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Unassociated Document

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED, SOLD
      OR
      OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
      REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

    

    CONVERSION
      SERVICES INTERNATIONAL, INC.

    

    COMMON
      STOCK PURCHASE WARRANT

    

    December
      29, 2006

    

    THIS
      COMMON STOCK PURCHASE WARRANT (this “Warrant”)
      of
      Conversion Services International, Inc., a corporation duly organized and
      validly existing under the laws of the State of Delaware (the “Company”),
      is
      issued to the Holder (as defined below).

    

    FOR
      VALUE
      RECEIVED, the Company hereby certifies that the registered holder hereof and
      its
      successors and assigns, Taurus
      Advisory Group, LLC, as
      agent
      for the individuals or entities listed on Exhibit
      C
      hereto
      (collectively, the “Holder”),
      is
      entitled to purchase from the Company 1,500,000 duly authorized, validly issued,
      fully paid and nonassessable shares of common stock of the Company, par value
      $0.001 per share (the “Common
      Stock”),
      at a
      purchase price per share equal to $0.30, as may be adjusted to the anti-dilution
      provisions set forth herein (the “Warrant
      Price”).
      The
      person or entity in whose name this Warrant (or one or more predecessor
      Warrants) is registered on the records of the Company regarding registration
      and
      transfers of the Warrant (the “Warrant
      Register”)
      is the
      owner and holder thereof for all purposes, except as described in Section
      11
      hereof.

    

    1. Vesting
      of Warrant.
      This
      Warrant shall vest and become exercisable as of the date hereof.

    

    2.
       Expiration
      of Warrant.
      This
      Warrant shall expire on December 28, 2011 (the “Expiration
      Date”).

    

    3.
       Exercise
      of Warrant.
      This
      Warrant shall be exercisable pursuant to the terms of Section
      1
      and this
Section
      3
      hereof.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

                3.1
Manner
      of
      Exercise. This Warrant may only be exercised by the Holder hereof, in accordance
      with the terms and conditions hereof, in whole or in part with respect to any
      portion of the Warrant, into shares of Common Stock, during normal business
      hours on any day other than a Saturday or a Sunday or a day on which commercial
      banking institutions in New York, New York are authorized by law to be closed
      (a
“Business
      Day”)
      on or
      prior to the Expiration Date with respect to such portion of the Warrant, by
      surrender of this Warrant to the Company at its office maintained pursuant
      to
Section
      11.2(a)
      hereof,
      accompanied by an exercise notice in substantially the form attached to this
      Warrant as Exhibit
      A
      (or a
      reasonable facsimile thereof) duly executed by the Holder, together with the
      payment of the Warrant Price. Anything to the contrary not withstanding,
at
      any
      time that a Registration Statement under the Securities Act of 1933 (the
“Act”)
      covering the shares issuable upon exercise of this Warrant is not
      effective,
      the
      Holder shall have the right, at his election exercised in his sole discretion,
      to exercise the Warrant, in whole or in part, and, in lieu of making the cash
      payment otherwise contemplated to be made to the Company upon such exercise
      in
      payment of the Exercise Price, elect instead to receive upon such exercise
      the
      "Net Number" of shares of Common Stock determined according to the following
      formula (a "Cashless
      Exercise"):
      

     

     

      
      Net Number = (A x B) - (A x C)

    ---------------------

    B

     

    For
      purposes of the foregoing formula: 

    

    A
      = the
      total number of shares with respect to which this Warrant is then being
      exercised.

     

    B
      = the
      Closing Sale Price of the Common Stock on the trading day immediately preceding
      the date of the Exercise Notice. 

     

    C
      = the
      Warrant Exercise Price then in effect for the applicable Warrant Shares at
      the
      time of such exercise.

    

                3.2
  When
      Exercise Effective. Each exercise of this Warrant shall be deemed to have been
      effected immediately prior to the close of business on the Business Day on
      which
      this Warrant shall have been surrendered to the Company as provided in
Section
      3.1
      hereof,
      and, at such time, the corporation, association, partnership, organization,
      business, individual, government or political subdivision thereof or a
      governmental agency (a “Person”
or
      the
“Persons”)
      in
      whose name or names any certificate or certificates for shares of Common Stock
      shall be issuable upon exercise as provided in Section
      3.3
      hereof
      shall be deemed to have become the holder or holders of record thereof.

