
          Commission.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      In
        addition to the foregoing, nothing in this Agreement shall restrict the right
        of
        either Party from disclosing Confidential Information pursuant to a judicial
        order issued by a court of competent jurisdiction, or other valid and binding
        court ordered discovery or if specifically obligated to make such disclosure
        under any law, regulation or rule (including without limitation under any
        applicable securities laws), in the reasonable opinion of its legal counsel,
        but
        only to the extent so ordered or required, provided, however, that the Party
        so
        ordered shall notify the other Party, in writing, of such pending action
        to
        compel disclosure, legal requirement or such order in sufficient time to
        permit
        adequate time for response by the affected Party, if available. The receiving
        Party shall provide all reasonable assistance, at the disclosing Party’s expense
        and direction, in opposing such disclosure order.

      

      6. INTELLECTUAL
        PROPERTY

      

      
        	
                6.1

              	
                Quick-Med
                  shall retain sole and exclusive ownership of all Licensed Technology,
                  any
                  improvements or modifications thereto, and any other inventions
                  or works
                  of authorship conceived or reduced to practice, or otherwise created,
                  during the performance of the development activities hereunder.
                  

              

      

      

      
        	
                6.2

              	
                Nothing
                  in this Agreement shall be construed to grant HBI any licenses,
                  expressed
                  or implied, or any other similar rights in the Licensed Technology
                  or any
                  other technology or information of Quick-Med, other than the express
                  Option grant under Section 4 of this
                  Agreement.

              

      

      

      7. TERMINATION

      

      
        	
                7.1

              	
                Neither
                  party may terminate this Agreement without cause during the Term.
                  

              

      

      

      	7.2.1  	
              Either
                Party may terminate this Agreement upon any material breach of this
                Agreement by the other Party that is not cured within fifteen (15)
                days
                after written notice thereof by the non-breaching
                Party.

            

      

      	7.3  	
               All
                rights and obligations applicable under this Agreement through the
                effective date of termination shall continue to apply until such
                date
                irrespective of any delivery of notice of
                termination.

            

      

      8. DISCLAIMER
        OF WARRANTIES;
        LIMITATION OF LIABILITY

      

      
        	
                8.1

              	 	
                HBI
                  ACKNOWLEDGES THAT THE DEVELOPMENT ACTIVITIES ARE EXPERIMENTAL IN
                  NATURE
                  AND QUICK-MED MAKES NO REPRESENTATION, EITHER EXPRESS OR IMPLIED,
                  INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS
                  FOR
                  A PARTICULAR PURPOSE WITH RESPECT TO ANY LICENSED TECHNOLOGY, OR
                  ANY
                  DATA,
                  PRODUCTS
                  OR
                  OTHER RESULTS OF THE DEVELOPMENT ACTIVITIES
                  HEREUNDER.

              

      

       

      9. PUBLICITY

      

      Except
        as
        required by law, regulation or rule, both Parties agree not to use the name
        of
        the other, nor of any member of the other’s personnel, in any publicity,
        advertising, or news release without the prior written approval of the other
        Party.

      

      10. 
        NOTICES

      

      
        	 	 	
                Notices,
                  payments and other communications hereunder shall be deemed to
                  have been
                  made when delivered, sent by telex or telegram, or when mailed
                  first
                  class, postage prepaid, and addressed to the Party at its address
                  first
                  set forth above, or such other address as may hereafter be designated
                  by
                  notice in writing.

              

      

      

      
        *****
          This material has been omitted pursuant to a request for confidential treatment
          and filed separately with the Securities and Exchange
          Commission.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      11. MISCELLANEOUS

      

      
        	
                11.1

              	
                This
                  Agreement embodies the entire understanding of the parties and
                  supersedes
                  all prior agreements, oral or written, and all other communications
                  between the parties relating to the subject matter hereof; provided
                  that
                  the License Agreement shall supersede this Agreement upon becoming
                  effective as set forth herein.

              

      

       

      
        	
                11.2

              	
                No
                  amendment or modification of this Agreement shall be valid or binding
                  upon
                  the parties unless made in writing and signed by their duly authorized
                  employees.

              

      

      

      
        	
                11.3

              	
                HBI
                  shall not assign its rights or obligations under this Agreement,
                  in whole
                  or in part, without the prior written consent of Quick-Med. This
                  Agreement
                  shall be binding on and inure to the benefit of the successors
                  or
                  permitted assigns of the Parties, and all entities controlled by
                  them.
                   

              

      

      

      
        	
                11.4

              	
                If
                  a court of competent jurisdiction declares any provision of this
                  Agreement
                  invalid or unenforceable, or if any government or other agency
                  having
                  jurisdiction over either Party deems any provision to be contrary
                  to any
                  laws, then that provision shall be severed and the remainder of
                  the
                  Agreement shall continue in full force and effect. To the extent
                  possible,
                  the Parties shall revise such invalidated provision in a manner
                  that will
                  render such provision valid without impairing the Parties’ original
                  intent.

              

      

      

      
        	
                11.5

              	
                The
                  failure of a Party in any one or more instances to insist upon
                  strict
                  performance of any of the terms and conditions of this Agreement
                  shall not
                  constitute a waiver or relinquishment, to any extent, of the right
                  to
                  assert or rely upon any such terms or conditions on any future
                  occasion.

              

      

      

      
        	
                11.6

              	
                No
                  expiration or termination of this Agreement shall relieve either
                  party of
                  any obligation accruing prior to such expiration or termination.
                  The
                  provisions of Sections 2
                  (to the extent applicable to payments or reports due after termination
                  or
                  termination of this Agreement), 5, 6, 8, 9, 10, this 11.6, 11.7,
                  and 11.8
                  shall
                  survive the expiration or termination of this
                  Agreement.

              

      

      

      
        	
                11.7

              	
                The
                  relationship between the Parties is that of independent contractors.
                  The
                  Parties are not joint venturers, partners, principal and agent,
                  master and
                  servant, employer or employee, and have no other relationship other
                  than
                  independent contracting parties. Neither Party has the right or
                  authority
                  to assume, create, or incur any third party liability or obligation
                  of any
                  kind, express or implied, against or in the name of or on behalf
                  of
                  another except as expressly set forth in this
                  Agreement.

              

      

      
        	
                11.8

              	
                This
                  Agreement shall be governed by and construed in accordance with
                  the laws
                  of the
                  State of Florida
                  without regard to the conflicts of law principles thereof. With
                  respect to any dispute under this Agreement, if
                  HBI brings suit against Quick-Med it shall have the exclusive option
                  to do
                  so in the courts (state or federal) of Florida, and the Parties
                  shall
                  submit to the exclusive jurisdiction of such courts. If Quick-Med
                  brings
                  suit against HBI it shall have the exclusive option to do so in
                  the in the
                  courts (state or federal) of North Carolina, and the Parties shall
                  submit
                  to the exclusive jurisdiction of such
                  courts.

              

      

      

      
        	
                11.9

              	
                The
                  Agreement may be executed in two or more counterparts, each of
                  which shall
                  be deemed an original, but all of which together shall constitute
                  one and
                  the same instrument.

              

      

      

      

        *****
          This material has been omitted pursuant to a request for confidential treatment
          and filed separately with the Securities and Exchange
          Commission.

      

      
        
          
             

            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

      

      IN
        WITNESS WHEREOF, the parties have executed the Agreement as of the date first
        set forth above.

      

      
        	
              
	
                HANESBRANDS
                  INC.

                 

                 

                By:
                  /s/ Philip Usherwood

                Title:
                  VP Purchasing

                Date:
                  February 5, 2007

              	
                QUICK
                  MED TECHNOLOGIES, INC.

                 

                 

                By:
                  /s/ David Lerner

                Title:
                  President

                Date:
                  February 5, 2007

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      LICENSE
        AGREEMENTSECURITIES
      PURCHASE AGREEMENT

    AND
      PLAN OF REORGANIZATION

     

    THIS
      SECURITIES PURCHASE AGREEMENT AND PLAN OF REORGANIZATION (the “Agreement”)
      is
      entered into effective as of January 9, 2007 by and among Advanced Plant
      Pharmaceuticals, Inc. a Delaware corporation (the “Company”),
      World
      Health Energy, Inc., a Delaware corporation (the “Target”),
      and
      the stockholders of Target (the “Selling
      Stockholders”)
      listed
      on Exhibit A attached hereto.

    

    R
      E C I T A L S

     

    A.    The
      Company has authorized capital stock consisting of 880,000,000 shares of common
      stock (“Common
      Stock”),
      $0.0007 par value, of which 798,157,996 shares are issued and outstanding and
      10,000,000 shares of preferred stock, par value $0.0007 (“Preferred
      Stock”),
      of
      which 5,000,000 shares have been designated as Series A Preferred Stock, par
      value $0.0007 (the “Series
      A Preferred”)
      of
      which 5,000,000 shares are issued and outstanding.

     

    B.    Target
      has authorized capital stock consisting of 1,000 shares of common stock, no
      par
      value, of which 100 shares (the “Target
      Shares”)
      are
      issued and outstanding and held by the Selling Stockholders. Target is a
      renewable energy company focused on developing and producing alternative fuels
      in biodiesel production plans (the “Business”)

     

    C.    The
      Selling Stockholders wish to sell, and the Company wishes to purchase, all
      of
      the Target Shares on the Closing Date (as defined below), in exchange for
      55,000,000 shares of the Company’s Common Stock (the “Shares”)
      as
      more particularly set forth below.

