Document:

AGREEMENT

    

    THIS
      AGREEMENT (this “Agreement”)
      is
      made and entered into on March 31, 2008, by and among POWERSAFE TECHNOLOGY
      CORP., a Delaware corporation (“Parent”),
      POWERSAFE ACQUISITION CORP., a Delaware corporation (“Acquisition
      Corp.”),
      which
      is a wholly-owned subsidiary of Parent, and AMPLIFICATION TECHNOLOGIES, INC.,
      a
      Delaware corporation (the “Company”).

    

    WITNESSETH:

    

    WHEREAS,
      the Board of Directors of each of Acquisition Corp., Parent and the Company
      have
      determined that it is fair and in the best interests of their respective
      stockholders for Acquisition Corp. to be merged with and into the Company (the
      “Merger”)
      upon
      the terms and subject to the conditions set forth herein;

    

    WHEREAS,
      the Board of Directors of each of Parent, Acquisition Corp. and the Company
      have
      approved the Merger in accordance with the General Corporation Law of the State
      of Delaware (the “DGCL”)
      and
      upon the terms and subject to the conditions set forth herein and in the
      Certificate of Merger attached as Exhibit
      A
      hereto
      (the “Certificate
      of Merger”);

    

    WHEREAS,
      the requisite stockholders of the Company (the “Stockholders”)
      have
      approved by written consent pursuant to Section 228(a) of the DGCL this
      Agreement, the Certificate of Merger and the transactions contemplated and
      described hereby and thereby, including, without limitation, the Merger, and
      Parent, as the sole stockholder of Acquisition Corp., has approved by written
      consent pursuant to Section 228(a) of the DGCL this Agreement, the Certificate
      of Merger and the transactions contemplated and described hereby and thereby,
      including, without limitation, the Merger;

    

    WHEREAS,
      pursuant to the terms and conditions of this Agreement, all of the issued and
      outstanding common stock of the Company immediately prior to the Effective
      Time
      (as hereinafter defined), other than the common stock held by stockholders
      who
      are entitled to demand and properly demand an appraisal of their shares
      (“Dissenting
      Stockholders”),
      shall
      exchange the shares owned by them in accordance with the provisions contained
      herein for newly issued restricted shares of common stock of Parent (the
“Exchange
      Shares”);
      

     

    WHEREAS,
      the parties hereto intend that the Merger contemplated herein shall qualify
      as a
      reorganization within the meaning of Section 368(a)(1)(A) of the Internal
      Revenue Code of 1986, as amended (the “Code”),
      by
      reason of Section 368(a)(2)(E) of the Code.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE, in consideration of the covenants, promises and representations
      set
      forth herein, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, and intending to be legally bound
      hereby, the parties agree as follows: 

    ARTICLE
      I

    DEFINITIONS

    

    Section
      1.1 Certain
      Definitions.
      As used
      in this Agreement and the schedules hereto, the following terms have the
      respective meanings set forth below. 

    

    (a)
      “Action”
means
      any administrative, regulatory, judicial or other proceeding by or before any
      Governmental Authority or arbitrator. 

    

    (b)
      “Affiliate”
means,
      with respect to any Person, any other Person that, directly or indirectly,
      through one or more intermediaries, controls, is controlled by, or is under
      common control with, such Person. The term “control” means the possession,
      directly or indirectly, of the power to direct or cause the direction of the
      management and policies of a Person, whether through the ownership of voting
      securities, by contract or otherwise, including the ability to elect the members
      of the board of directors or other governing body of a Person, and the terms
      “controlled” and “controlling” have correlative meanings.

    

    (c)
      “Business
      Day”
means
      a
      day on which banks are open for business in New York, New York. 

    

    (d)
      “Claims”
means
      any and all claims, demands or causes of action, relating to or resulting from
      an Action. 

    

    (e)
      “Contract”
means
      any contract, agreement, indenture, deed of trust, license, note, bond,
      mortgage, lease, guarantee and any similar understanding or arrangement, whether
      written or oral. 

    

    (f)
      “Employees”
means
      individuals who provide employment or employment-type services to Parent as
      of
      the date hereof, other than any such individuals who cease such employment
      prior
      to the Closing, but including any such individuals hired after the date hereof
      and prior to the Closing. 

    

    (g)
      “Employee
      Benefit Plan”
means
      any employee benefit plan, program, policy, practices, or other arrangement
      providing benefits to any current or former employee, officer or director of
      Parent or any beneficiary or dependent thereof that is sponsored or maintained
      by Parent or contribute or are obligated to contribute, whether or not written,
      including without limitation any employee welfare benefit plan within the
      meaning of Section 3(1) of ERISA, any employee pension benefit plan within
      the
      meaning of Section 3(2) of ERISA (whether or not such plan is subject to ERISA)
      and any bonus, incentive, deferred compensation, vacation, stock purchase,
      stock
      option, severance, employment, change of control or fringe benefit plan, program
      or policy. 

    

    (h)
      “Employment
      Agreement”
means
      a
      written Contract or offer letter with or addressed to any Employee or Former
      Employee pursuant to which Parent shall, directly or indirectly, have any actual
      or contingent liability or obligation to provide compensation and/or benefits
      on
      or after the Closing Date in consideration for past, present or future services.
      

    

    
      
        
        

      

      
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    (i)
      “Encumbrances”
means
      security interests, liens, Claims, charges, title defects, deficiencies or
      exceptions (including, with respect to Real Property, defects, deficiencies
      or
      exceptions in, or relating to, marketability of title, or leases, subleases
      or
      the like affecting title), mortgages, pledges, easements, encroachments,
      restrictions on use, rights of-way, rights of first refusal, conditional sales
      or other title retention agreements, covenants, conditions or other similar
      restrictions (including restrictions on transfer) or other encumbrances of
      any
      nature whatsoever. 

    

    (j)
      “Environmental
      Laws”
means
      all Laws relating to pollution or protection of human health and safety or
      the
      environment (including ambient air, surface water, groundwater, land surface,
      natural resources or subsurface strata), including all such Laws relating to
      Releases or threatened Releases of Regulated Substances into the environment
      or
      work place, or otherwise relating to the environmental or worker health and
      safety aspects of manufacturing, processing, distribution, importation, use,
      treatment, storage, disposal, transport or handling of Regulated Substances,
      including, but not limited to, chemical inventories in all relevant
      jurisdictions, and all such Laws relating to the registration of products of
      Parent under the Federal Insecticide, Fungicide and Rodenticide Act, the Food
      Drug and Cosmetic Act, the Toxic Substances Control Act, the European List
      of
      Notified Chemical Substances, the European Inventory of Existing Commercial
      Chemical Substances or similar Laws. 

    

    (k)
      “Environmental
      Permit”
means
      any permit, registration, approval, identification number, license or other
      authorization or filing required under or issued pursuant to any applicable
      Environmental Law. 

    

    (l)
      “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended. 

    

    (m)
      “ERISA
      Affiliate”
means
      any entity which would be aggregated with Parent under Section 414 of the Code
      or Section 4001(b) of ERISA. 

    

    (n)
      “Former
      Employee”
means
      individuals who, prior to the Closing, provided employment or employment-type
      services to Parent. 

    

    (o)
      “GAAP”
means
      United States generally accepted accounting principles. 

    

    (p)
      “Governmental
      Authority”
means
      any supranational, national, federal, state or local government, foreign or
      domestic, or the government of any political subdivision of any of the
      foregoing, or any entity, authority, agency, ministry or other similar body
      exercising executive, legislative, judicial, regulatory or administrative
      authority or functions of or pertaining to government, including any authority
      or other quasi-governmental entity established by a Governmental Authority
      to
      perform any of such functions. 

    

    
      
        
        

      

      
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    (q)
      “Indebtedness”
of
      any
      Person means, without duplication, (i) all obligations of such Person for money
      borrowed; (ii) all obligations of such Person evidenced by notes, debentures,
      bonds or other similar instruments for the payment of which such Person is
      responsible or liable; (iii) all obligations of such Person issued or assumed
      for deferred purchase price payments associated with acquisitions, divestments
      or other transactions; (iv) all obligations of such Person under leases required
      to be capitalized in accordance with GAAP, as consistently applied by such
      Person, (v) all obligations of such Person for the reimbursement of any obligor
      on any letter of credit, banker's acceptance, guarantees or similar credit
      transaction, excluding in all cases in clauses (i) through (v) current accounts
      payable, trade payables and accrued liabilities incurred in the ordinary course
      of business. 

    

    (r)
      “IRS”
means
      the Internal Revenue Service of the United States of America. 

    

    (s)
      “Laws”
means
      all United States federal, state or local or foreign laws, constitutions,
      statutes, codes, rules, regulations, ordinances, executive orders, decrees
      or
      edicts by a Governmental Authority having the force of law. 

    

    (t)
      “Leased
      Real Property”
means
      any real property leased or subleased to the Parent and set forth (and
      designated as leased) in Schedule
      4.08.
      

    

    (u)
      “Liabilities”
means
      any and all debts, liabilities, commitments and obligations, whether or not
      fixed, contingent or absolute, matured or unmatured, direct or indirect,
      liquidated or unliquidated, accrued or unaccrued, known or unknown, whether
      or
      not required by GAAP to be reflected in financial statements or disclosed in
      the
      notes thereto. 

    

    (v)
      “Material
      Adverse Effect”
means,
      with respect to a Person, any change, effect, event, occurrence or state of
      facts which would reasonably be expected to be materially adverse to the
      business, operations or financial condition of such Person, and its
      Subsidiaries, taken as a whole, or on the ability of such Person to consummate
      the transactions contemplated by this Agreement, other than any change, effect,
      event, occurrence or state of facts (1) that is generally applicable in the
      economy of the United States, (2) that is generally applicable in the United
      States securities markets, (3) generally affecting the industry in which the
      Company operates, (4) arising from or related to an act of international
      terrorism, or (5) relating to the announcement or disclosure of this Agreement
      and the transactions contemplated hereby. 

    

    (w)
      “Person”
means
      an individual, partnership, corporation, limited liability company, joint stock
      company, unincorporated organization or association, trust, joint venture or
      Governmental Authority. 

    

    (x)
      “Regulated
      Substances”
means
      any substance which is listed, defined or regulated as a pollutant, contaminant,
      hazardous, dangerous or toxic substance, material or waste, or is otherwise
      classified as hazardous, dangerous or toxic in or pursuant to any Environmental
      Law or which is or contains any explosives, radon, radioactive materials,
      asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
      petroleum and petroleum products (including waste petroleum and petroleum
      products) as regulated under any applicable Environmental Law. 

    

    
      
        
        

      

      
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    (y)
      “Release”
means
      any release, spill, emission, discharge, leaking, pumping, injection, deposit,
      disposal, dispersal, leaching or migration into the indoor or outdoor
      environment (including ambient air, surface water, groundwater and surface
      or
      subsurface strata) or into or out of any property, including the movement of
      Regulated Substances through or in the air, soil, surface water, groundwater
      or
      property. 

    

    (z)
      “Required
      Consents”
means,
      collectively, (1) each consent or novation with respect to any Contract to
      which
      the Parent, Acquisition Corp. or Company is a party or by which any of its
      assets are bound required to be obtained from the other parties thereto by
      virtue of the execution and delivery of this Agreement or the consummation
      of
      the transactions contemplated hereby in order to avoid the invalidity of the
      transfer of such Contract, the termination or acceleration thereof, giving
      rise
      to any obligation to make a payment thereunder or to any increased, additional
      or guaranteed rights of any person thereunder, a breach or default thereunder
      or
      any other change or modification to the terms thereof, and (2) each
      registration, filing, application, notice, transfer, consent, approval, order,
      qualification and waiver required from any third party or Governmental Authority
      by virtue of the execution and delivery of this Agreement or the consummation
      of
      the transactions contemplated hereby. 

     

    (aa)
      “SEC”
means
      the Securities and Exchange Commission.

    

    
      	 	
              (bb)

            	
              “Securities
                Act”
                means the Securities Act of 1933, as amended.

            

    

    

    (cc) “Subsidiaries”
of
      any
      entity means, at any date, any Person (a) the accounts of which would be
      consolidated with those of the applicable entity in such entity's consolidated
      financial statements if such financial statements were prepared in accordance
      with GAAP as of such date, or (b) of which securities or other ownership
      interests representing more than 50% of the equity or more than 50% of the
      ordinary voting power or, in the case of a partnership, more than 50% of the
      general partnership interests or more than 50% of the profits or losses of
      which
      are, as of such date, owned, controlled or held by the applicable entity or
      one
      or more subsidiaries of such entity. 

    

    (dd)
      “Tax”
means
      any federal, state, local or foreign taxes, including but not limited to any
      income, gross receipts, payroll, employment, excise, severance, stamp, business,
      premium, windfall profits, environmental (including taxes under section 59A
      of
      the Code), capital stock, franchise, profits, withholding, social security
      (or
      similar), unemployment, disability, real property, personal property, sales,
      use, service, service use, lease, lease use, transfer, registration, value
      added
      tax, or similar tax, any alternative or add-on minimum tax, and any estimated
      tax, in each case, including any interest, penalty, or addition thereto, whether
      disputed or not. 

    

    (ee)
      “Tax
      Benefit”
means
      the Tax effect of any item of loss, deduction or credit or any other item
      (including increases in Tax basis) which decreases Taxes paid or required to
      be
      paid, including any interest with respect thereto or interest that would have
      been payable but for such item. 

    

    (ff)
      “Tax
      Returns”
means
      all returns, declarations, reports, estimates, information returns and
      statements required to be filed in respect of Taxes. 

    

    
      
        
        

      

      
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    (gg)
      “Taxing
      Authority”
means
      any Governmental Authority having jurisdiction over the assessment,
      determination, collection or other imposition of Taxes. 

     

    Section
      1.2 References and Title. All references in this Agreement to articles,
      sections, subsections and other subdivisions refer to the articles, sections,
      subsections and other subdivisions of this Agreement unless expressly provided
      otherwise. Titles appearing at the beginning of any section or subdivision
      are
      for convenience only and do not constitute any part of such subdivisions and
      shall be disregarded in construing the language contained in such subdivisions.
      The words “this Agreement,” “this instrument,” “herein,” “hereof,” “hereby,”
“hereunder” and words of similar import refer to this Agreement as a whole and
      not to any particular subdivision unless expressly so limited. The phrases
“this
      Section” and “this subsection” and similar phrases refer only to the sections or
      subsections hereof in which such phrases occur. Pronouns in masculine, feminine
      and neutral genders shall be construed to include any other gender, and words
      in
      the singular form shall be construed to include the plural and vice versa,
      unless the context otherwise requires. 

    

    ARTICLE
      II

    THE
      MERGER

    

    Section
      2.1 Merger.
      Subject
      to the terms and conditions of this Agreement and the Certificate of Merger,
      Acquisition Corp. shall be merged with and into the Company in accordance with
      Section 252 of the DGCL. At the Effective Time (as defined below), the separate
      legal existence of Acquisition Corp. shall cease, and the Company shall be
      the
      surviving corporation in the Merger (sometimes hereinafter referred to as the
      “Surviving
      Corporation”)
      and
      shall continue its corporate existence under the laws of the State of Delaware
      under the name “Amplification Technologies, Inc.” At and after the Effective
      Time, the Company shall become a wholly-owned subsidiary of Parent.

    

    Section
      2.2 Effective
      Time.
      The
      Merger shall become effective upon the filing of the Certificate of Merger
      with
      the Secretary of State of the State of Delaware in accordance with Section
      252
      of the DGCL. The time at which the Merger shall become effective as aforesaid
      is
      referred to hereinafter as the “Effective
      Time”.
      The
      Effective Time shall not occur until and unless the Current Report on Form
      8-K
      required as a result of the Closing is completed and ready to be filed with
      the
      SEC.

    

    Section
      2.3 Closing. The
      closing of the Merger (the “Closing”)
      shall
      occur with the filing of the Certificate of Merger (the “Closing
      Date”).
      The
      Closing shall occur at the offices of David Lubin & Associates, PLLC at the
      address referred to in Section 10.1 hereof. At the Closing, all of the
      documents, certificates, agreements, opinions and instruments referenced in
      this
      Article II will be executed and delivered as described therein. At the Effective
      Time, all actions to be taken at Closing shall be deemed to be taken
      simultaneously.

    

    
      
        
        

      

      
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    Section
      2.4 Deliveries.
      At or
      prior to the Closing: (a) the Company shall deliver to Parent financial
      statements as required under the rules of the SEC for purposes of inclusion
      in
      Parent’s filing of a Current Report on Form 8-K disclosing the Merger; and such
      other documents as may be required under applicable law or requested by Parent,
      including without limitation, any Company Required Consents and (b) Parent
      will
      deliver to the Company any documents as may be required under applicable law
      or
      requested by the Company, including without limitation, any Parent Required
      Consents.

    

    Section
      2.5 Deliveries
      after Closing.
      Promptly after the Closing, representatives of the Parent and the Company shall
      coordinate the exchange of certificates evidencing all the shares of common
      stock of the Company (the “Company’s
      Common Stock”)
      beneficially owned by the Stockholders of
      the
      Company, duly endorsed in blank or accompanied by stock powers duly executed
      in
      blank, in proper form for transfer to Acquisition Corp. or an affidavit and
      indemnification in form reasonably acceptable to counsel for Parent stating
      that
      such Stockholder has lost its certificate or certificates or that such have
      been
      destroyed. The Exchange Shares issued upon the surrender of the Company’s Common
      Stock in accordance with the terms hereof shall be deemed to have been issued
      in
      full satisfaction of all rights of each of the respective Stockholders
      pertaining to their rights in and to their respective shares of the Company’s
      Common Stock. 

    

    Section
      2.6 Dissenters’
      Rights. Any
      Dissenting Stockholder shall not be entitled to receive Exchange Shares, as
      applicable, with respect to the shares of common stock owned by such Dissenting
      Stockholder unless and until such Dissenting Stockholder shall have failed
      to
      perfect or shall effectively withdrawn or lost such holder’s right to dissent
      from the Merger under the DGCL. Each Dissenting Stockholder shall be entitled
      to
      receive only the payment provided by Section 262 of the DGCL with respect to
      the
      shares of common stock owned by such Dissenting Stockholder and as to which
      dissenters’ rights have been properly perfected. The Company shall give Parent
      notice of any written demands for appraisal, attempted withdrawals of such
      demands, and any other instruments served pursuant to applicable Law received
      by
      the Company relating to stockholders’ rights of appraisal. 

    

    Section
      2.7 Restrictive
      Legends. Certificates
      evidencing the Exchange Shares pursuant to this Agreement may bear one or more
      of the following legends, including without limitation, any legend required
      by
      the laws of any jurisdiction in which a holder of Exchange Shares resides,
      and
      any legend required by applicable law, including without limitation, any legend
      that will be useful to aid compliance with Regulation D or other regulations
      adopted by the SEC under the Securities Act:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENSE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
      UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED OR UNLESS TRANSFERRED PURSUANT TO A VALID EXEMPTION
      FROM REGISTRATION AVAILABLE UNDER SUCH ACT.”

    

    “THESE
      SECURITIES ARE SUBJECT TO A LOCK-UP ARRANGEMENT BETWEEN THE COMPANY AND THE
      HOLDER THEREOF.”

    

    
      
        
        

      

      
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    Section
      2.7 Certificate
      of Incorporation, Bylaws, Directors and Officers..

    

    (a) The
      Certificate of Incorporation of the Company, as in effect immediately prior
      to
      the Effective Time, attached as Exhibit
      B
      hereto,
      shall be the Certificate of Incorporation of the Surviving Corporation from
      and
      after the Effective Time until amended in accordance with applicable law and
      such Certificate of Incorporation.

    

    (b) The
      Bylaws of the Company, as in effect immediately prior to the Effective Time,
      attached as Exhibit
      C
      hereto,
      shall be the Bylaws of the Surviving Corporation from and after the Effective
      Time until amended in accordance with applicable law, the Certificate of
      Incorporation of the Surviving Corporation and such Bylaws.

    

    Section
      2.8 Assets
      and Liabilities. At
      the
      Effective Time, the Surviving Corporation shall possess all the rights,
      privileges, powers and franchises of a public as well as of a private nature,
      and be subject to all the restrictions, disabilities and duties of each of
      Acquisition Corp. and the Company (collectively, the “Constituent
      Corporations”);
      and
      all the rights, privileges, powers and franchises of each of the Constituent
      Corporations on whatever account, as well as all other things in action
      belonging to each of the Constituent Corporations, shall be vested in the
      Surviving Corporation; and all property, rights, privileges, powers and
      franchises, and all and every other interest shall be thereafter as effectively
      the property of the Surviving Corporation as they were of the several and
      respective Constituent Corporations, and the title to any real estate vested
      by
      deed or otherwise in either of such Constituent Corporations shall not revert
      or
      be in any way impaired by the Merger; but all rights of creditors and all liens
      upon any property of any of the Constituent Corporations shall be preserved
      unimpaired, and all debts, liabilities and duties of the Constituent
      Corporations shall thenceforth attach to the Surviving Corporation, and may
      be
      enforced against it to the same extent as if said debts, liabilities and duties
      had been incurred or contracted by it.

    

    Section
      2.9 Operation
      of Surviving Corporation.
       The
      Company acknowledges that upon effectiveness of the Merger, and the material
      compliance by Parent and Acquisition Corp. with their respective duties and
      obligations hereunder, the Surviving Corporation shall become a wholly-owned
      subsidiary of Parent.

    

    Section
      2.10 Further
      Assurances. From
      time
      to time, from and after the Effective Time, as and when reasonably requested
      by
      Parent, the proper officers and directors of the Company as of the Effective
      Time shall, for and on behalf and in the name of the Company or otherwise,
      execute and deliver all such deeds, bills of sale, assignments and other
      instruments and shall take or cause to be taken such further actions as Parent,
      Acquisition Corp. or their respective successors or assigns reasonably may
      deem
      necessary or desirable in order to confirm or record or otherwise transfer
      to
      the Surviving Corporation title to and possession of all of the properties,
      rights, privileges, powers, franchises and immunities of the Company or
      otherwise to carry out fully the provisions and purposes of this Agreement,
      the
      Certificate of Merger and the Articles of Merger.