    

    3.3
        Delivery
      of Stock Certificates. As soon as practicable after each exercise of this
      Warrant, in whole or in part, and in any event within fifteen (15) Business
      Days
      thereafter, the Company at its expense (including the payment by it of any
      applicable issue taxes) will cause to be issued in the name of and delivered
      to
      the Holder hereof or, subject to Section
      10
      hereof,
      as the Holder (upon payment by the Holder of any applicable transfer taxes)
      may
      direct:

    

    (a)
      a
      certificate or certificates (with appropriate restrictive legends, as
      applicable) for the number of duly authorized, validly issued, fully paid and
      nonassessable shares of Common Stock to which the Holder shall be entitled
      upon
      exercise plus, in lieu of any fractional share to which the Holder would
      otherwise be entitled, all issuances of Common Stock shall be rounded up to
      the
      nearest whole share.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    (b)
      in
      case exercise is in part only, a new Warrant of like tenor, dated the date
      hereof and calling in the aggregate on the face thereof for the number of shares
      of Common Stock equal to the number of shares called for on the face of this
      Warrant minus the number of shares designated by the Holder upon exercise as
      provided in Section
      3.1
      hereof
      (without giving effect to any adjustment thereof).

    

    3.4  Company
      to Reaffirm Obligations. The Company will, at the time of each exercise of
      this
      Warrant, upon the written request of the Holder hereof, acknowledge in writing
      its continuing obligation to afford to the Holder all rights (including without
      limitation any rights to registration of the shares of Common Stock issued
      upon
      exercise) to which the Holder shall continue to be entitled after exercise
      in
      accordance with the terms of this Warrant; provided,
      however,
      that if
      the Holder shall fail to make a request, the failure shall not affect the
      continuing obligation of the Company to afford the rights to such
      Holder.

    

    4.
       Adjustment
      of Common Stock Issuable Upon Exercise.
      The
      Warrant Price shall be subject to be adjusted and re-adjusted from time to
      time
      as provided in this Section
      4
      and, as
      so adjusted or re-adjusted, shall remain in effect until a further adjustment
      or
      re-adjustment thereof is required by this Section
      4:

    

    4.1
        Stock
      Dividends; Stock Splits. In case the Company at any time or from time to time
      after the date hereof shall declare or pay any dividend or otherwise make a
      distribution or distributions on the Common Stock payable in Common Stock,
      or
      shall effect a subdivision of the outstanding shares of Common Stock into a
      greater number of shares of Common Stock (by reclassification or otherwise
      than
      by payment of a dividend in Common Stock), then, and in each case, subject
      to
Section
      4.3
      hereof,
      the Warrant Price shall be reduced, concurrently with the dividend or
      subdivision, to a price determined by multiplying the Warrant Price by a
      fraction:

    

    (a)
      the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to the dividend or subdivision; and 

    

    (b)
      the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after the dividend or subdivision.

    

    Additional
      shares of Common Stock shall be deemed to have been issued and to be outstanding
      (a) in the case of any dividend, immediately after the close of business on
      the
      record date for the determination of holders of any class of securities entitled
      to receive the dividend, or (b) in the case of any subdivision, at the close
      of
      business on the day immediately prior to the day upon which the corporate action
      becomes effective. Additional shares of Common Stock deemed to have been issued
      pursuant to this Section
      4.1
      shall be
      deemed to have been issued for no consideration. 

    
      
         

      

      
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    4.2 Other
      Offerings. If
      the Company desires (i) to issue to all holders of its Common Stock rights,
      options, or warrants entitling the holders thereof to subscribe for or purchase
      Common Stock (or securities convertible into or exchangeable for Common Stock)
      at a price per share (or having a conversion price per share, in the case of
      a
      security convertible into or exchangeable for Common Stock) less than the lower
      of the then the Exercise Price or the Current Market Price on the record date
      for the determination of stockholders entitled to receive such rights, or (ii)
      to distribute to all holders of its Common Stock evidences of its indebtedness
      or assets (excluding cash dividends or distributions paid from retained
      earnings) or rights or warrants to subscribe or purchase Common Stock (excluding
      those referred to above), then the Company shall need to obtain the express
      written consent of the Holder prior to such offering 

    

    4.3  Current
      Market Price. For the purpose of any computation under Paragraph
      4.2 of
      this
Section
      4,
      the
      Current Market Price per share of Common Stock on any date shall be deemed
      to be
      the average of the daily closing prices for the 30 consecutive trading days
      commencing 45 trading days before such date. The closing price for each day
      shall be the last reported sales price regular way or, in case no such reported
      sale takes place on such day, the closing bid price regular way, in either
      case
      on the principal national securities exchange on which the Common Stock is
      listed or admitted to trading or, if the Common Stock is not listed or admitted
      to trading on any national securities exchange, the highest reported bid price
      as furnished by the National Association of Securities Dealers, Inc. through
      NASDAQ or similar organization if NASDAQ is no longer reporting such
      information, or by the Pink Sheets, LLC or similar organization if the Common
      Stock is not then quoted on an inter-dealer quotation system. If on any such
      date the Common Stock is not quoted by any such organization, the fair value
      of
      the Common Stock on such date, as determined in good faith by the Company's
      Board of Directors, shall be used.

