Document:

EXHIBIT
      4.4

    

    SUBSCRIPTION
      FOR UNITS

     

    (Part
      5
      Accredited Investor Exemption Pursuant to “National Instrument 45-106
      -
      Prospectus and Registration Exemptions”
-
      

    Alberta
      and British Columbia Residents Only)

    

    TO:  Deep
      Well Oil & Gas, Inc. (the "Corporation")

    510
      Royal Bank Building

    10117
      Jasper Avenue, AB T5J 1W8

    

    The
      undersigned subscriber (the “Subscriber”) acknowledges that the Corporation is
      proceeding with an Offering of units (“Units”) at the Unit Price for gross
      proceeds of US$5,000,000. Each Unit is comprised of one (1) Common Share, one
      (1) Whole
      Warrant
      and one (1) Additional Fractional Warrant. Each Whole Warrant entitles the
      holder to purchase one (1) Common Share at a price of one and one-half (1.5)
      times the Unit Price for a period of three years from the Closing Date. Each
      Additional Fractional Warrant entitles the holder to purchase the Applicable
      Fraction of one Common Share at a price of two (2) times the Unit Price for
      a
      period of three years from the Closing Date. The undersigned Subscriber hereby
      tenders to the Corporation this subscription offer which, upon acceptance by
      the
      Corporation, will constitute an agreement of the Subscriber to subscribe for,
      take up, purchase and pay for and, on the part of the Corporation, to issue
      and
      sell to the Subscriber, the Number of Units at the Subscription Price on the
      terms and subject to the conditions set out in this Subscription Agreement.
      Until the Closing of the Offering, all subscription funds shall be held in
      a
      non-interest bearing account of the Corporation. Upon Closing of the Offering,
      all of the subscription proceeds (net of expenses thereon) will be released
      to
      the Corporation. In the event the Offering does not close, any and all
      subscription proceeds will be returned to subscribers without interest,
      deduction or penalty. The Subscriber hereby acknowledges and agrees that the
      terms and conditions contained in the attached Schedule “A” form part of this
      Subscription Agreement and are incorporated herein by reference.

     

    
      	 	 	Subscription
              Price:
               

              US$5,000,000

            
	
              
Name
              of Subscriber - please print	 	
            
	 	 	 
	
              By:            
                

              
                

              

              Authorized
                Signature

            	 	No. of Common
              Shares
              Currently Held (excluding Common Shares comprising the Units subscribed
              for herein):
	 

              
Official
              Capacity or Title - please
              print	 	
              13,362,494
                Common Shares (not including the warrants issued to the Subscriber
                on June
                22, 2007)

            
	
              Date: 

              
                

              

            	 	  

              

              Register
                the Units as set forth below:

            
	 

              
(Please
              print name of individual whose signature
              appears above if different than the name of the Subscriber printed
              above.)	 	
              

                
                  

                

              
Name
	 

              
Subscriber's
              Address	 	 

              
Address
	
            	 	
               

               

            
	 

              
Facsimile
              Number	 	
              Address 

               

              
                

              

            
	 

              

              Telephone
                Number    E-Mail
                Address

            	 	 

    

     

    ACCEPTANCE:
      The
      Corporation hereby accepts the above subscription as of this 14th
      day
      of
      August, 2008 and the Corporation represents and warrants to the Subscriber
      that
      the representations and warranties made by the Corporation are true and correct
      in all material respects as in all material respects as of this date and that
      the Subscriber is entitled to rely thereon.

     

    
      	 	 	 
	 	
              DEEP
                WELL OIL & GAS, INC.

            
	 
 	 
 	 
 
	 	By:  	
            
	 	
              

            

    

     

    This
      is the first page of an agreement comprised of 8 pages (not including
      Exhibits).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “A” -TERMS AND CONDITIONS OF SUBSCRIPTION FOR

    UNITS
      OF DEEP WELL OIL & GAS, INC.

     

    Definitions

     

    In
      this
      Subscription Agreement:

     

    
      	 	
              (a)

            	
              “Additional
                Fractional Warrant”
                means the Applicable Fraction of one Common Share purchase warrant
                of the
                Corporation which entitles the holder to purchase the Applicable
                Fraction
                of one Common Share of the Corporation at a price equal to two (2)
                times
                the Unit Price for a period of three (3) years from the Closing
                Date;

            

    

     

    
      	 	
              (b)

            	
              “Applicable
                Fraction” means
                the fraction obtained by dividing 2,000,000 by the Number of
                Units;

            

    

     

    
      	 	
              (c)

            	
              “Closing”
                or “Closing
                Date”
                means the closing of the Offering initially expected to occur on
                or about
                October 31, 2008 or such other date or dates as may be determined
                by the
                Corporation in its sole discretion and such other subsequent closings
                as
                may be required to complete the
                Offering;

            

    

     

    
      	 	
              (d)

            	
              “Common
                Share” means
                a common share in the capital stock of the
                Corporation;

            

    

     

    
      	 	
              (e)

            	
              “Corporation”
                means Deep Well Oil & Gas,
                Inc.;

            

    

     

    
      	 	
              (f)

            	
              “NI
                45-102” means
                National Instrument 45-102 - Resale
                of Securities; 

            

    

     

    
      	 	
              (g)

            	
              “NI
                45-106” means
                National Instrument 45-106 - Prospectus
                and Registration Exemptions; 

            

    

     

    
      	 	
              (h)

            	
              “Number
                of Units” means
                the number of Units calculated by dividing US$5,000,000 by the Unit
                Price;

            

    

     

    
      	 	
              (i)

            	
              “Offering”
                means the offering of Units by the Corporation at the Unit
                Price;

            

    

     

    
      	 	
              (j)

            	
              “Securities”
                means the Units, the Common Shares and the Warrants comprising the
                Units,
                and the Warrant Shares;

            

    

     

    
      	 	
              (k)

            	
              “Subscriber”
                means the person or company identified as the Subscriber on the face
                page
                of this Subscription Agreement;

            

    

     

    
      	 	
              (l)

            	
              “Subscription
                Agreement”
                means this agreement, together with the exhibits attached hereto,
                as
                amended or supplemented from time to
                time;

            

    

     

    
      	 	
              (m)

            	
              “Subscription
                Price”
                means the aggregate subscription price paid by the Subscriber, being
                US$5,000,000;

            

    

     

    
      	 	
              (n)

            	
              “Unit” means
                a unit consisting of one (1) Common Share, one (1) Whole Warrant
                and one
                (1) Additional Fractional Warrant; 

            

    

     

    
      	 	
              (o)

            	
              “Unit
                Price” means
                the unit price which is equal to the lower of: (a) US$0.75 per Unit;
                or
                (b) the VWAP for the 30 day period commencing on October 1, 2008
                to and
                including October 30, 2008 less 10%, but subject to a minimum price
                of
                US$0.40;

            

    

     

    
      	 	
              (p)

            	
              “VWAP”
                means the volume weighted average trading price of the Common Shares
                quoted on the Pink Sheets, Electronic OTC Markets;
                

            

    

     

    
      	 	
              (q)

            	
              “Warrant”
                means either an Additional Fractional Warrant or a Whole Warrant
                and
                “Warrants”
                means both Additional Fractional Warrants and Whole
                Warrants;

            

    

     

    
      	 	
              (r)

            	
              “Whole Warrant”
                means one (1) Common Share purchase warrant of the Corporation entitling
                the holder to purchase one (1) Common Share of the Corporation at
                a price
                equal to one and one-half (1.5) times the Unit Price for a period
                of three
                (3) years from the Closing Date;
                and

            

    

     

    
      	 	
              (s)

            	
              “Warrant
                Share”
                means a Common Share issuable upon exercise of a
                Warrant.

            

    

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    Terms
      of the Offering

     

    1. The
      Subscriber hereby confirms its subscription for and agrees to take up the Number
      of Units as determined pursuant to the provisions of this Subscription Agreement
      and delivers herewith a certified cheque or bank draft payable to the
      Corporation in the amount of the Subscription Price and authorizes the
      Corporation to release the said funds for use by the Corporation on Closing
      against delivery to the Subscriber of duly issued certificates representing
      the
      Common Shares and Warrants comprising the Number of Units subscribed for
      herein.

     

    2. The
      Subscriber acknowledges that the Units subscribed for hereunder consist of
      a
      sale by the Corporation of Units of the Corporation at the Unit
      Price.

     

    3. The
      Subscriber acknowledges that if the Offering does not close on any subscriptions
      received, the amounts received for subscriptions will be promptly returned
      by
      the Corporation to subscribers without interest, deduction or penalty. The
      Units
      offered are subject to acceptance by the Corporation and to rejection or
      allotment by the Corporation in whole or in part and the Corporation reserves
      the right to discontinue the Offering at any time without notice.

     

    4. The
      Subscriber acknowledges that this Subscription Agreement and the Exhibits hereto
      require the Subscriber to provide certain personal information to the
      Corporation. Such information is being collected by the Corporation for the
      purposes of completing the Offering, which includes, without limitation,
      determining the Subscriber's eligibility to purchase the Units under applicable
      securities legislation, preparing and registering certificates representing
      Units to be issued to the Subscriber and completing filings required by any
      stock exchange or securities regulatory authority. The Subscriber's personal
      information may be disclosed by the Corporation to: (a) stock exchanges or
      securities regulatory authorities, (b) the Corporation's registrar and
      transfer agent, and (c) any of the other parties involved in the Offering,
      including legal counsel and may be included in record books in connection with
      the Offering. By executing this Subscription Agreement, the Subscriber is deemed
      to be consenting to the foregoing collection, use and disclosure of the
      Subscriber's personal information. The Subscriber also consents to the filing
      of
      copies or originals of any of the Subscriber's documents described in
      Section 11
      hereof
      as may be required to be filed with any stock exchange or securities regulatory
      authority in connection with the transactions contemplated hereby.

     

    5. THE
      SUBSCRIBER FURTHER ACKNOWLEDGES THAT AN INVESTMENT IN THE UNITS MUST BE
      CONSIDERED SPECULATIVE AND IS SUBJECT TO A NUMBER OF RISK FACTORS. THE
      SUBSCRIBER COVENANTS AND AGREES TO COMPLY WITH NI 45-106, NI 45-102 AND ANY
      OTHER APPLICABLE SECURITIES LEGISLATION, RULES, REGULATIONS, ORDERS OR POLICIES
      CONCERNING THE PURCHASE, HOLDING OF, AND RESALE OF THE SECURITIES. THE
      SECURITIES ARE SUBJECT TO RESALE RESTRICTIONS AND WILL BEAR A LEGEND TO THAT
      EFFECT.

     

    6. In
      addition to one manually signed, completed copy of this Subscription Agreement,
      the Subscriber will execute and deliver to the Corporation all other
      documentation as may be required by applicable securities legislation, rules,
      policy statements, and orders, including NI 45-106, to permit the issue and
      sale of the Units. The Subscriber acknowledges and agrees that any such
      documentation, when executed and delivered by the Subscriber, will form part
      of
      and will be incorporated into this Subscription Agreement with the same effect
      as if each constituted a representation and warranty or covenant of the
      Subscriber hereunder in favour of the Corporation, and the Subscriber consents
      to the filing of such documents and/or information contained in such documents
      as may be required to be filed with any securities or the regulatory authority
      in connection with the transactions contemplated hereby.