    

    
      
        
        

      

      
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    Section
      2.11 Tax
      Consequences. It
      is
      intended by the parties hereto that the transactions contemplated by this
      Agreement shall constitute a tax-free reorganization within the meaning of
      Section 368 of the Code. The parties hereto adopt this Agreement as a “plan of
      reorganization” within the meaning of Sections 1.368-2(g) and 1.338-3(a) of the
      regulations promulgated under the Code.

    

    ARTICLE
      III

    THE
      EXCHANGE SHARES

    

    Section
      3.1 Investment
      Amount.
       As
      of the
      date of this Agreement, the shareholders of the Company have invested an
      aggregate of $2,000,000 (the “Investment Amount”) to obtain control of Parent,
      recapitalize the Company and merge the Company with Acquisition Corp. as
      contemplated herein. The Investment Amount not used to purchase control of
      the
      Parent and pay for transaction expenses , after setting aside appropriate
      reserves, shall be utilized by Parent to purchase newly created and issued
      shares of Series C Preferred Stock of the Company which will be contributed
      by
      Parent to Acquisition Corp; said preferred stock shall be senior to all other
      securities of the Company and shall prohibit the Company from incurring any
      indebtedness. Said Series C Preferred shall be retired at the Closing.

    

    Section
      3.2 Amount
      of Exchange Shares.
      The
      aggregate amount of Exchange Shares to be issued to the Stockholders upon
      Closing, and to be reserved for shares of the Company to be issued pursuant
      to
      its capital structure obligations as of the date hereof , shall be $10,000,000
      minus the Preferred Stock Adjustment, divided by the Parent Per Share Value.
      The
      outstanding non-voting common stock of the Company shall be treated as 0.9
      share
of the common stock of the Company.

    

    The
      Preferred Stock Adjustment shall be the amount of (a) the liquidation preference
      of the Series B Preferred Stock of the Company issued and outstanding as of
      January 15, 2008 (the “Valuation Date”) less (b) the actual exercise price of
      options of the Company exercised from the Valuation Date through the date of
      this Agreement and less (c) the exercise price of any options which expire
      within the one year anniversary of the date of this Agreement. 

    

    The
      number of shares to be reserved for shares of the Company to be issued does
      not
      include any shares to be issued in lieu of payments under registration rights
      agreements to which the Company is subject to which have accrued subsequent
      to
      the Valuation Date. 

    

    The
      Parent Per Share Value shall be determined by multiplying the Investment Amount
      by 1.0525 and dividing said product by 7,075,000 (the number of issued and
      outstanding shares of Parent). 

    

    Section
      3.3 Shares
      Post-Closing. Upon
      the
      Effective Time, all outstanding options of the Company shall become obligations
      of Parent. All outstanding preferred stock of the Company shall be exchanged
      for
      preferred stock of parent with like terms.

    

    Section
      3.4 Lockup.
      Half of
      the Exchange Shares issued to shareholders of the Company shall be
      non-transferable (with certain limited exceptions) until December 1, 2008 and
      the other half until January 15, 2009.

    

    
      
        
        

      

      
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    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF PARENT

    

    As
      an
      inducement to the Company and the Stockholders to enter into this Agreement
      and
      to consummate the transactions contemplated herein, Parent represents and
      warrants, as of the date of this Agreement and as of the Closing Date, unless
      stated otherwise below, to the Company and Stockholders as follows:

    

    Section
      4.1 Organization.
      Parent
      is a corporation duly organized, validly existing, and in good standing under
      the laws of the State of Delaware. Parent has all requisite power to own,
      operate and lease its business and assets and carry on its business as the
      same
      is now being conducted. 

     

    Section
      4.2 Capital
      Structure.
      As of
      the Closing, Parent’s authorized capital will consist of (a) 100,000,000 shares
      of common stock, $.0001 no par value per share, authorized, of which 7,075,000
      shares are issued and outstanding, 6,000,000 of which are freely tradable
      without any restrictions or Encumbrances and 1,075,000 of which are restricted
      under the Securities Act, (i) with each holder thereof being entitled to cast
      one vote for each share held on all matters properly submitted to the
      shareholders for their vote; and (ii) there being no pre-preemptive rights
      and
      no cumulative voting; and (b) no shares of preferred stock or any other class
      of
      security. The recent cancellation of 8 million shares of common stock by Parent
      was duly authorized. Parent has no shares reserved for issuance pursuant to
      a
      stock option plan or pursuant to securities exercisable for, or convertible
      into
      or exchangeable for shares of common stock. All of the issued and outstanding
      shares of capital stock of Parent are duly authorized, validly issued, fully
      paid and nonassessable. No shares of capital stock of Parent are subject to
      preemptive rights or any other similar rights. There are (i) no outstanding
      options, warrants, scrip, rights to subscribe for, puts, calls, rights of first
      refusal, agreements, understandings, claims or other commitments or rights
      of
      any character whatsoever relating to, or securities or rights convertible into
      or exchangeable for any shares of capital stock of Parent or arrangements by
      which Parent is or may become bound to issue additional shares of capital stock
      of Parent, (ii) no agreements or arrangements under which the Parent is
      obligated to register the sale of any of its or their securities under the
      Securities Act, and (iii) no anti-dilution or price adjustment provisions
      contained in any security issued by Parent (or any agreement providing any
      such
      rights). 

    

    Section
      4.3
       Corporate
      Power and Authority.
      Parent
      has all requisite power and authority to enter into and deliver this Agreement
      and to consummate the transactions contemplated hereby. The execution, delivery,
      and performance of this Agreement by Parent and the consummation by it of the
      transactions contemplated hereby, and the execution, delivery and performance
      of
      the other agreements, documents and instruments to be executed and delivered
      in
      connection with this Agreement by Parent and the consummation of the
      transactions contemplated thereby, have been duly authorized by all necessary
      action on the part of Parent and no other action or corporate proceeding on
      the
      part of Parent is necessary to authorize the execution, delivery, and
      performance by Parent of this Agreement and the consummation of the transactions
      contemplated hereby. This Agreement has been duly executed and delivered by
      Parent and constitutes the legal, valid and binding obligation of Parent,
      enforceable against Parent in accordance with its terms.

    

    
      
        
        

      

      
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    Section
      4.4 Conflicts;
      Consents and Approvals.
      Neither
      the execution and delivery by Parent of this Agreement and the other agreements,
      documents and instruments to be executed and delivered by any of them in
      connection with this Agreement, nor the consummation of the transactions
      contemplated hereby and thereby, will: 

    

    (a)
      conflict
      with, or result in a breach of any provision of, the organizational documents
      of
      Parent;

    

    (b)
      violate,
      or conflict with, or result in a breach of any provision of, or constitute
      a
      default (or an event that, with the giving of notice, the passage of time or
      otherwise, would constitute a default) under, or entitle any Person (with the
      giving of notice, the passage of time or otherwise) to terminate, accelerate,
      modify or call a default under, or give rise to any obligation to make a payment
      under, or to any increased, additional or guaranteed rights of any Person under,
      or result in the creation of any Encumbrance upon any of the properties or
      assets of Parent or the Exchange Shares under any of the terms, conditions
      or
      provisions of (1) the organizational documents of Parent, (2) any Contract
      to
      which Parent is a party or to which any of their respective properties or assets
      may be bound which, if so affected, would either have a Material Adverse Effect
      or be reasonably likely to prevent the consummation of the transactions
      contemplated herein, or (3) any permit, registration, approval, license or
      other
      authorization or filing to which Parent is subject or to which any of its
      properties or assets may be subject; 

    

    (c)
      require
      any action, consent or approval of any non-governmental third party, other
      than
      the Company Required Consents listed on Schedule
      4.4;
      

    

    (d)
      violate
      any order, writ, or injunction, or any material decree, or material Law
      applicable to Parent or any of its, business, properties, or assets;
      or

     

    (e)
      require
      any action, consent or approval of, or review by, or registration or filing
      by
      Parent with any Governmental Authority other than the filing of the Certificate
      of Merger with the Secretary of State of the State of Delaware and compliance
      with applicable rules of the SEC.

    

    Section
      4.5 Exchange
      Shares.
      As of
      the Closing, all of the Exchange Shares shall be duly authorized, validly
      issued, fully paid and nonassessable, and not issued in violation of any
      preemptive or similar rights. Upon delivery to the Company of the certificates
      representing the Exchange Shares, the Stockholders will acquire good and valid
      title to such shares, free and clear of any Encumbrances, other than
      restrictions under applicable securities laws.

    

    Section
      4.6 Subsidiaries.
      Other
      than Acquisition Corp., Parent does not own, directly or indirectly, nor have
      entered into any agreement, arrangement or understanding to purchase or sell
      any
      capital stock or other equity interests in any Person or is a member of or
      participant in any Person or have any Subsidiaries. 

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    Section
      4.7 No
      Material Adverse Effect.
      As of
      the date of this Agreement, (a) Parent has (1) maintained its books and records
      in accordance with past accounting practice, and (2) used all reasonable
      commercial efforts to preserve intact the assets and the business organization
      and operations of Parent, to keep available the services of its employees and
      to
      preserve its relationships with customers, suppliers, licensors, licensees,
      contractors and other persons with whom Parent have business relations, (b)
      no
      Material Adverse Effect on Parent has occurred, and (c) there has been no event,
      occurrence or development that has had, or would reasonably be expected to
      have,
      a material adverse effect on the ability of the Company or Parent to timely
      consummate the transactions contemplated hereby.

    

    Section
      4.8 Title
      to Properties.
      Schedule
      4.8
      lists
      all properties and assets of Parent. Parent has good and marketable title to
      all
      of its properties and assets, real and personal, free and clear of all
      Encumbrances. All equipment used by Parent is generally in good operating
      condition and repair, and is adequate for the uses to which it is being
      put.

    

    Section
      4.9 Taxes.
      Parent
      has (a) duly and timely filed all Tax Returns relating to Parent that it was
      required to file (taking into account any extensions of the filing deadlines
      which have been validly granted) and (b) paid all Taxes that are shown thereon
      as owing or that are otherwise due and payable by it. Such filed Tax Returns
      are
      true, correct and complete in all material respects. There are no outstanding
      agreements or waivers extending the statutory period of limitation applicable
      to
      any Taxes of Parent for any period. Parent (v) has not filed a consent to the
      application of Section 341(f) of the Code, (w) has not been a “distributing
      corporation” or a “controlled corporation” in a distribution intended to qualify
      under Section 355(a) of the Code within the past five years, (x) is not a party
      to any Tax sharing, allocation or indemnification agreement or arrangement,
      (y)
      is not required to make any adjustments under Section 481(a) of the Code (or
      any
      similar provision of state, local or foreign Tax law) for any taxable year
      ending after the Closing Date, and (z) has not been a member of an affiliated
      group filing a consolidated, combined or unitary Tax Return or has any liability
      for the Taxes of any Person (other than Parent) under Treasury Regulation
§1.15026 (or any similar provision of state, local or foreign law).

    

    Section
      4.10 Compliance
      with Law.
      Parent
      and each of the officers, managers, directors, employees and agents of Parent
      has complied in all respects with all Laws applicable to Parent and its products
      and operations. Neither Parent nor any of its officers, managers, directors,
      employees, or agents has received any notice from any Governmental Authority
      that Parent has been or is being conducted in violation of any applicable Law
      or
      that an investigation or inquiry into any noncompliance with any applicable
      Law
      is ongoing, pending or threatened. 

    

    
      
        
        

      

      
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    Section
      4.11 Intellectual
      Property.
      

    

    (a)
      For
      the
      purposes of this Agreement, the following terms have the following
      definitions:

    

    “Intellectual
      Property”
shall
      mean any or all of the following and all rights in, arising out of, or
      associated therewith: (i) all patents and applications therefor throughout
      the
      world, and all reissues, divisions, renewals, extensions, provisionals,
      continuations and continuations-in-part thereof; (ii) all inventions (whether
      patentable or not), invention disclosures, improvements, trade secrets,
      proprietary information, know how, technology, technical data and customer
      lists, and all documentation relating to any of the foregoing; (iii) all
      copyrights, copyrights registrations and applications therefor, and all other
      rights corresponding thereto throughout the world; (iv) all industrial designs
      and any registrations and applications therefor throughout the world, (v) all
      trade names, logos, URLs, common law trademarks and service marks, trademark
      and
      service mark registrations and applications therefor throughout the world;
      (vi)
      all databases and data collections and all rights therein throughout the world;
      (vii) all moral and economic rights of authors and inventors, however
      denominated, throughout the world, and (viii) any similar or equivalent rights
      to any of the foregoing anywhere in the world.

    

    “Registered
      Intellectual Property”
means
      all: (i) registered patents and applications for patent registration (including
      provisional applications); (ii) registered trademarks, applications to register
      trademarks, intent-to-use applications, or other registrations or applications
      related to trademarks; (iii) registered copyrights and applications for
      copyright registration; and (iv) any other Intellectual Property that is the
      subject of an application, certificate, filing, registration or other document
      issued, filed with, or recorded by any state, government or other public legal
      authority.

    

    “Parent
      Intellectual Property”
shall
      mean any Intellectual Property or Registered Intellectual Property that is
      owned
      by, or licensed to Parent. 

    

    (b)
      No
      Parent
      Intellectual Property or product or service of Parent is subject to any Action
      or Claim, agreement, or stipulation restricting in any manner the use, transfer,
      or licensing thereof by Parent, or which may affect the validity, use or
      enforceability of such Parent Intellectual Property.

    

    (c)
      Schedule
      4.11
      is a
      complete and accurate list of all the Parent Intellectual Property and
      specifies, where applicable, the jurisdictions in which each such item of the
      Registered Intellectual Property has been issued or registered or in which
      an
      application for such issuance and registration have been filed, including the
      respective registration or application numbers. Each item of the Parent
      Intellectual Property is valid and subsisting, all necessary registration,
      maintenance and renewal fees currently due in connection with such Intellectual
      Property have been made and all necessary documents, recordations and
      certificates in connection with such Parent Intellectual Property have been
      filed with the relevant patent, copyright, trademark or other authorities in
      the
      United States or foreign jurisdictions, as the case may be, for the purposes
      of
      maintaining such Parent Intellectual Property.

    

    (d)
      Parent
      owns and has good and exclusive title to, or has license (sufficient for the
      conduct of its business as currently conducted and as proposed to be conducted)
      to, each item of the Parent Intellectual Property free and clear of any
      Encumbrances (excluding licenses and related restrictions).

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (e) Schedule
      4.11
      lists
      all Contracts to which Parent is a party (i) with respect to the Parent
      Intellectual Property licensed or transferred to any Person or (ii) pursuant
      to
      which a Person has licensed or transferred any Intellectual Property to
      Parent.

    

    (f) All
      Contracts relating to the Parent Intellectual Property are in full force and
      effect. The consummation of the transactions contemplated by this Agreement
      will
      neither violate nor result in the breach, modification, cancellation,
      termination, or suspension of such Contracts. Parent is in compliance with,
      and
      has not breached any term of such Contracts and, to the knowledge of Parent,
      all
      other parties to such Contracts are in compliance with, and have not breached
      any term of, such Contracts. Following the Closing, Parent will be permitted
      to
      exercise all the rights under such Contracts to the same extent Parent would
      have been able to had the transactions contemplated by this Agreement not
      occurred and without the payment of any additional amounts or consideration
      other than ongoing fees, royalties or payments.

    

    (g)
      Parent
      possesses all the Intellectual Property rights necessary to effectuate its
      business and operations. Parent has
      not
      infringed or misappropriated any Intellectual Property of any third Person
      or
      engaged in unfair competition or any unlawful trade practice. Parent has not
      received notice from any third party that the operation of its business, or
      any
      act, product or service of Parent, infringes or misappropriates the Intellectual
      Property of any third party or constitutes unfair competition or trade practices
      under the laws of any jurisdiction. No Person has infringed or misappropriated
      or is infringing or misappropriating any of the Parent Intellectual
      Property.

    

    (h)
      Parent
      has taken all necessary steps to protect the rights of Parent in its
      confidential information and trade secrets that it wishes to protect or any
      trade secrets or confidential information of third parties provided to
      Parent.

    

    Section
      4.12 Environmental
      Matters.
      

    

    (a)
      Parent
      is
      in compliance with, and has at all times complied with, all applicable
      Environmental Laws, and there are no facts, circumstances or conditions,
      including requirements of current Environmental Laws that have been adopted
      but
      are not yet effective, for which reserves or accruals would be required under
      GAAP, as consistently applied.

    

    (b)
      Parent
      is
      not subject to any existing, pending, or threatened Action or Claim by any
      Person under any Environmental Laws.

    

    (c)
      The
      Environmental Permits that are required for the conduct of Parent’s business are
      valid, in full force and effect and enforceable according to their terms, no
      proceeding is pending or threatened, to revoke, modify or terminate such
      permits, and Parent is in compliance with, and have at all times complied with,
      all such Environmental Permits. 

    

    
      
        
        

      

      
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    Section
      4.13 Litigation.
      There
      is no Action pending or threatened against Parent, or any executive officer,
      member, manager or director thereof in each case that (a) relates to Parent,
      its
      assets, or its business, or (b) as of the date hereof, seeks, or could
      reasonably be expected, to prohibit or restrain the ability of Parent to enter
      into this Agreement or to timely consummate any of the transactions contemplated
      hereby, and there is no reasonable basis for any such Action. There are no
      judgments, decrees, agreements, memoranda of understanding or orders of any
      Governmental Authority outstanding against Parent. 

    

    Section
      4.14 Contracts.
      Schedule
      4.14
      contains
      a complete list, as of the date hereof, of all Contracts to which Parent is,
      or
      will be at Closing, a party or bound, or that otherwise relate to its business
      or assets. Parent has made available to the Company or its representatives
      correct and complete copies of all such Contracts with all amendments thereof.
      Each such Contract is, and will at Closing be, valid, binding, and enforceable
      against Parent and the other parties thereto in accordance with its terms,
      and
      is, and will at Closing be, in full force and effect. Parent is not in default
      under or in breach of or is, or as of the Closing will be, otherwise delinquent
      in performance under any such Contract, and no event has occurred, or will
      as of
      the Closing occur, that, with notice or lapse of time, or both, would constitute
      such a default. Each of the other parties thereto has performed in all respects
      all of the obligations required to be performed by it under, and is not in
      default under, any such Contract and no event has occurred that, with notice
      or
      lapse of time, or both, would constitute such a default. There are no disputes
      pending or threatened in writing with respect to any such Contracts. Neither
      Parent nor any other party to any such Contract has exercised any option granted
      to it to terminate or shorten or extend the term of such Contract, and Parent
      has not given notice or received notice to such effect. All of such Contracts
      will continue to be valid, binding, enforceable and in full force and effect
      on
      substantially identical terms following the consummation of the transactions
      contemplated hereby. 

     

    Section
      4.15 Labor
      and Employment Matters.

    

    (a)
      There
      are
      no collective bargaining agreements, union contracts or similar agreements
      or
      arrangements in effect that cover any Employee or Former Employee (each, a
      "Collective
      Bargaining Agreement").
      With
      respect to any Employee, (a) there is no labor strike, dispute, slowdown,
      lockout or stoppage pending or threatened against Parent or with respect to
      any
      Employees, and Parent has not experienced any labor strike, dispute, slowdown,
      lockout or stoppage; (b) there is no unfair labor practice charge or complaint
      against Parent or threatened before the National Labor Relations Board or before
      any similar state or foreign agency; (c) there is no grievance or arbitration
      arising out of any Collective Bargaining Agreement or other grievance procedure;
      and (d) no charges are pending before the Equal Employment Opportunity
      Commission or any other agency responsible for the prevention of unlawful
      employment practices. 

    

    (b)
      Parent
      is
      in compliance in all respects with all Laws, regulations and orders relating
      to
      the employment of labor, including all such Laws, regulations and orders
      relating to wages, hours, and any similar state or local "mass layoff" or "plant
      closing" Law, collective bargaining, discrimination, civil rights, safety and
      health, workers' compensation and the collection and payment of withholding
      and/or social security taxes and any similar tax.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Section
      4.16 Permits;
      Compliance. Parent is in possession of all franchises, grants,
      authorizations, licenses, permits, easements, variances, exemptions, consents,
      certificates, approvals and orders necessary to own, lease and operate its
      properties and assets and to carry on its business as it is now being conducted
      and as it will be conducted through to the Closing (collectively, the
“Permits”). There is no Action pending, or threatened, regarding any of
      the Permits and each such Permit is in full force and effect. Parent is not
      in
      conflict with, or in material default (or would be in default with the giving
      of
      notice, the passage of time, or both) with, or in violation of, any of the
      Permits. 

    

    Section
      4.17 Debts and Guaranties. As of the Closing, Parent has no debts,
      liabilities, obligations, direct, indirect, absolute or contingent, whether
      accrued, vested or otherwise, whether known or unknown. In addition, Parent
      is not directly or indirectly (a) liable, by guarantee or otherwise, upon or
      with respect to, (b) obligated to provide funds with respect to, or to guarantee
      or assume, any Indebtedness or other obligation of any Person. 

    

    Section
      4.18 Full Disclosure. No representation or warranty of Parent in
      this Agreement omits to state a material fact necessary to make the statements
      herein, in light of the circumstances in which they were made, not misleading.
      There is no fact known to Parent that has specific application to the Company
      or
      Stockholders and that materially adversely affects or, as far as can be
      reasonably foreseen, materially threatens, the assets, business, prospects,
      financial condition, or results of operations of Parent that has not been set
      forth in this Agreement.