    

    A
      G R E E M E N T

     

    It
      is
      agreed as follows: 

     

    1.    Securities
      Purchase and Reorganization

     

    1.1    Agreement
      to Exchange Securities.
      Subject
      to the terms and upon the conditions set forth herein, each Selling Stockholder
      agrees to sell, assign, transfer and deliver to the Company, and the Company
      agrees to purchase from each Selling Stockholder, the Target Shares owned by
      the
      respective Selling Stockholder as set forth on Exhibit A attached hereto, in
      exchange for the transfer, by the Company to each Selling Stockholder a pro
      rata
      share of the Shares, as follows: (i) 5,000,000 Shares transferred to the Selling
      Stockholders at Closing (the “Initial
      Shares”)
      and
      (ii) 50,000,000 Shares (the “Remaining
      Shares”)
      to be
      issued to the Selling Stockholders within 3 days of the filing of an amendment
      to the Company’s Articles of Incorporation with the Delaware Secretary of State
      (the “Effective
      Date”)
      to
      either (A) increase the Company’s authorized Common Stock to at least
      930,000,000 (a “Capitalization
      Increase”)
      or (B)
      to effectuate a reverse split of the Company’s Common Stock (the “Reverse
      Split”).
      If
      the Company effects a Reverse Split prior to any Capitalization Increase, the
      Remaining Shares due Selling Stockholders shall be proportionately reduced
      to
      give effect to the Reverse Split. For example, if the Company effects a 1-for-10
      Reverse Split, the Selling Stockholders would receive 5,000,000 Remaining
      Shares. The Company is under no obligation to take any action to effect
      either a Capitalization Increase or a Reverse Split. The number of Shares that
      each Selling Stockholder is entitled to receive as determined hereunder is
      set
      forth opposite each Selling Stockholder’s name on Exhibit
      A.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.2.    Instruments
      of Transfer.

     

    (a)    Target
      Shares.
      Each
      Selling Stockholder shall deliver to the Company original certificates
      evidencing the Target Shares along with executed stock powers, in form and
      substance satisfactory to the Company, for purposes of assigning and
      transferring all of their right, title and interest in and to the Target Shares.
      From time to time after the Closing Date, and without further consideration,
      the
      Selling Stockholders will execute and deliver such other instruments of transfer
      and take such other actions as the Company may reasonably request in order
      to
      facilitate the transfer to the Company of the securities intended to be
      transferred hereunder.

     

    (b)    The
      Shares.
      The
      Company shall deliver to the Selling Stockholders on (i) the Closing Date
      original certificates evidencing the Initial Shares and (ii) after the Effective
      Date, the Remaining Shares, in form and substance satisfactory to the Selling
      Stockholders, in order to effectively vest in the Selling Stockholders all
      right, title and interest in and to the Shares. From time to time after the
      Closing Date, and without further consideration, the Company will execute and
      deliver such other instruments and take such other actions as the Selling
      Stockholders may reasonably request in order to facilitate the issuance to
      them
      of the Shares.

     

    1.3    Closing.
      The
      closing (“Closing”)
      of the
      exchange of the Target Shares and the Initial Shares shall take place at the
      offices of Spectrum Law Group, LLP, 1900 Main Street, Suite 125, Irvine, CA
      92614 at 10:00 a.m., Pacific Daylight Time, on the third (3rd)
      Business Day following the satisfaction (or, to the extent permitted by Law,
      waiver by the party or parties entitled to the benefits thereof) of the
      conditions set forth in Sections 5.1 and 5.2 (other than those conditions that
      by their nature are to be satisfied at the Closing, but subject to the
      fulfillment or waiver of those conditions), or at such other place, time and
      date as shall be agreed in writing by the Company and the Target. The date
      on
      which the Closing occurs is referred to in this Agreement as the “Closing
      Date.”

    

    1.4    Tax
      Free Reorganization.
      The
      parties intend that the transaction under this Agreement qualify as a tax-free
      reorganization under Section 368(a)(1)(B) of the Internal Revenue Code of 1986,
      as amended.

     

    2.    Representations,
      Warranties and Covenants of the Selling Stockholders.
      Each
      Selling Stockholder severally represents, warrants and covenants to and with
      the
      Company with respect to himself, as follows:

     

    2.1.   Title
      to Shares.
      Each
      Selling Stockholder is the sole record and beneficial owner of the Target Shares
      held by such Selling Stockholder, free and clear of all liens, encumbrances,
      equities, assessments and claims, and that there are no warrants, options,
      subscriptions, calls, or other similar rights of any kind for the issuance
      or
      purchase of any of the Target Shares or other securities of the Target held
      by
      such Selling Stockholder. Upon delivery of
      the
      Target Shares by each Selling Stockholder and payment of the Company Shares
      in
      full by the Company pursuant to this Agreement, each Selling Stockholder will
      transfer to the Company valid legal title to the Target Shares held by such
      Selling Stockholder, free and clear of all restrictions, liens, encumbrances,
      equities, assessments and claims (other than any restrictions, liens,
      encumbrances, equities, assessments or claims as may arise from or as a result
      of (i) restrictions under applicable Federal and state securities laws, and
      (ii)
      any act or omission of the Company).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.2.    Authority
      Relative to this Agreement.
      Each
      Selling Stockholder has all requisite individual or corporate power and
      authority, as the case may be, to enter into and to carry out all of the terms
      of this Agreement and all other documents executed and delivered in connection
      herewith (collectively, the “Documents”).
      All
      individual or corporate action, as the case may be, on the part of each Selling
      Stockholder necessary for the authorization, execution, delivery and performance
      of the Documents by such Selling Stockholder has been taken and no further
      authorization on the part of such Selling Stockholder is required to consummate
      the transactions provided for in the Documents. When executed and delivered
      by
      each Selling Stockholder, the Documents shall constitute the valid and legally
      binding obligation of such Selling Stockholder, enforceable in accordance with
      their respective terms, except as limited by applicable bankruptcy, insolvency
      reorganization and moratorium laws and other laws affecting enforcement of
      creditor’s rights generally and by general principles of equity.

     

    2.3.    Securities
      Matters.

     

    (a)    Each
      Selling Stockholder understands that (i) the Shares have not been registered
      or
      qualified under the Securities Act of 1933, as amended (the “Securities
      Act”)
      or any
      state securities or “blue sky” laws, on the ground that the sale provided for in
      this Agreement and the issuance of the securities hereunder is exempt from
      registration and qualification under Sections 4(2) and 18 of the Securities
      Act,
      and (ii) the Company’s reliance on such exemptions is predicated on the each
      Selling Stockholder’s representations set forth herein.

    

    (b)    Each
      Selling Stockholder acknowledges that an investment in the Company involves
      an
extremely
      high degree of risk,
      lack of
      liquidity and substantial restrictions on transferability and that such Selling
      Stockholder may lose his, her or its entire investment in the
      Shares.

    

    (c)    The
      Company has made available to each Selling Stockholder or the advisors of any
      such Selling Stockholder the opportunity to obtain information to evaluate
      the
      merits and risks of the investment in the Shares, and each Selling Stockholder
      has received all information requested from the Company. Each Selling
      Stockholder has had an opportunity to ask questions and receive answers from
      the
      Company regarding the terms and conditions of the offering of the Shares and
      the
      business, properties, plans, prospects, and financial condition of the Company
      and to obtain additional information as such Selling Stockholder has deemed
      appropriate for purposes of investing in the Shares pursuant to this
      Agreement.

    

    (d)    Each
      Selling Stockholder, personally or through advisors, has expertise in evaluating
      and investing in private placement transactions of securities of companies
      in a
      similar stage of development to the Company and has sufficient knowledge and
      experience in
      financial and business matters to assess the relative merits and risks of an
      investment in the Company. In connection with the purchase of the Shares, each
      Selling Stockholder has relied solely upon independent investigations made
      by
      such Selling Stockholder and has consulted such Selling Stockholder’s own
      investment advisors, counsel and accountants. Each Selling Stockholder has
      adequate means of providing for current needs and personal contingencies, has
      no
      need for liquidity, and can sustain a complete loss of the investment in the
      Shares.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)    The
      Shares which the Company is to issue hereunder will be acquired for each Selling
      Stockholder’s own account, for investment purposes, not as a nominee or agent,
      and not with a view to or for sale in connection with any distribution of the
      Shares in violation of applicable securities laws.

    

    (f)    Each
      Selling Stockholder understands that no federal or state agency has passed
      upon
      the Shares or made any finding or determination as to the fairness of the
      investment in the Shares.

    

    (g)    Each
      Selling Stockholder is an “Accredited Investor” as defined in Rule 501(a) of
      Regulation D promulgated under the Securities Act. Each Selling Stockholder
      acknowledges that the Shares may be purchased only by persons who come within
      the definition of an “Accredited Investor” as that term is defined in Rule
      501(a) of Regulation D promulgated under the Securities Act.

    

    (h)    No
      Selling Stockholder has received any general solicitation or general advertising
      concerning the Shares, nor is any Selling Stockholder aware of any such
      solicitation or advertising.

    

    (i)    Each
      Selling Stockholder understands that the Shares will be characterized as
“restricted” securities under federal securities laws inasmuch as they are being
      acquired in a transaction not involving a public offering and that under such
      laws and applicable regulations such securities may be resold without
      registration under the Securities Act only in certain limited circumstances.
      Each Selling Stockholder agrees that such Selling Stockholder will not sell
      all
      or any portion of the Shares except pursuant to registration under the
      Securities Act or pursuant to an available exemption from registration under
      the
      Securities Act. Each Selling Stockholder understands and acknowledges that
      all
      certificates representing the Shares shall bear the following legend or a legend
      of similar import and that the Company shall refuse to transfer the Shares
      except in accordance with such restrictions:

    

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER CERTAIN STATE
      SECURITIES LAWS. NO SALE OR TRANSFER OF THESE SHARES MAY BE MADE IN THE ABSENCE
      OF (1) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR (2) AN OPINION
      OF
      COUNSEL THAT REGISTRATION UNDER THE ACT OR UNDER APPLICABLE STATE SECURITIES
      LAWS IS NOT

    REQUIRED
      IN CONNECTION WITH SUCH PROPOSED SALE OR TRANSFER.”