     

    Representations,
      Warranties and Covenants by Subscriber

     

    7. The
      Subscriber represents, warrants and covenants to the Corporation (and
      acknowledges that the Corporation and its counsel are relying thereon) both
      at
      the date hereof and at the Closing Date that:

     

    
      	
              (a)

            	
              the
                Subscriber has been independently advised as to restrictions with
                respect
                to trading in the Units imposed by applicable securities legislation,
                confirms that no representation has been made to it by or on behalf
                of the
                Corporation with respect thereto, acknowledges that it is aware of
                the
                characteristics of the Units, the risks relating to an investment
                therein
                and of the fact that it may not be able to resell the Securities
                except in
                accordance with limited exemptions under applicable securities legislation
                and regulatory policy, including NI 45-102 and the United States
                Securities Act of 1933, as amended (as defined below) until expiry
                of the
                applicable restricted period and compliance with the other requirements
                of
                applicable law; and the Subscriber agrees that any certificates
                representing the Securities, and all certificates issued in exchange
                therefor or in substitution thereof, will bear a legend indicating
                that
                the resale of such Securities is restricted;
                and

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)

            	
              the
                Subscriber has not received or been provided with, nor has it requested,
                nor does it have any need to receive, any offering memorandum, or
                any
                other document (other than an annual report, annual information form,
                interim report, information circular or any other continuous disclosure
                document, the content of which is prescribed by statute or regulation)
                describing the business and affairs of the Corporation which has
                been
                prepared for delivery to, and review by, prospective purchasers in
                order
                to assist it in making an investment decision in respect of the Units;
                and

            

    

     

    
      	
              (c)

            	
              the
                Subscriber has been afforded the opportunity (i) to ask such questions
                as
                it deemed necessary of, and to receive answers from, representatives
                of
                the Corporation concerning the terms and conditions of the offering
                of the
                Units and (ii) to obtain such additional information which the Corporation
                possesses or can acquire without unreasonable effort or expense that
                the
                Subscriber considered necessary in connection with its decision to
                invest
                in the Units; and

            

    

     

    
      	
              (d)

            	
              this
                Agreement is made unconditionally as a result of the Subscriber’s desire
                to participate in the future development of the Corporation;
                and

            

    

     

    
      	
              (e)

            	
              the
                Subscriber is purchasing as principal and it knows that it is purchasing
                the Units pursuant to an exemption under NI 45-106 and, as a
                consequence, is restricted from using most of the civil remedies
                available
                under applicable securities legislation, may not receive information
                that
                would otherwise be required to be provided to it under applicable
                securities legislation, and the Corporation is relieved from certain
                obligations that would otherwise apply under applicable securities
                legislation; and

            

    

     

    
      	 	
              (i)

            	
              if
                a resident of Alberta,
                the Subscriber is a
                resident in or otherwise subject to the applicable securities laws
                of
                Alberta and
                it is an "accredited investor" as such term is defined in NI 45-106
                promulgated under the Securities
                Act
                (Alberta) and has concurrently executed and delivered a Representation
                Letter in the form attached as Exhibit 1
                to
                this Subscription Agreement; or

            

    

     

    
      	 	
              (ii)

            	
              if
                a resident of British Columbia,
                the Subscriber is a resident in or otherwise subject to the applicable
                securities laws of British Columbia and it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (British Columbia) and has concurrently executed and delivered a
                Representation Letter in the form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (f)

            	
              if
                the Subscriber is resident in any jurisdiction not referred to in
                Subsection 7(e)
                above:
                (a) the purchase of the Units does not contravene any of the applicable
                laws in the Subscriber’s jurisdiction of residence and does not trigger
                (i) any obligation to prepare and file a prospectus, an offering
                memorandum or similar document, or any other ongoing reporting
                requirements with respect to such purchase or otherwise, or (ii)
                any
                registration or other obligation on the part of the Corporation;
                (b) the
                sale of the Units as contemplated in the Subscription Agreement complies
                with or is exempt from applicable securities legislation of the
                Subscriber’s jurisdiction of residence and the Subscriber will provide
                such evidence of compliance with all such matters as the Corporation
                may
                request; (c) the Subscriber will comply with the provisions of Section
                5
                and Subsection 7(a) as if they were a resident of Alberta or British
                Columbia; and (d) and notwithstanding that the Subscriber is not
                a
                resident of Alberta or British Columbia, it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (Alberta) and/or the Securities
                Act
                (British Columbia) and
                has concurrently executed and delivered a Representation Letter in
                the
                form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (g)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	 	
              (i)

            	
              that
                any person will resell or repurchase any of the
                Securities;

            

    

     

    
      	 	
              (ii)

            	
              that
                any person will refund the purchase price of any of the
                Securities;

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              as
                to the future price or value of any of the Securities;
                or

            

    

     

    
      	 	
              (iv)

            	
              that
                any of the Securities will be listed and posted for trading on a
                stock
                exchange or that application has been made to list and post any of
                the
                Securities for trading on a stock exchange;
                and

            

    

     

    
      	
              (h)

            	
              the
                Subscriber has no knowledge of a “material fact” or “material change” (as
                those terms are defined by applicable securities legislation) in
                respect
                of the affairs of the Corporation that has not been generally disclosed
                to
                the public, other than knowledge relating directly to its subscription
                for
                the Units; and

            

    

     

    
      	
              (i)

            	
              the
                Corporation may complete additional financings in the future, and
                such
                future financings may have a dilutive effect on then-current security
                holders of the Corporation, including the Subscriber;
                and

            

    

     

    
      	
              (j)

            	
              it
                is aware that the Securities have not been and will not be registered
                under the United States Securities Act of 1933, as amended (“U.S.
                Securities Act”) and that the Securities may not be offered or sold in the
                United States or to, or for the account or benefit of, a U.S. Person
                (as
                defined in Regulation S under the U.S. Securities Act) (a "U.S. Person")
                without registration under the U.S. Securities Act or compliance
                with
                requirements of an exemption or exclusion from registration and the
                applicable laws of all applicable states and acknowledges that the
                Corporation has no present intention of filing a registration statement
                under the U.S. Securities Act in respect of the Securities;
                and

            

    

     

    
      	
              (k)

            	
              the
                Units have not been offered to the Subscriber in the United States;
                and

            

    

     

    
      	
              (l)

            	
              it
                is not a U.S. Person and is not purchasing the Units on behalf of,
                or for
                the account or benefit of, a U.S. Person;
                and

            

    

     

    
      	
              (m)

            	
              the
                Subscriber undertakes and agrees that it will not offer or sell the
                Securities in the United States unless such securities are registered
                under the U.S. Securities Act and the securities laws of all applicable
                states of the United States or an exemption or exclusion from such
                registration requirements is available, and further that it will
                not
                resell the Securities except in accordance with the provisions of
                applicable securities legislation, regulations, rules, policies and
                orders
                and stock exchange rules; and

            

    

     

    
      	
              (n)

            	
              it
                will not engage in hedging transactions with regard to the Securities
                except in compliance with the U.S. Securities Act;
                and

            

    

     

    
      	
              (o)

            	
              it
                understands and acknowledges that the Corporation must refuse to
                register
                any transfer of the Securities not made in accordance with an available
                exemption or exclusion from the registration requirements of the
                U.S.
                Securities Act or pursuant to registration under the U.S. Securities
                Act;
                and

            

    

     

    
      	
              (p)

            	
              if
                the Subscriber is a “distributor” (as defined in Regulation S under the
                U.S. Securities Act) or is an “affiliate” (as defined in Rule 405 under
                the U.S. Securities Act) of a distributor or is acting on behalf
                of a
                distributor, (i) it agrees that it will not offer or sell the Securities
                during the one year period after the completion of the distribution
                of the
                Units (the “Distribution Compliance Period”) to a U.S. Person or for the
                account or benefit of a U.S. Person (other than a distributor), and
                (ii)
                if it sells Securities to another distributor, a dealer (as defined
                in
                Section 2(a)(12) of the U.S. Securities Act) or a person receiving
                a
                selling concession fee or other remuneration, during the Distribution
                Compliance Period, the Subscriber agrees that it will send a written
                confirmation or other notice to the purchaser stating that the purchaser
                is subject to the same restrictions on offers and sales that apply
                to a
                distributor and setting forth the restrictions on offers and sales
                of
                Securities within the United States or to, or for the account or
                benefit
                of, U.S. Persons; and

            

    

     

    
      	
              (q)

            	
              the
                Subscriber understands and acknowledges that the Warrants may not
                be
                exercised by or on behalf of a U.S. Person unless the Warrant Shares
                issuable upon such exercise have been registered under the U.S. Securities
                Act or an exemption or exclusion from such registration is available;
                and

            

    

     

    
      	
              (r)

            	
              the
                Subscriber understands and acknowledges that each person exercising
                a
                Warrant will be required to provide either (i) written certification
                that
                it is not a U.S. Person and the Warrant is not being exercised on
                behalf
                of a U.S. Person, or (ii) a written opinion of counsel, of recognized
                standing reasonably satisfactory to the Corporation, to the effect
                that
                the Warrant being exercised and the Warrant Shares issuable upon
                such
                exercise have been registered under the U.S. Securities Act or are
                exempt
                from registration thereunder; and

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              (s)

            	
              if
                any Securities are being sold in the United States pursuant to Rule
                144
                under the U.S. Securities Act, the United States restrictive legend
                may be
                removed from the certificates representing the Securities by delivering
                to
                the Corporation a written opinion of counsel, of recognized standing
                reasonably satisfactory to the Corporation, to the effect that the
                legend
                is no longer required under applicable requirements of the U.S. Securities
                Act or state securities laws; and

            

    

     

    
      	
              (t)

            	
              if
                a corporation, partnership, unincorporated association or other entity,
                it
                has the legal capacity to enter into and be bound by this Subscription
                Agreement and further certifies that all necessary approvals of directors,
                shareholders or otherwise have been given and obtained;
                and

            

    

     

    
      	
              (u)

            	
              if
                an individual, it is of the full age of majority and is legally competent
                to execute this Subscription Agreement and take all action pursuant
                hereto; and

            

    

     

    
      	
              (v)

            	
              it
                acknowledges that the net subscription proceeds (gross proceeds less
                expenses, including legal fees which have not been paid by the
                Corporation), will be immediately releasable to the Corporation on
                the
                Closing Date or later closing dates, as the case may be;
                and

            

    

     

    
      	
              (w)

            	
              this
                Subscription Agreement has been duly and validly authorized, executed
                and
                delivered by and constitutes a legal, valid, binding and enforceable
                obligation of the Subscriber; and

            

    

     

    
      	
              (x)

            	
              the
                entering into of this Subscription Agreement and the transactions
                contemplated hereby will not result in a violation of any of the
                terms and
                provisions of any law applicable to it, or any of its constating
                documents, or of any agreement to which the Subscriber is a party
                or by
                which it is bound; and

            

    

     

    
      	
              (y)