    

    4.4 Adjustments
      for Combinations. In case the outstanding shares of Common Stock shall be
      combined or consolidated, by reclassification or otherwise, into a lesser number
      of shares of Common Stock, the Warrant Price in effect immediately prior to
      the
      combination or consolidation shall, concurrently with the effectiveness of
      such
      combination or consolidation, be proportionately increased. Adjustment under
      this Section
      4.2
      shall
      become effective at the close of business on the day immediately prior to the
      day upon which the corporate action becomes effective.

    

    4.5
       Minimum
      Adjustment of Warrant Price. If the amount of any adjustment of the Warrant
      Price required pursuant to this Section
      4
      would be
      less than one percent (1%) of the Warrant Price in effect at the time of the
      adjustment is otherwise so required to be made, the amount shall be carried
      forward and adjustment with respect thereto made at the time of and together
      with any subsequent adjustment which, together with the amount and any other
      amount or amounts so carried forward, shall aggregate at least one percent
      (1%)
      of the Warrant Price.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

    5.  Adjustments
      for Consolidation, Merger, Sale of Assets or Reorganization.
      In case
      the Company after the date hereof (a) shall consolidate with or merge into
      any
      other Person and shall not be the continuing or surviving corporation following
      the consolidation or merger, or (b) shall permit any other Person to consolidate
      with or merge into the Company and the Company shall be the continuing or
      surviving Person but, in connection with the consolidation or merger, the Common
      Stock shall be changed into or exchanged for stock or other securities of any
      other Person or cash or any other property, or (c) shall transfer all or
      substantially all of its properties or assets to any other Person, or (d) shall
      effect a capital reorganization or reclassification of the Common Stock, then,
      and in the case of each such transaction, proper provision shall be made so
      that, upon the basis and the terms and in the manner provided in this Warrant,
      the Holder, upon the exercise hereof at any time after the consummation of
      the
      transaction, shall be entitled to receive (at the aggregate Warrant Price in
      effect at the time of such consummation for all Common Stock issuable upon
      exercise immediately prior to the consummation), in lieu of the Common Stock
      issuable upon exercise prior to the consummation, the greatest amount of
      securities, cash or other property to which the Holder would actually have
      been
      entitled as a stockholder upon such consummation if the Holder had exercised
      the
      rights represented by this Warrant immediately prior thereto, subject to
      adjustments (subsequent to the consummation) as nearly equivalent as possible
      to
      the adjustments provided for in Sections
      4
      and
5
      hereof.

    

    6.
       No
      Dilution or Impairment.

    

    6.1  The
      Company will not, by amendment of its certificate of incorporation or through
      any consolidation, merger, reorganization, transfer of assets, dissolution,
      issue or sale of securities or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms of this Warrant, but
      will at all times in good faith assist in the carrying out of all of the terms
      and in the taking of all actions necessary or appropriate in order to protect
      the rights of the Holder. Without limiting the generality of the foregoing,
      the
      Company (a) will not permit the par value of any shares of Common Stock
      receivable upon the exercise of this Warrant to exceed the amount payable
      therefor upon exercise, (b) will take all actions necessary or appropriate
      in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock on the exercise of the Warrant and (c)
      will
      not take any action which results in any adjustment of the Warrant Price if
      the
      total number of shares of Common Stock issuable after the action upon the
      exercise of the Warrant would exceed the total number of shares of Common Stock
      then authorized by the Company's certificate of incorporation and available
      for
      the purpose of issuance upon exercise.

    

    6.2  The
      Company acknowledges that its obligation to issue shares of Common Stock
      issuable upon exercise of this Warrant is binding upon it and enforceable
      regardless of the dilution that such issuance may have on the ownership
      interests of other stockholders.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    

    7.
       Chief
      Financial Officer’s Report as to Adjustments.
      In the
      case of any adjustment or re-adjustment in the shares of Common Stock issuable
      upon the exercise of this Warrant, the Company at its expense will promptly
      compute the adjustment or re-adjustment in accordance with the terms of this
      Warrant and cause its Chief Financial Officer to certify the computation (other
      than any computation of the fair value of property as determined in good faith
      by the Board of Directors of the Company) and prepare a report setting forth
      the
      adjustment or re-adjustment and showing in reasonable detail the method of
      calculation thereof and the facts upon which the adjustment or re-adjustment
      is
      based, including a statement of (a) the number of shares of Common Stock
      outstanding or deemed to be outstanding and (b) the Warrant Price in effect
      immediately prior to the deemed issuance or sale and as adjusted and re-adjusted
      (if required by Section
      4
      hereof)
      on account thereof. The Company will forthwith mail a copy of each report to
      each holder of a Warrant and will, upon the written request at any time of
      any
      holder of a Warrant, furnish to the holder a like report setting forth the
      Warrant Price at the time in effect and showing in reasonable detail how it
      was
      calculated. The Company will also keep copies of all reports at its office
      maintained pursuant to Section
      11.2(a)
      hereof
      and will cause them to be available for inspection at the office during normal
      business hours upon reasonable notice by any holder of a Warrant or any
      prospective purchaser of a Warrant designated by the holder
      thereof.