    

    Section
      4.19 SEC Documents. Parent has timely filed all reports, schedules,
      forms, statements and other documents required to be filed by it with the SEC
      pursuant to the reporting requirements of the Securities Exchange Act of 1934,
      as amended (the “1934 Act”) (all of the foregoing filed prior to the date
      hereof and all exhibits included therein and financial statements and schedules
      thereto and documents (other than exhibits to such documents) incorporated
      by
      reference therein, being hereinafter referred to herein as the “SEC
      Documents”). As of their respective dates, the SEC Documents complied in all
      material respects with the requirements of the 1934 Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. None of the statements made in any such SEC Documents is, or has
      been, required to be amended or updated under applicable law (except for such
      statements as have been amended or updated in subsequent filings prior the
      date
      hereof). Parent has not received any communication from the SEC, NASD or any
      other regulatory authority regarding any SEC Document or any disclosure
      contained therein. As of their respective dates, the financial statements of
      Parent included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the SEC with respect thereto. Such financial statements have
      been
      prepared in accordance with United States generally accepted accounting
      principles, consistently applied, during the periods involved (except (i) as
      may
      be otherwise indicated in such financial statements or the notes thereto, or
      (ii) in the case of unaudited interim statements, to the extent they may not
      include footnotes or may be condensed or summary statements) and fairly present
      in all material respects the financial position of Parent as of the dates
      thereof and the results of their operations and cash flows for the periods
      then
      ended (subject, in the case of unaudited statements, to normal year-end audit
      adjustments). 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

    REPRESENTATIONS
      AND WARRANTIES OF ACQUISTION CORP.

    

    As
      an inducement to the Company and the
      Stockholders to enter into this Agreement and to consummate the transactions
      contemplated herein, Parent, the Principals and Acquisition Corp. represent
      and
      warrant, as of the date of this Agreement and as of the Closing Date, to the
      Company and Stockholders as follows:

    

    Section
      5.1 Organization. Acquisition Corp. is a corporation duly organized,
      validly existing, and in good standing under the laws of the State of Delaware.
      Acquisition Corp. has all requisite power to own, operate and lease its business
      and assets and carry on its business as the same is now being conducted.

    

    Section
      5.2 Capital Structure. All of the issued and outstanding
      capital stock of Acquisition Corp. is, and at the Effective Time will be, owned
      by Parent or a direct or indirect wholly-owned Subsidiary of Parent. Acquisition
      Corp. has not conducted any business prior to the date hereof and has no, and
      prior to the Effective Time will have no, assets, liabilities or obligations
      of
      any nature other than those incident to its formation and pursuant to this
      Agreement and the Merger and the other transactions contemplated by this
      Agreement.

    

    Section
      5.3 Corporate Power and Authority. Acquisition Corp. has all
      requisite corporate power and authority to enter into and deliver this Agreement
      and to consummate the transactions contemplated hereby. The execution, delivery,
      and performance of this Agreement by Acquisition Corp. and the consummation
      of
      the transactions contemplated hereby, have been duly authorized by all necessary
      action and no other corporate action or corporate proceeding on the part of
      Acquisition Corp. is necessary to authorize the execution, delivery, and
      performance by Acquisition Corp. of this Agreement and the consummation by
      Acquisition Corp. of the transactions contemplated hereby. This Agreement has
      been duly executed and delivered by Acquisition Corp. and constitutes the legal,
      valid and binding obligation of Acquisition Corp., enforceable against
      Acquisition Corp. in accordance with its terms.

    

    Section
      5.4 Conflicts; Consents and Approvals. Neither the execution and
      delivery by Acquisition Corp. of this Agreement and the other agreements,
      documents and instruments to be executed and delivered by any of them in
      connection with this Agreement, nor the consummation of the transactions
      contemplated hereby and thereby, will: 

    

    (a) conflict
      with, or result in a breach of any provision of, the organizational documents
      of
      Acquisition Corp.;

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (b) violate,
      or conflict with, or result in a breach of any provision of, or constitute
      a
      default (or an event that, with the giving of notice, the passage of time or
      otherwise, would constitute a default) under, or entitle any Person (with the
      giving of notice, the passage of time or otherwise) to terminate, accelerate,
      modify or call a default under, or give rise to any obligation to make a payment
      under, or to any increased, additional or guaranteed rights of any Person under,
      or result in the creation of any Encumbrance upon any of the properties or
      assets of the Acquisition Corp. under any of the terms, conditions or provisions
      of (1) the organizational documents of Acquisition Corp., (2) any Contract
      to
      which Acquisition Corp. is a party or to which any of their respective
      properties or assets may be bound which, if so affected, would either have
      a
      Material Adverse Effect or be reasonably likely to prevent the consummation
      of
      the transactions contemplated herein, or (3) any permit, registration, approval,
      license or other authorization or filing to which Acquisition Corp. is subject
      or to which any of its properties or assets may be subject; 

    

    (c) require
      any action, consent or approval of any non-governmental third party other than
      the Acquisition Corp. Required Consents listed in Schedule
      5.4;
      

    

    (d) violate
      any order, writ, or injunction, or any material decree, or material Law
      applicable to the Company or any of its, business, properties, or assets;
      or

     

    (e) require
      any action, consent or approval of, or review by, or registration or filing
      by
      Acquisition Corp. with any Governmental Authority other than the filing of
      the
      Certificate of Merger with the Secretary of State of the State of Delaware
      and
      compliance with applicable rules of the SEC.

    

    Section
      5.5  Subsidiaries. Acquisition Corp. does not own, directly or
      indirectly, nor have entered into any agreement, arrangement or understanding
      to
      purchase or sell any capital stock or other equity interest in any Person or
      is
      a member of or participant in any Person. Acquisition Corp. does not have any
      subsidiaries. 

    

    ARTICLE
      VI

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

    As
      an
      inducement to Parent to enter into this Agreement and to consummate the
      transactions contemplated herein, the Company represents and warrants, as of
      the
      date of this Agreement and as of the Closing Date, to the Parent as
      follows:

    

    Section
      6.1 Organization. The Company is a corporation duly organized,
      validly existing, and in good standing under the laws of the State of Delaware.
      The Company has all requisite power to own, operate and lease its business
      and
      assets and carry on its business as the same is now being conducted.

    

    Section
      6.2  Corporate Power and Authority. The Company has all requisite
      corporate power and authority to enter into and deliver this Agreement and
      to
      consummate the transactions contemplated hereby. The execution, delivery, and
      performance of this Agreement by the Company and the consummation of the
      transactions contemplated hereby, have been duly authorized by all necessary
      action and no other corporate action or corporate proceeding on the part of
      the
      Company is necessary to authorize the execution, delivery, and performance
      by
      the Company of this Agreement and the consummation by the Company of the
      transactions contemplated hereby. This Agreement has been duly executed and
      delivered by the Company and constitutes the legal, valid and binding obligation
      of the Company, enforceable against the Company in accordance with its
      terms.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Section
      6.3  Conflicts; Consents and Approvals. Neither the execution and
      delivery by the Company of this Agreement and the other agreements, documents
      and instruments to be executed and delivered by any of them in connection with
      this Agreement, nor the consummation of the transactions contemplated hereby
      and
      thereby, will: 

    

    (a) conflict
      with, or result in a breach of any provision of, the organizational documents
      of
      the Company;

    

    (b) violate,
      or conflict with, or result in a breach of any provision of, or constitute
      a
      default (or an event that, with the giving of notice, the passage of time or
      otherwise, would constitute a default) under, or entitle any Person (with the
      giving of notice, the passage of time or otherwise) to terminate, accelerate,
      modify or call a default under, or give rise to any obligation to make a payment
      under, or to any increased, additional or guaranteed rights of any Person under,
      or result in the creation of any Encumbrance upon any of the properties or
      assets of the Company or the Exchange Shares under any of the terms, conditions
      or provisions of (1) the organizational documents of Company, (2) any Contract
      to which the Company is a party or to which any of their respective properties
      or assets may be bound which, if so affected, would either have a Material
      Adverse Effect or be reasonably likely to prevent the consummation of the
      transactions contemplated herein, or (3) any permit, registration, approval,
      license or other authorization or filing to which the Company is subject or
      to
      which any of its properties or assets may be subject; 

    

    (c) require
      any action, consent or approval of any non-governmental third party, other
      than
      the Company Required Consents listed in Schedule
      4.4;
      

    

    (d) violate
      any order, writ, or injunction, or any material decree, or material Law
      applicable to the Company or any of its, business, properties, or assets;
      or

     

    (e) require
      any action, consent or approval of, or review by, or registration or filing
      by
      the Company with any Governmental Authority.

    

    Section
      6.4  Information. Parent has received all documents, records, books
      and other information pertaining to the Company that has been requested by
      Parent. Parent makes such representation notwithstanding its express
      acknowledgment that the information about Amplification Technologies, Inc.
      attached as Exhibit D is not in the form and is not as extensive as that which
      would be required in a registration statement filed with the SEC. Parent
      acknowledges that the Company has prepared such information in good faith but
      nevertheless is not warranted by the Company.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

    ADDITIONAL
      AGREEMENTS AND COVENANTS

    

    Section
      7.1  Access and Information. Prior to the Closing, except to the
      extent prohibited by applicable Law, Parent, on one hand, and the Company,
      on
      the other hand, shall permit representatives of the other to have reasonable
      access during normal business hours and upon reasonable notice to all premises,
      properties, personnel, books, records, Contracts, commitments, reports of
      examination and documents of or pertaining to, as may be necessary to permit
      the
      other to, at its sole expense, make, or cause to be made, such investigations
      thereof as the other reasonably deems necessary or advisable in connection
      with
      the consummation of the transactions contemplated by this Agreement, and Parent
      and the Company shall reasonably cooperate with any such investigations. No
      investigation by a party or its representatives or advisors prior to or after
      the date of this Agreement (including any information obtained by a party
      pursuant to this Section 7.1) shall diminish, obviate or cure any breach of
      any
      representation, warranty, covenant or agreement contained in this Agreement
      nor
      shall the conduct or completion of any such investigation be a condition to
      any
      of such party's obligations under this Agreement. 

    

    Section
      7.2  Confidentiality. Each of the parties shall use reasonable
      efforts to cause their respective Affiliates, officers, directors, employees,
      auditors, attorneys, consultants, advisors and agents, to treat as confidential
      and hold in strict confidence, unless compelled to disclose by judicial or
      administrative process or, in the opinion of its counsel, by other requirements
      of Law, and after prior written notice to the other parties, all confidential
      information of Parent or the Company, as the case may be, that is made available
      in connection with this Agreement, and will not release or disclose such
      confidential information to any other Person, except their respective auditors,
      attorneys, financial advisors and other consultants, agents, and advisors in
      connection with this Agreement. If the Closing does not occur (a) such
      confidence shall be maintained by the Parties and each Party shall use
      reasonable efforts to cause its officers, directors, Affiliates and such other
      Persons to maintain such confidence, except to the extent such information
      comes
      into the public domain (other than as a result of an action by such Party,
      its
      officers, directors or such other Persons in contravention of this Agreement),
      and (b) upon the request of any Party, the other Party shall promptly return
      to
      the requesting Party any written materials remaining in its possession, which
      materials it has received from the requesting Party or its representatives,
      together with any analyses or other written materials based upon the materials
      provided.

    

    Section
      7.3 Conduct
      of Business.
      From
      and after the date hereof until the Closing, except as otherwise expressly
      contemplated by this Agreement, each of Parent and the Company
      shall:

    

    (a) use
      reasonable commercial efforts to preserve its business, operations, physical
      facilities, working conditions and its business relationships with customers,
      suppliers, licensors, licensees, contractors and other persons with whom it
      has
      significant business relations; 

    

    (b) not
      take
      any action that would cause a material breach of the representations and
      warranties contained here. 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (c) not
      amend
      its Articles of Incorporation or Bylaws (or other similar governing
      instrument);

    

    (d) not
      split, combine or reclassify any of its shares, declare, set aside or pay any
      dividend or other distribution (whether in cash, stock or property or any
      combination thereof) in respect of its equity interests, make any other actual
      or constructive distribution in respect of its interests or otherwise make
      any
      payments to holders in their capacity as such, or redeem or otherwise acquire
      any of its securities or any other securities;

    

    (e) not
      adopt
      a plan of complete or partial liquidation, dissolution, merger, consolidation,
      restructuring, recapitalization or other reorganization or otherwise permit
      its
      corporate existence to be suspended, lapsed or revoked; 

    

    (f) not
      create or form any Subsidiary (other than Acquisition Corp.);

    

    (g) other
      than in the ordinary course of its business, (1) incur or assume any Liability
      in excess of $10,000; (2) assume, guarantee, endorse or otherwise become liable
      or responsible (whether directly, contingently or otherwise) for the obligations
      of any other Person; (3) make any loans, advances or capital contributions
      to or
      investments in any other Person; nor (4) pledge or otherwise Encumber its
      shares; 

    

    (h) not
      acquire, sell, lease, license, transfer or otherwise dispose of any assets
      in
      any single transaction or series of related transactions having a fair market
      value in excess of $1,000 in the aggregate or that are otherwise material to
      it
      other than in the ordinary course of business; 

    

    (i) not
      (1)
      acquire (by merger, consolidation or acquisition of stock or assets) any
      corporation, partnership or other entity or division thereof or any equity
      interest therein; (2) amend, modify, waive or terminate any right under any
      material contract in any material way; nor (3) authorize any new capital
      expenditure or expenditures that individually is in excess of $1,000 or in
      the
      aggregate are in excess of $3,000; 

    

    (j) not
      enter
      into any Contract; or

    

    (k) not
      make
      any change with respect to the compensation or benefits of any officer, director
      or Employee or Former Employee. 

    

    Notwithstanding
      anything contained herein to the contrary, the transactions to be taken by
      the
      Company contemplated and pursuant to the terms of this Agreement, and otherwise
      in accordance with its plan of operations and capital structure obligations
      as
      described in the information memorandum attached hereto as Exhibit D, are
      excluded from the restrictions provided above.

    

    Section
      7.4  Efforts
      to Consummate.
      Subject
      to the terms and conditions of this Agreement, each party hereto shall use
      all
      reasonable commercial efforts to take, or to cause to be taken, all actions
      and
      to do, or to cause to be done, all things necessary, proper or advisable as
      promptly as practicable to satisfy the conditions set forth in Article VIII,
      and
      to consummate the transactions contemplated hereby. 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Section
      7.5 No-Shop.
      From
      the date hereof until the later of the Closing Date or the date of the Effective
      Time of this Agreement in accordance with the terms hereof, Parent nor its
      officers, managers, directors, employees, agents, representatives and
      Affiliates, shall, directly or indirectly, make, solicit, initiate or encourage
      submission of proposals or offers from any Persons relating to an Acquisition
      Proposal (as defined below). As used herein, “Acquisition Proposal” means any
      proposal or offer involving a liquidation, dissolution, re-capitalization,
      merger, consolidation or acquisition or purchase of all or substantially all
      of
      the assets of, or equity interest in, Parent or any other similar transaction
      or
      business combination involving the same. Parent shall immediately cease and
      cause to be terminated all discussions or negotiations with third parties with
      respect to any Acquisition Proposal, if any, exiting on the date hereof.

    

    Section
      7.6  Notification
      by the Parties.
      Each
      party hereto shall use its reasonable commercial efforts to as promptly as
      practicable inform the other parties hereto in writing if, prior to the
      consummation of the Closing, it obtains knowledge that any of the
      representations and warranties made by such party in this Agreement ceases
      to be
      accurate and complete in any material respect (except for any representation
      and
      warranty that is qualified hereunder as to materiality or Material Adverse
      Effect, as to which such notification shall be given if the notifying party
      obtains knowledge that such representation and warranty ceases to be accurate
      and complete in any respect). Each party hereto shall also use its reasonable
      commercial efforts to promptly inform the other parties hereto in writing if,
      prior to the consummation of the Closing, it becomes aware of any fact or
      condition that constitutes, in its reasonable judgment, a breach of any covenant
      of such party as of the date of this Agreement or that would reasonably be
      expected to cause any of its covenants to be breached as of the Closing Date.
      Any such notification shall not be deemed to have cured any breach of any
      representation, warranty, covenant or agreement made in this Agreement for
      any
      purposes of this Agreement. 

    

    Section
      7.7  Cooperation
      with Respect to Financial Reporting.
      After
      the date of this Agreement, the Company shall reasonably cooperate with Parent
      in connection with Parent’s preparation of historical financial statements and
      other information as required for Parent’s filings under the 1934
      Act.

    

    ARTICLE
      VIII

    CONDITIONS
      TO CLOSING

    

    Section
      8.1 Conditions to Company’s Obligation to Close. All obligations of
      the Company to consummate the transactions contemplated hereunder are subject
      to
      the fulfillment or waiver prior to or at the Closing of each of the following
      conditions:

     

    (a) All
      representations and warranties of Parent contained in this Agreement shall
      be
      true and correct in all respects when made and shall be deemed to have been
      made
      again at and as of the Closing and shall then be true and correct in all
      respects (except that representations and warranties made as of a specified
      date, shall be true and correct only as of such specified date);

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    If
      requested by the Company, it shall have received a certificate, executed by
      the
      President of Parent, dated as of the Closing Date, to the foregoing effect
      and
      as to such other matters as may be reasonably requested by the
      Company.

    

    (b) Prior
      to
      or at the Closing, Parent shall have delivered to the Company the items to
      be
      delivered pursuant to Section 2.4;

    

    (c) Parent
      shall have performed in all material respects each obligation and agreement
      to
      be performed by it, and shall have complied in all material respects with each
      covenant required by this Agreement to be performed or complied with by it
      at or
      prior to the Closing; and 

    

    (d) The
      Company shall have completed to its reasonable satisfaction its business and
      legal due diligence investigation of Parent, shall not have discovered any
      facts, circumstances, liabilities or conditions that, in the Company’s
      reasonable discretion, may adversely affect the value or prospects of Parent
      or
      that may expose Parent to any liability not heretofore fully disclosed to the
      Company. 

    

    (e) The
      Company shall have provided to Parent a certificate of good standing from the
      Secretary of State of Delaware and certified copies of its Articles of
      Incorporation; 

    

    (f) The
      Parent shall have prepared the Current Report on Form 8-K required as a result
      on the consummation of the transactions contemplated hereby.

    

    Section
      8.2  Conditions
      to Parent’s Obligations to Close.
      All
      obligations of Parent to consummate the transactions contemplated hereunder
      are
      subject to the fulfillment or waiver prior to or at the Closing of each of
      the
      following conditions:

    

    (a) All
      representations and warranties of the Company contained in this Agreement shall
      be true and correct in all respects when made and shall be deemed to have been
      made again at and as of the Closing and shall then be true and correct in all
      respects (except that representations and warranties made as of a specified
      date, shall be true and correct only as of such specified date);

    

    Parent
      shall have received a certificate, executed by the President of the Company,
      dated as of the Closing Date, to the foregoing effect and as to such other
      matters as may be requested by Parent.

    

    (b) Prior
      to
      or at the Closing, the Company shall have delivered to Parent the items to
      be
      delivered pursuant to Section 2.4; 

    

    (c) The
      Company shall have performed in all respects each obligation and agreement
      to be
      performed by it, and shall have complied in all respects with each covenant
      required by this Agreement to be performed or complied with by it at or prior
      to
      the Closing; 

    

    (d) The
      Company shall have provided to Parent a certificate of good standing from the
      Secretary of State of Delaware and certified copies of its Articles of
      Incorporation; 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (e) Parent
      shall have completed to its reasonable satisfaction its business and legal
      due
      diligence investigation of the Company, its property, business and subsidiaries,
      shall not have discovered any facts, circumstances, liabilities or conditions
      that, in Parent’s discretion, may adversely affect the value or prospects of the
      Company or that may expose the Company to any liability not heretofore fully
      disclosed to Parent; and

    

    (f) Parent
      shall have received any agreements, instruments, certificates and any other
      documentation requested. 

    

    (g) The
      Company shall have prepared the Current Report on Form 8-K required as a result
      on the consummation of the transactions contemplated hereby.

     

    ARTICLE
      IX

    TERMINATION

    

    Section
      9.1  Termination.
      This
      Agreement may be terminated at any time prior to the consummation of the Closing
      under the following circumstances: 

    

    (a) by
      mutual
      written consent of Parent and the Company or a majority of the
      Stockholders;

    

    (b) by
      Parent, the Company or by a majority of the Stockholders, if the Closing Date
      shall not have been consummated on or before December 31, 2008; provided that
      the right to terminate this Agreement under this Section 9.1 shall not be
      available to a party if such party's or such party's Affiliate's willful act
      or
      willful failure to act has been the cause of or resulted in the failure of
      the
      Closing to be consummated on or before such date;

    

    (c) by
      any
      party, if there shall be in effect a final, non-appealable order of a court
      or
      government administrative agency of competent jurisdiction permanently
      prohibiting the consummation of the transactions contemplated hereby.

    

    Section
      9.2  Termination
      Procedure.
      Written
      notice of any termination (“Termination
      Notice”)
      pursuant to this Article IX shall be given by the party electing termination
      of
      this Agreement (“Terminating
      Party”)
      to the
      other parties (collectively, the “Terminated
      Party”),
      and
      such notice shall state the reason for termination. The party or parties
      receiving Termination Notice shall have a period of ten (10) days after receipt
      of Termination Notice to cure the matters giving rise to such termination to
      the
      reasonable satisfaction of the Terminating Party. If the matters giving rise
      to
      termination are not cured as required hereby, this Agreement shall be terminated
      effective as of the close of business on the tenth (10th) day following the
      Terminated Party’s receipt of Termination Notice. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Section
      9.3  Effect
      of Termination.
      Upon
      termination of this Agreement prior to the consummation of the Closing and
      in
      accordance with the terms hereof, this Agreement shall become void and of no
      effect, and none of the parties shall have any liability to the others, except
      that nothing contained herein shall relieve any party from liability for its
      intentional breach of any representation, warranty or covenant contained herein,
      or its intentional failure to comply with the terms and conditions of this
      Agreement or to perform its obligations hereunder. If it shall be finally
      judicially determined that termination of this Agreement was caused by an
      intentional and deliberate breach of this Agreement, then, in addition to other
      remedies at Law or equity for breach of this Agreement, the party so found
      to
      have intentionally and deliberately breached this Agreement shall indemnify
      and
      hold harmless the other parties hereto for their respective out-of-pocket costs,
      including the reasonable fees and expenses of their counsel, accountants,
      financial advisors and other experts and advisors, as well as reasonable fees
      and expenses incident to the negotiation, preparation and execution of this
      Agreement and related documentation.