            	
              in
                the case of a subscription by the Subscriber for Units acting as
                agent for
                a disclosed principal, it is duly authorized to execute and deliver
                this
                Subscription Agreement and all other necessary documentation in connection
                with such subscription on behalf of such principal and this Subscription
                Agreement has been duly authorized, executed and delivered by or
                on behalf
                of, and constitutes a legal, valid and binding agreement of, such
                principal; and

            

    

     

    
      	
              (z)

            	
              the
                Subscriber has such knowledge in financial and business affairs as
                to be
                capable of evaluating the merits and risks of the Subscriber’s investment
                and the Subscriber, or, where the Subscriber is acting as agent for
                a
                disclosed principal, each beneficial purchaser, is able to bear the
                economic risk of loss of the Subscriber’s entire investment in the Units;
                and

            

    

     

    
      	
              (aa)

            	
              except
                for the representations and warranties made by the Corporation herein,
                it
                has relied solely upon publicly available information relating to
                the
                Corporation and not upon any verbal or written representation as
                to fact
                or otherwise made by or on behalf of the Corporation and acknowledges
                that
                the Corporation's counsel are acting as counsel to the Corporation
                and not
                as counsel to the Subscriber; and

            

    

     

    
      	
              (bb)

            	
              the
                Subscriber understands that Units are being offered for sale only
                on a
                "private placement" basis and that the sale and delivery of the Units
                is
                conditional upon such sale being exempt from the requirements as
                to the
                filing of a prospectus or delivery of an offering memorandum or upon
                the
                issuance of such orders, consents or approvals as may be required
                to
                permit such sale without the requirement of filing a prospectus or
                delivering an offering memorandum and, as a consequence (i) it is
                restricted from using most of the civil remedies available under
                applicable securities legislation; (ii) it may not receive
                information that would otherwise be required to be provided to it
                under
                applicable securities legislation; and (iii) the Corporation is
                relieved from certain obligations that would otherwise apply under
                applicable securities legislation;
                and

            

    

     

    
      	
              (cc)

            	
              if
                required by applicable securities legislation, regulations, rules,
                policies or orders, NI 45-106, or by any securities commission, stock
                exchange or other regulatory authority, the Subscriber will execute,
                deliver, file and otherwise assist the Corporation in filing, such
                reports, undertakings and other documents with respect to the issue
                of the
                Units (including, without limitation, a completed and duly executed
                Representation Letter, attached as Exhibit 1);
                and

            

    

     

    
      	
              (dd)

            	
              the
                Subscriber will not resell the Securities except in accordance with
                the
                provisions of applicable securities legislation and stock exchange
                rules,
                if applicable, in the future; and

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (ee)

            	
              the
                Subscriber deals at arm's length with the Corporation within the
                meaning
                of the Income
                Tax Act
                (Canada) and will continue to deal at arm's length with the Corporation
                at
                all times which are relevant for this Subscription Agreement;
                and

            

    

     

    
      	
              (ff)

            	
              none
                of the funds the Subscriber is using to purchase the Units are, to
                the
                knowledge of the Subscriber, proceeds obtained or derived, directly
                or
                indirectly, as a result of illegal activities;
                and

            

    

     

    
      	
              (gg)

            	
              the
                funds representing the total Subscription Price which will be advanced
                by
                the Subscriber to the Corporation hereunder will not represent proceeds
                of
                crime for the purposes of the Proceeds
                of Crime (Money Laundering) and Terrorist Financing Act
                (Canada) (the "PCMLA") and the Subscriber acknowledges that the
                Corporation may in the future be required by law to disclose the
                Subscriber's name and other information relating to this Subscription
                Agreement and the Subscriber's subscription hereunder, on a confidential
                basis, pursuant to the PCMLA; and

            

    

     

    
      	
              (hh)

            	
              to
                the best of its knowledge, the subscription funds to be provided
                by the
                Subscriber (i) have not been or will not be derived from or related
                to any activity that is deemed criminal under the law of Canada,
                the
                United States of America, or any other jurisdiction, and (ii) are not
                being tendered on behalf of a person or entity who has not been identified
                to the Subscriber and the Subscriber shall promptly notify the Corporation
                if the Subscriber discovers that any of such representations cease
                to be
                true, and to provide the Corporation with appropriate information
                in
                connection therewith; and

            

    

     

    
      	
              (ii)

            	
              the
                Subscriber acknowledges that it has been encouraged to and should
                obtain
                independent legal, income tax and investment advice with respect
                to its
                subscription for these Units and accordingly, has been independently
                advised as to the meanings of all terms contained herein relevant
                to the
                Subscriber for purposes of giving representations, warranties and
                covenants under this Subscription
                Agreement.

            

    

     

    Representations,
      Warranties and Covenants of the Corporation

     

    8. The
      Corporation hereby represents and warrants to the Subscriber that it has been
      duly incorporated and is a valid and subsisting corporation under the laws
      of
      the State of Nevada, United States, is extra-provincially registered in the
      Province of Alberta, Canada and has full corporate power and authority to enter
      into this Subscription Agreement and to perform its obligations
      hereunder.

     

    9. The
      Corporation hereby covenants with the Subscriber that it will take all corporate
      action required to issue to the Subscriber the Units and the Common Shares
      and
      the Warrants comprising the Units on the Closing Date.

     

    Registration
      Rights

     

    10. If
      the
      Corporation proposes to register, pursuant to any registration rights agreement
      (a “Registration Rights Agreement”), for shareholders other than the Subscriber,
      any of its Common Shares or other equity securities (or securities convertible
      into equity securities) under the U.S. Securities Act in connection with the
      public offering of such securities solely for cash (other than a registration
      on
      Form S-8, Form S-4 or Form F-4), the Corporation will, at all such times,
      promptly give the Subscriber written notice of such proposed registration.
      Upon
      the written request of the Subscriber, given within 20 days after the mailing
      of
      such notice by the Corporation, the Corporation will, subject to the provisions
      of applicable Registration Rights Agreements, use its commercial best efforts
      to
      cause a registration statement covering all of the (i) Common Shares being
      acquired hereunder and (ii) Warrant Shares that each such holder has requested
      to be registered to become effective under the U.S. Securities Act. Only to
      the
      extent they apply to “piggy back” registrations, such registration shall also be
      subject to the other provisions of each applicable Registration Rights
      Agreement. For greater certainty, (i) such registration shall not be subject
      to
      any provisions of any Registration Rights Agreement that are applicable only
      to
“demand” registrations, and (ii) the Subscriber acknowledges that except as
      contemplated by this Section, the Corporation is under no obligation hereunder
      to register any of its securities or to complete any offering of its securities
      it proposes to make, and the Corporation will therefore incur no liability
      (including any penalties that may be incurred under a Registration Rights
      Agreement) to the Subscriber for its failure to register any of its securities
      or to complete any offering of its securities.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Closing

     

    11. The
      Subscriber agrees to deliver to the Corporation, not later than 4:30 p.m.
      (Edmonton time) on the Closing Date: (a) this duly completed and executed
      Subscription Agreement; (b) a certified cheque or bank draft payable to
      Deep Well Oil & Gas, Inc. for the Subscription Price of the Units subscribed
      for under this Subscription Agreement; (c) if the Subscriber is an
“accredited investor” in Alberta a fully completed and duly executed
      Representation Letter, attached as Exhibit
      1
      hereto;
      or (d) if the Subscriber is an “accredited investor” in British Columbia a
      fully completed and duly executed Representation Letter, attached as
Exhibit
      1
      hereto;
      or (e)
      if the Subscriber is purchasing Units pursuant to Subsection 7(f)
      a fully
      completed and duly executed Representation Letter, attached as Exhibit
      1
      hereto.

     

    12. The
      Subscriber acknowledges that the Corporation does not issue fractions of Common
      Shares or distribute certificates which evidence fractional Common Shares and
      as
      a result, agrees that on the Closing Date, the Corporation shall not be required
      to issue a warrant certificate for the Additional Fractional Warrants subscribed
      for hereunder, but instead, in full satisfaction thereof, shall issue to the
      Subscriber a warrant certificate for the applicable number of whole Common
      Share
      purchase warrants (as calculated by the Corporation acting in good faith)
      entitling the Subscriber to purchase the applicable number of whole Common
      Shares at a price equal to two (2) times the Unit Price for a period of three
      (3) years from the Closing Date.

     

    13. The
      purchase and sale of the Units pursuant to this Subscription Agreement will
      be
      completed at the offices of the Corporation’s solicitors, Parlee
      McLaws llp,
      in
      Edmonton, Alberta on the Closing Date or such other place or time as the
      Corporation decides in its sole discretion. On the Closing Date, the Corporation
      shall receive all completed subscription agreements, including this Subscription
      Agreement, and the Subscription Price against delivery by the Corporation of
      the
      certificates representing the Units.

     

    14. The
      Corporation shall be entitled to rely on delivery of a facsimile copy of
      executed subscriptions, and acceptance by the Corporation of such facsimile
      subscriptions shall be legally effective to create a valid and binding agreement
      between the Subscriber and the Corporation in accordance with the terms
      hereof.

     

    General

     

    15. The
      Subscriber agrees that the representations, warranties and covenants of the
      Subscriber herein will be true and correct both as of the execution of this
      Subscription Agreement and as of the Closing Date and will survive the
      completion of the issuance of the Units. The representations, warranties and
      covenants of the Subscriber herein are made with the intent that they be relied
      upon by the Corporation and it’s counsel in determining the eligibility of a
      purchaser of Units and the Subscriber agrees to indemnify the Corporation,
      including its respective affiliates, shareholders, directors, officers,
      partners, employees, advisors and agents, against all losses, claims, costs,
      expenses and damages or liabilities which any of them may suffer or incur which
      are caused or arise from a breach thereof. The Subscriber undertakes to
      immediately notify the Corporation at 510 Royal Bank Building, 10117 Jasper
      Avenue, Edmonton, Alberta, T5J 1W8, Attention: Curtis Sparrow (Fax Number:
      (780)
      409-8146), of any change in any statement or other information relating to
      the
      Subscriber set forth herein which takes place prior to the Closing
      Date.

     

    16. The
      obligations of the parties hereunder are subject to acceptance of the terms
      of
      the Offering by any required regulatory authority.

     

    17. The
      Subscriber acknowledges and agrees that all costs incurred by the Subscriber
      (including any fees and disbursements of any special counsel retained by the
      Subscriber) relating to the purchase of the Units by the Subscriber shall be
      borne by the Subscriber.

     

    18. The
      contract arising out of this Subscription Agreement and all documents relating
      thereto shall be governed by and construed in accordance with the laws of the
      Province of Alberta and the federal laws of Canada applicable therein. The
      parties irrevocably attorn to the exclusive jurisdiction of the courts of the
      Province of Alberta.

     

    19. Time
      shall be of the essence hereof.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    20. This
      Subscription Agreement represents the entire agreement of the parties hereto
      relating to the subject matter hereof and there are no representations,
      covenants or other agreements relating to the subject matter hereof except
      as
      stated or referred to herein.

     

    21. The
      terms
      and provisions of this Subscription Agreement shall be binding upon and enure
      to
      the benefit of the Subscriber and the Corporation and their respective heirs,
      executors, administrators, successors and assigns; provided that, except for
      the
      assignment by a Subscriber who is acting as agent to a beneficial disclosed
      purchaser and as otherwise herein provided, this Subscription Agreement shall
      not be assignable by any party without prior written consent of the other
      parties.