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    2.4.    Full
      Disclosure.
      No
      representations or warranties made by any Selling Stockholder in this Agreement,
      in any of the exhibits or schedules attached to this Agreement, or in the
      schedules attached hereto, or in any other statements furnished or to be
      furnished by the such Selling Stockholder to the Company pursuant to this
      Agreement contains any untrue statement of a material fact or omits to state
      a
      material fact necessary to make any statement contained herein or therein not
      misleading.
      Copies
      of all documents heretofore or hereafter delivered or made available to the
      Company by any Selling Stockholder pursuant hereto were or will be complete
      and
      accurate records of such documents.

     

    3.    Representations,
      Warranties and Covenants of the Target and the Selling
      Stockholders.
      The
      Target and each Selling Stockholder jointly and severally represents, warrants
      and covenants to the Company as follows (exceptions to the following
      representations and warranties shall be set forth on Schedules 3.1 through
      3.22,
      which collectively are referred to as the “Disclosure
      Schedule”):

     

    3.1.    Authority
      Relative to this Agreement.
      The
      Target has all requisite corporate power and authority to enter into and to
      carry out all of the terms of this Agreement and all other documents executed
      and delivered in connection herewith (collectively, the “Documents”).
      All
      corporate action on the part of the Target necessary for the authorization,
      execution, delivery and performance of the Documents by the Target has been
      taken and no further authorization on the part of the Target is required to
      consummate the transactions provided for in the Documents. When executed and
      delivered by the Target, the Documents shall constitute the valid and legally
      binding obligation of the Target, enforceable in accordance with their
      respective terms, except as limited by applicable bankruptcy, insolvency
      reorganization and moratorium laws and other laws affecting enforcement of
      creditor’s rights generally and by general principles of equity.

     

    3.2.    Capitalization
      of the Target.
      The
      authorized capital stock of the Target consists of 1,000 shares of common stock,
      no par value (the “Target
      Common Stock”),
      of
      which 100 shares are issued and outstanding. All issued and outstanding shares
      of Target Common Stock are duly authorized, validly issued, fully paid and
      nonassessable, and are held of record by the Selling Stockholders. There are
      no
      outstanding options, warrants, rights, subscriptions, calls, contracts or other
      agreements to issue, purchase or acquire, or securities convertible into, shares
      of capital stock or other securities of any kind representing an ownership
      interest in the Target and no Selling Stockholder is a party to any proxy,
      voting trust or other agreements with respect to the voting of the Target Common
      Stock.

     

    3.3.    Subsidiaries.
      Target
      has, and as of the Closing Date will have, no subsidiaries.

     

    3.4.    Organization
      and Standing.
      The
      Target is a corporation duly organized, validly existing and in good standing
      under the laws of its state or jurisdiction of Delaware and is duly qualified
      or
      registered to do business as a foreign corporation and is in good standing
      in
      each jurisdiction in which the character of the business conducted by it or
      the
      location of the properties
      owned or leased by it makes such qualification necessary and where the failure
      to be so qualified would have a material adverse effect on the Target.
      The Target
      has the full corporate power and authority to own or lease and operate its
      properties and to carry on its business as now being conducted.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.5.    No
      Default or Legal Restrictions.
      The
      Target is not in violation of its articles of incorporation, bylaws or other
      governing documents. The Target is not in default under, or in breach of any
      term or provision of, any contract, agreement, lease, license, commitment,
      mortgage, indenture, bond, note, instrument or other obligation set forth on
      Schedule
      3.22
      (each a
“Contract”)
      where
      such default or breach would have a material adverse effect on the Target.
      The
      execution and delivery of this Agreement by the Target and the Selling
      Stockholders and the consummation of the transactions contemplated hereby do
      not
      and will not violate the articles of incorporation, bylaws or other governing
      documents of the Target, and, except where
      any
      such conflict, breach, default or violation would not have a material adverse
      effect on the Target, the execution and delivery of this Agreement by the Target
      and the Selling Stockholders and the consummation of the transactions
      contemplated hereby do not and will not (a) conflict with or result in any
      breach of (or create in any party the right to accelerate, terminate, modify
      or
      cancel) any terms, conditions or provisions of, or constitute a default under,
      or require the consent of any party to, or result in the imposition of any
      lien
      or encumbrance upon any asset or property of the Target pursuant to the terms
      and conditions of, any Contract to which the Target or any Selling Stockholder
      is now a party or by which any of them or any of their respective properties,
      assets or rights may be bound or affected, (b) violate any provision of any
      law,
      rule or regulation of any administrative agency or governmental body, or any
      order, writ, injunction or decree of any court, administrative agency,
      governmental body or arbitrator, or (c) require any filing with, or license,
      permit, consent or other governmental approval of, any federal, state or local
      governmental body or governmental agency (including, without limitation, the
      Securities and Exchange Commission, other than the filing of a From D and
      similar state securities laws filings.)

     

    3.6.    Compliance
      with Law.
      The
      Target is not in violation of any federal, state, local or foreign law,
      ordinance, regulation, judgment, decree, injunction or order of any court or
      other governmental entity. The Target has procured and are currently in
      possession of all licenses, permits and other governmental authorizations
      required by federal, state or local laws for the operation of the business
      of
      the Target in each jurisdiction in which the Target is currently conducting
      business, where the failure
      to possess such
      licenses, permits and authorizations would have a material adverse effect on
      the
      Target, and there is no basis for revoking any such license, permit or other
      authorization.
      Except
      as otherwise disclosed on Schedule
      3.6,
      such
      licenses are in full force and effect and there is no basis for any fines,
      penalties, or revocation of such licenses.

     

    3.7.    Financial
      Statements.

     

    (a)    The
      Target is currently having an accounting firm authorized to practice before
      the
      Securities and Exchange Commission conduct an audit of the balance sheet of
      the
      Target as of December 31, 2006, and the related statements of operations,
      shareholders’ equity and cash flows for the period from inception through
      December 31, 2006 (the “Target
      Audited Financial Statements”),
      and
      such audit shall be completed in sufficient time to have the Target
      Financial Statements to be filed as an exhibit to the amendment of the Current
      Report on Form 8-K described in Section 6.4 hereof. The Target Audited Financial
      Statements will be true and accurate, in accordance with the books and records
      of Target. Except as disclosed therein, the Target Financial Statements
      (i) will be in accordance with the books and records of the Target and will
      be prepared in conformity with generally accepted accounting principles
      (“GAAP”)
      consistently applied for all periods, and (ii) will fairly present the
      financial position of the Target as of the respective dates thereof, and the
      results of operations, and changes in shareholders’ equity and changes in cash
      flow for the periods then ended, all in accordance with GAAP consistently
      applied for all periods.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)    Except
      as
      set forth on the Target Audited Financial Statements, the Target has no debt,
      liability or obligations of any nature, whether accrued, absolute, contingent,
      or otherwise, whether due or to become due and whether or not the amount hereof
      is readily ascertainable, that will not be reflected as a liability in the
      Target Audited Financial Statements or except for liabilities incurred by the
      Target in the ordinary course of business, consistent with past practices which
      are not otherwise prohibited by, or in violation of, or which will not result
      in
      a breach of, the representations, warranties, and covenants of the Target
      contained in this Agreement. There will be no material loss contingencies (as
      such term is used in Statement of Financial Accounting Standards No. 5
      (“FAS
      No. 5”)
      issued
      by the Financial Accounting Standards Board (the “FASB”)
      which
      will not be adequately provided for in the Target Audited Financial Statements
      as required by FAS No. 5.

     

    3.8.    Absence
      of Undisclosed Liabilities.
      The
      Target does not have any material liabilities, obligations or claims of any
      kind
      whatsoever which are required to be set forth in financial statements prepared
      in accordance with GAAP, whether secured or unsecured, accrued or unaccrued,
      fixed or contingent, matured or unmatured, direct or indirect, contingent or
      otherwise and whether due or to become due (referred to herein individually
      as a
“Liability”
and
      collectively as “Liabilities”),
      other
      than (a) Liabilities that are reserved for or disclosed in the Target Audited
      Financial Statements, (b) Liabilities that are set forth on Schedule
      3.8,
      (c)
      Liabilities incurred by the Target in the ordinary course of business after
      the
      date of the Target Audited Financial Statements (none of which results from,
      arises out of, relates to, is in the nature of, or was caused by any breach
      of
      contract, breach of warranty, tort, infringement or violation of law), or (d)
      Liabilities for Contracts (other than any express executory obligations that
      might arise due to any default or other failure of performance by the Target
      prior to the Closing Date).

     

    3.9.    Absence
      of Material Adverse Changes.
      Since
      the date of the Target Audited Financial Statements, there
      has
      not been any (a) material adverse change in the business, operations,
      properties, condition (financial or otherwise) of the Target, (b) damage,
      destruction or loss, whether covered by insurance or not, materially and
      adversely affecting the business, properties or condition (financial or
      otherwise) of the Target, or (c) change by the Target in accounting methods
      or
      principles used for financial reporting purposes, except as required by a change
      in generally accepted accounting principles and concurred with by the Target’s
      independent certified public accountants.

     

    3.10.    Real
      Property.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (a)    Schedule
      3.10
      contains
      a list of all real property owned by or leased to the Target. Neither the Target
      nor any Selling Stockholder has received any notification that there is any
      violation of any law, ordinance or regulation with respect to such real property
      that would result in a material fine or penalty or the abatement of which would
      require a material capital expenditure.