    

    8. Reservation
      of Shares.
      The
      Company shall at all times reserve and keep available out of its authorized
      but
      unissued shares of Common Stock, free from all taxes, liens and charges with
      respect to the issue thereof and not be subject to preemptive rights or other
      similar rights of stockholders of the Company, solely for the purpose of
      effecting the exercise of this Warrant, such number of its shares of Common
      Stock as shall from time to time be sufficient to effect the exercise thereof,
      and if at any time the number of authorized but unissued shares of Common Stock
      shall not be sufficient to effect the exercise of this Warrant, in addition
      to
      such other remedies as shall be available to Holder, the Company will take
      such
      corporate action as may, in the opinion of its counsel, be necessary to increase
      the number of authorized but unissued shares of Common Stock to such number
      of
      shares as shall be sufficient for such purposes, including without limitation,
      using its best efforts to obtain the requisite stockholder approval necessary
      to
      increase the number of authorized shares of the Company’s Common Stock. All
      shares of Common Stock issuable upon exercise of the Warrant shall be duly
      authorized and, when issued upon exercise, shall be validly issued and, in
      the
      case of shares, fully paid and nonassessable.

    

    9. Listing.
      The
      Company shall at all times comply in all respects with the Company’s reporting,
      filing and other obligations under the by-laws or rules of the upon each
      national securities exchange or automated quotation system upon which shares
      of
      Common Stock are then listed and shall list the shares issuable upon the
      exercise of this Warrant on such national securities exchange.

    

    10.
       Restrictions
      on Transfer.

    

    10.1
       Restrictive
      Legends. This Warrant and each Warrant issued upon transfer or in substitution
      for this Warrant pursuant to Section
      11,
      each
      certificate for Common Stock issued upon the exercise of any Warrant and each
      certificate issued upon the transfer of any such Common Stock shall be
      transferable only upon satisfaction of the conditions specified in this
Section
      10.
      Each of
      the foregoing securities shall be stamped or otherwise imprinted with a legend
      reflecting the restrictions on transfer set forth in this Section
      10
      and any
      restrictions required under the Act.

    
      
         

      

      
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    10.2 Notice
      of
      Proposed Transfer; Opinion of Counsel. Prior to any transfer of any securities
      that are not registered under an effective registration statement under the
      Act
      (“Restricted
      Securities”),
      the
      Holder will give written notice to the Company of the Holder's intention to
      affect a transfer and to comply in all other respects with this Section
      10.2.
      Each
      notice (a) shall describe the manner and circumstances of the proposed transfer,
      and (b) shall designate counsel for the Holder giving the notice (who may be
      in-house counsel for the Holder). The Holder giving notice will submit a copy
      thereof to the counsel designated in the notice. The following provisions shall
      then apply:

    

    (i)
      If in
      the opinion of counsel for the Holder reasonably satisfactory to the Company
      the
      proposed transfer (i.e. private sale of Restricted Securities) may be effected
      without registration of Restricted Securities under the Act (which opinion
      shall
      state the basis of the legal conclusions reached therein), the Holder shall
      thereupon be entitled to transfer the Restricted Securities in accordance with
      the terms of the notice delivered by the Holder to the Company. Each certificate
      representing the Restricted Securities issued upon or in connection with any
      transfer shall bear the restrictive legends required by Section
      10.1
      hereof.

    

    (ii)
      If
      the opinion called for in (i) above is not delivered, the Holder shall not
      be
      entitled to transfer the Restricted Securities until either (x) receipt by
      the
      Company of a further notice from such Holder pursuant to the foregoing
      provisions of this Section
      10.2
      and
      fulfillment of the provisions of clause (i) above, or (y) such Restricted
      Securities have been effectively registered under the Act.

     

    10.3
       Termination
      of Restrictions. The restrictions imposed by this Section
      10
      upon the
      transferability of Restricted Securities shall cease and terminate as to any
      particular Restricted Securities: (a) which Restricted Securities shall have
      been effectively registered under the Act, or (b) when, in the opinions of
      both
      counsel for the holder thereof and counsel for the Company, which opinion shall
      not be unreasonably withheld, such restrictions are no longer required in order
      to insure compliance with the Act or this Section
      10.
      Whenever such restrictions shall cease and terminate as to any Restricted
      Securities, the Holder thereof shall be entitled to receive from the Company,
      without expense (other than applicable transfer taxes, if any), new securities
      of like tenor not bearing the applicable legends required by Section
      10.1
      hereof.