     

    22. The
      Subscriber, on its own behalf and, if applicable, on behalf of others for whom
      it is contracting hereunder, agrees that this subscription for the Number of
      Units subscribed for herein is made for valuable consideration and may not
      be
      withdrawn, cancelled, terminated or revoked by the Subscriber, on its own behalf
      and, if applicable, on behalf of others for whom it is contracting
      hereunder.

     

    23. Neither
      this Subscription Agreement nor any provision hereof shall be modified, changed,
      discharged or terminated except by an instrument in writing signed by the party
      against whom any waiver, change, discharge or termination is
      sought.

     

    24. The
      invalidity, illegality or unenforceability of any provision of this Subscription
      Agreement shall not affect the validity, legality or enforceability of any
      other
      provision hereof.

     

    25. The
      Subscriber acknowledges and agrees that acceptance of this Subscription
      Agreement by the Corporation will be conditional, among other things, upon
      the
      sale of Units to the Subscriber being exempt from any prospectus and offering
      memorandum requirements of all applicable securities laws. The Corporation
      will
      be deemed to have accepted this Subscription Agreement upon the delivery on
      the
      Closing Date of the certificates representing the Units to or upon the direction
      of the Subscriber in accordance with the provisions hereof.

     

    26. The
      headings used in this Subscription Agreement have been inserted for convenience
      of reference only and shall not affect the meaning or interpretation of this
      Subscription Agreement or any provision hereof.

     

    27. The
      covenants, representations and warranties of the parties contained herein shall
      survive the Closing of the transactions contemplated hereby.

     

    28. Each
      party shall from time to time do such further acts and execute and deliver
      such
      further documents as shall be reasonably required in order to fully perform
      and
      carry out the terms of this Subscription Agreement. 

     

    29. In
      this
      Subscription Agreement, words importing the singular include the plural and
      vice
      versa and words importing persons include firms or corporations.

     

    30. This
      Subscription Agreement may be executed in any number of counterparts with the
      same effect as if all parties to this Subscription Agreement had signed the
      same
      document and all counterparts will be construed together and constitute one
      and
      the same instrument.

     

    31. All
      notices hereunder will be in writing and addressed to the party for whom it
      is
      intended at the address indicated herein. Either party may by notice to the
      other party change its address for service. Any notice personally delivered
      will
      be deemed to have been given or made on the date it was actually delivered,
      or
      if sent by electronic facsimile, will be deemed to have been given or made
      on
      the business day next following the date upon which it was
      transmitted.

     

    32. In
      this
      Subscription Agreement references to "$" are to United States dollars unless
      stated otherwise.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Exhibit
      1

    

    REPRESENTATION
      LETTER

    

    (FOR
      ALBERTA AND/OR BRITISH COLUMBIA ACCREDITED INVESTORS OR ACCREDITED INVESTORS
      TO
      WHOM SUBSECTION 7(f) APPLIES)

    

    TO: DEEP
      WELL OIL & GAS, INC. (the "Corporation")

    

    In
      connection with the purchase of units of the Corporation ("Units")
      by the
      undersigned subscriber or, if applicable, the principal on whose behalf the
      undersigned is purchasing as agent (the "Subscriber"
      for the
      purposes of this Exhibit 1), the Subscriber hereby represents, warrants,
      covenants and certifies to the Corporation that:

    

    
      	 	
              1.

            	
              The
                Subscriber is resident in Alberta or British Columbia or is subject
                to the
                laws of the Province of Alberta or British
                Columbia;

            

    

    

    
      	 	
              2.

            	
              The
                Subscriber, unless it is a person or company described in paragraph
                (q) in
                the attached Appendix "A" that is deemed pursuant to the provisions
                of
                section 2.3(5) of National Instrument 45-106 entitled "Prospectus
                and
                Registration Exemptions" to be purchasing as principal, is purchasing
                the
                Units as principal for its own
                account;

            

    

    

    
      	 	
              3.

            	
              The
                Subscriber is an "accredited investor" within the meaning of National
                Instrument 45-106 entitled "Prospectus and Registration Exemptions"
                by
                virtue of satisfying the indicated criterion as set out in
                Appendix "A" to this Representation Letter;
                and

            

    

    

    
      	 	
              4.

            	
              Upon
                execution of this Exhibit 1 by the Subscriber, this Exhibit 1 shall
                be
                incorporated into and form a part of the Subscription
                Agreement.

            

    

     

    
      	 	 	 
	
              Dated:
                ______________________.

            	
            
	  	 
 	
               
                
                

              

              Print
                name of Subscriber

               

            
	 	By:  	
            
	 	
              

              Signature

            
	 	 
	 	
              
                

              

              Print
                name of Signatory (if different from Subscriber)

            
	 	 
	 	
              
                

              

              Title

            

    

     

    IMPORTANT:
      PLEASE INITIAL THE APPROPRIATE PARAGRAPH(S) ON
      APPENDIX "A"

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    APPENDIX
      "A"

    to
      Exhibit 1

     

    Accredited
      Investor
      -
      (defined in NI 45-106) means:

    

    
      	
              _____

            	
              (a)

            	
              a
                Canadian financial institution or a Schedule III Bank;
                or

            
	 	 	 
	
              _____

            	
              (b)

            	
              the
                Business Development Bank of Canada incorporated under the Business
                Development Bank of Canada Act
                (Canada); or

            
	 	 	 
	
              _____

            	
              (c)

            	
              a
                subsidiary of any person referred to in paragraphs (a) or (b), if the
                person owns all of the voting securities of the subsidiary, except
                the
                voting securities required by law to be owned by directors of that
                subsidiary; or

            
	 	 	 
	
              _____

            	
              (d)

            	
              a
                person registered under the securities legislation of a jurisdiction
                of
                Canada as an adviser or dealer, other than a person registered solely
                as a
                limited market dealer under one or both of the Securities
                Act
                (Ontario) or the Securities
                Act
                (Newfoundland and Labrador); or

            
	 	 	 
	
              _____

            	
              (e)

            	
              an
                individual registered or formerly registered under the securities
                legislation of a jurisdiction of Canada, as a representative of a
                person
                or company referred to in paragraph (d); or

            
	 	 	 
	
              _____

            	
              (f)

            	
              the
                Government of Canada or a jurisdiction of Canada, or any crown
                corporation, agency or wholly owned entity of the Government of Canada
                or
                a jurisdiction of Canada; or

            
	 	 	 
	
              _____

            	
              (g)

            	
              a
                municipality, public board or commission in Canada and a metropolitan
                community, school board, Comité de gestion de la taxe scolaire de
                l' le de Montreal or an intermunicipal management board in Québec;
                or

            
	 	 	 
	
              _____

            	
              (h)

            	
              any
                national, federal, state, provincial, territorial or municipal government
                of or in any foreign jurisdiction, or any agency of that government;
                or

            
	 	 	 
	
              _____

            	
              (i)

            	
              a
                pension fund that is regulated by either the Office of the Superintendent
                of Financial Institutions (Canada) or a pension commission or similar
                regulatory authority of a jurisdiction of Canada; or

            
	 	 	 
	
              _____

            	
              (j)

            	
              an
                individual who, either alone or with a spouse, beneficially owns,
                directly
                or indirectly, financial assets having an aggregate realizable value
                that
                before taxes, but net of any related liabilities, exceeds CAD$1,000,000;
                or

            
	 	 	 
	
              _____

            	
              (k)

            	
              an
                individual whose net income before taxes exceeded CAD$200,000 in
                each of
                the 2 most recent calendar years or whose net income before taxes
                combined
                with that of a spouse exceeded CAD$300,000 in each of the 2 most
                recent
                calendar years and who, in either case, reasonably expects to exceed
                that
                net income level in the current calendar year; or

            
	 	 	 
	
              _____

            	
              (l)

            	
              an
                individual who, either alone or with a spouse, has net assets of
                at least
                CAD$5,000,000; or

            
	
               

            	 	 
	
              _____

            	
              (m)

            	
              a
                person, other than an individual or investment fund that has net
                assets of
                at least CAD$5,000,000 as shown on its most recently prepared financial
                statements and such person was not created or used solely to purchase
                or
                hold securities as an “accredited investor”; or

            
	 	 	 
	
              _____

            	
              (n)

            	
              an
                investment fund that distributes or has distributed its securities
                only
                to:

               

              (i)
                a person that is or was an accredited investor at the time of the
                distribution;

               

              (ii)
                a person that acquires or acquired securities in the circumstances
                referred to in sections 2.10 and 2.19 of NI 45-106; or

               

              (iii)
                a person described in paragraph (n)(i) or (ii) that acquires or acquired
                securities under section 2.18 of NI 45-106;
                or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              _____

            	
              (o)

            	
              an
                investment fund that distributes or has distributed securities under
                a
                prospectus in a jurisdiction of Canada for which the regulator, or
                in
                Québec, the securities regulatory authority, has issued a receipt;
                or

            
	 	 	 
	
              _____

            	
              (p)

            	
              a
                trust company or trust corporation registered or authorized to carry
                on
                business under the Trust
                and Loan Companies Act
                (Canada) or under comparable legislation in a jurisdiction of Canada
                or a
                foreign jurisdiction, acting on behalf of a fully managed account
                managed
                by the trust company or trust corporation, as the case may be;
                or

            
	 	 	 
	
              _____

            	
              (q)

            	
              a
                person acting on behalf of a fully managed account managed by that
                person,
                if that person

               

              (i)
                is registered or authorized to carry on business as an adviser or
                the
                equivalent under the securities legislation of a jurisdiction of
                Canada or
                a foreign jurisdiction; and

               

              (ii)
                in Ontario, is purchasing a security that is not a security of an
                investment fund; or

            
	 	 	 
	
              _____

            	
              (r)

            	
              a
                registered charity under the Income
                Tax Act
                (Canada) that, in regard to the trade, has obtained advice from an
                eligibility adviser or an adviser registered under the securities
                legislation of the jurisdiction of the registered charity to give
                advice
                on the securities being traded; or

            
	 	 	 
	
              _____

            	
              (s)

            	
              an
                entity organized in a foreign jurisdiction that is analogous to any
                of the
                entities referred to in paragraphs (a) to (d) or paragraph (i)
                in form and function; or

            
	 	 	 
	
              _____

            	
              (t)

            	
              a
                person in respect of which all of the owners of interests, direct,
                indirect, or beneficial, except the voting securities required by
                law to
                be owned by directors, are persons that are “accredited investors” (as
                defined in NI 45-106); or

            
	 	 	 
	
              _____

            	
              (u)

            	
              an
                investment fund that is advised by a person registered as an adviser
                or a
                person that is exempt from registration as an adviser;
                or

            
	 	 	 
	
              _____

            	
              (v)

            	
              a
                person that is recognized or designated by the securities regulatory
                authority or, except in Ontario and Québec, the regulator as

               

              (i)
                an “accredited investor” (as defined in NI 45-106); or

               

              (ii)
                an exempt purchaser in Alberta or British
                Columbia.