     

    (b)    The
      Target has good and marketable title to all real property indicated on
Schedule
      3.10
      as owned
      by the Target, subject to (i) easements, servitudes and rights-of-way of record
      or in actual or apparent use, (ii) any state of facts that a visual inspection
      might reveal, (iii) rights of the public in any portion of the premises that
      may
      fall in any public street, way or alley, (iv) zoning laws, building laws and
      building restrictions of record, (v) liens for current
      taxes not yet due and payable or being contested in good faith by appropriate
      proceedings, (vi) liens imposed by law incurred in the ordinary course of
      business for obligations not yet due to carriers, warehousemen, laborers,
      materialmen and the like, (vii) liens or imperfections of title that do not
      materially detract or interfere with the present use or value of such real
      property, and (viii) mortgages, liens, encumbrances, claims or restrictions,
      if
      any, that do not materially detract from or interfere with the present use
      or
      value of such real property.

    

    (c)    There
      are
      no pending or threatened condemnation proceedings relating to any real property
      owned by or leased to the Target, or other matters affecting materially or
      adversely the current use, occupancy, or value of any such real
      property.

    

    (d)    There
      are
      no leases, subleases, licenses, material concessions, or other material
      agreements, written or oral granting to any party or parties the right of use
      or
      occupancy of any portion of any real property owned by the Target.

    

    (e)    There
      are
      no outstanding options or rights of first refusal to purchase any of the real
      property owned by the Target, or any portion thereof or interest
      therein.

    

    (f)    The
      leases relating to the real property leased by the Target or any of the
      Subsidiaries are valid and in full force and there does not exist any default
      thereunder that materially detracts from or interferes with the present use
      or
      value of such real property.

    

    3.11.    Tangible
      Personal Property.

     

    (a)    The
      Target has good and marketable title to all tangible personal property it
      purports to own as of the date of the Target Audited Financial Statements
      (except for personal property sold or otherwise disposed of since the date
      of
      the Target Audited Financial Statements in the ordinary course of business),
      free and clear of all mortgages, liens, encumbrances, claims or restrictions
      other than (i) liens for current taxes not due and payable or being contested
      in
      good faith by appropriate proceedings, (ii) liens imposed by law and incurred
      in
      the ordinary course of business for obligations not yet due to carriers,
      warehousemen, laborers, materialmen and the like, and (iii) mortgages, liens,
      encumbrances, claims or restrictions, if any, that do not materially detract
      from or interfere with the present use or value of such personal
      property.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b)    All
      leases relating to personal property are valid and in full force and there
      does
      not exist any default thereunder where such default would materially detract
      from or interfere with the present use or value of such personal
      property.

    

    3.12.    Intellectual
      Property Rights.
      Schedule
      3.12
      contains
      a list of all patents, trademarks, trade names, corporate names, service marks,
      computer software, customer lists, processes, know-how and trade secrets
      (collectively, the “Intellectual
      Property”)
      used
      in or necessary for the conduct of the business of the Target or any of the
      Subsidiaries as currently conducted. The Target owns, or is licensed to use,
      all
      of the Intellectual Property.
      No
      claim has been asserted or threatened by any person with respect to the use
      of
      such Intellectual Property or challenging or questioning the validity or
      effectiveness of any such license or agreement with respect thereto, and the
      use
      of such Intellectual Property by the Target does not infringe on the rights
      of
      any other person.

     

    3.13.    Taxes.

     

    (a)    The
      Target has filed all material returns, declarations, reports, claims for refund,
      or information returns or statements relating to any Federal, State, local,
      or
      foreign income, gross receipts, license, payroll, employment, excise, severance,
      stamp, occupation, premium, windfall profits, environmental, custom duties,
      capital stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, use,
      transfer, registration, value added, alternative or add-on minimum, estimated,
      or other tax of any kind whatsoever, including any interest, penalty or addition
      thereto whether disputed or not (individually, a “Tax”
and,
      collectively, “Taxes”),
      and
      further including any schedule or attachment thereto, and any amendment thereof,
      that the Target and the Subsidiaries were required to file under any Federal,
      State, local, or foreign laws (individually, a “Tax
      Return”
and,
      collectively, “Tax
      Returns”).
      All
      such Tax Returns were correct and complete in all material respects. All Taxes
      owed by the Target have been paid when due or adequate provision has been made
      therefore in the applicable financial statements. There are no security
      interests or liens on any of the assets or the stock or other securities of
      the
      Target that arose in connection with any failure (or alleged failure) to pay
      any
      Tax.

    

    (b)    The
      Target has withheld and paid all Taxes required by law to have been withheld
      and
      paid in connection with amounts paid or owing to any employee, commissioned
      agent, creditor, stockholder, or other third party.

    

    (c)    There
      is
      no dispute or claim concerning any Tax liability of, or attributable to, the
      Target (including, without limitation, any dispute or claim with respect to
      any
      jurisdiction in which the Target do not currently file Tax Returns) either
      (i)
      claimed or raised by any authority in writing, or (ii) as to which the Target
      or
      any Selling Stockholder has knowledge.

    

    (d)    The
      Target has not waived or extended any statute of limitations in respect of
      any
      assessment or collection of Taxes or any alleged, proposed or actual deficiency
      in Taxes or agreed to any extension of time with respect to the filing of any
      Tax Return. 

    

    (e)    The
      Target has not filed a consent under Section 341(f) of the Internal Revenue
      Code
      (the “Code”).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    (f)    The
      Target has not made any payments, or is obligated to make payments, and is
      not a
      party to any agreement that under certain circumstances could obligate it to
      make any payments that will not be deductible under Section 280G of the
      Code.

    

    (g)    The
      Target has no liability for the Taxes of any person or entity other than the
      Target (i) under Section 1.1502-6 of the Treasury Regulations (or any similar
      provision of State, local or foreign law), (ii) as a transferee or successor,
      (iii) by contract, or (iv) otherwise.

    

    3.14.    Litigation.
      Other
      than as set forth on Schedule
      3.14,
      there
      is no legal, administrative, arbitration or other proceeding, suit, claim or
      action of any nature or investigation, review or audit of any kind pending
      or
      threatened against or involving the Target or its assets or
      properties.

     

    3.15.    Employee
      Benefit Plans.

     

    (a)    The
      Target has complied in all material respects with all applicable laws relating
      to the employment of labor, including, without limitation, the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”),
      and
      those relating to wage, hours, collective bargaining, unemployment insurance,
      workers’ compensation, equal employment opportunity and the payment of
      withholding taxes, including income and social security taxes, and has withheld
      (and paid over
      to
      the appropriate authorities) all amounts required by law or agreement to be
      held
      from the wages or salaries of its employees.

    

    (b)    With
      respect to each employee welfare benefit plan of the Target or any of the
      Subsidiaries, as defined in Section 3(1) of ERISA (a “Welfare
      Plan”),
      and
      any deferred benefit plan of the Target, as defined in Section 3(2) of ERISA
      (a
“Pension
      Plan”),
      there
      are no actions, suits or investigations or claim pending or to the best of
      Seller’s knowledge, threatened with respect to the assets thereof, other than
      routine claims for benefits.

     

    (c)    The
      Target has made no contributions to or currently has any obligation to
      contribute to (or any other liability, including any potential liability) with
      respect to any Welfare or Pension Plan under which any employee was or may
      be
      entitled to any benefit that is a “Multiemployer Plan” as defined in Section
      4001 of ERISA or any “Multiemployer Plan” within the meaning of Section 3(37) of
      ERISA. In addition, there are no outstanding or authorized stock appreciation,
      phantom stock, profit participation or similar rights with respect to the
      Target.

    

    3.16.    Environmental
      and Safety Laws.

     

    (a)    The
      Target has complied with all Environmental Requirements (as defined below)
      and
      all health and safety laws, and no action, suit, proceeding, hearing,
      investigation, charge, complaint, claim, demand or notice has been filed or
      commenced against the Target alleging any failure to so comply, except in each
      case where the failure to comply would not have a material adverse effect on
      the
      Target. The Target has obtained and been in compliance with all of the terms
      and
      conditions of all permits, licenses and other authorizations that
      are
      required under, and has complied with all other limitations, restrictions,
      conditions, standards, prohibitions, requirements, obligations, schedules and
      timetables that are contained in, all Environmental Requirements and health
      and
      safety laws, except in each case where the failure to comply would not have
      a
      material adverse effect on the Target. 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)    The
      Target has no liability for, and have not handled or disposed of, any Hazardous
      Substance (as defined below), arranged for the disposal of any Hazardous
      Substance, exposed any employee or other individual to any Hazardous Substance,
      or owned or operated any property or facility in any manner that could form
      the
      basis for any present or future action, suit, proceeding, hearing,
      investigation, charge, complaint, claim or demand against the Target giving
      rise
      to any liability for damage to any site, location or body of water (surface
      or
      subsurface), for any illness of or personal injury to any employee or other
      individual, or for any reason under any Environmental Requirement or health
      and
      safety law,
      except where any such liability would not have a material adverse effect on
      the
      Company and the Subsidiaries, taken as a whole.

     

    (c)    None
      of
      the following exists at any real property or facility owned or operated by
      the
      Target: (i) underground storage tanks, (ii) asbestos-containing materials in
      any
      form or condition, (iii) materials or equipment containing polychlorinated
      biphenyls, or (iv) landfills, surface impoundments or disposal
      areas.