    

    Section
      9.4 Expenses.
      The
      parties shall each bear their own respective expenses incurred in connection
      with this Agreement and the contemplated Merger.

    

    Section
      9.5 Liquidated
      Damages.
      The
      parties hereby agree that upon receipt of Termination Notice, the Terminated
      Party shall be entitled to purchase, and the Terminating Party shall be required
      to sell to the Terminated Party, 20% of the outstanding equity of the
      Terminating Party for $1.00. The parties further hereby agree that said purchase
      is fair and equitable since the damages caused by the Terminating Party are
      difficult to ascertain. 

    

    ARTICLE
      X

    INDEMNIFICATION;
      SURVIVAL

    

    Section
      10.1 Indemnification
      by Parent.
      The
      Parent shall indemnify and hold harmless the Company and its Affiliates,
      officers, directors, stockholders, employees and agents and the successors
      and
      assigns of all of them (the “Company
      Indemnified Parties”),
      and
      shall reimburse the Company Indemnified Parties for, any loss, liability, claim,
      damage, expense (including, but not limited to, costs of investigation and
      defense and attorneys’ fees) (collectively, “Damages”),
      arising from or in connection with (a) any inaccuracy or breach of any of the
      representations and warranties of Parent and/or Acquisition Corp. in this
      Agreement or in any certificate or document delivered by or on behalf of Parent
      pursuant to this Agreement, or any actions, omissions or statements of fact
      inconsistent with in any respect any such representation or warranty, (b) any
      inaccuracy, misstatement, or omission in any disclosures documents made
      available to or filed by Parent with the SEC, (c) any failure by Parent to
      perform or comply with any agreement, covenant or obligation in this Agreement
      or in any certificate or document delivered by or on behalf of Parent pursuant
      to this Agreement to be performed by or complied with by or on behalf of Parent,
      (d) any claims made by a third Person against a Company Indemnified Party based
      upon a Contractual obligation of Parent and/or Acquisition Corp. for services
      performed prior to the Effective Time, (e) any claims made at any time arising
      out of, or in connection with, any Environmental Laws or environmental
      conditions which are based upon conditions existing prior to the Effective
      Time,
      (f) Taxes attributable to the ownership of Parent prior to the Effective Time,
      (g) Taxes attributable to the conduct by Parent of the business of Parent and/or
      Acquisition Corp. or the operation or ownership of its assets, (h) any claims
      for severance or any other compensation made by an Employees or Former Employee,
      (i) any claim made at any time by any Governmental Authority in respect of
      the
      business of Parent for all periods prior to the Effective Time, (j) any
      Liability or obligation of Parent arising or relating to the periods prior
      to
      the Effective Time or (k) any Action or investigation by any Person relating
      to
      or arising out of the business or operations of Parent prior to the Effective
      Time. 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Section
      10.2 Survival.
      All
      representations, warranties, covenants and agreements of the parties contained
      herein or in any other certificate or document delivered pursuant hereto shall
      survive the Closing until the expiration of the applicable statute of
      limitations. 

    

    ARTICLE
      XI

    MISCELLANEOUS

    

    Section
      11.1  Notices.
      All
      notices or other communications required or permitted hereunder shall be in
      writing. Any notice, request, demand, claim or other communication hereunder
      shall be deemed duly given (a) if by personal delivery, when so delivered,
      (b)
      if mailed, three (3) Business Days after having been sent by registered or
      certified mail, return receipt requested, postage prepaid and addressed to
      the
      intended recipient as set forth below, or (c) if sent through an overnight
      delivery service in circumstances to which such service guarantees next day
      delivery, the day following being so sent:

    

    
      	 	(1)	
              If
                to Parent:

            

    

    

    Powersafe
      Technologies, Inc.

    c/o
      David
      Lubin & Associates, PLLC

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 1152

    Attn:
      David Lubin, Esq.

     

    
      	 	(2)	
              If
                to the Company:

            

    

    

    Amplification
      Technologies, Inc.

    1400
      Coney Island Avenue

    Brooklyn,
      NY 11230

    Attn:
      Jack Mayer

    

    Any
      party
      may change the address to which notices and other communications hereunder
      are
      to be delivered by giving the other parties notice in the manner herein set
      forth.

    

    Section
      11.2 Choice
      of Law.
      This
      Agreement shall be governed, construed and enforced in accordance with the
      laws
      of the State of New York, without giving effect to principles of conflicts
      of
      law.

    

    Section
      11.3 Jurisdiction.
      The
      parties hereby irrevocably consent to the in personam jurisdiction of the state
      or federal courts located in the State of New York, in connection with any
      action or proceeding arising out of or relating to this Agreement or the
      transactions and the relationships established thereunder. The parties hereby
      agree that such courts shall be the venue and exclusive and proper forum in
      which to adjudicate such matters and that they will not contest or challenge
      the
      jurisdiction or venue of these courts.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Section
      11.4 Applicable
      Law; Arbitration; Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without giving effect to conflicts of law principles. Any
      dispute between or, action or proceeding against any of the parties hereto
      under, arising out of or in any manner relating to, this Agreement and the
      transactions contemplated herein shall be submitted to and adjudicated by
      binding arbitration in a Rabbinical Court in Brooklyn, New York under the
      principal of ZABLU (whereby each party picks one arbitrator and the two selected
      arbitrators pick a third arbitrator). If there is any litigation regarding
      the
      arbitration or otherwise relating to this Section 11.4, the parties hereto
      irrevocably consent to the jurisdiction of the courts of the State of New York
      and of any federal court located in such State in connection with any action
      or
      proceeding arising out of or relating to this Agreement, any document or
      instrument delivered pursuant to, in connection with or simultaneously with
      this
      Agreement, or a breach of this Agreement or any such document or instrument.
      In
      any such action or proceeding, each party hereto waives personal service of
      any
      summons, complaint or other process and agrees that service thereof may be
      made
      in accordance with Section 11.1. Within 30 days after such service, or such
      other time as may be mutually agreed upon in writing by the attorneys for the
      parties to such action or proceeding, the party so served shall appear or answer
      such summons, complaint or other process. EACH
      PARTY HERETO WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING
      OUT
      OF THIS AGREEMENT OR ANY BREACH OR ALLEGED BREACH HEREOF.

    

    Section
      11.5 Entire
      Agreement.
      This
      Agreement and such other agreements related to this transaction executed
      simultaneously herewith set forth the entire agreement and understanding of
      the
      parties in respect of the transactions contemplated hereby and supersedes all
      prior agreements, arrangements and understandings of the parties relating to
      the
      subject matter hereof. No representation, promise, inducement, waiver of rights,
      agreement or statement of intention has been made by any of the parties which
      is
      not expressly embodied in this Agreement, such other agreements, notes or
      instruments related to this transaction executed simultaneously herewith, or
      the
      written statements, certificates, schedules or other documents delivered
      pursuant to this Agreement or in connection with the transactions contemplated
      hereby. 

    

    Section
      11.6 Assignment.
      Each
      party's rights and obligations under this Agreement shall not be assigned or
      delegated, by operation of law or otherwise, without the other party's prior
      consent, and any such assignment or attempted assignment shall be void, of
      no
      force or effect, and shall constitute a material default by such party.

    

    Section
      11.7 Amendments.
      This
      Agreement may be amended, modified, superseded or cancelled, and any of the
      terms, covenants, representations, warranties or conditions hereof may be
      waived, only by a written instrument executed by Parent and the Company or
      a
      majority of the Stockholders, in the case of a waiver, by the party waiving
      compliance.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Section
      11.8 Waivers.
      The
      failure of any party at any time or times to require performance of any
      provision hereof shall in no manner affect the right at a later time to enforce
      the same. No waiver by any party of any condition, or the breach of any term,
      covenant, representation or warranty contained in this Agreement, whether by
      conduct or otherwise, in any one or more instances shall be deemed to be or
      construed as a further or continuing waiver of any such condition or breach
      or a
      waiver of any other term, covenant, representation or warranty of this
      Agreement.

    

    Section
      11.9 Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts and by
      facsimile, each of which shall be deemed an original, but all of which together
      shall constitute one and the same instrument.

    

    Section
      11.10  Brokers.
      The
      parties hereto, covenant, represent, and warrant that they have not dealt with
      any broker or finder in connection with this Agreement or the transactions
      contemplated hereby, and no broker is entitled to receive any brokerage
      commission, finder's fee, or similar compensation in connection with this
      Agreement or the transactions contemplated hereby. Each of the parties shall
      indemnify and hold the other parties harmless from and against all liability,
      claim, loss, damage, or expense, including reasonable attorney's fees,
      pertaining to any broker, finder, or other person with whom such party has
      dealt.

    

    Section
      11.11 Severability. 
      If any
      term, provisions, covenant or restriction of this Agreement is held by a court
      of competent jurisdiction or other authority to be invalid, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions of this Agreement shall remain in full force and effect and shall
      in no way be affected, impaired or invalidated so long as the economic or legal
      substance of the transactions contemplated hereby is not affected in any manner
      materially adverse to any party. Upon such determination, the parties shall
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the parties as closely as possible in an acceptable manner in order
      that the transactions contemplated hereby be consummated as originally
      contemplated to the fullest extent possible. 

    

    Section
      11.12  Interpretation.
      The
      parties agree that this Agreement shall be deemed to have been jointly and
      equally drafted by them, and that the provisions of this Agreement therefore
      shall not be construed against a party or parties on the ground that such party
      or parties drafted or was more responsible for the drafting of any such
      provision(s). The parties further agree that they have each carefully read
      the
      terms and conditions of this Agreement, that they know and understand the
      contents and effect of this Agreement and that the legal effect of this
      Agreement has been fully explained to its satisfaction by counsel of its own
      choosing.

     

    [Remainder
      of Page Intentionally Omitted; Signature Pages to Follow]

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
              POWERSAFE
                TECHNOLOGY CORP.

            
	 
	
              By:

            	
              /s/
                Jack Mayer

            
	
              Name:
                Jack Mayer

            
	
              Title:   President

            

    

     

    
      	
              POWERSAFE
                ACQUISITION CORP.

            
	 
	
              By:

            	
              /s/
                Jack Mayer

            
	
              Name:
                Jack Mayer

            
	
              Title:   President

            

    

     

    
      	
              AMPLIFICATION
                TECHNOLOGIES, INC.

            
	 
	
              By:

            	
              /s/
                Jack Mayer

            
	
              Name:
                Jack Mayer

            
	
              Title:   Executive
                Chairman

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    SCHEDULES

    TO
      

    MERGER
      AGREEMENT

    Dated

    March
      31,
      2008

    by
      and
      among 

    POWERSAFE
      TECHNOLOGY CORP. 

    POWERSAFE
      ACQUISITION CORP.

    And
      

    AMPLIFICATION
      TECHNOLOGIES, INC.

    

    Schedule
      4.08

    Leased
      Real Property 

    

    Lease
      for
      1400 Coney Island Avenue, Brooklyn, NY

    

    Schedule
      4.4

    Company’s
      Required Non-Governmental Consents 

    

    Written
      consent of the director of the Company and written consent of the holders of
      the
      majority of the issued and outstanding capital stock of the Company

    

    Schedule
      4.8

    Properties
      and Assets of Parent

     

    Patent
      Sale and Transfer Agreement, dated March 26, 2007, between the Company and
      Leonard Liner.

    

    Schedule
      4.11(c)

    Parent
      Intellectual Property

     

    
      	 	
              United
                States Patent number: 5,708,554, titled a
                power outlet box with special protection logic,
                including: all computer programs, technical, engineering and manufacturing
                information, know 

            

    

    

    Schedule
      4.11(e)(i)

    Parent
      Intellectual Property licensed or transferred to any Person

    

    None

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      4.11(e)(ii)

    Intellectual
      Property licensed or transferred to Parent

    

    Patent
      Sale and Transfer Agreement, dated March 26, 2007, between the Company and
      Leonard Liner relating to United States Patent number: 5,708,554.

    

    Schedule
      4.14

    Contracts

    

    See
      Schedule 4.11(e)(ii)

    

    Schedule
      5.4

    Non
      Governmental Consents and Approvals Required by Acquisition
      Corp.

    

    
      	1.	
              Joint
                Written Consent of the Sole Director and the Sole Shareholder of
                Acquisition Corp.

            

    

    

    Exhibit
      A

    Certificate
      of Merger

    

    Exhibit
      B

    Certificate
      of Incorporation of Surviving Corporation

    

    Exhibit
      C

    Bylaws
      of Surviving Corporation

    

    Exhibit
      D

    

    Information
      Memorandum of the Company

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    CONFIDENTIAL

    

    
      	
              Name
                of recipient:

            
	 
	
              Number:

            

    

     

    
      

    

    AMPLIFICATION TECHNOLOGIES,
      INC.

    
      
      

    

    
      
 

    

     

    INFORMATION
      MEMORANDUM

    Subject
      to correction and completion

     

    March
      13, 2008

    

    As
      Amended

    

    Contact:

    Amplification
      Technologies, Inc.

    1400
      Coney Island Avenue, Brooklyn, NY 11230

    (718)
      951-8021 (phone)     (718) 951-8030 (fax)

    www.amplificationtechnologies.com

     

    Jack
      N.
      Mayer

    (917)
      733-5041 (mobile) 

    Mayer@amplificationtechnologies.com
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONFIDENTIAL
      INFORMATION MEMORANDUM

    

    AMPLIFICATION
      TECHNOLOGIES, INC.

    (a
      Delaware corporation)

    

    

    3D
      field
      profile for a photodetector based on internal discrete
      amplification

     

    All
      persons who receive this Confidential Information Memorandum (“Memorandum”)
      agree that they will hold the contents of this Memorandum and all enclosures
      and
      related documents in the strictest confidence. Recipients of this Memorandum
      agree that they will not copy, reproduce or distribute to others this Memorandum
      or enclosures or related documents in whole or in part, or utilize the contents
      hereof for any other purpose other than to evaluate the operations of
      Amplification Technologies, Inc., and will return this Memorandum at the request
      of Amplification Technologies, Inc.

    
      
        
          
          

        

        
          
          

          
            

          

          
            	
                    

                  	
                    PAGE
                      2

                  	
                    CONFIDENTIAL

                  

          

        

        
          
          

        

      

    

     

    THIS
      MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER
      TO BUY, WITH RESPECT TO ANY SECURITIES BY ANY PERSON IN ANY JURISDICTION.

    

    THE
      COMPANY’S SECURITIES HAVE NOT BEEN REGISTERED WITH OR APPROVED BY THE SECURITIES
      AND EXCHANGE COMMISSION OR ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE.
      ANY
      REPRESENTATION TO THE CONTRARY IS UNLAWFUL. 

    

    THIS
      MEMORANDUM INCLUDES CERTAIN STATEMENTS, ESTIMATES AND PROJECTIONS PROVIDED
      BY
      AMPLIFICATION WITH RESPECT TO THE OPERATIONS OF AMPLIFICATION AND OTHER FORWARD
      LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT
      OF
      1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS
      AMENDED. THESE
      STATEMENTS RELATE TO FUTURE EVENTS OR THE COMPANY'S FUTURE FINANCIAL
      PERFORMANCE, AND ARE IDENTIFIED BY WORDS SUCH AS "MAY," "WILL," "SHOULD,"
      "EXPECT," "SCHEDULED," "PLAN," "INTEND," "ANTICIPATE," "BELIEVE," "ESTIMATE,"
      "POTENTIAL," OR "CONTINUE" OR THE NEGATIVE OF SUCH TERMS OR OTHER SIMILAR WORDS.
      YOU SHOULD READ THESE STATEMENTS CAREFULLY BECAUSE THEY DISCUSS THE COMPANY'S
      FUTURE EXPECTATIONS, AND THE COMPANY BELIEVES THAT IT IS IMPORTANT TO
      COMMUNICATE THESE EXPECTATIONS TO INVESTORS. HOWEVER, THESE STATEMENTS ARE
      ONLY
      PREDICTIONS. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY. IN EVALUATING
      THESE
      STATEMENTS, YOU SHOULD SPECIFICALLY CONSIDER VARIOUS FACTORS, INCLUDING THE
      FACTORS DISCUSSED UNDER "RISK FACTORS.”

    

    THESE
      FORWARD-LOOKING STATEMENTS ARE BASED ON ASSUMPTIONS AND OPINIONS CONCERNING
      A
      VARIETY OF KNOWN AND UNKNOWN RISKS. THE EXPECTATIONS OF AMPLIFICATION TO REALIZE
      WHAT IT BELIEVES TO BE THE OPPORTUNITIES CREATED BY ITS NEW TECHNOLOGY ARE
      BASED
      ON THE VIEWS OF ITS MANAGEMENT AND SCIENTISTS RATHER THAN ON INDEPENDENT
      RESEARCH OR STUDIES. THE STATEMENTS, ESTIMATES AND PROJECTIONS MADE HEREIN
      REFLECT VARIOUS ASSUMPTIONS MADE BY AMPLIFICATION BASED UPON INFORMATION THOUGHT
      TO BE BELIEVABLE AT THE TIME AND ITS OWN PROJECTIONS OF HOW AMPLIFICATION MIGHT
      CAPITALIZE ON THE OPPORTUNITIES IT BELIEVES ARE AVAILABLE, WHICH MAY OR MAY
      NOT
      PROVE TO BE ACCURATE OR CORRECT. ACTUAL RESULTS OF AMPLIFICATION ARE SUBJECT
      TO
      SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES AND CONTINGENCIES,
      MANY OF WHICH ARE BEYOND THE CONTROL OF AMPLIFICATION. ACCORDINGLY, THERE CAN
      BE
      NO ASSURANCE THAT SUCH STATEMENTS, ESTIMATES AND PROJECTIONS WILL BE REALIZED.
      THE FORECAST AND ACTUAL RESULTS WILL LIKELY VARY, AND THOSE VARIATIONS MAY
      BE
      MATERIAL. AMPLIFICATION IS UNDER NO OBLIGATION TO (AND EXPRESSLY DISCLAIMS
      ANY
      OBLIGATION TO) UPDATE OR ALTER THIS MEMORANDUM AND THE FORWARD LOOKING
      STATEMENTS CONTAINED HEREIN WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
      EVENTS OR OTHERWISE. AMPLIFICATION MAKES NO REPRESENTATIONS AS TO THE ACCURACY
      OR COMPLETENESS OF SUCH STATEMENTS, ESTIMATES AND PROJECTIONS OR REPRESENTS
      THAT
      ANY FORECASTS WILL BE ACHIEVED. 

    

    BY
      ACCEPTING THISMEMORANDUM, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT (i) ALL
      OF
      THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL INFORMATION; (ii) THE RECIPIENT
      WILL NOT DISTRIBUTE OR REPRODUCE THIS MEMORANDUM, IN WHOLE OR IN PART; (iii)
      THE
      RECIPIENT WILL NOT USE THIS MEMORANDUM, OR ANY INFORMATION CONTAINED HEREIN,
      FOR
      ANY PURPOSE OTHER THAN THE EVALUATION OF AMPLIFICATION; (iv) IF THE RECIPIENT
      DOES NOT WISH TO PURSUE THIS MATTER, OR AT THE REQUEST OF AMPLIFICATION, THE
      RECIPIENT WILL RETURN THIS MEMORANDUM TO AMPLIFICATION AS SOON AS PRACTICABLE,
      TOGETHER WITH ANY OTHER MATERIAL RELATING TO AMPLIFICATION WHICH THE RECIPIENT
      MAY HAVE RECEIVED FROM AMPLIFICATION; AND (v) ANY PROPOSED ACTIONS BY THE
      RECIPIENT WHICH MAY BE INCONSISTENT IN ANY RESPECT WITH THE FOREGOING WILL
      REQUIRE THE PRIOR WRITTEN CONSENT OF AMPLIFICATION. 