            

    

     

    NOTE:
      The investor must initial beside the applicable portion of the above
      definition.

    

    For
      the purposes hereof:

    

    
      	
              (a)

            	
              "bank"
                means a bank named in Schedule I or II of the Bank
                Act (Canada);

            

    

     

    
      	
              (b)

            	
              "Canadian
                financial institution"
                means

            

    

     

    
      	 	
              (i)
                

            	
              an
                association governed by the Cooperative
                Credit Associations Act
                (Canada) or a central cooperative credit society for which an order
                has
                been made under section 473(1) of that Act;
                or

            

    

     

    
      	 	
              (ii)

            	
              a
                bank, loan corporation, trust company, trust corporation, insurance
                company, treasury branch, credit union, caisse populaire, financial
                services cooperative, or league that, in each case, is authorized
                by an
                enactment of Canada or a jurisdiction of Canada to carry on business
                in
                Canada or a jurisdiction of Canada;

            

    

     

    
      	
              (c)

            	
              "director"
                means

            

    

     

    
      	 	
              (i)
                

            	
              a
                member of the board of directors of a company or an individual who
                performs similar functions for a company,
                and

            

    

     

    
      	 	
              (ii)
                

            	
              with
                respect to a person that is not an company, an individual who performs
                functions similar to that of a director of a
                company;

            

    

     

    
      	
              (d)

            	
              "eligibility
                adviser"
                means a person that is registered as an investment dealer or in an
                equivalent category of registration under the securities legislation
                of
                the jurisdiction of a purchaser and authorized to give advice with
                respect
                to the type of security being distributed;

            

    

     

    
      	
              (e)

            	
              "EVCC"
                means an employee venture capital corporation that does not have
                a
                restricted constitution and is registered under Part 2 of the Employee
                Investment Act (British
                Columbia), R.S.B.C. 1996 c. 112, and whose business objective is
                making
                multiple investments;

            

    

     

    
      	
              (f)

            	
              "financial
                assets"
                means

            

    

     

    
      	
            	(i)	
              cash;

            

    

     

    
      	
            	(ii)	
              securities;
                or

            

    

     

    
      	 	
              (iii)
                

            	
              a
                contract of insurance, a deposit or evidence of a deposit that is
                not a
                security for the purposes of securities
                legislation;

            

    

     

    
      	
              (g)

            	
              "foreign
                jurisdiction"
                means a country other than Canada or a political subdivision of a
                country
                other than Canada;

            

    

     

    
      	
              (h)

            	
              "fully
                managed account"
                means an account of a client for which a person makes the investment
                decisions if that person has full discretion to trade in securities
                for
                the account without requiring the client's express consent to a
                transaction;

            

    

     

    
      	
              (i)

            	
              "jurisdiction"
                means a province or territory of Canada except when used in the term
                "foreign jurisdiction";

            

    

     

    
      	
              (j)

            	
              "individual"
                means

            

    

     

    
      	 	
              (i)
                

            	
              for
                Alberta, a natural person, but does not
                include

            

    

     

    
      	 	
              (A)
                

            	
              a
                partnership, unincorporated association, unincorporated syndicate,
                unincorporated organization or a trust,
                or

            

    

     

    
      	 	
              (B)
                

            	
              a
                natural person in the person's capacity as trustee, executor,
                administrator or other legal
                representative;

            

    

     

    
      	 	
              (ii)
                

            	
              for
                British Columbia, a natural person, but does not
                include

            

    

     

    
      	 	
              (A)
                

            	
              a
                partnership, unincorporated association, unincorporated syndicate,
                unincorporated organization or a trust,
                or

            

    

     

    
      	 	
              (B)
                

            	
              a
                natural person in the person's capacity as trustee, executor,
                administrator or personal or other legal
                representative;

            

    

     

    
      	
              (k)

            	
              "investment
                fund"
                means a mutual fund or a non-redeemable investment fund, and, for
                greater
                certainty in British Columbia, includes an EVCC and a
                VCC;

            

    

     

    
      	
              (l)

            	
              "non-redeemable
                investment fund"
                means an issuer,

            

    

     

    
      	 	
              (i)

            	
              whose
                primary purpose is to invest money provided by its
                securityholders,

            

    

     

    
      	 	
              (ii)
                

            	
              that
                does not invest,

            

    

     

    
      	 	
              (A)

            	
              for
                the purpose of exercising or seeking to exercise control of an issuer,
                other than an issuer that is a mutual fund or a non-redeemable investment
                fund, or

            

    

     

    
      	 	
              (B)

            	
              for
                the purpose of being actively involved in the management of any issuer
                in
                which it invests, other than an issuer that is a mutual fund or a
                non-redeemable investment fund, and

            

    

     

    
      	 	
              (iii)
                

            	
              that
                is not a mutual fund;

            

    

     

    
      	
              (m)

            	
              "person"
                includes

            

    

     

    
      	
            	(i)	
              an
                individual;

            

    

     

    
      	
            	(ii)	
              a
                corporation;

            

    

     

    
      	 	
              (iii)
                

            	
              a
                partnership, trust, fund and an association, syndicate, organization
                or
                other organized group of persons, whether incorporated or not;
                and

            

    

     

    
      	 	
              (iv)
                

            	
              an
                individual or other person in that person's capacity as a trustee,
                executor, administrator or other legal
                representative;

            

    

     

    
      	
              (n)

            	
              "related
                liabilities"
                means

            

    

     

    
      	
            	(i)	
              liabilities
                incurred or assumed for the purpose of financing the acquisition
                or
                ownership of financial assets; or

            

    

     

    
      	
            	(ii)	
              liabilities
                that are secured by financial
                assets;

            

    

     

    
      	
              (o)

            	
              "Schedule
                III bank"
                means an authorized foreign bank named in Schedule III of the Bank
                Act (Canada):

            

    

     

    
      	
              (p)

            	
              "securities
                legislation"
                means

            

    

     

    
      	 	
              (i)
                

            	
              for
                Alberta, the Securities
                Act
                (Alberta) and the regulations and rules under such Act and the blanket
                rulings and orders issued by the Alberta Securities
                Commission;

            

    

     

    
      	 	
              (ii)
                

            	
              for
                British Columbia, the Securities
                Act
                (British Columbia) and the regulations, rules and forms under such
                Act and
                the blanket rulings and orders issued by the British Columbia Securities
                Commission;

            

    

     

    
      	 	
              (iii)
                

            	
              for
                other Canadian jurisdictions, such other statutes and instruments
                as are
                listed in Appendix B of National Instrument 14-101 - Definitions;
                

            

    

     

    
      	
              (q)

            	
              "securities
                regulatory authority"
                means

            

    

     

    
      	
            	(i)	
              for
                Alberta, the Alberta Securities
                Commission;

            

    

     

    
      	
            	(ii)	
              for
                British Columbia, the British Columbia Securities
                Commission;

            

    

     

    
      	 	
              (iii)
                

            	
              for
                other Canadian jurisdictions, means the securities regulatory authority
                as
                listed in Appendix C of National Instrument 14-101 - Definitions;
                

            

    

     

    
      	
              (r)

            	
              "spouse"
                means an individual who

            

    

     

    
      	 	
              (i)
                

            	
              is
                married to another individual and is not living separate and apart
                within
                the meaning of the Divorce
                Act
                (Canada), from the other individual;
                or

            

    

     

    
      	 	
              (ii)
                

            	
              is
                living with another individual in a marriage-like relationship, including
                a marriage-like relationship of individuals of the same gender;
                or

            

    

     

    
      	 	
              (iii)
                

            	
              in
                Alberta, is an individual referred to in paragraph (i) or (ii) or
                is an
                adult interdependent partner within the meaning of the Adult
                Interdependent Relationships Act
                (Alberta);

            

    

     

    
      	
              (s)

            	
              "subsidiary"
                means an issuer that is controlled directly or indirectly by another
                issuer and includes a subsidiary of that subsidiary;
                and

            

    

     

    
      	
              (t)

            	
              "VCC"
                means a venture capital corporation registered under Part 1 of the
                Small
                Business Venture Capital Act (British
                Columbia), R.S.B.C. 1996 c. 429 whose business objective is making
                multiple investments.

            

    

     

    Meaning
      of Control:

     

    A
      person
      ("first person") is considered to "control"
      another
      person ("second person") if:

     

    (i)
       the
      first
      person, directly or indirectly, beneficially owns or exercises control or
      direction over securities of the second person carrying votes which, if
      exercised, would entitle the first person to elect a majority of the directors
      of the second person, unless that first person holds the voting securities
      only
      to secure an obligation; or

     

    (ii)
       the
      second person is a partnership, other than a limited partnership, and the first
      person holds more than 50% of the interests of the partnership; or

     

    (iii)
       the
      second person is a limited partnership and the general partner of the limited
      partnership is the first person.Unassociated Document

    

      Exhibit
        10.1

       

      SETTLEMENT
        AGREEMENT AND MUTUAL RELEASE

       

      This
        Settlement Agreement and Mutual Release (“Settlement
        Agreement”)
        is
        made as of this 14th
        day of
        August, 2008 by and between Memry Corporation (“Memry”),
        a
        Delaware corporation, on the one hand, and Kentucky Oil Technology, N.V.
        (“Kentucky
        Oil”),
        a
        Netherlands corporation, Memory Metal Holland, B.V. (“MMH”),
        a
        Netherlands corporation, Peter Besselink (“Besselink”),
        an
        individual, United
        Stenting, Inc. (“USI”),
        a
        Nevis corporation, and Dr.
        Wilfried van Moorleghem (“van
        Moorleghem”),
        an
        individual.
        Kentucky Oil, MMH, and
        Besselink
        are
        sometimes referred to collectively as the “Kentucky
        Oil Parties.”

       

      RECITALS

       

      Whereas,
        MMH and Memry entered a Secrecy Agreement, dated October 28, 1998 (the
“Secrecy
        Agreement”);

       

      Whereas,
        Memry and Memry Europe N.V., a former indirect subsidiary of Memry, entered
        into
        a Collaboration Agreement with USI,
        dated
        June 9, 1999 (the “Collaboration
        Agreement”);

       

      Whereas,
        the Kentucky Oil Parties warrant and represent herein that Kentucky Oil is
        the
        sole successor in interest to MMH for all of its rights, title and interest
        in
        the Secrecy Agreement not retained by MMH;

       

      Whereas,
        the Kentucky Oil Parties and
        USI
warrant
        and represent herein that Kentucky Oil is the sole successor in interest
        to USI
        for all of its rights, title and interest in the Collaboration Agreement
        not
        retained by USI; 

       

      Whereas,
        Memry and Schlumberger Technology Corporation (“STC”),
        a
        Texas corporation, entered into a Development Agreement, dated as of January
        1,
        2001 (the “Development
        Agreement”);

       

      Whereas,
        Memry, Kentucky Oil, MMH, Besselink, and STC are or were parties to an action
        currently pending in the United States District Court for the Northern District
        of California, styled as Memry
        Corporation v. Kentucky Oil Technology, N.V., et al.,
        Case
        No. CV 04-03843 RMW (HRL) (the “Lawsuit”);

       

      Whereas,
        SAES Getters (“Getters”),
        an
        Italian corporation, and Memry announced a merger agreement on June 24,
        2008;

       

      Whereas,
        Memry and the Kentucky Oil Parties now wish to settle their disputes with
        each
        other in the Lawsuit, with neither party admitting any liability to the other;
        and 

       

      Whereas,
        STC and the Kentucky Oil Parties have settled their disputes by way of a
        separate Settlement Agreement and Mutual Release, an executed copy of which
        has
        been provided to counsel for Memry under the terms of the protective order
        in
        the Lawsuit.