    

    (d)    “Environmental
      Requirements”
means
      all applicable statutes, regulations, rules, ordinances, codes, licenses,
      permits, orders, approvals, plans, authorizations, concessions, franchises
      and
      similar items, or all governmental agencies, departments, commissions, boards,
      bureaus or instrumentalities of the United States, states or political
      subdivisions thereof and all applicable judicial, administrative and regulatory
      decrees, judgments, and orders that are adopted and in effect as of the Closing
      and that relate to the protection of human health or the environment, including,
      without limitation, all requirements pertaining to reporting, licensing,
      permitting, investigation and remediation of emissions, discharges, releases
      or
      threatened releases of Hazardous Substances, chemical substances, pollutants,
      contaminants or hazardous or toxic substances, materials or wastes whether
      solid, liquid or gaseous in nature, into the air, surface water, groundwater
      or
      land, or relating to the manufacture, processing, distribution, use, treatment,
      storage, disposal, transport or handling of chemical substances, materials
      or
      wastes, whether solid, liquid or gaseous in nature.

    

    (e)    The
      term
“Hazardous
      Substances”
shall
      include without limitation: (i) those substances included within the definition
      of “Hazardous Substances,” “Hazardous Materials,” “Toxic Substances” or “Solid
      Waste” in CERCLA (42 U.S.C. sections 9601 et seq.), RCRA (42 U.S.C. sections
      6901 et seq.), the Hazardous Materials Transportation Action (49 U.S.C. Sections
      1801 et seq.) and the TSCA (15 U.S.C. sections 2601 et seq.) and the regulations
      promulgated thereunder; (ii) those substances listed in the United States
      Department of Transportation Table of Hazardous Materials (49 CFR 172.101 and
      amendments thereto); and (iii) such other substances, materials and wastes
      that,
      prior to or as of the Closing, are classified as hazardous or toxic under
      federal, state or local laws or regulations and that are regulated as such
      under
      such laws.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    3.17.    Accounts
      Receivable.
      All
      accounts receivable that are reflected on the Target Audited Financial
      Statements or that have arisen since the date of the Target Audited Financial
      Statements (except such accounts receivable as have been collected since the
      Target Audited Financial Statements) in excess of reserves for doubtful accounts
      are valid and enforceable claims and arise out of bona fide transactions in
      the
      ordinary course of business in conformity with the applicable purchase orders,
      agreements and specifications. Such accounts receivable are subject to no valid
      defenses or offsets,
      except such discounts as are customarily offered to customers in the ordinary
      course of business and routine customer complaints or warranty demands that
      are
      not material in nature. 

     

    3.18.    Inventory.
      All
      inventory of the Target, whether reflected on the Target Audited Financial
      Statements or otherwise, consists of a quality and quantity usable and salable
      in the ordinary course of business. The value of all items of obsolete inventory
      and of inventory of below standard quality has been written down to realizable
      market value, and the value at which such inventory is carried reflects the
      Target’s normal inventory valuation policy of stating its inventory at the lower
      of cost or market value, in each case in accordance with generally accepted
      accounting principles.

     

    3.19.    Brokers
      or Finders.
      The
      Target and the Selling Stockholders have engaged no broker, agent, finder or
      investment advisor in connection with the transactions contemplated by this
      Agreement, and no broker, agent or finder is entitled to any brokerage or
      finder’s fee or other commission in respect of this Agreement or the
      transactions contemplated hereby.

     

    3.20.    Employees. 

     

    (a)    No
      executive, key employee or group of employees has any plans to terminate
      employment with the Target. 

    

    (b)    The
      Target is not a party to or bound by any collective bargaining agreement. The
      Target has not experienced any strikes, grievances, claims of unfair labor
      practices or other collective bargaining disputes since the organization of
      the
      Target.

    

    (c)    Except
      as
      set forth on Schedule
      3.20,
      the
      Target is not a party to, and/or is bound by, any employment contract with
      any
      of its employees.

    

    3.21.    Insurance.
      The
      Target is insured under, or are the owners and beneficiaries under, as
      appropriate, the policies listed in Schedule
      3.21,
      copies
      of which policies of insurance have been provided to the Company.

     

    3.22.    Contracts
      and Commitments; No Default.

     

    (a)    Except
      as
      set forth in Schedule
      3.22,
      the
      Target:

    

    (i)    has
      no
      written or oral contract, commitment, agreement or arrangement with any person
      which (A) requires payments individually in excess of Fifteen Thousand
      Dollars ($15,000) annually or in excess of Fifty Thousand Dollars ($50,000)
      over
      its term
      (including without limitation periods covered by any option to extend or renew
      by either party) and (B) is not terminable on thirty (30) days’ or less
      notice without cost or other Liability;

    

    (ii)    does
      not
      pay any person or entity cash remuneration at the annual rate (including without
      limitation guaranteed bonuses) of more than Fifty Thousand ($50,000) for
      services rendered;

    

    (iii)    is
      not
      restricted by agreement from carrying on its businesses or any part thereof
      anywhere in the world or from competing in any line of business with any person
      or entity;

    

    (iv)    is
      not
      subject to any obligation or requirement to provide funds to or make any
      investment (in the form of a loan, capital contribution or otherwise) in any
      person or entity;

    

    (v)    is
      not
      party to any agreement, contract, commitment or loan to which any of its
      directors, officers or shareholders or any Affiliate (or former Affiliate)
      thereof is a party;

    

    (vi)    is
      not
      subject to any outstanding sales or purchase contracts, commitments or proposals
      which is anticipated to result in any loss upon completion or performance
      thereof;

    

    (vii)    is
      not
      party to any purchase or sale contract or agreement that calls for aggregate
      purchases or sales in excess over the course of such contract or agreement
      of
      Fifty Thousand Dollars ($50,000) or which continues for a period of more than
      twelve months (including without limitation periods covered by any option to
      renew or extend by either party) which is not terminable on sixty (60) days’ or
      less notice without cost or other Liability at or any time after the Closing;
      and

    

    (viii)    has
      no
      distributorship, dealer, manufacturer’s representative, franchise or similar
      sales contract relating to the payment of a commission.

     

    (b)    True
      and
      complete copies (or summaries, in the case of oral items) of all items disclosed
      pursuant to this Section
      3.22
      have
      been made available to the Company for review. Except as set forth in
Schedule
      3.22,
      all
      such items are valid and enforceable by and against the Target in accordance
      with their respective terms, the Target is not in breach, violation or default,
      however defined, in the performance of any of its obligations thereunder, and
      no
      facts and circumstances exist which, whether with the giving of due notice,
      lapse of time, or both, would constitute such a breach, violation or default
      thereunder or thereof; and to the best knowledge of the Target, no other parties
      thereto are in breach, violation or default, however defined, thereunder or
      thereof, and no facts or circumstances exist which, whether with the giving
      of
      due notice, lapse of time, or both, would constitute such a breach, violation
      or
      default thereunder or thereof.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    3.23.    Full
      Disclosure.
      No
      representations or warranties made by the Target and the Selling Stockholders
      in
      this Agreement, in any of the exhibits or schedules attached to this Agreement,
      or in the schedules attached hereto, or in any other statements furnished or
      to
      be furnished by the Target and the Selling Stockholders to the Company pursuant
      to this Agreement contains any untrue statement of a material fact or omits
      to
      state a material fact necessary to make any statement contained herein or
      therein not misleading. Copies of all documents heretofore or hereafter
      delivered or made available to the Company by the Target and the Selling
      Stockholders pursuant hereto were or will be complete and accurate records
      of
      such documents.

     

    4.    Representations,
      Warranties and Covenants of the Company.
      Except
      as set forth in any SEC Report (as defined in Section 4.7), the Company
      represents, warrants and covenants to Target and each of the Selling
      Stockholders as follows. 

     

    4.1.    Organization
      and Good Standing.
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the State of Delaware and has full corporate power and
      authority to enter into and perform its obligations under this Agreement.

     

    4.2.    Capitalization.
      The
      authorized capital stock of the Company on the date hereof consists of
      880,000,000 shares of Common Stock, of which 798,157,996 shares
      are issued and outstanding and 10,000,000 shares of Preferred Stock, of which
      5,000,000 shares have been designated as Series A Preferred, of which 5,000,000
      shares are issued and outstanding. All issued and outstanding shares of Common
      Stock immediately prior to the Closing are duly authorized, validly issued,
      fully paid and nonassessable. Pursuant to the Company’s 2007 Stock Incentive
      Plan and an additional registration statement filed with the Securities and
      Exchange Commission on Form S-8 on January 4, 2007, under the Securities Act
      of
      1933, as amended (the “Act”), there are collectively 70,000,000 shares of common
      stock which may be issued pursuant to a resolution of the Board of Directors
      authorizing such issuance for the purpose of the compensation of Directors,
      Officers and outside consultants of the Company. Except for the items set forth
      under this Section 4.2 or otherwise set forth in Schedule
      4.2,
      there
      are no outstanding options, warrants, rights, subscriptions, calls, contracts
      or
      other agreements to issue, purchase or acquire, or securities convertible into,
      shares of capital stock or other securities of any kind representing an
      ownership interest in the Company.

     

    4.3.    Authority
      Relative to this Agreement.
      The
      Company has all requisite corporate power and authority, to enter into and
      to
      carry out all of the terms of the Documents. All corporate action on the part
      of
      the Company necessary for the authorization, execution, delivery and performance
      of the Documents by the Company has been taken and no further authorization
      on
      the part of the Company is required to consummate the transactions provided
      for
      in the Documents, including, without limitation, the issuance of the Shares.
      When executed and delivered by the Company, the Documents shall constitute
      the
      valid and legally binding obligation of the Company, enforceable in accordance
      with their respective terms, except as limited by applicable bankruptcy,
      insolvency reorganization and moratorium laws and other laws affecting
      enforcement of creditor’s rights generally and by general principles of
      equity.