     

    
      
        
        

      

      
        
        

        
          

        

        
          	
                  

                	
                  PAGE
                    3

                	
                  CONFIDENTIAL

                

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    

    
      	
              Executive
                Summary

            	 	 	
              5

            	 
	 	 	 	 	 
	
              Overview

            	 	 	
              7

            	 
	 	 	 	 	 
	
              Technology
                Advantages

            	 	 	
              8

            	 
	 	 	 	 	 
	
              Market
                Opportunity

            	 	 	
              9

            	 
	 	 	 	 	 
	
              Technology
                Developement

            	 	 	
              10

            	 
	
              Photodetectors
                with discrete amplification

            	 	 	
              11

            	 
	
              Principle
                of discrete amplification

            	 	 	
              11

            	 
	
              Photodetector
                Design and Modeling

            	 	 	
              12

            	 
	 	 	 	 	 
	
              Intellectual
                Property

            	 	 	
              13

            	 
	 	 	 	 	 
	
              Products
                and Markets

            	 	 	
              14

            	 
	 	 	 	 	 
	
              Applications
                of the Technology

            	 	 	
              14

            	 
	 	 	 	 	 
	
              Strategy
                and Implementation

            	 	 	
              16

            	 
	 	 	 	 	 
	
              Product
                development strategy

            	 	 	
              17

            	 
	 	 	 	 	 
	
              Pricing

            	 	 	
              18

            	 
	 	 	 	 	 
	
              Competitive
                Landscape

            	 	 	
              19

            	 
	 	 	 	 	 
	
              CompetItive
                Advantages

            	 	 	
              19

            	 
	 	 	 	 	 
	
              Competitors

            	 	 	
              19

            	 
	 	 	 	 	 
	
              Competing
                semiconductor technologies

            	 	 	
              20

            	 
	 	 	 	 	 
	
              Personnel

            	 	 	
              22

            	 
	 	 	 	 	 
	
              Management
                Team

            	 	 	
              22

            	 
	 	 	 	 	 
	
              Financial
                projections

            	 	 	
              24

            	 
	 	 	 	 	 
	
              Corporate
                Information

            	 	 	
              24

            	 
	 	 	 	 	 
	
              Additional
                Technical Information

            	 	 	
              27

            	 
	 	 	 	 	 
	
              Risk
                Factors

            	 	 	
              28

            	 

    

     

    
      
        
          
          

        

        
          
          

          
            

          

          
            	
                    

                  	
                    PAGE
                      4

                  	
                    CONFIDENTIAL

                  

          

        

        
          
          

        

      

    

     

     EXECUTIVE
      SUMMARY

     

    The
      introduction of solid state devices has revolutionized technology. One of the
      few areas which have not gone largely solid state is highly sensitive
      photodetection. Sensitive photodetectors are essential components of numerous
      commercial products. Amplification Technologies, Inc. has invented an extremely
      sensitive photodetector technology that has significant performance and cost
      advantages over traditional technology and is positioned as the next generation
      solid state technology for low level light detection. The Company’s platform
      semiconductor technology, which allows the amplification with very low noise
      of
      weak signals, is applicable to, and has been patented to encompass, detection
      of
      signals other than light, and can in principle be used to create biological,
      radiological, electrical, and chemical sensors. This new semiconductor
      technology has the potential to transform a multitude of industries, from
      medical diagnostics and drug development to telecommunications and defense.
      

    

    Amplification
      Technologies is currently introducing its first products to the market and
      expects them to be available for commercial sale towards the end of 2008. The
      Company believes that the ultimate market addressed by its products is in the
      multi-billion dollar range.

    

    The
      Company has received government grants and has sold products to NASA/JPL and
      NIST for research applications. 

    

    The
      Company predecessor was formed in 2000. Approximately $6.5 million has been
      invested in the Company to date. The Company has no funded debt.

    

    Market
      Opportunity

    
      	
              Amplification
                Technologies, Inc. is initially targeting the existing market for
                sensitive photo-detectors (photomultiplier tubes and avalanche
                photodiodes). Within this market, developing a detector chip for
                PET
                medical imaging systems is one of the priorities for the Company
                due to
                the large cost of detectors in such systems. A prototype of such
                a chip
                has already been produced. The world’s leading PET system manufacturers
                are seeking solid state solutions to
                replace photomultiplier tubes in the next generation of scanners.
                The
                Company has commenced preliminary testing of prototypes with one
                of those
                manufacturers.

            	
              

            

    

     

    The
      Company anticipates that its earliest sales will be to the scientific market.
      Homeland
      security is
      another key market. The Company expects that the availability of its detectors
      will expand existing markets and create new ones. Ultimately, the Company
      estimates an overall addressable market in the multi-billion dollar range.
      

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
                      PAGE
                        5

                    	
                      CONFIDENTIAL

                    

            

          

           

        

      

    

    Intellectual
      Property

    
      	
              The
                Company fully owns its intellectual property. In April 2005 the Company
                was issued its cornerstone patent, United States Patent # 6,885,827
                titled
                “High sensitivity, high resolution detection of signals.” Another patent,
                US #7,085,502, was granted in August 2006. The Company has filed
                one more
                patent application and plans to file additional patent applications
                to
                further protect its intellectual property. International patent
                applications have been filed as well.

            	
              

            

    

     

    
      	 	Validation  
	
              

            	
              In
                2004, 2005, and 2006, the Company made presentations at the
                Optoelectronics International Symposium and published papers on the
                technology in SPIE Proceedings. In 2008, the Company made a presentation
                at the SPIE Medical Imaging conference. At all the conferences, the
                technology generated very strong interest. The Company has been awarded
                three US Government SBIR grants:

            

    

     

    
      	
            	·	
              NASA
                grant - “High Sensitivity Photon Counting Detectors for Deep Space Optical
                Communications” (January 2004 and October
                2005)

            

    

    
      	
            	·	
              Department
                of Energy grant - "UV-Sensitive Solid State Photodetector for Dark
                Matter
                Detection Using Liquid Xenon" (June
                2005)

            

    

    
      	
            	·	
              Department
                of Energy grant - "Novel Solid State Photodetector to Enable Future
                Scintillating Fiber Detection Experiments" (June
                2005)

            

    

    

    Team

    The
      Company’s management is led by President and COO R.
      S.
      Krishnaswamy
      who
      brings to the Company very extensive business development experience (MRC,
      Veeco, Agave). The company’s scientific team is headed by its two founding
      scientists, Dr. V.E. Shubin and Dmitry Shushakov, who have done pioneering
      work
      in, and are world leading experts in, the field of sensors and photo-detectors.
      The Company employs 9 PhDs.

    

    Financial
      Projections

    The
      Company estimates that over a 5 year period the Company will reach a run rate
      of
      $80+ million per annum in revenue and of $30+ million per annum, in pre tax
      net
      income with substantial growth thereafter, that it will attain some revenue
      from
      sales by late ’08/early ‘09 and profitability in 2011, that it will continue to
      obtain grant revenue in ’08 and beyond, and that after the date of this
      Memorandum, it will require additional equity financing of about $4 million
      in
’08, about $6 million in each of ’09 and ’10 and additional equity financing in
‘11.

     

    Please
      see page 26 for additional information.

    
      
         

        
          
            
              
              

            

            
              
              

              
                

              

              
                	
                        

                      	
                        PAGE
                          6

                      	
                        CONFIDENTIAL

                      

              

            

            
            

          

        

      

       

      OVERVIEW 

    

     

    Amplification
      Technologies, Inc. has invented an extremely sensitive photodetector that is
      less expensive to produce than, and has many performance advantages over,
      classic devices. Much as the microchip revolutionized electronics, this new
      semiconductor technology has the potential to transform a multitude of
      industries, from medical diagnostics and drug development to telecommunications
      and defense. Amplification Technologies is currently introducing its first
      products to the market and expects them to be available for commercial sale
      later in 2008. The Company believes that the ultimate market addressed by its
      products is in the multi-billion dollar range. Several commercial companies
      have
      already expressed an interest in the technology. 

     

    The
      Company has already produced prototypes that exhibit superior characteristics.
      Initially, all of the Company’s manufacturing was done in Russian semiconductor
      facilities. These have been largely adequate for research purposes and the
      Company has recently produced a product that it is using for initial marketing.
      Commercial quality product will need to be manufactured in the US, which the
      Company expects will facilitate the resolution of certain technical issues.
      The
      Company has just completed an initial fabrication run with Sarnoff, a high
      quality US fab and is awaiting test results over the coming weeks. Results
      from
      preliminary tests of a very limited number of chips have been very encouraging,
      with the chips exhibiting certain primary parameters,
      including photodetection efficiency, gain and dark count
      rate, generally matching those of the photodetectors previously produced in
      Russia. While devices previously produced in Russia that ultimately performed
      acceptably exhibited certain initial degradation of performance within a few
      hours of operation, we have not observed any such instability (reliability)
      issues in the US devices over a 12 hour period. The
      Company expects that a 2nd or 3rd run at Sarnoff will produce commercial quality
      chips, and expects to have generic, commercial quality, reliable, fully tested
      chips and modules available towards the end of 2008. Specific applications
      will
      likely require future optimization/customization.

    

    In
      November 2004 NASA announced that it awarded the Company a grant to develop
      an
      extremely sensitive photo-detector for optical communications. In 2005, NASA
      awarded the Company Phase II of the same grant based on the successful
      completion of the Phase I work. The work on this grant is continuing and is
      expected to be successfully completed by mid ‘08. The critical objective of the
      work is demonstrating that the Company’s technology can be implemented on
      InGaAs, not only on silicon.  The preliminary results we just received are
      very encouraging.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
                      PAGE
                        7

                    	
                      CONFIDENTIAL

                    

            

          

          
          

        

      

    

     

    As
      described in the “Competition” section below, there has recently been a fair
      amount of interest and commercial activity seeking to introduce new solid state
      products into the field of low-level light detection. The new devices of
      competitors are based fundamentally on unpatented technology that has been
      in
      the public domain for many years. The Company believes that these products
      have
      yet to achieve significant commercial penetration. As set forth and qualified
      below, the Company believes its patented technology to be the next generation
      in
      the field, significantly superior to, and more flexible than, other solid state
      technologies. The advantages of the Company’s devices over these competing
      devices are set forth and qualified in the “Competition” section below.
      Statements about and comparisons with existing technology in other sections
      of
      this Memorandum, unless otherwise specified, refer to classical existing
      technologies. The Company believes that its technology will, over a period
      of
      years, become the dominant one in its field. 

     

    A
      photodetector’s ability to discriminate between signal and noise is a critical
      parameter that differentiates various technologies. The most sensitive
      photodetectors can detect very low levels of light, even a single photon -
      the
      smallest unit of light. Applications that need high sensitivity require devices
      that do not give false readings and have low noise. Medical scanners,
homeland
      security
      and
      communications are some areas where this quality is critical. In that respect,
      as well as in other measures of performance, the Company’s detector has
      qualities significantly superior to those of existing solutions. In many
      applications this results in a multiplicative increase in detector sensitivity
      The increase in sensitivity, coupled with the detector’s low cost and simplicity
      of design, will drive adoption of this new technology in products requiring very
      low light level detection and also allow the Company to enter new markets where
      competitive technologies have proven either too expensive or
      inadequate.

     

    
      TECHNOLOGY
        ADVANTAGES 

    

     

    Photomultiplier
      tubes (PMTs), vacuum tube based devices, have provided the primary technological
      solution for highly sensitive light detection in numerous applications for
      over
      half a century. Semiconductor alternatives such as avalanche photodiodes (APDs)
      have never been able to achieve performance parameters comparable to those
      of
      PMTs and other vacuum devices in most settings.

    

    The
      Company’s proprietary technology allows the creation of a semiconductor-based
      sensitive photo-detector that has performance parameters similar to those of
      a
      PMT but with all of the advantages of a solid state device. It enables the
      creation of detectors, amplifiers and other microelectronic components with
      the
      following characteristics:

    

    
      	
            	§	
              very
                high sensitivity and amplification
                gain

            

    

    
      	
            	§	
              low
                cost

            

      	 	
              § 

            	exceptionally
              low internal noise

    

     

    
      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
                      PAGE
                        8

                    	
                      CONFIDENTIAL

                    

            

          

           

        

      

    

    
      	
            	§	
              all
                solid state (no vacuum tubes)

            

    

    
      	
            	§	
              small
                size, rugged, portable, able to withstand magnetic
                fields

            

    

    
      	
            	§	
              low
                power consumption

            

    

    
      	
            	§	
              high
                level of reproducibility

            

    

    
      	
            	§	
              easy
                to manufacture

            

    

    
      	
            	§	
              mass
                production capability

            

    

    
      	
            	§	
              ease
                of integration with other electronic
                devices

            

    

    

    In
      addition to enabling the replacement of current sensitive photo-detector devices
      and components, these characteristics should allow the technology to become
      a
      platform for the creation of numerous new detectors, amplifiers, and
      microelectronic components. The technology is broadly applicable, and is not
      restricted to the amplification of signals generated by light. It affords
      substantial technological advantages across a broad range of significant
      markets.

     

    
      MARKET
        OPPORTUNITY 

    

     

    Amplification
      Technologies, Inc. will target

    

    
      	 	
              §

            	
              the
                existing photo-detector market for PMTs and APDs
                and

            

    

    
      	 	
              §

            	
              the
                markets for sensor devices that will be created to take advantage
                of the
                benefits of the detectors developed by the
                company.

            

    

    

    The
      Company expects to establish the dominant position in the existing market for
      highly sensitive photo-detectors, which is estimated to be in excess of $250
      million and growing. The Company believes that the introduction of its
      technology will accelerate the growth of that market. The Company believes
      that
      the size of the markets for sensor devices generally that are amenable to the
      introduction of its technology, is several
      billion
      dollars

    

    Potential
      applications of the technology include

     

    
      	
            	§	
              Nuclear
                Medicine (photodetectors for PET scanners, gamma cameras,
                etc.)

            

    

    
      	
            	§	
              Advanced
                Scientific Instrumentation

            

    

    
      	
            	§	
              Homeland
                Security

            

    

    
      	
            	§	
              Advanced
                Scientific Instrumentation

            

    

    
      	
            	§	
              Chemical
                Sensors

            

    

    
      	
            	§	
              Radiation
                Detectors

            

    

    
      	
            	§	
              Multifunction
                Sensors such as ‘Lab on a Chip’ 

            

    

    
      	
            	§	
              Environmental
                Monitoring (LIDAR)

            

    

    
      	
            	§	
              Communications

            

    

     

    
      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    Specific
      devices for each of these applications require customization of specific
      characteristics (wavelength sensitivity, amplification, etc.).

     

    The
      Company has developed a solid-state photomultiplier for photon counting for
      which there is an immediate use, primarily in biological applications. The
      Company is developing a photo-detector that could replace PMTs in positron
      emission tomography (PET) scanners. The Company hopes to work with OEMs in
      various industries to develop specialized sensors for their needs.

    

    While
      initially our R&D work produced designs that were focused on specific
      wavelengths, in a major development, we have come up with a chip design that
      has
      very desirable operating characteristics across a relatively broad spectrum
      of
      wavelengths of light, including the ones that are most critical to PET scanner
      manufacturers. The Company’s near term work will focus on continuing the
      transfer of its current designs to the US, making necessary modifications,
      and
      successfully manufacturing chips in the US. Future development includes
      optimizing the technology generally, as well as specifically for various
      applications, extending the technology from silicon to other semiconductor
      materials, primarily InGaAs, and creating various physical configurations such
      as linear and two-dimensional arrays. 

     

    
      TECHNOLOGY
        DEVELOPEMENT

    

     

    The
      Company has developed and successfully tested its core technology - discrete
      amplification of signals. It is currently engaged in research and development
      needed to commercialize as well as further develop this technology. It has
      designed products based on the technology, and these products are in the process
      of commercialization. 

    

    Detection
      of low levels of light involves:

     

    
      	 	
              (a)

            	
              the
                process of photons generating electrons and

            

    

    
      	 	
              (b)

            	
              the
                subsequent amplification (multiplication) of these
                electrons.

            

    

     

    The
      result is an electrical signal that can be measured by electronic equipment.
      While the Company’s invention concerns both of these parts of the photodetection
      process, the primary innovation is in the way electron amplification is
      conducted. The Company’s technology permits a very high degree of signal
      amplification without introducing appreciable distortion (noise). The foundation
      of the technology is a new principle of independent amplification of each of
      the
      electrons that comprise a signal, transformation (amplification) of each such
      electron into a charge packet, and subsequent registration of these charge
      packets. The amplification is done using the process of controlled avalanche
      that allows the attainment of high levels of amplification without adding any
      significant noise to the signal. 

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    This
      technology is broadly applicable and is not restricted to the amplification
      of
      signals generated by light. Accordingly, the Company believes that its
      technology can be used for creating chemical, biological and other types of
      sensors, and affords the Company potential access to a broad range of
      significant markets. The technology is universal in that it can be realized
      on a
      wide range of semiconductor materials and integrated into numerous semiconductor
      sensors, transducers, and detectors. Further, the technology requires only
      standard technological and fabrication processes of semiconductor electronics.
      These processes have high yield, thus creating the potential for mass
      manufacturing of low-cost devices. 

    

    Jet
      Propulsion Lab (NASA) has purchased and tested a photodetector prototype
      produced by the Company and confirmed its key performance characteristics.
      In
      April 2005, the US Department of Energy awarded two research and development
      grants to the Company for the development of highly sensitive photodetectors
      for
      specialized applications. In November 2004, in recognition of the unique
      potential of this technology, the Company was awarded a research and development
      grant from NASA to develop a highly sensitive photodetector on InGaAs for
      optical communications. Based on the successful completion of Phase I of this
      grant, NASA made a Phase II award to the Company in 2005. The Company expects
      to
      successfully complete Phase II in mid ‘08.

    

    In
      2004,
      2005, and 2006, the Company made presentations at the Optoelectronics
      International Symposium and published papers on the technology in SPIE
      Proceedings. In 2008, the Company made a presentation at the SPIE Medical
      Imaging conference. At all the conferences, the technology generated very strong
      interest. 

     

    PHOTODETECTORS
      WITH DISCRETE AMPLIFICATION 

     

    The
      unique combination of high gain, high speed and extremely low noise allows
      one
      to use discrete amplification to develop photodetectors capable of both photon
      counting and analog detection. These detectors have single photon level
      sensitivity. It enables the creation of devices that can measure the amplitude
      of light pulses with unprecedented accuracy in analog mode, and count the number
      of individual photons at a low light intensity. 

    

    Besides
      the substantial advantages arising from being solid-state, the photodetectors
      have other advantages over PMTs. Due to the lower noise factor, and potentially
      significantly higher quantum efficiency, they have much better threshold
      sensitivity, which is limited only by the statistics of the optical signal
      itself.

     

    
      PRINCIPLE
        OF DISCRETE AMPLIFICATION

    

     

    The
      Company’s technology is based on the discrete amplification of signals that
      forms the foundation of the Company’s cornerstone patent.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    When
      applied to photodetection, the discrete amplification works in the following
      way. At the first stage, the electric signal (photoelectrons generated in the
      photo conversion process) to be amplified is spatially divided into N equal
      charge components (in this case elementary charges - electrons or holes). Each
      individual elementary charge is directed into an individual channel of a
      multichannel threshold amplifier with the number of channels K > N. In each
      channel of the threshold amplifier the elementary charge is then amplified
      by a
      factor of M (gain) so that at the output of each individual amplification
      channel we have a charge packet of M elementary charges. Gain M is made the
      same
      for all channels by introducing a special threshold element that switches off
      the amplification process after a required number of elementary charges M has
      been accumulated in the charge packet. This way the charge packets at the
      multi-channel amplifier are calibrated. Finally, all charge packets are
      aggregated (summed up) into a single amplified output signal containing M x
      N
      elementary charges. This output signal is large enough to be recorded by
      standard electronic equipment. The discretization of the input signal into
      equal
      charge components, and subsequent calibration of a charge package in each
      channel of the threshold amplifier, results in little variation in the gain
      levels of each charge package. As the noise factor results from the degree
      of
      variation in these gain levels, it is possible to attain an extremely low noise
      factor.

     

    PHOTODETECTOR
      DESIGN AND MODELING

     

    The
      Company’s software suite (mostly internally developed over several years) allows
      device modeling including highly sophisticated simulations of the discrete
      amplification mechanism. This allows the Company to utilize computer modeling
      as
      a method to develop new devices in an efficient manner. The use of simulation
      technology to develop new devices is critical to this fabless semiconductor
      company. 

    

    The
      Company starts a design with the use of a combination of internally developed
      proprietary software and commercial software (see examples on Fig. 1, 2 and
      3).
      This allows it to define and optimize production parameters that would provide
      given characteristics of the absorption and multiplication regions, to model
      leakage current, transient and I-V characteristics, and other parameters
      critical to the actual fabrication of a physical device. The figures below
      are
      meant to demonstrate the Company’s general modeling approach. The ability to
      perform 3D modeling is particularly important at every step of the process.
      The
      dark current and field distribution simulation outputs are just a small sample
      of the many modeling outputs used by the scientists in the development of the
      actual products.

     

    
      
        
          
          

        

        
          
          

          
            

          

          
            	
                    

                  	
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    Figure
      1:
      Modeling of 3D field profile for a discrete amplification device

     

    

    Figure
      2:
      Modeling of dark current-reverse bias voltage characteristics 

     

    

    Figure
      3:
      Modeling of electric field distribution in a photodetector cell. Vectors show
      the field direction.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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      INTELLECTUAL
        PROPERTY 

    

     

    
      	
              The
                Company fully owns its intellectual property. In April 2005 the Company
                was issued its cornerstone patent, United States Patent 6,885,827
                titled
                “High sensitivity, high resolution detection of signals.” Another patent,
                US # 7,085,502, was granted in August 2006. The Company has filed
                one more
                patent application and plans to file additional patent applications
                to
                further protect its intellectual property. International patent
                applications have been filed as well.

            	
              

            

    

    

    The
      Company believes that numerous additional patents may be obtainable on various
      embodiments and specific applications of the technology. 

     

    
      PRODUCTS
        AND MARKETS

       

    

    
      	
              

            	
              Initially,
                the Company will be developing sensitive photodetectors. Additionally,
                the
                Company plans to develop integrated sensor chips for use in chemical,
                biological, radiological and other detection
                applications.

            

    

     

    Photo-detectors
      are used in numerous medical, scientific, security, industrial, and other
      applications. PMTs have provided the primary technological solution for highly
      sensitive light detection in numerous applications for over half a century.
      Semiconductor alternatives to PMTs, such as APDs, have never been able to
      achieve performance parameters comparable to those of PMTs, and still do not
      present viable competition to the old vacuum tube technology in most settings.
      The Company’s proprietary technology allows the creation of a
      semiconductor-based sensitive photo-detector that has performance parameters
      similar to those of a PMT but with all of the advantages of a solid state
      device. 

    

    APPLICATIONS
      OF THE TECHNOLOGY

     

    
      The
        following are brief descriptions of some of the applications of the Company’s
        technology.

    

     

    Nuclear
      imaging detector / Medical instrumentation 

    (PET
      scanners, gamma cameras, CT scanners, etc.)