       

      NOW
        THEREFORE, in consideration of the mutual covenants set forth in this Settlement
        Agreement, the parties agree as follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                A.

              	
                Consideration.  In
                  consideration for this Settlement Agreement and the agreements
                  and mutual
                  releases contained herein, Memry is,
                  simultaneously with the execution and delivery hereof, paying Kentucky
                  Oil the total sum of $3,500,000.00. The payment is being made
                  in
                  cash by wire transfer to counsel for Kentucky Oil simultaneously
                  with
                  the execution and delivery of signed counterparts of this Settlement
                  Agreement. Counsel for Kentucky Oil will deliver the payment to
                  Kentucky
                  Oil upon the filing of a Stipulation for Dismissal with prejudice
                  further
                  described in Section G of this Settlement Agreement. Kentucky Oil
                  will
                  accept any tax liability that might be associated with this payment.
                  Memry
                  makes no representations or warranties regarding any tax liability,
                  if
                  any, that might be associated with this payment or any of the terms
                  of
                  this Settlement Agreement. The parties agree that neither Memry
                  nor any of
                  the other Memry-Related Parties (as hereinafter defined) has any
                  responsibility for any tax liability which may arise from this
                  Settlement
                  Agreement.

              

      

       

      
        	 	
                B.

              	
                Assignment
                  of Certain Rights under Development
                  Agreement

              

      

       

      
        	 	
                a.

              	
                Effective
                  upon the execution and delivery hereof (referred to herein as the
                  “Effective
                  Time”),
                  Memry hereby assigns its remaining rights under the Development
                  Agreement
                  to Kentucky Oil. Kentucky Oil agrees and acknowledges that, by
                  doing so,
                  Memry in no way is assigning or transferring any Background IP
                  Rights,
                  Unrelated IP Rights or Development Program IP Rights (all as defined
                  in
                  the Development Agreement) or any other intellectual property rights
                  that
                  Memry did not obtain pursuant to the Development
                  Agreement.

              

      

       

      
        	 	
                b.

              	
                Effective
                  upon the Effective Time, Memry assigns to Kentucky Oil its remaining
                  rights under the two License Agreements (the “License
                  Agreements”)
                  entered into between Memry and STC in connection with the Development
                  Agreement and in the respective forms of Exhibits B and B-1
                  thereto.

              

      

       

      
        	 	
                c.

              	
                Such
                  assignments are without representation and warranty. Kentucky Oil
                  agrees
                  and acknowledges that, pursuant to a separate Settlement Agreement
                  and
                  Release being entered into substantially simultaneously herewith
                  with STC
                  (the “STC
                  Settlement Agreement”),
                  all known and unknown claims existing against Memry on the date
                  hereof
                  under and pursuant to the Development Agreement and the License
                  Agreements
                  are being released, and that STC is consenting to the assignment
                  by Memry
                  to Kentucky Oil of Memry’s remaining rights under the Development
                  Agreement and the License Agreements. Memry shall have no past
                  or future
                  liability for any failure of STC or any other party to make any
                  payments
                  under the Development Agreement and/or the License
                  Agreements.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	 	
                d.

              	
                Memry
                  hereby acknowledges the existence of and the exclusive ownership
                  by
                  Kentucky Oil or its assignee of: (1) the published PCT Application
                  No. WO
                  98/32412; (2) United States Patent Nos. 6,488,702, 6,772,836, 6,799,637,
                  7,185,709 and 7,398,831; and (3) the foreign patents related to
                  the
                  foregoing PCT Application listed on Attachment IV. Memry agrees
                  not to
                  infringe upon, or claim ownership of, the inventions covered by
                  the valid
                  claims of these patents, and any valid claims of any patents that
                  subsequently issue to Kentucky Oil directly related to the application
                  described in clause (1) above. Notwithstanding anything in this
                  subsection
                  to the contrary, however, nothing contained herein shall prevent
                  Memry (i)
                  from making, using, offering for sale, selling or claiming ownership
                  of
                  any technology that is not covered by the valid claims of the aforesaid
                  patents and application and/or (ii) challenging the validity of
                  any and/or
                  all of the claims of the above-referenced patents and/or application
                  in
                  any proceeding.

              

      

       

      
        	 	
                C.

              	
                Termination
                  of Agreements

              

      

       

      
        	 	
                a.

              	
                The
                  Secrecy Agreement, dated October 28, 1998, is terminated and all
                  rights
                  and obligations therein are extinguished and released.
                  

              

      

       

      
        	 	
                b.

              	
                The
                  Collaboration Agreement, dated June 9, 1999, is terminated and
                  all rights
                  and obligations therein are extinguished and released. The parties
                  agree
                  and acknowledge that AMT (as defined below) has agreed to this
                  in the
                  Mutual Release and Agreement (as defined
                  below).

              

      

       

      
        	 	
                D.

              	
                Covenant
                  Not To Sue

              

      

       

      
        	 	
                a.

              	
                Kentucky
                  Oil alleged a Fifth Counterclaim for joinder of Besselink as co-inventor
                  of certain United States patents, and on May 2, 2008 filed a motion
                  [Docket 1165] seeking dismissal of that Counterclaim without prejudice
                  as
                  to United States Patent Nos. 6,772,836 (the “‘836
                  Patent”),
                  6,799,637 (the “‘637
                  Patent”),
                  and 7,185,709 (the “‘709
                  Patent”)
                  and with prejudice as to the seven other patents identified in
                  that
                  Counterclaim.

              

      

       

      
        	 	
                b.

              	
                On
                  July 16, 2008, the United States District Court for the Northern
                  District
                  of California filed an Order [Docket 1187] in which it, inter
                  alia,
                  dismissed Kentucky Oil’s Fifth Counterclaim as against both Memry and STC,
                  without prejudice as to the ‘836, ‘637, and ‘709 Patents and with
                  prejudice as to the seven remaining patents identified in that
                  Counterclaim, provided that Kentucky Oil, within five Court days
                  of the
                  entry of that Order, provided Memry a written covenant not to file
                  a
                  lawsuit against Memry under 35 U.S.C. § 256 for correction of inventorship
                  of the ‘836, ‘637, and ‘709 Patents, in the form attached as Exhibit A to
                  the proposed Order; 

              

      

       

      
        	 	
                c.

              	
                On
                  July 16, 2008, Kentucky Oil provided Memry with a written covenant
                  not to
                  file a lawsuit against Memry under 35 U.S.C. § 256 for correction of
                  inventorship of the ‘836, ‘637, and ‘709
                  Patents;

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
        	 	
                d.

              	
                Kentucky
                  Oil, MMH, and Besselink hereby covenant not to sue Memry under
                  35 U.S.C. §
                  256 for correction of inventorship of the ‘836, ‘637, and ‘709 Patents,
                  and United States Patent No. 7,398,831, as well as any
                  related patents that could have been brought in the
                  Lawsuit.

              

      

       

      
        	 	
                e.

              	
                This
                  covenant not to sue is binding on any officers, partners, agents,
                  employees, former employees, shareholders, owners, successors and
                  assigns
                  of Kentucky Oil, MMH, and Besselink. This covenant not to sue by
                  way of
                  illustration is binding on
                  USI,
                  van Moorleghem and George Shukov.

              

      

       

      
        	 	
                f.

              	
                This
                  covenant not to sue shall apply to any officers, partners, agents,
                  employees, former employees, shareholders, owners, successors and
                  assigns
                  of Memry acting for, by, or through Memry. This covenant not to
                  sue shall
                  also apply to any direct and/or indirect subsidiaries of Memry
                  and any
                  affiliated companies of Memry.

              

      

       

      
        	 	
                g.

              	
                This
                  covenant is in addition to, and not in substitution of, the previously
                  granted covenant not to sue annexed hereto as Attachment
                  II.

              

      

       

      
        	 	
                E.

              	
                No
                  Obligation to Maintain.
                  Memry has no obligation to USI
                  or
                  any of the Kentucky Oil
                  Parties to prosecute or maintain any intellectual
                  property.

              

      

       

      
        	 	
                F.

              	
                Transfers
                  As Is.
                  The assignments of Memry’s right to certain royalties under the
                  Development Agreement with STC made pursuant to this Settlement
                  Agreement
                  are made “as is” and without any representations or warranties whatsoever,
                  except as expressly set forth
                  herein.

              

      

       

      
        	 	
                G.

              	
                Dismissal
                  of the Lawsuit.
                  Concurrently with the execution hereof, the parties hereto shall
                  execute a
                  Stipulation of Dismissal pursuant to Rule 41(a)(1)(A)(ii) of the
                  Federal
                  Rules of Civil Procedure in the form of Attachment 1 hereto, dismissing
                  the Lawsuit with prejudice with each side to bear its own costs
                  and
                  attorneys’ fees and with all rights of appeal waived. Promptly upon the
                  execution and delivery of signed counterparts of this Settlement
                  Agreement, Kentucky Oil shall file the Stipulation of Dismissal
                  with the
                  Court in which the Lawsuit is pending.

              

      

       

      
        	 	
                H.

              	
                Mutual
                  Releases

              

      

       

      
        	 	
                a.

              	
                Release
                  of Memry.
                  The Kentucky Oil Parties and USI each
                  release Memry, and its officers, directors, shareholders, divisions,
                  business units, members, managers, parents, subsidiaries, affiliates,
                  predecessors, successors, representatives, agents, servants, employees,
                  attorneys, accountants, investors, and insurers (collectively,
                  the
                  “Memry-Related
                  Parties”),
                  of and from any and all known and unknown actions, causes of action,
                  claims, demands, damages, costs, losses, expenses, liabilities,
                  attorneys’
                  fees, and debts whatsoever, under statutory law or regulation,
                  at common
                  law or in equity of any jurisdiction, including, without limitation,
                  those
                  relating to the Lawsuit, that any of the Kentucky Oil
                  Parties or USI has, did have, or may have against any of the Memry-Related
                  Parties from the beginning of time to the date of this Settlement
                  Agreement (the “KOT
                  Released Claims”).
                  The
                  parties agree and acknowledge that this release extinguishes all
                  claims of
                  the Kentucky Oil Parties and USI against the Memry-Related Parties,
                  whether such claims are asserted by the Kentucky Oil Parties or
                  USI or by
                  their officers, directors, shareholders, divisions, business units,
                  members, managers, parents, subsidiaries, affiliates, predecessors,
                  successors, representatives, agents, servants, employees, attorneys,
                  accountants, investors, and
                  insurers.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
        	 	
                b.