    

    4.4.    Issance
      of Shares.
       The
      Shares have been duly authorized and, upon issuance in accordance with the
      terms
      hereof, shall be (i) validly issued, fully paid and non assessable
      and (ii) free from all taxes, liens and charges with respect thereof. The
      issuance by the Company of the Shares is exempt from registration under the
      1933
      Act.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    4.5.    No
      Default or Legal Restrictions.
      The
      Company is not in violation of its articles of incorporation, bylaws or other
      governing documents. The Company is not in default under, or in breach of any
      term or provision of, any contract, agreement, lease, license, commitment,
      mortgage, indenture, bond, note, instrument or other obligation where such
      default or breach would have a material adverse effect on the Company, taken
      as
      a whole. The execution and delivery of the Documents by the Company and the
      consummation of the transactions contemplated hereby and thereby do not and
      will
      not violate the articles of incorporation, bylaws or other governing documents
      of the Company, and, except where any such conflict, breach, default or
      violation would not have a material adverse effect on the Company, taken as
      a
      whole, the execution and delivery of this and thereby by the Company and the
      consummation of the transactions contemplated hereby do not and will not (a)
      conflict with or result in any breach of (or create in any party the right
      to
      accelerate, terminate, modify or cancel) any terms, conditions or provisions
      of,
      or constitute a default under, or require the consent of any party to, or result
      in the imposition of any lien or encumbrance upon any asset or property of
      the
      Company pursuant to the terms and conditions of, any contract to which the
      Company is now a party or by which any of them or any of their respective
      properties, assets or rights may be bound or affected, (b) violate any provision
      of any law, rule or regulation of any administrative agency or governmental
      body, or any order, writ, injunction or decree of any court, administrative
      agency, governmental body or arbitrator, or (c) require any filing with, or
      license, permit, consent or other governmental approval of, any federal, state
      or local governmental body or governmental agency (including, without
      limitation, the Securities and Exchange Commission, other than the filing of
      a
      Form D and similar state securities laws filings).

    

    4.6.    Compliance
      with Law.
      The
      Company is not in violation of any federal, state, local or foreign law,
      ordinance, regulation, judgment, decree, injunction or order of any court or
      other governmental entity. The Company has procured and are currently in
      possession of all licenses, permits and other governmental authorizations
      required by federal, state or local laws for the operation of the business
      of
      the Company in each jurisdiction in which the Company is currently conducting
      business, where the failure to possess such licenses, permits and authorizations
      would have a material adverse effect on the Company, taken as a whole, and
      there
      is no basis for revoking any such license, permit or other authorization. Such
      licenses are in full force and effect and there is no basis for any fines,
      penalties, or revocation of such licenses.

     

    4.7.    SEC
      Reports.
      The
      Company has delivered to Target and the Selling Stockholders its Annual Reports
      on Form 10-KSB for the year ending December 31, 2005; its Quarterly Reports
      on
      Form 10-QSB for the periods ending March 31, 2006, June 30, 2006, and September
      30, 2006 and any amendments thereto (collectively, the “SEC
      Reports”).
      The
      information in the SEC Reports is true and correct in all material respects
      and
      does not contain any untrue statement of a material fact or omit to state a
      material fact necessary in order to make the statements therein, in light of
      the
      circumstances under which they were made, not misleading.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    4.8.    Absence
      of Material Adverse Changes.
      Since
      the date of the latest SEC Report, there has not been any (a) material adverse
      change in the business, operations, properties, condition (financial or
      otherwise) of the Company, (b) damage, destruction or loss, whether covered
      by
      insurance or not, materially and adversely affecting the business, properties
      or
      condition (financial or otherwise) of the Company, taken as a whole, or (c)
      change by the Company in accounting methods or principles used for financial
      reporting purposes, except as required by a change in generally accepted
      accounting principles and concurred with by the Company’s independent certified
      public accountants.

     

    4.9.    Litigation.
      There
      is no legal, administrative, arbitration or other proceeding, suit, claim or
      action of any nature or investigation, review or audit of any kind pending
      or
      threatened against or involving the Company or its assets or
      properties.

     

    4.10.    Contracts
      and Commitments; No Default.

     

    (a)    Except
      as
      set forth in Schedule
      4.10,
      the
      Company:

    

    (i)    has
      no
      written or oral contract, commitment, agreement or arrangement with any person
      which (A) requires payments individually in excess of Fifteen Thousand
      Dollars ($15,000) annually or in excess of Fifty Thousand Dollars ($50,000)
      over
      its term (including without limitation periods covered by any option to extend
      or renew by either party) and (B) is not terminable on thirty (30) days’ or
      less notice without cost or other liability;

    

    (ii)    does
      not
      pay any person or entity cash remuneration at the annual rate (including without
      limitation guaranteed bonuses) of more than Fifty Thousand ($50,000) for
      services rendered;

    

    (iii)    is
      not
      restricted by agreement from carrying on its businesses or any part thereof
      anywhere in the world or from competing in any line of business with any person
      or entity;

    

    (iv)    is
      not
      subject to any obligation or requirement to provide funds to or make any
      investment (in the form of a loan, capital contribution or otherwise) in any
      person or entity;

    

    (v)    is
      not
      party to any agreement, contract, commitment or loan to which any of its
      directors, officers or shareholders or any Affiliate (or former Affiliate)
      thereof is a party;

    

    (vi)    is
      not
      subject to any outstanding sales or purchase contracts, commitments or proposals
      which is anticipated to result in any loss upon completion or performance
      thereof;

    

    (vii)    is
      not
      party to any purchase or sale contract or agreement that calls for aggregate
      purchases or sales in excess over the course of such contract or agreement
      of
      Fifty Thousand Dollars ($50,000) or which continues for a period of more than
      twelve months (including
      without limitation periods covered by any option to renew or extend by either
      party) which is not terminable on sixty (60) days’ or less notice without cost
      or other Liability at or any time after the Closing; and

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (viii)    has
      no
      distributorship, dealer, manufacturer’s representative, franchise or similar
      sales contract relating to the payment of a commission.

    

    (b)    True
      and
      complete copies (or summaries, in the case of oral items) of all items disclosed
      pursuant to this Section
      4.10
      have
      been made available to the Target and the Selling Stockholders for review.
      Except as set forth in Schedule
      4.10,
      all
      such items are valid and enforceable by and against the Company in accordance
      with their respective terms, the Company is not in breach, violation or default,
      however defined, in the performance of any of its obligations thereunder, and
      no
      facts and circumstances exist which, whether with the giving of due notice,
      lapse of time, or both, would constitute such a breach, violation or default
      thereunder or thereof; and to the best knowledge of the Company, no other
      parties thereto are in breach, violation or default, however defined, thereunder
      or thereof, and no facts or circumstances exist which, whether with the giving
      of due notice, lapse of time, or both, would constitute such a breach, violation
      or default thereunder or thereof.

    

    4.11    Brokers
      or Finders.
      Except
      as set forth on Schedule
      4.11,
      the
      Company has not dealt with any broker or finder in connection with the
      transactions contemplated hereby. The Company has not incurred, nor shall it
      incur, directly or indirectly, any liability for any brokerage or finders’ fees,
      agent commissions or any similar charges in connection with this Agreement
      or
      any transaction contemplated hereby.

     

    4.12      
      Title.
      The
      Company has good and marketable title to all real property and good title to
      all
      personal property owned by them which is material to the business of the
      Company, free and clear of all liens, encumbrances and defects except such
      as do
      not materially affect the value of such property and do not interfere with
      the
      use made and proposed to be made of such property by the Company. Any real
      property and facilities held under lease by the Company are held by it under
      valid, subsisting and enforceable leases with such exceptions as are not
      material and do not interfere with the use made and proposed to be made of
      such
      property and buildings by the Company.

    

    4.13    Insurance.
      The
      Company is insured by insurers of recognized financial responsibility against
      such losses and risks and in such amounts as management of the Company believes
      to be prudent and customary in the businesses in which the Company is engaged.
      The Company has not been refused any insurance coverage sought or applied for
      and the Company has no reason to believe that it will not be able to renew
      its
      existing insurance coverage as and when such coverage expires or to obtain
      similar coverage from similar insurers as may be necessary to continue its
      business at a cost that would not materially and adversely affect the condition,
      financial or otherwise, or the earnings, business or operations of the Company.
      

    

    4.14    Regulatory
      Permits.
      The
      Company possesses all material certificates, authorizations and permits issued
      by the appropriate federal, state or foreign regulatory authorities necessary
      to
      conduct their respective businesses, and the Company has not received
      any notice of proceedings relating to the revocation or modification of any
      such
      certificate, authorization or permit.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    4.15    Internal
      Accounting Controls.
      The
      Company maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      generally accepted accounting principles and to maintain asset accountability,
      (iii) access to assets is permitted only in accordance with management's general
      specific or authorization and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences.

    

    4.16    Full
      Disclosure.
      No
      representations or warranties made by the Company in this Agreement, in any
      of
      the exhibits or schedules attached to this Agreement, or in the schedules
      attached hereto, or in any other statements furnished or to be furnished by
      the
      Company to the Target and the Selling Stockholders pursuant to this Agreement
      contains any untrue statement of a material fact or omits to state a material
      fact necessary to make any statement contained herein or therein not misleading.
      Copies of all documents heretofore or hereafter delivered or made available
      to
      the Target and the Selling Stockholders pursuant hereto were or will be complete
      and accurate records of such documents.

     

    5.    Conditions
      to Closing; Deliveries. All
      obligations of the parties under this Agreement are subject to the accuracy
      and
      truthfulness of all representations of the other parties, and the fulfillment
      prior to the Closing, of all conditions precedent and to performance of all
      convenants and agreements and completion of all deliveries contemplated herein,
      unless specifically waived in writing by the party entitled to performance
      or to
      demand fulfillment of the covenant or delivery of the documents.