    

    Currently,
      almost all commercial PET systems and virtually all gamma cameras utilize vacuum
      photomultiplier tubes. APDs have not been utilized because of their poor
      performance and the high cost of the quantity of APDs needed to cover the
      detection area.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    Developing
      a detector for PET medical imaging systems is one of the priorities for the
      Company. A significant milestone in the development of this detector is
      attaining sufficient detector efficiency at the wavelengths between 400 and
      500
      nm (“blue light”) of interest to PET scan system manufacturers. The Company has
      already produced a research prototype functioning at these wavelengths. The
      results of the first stage of the development process are expected to be of
      sufficient interest to PET scanner manufacturers so that the Company will
      continue the development in partnership with one of these companies, resulting
      in a PET detector that will be incorporated in a major commercial PET system.
      The Company has had discussions with the world’s leading PET system
      manufacturers and is seeking, in the next generation of scanners, to replace
      the
      photomultiplier tubes currently used, with the Company’s new detectors. We are
      in discussions with one of those leading commercial companies in the world
      that
      has a strong interest in using solid state photodetector technology in its
      medical scanners. It is our understanding that the chips we expect to have
      in
      mid 2008 should generally meet their requirements for a first generation chip.
      

    

    The
      current size of the market for sensitive photo-detectors used in medicine is
      estimated to be close to $100 million a year. The market is growing very rapidly
      as new diagnostic devices are developed and as insurance reimbursement for
      PET
      and other scan procedures becomes standard for many diagnoses. The market could
      grow even faster if the cost of the equipment were lower. Detector modules
      are
      the single most expensive element of large scanners. The Company believes that
      its high performance, relatively low cost detectors will ultimately replace
      the
      PMT-based modules leading to the overall expansion of the market. 

    

    The
      Company’s detectors have another important advantage over the currently used PMT
      detectors. The new detectors are unaffected by magnetic fields, making it
      possible in principle to combine MRI and PET scanners in a single instrument.
      The medical community has long sought a device that has the ability to combine
      these two imaging modalities, and indeed one major PET manufacturer has filed
      a
      patent covering aspects of such a combined device.

    

    The
      Company also believes that its technology has the potential to enable better
      discrimination among various types of body tissue in next generation CT
      scanners. The CT scanner market appears to be much larger than the PET market.
      

    

    Scientific
      Instrumentation

    Numerous
      scientific applications require detecting very low levels of light. The
      Company’s technology has several advantages in applications such as fluorescence
      detection, time of flight measurements, spectroscopy, and others.

    

    Biochip
      devices

    While
      biochips were first developed for genome analysis and are playing a major role
      in gene identification in human DNA, their applications are rapidly expanding
      into other areas such as toxicological, protein, and biochemical research and
      diagnostics. They can also be used for rapid detection of biological and
      chemical agents in biological and chemical warfare. The Company’s technology
      allows the creation of multi-element detector arrays with internal
      amplification, making the technology ideal for biochip devices.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    Biochips
      could be extremely useful in environmental monitoring, public health, and
      homeland security applications such as diagnosis of infectious diseases in
      minutes rather than days, rapid identification of crime suspects, and
      on-the-spot categorization of biological warfare agents. Examples of potential
      commercial products include small portable kits for testing for microorganisms
      in dairy products or for food pathogens such as E. coli
      and
salmonella.

    

    The
      overall biochip market is estimated to be in excess of $500 million and is
      projected to grow at 50% per year for several years. The Company’s technology
      may have the potential to contribute to the growth of this market and create
      low-cost electronic sensor devices for mass consumer use.

    

    Chemical
      lab-on-a-chip analytical instruments

    Small
      inexpensive sensor arrays could replace current analytical laboratories in
      many
      applications. They could be portable and provide analytical results almost
      immediately. Significant advancements have already been made in this field.
      Our
      technology has the potential to create even more sensitive and cheaper chemical
      lab-on-a-chip devices. In addition to traditional chemical analysis, examples
      of
      applications include breath alcohol testing and pipeline leak
      monitoring.

    

    Environmental
      monitoring
      (LIDAR)

    The
      vacuum tubes currently utilized in LIDAR (Light Detection and Ranging)
      applications are expected to be replaced by the rugged, solid-state devices
      based on the Company’s technology. Due to its high sensitivity, the operation of
      a photo-detector based on the technology will be less susceptible to particle
      interference. The emergence of low-cost detectors with superior performance
      could lead to the substantial growth of this market.

    

    Security
      devices

    The
      ability to sense very weak sub-nanosecond impulses is valuable in many security
      applications. Our technology has the potential to create the most sensitive
      security devices, including active pixel arrays for automatic
      monitoring.

    
       

    

    STRATEGY
      AND IMPLEMENTATION

     

    The
      Company intends to develop its technology to be positioned as the next
      generation solid state technology for low level light detection at the component
      level. It will be marketed for existing applications for low light level
      detection as well as for use in entirely new detection systems.

    

    The
      Company’s technology does not require any especially sophisticated semiconductor
      fabrication processes. The Company intends to outsource the manufacturing of
      its
      products but will likely seek to have an assembly and testing facility. A
      critical step on the road to commercialization will be perfecting manufacturing
      processes recently begun in the US, to enable better reproducibility and
      improved performance parameters and reliability. 

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    The
      Company’s unique technology enables the development of highly specialized
      detector components optimized for specific applications and systems that meet
      the needs of OEMs. Development of detector components for OEMs will require
      continuing collaboration with system developers. Significant resources will
      be
      devoted to this effort.

    

    In
      order
      to more easily market Company products to OEMs and alleviate some of the fears
      commonly experienced by first adopters, the Company will seek public exposure
      and continue the validation process. The Company intends for its scientists
      to
      write feature articles in industry publications and to arrange for its products
      to be reviewed in order to help build awareness of the technology. In addition,
      the Company expects to present at industry tradeshows. Products will be
      exhibited at events such as Photonics West and IEEE NSS-MIC. A website has
      been
      established. As first adopters are often scientists, presentations of technology
      at scientific conferences will be made.

    

    The
      Company will aggressively market to the R&D centers of major manufacturers
      in the field. It is expected that specialized marketing expertise will be
      required for some of the markets; the Company plans to seek out top talent
      to
      fill this need.

    

    The
      Company might enter into a joint venture or agreement with another company
      in
      order to gain access to a distribution network, manufacturing capability, or
      expertise in electronic system integration in specific fields. It is expected
      that strategic alliances will be established with original equipment
      manufacturers in several markets. Currently, there are no such joint ventures
      or
      agreements under discussion.

    

    Distribution
      will be initially done directly to first adopters, including large medical
      OEMs.
      Physicists and engineers at universities and national laboratories will serve
      as
      initial qualifiers of the technology for use in various projects.

    

    For
      non-OEM products, the Company will utilize independent sales representatives
      and
      develop its own technical sales staff.

    

    PRODUCT
      DEVELOPMENT STRATEGY

     

    The
      Company plans to develop products and introduce them to the marketplace in
      a
      gradual manner. This approach is natural as it allows the development of simpler
      products first, and then building on these results to perform more advanced
      R&D needed for the development of other products. 

    

    Single
      element silicon photodetectors

    The
      first
      products of the Company are solid-state photomultipliers for photon counting
      and
      analog detection. The product has already been developed and evaluation samples
      are available; currently, additional design improvements are being made.
      Improving performance and long term reliability is the primary R&D direction
      for the Company in the short term. The results of this R&D program are also
      going to be utilized in the development of other products. The Company has
      produced a prototypes of photodetector chips for PET scanning applications
      and
      scientific applications and is involved in their evaluation and improvement.
      

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    In
      addition, the Company is developing a number of models of a detector module
      packaged with electronics to make it easier to use and take full advantage
      of
      its capabilities. The models will appeal to different categories of customers.
      The Company believes the photodetector module has the potential to become a
      leader in the small, but rapidly growing field that is fueled by demands of
      extremely low light level detection. The product is expected to find use in
      flow
      cytometry, luminescence measurement, multi-photon spectroscopy, and other
      scientific and manufacturing applications.

    

    Besides
      PET scanners, there are several other medical instruments that use vacuum PMT’s;
      of particular interest is the gamma camera (SPECT) application. Amplification
      Technologies expects to be able to develop solid state detectors for all of
      these applications.

    

    Infrared
      detectors

    The
      Company has initiated development of an infrared detector as part of its work
      under the NASA grant to develop a sensitive photodetector for optical
      communications. This development involves work with InGaAs semiconductor
      material as opposed to the silicon traditionally used in electronics. Infrared
      photodetectors are also of significant interest to the Homeland Security
      market.

    

    Linear
      detector array

    A
      linear
      detector array is expected to be the first multi-element detector based on
      our
      technology of internal discrete amplification. It will combine several detector
      elements, each of which will read signals independently of the others. The
      market for such devices includes time-resolved spectroscopy, LIDAR remote
      sensing, biological and chemical detection, and machine vision. The Company
      intends to commence an extensive R&D program to develop linear detector
      arrays.
      

    

    Imaging
      array

    Several
      commercial markets are searching for large size arrays for low light level
      imaging. The primary applications are night vision equipment, automobile night
      vision systems, and bio-agent detection. 

    

    The
      Company believes that its technology could potentially be used to create imaging
      arrays with superior performance parameters and low cost, and plans to start
      an
      R&D program to develop imaging arrays. It is expected that the first stage
      of this program will yield results sufficient to choose the overall focus and
      identify the applications that are the most natural fit with our technology
      and
      capabilities. One particular R&D challenge will be to create arrays of a
      size sufficient for obtaining a quality image.

    

    Detectors
      for biochip, chemical sensor, and environmental monitoring
      applications

    The
      Company’s internal research and work with outside consultants lead it to believe
      that the unique amplification mechanism we developed would be of strong interest
      in the fields of biochips, chemical sensors, and environmental monitoring.
      In
      fact, our technology has the potential to revolutionize some of these fields
      and
      to create the next generation of the products.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    PRICING

     

    The
      Company intends to compete primarily based on the performance characteristics
      of
      its products and less so on price. The Company also expects to produce products
      not offered by its competitors. In any event, the Company expects its
      manufacturing costs to be low, giving it the flexibility to employ various
      pricing strategies. Should the Company compete on price, the low cost of
      production should help preserve profit margins.

    

    In
      markets such as PET scanners, Amplification Technologies’ detectors expect to
      compete with PMTs that are sold at an average of $100 to $200 per tube. The
      Company understands that for large PET systems the cost of PMTs is approximately
      25% of the total material cost. The combination of the superior performance
      and
      the expected low production cost will afford the Company significant pricing
      flexibility in this market.

    

    COMPETITIVE
      LANDSCAPE

     

    Current
      competition to Amplification Technologies is primarily from PMT and APD
      manufacturers. Amplification Technologies will directly compete with established
      players such as Hamamatsu (Japan), PerkinElmer (US), Photonis (France), Electron
      Tubes (UK), and ITT. All of them produce vacuum tube-based photo- and
      radiation-sensitive devices. These devices include various PMTs, image
      intensifier tubes, and light detector modules. 

    

    COMPETITIVE
      ADVANTAGES

     

    
      	
              The
                Company’s key competitive advantages are its unique intellectual property,
                its technical expertise, and its exceptional team. The
                Company fully owns its intellectual property. In April 2005 the Company
                was issued its cornerstone patent, United States Patent 6,885,827
                titled
                “High sensitivity, high resolution detection of signals.” Another patent,
                US # 7,085,502 was granted in August 2006. The Company has filed
                for one
                more patent application and plans to file additional patent applications
                to further protect its intellectual property. International patent
                applications have been filed as well. The Company’s patented intellectual
                property covers not only light detection but also the much larger
                market
                of high precision electron signal amplification and digital processing
                That could be applicable to the detection of other types of
                signals

            	
              

            

    

    

    As
      a
      result of the flexibility of its technology and the experience of its team,
      Amplification Technologies has strong R&D capabilities to optimize its
      sensors and amplifiers to specifications of OEMs and develop products and
      technological solutions that in many cases will be unmatched in their superior
      performance, flexibility, integration, and cost-effectiveness. The Company
      expects that its competitive advantages will be sustainable for an extended
      period.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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    COMPETITORS

     

    Hamamatsu
      is the
      leader in the low-level light detection market, having the largest market share,
      range of products, and distribution system. In the fiscal year 2007, Hamamatsu
      Photonics, which offers a broad range of photonics products, had consolidated
      net sales of $838 million. While the company started out as a PMT manufacturer,
      many of its products are now based on semiconductor technologies. The strengths
      of Hamamatsu are its reputation, current market position, and the high quality
      of its products. Hamamatsu focuses mainly on phototube applications in nuclear
      medicine, biological and pharmaceutical research, physics experiments sector,
      and government research. Hamamatsu has developed several vacuum tube
      technologies, including miniature PMTs, multichannel PMTs, and microchannel
      plate PMTs that are used extensively in life science and drug discovery
      instrumentation. Examples of the applications include chemiluminescence, flow
      cytometry, immunofluorescence, and microtiter plate readout. These rapidly
      growing application areas are all target markets for Amplification Technologies,
      Inc. Hamamatsu has also developed a line of semiconductor products for
      photodetection.

    

    Photonis
      (formerly Philips Photonics) manufactures primarily photomultiplier tubes and
      image intensifiers. The total sales in 2007 were about $200 million. Photonis
      is
      believed to have the largest fraction of the PET OEM market as a major supplier
      to Philips, GE Medical Systems and Siemens. 

    

    Electron
      Tubes,
      a UK
      manufacturer, focuses on photodetector tubes for physics projects and scientific
      applications, offering complete PMT modules and assemblies including voltage
      supplies and processing electronics. It does not have any solid state
      products.

    

    Perkin-Elmer
      manufactures primarily solid-state products including APDs and APD-based
      photon-counting modules. 

    

    JDS
      Uniphase
      produces
      solid-state photo-detectors for use in fiber-optic telecommunications.

    

    ITT
      produces
      night vision devices for a variety of applications.

    

    Others

    There
      are
      also several boutique APD photo-detector developers. Their focus is on detectors
      for certain specialized applications, which has allowed them to develop
      significant niche expertise. 

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        20

                    	
                      CONFIDENTIAL

                    

            

          

          
          

        

      

    

     

    It
      is
      important to note that in the field of low level light detection there is very
      limited vertical integration. Companies such as Hamamatsu remain component
      suppliers to original equipment manufacturers (OEMs) and do not produce complete
      systems. The only major exception is PerkinElmer which produces medical
      instruments through a separate division. 

    

    COMPETING
      SEMICONDUCTOR TECHNOLOGIES

     

    APDs
      used
      in the standard analog mode of operation have inherent limitations that prevent
      them from detecting very low-level light signals. At the level of gain required
      for such detection, excess noise factor increases to the degree that makes
      signal detection virtually impossible. They can, however, be used for stronger
      signals. APDs can also be used in a mode of operation known as Geiger-mode.
      In
      this mode high gain is achievable, but only the existence of a signal, as
      opposed to signal strength, can be measured. Hamamatsu, PerkinElmer, and
      Advanced Photonics, are some of the companies producing APDs. Additionally,
      there are a number of new companies that have built Geiger-mode APDs which
      compete primarily in the single photon counting market. Generally, the Company
      believes that the development of APDs is reaching a point where further
      development will not result in significant performance improvements.

    

    There
      is
      a competing approach to creating sensitive semiconductor photodetectors referred
      to as SiPM or Multipixel Photon Counter. In general, SiPM technology and its
      variations are largely based on the idea of using an array of Geiger-mode APD
      micro-pixels to measure signal strength. The basic design of SiPM has been
      developed in Russia, published years ago, and is in the public domain. Some
      patents have been issued that cover certain aspects of this technology. The
      Company believes that for some time there have been efforts to use such devices
      in very large scale high energy physics experiments. The Company believes that
      SiPM type technologies are limited to detection of light signals, and, unlike
      detectors based on the Company’s technology, cannot be used for detection of
      electrical signals either directly or in other types of sensors (mechanical,
      thermal, chemical, biochip, etc.). 

    

    Hamamatsu
      has recently introduced the first SiPM commercial product, sensitive solid
      state
      detectors with relatively high detection efficiency. Based on the descriptions
      contained in Hamamatsu’s marketing literature, which makes specific reference to
      SiPM technology, and the analysis of the Hamamatsu product, our technical team
      has concluded that this device is based on the traditional SiPM technology.
      We
      are aware of a patent application related to the SiPM technology that has been
      filed by Hamamatsu that appears to relate to specific designs. The analysis
      of
      the Hamamatsu patent filing by our scientists shows it to be primarily
      modifications of the traditional SiPM designs that are different from the
      Company’s technology. The Company believes that Hamamatsu’s superior
      manufacturing capability contributed greatly to the improvements in its devices
      relative to SiPM devices that were previously made in Russia. The Company sees
      the introduction of the SiPM-type product by Hamamatsu as an important
      validation of the Company’s approach.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        21

                    	
                      CONFIDENTIAL

                    

            

          

          
          

        

      

    

     

    A
      number
      of smaller companies, some of whom have filed patents related to SiPM
      technology, are seeking to proceed in the same direction as Hamamatsu. The
      most
      notable of these is SensL, which has commercial product available. In general
      the company believes that Hamamatsu is the strongest competitor in the group.
      We
      are also aware of patent applications filed by manufacturers of PET scanners
      on
      some of the uses of SiPM-type technologies in medical diagnostics. The Company
      welcomes the interest of PET scanner manufacturers in solid state technology and
      believes that these patent applications do not present a significant competitive
      or intellectual property threat to the Company. Finally, a venture stage
      Canadian company, Zecotek Laboratories, Inc., has hired a Russian scientist
      who
      developed some of the SiPM designs, announced that it has filed three patent
      applications in the U.S. and has announced commercial products. Based on the
      limited information available, including datasheets, the Company believes its
      products will be superior to Zecotek’s. It is possible that other companies are
      conducting research in this area that the Company is not aware of. 

    In
      general, the Company views the SiPM-type technologies as the previous generation
      of the discrete amplification technology developed and patented by the Company.
      The Company believes that its patented technological approach is superior and
      far more flexible in allowing performance optimization. SiPM-type technologies
      can be used in some photodetection applications. However, while SiPM type
      technologies do allow one to register low-level light signals, the Company
      believes that they have inherent limitations because they lack a number of
      important design features that are part of the Company’s technology and are
      described in the Company patents. Accordingly the Company believes that in
      the
      vast majority of applications the technology of discrete amplification is
      superior to these other approaches. The Company further believes that the
      opportunities to fundamentally improve the Hamamatsu devices are limited.

    

    PERSONNEL

     

    The
      Company currently has 25 employees (FTE), 22 in Moscow and 3 in New York,
      including 9 PhDs. The Company expects that its US based staff will grow
      significantly over time and that it will also add some staff in Moscow. The
      Company will make full use of its highly qualified and relatively inexpensive
      overseas technical team for its R&D activities. US personnel is expected to
      be split between general management and research/production/testing, with some
      sales and marketing that will grow as the Company introduces new products.
      It is
      expected that the Company will continue to use an outsourcing model both in
      the
      US and overseas, and will require only limited production personnel.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        22

                    	
                      CONFIDENTIAL

                    

            

          

           

        

      

    

    Management
      Team

    R.
      S. Krishnaswamy, President
      and COO has
      25
      years of experience in the high tech industry. As a senior executive with Veeco,
      he worked in operation areas ranging from engineering and manufacturing to
      marketing and business development. He was involved in an R&D project to
      develop sensor technology as well as in numerous other projects. Immediately
      prior to becoming President and COO of the Company, he was a vice president
      with
      Agave Technologies, giving him experience in a startup environment.

    

    A
      strong
      and dynamic leader, R.S. Krishnaswamy has a wealth of experience in managing
      people and projects. He also has significant international experience that
      is
      particularly useful in leading the Company’s efforts.

    

    V.E.
      Shubin,
      Chief Scientist,
      is a
      co-founder of the Company.  He and Dmitry Shushakov are the principal
      inventors of the Company’s technology. Dr. Shubin is a world-leading expert on
      photo-detectors and photonics technology with almost forty years of experience
      in the field.  He has conducted pioneering research in photonics and
      authored over a hundred
      scientific papers. Together with Dmitry Shushakov, he recently authored a broad
      overview of avalanche photodetectors for the Encyclopedia of Optical
      Engineering. Dr. Shubin’s major scientific achievements include the development
      of two new areas in the field of solid-state structures and
      optoelectronics:  photo-electric structures with memory (PEMS) and
      avalanche structures with negative feedback (ANF). Dr. Shubin is actively
      involved in both theoretical and experimental aspects of the Company’s
      development activities.

    

    Dmitry
      Shushakov,
      Head of Product Development,
      a
      co-founder of the Company, is a leading expert in the field of sensor and
      photo-detector development with over 20 years of research and development
      experience.  Prior to joining Amplification Technologies, Dmitry Shushakov
      conducted research in the field of avalanche silicon structures with negative
      feedback in Dr. Shubin’s group at the Lebedev Institute of Physics. He has
      authored numerous scientific papers on photo-detectors and sensor technology,
      including the development of novel avalanche photodiodes.  He also
      possesses strong experience in computer modeling of semiconductor processes
      and
      general design of opto-electronic systems.  Dmitry Shushakov is a
      co-developer of the internal discrete amplification mechanism in semiconductors.
      He is involved primarily in the modeling and experimental aspects of the
      development.