    

    11.
       Ownership,
      Transfer and Substitution of Warrant.

    

    11.1
       Ownership
      of Warrant. The Company may treat the person in whose name this Warrant is
      registered to in the Warrant Register maintained pursuant to Section
      11.2(a)
      hereof
      as the owner and holder thereof for all purposes, notwithstanding any notice
      to
      the contrary, except that, if and when any Warrant is properly assigned by
      a
      notice in substantially the form attached to this Warrant as Exhibit
      B
      (or a
      reasonable facsimile thereof) duly executed by the Holder in blank, the Company
      shall treat the bearer thereof as the owner of such Warrant for all purposes,
      notwithstanding any notice to the contrary. Subject to Section
      10
      hereof,
      this Warrant, if properly assigned, may be exercised by a new holder without
      a
      new Warrant first having been issued.

    
      
         

      

      
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    11.2
       Office;
      Transfer and Exchange of Warrant.

    

    (a)
      The
      Company will maintain an office (which may be an agency maintained at a bank)
      at
      100 Eagle Rock Avenue, East Hanover, New Jersey 07936 (until the Company
      notifies the Holder of any change of location of the office) where notices,
      presentations and demands in respect of this Warrant may be made upon
      it.

    

    (b)
      The
      Company shall cause to be kept at its office maintained pursuant to Section
      11.2(a)
      hereof a
      Warrant Register for the registration and transfer of the Warrant. The names
      and
      addresses of holders of the Warrant, the transfers thereof and the names and
      addresses of transferees of the Warrant shall be registered in such Warrant
      Register. The Person in whose name any Warrant shall be so registered shall
      be
      deemed and treated as the owner and holder thereof for all purposes of this
      Warrant, and the Company shall not be affected by any notice or knowledge to
      the
      contrary.

    

    (c)
      Upon
      the surrender of this Warrant, properly endorsed, for registration of transfer
      or for exchange at the office of the Company maintained pursuant to Section
      11.2(a)
      hereof,
      the Company at its expense will (subject to compliance with Section
      10
      hereof,
      if applicable) execute and deliver to or upon the order of the Holder thereof
      a
      new Warrant of like tenor, in the name of such holder or as such holder (upon
      payment by such holder of any applicable transfer taxes) may direct, calling
      in
      the aggregate on the face thereof for the number of shares of Common Stock
      called for on the face of the Warrant so surrendered.

    

    11.3
       Replacement
      of Warrant. Upon receipt of evidence reasonably satisfactory to the Company
      of
      the loss, theft, destruction or mutilation of the Warrant and, in the case
      of
      any such loss, theft or destruction of the Warrant, upon delivery of indemnity
      reasonably satisfactory to the Company in form and amount or, in the case of
      any
      mutilation, upon surrender of the Warrant for cancellation at the office of
      the
      Company maintained pursuant to Section
      11.2(a)
      hereof,
      the Company at its expense will execute and deliver, in lieu thereof, a new
      Warrant of like tenor and dated the date hereof.

    

    12.
       No
      Rights or Liabilities as Stockholder.
      Except
      as may otherwise be provided herein, no Holder shall be entitled to vote or
      receive dividends or be deemed the holder of any shares of Common Stock or
      any
      other securities of the Company which may at any time be issuable on the
      exercise hereof for any purpose, nor shall anything contained herein be
      construed to confer upon the Holder, as such, any of the rights of a stockholder
      of the Company or any right to vote for the election of directors or upon any
      matter submitted to stockholders at any meeting thereof, or to give or withhold
      consent to any corporate action (whether upon any recapitalization, issuance
      of
      stock, reclassification of stock, change of par value, consolidation, merger,
      conveyance, or otherwise) or to receive notice of meetings, or to receive
      dividends or subscription rights or otherwise until the Warrant shall have
      been
      exercised and the shares of Common Stock purchasable upon the exercise hereof
      shall have become deliverable, as provided herein. The Holder will not be
      entitled to share in the assets of the Company in the event of liquidation,
      dissolution or the winding up of the Company.

    
      
         

      

      
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    13.
       Notices.
      Any
      notice or other communication in connection with this Warrant shall be deemed
      to
      be given if in writing (or in the form of a facsimile) addressed as hereinafter
      provided and actually delivered at such address: (a) if to any Holder, at the
      registered address of such holder as set forth in the Warrant Register kept
      at
      the office of the Company maintained pursuant to Section
      11.2(a)
      hereof,
      or (b)
      if to
      the Company, to the attention of its Chief Financial Officer at its office
      maintained pursuant to Section
      11.2(a)
      hereof;
provided,
      however,
      that
      the exercise of any Warrant shall be effective in the manner provided in
Section
      3
      hereof.