    

    5.1    Company’s
      Deliveries at Closing.
      At the
      Closing, the following documents shall be delivered (or caused to be delivered)
      by the Company to the Target and each of the Selling Stockholders:

    

    (a)    Certificates
      representing such Selling Stockholder’s pro-rata share of the Initial
      Shares;

    

    (b)    A
      certificate of an officer of the Company, in a form and substance reasonably
      acceptable to the Target, dated as of the Closing Date, certifying that (i)
      all
      representations and warranties of the Company made herein are true and correct
      as of the Closing Date; and (ii) the Company has performed and complied in
      all
      material respects with all agreements, covenants, obligations and conditions
      required by this Agreement to be performed or complied with by the Company
      on or
      prior to the Closing;

     

    (c)    Certified
      resolutions of the Board of Directors of the Company authorizing the
      consummation of the transactions contemplated by this Agreement, including,
      without limitation, resolutions authorizing the issuance of the
      Shares;

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    (d)    A
      Form D
      pursuant to Regulation D promulgated under the Securities Act, the filing of
      which will be effected within fifteen (15) days of Closing.

     

    (e)    A
      form of
      Amendment (as defined in Section 6.1);

     

    (f)    Any
      notices of sales required to be filed with the applicable federal and state
      agencies, which will be filed within the applicable periods therefor;

     

    (g)    A
      certificate of good standing of the Company from the State of Delaware as of
      the
      most recent practicable date; and

     

    (h)    Such
      other documents and instruments as shall be reasonably necessary to effect
      the
      transactions contemplated hereby. 

     

    5.2.   Selling
      Stockholders’ and Target’s Deliveries at Closing.
      At the
      Closing, the Selling Stockholders shall deliver or cause to be delivered to
      the
      Company all of the following:

     

    (a)    Original
      certificates representing the Target Shares to be exchanged pursuant to this
      Agreement; 

     

    (b)    Stock
      assignments separate from certificate in the form and substance satisfactory
      to
      the Company and duly executed by each of the Selling Stockholders regarding
      the
      Target Shares;

     

    (c)    Original
      counterparts to an Assignment of Intellectual Property agreement among Target,
      Edwin Zhao and David Miedzygorski and the Company assigning all of the
      intellectual property set forth in Schedule 3.12 or otherwise held by Target
      or
      either of the Selling Stockholders in substantially the form attached hereto
      as
Exhibit
      B
      (the
“IP
      Assignment”)

     

    (d)    A
      certificate of an officer of the Target, in a form and substance reasonably
      acceptable to the Company, dated as of the Closing Date, certifying that (i)
      all
      representations and warranties of the Target made herein are true and correct
      as
      of the Closing Date; and (ii) the Target has performed and complied in all
      material respects with all agreements, covenants, obligations and conditions
      required by this Agreement to be performed or complied with by the Target on
      or
      prior to the Closing.

     

    (e)    A
      certificate of the Selling Stockholders, in a form and substance reasonably
      acceptable to the Company, dated as of the Closing Date, certifying that (i)
      all
      representations and warranties of the Selling Stockholders made herein are
      true
      and correct as of the Closing Date; and (ii) the Selling Stockholders have
      performed and complied in all material respects with all agreements, covenants,
      obligations and conditions required by this Agreement to be performed or
      complied with by the Selling Stockholders on or prior to the
      Closing.

     

    (f)    Certified
      resolutions of the Board of Directors and the Stockholders of Target authorizing
      the consummation of the transactions contemplated by this
      Agreement;

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (g)    A
      certificate of good standing of Target from the State of Delaware as of the
      most
      recent practicable date; and

     

    (h)    Such
      other documents and instruments as shall be reasonably necessary to effect
      the
      transactions contemplated hereby.

     

    6.    Covenants.

     

    6.1.    Amendment
      to Articles of Incorporation.
      As soon
      as is reasonably practicable following the Closing, the Company shall take
      such
      action as is necessary to obtain the Company’s stockholders’ approval of an
      amendment (the “Amendment”)
      to the
      Articles of Incorporation in the form attached hereto as Exhibit C changing
      the
      name of the Company to “World Health Energy, Inc.” The Company shall cause an
      information statement on Schedule 14C (an “Information
      Statement”)
      with
      respect to the Amendment to be filed with the Securities and Exchange Commission
      no later than February 5, 2007. One business day after expiration of the twenty
      calendar day period provided by Rule 14c-2(b) promulgated under the Securities
      Exchange Act occurs, the Company shall file the Amendment with the Secretary
      of
      State of Delaware.

     

    6.2.    Form
      8-K.
      The
      Company shall prepare a Current Report on Form 8-K regarding terms of the
      transaction contemplated by the Documents and the change in control contemplated
      herein and cause such Current Report to be filed with the Securities and
      Exchange Commission no later than four (4) business days following the Closing
      Date. 

     

    6.3.    Filings;
      Consents; Removal of Objections.
      Subject
      to the terms and conditions herein provided, the parties hereto will use their
      best efforts to take or cause to be taken all actions and do or cause to be
      done
      all things necessary, proper or advisable under applicable laws to consummate
      and make effective, as soon as reasonably practicable, the transactions
      contemplated hereby, including without limitation obtaining all consents of
      any
      person or entity, whether private or governmental, required in connection with
      the consummation of the transactions contemplated herein. In furtherance, and
      not in limitation of the foregoing, it is the intent of the parties to
      consummate the transactions contemplated herein at the earliest practicable
      time, and they respectively agree to exert their best efforts to that end,
      including without limitation: (i) the removal or satisfaction, if possible,
      of any objections to the validity or legality of the transactions contemplated
      herein; and (ii) the satisfaction of the conditions to consummation of the
      transactions contemplated hereby.

     

    6.4.    Further
      Assurances; Cooperation; Notification.

     

    (a)    Each
      party hereto will, at and after the Closing, execute and deliver such
      instruments and take such other actions as the other party or parties, as the
      case may be, may reasonably require in order to carry out the intent of this
      Agreement. Without limiting the generality of the foregoing, at any time after
      the Closing, at the request of the Company and without further consideration,
      the Target and the Selling Stockholders will execute and deliver such
      instruments of sale, transfer, conveyance, assignment and confirmation and
      take
      such action as the Company may reasonably deem necessary or desirable in order
      to more effectively transfer,
      convey and assign to the Company, and to confirm the Company’s title to, the
      Target Shares.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (b)    At
      all
      times from the date hereof until the Closing, each party will promptly notify
      the other in writing of the occurrence of any event which it reasonably believes
      will or may result in a failure by such party to satisfy the conditions and
      covenants specified in Articles 5 and 6 hereof.

     

    6.5.   Public
      Announcements.
      On or
      after the Closing Date, the Company and the Target shall issue a press release
      (the “Press
      Release”)
      in a
      form and substance acceptable to both parties disclosing the execution of this
      Agreement. Other than the Press Release, none of the parties hereto will make
      any public announcement with respect to the transactions contemplated herein
      without the prior consent of the other parties, which consent will not be
      unreasonably withheld or delayed; provided, however, that any of the parties
      hereto may at any time make any announcements which are required by applicable
      law so long as the party so required to make an announcement promptly upon
      learning of such requirement notifies the other parties of such requirement
      and
      discusses with the other parties in good faith the exact proposed wording of
      any
      such announcement. 

     

    6.6.   Tax
      Matters; Cooperation
      and Records Retention.
      The
      Target and the Company will (i) each provide the other with such assistance
      as
      may reasonably be requested by any of them in connection with the preparation
      of
      any Tax Return, audit or other examination by any taxing authority or judicial
      or administrative proceedings relating to liability for Taxes, (ii) each retain
      and provide the other with any records or other information which may be
      relevant to such Tax Return, audit or examination, proceeding or determination,
      and (iii) each provide the other with any final determination of such audit
      or
      examination, proceeding or determination that affects any amount required to
      be
      shown on any Tax Return of the other for any period. Without limiting the
      generality of the foregoing, the Target and the Company will retain, until
      the
      applicable statutes of limitations (including all extensions) have expired,
      copies of all Tax Returns, supporting work schedules and other records or
      information which may be relevant to such Tax Returns for all Tax periods or
      portions thereof ending on or before the Closing and will not destroy or
      otherwise dispose of any such records without first providing the other party
      with a reasonable opportunity to review and copy the same.

     

    7.    Survival
      and Indemnification.

     

    7.1.    Survival.
      The
      representations and warranties of each party hereto shall survive the execution
      of and delivery of this Agreement and the consummation of the transactions
      contemplated hereby and the same shall be effective for a period
      of
      one (1) year from the Closing Date and no longer. The covenants and agreements
      contained in this Agreement shall survive the execution and delivery of this
      Agreement and the consummation of the transactions contemplated hereby and
      the
      same shall be effective in accordance with their respective terms.