    

    Yuriy
      Yevtukhov, Vice President –
      Technology,
      has
      extensive experience in semiconductor technology and product development, as
      well as in working with customers on specific applications. He has designed
      semiconductor devices such as Schottky diodes and deep IR photodetectors. As
      group leader at Agave Technologies, he participated in all aspects of product
      life cycle, from concept and development to field support. As a senior process
      engineer and staff scientist at Veeco, he was involved in design, improvements,
      and support of processing tools and a number of other technologies. Prior to
      joining the industry, Dr. Yevtukhov conducted pure research focusing on the
      physics of semiconductor fabrication processes. He has 25 years of overall
      high
      tech experience.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        23

                    	
                      CONFIDENTIAL

                    

            

          

          

        

      

    

    Edward
      Godik,
      Senior Technology Consultant,
      has
      almost forty years of experience in detector development and technology
      commercialization. His work led to major advances in opto-mechanical imaging
      and
      IR silicon photo-detector development. He is the author of over a hundred
      scientific papers and holds several patents. The emphasis of Dr. Godik’s work in
      the last twenty years has been on the commercialization of new technologies
      with
      a focus on the application of new detector
      technologies in medicine. Dr. Godik was previously with Dynamic Imaging,
      Inc.

    

    Nicholas
      Kolobov,
      Senior
      Technology Officer,
      has
      over thirty years of practical experience in semiconductor device fabrication
      technologies. Dr. Kolobov has numerous publications and is a well known expert
      in this field.

    

    Jack
      N. Mayer
      ,
Director,
      a
      co-founder of the Company is a portfolio manager with Gabriel Capital Corp.
      and
      has been employed with Gabriel and associated entities for 20 years. Mr. Mayer
      has a Masters in Mathematics from Columbia University. The Company is not
      affiliated with Gabriel.

     

    It
      is
      expected that Samuel
      M. Zentman
      will
      join the Board in April. Since November 2004 Dr. Zentman has been a director
      of
      Acorn Energy, Inc., a Nasdaq listed company. 

    

    Members
      of the scientific team include six other PhDs
      and
      additional highly qualified personnel.

    

    Certain
      gaps in the management team will be filled as the Company grows. In particular,
      the Company has to acquire specialized technological and marketing expertise
      in
      the industries that are the end-users of devices built on the
      technology.

    

    FINANCIAL
      PROJECTIONS

     

    The
      Company estimates that over a 5 year period the Company will reach a run rate
      of
      $80+ million per annum in revenue and of $30+ million per annum, in pre tax
      net
      income with substantial growth thereafter, that it will attain some revenue
      from
      sales by late ’08/early ‘09 and profitability in 2011, that it will continue to
      obtain grant revenue in ’08 and beyond, and that it will require additional
      equity financing of about $4 million in ’08, about $6 million in each of ’09 and
’10 and additional equity financing in ‘11.

     

    No
      assurance can be given regarding the attainability of the projections or the
      reliability of the assumptions on which they are based. The projections are
      subject to change due to market conditions, changes in company strategy, receipt
      of additional information, refinement and other factors and the Company has
      no
      obligation to update such information. The projections are based upon certain
      assumptions regarding future events over which the Company has little or no
      control and as stated assume significant additional funding. The Company
      currently has no arrangements for such additional funding. The projections
      are
      subject to the uncertainties inherent in any attempt to predict the results
      of
      operations of an early stage company over a prolonged period, and as such,
      results may vary materially and adversely from those projected. The Company’s
      management may conduct the business in a manner different from that contemplated
      in those assumptions due to changing circumstances. 

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        24

                    	
                      CONFIDENTIAL

                    

            

          

          
          

        

      

    

     

    Actual
      results will likely vary, perhaps materially, from these projections. In light
      of the significant uncertainties inherent in the projections included herein,
      the inclusion of such information should not be regarded as a representation
      by
      us or any other person that our objectives or other factors and plans will
      be
      achieved. The projections were not prepared in accordance with generally
      accepted accounting principles, have not been reviewed by an independent
      accounting firm, and do not reflect all adjustments necessary for a fair
      presentation of the financial position and results of operations of the
      Company.

    

    CORPORATE
      INFORMATION

     

    Amplification
      Technologies, Inc. is a Delaware corporation formed in May 2002 headquartered
      in
      New York City. It is the successor to Quantum Photonics LLC, a New York limited
      liability company formed in 2000 to commercialize the Company’s technology.
      APMTI LLC, a Russian limited liability company based in Moscow and formed in
      2004, is a wholly owned subsidiary of Amplification Technologies, Inc. The
      Company’s bylaws provide that all business of the Company shall be conducted in
      conformity with Orthodox Jewish law.

    The
      Company’s corporate law firm is David Lubin & Associates, PLLC, 26 East
      Hawthorne Avenue, Valley Stream, New York 11580, tel. (516) 887-8200, fax (516)
      887-8250.

    

    The
      Company’s intellectual property law firms are Frommer Lawrence & Haug LLP,
      and Morgan & Finnegan LLP .

    

    The
      authorized capital stock of the Company consists of: (a) 40,000,000 shares
      of
      common stock, $0.01 par value per share, of the Company (the “Common Stock”),
      (b) 2,000,000 shares of non-voting common stock, $0.01 par value per share
      (the
“Non-Voting Common Stock”), of the Company, and (c) 1,000,000 shares of
      Preferred Stock, $0.01 par value per share, of the Company of which 120,000
      shares
      have been designated as Series A Preferred Stock, and 200,000 are to be
      designated as Series B Preferred Stock.

    

    On
      a pro
      forma basis as of Jan 31, ’08, the
      issued and outstanding capital stock of the Company consists of: (a) 12,735,140
      shares of Common Stock, (b) 44,430 shares of Series A Preferred stock, which
      are
      convertible into 1,652,809 shares of Common Stock and (c) not more than
      2,406,010 shares of Common Stock and Non-Voting Common Stock reserved for
      issuance to satisfy option awards and similar obligations and (d) $1,061,617
      liquidation value of non- convertible Series B Preferred Stock. Holders of
      4,376,571 shares of Common Stock receive payments of $.00625/share monthly
      until
      such shares are registered and have a trading symbol, or can be sold under
      Rule
      144, and have certain “most favored nation” rights. 93% of such shares have
      agreed in principle to take stock in lieu of the monthly cash payment.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
                      PAGE
                        25

                    	
                      CONFIDENTIAL

                    

            

          

           

        

      

    

    Some
      of
      the key terms of the outstanding Series A Preferred Stock are summarized below.
      

    

      
        	
                Liquidation
                  preference per share:

              	
                $31.00

              
	 	 
	
                Dividends:

                 

              	
                PIK,
                  18% per annum, payable quarterly until December 31, 2006, whereupon
                  dividends ceased.

              
	 	 
	
                Conversion:

                 

              	
                Each
                  share of Series A Preferred Stock is convertible into 37.2 shares
                  of
                  Common Stock

              
	
                 

              	 
	
                Voting
                  Rights:

              	
                The
                  holders of the preferred vote with the common on an as-if converted
                  basis.

              
	 	 
	
                Maturity:

              	
                December
                  31, 2011.

              
	 	 
	
                Protective
                  Provisions:

                 

              	
                The
                  Company shall not take certain actions, including the creation
                  of any
                  security senior to the preferred, without the consent of the holders
                  of
                  80% of the outstanding preferred
                  shares.

              

      

    

     

    The
      above
      summary of the terms of the Series A Preferred is qualified in its entirety
      by
      reference to the amended Certificate of Designation of the Series A Preferred,
      which was filed with the Secretary of State of the State of Delaware and is
      available upon request from the Company.

    

    The
      Series B pfd stock is senior to the Pfd A, non-convertible, is redeemable at
      any
      time by the Company, has very restrictive covenants and pays a PIK dividend
      of
      2% monthly. The Series B are held by Mr. Mayer and members of his
      family.

    

    The
      Company has raised approximately $6.5 million of capital as
      follows:

    

    
      	
              Year

            	 	 	
              Amount

            	 	 	
              Price

            	 	 	
              Type
                of Security Issued

            	 
	
              '02

            	 	
               

            	
              
                $

              

            	
              400,000

            	 	
               

            	
              
                $

              

            	
              0.269

            	 	 	
              Common

            	 
	
              '03

            	 	
               

            	
              
                $

              

            	
              420,000

            	 	
               

            	
              
                $

              

            	
              0.403

            	 	 	
              Common

            	 
	
              '04

            	 	
               

            	
              
                $

              

            	
              1,045,000

            	 	
               

            	
              
                $

              

            	
              0.538

            	 	 	
              Common

            	 
	
              '05-'06
                

            	 	
               

            	
              
                $

              

            	
              2,185,000

            	 	
               

            	
              
                $

              

            	
              31.00

            	 	 	
              Series
                A Preferred 

            	 
	
              ‘07

            	 	
               

            	
              
                $

              

            	
              780,000

            	 	
               

            	
              
                $

              

            	
              0.95

            	 	 	
              Common

            	 
	
              ‘07

            	 	
               

            	
              
                $

              

            	
              370,000

            	 	
               

            	
              
                $

              

            	
              .0625

            	 	 	
              Common

            	 
	
              ’07-’08

            	 	
               

            	
              
                $

              

            	
              1,281,200

            	 	 	 	
            	 	 	
              Pfd
                B

            	 

    

     

    
      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        26

                    	
                      CONFIDENTIAL

                    

            

          

           

        

      

    

    ADDITIONAL
      TECHNICAL INFORMATION

     

    Copies
      of
      the documents set forth below are available upon request at the Company’s
      office. Persons interested in viewing a copy of any such document should contact
      Mr. Jack N. Mayer. 

    

    1. Highly
      sensitive silicon photodetectors with internal discrete amplification (2004
      publication by members of the team)

    

    2.
       Ultra
      low
      noise photodetectors with internal discrete amplification (Paper by members
      of
      the team - published 2005) 

    

    3.
       Demonstration
      of new sensor technology (Description of experiments)

    

    4.
       
      Solid
      state photomultiplier: noise parameters of photodetectors with internal discrete
      amplification (2006 publication by members of the team)

    

    5.
      Bio-sensing: the use of a novel sensitive optical detector (2006 publication
      by
      members of the team).

    

    6.
      Breakthrough in low light level applications: Novel solid state detectors with
      high gain and low noise (Amplification Technologies white paper)

    

    7.
       Avalanche
      Photodetectors (chapter from The Encyclopedia of Optical Engineering authored
      by
      members of the team)

    

    8.
       Novel
      Detector for Quantum Cryptography Applications (Amplification Technologies
      white
      paper)

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
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                        27

                    	
                      CONFIDENTIAL

                    

            

          

          
          

        

      

    

     

    RISK
      FACTORS

     

    The
      Company is pre-revenue and in a relatively early stage of development. An
      investment in the Company involves a high degree of risk and should be
      considered only by investors familiar with the risks presented generally by
      companies at this stage. Prior to making an investment decision, prospective
      investors should carefully consider the following factors in addition to the
      other information set forth in this Memorandum

    

    We
      will need additional financing to fund further research and development, produce
      marketable products and achieve profitability.

    

    Our
      products have not been tested in the marketplace.

    

    We
      have no relationships with OEMs.

    

    We
      may not be able to protect our intellectual property rights in our proprietary
      technology and information.

    

    We
      may not be able to compete with our competitors, most of whom have greater
      resources and experience than we do.

    

    We
      have not developed the infrastructure required to manufacture, market, or sell
      our product candidates.

    

    The
      photo-detector industry is subject to technological change.

    

    We
      are highly dependent on our scientific and senior management personnel.

    

    The
      risk
      factors highlighted above do not purport to be complete and businesses are
      often
      subject to risks not foreseen or fully appreciated by management. In reviewing
      this Confidential Memorandum potential investors should keep in mind the
      possibility of other risks that could be important and materially affect their
      investment. Investors are urged to make their own evaluation of the Company.
      We
      encourage potential investors who would like to receive additional information
      or clarification of any of the items contained herein to speak with Company
      management before investing.

    
       

      
        
          
            
            

          

          
            
            

            
              

            

            
              	
                      

                    	
                      PAGE
                        28

                    	
                      CONFIDENTIALUnassociated Document

    

    STOCK
      PURCHASE AGREEMENT

    

    THIS
      STOCK PURCHASE AGREEMENT (this “Agreement”) dated as of March 31, 2008, among
      the shareholders (each, a “Seller” and collectively, the “Sellers”) of Powersafe
      Technology Corp., a Delaware corporation (the “Company”) identified on
Schedule
      A
      annexed
      hereto, Einat Krasney and Mordechai Schwartz (the “Principals”), and the
      purchasers of such shares (each, a “Purchaser” and collectively, the
“Purchasers”) and the other persons indicated on the signature page
      hereof..

    

    RECITALS

    

    A. Sellers
      are the owners of 100% of the issued and outstanding shares (the “Shares”) of
      the Company on a fully-diluted basis.

    

    B. Pursuant
      to the terms and conditions of this Agreement, Sellers desire to sell, and
      Purchasers desire to purchase, all of the Sellers’ rights, title, and interest
      in and to all of the Shares as further described herein.

    

    NOW,
      THEREFORE, in consideration of the covenants, promises and representations
      set
      forth herein, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, and intending to be legally bound
      hereby, the parties agree as follows: 

    

    1.
       Agreement
      to Purchase and Sell at the Closing.
      Subject
      to the terms and conditions of this Agreement, at the Closing (hereafter
      defined), Sellers shall sell, assign, transfer, convey, and deliver to
      Purchasers, and Purchasers shall accept and purchase, the Shares and any and
      all
      rights in the Shares to which Sellers are entitled, and by doing so Sellers
      shall be deemed to have assigned all of their rights, titles and interests
      in
      and to the Shares to Purchasers. Such sale of the Shares shall be evidenced
      by
      stock certificates, duly endorsed in blank or accompanied by stock powers duly
      executed in blank or other instruments of transfer in form and substance
      reasonably satisfactory to Purchasers.

    

    2.
       Consideration.
      In
      consideration for the sale of the Shares, Purchasers shall deliver to Sellers
      (the “Purchase Price”) an aggregate of Six Hundred Twenty-Five Thousand Dollars
      ($625,000.00).

    

    3.
       Closing;
      Delivery.
      

    

    (a)
       The
      purchase and sale of the Shares shall be held simultaneously with the execution
      of this Agreement at such place as the parties hereto may agree (the “Closing”).

    

    (b)
       At
      the
      Closing: 

    

    (1)
       Sellers
      shall deliver to Purchasers (A) stock certificates evidencing the Shares, duly
      endorsed in blank or accompanied by stock powers duly executed in blank, or
      other instruments of transfer in form and substance reasonably satisfactory
      to
      Purchasers, (B) any documentary evidence of the due recordation in the Company’s
      share register of Purchasers’ full and unrestricted title to the Shares, and (C)
      such other documents as may be required under applicable law or reasonably
      requested by Purchaser.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2) The
      Principals shall deliver to David Lubin & Associates, PLLC, as escrow agnet
      for the Purchasers, (A) resignation letters from the sole officers and directors
      of the Company (resignation letter from Mordechai Schwartz as a director shall
      be effective 10 days after the mailing of an information statement pursuant
      to
      Rule 14f-1); (B) letter executed by the Company informing Nevada Agency &
Transfer Company, the transfer agent for the Company, that the President of
      the
      Company is now Jack Mayer and that the transfer agent shall not take any
      instructions, including issuing certificates or clearing any legended
      certificates, from any person other than said individual; (C) a shareholders’
list, dated not more then two days before the Closing, including names and
      addresses of each shareholder, certificate numbers and issue dates; (D) any
      documentary evidence of the due recordation in the Company’s share register of
      Purchasers’ full and unrestricted title to the Shares, (E) a legal opinion on
      behalf of the Sellers opining that the offer and sale of the Shares is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “Securities Act”), that the Shares which are freely tradeable shall remain
      as such and other matters customary of a transaction of this nature (F) all
      the
      books and records of the Company and (G) such other documents as may be required
      under applicable law or reasonably requested by Purchaser.

     

    (3)
       Purchasers
      shall deliver to Sellers the Purchase Price by wire transfer of immediately
      available funds to an escrow account designated by the Sellers. 

    

    4. Administrative
      Agent. 

    

    4.1  Appointment
      of Administrative Agent. Each
      of
      the Sellers hereby irrevocably constitutes and appoints, effective as of the
      date hereof, Michael Krohme, Esq., acting individually (together with his
      permitted successors, the “Administrative Agent”), as the true and lawful agent
      and attorney-in-fact to: (i) enter into any agreement in connection with the
      transactions contemplated by this Agreement, (ii) exercise any or all of the
      powers, authority and discretion conferred on him under this Agreement and
      any
      such agreement, (iii) sign stock powers and any other instruments effecting
      the
      transfer of the Shares at the Closing under the terms and conditions of this
      Agreement, and to enter into any amendments thereto as approved by the
      Administrative Agent and Purchasers; (iv) waive or amend any terms and
      conditions of any agreement in connection with the transactions contemplated
      by
      this Agreement, to give and receive notices on such Sellers’ behalves and to be
      his, her or its exclusive representative with respect to any matter or claim
      arising with respect to any transaction contemplated by any such agreement,
      including, without limitation, the defense, settlement or compromise of any
      claim for which any Indemnified Persons may be entitled to indemnification,
      and
      the Administrative Agent agrees to act as, and to undertake the duties and
      responsibilities of, such agent and attorney-in-fact. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    4.2  Exclusive
      Interface.
      Purchasers and any Indemnified Persons shall be entitled to deal exclusively
      with the Administrative Agent on all matters in connection with the transactions
      contemplated herein, and shall be entitled to rely exclusively (without further
      evidence of any kind whatsoever) on any document executed or purported to be
      executed on behalf of any of the Sellers by the Administrative Agent, and on
      any
      other action taken or purported to be taken on behalf of any of the Sellers
      by
      the Administrative Agent, as fully binding upon the Sellers with respect to
      the
      transactions contemplated herein.

    

    4.3  Limit
      on Liability.
      The
      Administrative Agent shall not be liable to any person for any action taken
      or
      not taken by him in good faith or for any mistake of fact or law for anything
      that he may do or refrain from doing in connection with his obligations under
      this Agreement (i) with the consent of the Sellers who, as of the date of this
      Agreement, owned a majority of the outstanding Shares, or (ii) in the absence
      of
      his own gross negligence or willful misconduct. Any action taken or not taken
      pursuant to the advice of counsel shall be conclusive evidence of the absence
      of
      gross negligence or willful misconduct. The Sellers shall, jointly and
      severally, indemnify and hold the Administrative Agent harmless from any and
      all
      liability and expenses that may arise out of any action taken or omitted by
      him
      as Administrative Agent in accordance with this Agreement, except such liability
      and expense as may result from the gross negligence or willful misconduct of
      the
      Administrative Agent. 

    

    4.4  Reliance
      on Signatures.
      The
      Administrative Agent may rely and shall be protected in relying or refraining
      from acting on any instrument reasonably believed to be genuine and to have
      been
      signed or presented by the proper party or parties. The Administrative Agent
      shall not be liable for any other parties’ forgeries, fraud or false
      representations.

    

    5. Representations
      and Warranties of Sellers.
      As an
      inducement to Purchasers to enter into this Agreement and to consummate the
      transactions contemplated herein, each Seller, severally and not jointly,
      represent and warrant, as of the date of this Agreement and as of the Closing
      Date, to Purchasers as follows:

    

    5.1 Authority.
      Seller
      has the right, power, authority and capacity to execute and deliver this
      Agreement, to consummate the transactions contemplated hereby and to perform
      his
      obligations under this Agreement. This Agreement constitutes the legal, valid
      and binding obligations of Seller, enforceable against Seller in accordance
      with
      the terms hereof.

    

    5.2
       Ownership.
      Seller
      is the sole record and beneficial owner of the Shares, has good and marketable
      title to the Shares, free and clear of all Encumbrances (hereafter defined),
      other than applicable restrictions under applicable securities laws, and has
      full legal right and power to sell, transfer and deliver the Shares to Purchaser
      in accordance with this Agreement. “Encumbrances” means any liens, pledges,
      hypothecations, charges, adverse claims, options, preferential arrangements
      or
      restrictions of any kind, including, without limitation, any restriction of
      the
      use, voting, transfer, receipt of income or other exercise of any attributes
      of
      ownership. Upon the execution and delivery of this Agreement, Purchasers will
      receive good and marketable title to the Shares, free and clear of all
      Encumbrances, other than restrictions imposed pursuant to any applicable
      securities laws and regulations. There are no stockholders’ agreements, voting
      trust, proxies, options, rights of first refusal or any other agreements or
      understandings with respect to the Shares. 

      

    
      
        
        

      

      
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    5.3
       Valid
      Issuance.
      The
      Shares are duly authorized, validly issued, fully paid and non-assessable,
      and
      were not issued in violation of any preemptive or similar rights.

    

    5.4
       No
      Conflict.
      None of
      the execution, delivery, or performance of this Agreement, and the consummation
      of the transactions contemplated hereby, conflicts or will conflict with, or
      (with or without notice or lapse of time, or both) result in a termination,
      breach or violation of (i) any instrument, contract or agreement to which the
      Seller is a party or by which he is bound, or to which the Shares are subject;
      or (ii) any federal, state, local or foreign law, ordinance, judgment, decree,
      order, statute, or regulation, or that of any other governmental body or
      authority, applicable to the Seller or the Shares. 

    

    5.5
       No
      Consent.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with
      any governmental authority or any other person is required for the consummation
      by the Seller of any of the transactions on its part contemplated under this
      Agreement.

    

    5.6 No
      Other Interest.
      Neither
      Seller nor any of his respective affiliates has any interest, direct or
      indirect, in any shares of capital stock or other equity in the Company or
      has
      any other direct or indirect interest in any tangible or intangible property
      which the Company uses or has used in the business conducted by the Company,
      or
      has any direct or indirect outstanding indebtedness to or from the Company,
      or
      related, directly or indirectly, to its assets, other than the Shares.

     

    5.7 No
      General Solicitation or Advertising.
      Neither
      any Seller nor any of its affiliates nor any person acting on its or their
      behalf (i) has conducted or will conduct any general solicitation (as that
      term
      is used in Rule 502(c) of Regulation D) or general advertising with respect
      to
      any of the Shares, or (ii) made any offers or sales of any security or solicited
      any offers to buy any security under any circumstances that would require
      registration of the Shares under the Securities Act.