    

    14. Payment
      of Taxes.
      The
      Company will pay all documentary stamp taxes attributable to the issuance of
      shares of Common Stock underlying this Warrant upon exercise of this Warrant;
      provided,
      however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer involved in the registration of any certificate for shares
      of
      Common Stock underlying this Warrant in a name other that of the Holder. The
      Holder is responsible for all other tax liability that may arise as a result
      of
      holding or transferring this Warrant or receiving shares of Common Stock
      underlying this Warrant upon exercise hereof.

    

    15. Warrant
      Agent.
      The
      Company shall serve as warrant agent under this Warrant. Upon thirty (30) days
      notice to the Holder, the Company may appoint a new warrant agent. Any
      corporation into which the Company or any new warrant agent may be merged or
      any
      corporation resulting from any consolidation to which the Company or any new
      warrant agent shall be a party or any corporation to which the Company or any
      new warrant agent transfers substantially all of its corporate trust or
      stockholders services business shall be successor warrant agent under this
      Warrant without any further act. Any such successor warrant agent shall promptly
      cause notice of its succession as warrant agent to be mailed (by first class
      mail, postage prepaid) to the Holder at the Holder’s last address as shown on
      the Warrant Register.

    

    16. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of the change, waiver, discharge or termination is sought. This Warrant shall
      be
      construed and enforced in accordance with and governed by the laws of the State
      of Delaware. The section headings in this Warrant are for purposes of
      convenience only and shall not constitute a part hereof.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

      IN
        WITNESS WHEREOF, the Company has caused this Common Stock Purchase Warrant
        to be
        duly executed as of the date first above written.

      

      
        	 	
                CONVERSION
                  SERVICES INTERNATIONAL, INC.

              
	 	 	 
	 	 	 
	 	 	 
	 	
                By:

              	
                 /s/
                  Scott Newman

              
	 	 	
                Name:
                  Scott Newman

              
	 	 	
                Title:
                  President and Chief Executive
                  Officer

              

      

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      FORM
        OF
        EXERCISE NOTICE

      

      [To
        be
        executed only upon conversion of Warrant]

      

      

      To
        CONVERSION SERVICES INTERNATIONAL, INC.:

      

      The
        undersigned registered holder of the within Warrant hereby irrevocably exercises
        the Warrant pursuant to Section
        3.1
        of the
        Warrant with respect to __________(1) shares of the Common Stock, at an exercise
        price per share of Common Stock of $____, which the holder would be entitled
        to
        receive upon the cash exercise hereof, and requests that the certificates
        for
        the shares be issued in the name of, and delivered to, whose address
        is:

      

      

      Dated:
        _______________ 

      

      

      
        	 	
                ________________________________________

              
	 	
                Print
                  or Type Name

              
	 	 
	 	
                ________________________________________

              
	
                 

              	
                (Signature
                  must conform in all respects to name of holder as specified on
                  the face of
                  Warrant)

              
	 	 
	 	
                ________________________________________

              
	 	
                (Street
                  Address)

              
	 	 
	 	
                ________________________________________

              
	 	
                (City)    
                  (State)     (Zip
                  Code)

              

      

      

      

      

      

      

      

      _______________________

      (1)
        Insert here the number of shares called for on the face of this Warrant (or,
        in
        the case of a partial exercise, the portion thereof as to which this Warrant
        is
        being exercised), in either case without making any adjustment of shares
        of
        Common Stock or any other stock or other securities or property or cash which,
        pursuant to the adjustment provisions of this Warrant, may be delivered upon
        exercise. In the case of a partial exercise, a new Warrant or Warrants will
        be
        issued and delivered, representing the unconverted portion of the Warrant,
        to
        the holder surrendering the Warrant.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      EXHIBIT
        B

      

      FORM
        OF
        ASSIGNMENT

      

      [To
        be
        executed only upon transfer of Warrant]

      

      For
        value
        received, the undersigned registered holder of the within Warrant hereby
        sells,
        assigns and transfers unto _____________________ the right represented by
        the
        Warrant to purchase __________(1) shares of Common Stock of CONVERSION SERVICES
        INTERNATIONAL, INC. to which the Warrant relates, and appoints
        _____________________ Attorney to make such transfer on the books of CONVERSION
        SERVICES INTERNATIONAL, INC. maintained for the purpose, with full power
        of
        substitution in the premises.