              	
                Release
                  of Kentucky Oil Parties and USI.
                  Memry releases each of the Kentucky Oil
                  Parties, and USI, and their officers, directors, shareholders,
                  divisions,
                  business units, members, managers, parents, subsidiaries, affiliates,
                  predecessors, successors, representatives, agents, servants, employees,
                  attorneys, accountants, investors, and insurers (such persons and
                  entities, including the Kentucky Oil Parties being referred to
                  herein
                  collectively as the “Kentucky Oil-Related Parties”)
                  of
                  and from any and all known and unknown actions, causes of action,
                  claims,
                  demands, damages, costs, losses, expenses, liabilities, attorneys’ fees,
                  and debts whatsoever, under statutory law or regulation, at common
                  law or
                  in equity of any jurisdiction, including, without limitation, those
                  relating to the Lawsuit, that Memry has, did have, or may have
                  against any
                  of the Kentucky Oil-Related Parties from the beginning of time
                  to the date
                  of this Settlement Agreement (the “Memry
                  Released Claims”).
                  The parties agree and acknowledge that this release extinguishes
                  all
                  claims of Memry against the Kentucky Oil-Related-Parties, whether
                  such
                  claims are asserted by Memry or by its officers, directors, shareholders,
                  divisions, business units, members, managers, parents, subsidiaries,
                  affiliates, predecessors, successors, representatives, agents,
                  servants,
                  employees, attorneys, accountants, investors, and insurers.
                  

              

      

       

      
        	 	
                c.

              	
                Unknown
                  Claims.
                  As further consideration and inducement for this compromise settlement,
                  the parties each understand and agree that the releases contained
                  in this
                  Section H apply to all unknown and unanticipated claims or demands
                  of any
                  type whatsoever, and the parties expressly waive the benefits of
                  California Civil Code § 1542, which
                  states:

              

      

       

      A
        GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
        OR
        SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
        WHICH
        IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
        WITH
        THE DEBTOR.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      The
        Kentucky Oil Parties and
        USI
        each abandon, release, waive, and relinquish all rights and benefits that
        any of
        them has or may have against any of the Memry-Related Parties under California
        Civil Code § 1542 with respect to the KOT Released Claims. Memry abandons,
        releases, waives, and relinquishes all rights and benefits that it has or
        may
        have against any of the Kentucky Oil-Related Parties under California Civil
        Code
§ 1542 with respect to the Memry Released Claims. The parties each acknowledge
        that they may discover facts in addition to, or different from, those that
        they
        now believe to be true, including but not limited to the nature or extent
        of
        their damages, but that it is nonetheless their intention to fully, finally,
        completely, and forever settle and release each, every, and all claims released
        in this Section H. Therefore, the releases given in this Section H shall
        remain
        in effect according to their express terms notwithstanding the discovery
        or
        existence of any such additional or different facts.

       

      
        	 	
                d.

              	
                Warranty
                  of No Transfer.
                  Each of the parties represents and warrants that it is the sole
                  owner of
                  the claims it is releasing in this Section H, that no other person
                  has any
                  interest in any of those claims, and that it has not sold, assigned,
                  or
                  otherwise transferred any interest in those claims to any third
                  party.
                  

              

      

       

      
        	 	
                e.

              	
                No
                  Release by AMT.
                  The releases set forth in this Section H do not release any claims
                  of any
                  sort by or against AMT, N.V. (“AMT”), except for those claims that
                  originated as claims of the Kentucky Oil Parties and/or USI that
                  may have
                  been transferred or are subsequently transferred to AMT. Nothing
                  in this
                  Settlement Agreement in any way limits or nullifies any prior releases
                  granted by AMT and/or van Moorleghem.

              

      

       

      
        	 	
                f.

              	
                van
                  Moorleghem Release.
                  The parties to this Settlement Agreement agree and acknowledge
                  the
                  separate Settlement Agreement and Mutual Release, in the form of
                  Attachment III (the “Mutual Release and Agreement”), being executed and
                  delivered by van Moorleghem, AMT and Memry in connection
                  herewith.

              

      

       

      
        	 	
                I.

              	
                Representations
                  and Warranties

              

      

       

      
        	 	
                a.

              	
                Memry
                  Representations and Warranties.
                  Memry hereby represents and warrants to the Kentucky Oil Parties
                  and USI
                  as follows:

              

      

       

      
        	 	
                i.

              	
                Memry
                  is a legal entity duly organized, validly existing and in good
                  standing
                  under the laws of its jurisdiction of organization and has all
                  requisite
                  corporate or similar power and authority to own, lease and operate
                  its
                  properties and assets and to carry on its business as presently
                  conducted.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
        	 	
                ii.

              	
                Memry
                  has requisite corporate power and authority to enter into this
                  Settlement
                  Agreement and to consummate the transactions contemplated hereby.
                  The
                  execution and delivery of this Settlement Agreement and the consummation
                  of the transactions contemplated hereby have been duly and validly
                  authorized on behalf of Memry and no other corporate proceedings
                  on the
                  part of Memry are necessary to authorize the consummation of the
                  transactions contemplated hereby. This Settlement Agreement has
                  been duly
                  and validly executed and delivered by Memry and, assuming this
                  Settlement
                  Agreement constitutes the valid and binding agreement of each of
                  the
                  Kentucky Oil Parties, constitutes the valid and binding agreement
                  of
                  Memry, enforceable against Memry in accordance with its terms,
                  except that
                  (y) such enforcement may be subject to applicable bankruptcy, insolvency,
                  reorganization, moratorium or other similar laws, now or hereafter
                  in
                  effect, relating to creditors’ rights generally and (z) equitable remedies
                  of specific performance and injunctive and other forms of equitable
                  relief
                  may be subject to equitable defenses and to the discretion of the
                  court
                  before which any proceeding therefor may be brought (the “Bankruptcy
                  and Equity Exception”).

              

      

       

      
        	 	
                iii.

              	
                No
                  authorization, consent or approval of, or filing with, any United
                  States
                  or foreign governmental or regulatory agency, commission, court,
                  body,
                  entity or authority (each, a “Governmental
                  Entity”)
                  is necessary, under applicable law, for the consummation by Memry
                  of the
                  transactions contemplated by this Settlement Agreement, except
                  for filings
                  required to be made under U.S. securities laws after the Effective
                  Time.

              

      

       

      
        	 	
                iv.

              	
                The
                  execution and delivery by Memry of this Settlement Agreement does
                  not, and
                  the consummation of the transactions contemplated hereby and compliance
                  by
                  Memry with the provisions of this Settlement Agreement will not,
                  conflict
                  with or violate any applicable
                  laws.

              

      

       

      
        	 	
                b.

              	
                The
                  Kentucky Oil Parties,
                  USI and van Moorleghem,
                  jointly and severally, hereby represent to Memry as
                  follows:

              

      

       

      
        	 	
                i.

              	
                USI
                  and each of the Kentucky Oil Parties that is not a natural person
                  is a
                  legal entity duly organized, validly existing and in good standing
                  under
                  the laws of its jurisdiction of organization and has all requisite
                  corporate or similar power and authority to own, lease and operate
                  its
                  properties and assets and to carry on its business as presently
                  conducted.

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	 	
                ii.

              	
                USI
                  and each of the Kentucky Oil Parties that is not a natural person
                  has
                  requisite power and authority to enter into this Settlement Agreement
                  and
                  to consummate the transactions contemplated hereby. The execution
                  and
                  delivery of this Settlement Agreement and the consummation of the
                  transactions contemplated hereby have been duly and validly authorized
                  on
                  behalf of USI and each of the Kentucky Oil Parties that is not
                  a natural
                  person and no other corporate or other proceedings on the part
                  of any such
                  Kentucky Oil Party are necessary to authorize the consummation
                  of the
                  transactions contemplated hereby. This Settlement Agreement has
                  been duly
                  and validly executed and delivered by each Kentucky Oil Party and,
                  assuming this Settlement Agreement constitutes the valid and binding
                  agreement of Memry, constitutes the valid and binding agreement
                  of USI and
                  each Kentucky Oil Party, enforceable against USI and each Kentucky
                  Oil
                  Party in accordance with its terms, except for the Bankruptcy and
                  Equity
                  Exception.

              

      

       

      
        	 	
                iii.

              	
                No
                  authorization, consent or approval of, or filing with, any Governmental
                  Entity is necessary, under applicable law, for the consummation
                  by USI and
                  each of the Kentucky Oil Parties of the transactions contemplated
                  by this
                  Settlement Agreement.

              

      

       

      
        	 	
                iv.

              	
                The
                  execution and delivery by USI, van Moorleghem and each of the Kentucky
                  Oil
                  Parties of this Settlement Agreement does not, and the consummation
                  of the
                  transactions contemplated hereby and compliance by USI, van Moorleghem
                  and
                  each of the Kentucky Oil Parties with the provisions of this Settlement
                  Agreement will not, conflict with or violate any applicable
                  laws.

              

      

       

      
        	 	
                v.

              	
                Kentucky
                  Oil is the sole successor in interest to MMH for all of its rights,
                  title
                  and interest in the Secrecy Agreement and to USI for all of its
                  rights,
                  title and interest in the Collaboration
                  Agreement.

              

      

       

      
        	 	
                vi.

              	
                van
                  Moorleghem is not the principal executive officer of AMT, nor does
                  he own
                  or control a majority of the voting interests
                  therein.

              

      

       

      
        	 	
                J.

              	
                Other
                  Provisions

              

      

       

      
        	 	
                a.

              	
                Confidentiality.
                  The parties agree to keep this Settlement Agreement and its terms
                  strictly
                  confidential unless: (a) asserting a claim or defense arising out
                  of this
                  Settlement Agreement or related to the Lawsuit in any suit or proceeding;
                  (b) ordered to do so by a court of competent jurisdiction; (c)
                  served with
                  a subpoena or other request for discovery, provided that the party
                  served
                  first gives prompt notice to the other parties so the other parties
                  may
                  have an opportunity to contest the subpoena or discovery request;
                  or (d)
                  any of the substance of this Settlement Agreement is necessary
                  to be
                  disclosed to an agency or regulatory body, or to an insurer, financial
                  advisor, investor, lawyer, or accountant for any party or affiliate.
                  However, nothing in this Settlement Agreement prohibits a party
                  from
                  stating that the claims in the Lawsuit between the parties to this
                  Settlement Agreement have been settled and that the terms of the
                  settlement are confidential. Notwithstanding the foregoing, however,
                  (i)
                  Memry may disclose this Settlement Agreement to Getters and its
                  counsel,
                  (ii) either
                  party may
                  announce this Settlement Agreement in a press release and a Form
                  8-K, and
                  may file a copy hereof as an exhibit to said Form 8-K; and (iii)
                  any
                  party
                  can freely disclose any information
                  relating to this Settlement Agreement that has already been
                  publicly disclosed by any other
                  party.

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      
        	 	
                b.

              	
                No
                  Admission.
                  This Agreement is a compromise of disputed claims. It is not and
                  shall not
                  be interpreted as or deemed to be an admission of liability by
                  any party
                  to this Settlement Agreement. 

              

      

       

      
        	 	
                c.