     

    7.2.    Mutual
      Indemnification.
      Subject
      to the limitations set forth in this Article 7, each party each agrees to
      indemnify and save harmless each other party from and against any and all
      losses, liabilities, expenses (including, without limitation, reasonable fees
      and disbursements
      of counsel), claims, liens, damages or other obligations whatsoever
      (collectively, “Claims”)
      that
      may actually and reasonably be payable by virtue of or which may actually and
      reasonably result from the inaccuracy of any of their respective representations
      or the breach of any of their respective warranties, covenants or agreements
      made in this Agreement or in any certificate, schedule or other instrument
      delivered pursuant to this Agreement; provided, however, that no claim for
      indemnity may be made hereunder if the facts giving rise to such Claim were
      in
      writing and known to the party seeking indemnification hereunder, such facts
      constituted a breach of the conditions to closing of the party seeking
      indemnification and the party seeking indemnification elected in any event
      to
      consummate the transactions contemplated by this Agreement. In addition, to
      the
      extent that applicable insurance coverage is available and paid to the party
      seeking indemnification hereunder with respect to the Claim for which
      indemnification is being sought, such amounts of insurance actually paid shall
      be deducted from the amount of the Claim for which indemnification may be sought
      hereunder and the indemnified party may recover only the amount of the loss
      actually suffered by the party to be indemnified. To the extent that such
      insurance payment is received subsequent to payment by the indemnifying party
      hereunder, the indemnified party shall reimburse the indemnifying party, up
      to
      the amount previously paid by the indemnifying party, for the amount of such
      insurance payment.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    7.3.    Procedures
      for Indemnification.
      Each
      party agrees to give each other party prompt written notice of any event or
      assertion of which it has knowledge concerning any such Claim and
      as to
      which it may request indemnification hereunder, and each party will cooperate
      with the other in determining the validity of any such Claim. The indemnifying
      party hereunder shall have the right to participate in, or control the defense
      of (with counsel reasonably satisfactory to the indemnified party), any such
      Claim for which indemnification has been requested hereunder. Each party agrees
      not to settle or compromise any such Claim without the prior written consent
      of
      each other party. The giving of notice to the indemnifying party as provided
      herein and the opportunity to participate or control the defense of the Claim
      for which indemnification is sought shall be a prerequisite to any obligation
      of
      the indemnifying party to indemnify the indemnified party hereunder. Following
      indemnification as provided hereunder, the indemnifying party shall be
      subrogated to all rights of the indemnified party against all other parties
      with
      respect to the Claim for which indemnification has been made.

     

    7.4.    Limitations
      on Indemnification.
      Notwithstanding the provisions of Section 7.2 hereof, no claim for
      indemnification by any party hereunder may be made unless the amount of the
      Claim for which indemnification is sought exceeds $25,000.
      The
      maximum aggregate liability of the Target and the Selling Stockholders to the
      Company for all claims arising under the Documents shall equal the product
      of
      (i) the number of Company Shares and (b) the average of the per share closing
      price of the Common Stock for the five-day period preceding the day on which
      the
      liability becomes payable. In no event will the aggregate amount payable by
      the
      Company pursuant to this Article 7 exceed $500,000.

     

    8.    Miscellaneous.

     

    8.1.    Cumulative
      Remedies.
      Any
      person having any rights under any provision of this Agreement will be entitled
      to enforce such rights specifically, to recover damages by reason
      of
      any breach of any provision of this Agreement, and to exercise all other rights
      granted by law, which rights may be exercised cumulatively and not
      alternatively.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    8.2.    Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, this Agreement and any of the rights,
      interests or obligations hereunder may not be assigned by any of the parties
      hereto. All covenants and agreements contained in this Agreement by or on behalf
      of any of the parties hereto will bind and inure to the benefit of the
      respective permitted successors and assigns of the parties hereto whether so
      expressed or not.

     

    8.3.    Severability.
      Whenever possible, each provision of this Agreement will be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement is held to be prohibited by or invalid under applicable law,
      such provision will be ineffective only to the extent of such prohibition or
      invalidity, without invalidating the remainder of this Agreement or the other
      documents.

     

    8.4.    Counterparts.
      This
      Agreement may be executed in two or more counterparts, any one of which need
      not
      contain the signatures of more than one party, but all such counterparts when
      taken together will constitute one and the same agreement.

     

    8.5.    Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      with
      respect to the subject matter thereof, and supersedes all prior and
      contemporaneous agreements and understandings.

     

    8.6    Notices.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement 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 business 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:	 
	 	 	 
	 	
              Advanced
                Plant Pharmaceuticals, Inc.

            	 
	 	
              43
                West 33rd
                Street

            	 
	 	
              New
                York, NY 10001

            	 
	 	
              Telephone:
                (212) 695-3334

            	 
	 	
              Facsimile:

            	 
	 	
              Attention:
                David Lieberman

            	 
	 	 	 
	With a copy to:	 	 
	 	 	 
	 	
              Spectrum
                Law Group LLP

            	 
	 	
              1900
                Main Street, Suite 125

            	 
	 	
              Irvine,
                California 92614

            	 
	 	
              Telephone:
                (949) 851-4300

            	 
	 	
              Facsimile:
                (949.851-5940

            	 
	 	
              Attention:
                Marc A. Indeglia, Esq.

            	 

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	
              If
                to the Target of the Selling Stockholders:

            	 
	 	 	 
	 	
              World
                Health Energy, Inc

            	 
	 	
              3430
                Sheridan Avenue

            	 
	 	
              Miami
                Beach, FL 33140

            	 
	 	
              Telephone:
                (305) 873-3414

            	 
	 	
              Facsimile:
                (604) 279-0416

            	 
	 	
              Attention:
                David Miedzygorski

            	 

    

     

    Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) 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 (C) 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.

    

    8.7.    Expenses
      and Attorney Fees.
      The
      Company, Target and the Selling Stockholders shall each pay all of their
      respective legal and due diligence expenses in connection with the transactions
      contemplated by this Agreement, including, without limiting the generality
      of
      the foregoing, legal and accounting fees.

     

    8.8.    Waiver
      of Conditions.
      At any
      time or times during the term hereof, the Company may waive fulfillment of
      any
      one or more of the conditions to its obligations in whole or in part, and Target
      or the Selling Stockholders may waive fulfillment of any one or more of the
      foregoing conditions to their obligation, in whole or in part, by delivering
      to
      the other party a written waiver or waivers of fulfillment thereof to the extent
      specified in such written waiver or waivers. Any such waiver shall be validly
      and sufficiently authorized for the purposes of this Agreement if, as to any
      party, it is authorized in writing by an authorized representative of such
      party. The failure of any party hereto to enforce at any time any provision
      of
      this Agreement shall not be construed to be a waiver of such provision, nor
      in
      any way to affect the validity of this Agreement or any part hereof or the
      right
      of any party thereafter to enforce each and every such provision. No waiver
      of
      any breach of this Agreement shall be held to constitute a waiver of any other
      or subsequent breach.

     

    8.9.    Law
      Governing.
      This
      Agreement shall be construed and interpreted in accordance with and governed
      and
      enforced in all respects by the laws of the State of Delaware.

     

    8.10.   Disputed
      Matters.
      Except
      as otherwise provided in this Agreement, each party hereby agrees that any
      suit,
      action or proceeding arising out of or relating to this Agreement shall be
      brought in either the United States District Court for the Central District
      of
      Delaware, and the parties hereby irrevocably and unconditionally submit to
      the
      jurisdiction of such courts. The parties hereby agree to waive trial by jury
      in
      any such suit, action or proceeding. The parties irrevocably waive and agree
      not
      to raise any objection any of them might
      now
      or hereafter have to the bringing of any such suit, action or proceeding in
      any
      such court including, without limitation, any objection that the place where
      such court is located is an inconvenient forum. Each party agrees that any
      judgment or order against that party in any such suit, action or proceeding
      brought in such a court shall be conclusive and binding upon that party and
      consents to any such judgment or order being recognized and enforced in the
      courts of its jurisdiction of incorporation or organization or any other courts,
      by registration or entry of such judgment or order, by a suit, action or
      proceeding upon such judgment or order, or any other means available for
      enforcement of judgments or orders.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    8.11.    Attorneys’
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and disbursements in addition to any other relief to which such
      party may be entitled.

     

    8.12.    Delivery
      by Fax.
      Delivery
      of an executed counterpart of the Agreement or any exhibit attached hereto
      by
      facsimile transmission shall be equally as effective as delivery of an executed
      hard copy of the same. Any party delivering an executed counterpart of this
      Agreement or any exhibit attached hereto by facsimile transmission shall also
      deliver an executed hard copy of the same, but the failure by such party to
      deliver such executed hard copy shall not affect the validity, enforceability
      or
      binding nature effect of this Agreement or such exhibit. 

     

    8.13.    Gender
      Neutral Pronouns.
      All
      pronouns and any variations thereof shall be deemed to refer to the masculine,
      feminine or neuter, singular or plural, as the identity of the referenced
      person, persons, entity or entities may require.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, each of the parties to this Agreement has executed or caused
      this Agreement to be executed as of the date first above written.

     

    
      	“COMPANY”	 	 	 
	 	 	 	 
	
              ADVANCED
                PLANT PHARMACEUTICALS, INC.,

              a
                Delaware corporation

            	 	 	 
	 	 	 	 
	By:
              /s/ David
              Lieberman	 	 	 
	
              
David
              Lieberman, President	 	 	
            
	 	 	 	 

    

     

     

    
      	“TARGET”	 	 	“SELLING
              STOCKHOLDERS”
	 	 	 	 
	
              WORLD HEALTH ENERGY, INC.,

              a Delaware corporation

            	 	 	Signatures Appear on Exhibit A
	 	 	 	 
	By:
              /s/ David Miedzygorski	 	 	 
	
              
David
              Miedzygorski, President 	 	 	
            
	 	 	 	 

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    SELLING
      STOCKHOLDERS

     

    
      	
              Signature
                of Selling

              Stockholder

            	
               

              Target
                Shares

              Owned

            	
               

               

              Initial
                

              Shares

            	
               

              Remaining

              Shares

            	
               

              Total

              Shares

            
	
               

               

              /s/
                David Miedzygorski

              
                

              

              David
                Miedzygorski

            	
               

               

              10

            	
               

               

              500,000

            	
               

               

              5,000,000

            	
               

               

              5,500,000

            
	
               

               

              /s/
                Edwin Zhao

              
                

              

              Edwin
                Zhao

            	
               

               

              90

            	
               

               

              4,500,000

            	
               

               

              45,000,000

            	
               

               

              49,500,000

            

    

     

    
      
        
        

      

      
        26

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