      

      

      
        	
                Dated:

              	
                ________________________________________

              
	 	
                (Signature
                  must conform in all respects 

              
	 	
                to
                  name of holder as specified on the

              
	 	
                face
                  of Warrant)

              
	 	 
	 	
                ________________________________________

              
	 	
                (Street
                  Address)

              
	 	 
	 	
                ________________________________________

              
	 	
                (City)     (State)     (Zip
                  Code)

              
	 	 
	
                Signed
                  in the presence of:

              
	 	 
	 	
                ________________________________________

              
	 	
                (Signature
                  of Transferee)

              
	 	 
	 	
                ________________________________________

              
	 	
                (Street
                  Address)

              
	 	 
	 	
                ________________________________________

              
	 	
                (City)     (State)     (Zip
                  Code)

              

      

      Signed
        in
        the presence of:

      

      _______________________

      (1)
        Insert here the number of shares called for on the face of this Warrant (or,
        in
        the case of a partial exercise, the portion thereof as to which this Warrant
        is
        being exercised), in either case without making any adjustment of shares
        of
        Common Stock or any other stock or other securities or property or cash which,
        pursuant to the adjustment provisions of this Warrant, may be delivered upon
        exercise. In the case of a partial exercise, a new Warrant or Warrants will
        be
        issued and delivered, representing the unexercised portion of the Warrant,
        to
        the holder surrendering the Warrant.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      EXHIBIT
        C

      

       

      

      
        
           

        

        
          13Exhibit 10.1

--------------------------------------------------------------------------------

                    ACQUISITION AGREEMENT AND PLAN OF MERGER

                           dated as of August 25, 2006

                                  by and among

                          GARDANT PHARMACEUTICALS, INC.

                              SWITCH PHARMA LIMITED

                                       and

                 GARDANT PHARMACEUTICALS ACQUISITION CORPORATION

--------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
                                                     TABLE OF CONTENTS

                                                                                                            Page
<S>                                                                                                           <C>
1.       DEFINITIONS ......................................................................................    2

2.       THE MERGER .......................................................................................    4
         2.1      The Merger ..............................................................................    4
         2.2      Effective Time; Closing .................................................................    4
         2.3      Effect of the Merger ....................................................................    4
         2.4      Certificate of Incorporation; By-laws ...................................................    4
         2.5      Directors and Officers ..................................................................    4
         2.6      Conversion of Securities ................................................................    5
         2.7      Employee Stock Options, Company Warrants, Company Preferred Stock and Other Securities ..    5
         2.8      Exchange of Certificates ................................................................    6
         2.9      Appraisal Rights ........................................................................    7
         2.10     Stock Transfer Books ....................................................................    8
         2.11     Shares Not Registered; Transfer Restrictions ............................................    8

3.       CERTAIN MATTERS PERTAINING TO EPRESENTATIONS AND WARRANTIES OF COMPANY ...........................    8
         3.1      Warranties by Company ...................................................................    8
         3.2      Limitation on Liability .................................................................    8
         3.3      Each Warranty Separate ..................................................................    8
         3.4      No Responsibility for Certain Changes ...................................................    8
         3.5      No Other Representations or Warranties ..................................................    8

4.       REPRESENTATIONS OF PURCHASER .....................................................................    8
         4.1      Authorization of Merger Shares ..........................................................    8
         4.2      Corporate Existence and Power; Enforceability; No Conflict ..............................    8
         4.3      Issuance of Merger Shares ...............................................................    9
         4.4      Consents and Approvals ..................................................................    9

5.       COVENANTS PRIOR TO CLOSING .......................................................................    9
         5.1      Access and Cooperation; Due Diligence ...................................................    9
         5.2      Conduct of Business Pending Closing .....................................................   10
         5.3      Prohibited Activities ...................................................................   10
         5.4      Newco ...................................................................................   11
         5.5      Further Assurances ......................................................................   12
         5.6      Listing of Common Stock of Purchaser for Trading ........................................   12

6.       CONDITIONS PRECEDENT TO OBLIGATIONS OF COMPANY ...................................................   12
         6.1      Representations and Warranties; Performance of Obligations ..............................   12
         6.2      No Litigation ...........................................................................   12
         6.3      Consents and Approvals ..................................................................   12
         6.4      Secretary's Certificate .................................................................   12
         6.5      Other Closing Conditions ................................................................   12
         6.6      Shareholder Consent .....................................................................   12
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                           <C>
7.       CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER AND NEWCO .......................................   13
         7.1      Representations and Warranties; Performance of Obligations ..............................   13
         7.2      No Litigation ...........................................................................   13
         7.3      Consents and Approvals ..................................................................   13
         7.4      No Material Adverse Effect ..............................................................   13
         7.5      Secretary's Certificate .................................................................   14
         7.6      Other Closing Conditions ................................................................   14
         7.7      Shareholder Consent .....................................................................   14
         7.8      Exemption from Registration .............................................................   14

8.       SURVIVAL OF REPRESENTATIONS AND WARRANTIES .......................................................   14
         8.1 Survival of Representations and Warranties ...................................................   14