              	
                No
                  Continuing Relationship.
                  The Kentucky Oil Parties each acknowledge that none of them has
                  any
                  present relationship whatsoever with Memry other than as set forth
                  in this
                  Settlement Agreement, although AMT currently has a contractual
                  relationship with Memry. The Kentucky Oil Parties will not make
                  any
                  representation to any third party that is inconsistent with this
                  acknowledgment. If any of the Kentucky Oil Parties make any representation
                  to third parties that is contrary to this paragraph, Memry shall
                  be
                  entitled to injunctive relief and specific performance of this
                  paragraph.

              

      

       

      
        	 	
                d.

              	
                Indemnification

              

      

       

      
        	 	
                i.

              	
                Kentucky
                  Oil will defend, indemnify, and hold harmless Memry and all of
                  the
                  Memry-Related Parties and all successors, assigns, end-users, and
                  customers of each, for: (1) the breach of any covenant, warranty
                  or
                  representation made by any Kentucky Oil Party, USI or van Moorleghem
                  in
                  this Settlement Agreement or any agreement entered into in connection
                  herewith; or (2) any claims against them arising from or relating
                  to
                  actual or alleged breach by the Kentucky Oil-Related Parties of
                  the
                  Development or License Agreements following the assignment of rights
                  as
                  contemplated under this Agreement. Pursuant to this indemnification,
                  the
                  indemnitees are entitled to use counsel of their
                  choice.

              

      

       

      
        	 	
                ii.

              	
                Memry
                  will defend, indemnify, and hold harmless Kentucky Oil and all
                  of the
                  Kentucky Oil-Related Parties and all successors, assigns, end-users,
                  and
                  customers of each, for the breach of any covenant, warranty or
                  representation made by Memry in the Settlement Agreement. Pursuant
                  to this
                  indemnification, the indemnitees are entitled to use counsel of
                  their
                  choice.

              

      

       

      
        	 	
                e.

              	
                Authority.
                  Each party warrants and represents to and in favor of each of the
                  other
                  parties that the person executing this Settlement Agreement on
                  its behalf
                  has the full power and authority to bind it to each and every provision
                  of
                  the agreement.

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        	 	
                f.

              	
                Notices.
                  All notices, requests, and demands made under this Settlement Agreement:
                  (a) shall be in writing and made to the parties and their counsel
                  at the
                  address indicated below, or to such other address as a party may
                  designate
                  by prior written notice to all of the others in accordance with
                  this
                  provision; and (b) shall be deemed to have been given or made (i)
                  if
                  delivered in person, immediately upon delivery, (ii) if by email
                  or
                  facsimile transmission, immediately upon sending and upon confirmation
                  of
                  receipt, provided that on that day or the following day a copy
                  is also
                  sent by first class mail, (iii) if by nationally recognized overnight
                  courier service with instructions to deliver the next business
                  day, one
                  business day after; and (iv) if by certified mail, return receipt
                  requested, five (5) days after
                  mailing.

              

      

       

      If
        to Memry:

       

      Memry
        Corporation

      Attn.
        Robert Belcher

      3
        Berkshire Boulevard

      Bethel,
        CT 06801

       

      with
        a
        copy to:

       

      David
        I.
        Albin, Esq.

      Finn,
        Dixon & Herling, LLP

      177
        Broad
        Street, 15th
        Floor

      Stamford,
        Connecticut 06901-2048;

      and
        

       

      William
        J. Cass, Esq.

      Cantor
        Colburn LLP

      20
        Church
        Street

      Hartford,
        CT 06103

       

      If
        to the
        Kentucky Oil Parties:

       

      Peter
        Besselink

      Kentucky
        Oil Technology, N.V. 

      Gronausetraat
        1220

      7534
        AT
        Enschede

      The
        Netherlands

      Facsimile
        No.: 011 31 53461 1730

      Email:
        memorymh@home.nl

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      and:

       

      Wilfried
        van Moorleghem

      Dr.
        Wilfried van Moorleghem

      Industrieweg
        1113

      B3540
        Herk

      Belgium

      Facsimile
        No: 011 32 13553514

      Email:
        wilfried_vanmoorleghem@yahoo.com

       

      with
        a
        copy to:

       

      Michael
        H. Bierman, Esq.

      Jeffrey
        D. Wexler, Esq.

      Luce,
        Forward, Hamilton & Scripps LLP

      601
        S.
        Figueroa Street, Suite 3900

      Los
        Angeles, California 90017

      Facsimile
        No.: (213) 892-7731

      Email:
        mbierman@luce.com / jwexler@luce.com

       

      
        	 	
                K.

              	
                Interpretation.
                  This Settlement Agreement shall be construed without regard to
                  the party
                  or parties responsible for the preparation of the same and shall
                  be deemed
                  to have been prepared jointly by the parties hereto. If any ambiguity
                  or
                  uncertainty exists herein, such ambiguity or uncertainty shall
                  not be
                  interpreted against any party hereto, but rather, shall be interpreted
                  according to the application of other rules of contract interpretation.
                  The parties acknowledge that this Settlement Agreement is in the
                  English
                  language and that the English language will govern its
                  interpretation.

              

      

       

      
        	 	
                L.

              	
                Governing
                  Law.
                  This Settlement Agreement shall be construed in accordance with
                  California
                  law, without regard to its internal choice-of-law
                  rules.

              

      

       

      
        	 	
                M.

              	
                Enforcement.
                  If any action is brought for breach of or to enforce this Settlement
                  Agreement, it shall be brought in the United States District Court
                  for the
                  Northern District of California,
                  unless that court has no jurisdiction over the action, in which
                  case it
                  shall be brought in the Superior Court of the State of California
                  for the
                  Counties of San Francisco or Santa Clara.
                  

              

      

       

      
        	 	
                N.

              	
                Attorneys’
                  Fees.
                  In any action for breach of or to enforce this Settlement Agreement,
                  the
                  prevailing party will be entitled to reasonable attorneys’ fees, expenses,
                  and costs. 

              

      

       

      
        	 	
                O.

              	
                Counterparts.
                  This Settlement Agreement may be signed in counterparts, and a
                  copy of the
                  fully signed Settlement Agreement may be used in evidence as if
                  it were
                  the original.

              

      

       

      
        	 	
                P.

              	
                Integration.
                  This Settlement Agreement is the entire agreement between the parties
                  with
                  respect to its subject matter and supersedes all prior or contemporaneous
                  oral or written negotiations or agreements with regard to the matters
                  set
                  forth in it. The parties are not entering into this Settlement
                  Agreement
                  on the basis of any promise, statement, or representation, express
                  or
                  implied, that is not expressly set forth in it.

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        	 	
                Q.

              	
                Independent
                  Counsel.
                  Each party acknowledges that it has been represented by independent
                  counsel of its own choice throughout all negotiations pertaining
                  to its
                  execution of this Settlement Agreement. Each party further acknowledges
                  that it has received and relied upon advice from its independent
                  counsel
                  with respect to: (a) the meaning and effect of each of the terms
                  and
                  conditions of this Settlement Agreement including, but not limited
                  to, the
                  releases and the waiver of rights under California Civil Code § 1542; and
                  (b) the advisability of entering into this Settlement
                  Agreement.

              

      

       

      
        	 	
                R.

              	
                Independent
                  Investigation by Parties.
                  Each party acknowledges that it has fully investigated the subject
                  matter
                  of this Settlement Agreement and that it is entering into this
                  Settlement
                  Agreement voluntarily, knowingly, and of its own free
                  will.

              

      

       

      
        	 	
                S.

              	
                Successors;
                  Assignment.
                  This Settlement Agreement shall inure to the benefit of and shall
                  be
                  binding upon the heirs, executors, administrators, assigns, and
                  successors
                  in interest of each of the parties entering into it. Any party’s rights
                  hereunder may be assigned to any party succeeding to all or any
                  substantial part of its business. Each party agrees not to use
                  an
                  assignment to evade or avoid its responsibilities
                  hereunder.

              

      

       

      
        	 	
                T.

              	
                Modification
                  of Agreement.
                  No supplement, modification, or amendment to this Settlement Agreement
                  shall be binding unless executed in writing by all of the parties
                  to
                  it.

              

      

       

      
        	 	
                U.

              	
                Severability.
                  If any of the provisions of this Settlement Agreement become invalid,
                  illegal or unenforceable in any respect, the validity, legality
                  and
                  enforceability of the remaining provisions hereof shall not in
                  any way be
                  impacted.

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement
        to be
        executed and delivered by their duly authorized representatives.

       

      
        	
                DATED:
                  August 14, 2008

              	 	
                KENTUCKY
                  OIL TECHNOLOGY, N.V.

              
	 	 	 
	 	 	
                            /s/
                  Peter Besselink

              
	 	 	
                By:
                  Peter Besselink

              
	 	 	
                Title:
                  Managing Director

              
	 	 	 
	
                DATED:
                  August 14, 2008

              	 	
                MEMORY
                  METAL HOLLAND, B.V.

              
	 	 	 
	 	 	
                            /s/
                  Peter Besselink

              
	 	 	
                By:
                  Peter Besselink

              
	 	 	
                Title:
                  Managing Director

              
	 	 	 
	
                DATED:
                  August 14, 2008

              	 	
                PETER
                  BESSELINK

              
	 	 	 
	 	 	
                            /s/
                  Peter Besselink

              
	 	 	
                Peter
                  Besselink

              
	 	 	 
	
                DATED:
                  August 14, 2008

              	 	
                WILFRIED
                  VAN MOORLEGHEM

              
	 	 	 
	 	 	
                            /s/
                  Dr. Wilfried van Moorleghem

              
	 	 	
                Dr.
                  Wilfried van Moorleghem

              
	 	 	 
	 	 	 
	
                DATED:
                  August 14, 2008

              	 	
                UNITED
                  STENTING, INC.

              
	 	 	 
	 	 	
                            /s/
                  Peter Vanderbruggen

              
	 	 	
                By:
                  Peter Vanderbruggen

              
	 	 	
                Title:
                  Managing Director

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      
        	
                DATED:
                  August 14, 2008

              	 	
                MEMRY
                  CORPORATION

              
	 	 	 
	 	 	
                            /s/
                  Robert P. Belcher

              
	 	 	
                By:
                  Robert P. Belcher

              
	 	 	
                Title:
                  Chief Executive Officer

              

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      APPROVED
        AS TO FORM: 

      

      
        	
                DATED:
                  August 13, 2008

              	LUCE,
                FORWARD, HAMILTON & SCRIPPS LLP
	 	 	 
	 	
                By:

              	
                            /s/
                  Michael H. Bierman

              
	 	 	
                Michael
                  H. Bierman

              
	 	 	
                Attorneys
                  for Defendants Peter Besselink and

              
	 	 	
                Memory
                  Metal Holland, B.V. and Defendant

              
	 	 	
                and
                  Counterclaimant Kentucky Oil

              
	 	 	
                Technology,
                  N.V.

              
	 	 	 
	 	 	 
	
                DATED:
                  August 14, 2008

              	CANTOR
                COLBURN LLP
	 	 	 
	 	
                By:

              	
                            /s/
                  William J. Cass

              
	 	 	
                William
                  J. Cass

              
	 	 	
                Attorneys
                  for Plaintiff and Counterdefendant

              
	 	 	
                Memry
                  Corporation

              

      

       

      
        
          
          

        

        
          15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]