    

    5.8 No
      Group.
      Other
      than the Sellers who are the officers and directors of the Company, no Seller
      acted directly or indirectly in concert with any other Seller in connection
      with
      the transactions contemplated by this Agreement.

    

    5.9 Full
      Disclosure.
      No
      representation or warranty of the Sellers to the Purchasers in this Agreement
      omits to state a material fact necessary to make the statements herein, in
      light
      of the circumstances in which they were made, not misleading. There is no fact
      known to the Seller that has specific application to the Shares and that
      materially adversely affects or, as far as can be reasonably foreseen,
      materially threatens the Shares that has not been set forth in this
      Agreement.

     

    6. Representations
      and Warranties of the Principals.
      As
      further inducement to Purchasers to enter into this Agreement and to consummate
      the transactions contemplated herein, each of the Principals, severally and
      jointly, represent and warrant, as of the date of this Agreement and as of
      the
      Closing Date, to Purchasers as follows:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    6.1 The
      Company is duly organized, validly existing and in good standing under the
      laws
      of the State of Delaware, with full power and authority to own, lease, use
      and
      operate its properties and to carry on its business as and where now owned,
      leased, used, operated and conducted. The Company is duly qualified as a foreign
      corporation to do business and is in good standing in every jurisdiction in
      which its ownership or use of property or the nature of the business conducted
      by it makes such qualification necessary. The Company does not own, directly
      or
      indirectly, any capital stock of any corporation or any equity, profit sharing,
      participation or other interest in any corporation, partnership, limited
      liability company, joint venture or other entity.

    

    6.2 
      As of
      the Closing, the Company’s authorized capital will consist of (a) 100,000,000
      shares of common stock, $.0001 no par value per share, authorized (the “Common
      Stock”), of which 7,075,000 shares are issued and outstanding, 6,000,000 of
      which are freely tradeable without any restrictions or Encumbrances and
      1,075,000 of which are restricted under the Securities Act, (i) with each holder
      thereof being entitled to cast one vote for each share held on all matters
      properly submitted to the shareholders for their vote; and (ii) there being
      no
      pre-preemptive rights and no cumulative voting; and (b) no shares of preferred
      stock or any other class of security. The recent cancellation of 8 million
      shares of Common Stock by the Company was duly authorized. The Company has
      no
      shares reserved for issuance pursuant to a stock option plan or pursuant to
      securities exercisable for, or convertible into or exchangeable for shares
      of
      Common Stock. All of the issued and outstanding shares of capital stock of
      the
      Company are duly authorized, validly issued, fully paid and nonassessable.
      No
      shares of capital stock of the Company are subject to preemptive rights or
      any
      other similar rights. There are (i) no outstanding options, warrants, scrip,
      rights to subscribe for, puts, calls, rights of first refusal, agreements,
      understandings, claims or other commitments or rights of any character
      whatsoever relating to, or securities or rights convertible into or exchangeable
      for any shares of capital stock of the Company or arrangements by which the
      Company is or may become bound to issue additional shares of capital stock
      of
      the Company, (ii) no agreements or arrangements under which the Company is
      obligated to register the sale of any of its or their securities under the
      Securities Act, and (iii) no anti-dilution or price adjustment provisions
      contained in any security issued by the Company (or in any agreement providing
      any such rights). 

    

    6.3 Upon
      the
      consummation of the transactions contemplated herein, Purchasers will own 100%
      of the issued and outstanding share capital of the Company on a fully-diluted
      basis, free and clear of any Encumbrances, other than those created by
      applicable federal and state securities laws.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    6.4 The
      Company has timely filed all reports, schedules, forms, statements and other
      documents required to be filed by it with the Securities and Exchange Commission
      (the “SEC”) pursuant to the reporting requirements of the Securities Exchange
      Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to
      the date hereof and all exhibits included therein and financial statements
      and
      schedules thereto and documents (other than exhibits to such documents)
      incorporated by reference therein, being hereinafter referred to herein as
      the
“SEC Documents”). As of their respective dates, the SEC Documents complied in
      all material respects with the requirements of the 1934 Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. None of the statements made in any such SEC Documents is, or has
      been, required to be amended or updated under applicable law (except for such
      statements as have been amended or updated in subsequent filings prior the
      date
      hereof). The Company has not received any communication from the SEC, NASD
      or
      any other regulatory authority regarding any SEC Document or any disclosure
      contained therein. As of their respective dates, the financial statements of
      the
      Company included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the SEC with respect thereto. Such financial statements have
      been
      prepared in accordance with United States generally accepted accounting
      principles, consistently applied, during the periods involved (except (i) as
      may
      be otherwise indicated in such financial statements or the notes thereto, or
      (ii) in the case of unaudited interim statements, to the extent they may not
      include footnotes or may be condensed or summary statements) and fairly present
      in all material respects the financial position of the Company as of the dates
      thereof and the results of their operations and cash flows for the periods
      then
      ended (subject, in the case of unaudited statements, to normal year-end audit
      adjustments). As of the Closing, the Company has no debts, liabilities,
      obligations, direct, indirect, absolute or contingent, whether accrued, vested
      or otherwise, whether known or unknown.

    

    6.5 The
      Company does not (i) have any employees, (ii) owe any compensation of any kind,
      deferred or otherwise, to any person, including without limitation, agents,
      representatives, consultants, accountants and attorneys, (iii) have any written
      or oral employment agreement with any person, nor (iv) is it a party to or
      bound
      by any collective bargaining agreement. There are no loans or other obligations
      payable to or owing by the Company to any stockholder, officer, director, agent,
      representative, consultant, accountant, attorney or otherwise nor are there
      any
      loans or debts payable or owing by any such persons to the Company or any
      guarantees by the Company of any loan or obligation of any nature to which
      any
      such person is a party.

    

    6.6 Except
      as
      disclosed in the SEC Documents, the Company does not own, use or possesses
      any
      licenses or rights to use any patents, patent applications, patent rights,
      inventions, know-how, trade secrets, trademarks, trademark applications, service
      marks, service names, trade names and copyrights (“Intellectual Property”).
      There is no claim or action by any person pertaining to, or proceeding pending
      or threatened, which challenges the right of the Company with respect to any
      Intellectual Property.

    

    6.7 The
      Company is not a party to any contract, arrangement or agreement, whether oral
      or in writing, including without limitation, loan agreements, credit lines,
      promissory notes, mortgages, pledges, guarantees, security agreements, factoring
      agreements, letters of credit, powers of attorney or other arrangements to
      loan
      or borrow money or extend credit.

    

    6.8 The
      Company has made or filed all federal, state and foreign income and all other
      tax returns, reports and declarations required by any jurisdiction to which
      it
      is subject and has paid all taxes and other governmental assessments and charges
      that are material in amount, shown or determined to be due on such returns,
      reports and declarations. There are no and will be no taxes due as a result
      of
      the transactions contemplated by this Agreement. There are no unpaid taxes
      claimed to be due by the taxing authority of any jurisdiction, and neither
      Principal knows of no basis for any such claim. The Company has not executed
      a
      waiver with respect to the statute of limitations relating to the assessment
      or
      collection of any foreign, federal, state or local tax. None of the Company’s
      tax returns is presently being audited by any taxing authority. The Principals
      expressly assume and shall pay any taxes due by the Company up to the date
      of
      the Closing.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    6.9 The
      Company is in possession of all franchises, grants, authorizations, licenses,
      permits, easements, variances, exemptions, consents, certificates, approvals
      and
      orders necessary to own, lease and operate its properties and to carry on its
      business as it is now being conducted (collectively, the “Permits”), and there
      is no action pending or threatened regarding suspension or cancellation of
      any
      of the Permits. The Company is not in conflict with, or in default or violation
      of, any of the Permits. The Company has not received any notification with
      respect to possible conflicts, defaults or violations of applicable laws, except
      for notices relating to possible conflicts, defaults or violations.

    

    6.10 There
      are, with respect to the Company or any predecessors thereof, no past or present
      violations of Environmental Laws (as defined below), releases of any material
      into the environment, actions, activities, circumstances, conditions, events,
      incidents, or contractual obligations which may give rise to any common law
      environmental liability or any liability under the Comprehensive Environmental
      Response, Compensation and Liability Act of 1980 or similar federal, state,
      local or foreign laws and the Company has not received any notice with respect
      to any of the foregoing, nor is any action pending or threatened in connection
      with any of the foregoing. The term “Environmental Laws” means all federal,
      state, local or foreign laws relating to pollution or protection of human health
      or the environment (including, without limitation, ambient air, surface water,
      groundwater, land surface or subsurface strata), including, without limitation,
      laws relating to emissions, discharges, releases or threatened releases of
      chemicals, pollutants contaminants, or toxic or hazardous substances or wastes
      (collectively, “Hazardous Materials”) into the environment, or otherwise
      relating to the manufacture, processing, distribution, use, treatment, storage,
      disposal, transport or handling of Hazardous Materials, as well as all
      authorizations, codes, decrees, demands or demand letters, injunctions,
      judgments, licenses, notices or notice letters, orders, permits, plans or
      regulations issued, entered, promulgated or approved thereunder. Other than
      those that are or were stored, used or disposed of in compliance with applicable
      law, no Hazardous Materials are contained on or about any real property
      currently owned, leased or used by the Company, and no Hazardous Materials
      were
      released on or about any real property previously owned, leased or used by
      the
      Company. There are no underground storage tanks on or under any real property
      owned, leased or used by the Company.

    

    6.11 The
      Company does not own any real or personal property.

    

    6.12 The
      Company maintains a system of internal accounting controls sufficient, in the
      judgment of the Company’s board of directors, 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 or specific
      authorization, and (iv) the recorded accountability for assets is compared
      with
      the existing assets at reasonable intervals and appropriate action is taken
      with
      respect to any differences. The books of account, corporate records and minute
      books of the Company are complete and correct in all material respects.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    6.13 All
      information relating to or concerning the Company set forth in this Agreement
      and otherwise in connection with the transactions contemplated hereby is true
      and correct in all respects and neither Principal has omitted to state any
      fact
      necessary in order to make the statements made herein or therein, in light
      of
      the circumstances under which they were made, not misleading. No event or
      circumstance has occurred or exists with respect to the Company or its or their
      business, properties, prospects, operations or financial conditions, which,
      under applicable law, rule or regulation, requires public disclosure or
      announcement by the Company but which has not been so publicly announced or
      disclosed.

    

    6.14 The
      purchase of the Shares by Purchaser from Seller will not give rise to any
      dissenting shareholders' rights under Delaware law, the Articles of
      Incorporation or By-laws of the Company, or otherwise. All issuances by the
      Company of shares of Common Stock in past transactions have been legally and
      validly effected, and all of such shares of Common Stock are fully paid and
      non-assessable. All of the offerings were conducted in strict accordance with
      the requirements of Regulation D, Rules 504, 505 and 506, as applicable, in
      full
      compliance with the requirements of the Securities Act and the 1934 Act, as
      applicable, and in full compliance with and according to the requirements of
      Delaware law and the Articles of Incorporation and By-laws of the Company.
      The
      Company does not have in effect any plan, scheme, device or arrangement,
      commonly or colloquially known as a “poison pill” or “anti-takeover” plan or
      similar plan, scheme, device or arrangement. No other state takeover statute
      or
      similar statute or regulation applies or purports to apply to this agreement
      or
      the transactions contemplated hereby.

    

    7. Representations
      and Warranties of Purchaser.
      As an
      inducement to Sellers to enter into this Agreement and to consummate the
      transactions contemplated herein, each Purchaser severally and not jointly,
      represents and warrants, to Sellers as follows:

    

    7.1  Authority.
      Purchaser has the right, power, authority and capacity to execute and deliver
      this Agreement, to consummate the transactions contemplated hereby and to
      perform his obligations under this Agreement. This Agreement constitutes the
      legal, valid and binding obligations of Purchaser, enforceable against Purchaser
      in accordance with the terms hereof.

    

    7.2
       No
      Consent.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with
      any governmental authority or any other person is required for the consummation
      by the Purchaser of any of the transactions on its part contemplated under
      this
      Agreement.

    

    7.3 No
      Conflict.
      None of
      the execution, delivery, or performance of this Agreement, and the consummation
      of the transactions contemplated hereby, conflicts or will conflict with, or
      (with or without notice or lapse of time, or both) result in a termination,
      breach or violation of (i) any instrument, contract or agreement to which
      Purchaser is a party or by which he is bound; or (ii) any federal, state, local
      or foreign law, ordinance, judgment, decree, order, statute, or regulation,
      or
      that of any other governmental body or authority, applicable to Purchaser.
      

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    7.4
       Potential
      Loss of Investment.
      Purchaser understands that an investment in the Shares is a speculative
      investment which involves a high degree of risk and the potential loss of his
      entire investment. 

    

    7.5  Receipt
      of Information.
      Purchaser has received all documents, records, books and other information
      pertaining to his investment that has been requested by the Purchaser, including
      without limitation, the SEC filings made by the Company. The undersigned makes
      such representation notwithstanding his express acknowledgment that the
      information about Amplification Technologies, Inc. is not in the form that
      would
      be required in a registration statement filed with the SEC.

     

    7.6 No
      Advertising.
      At no
      time was the Purchaser presented with or solicited by any leaflet, newspaper
      or
      magazine article, radio or television advertisement, or any other form of
      general advertising or solicited or invited to attend a promotional meeting
      otherwise than in connection and concurrently with such communicated
      offer.

    

    7.7
      Investment
      Experience.
      The
      Purchaser (either by himself or with his advisors) is (i) experienced in making
      investments of the kind described in this Agreement, (ii) able, by reason of
      his
      business and financial experience to protect his own interests in connection
      with the transactions described in this Agreement, and (iii) able to afford
      the
      entire loss of his investment in the Shares.

    

    The
      following representations are only being made by the Purchasers who are
      purchasing Shares which are restricted securities of the Company:

    

    7.8
       Restricted
      Securities.
      Purchaser understands that the restricted Shares have not been registered under
      the Securities Actor registered or qualified under any the securities laws
      of
      any state or other jurisdiction, are “restricted securities,” and cannot be
      resold or otherwise transferred unless they are registered under the Securities
      Act, and registered or qualified under any other applicable securities laws,
      or
      an exemption from such registration and qualification is available. Each
      certificate for any of the restricted Shares shall bear a legend to the
      foregoing effect.

    

    7.9 Investment
      Purposes.
      The
      Purchaser is acquiring the restricted Shares for his own account as principal,
      not as a nominee or agent, for investment purposes only, and not with a view
      to,
      or for, resale, distribution or fractionalization thereof in whole or in part
      and no other person has a direct or indirect beneficial interest in the amount
      of restricted Shares the Purchaser is acquiring herein. Further, the Purchaser
      does not have any contract, undertaking, agreement or arrangement with any
      person to sell, transfer or grant participations to such person or to any third
      person, with respect to the restricted Shares the Purchaser is
      acquiring.

    

    7.10 No
      Obligation to Register Shares.
      The
      Purchaser understands that the Company is under no obligation to register the
      restricted Shares under the Securities Act, or to assist the Purchasers in
      complying with the Securities Act or the securities laws of any state of the
      United States or of any foreign jurisdiction.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    8.
       Indemnification;
      Survival.
      

    

    8.1
       Indemnification.
      Each
      party hereto shall jointly and severally indemnify and hold harmless the other
      party and such other party’s agents, beneficiaries, affiliates, representatives
      and their respective successors and assigns (collectively, the “Indemnified
      Persons”) from and against any and all damages, losses, liabilities, taxes and
      costs and expenses (including, without limitation, attorneys’ fees and costs)
      (collectively, “Losses”) resulting directly or indirectly from (a) any
      inaccuracy, misrepresentation, breach of warranty or non-fulfillment of any
      of
      the representations and warranties of such party in this Agreement, or any
      actions, omissions or statements of fact inconsistent with in any material
      respect any such representation or warranty, (b) any failure by such party
      to
      perform or comply with any agreement, covenant or obligation in this Agreement.
      

    

    8.2
       Survival.
      All
      representations, warranties, covenants and agreements of the parties contained
      herein or in any other certificate or document delivered pursuant hereto shall
      survive the date hereof until the expiration of the applicable statute of
      limitations.

    

    9.
       Miscellaneous.
      

    

    9.1 Further
      Assurances.
      From
      time to time, whether at or following the Closing, each party shall make
      reasonable commercial efforts to take, or cause to be taken, all actions, and
      to
      do, or cause to be done, all things reasonably necessary, proper or advisable,
      including as required by applicable laws, to consummate and make effective
      as
      promptly as practicable the transactions contemplated by this
      Agreement.

    

    9.2
       Notices.
      All
      notices or other communications required or permitted hereunder shall be in
      writing shall be deemed duly given (a) if by personal delivery, when so
      delivered, (b) if mailed, three (3) business days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid and
      addressed to the intended recipient as set forth below, or (c) if sent through
      an overnight delivery service in circumstances to which such service guarantees
      next day delivery, the day following being so sent to the addresses of the
      parties as indicated on the signature page hereto. Any party may change the
      address to which notices and other communications hereunder are to be delivered
      by giving the other parties notice in the manner herein set forth.

    

    9.3
       Choice
      of Law.
      This
      Agreement shall be governed, construed and enforced in accordance with the
      laws
      of the State of New York, without giving effect to principles of conflicts
      of
      law.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    9.4
       Jurisdiction.
      The
      parties hereby irrevocably consent to the in personam jurisdiction and venue
      of
      in a Rabbinical Court in Brooklyn, New York under the principal of ZABLU
      (whereby each party picks one arbitrator and the two selected arbitrators pick
      a
      third arbitrator). If there is any litigation regarding the arbitration or
      otherwise relating to this section 9.4, the parties hereto irrevocably consent
      to the jurisdiction of the courts of the State of New York and of any federal
      court located in such State in connection with any action or proceeding arising
      out of or relating to this Agreement, any document or instrument delivered
      pursuant to, in connection with or simultaneously with this Agreement, or a
      breach of this Agreement or any such document or instrument. In any such action
      or proceeding, each party hereto waives personal service of any summons,
      complaint or other process and agrees that service thereof may be made in
      accordance with Section 5.3. Within 30 days after such service, or such other
      time as may be mutually agreed upon in writing by the attorneys for the parties
      to such action or proceeding, the party so served shall appear or answer such
      summons, complaint or other process. EACH
      PARTY HERETO WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING ARISING
      OUT
      OF THIS AGREEMENT OR ANY BREACH OR ALLEGED BREACH HEREOF.

     

    9.5 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding of the parties
      in
      respect of the transactions contemplated hereby and supersedes all prior and
      contemporaneous agreements, arrangements and understandings of the parties
      relating to the subject matter hereof. No representation, promise, inducement,
      waiver of rights, agreement or statement of intention has been made by any
      of
      the parties which is not expressly embodied in this Agreement.

    

    9.6 Assignment.
      Each
      party's rights and obligations under this Agreement shall not be assigned or
      delegated, by operation of law or otherwise, without the other party's prior
      written consent, and any such assignment or attempted assignment shall be void,
      of no force or effect, and shall constitute a material default by such party.
      

    

    9.7
       Amendments.
      This
      Agreement may be amended, modified, superseded or cancelled, and any of the
      terms, covenants, representations, warranties or conditions hereof may be
      waived, only by a written instrument executed by the parties
      hereto.

    

    9.8 Waivers.
      The
      failure of any party at any time or times to require performance of any
      provision hereof shall in no manner affect the right at a later time to enforce
      the same. No waiver by any party of any condition, or the breach of any term,
      covenant, representation or warranty contained in this Agreement, whether by
      conduct or otherwise, in any one or more instances shall be deemed to be or
      construed as a further or continuing waiver of any such condition or breach
      or a
      waiver of any other term, covenant, representation or warranty of this
      Agreement.

    

    9.9 Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts and by
      facsimile, each of which shall be deemed an original, but all of which together
      shall constitute one and the same instrument.

    

    9.10 Severability. 
      If any
      term, provisions, covenant or restriction of this Agreement is held by a court
      of competent jurisdiction or other authority to be invalid, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions of this Agreement shall remain in full force and effect and shall
      in no way be affected, impaired or invalidated so long as the economic or legal
      substance of the transactions contemplated hereby is not affected in any manner
      materially adverse to any party. Upon such determination, the parties shall
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the parties as closely as possible in an acceptable manner in order
      that the transactions contemplated hereby be consummated as originally
      contemplated to the fullest extent possible. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    9.11
       Interpretation.
      The
      parties agree that this Agreement shall be deemed to have been jointly and
      equally drafted by them, and that the provisions of this Agreement therefore
      shall not be construed against a party or parties on the ground that such party
      or parties drafted or was more responsible for the drafting of any such
      provision(s). The parties further agree that they have each carefully read
      the
      terms and conditions of this Agreement, that they know and understand the
      contents and effect of this Agreement and that the legal effect of this
      Agreement has been fully explained to its satisfaction by counsel of its own
      choosing.

     

    [Remainder
      of Page Intentionally Omitted; Signature Page to Follow]

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Stock Purchase Agreement
      as
      of the date first above written.

    

    Number
      of
      restricted Shares: ___________

    

    Number
      of
      unlegended Shares: ___________

    

    
      	
              SELLER:

            
	 	 
	
              By:
                

            	
               

            
	
              Name:

            	 
	
              Title:

            	 
	 	 
	 	 
	
              PURCHASER:

            
	 	 
	 	 
	
              By:
                

            	
               

            
	
              Name:

            	 
	
              Title:
                

            	 

    

     

     

    
      	
              ADMINISTRATIVE
                AGENT:

            
	 	 
	
              By:

            	
               

            
	
              Name:
                Michael Krohme, Esq.

            

    

     

    
      	
               

            
	
              Einat
                Krasney, individually and personally

            
	 
	
               

            
	
              Mordechai
                Schwartz, individually and
                personally

            

    

     

    
      
        
        

      

      
        13

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