9.       TERMINATION OF AGREEMENT .........................................................................   14
         9.1      Termination .............................................................................   14
         9.2      Liabilities in Event of Termination .....................................................   15

10.      COVENANTS POST-CLOSING ...........................................................................   15
         10.1     Payment of Taxes ........................................................................   15
         10.2     Cooperation on Tax Matters ..............................................................   15

11.      GENERAL                                                                                              15
         11.1     Cooperation .............................................................................   15
         11.2     Successors and Assigns ..................................................................   16
         11.3     Entire Agreement ........................................................................   16
         11.4     Counterparts ............................................................................   16
         11.5     Brokers and Agents ......................................................................   16
         11.6     Expenses ................................................................................   16
         11.7     Notices .................................................................................   16
         11.8     Governing Law ...........................................................................   16
         11.9     Jurisdiction and Venue ..................................................................   16
         11.10    Survival of Representations and Warranties ..............................................   17
         11.11    Exercise of Rights and Remedies .........................................................   17
         11.12    Time ....................................................................................   17
         11.13    Reformation and Severability ............................................................   17
         11.14    Remedies Cumulative .....................................................................   17
         11.15    Captions ................................................................................   17
         11.16    Representation by Counsel ...............................................................   18
         11.17    Amendments; Waivers .....................................................................   18
         11.18    Public Announcements ....................................................................   18
         11.19    Transfer Restrictions; Compliance with Securities Laws ..................................   18
</TABLE>

                                       ii
<PAGE>

                    ACQUISITION AGREEMENT AND PLAN OF MERGER

      THIS ACQUISITION AGREEMENT AND PLAN OF MERGER (the "Agreement") is made as
of August 25 2006 by and among Gardant Pharmaceuticals, Inc., a corporation
incorporated under the laws of the State of Nevada with offices at Savannah
House, 11-12 Charles II Street, London, England SW1Y 4QU ("Company" or
"Surviving Corporation"), Switch Pharma Limited, a corporation incorporated
under the laws of England & Wales whose registered office is at Kent Science
Park, Wood Stock House, Winch Road, Sittingbourne, Kent, ME9 8AG ("Purchaser" or
"SPL"), and Gardant Pharmaceuticals Acquisition Corporation, a corporation
to-be-formed under the laws of the State of Nevada and which shall be a
wholly-owned subsidiary of Purchaser ("Newco" or "Merger Sub").

                                    RECITALS

      WHEREAS, Newco is a corporation-to-be-formed under the laws of the State
of Nevada for the purpose of being merged with and into Company (the "Merger"),
with Company being the Surviving Corporation in the Merger;

      WHEREAS, Newco, upon formation and at the time of the Merger, shall be a
wholly-owned subsidiary of Purchaser;

      WHEREAS, the parties hereto desire for Newco to merge with and into the
Company, with the Company being the Surviving Corporation in the Merger, in
accordance with the Nevada Revised Statutes, as amended ("NRS");

      WHEREAS, the Board of Directors of the Company has (i) determined that the
Merger is fair to the holders of shares of the Company ("Shares") and is in the
best interests of such stockholders and (ii) approved this Agreement and all of
the transactions contemplated hereby (the "Company Board Approval") and
unanimously has recommended that the stockholders of the Company adopt this
Agreement and approve the Merger, and such approval and recommendation have not
been amended or rescinded;

      WHEREAS, the Board of Directors of Purchaser has approved and adopted this
Agreement and the transactions contemplated hereby and such approval (the
"Purchaser Board Approval") has not been amended or rescinded;

      WHEREAS, actions by written consent of shareholders of the Company owning
outstanding Shares carrying the right to cast a majority of the votes which may
be cast by all shares of each class of the Company's outstanding securities in
any election of directors are binding as the vote of shareholders of the
Company; and

      WHEREAS, shareholders of the Company owning outstanding shares of the
Company carrying the right to cast a majority of the votes which may be cast by
all shares of each class of the Company's outstanding securities in any election
of directors have agreed by written consent (the "Company Shareholders Written
Consent") to approve this Acquisition Agreement and the Merger and such consent
has not been amended or rescinded;

<PAGE>

      NOW, THEREFORE, in consideration of the premises and of the mutual
agreements, representations, warranties, provisions and covenants herein
contained, the parties hereto hereby agree as follows:

1. DEFINITIONS

      Unless the context otherwise requires, capitalized terms used in this
Agreement or in any schedule attached hereto and not otherwise defined shall
have the following meanings for all purposes of this Agreement:

      "Affiliate" means, with respect to any Person, any Person that directly,
or indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person.

      "Business Day" means any day other than a Saturday or a Sunday) on which
commercial banks are open for banking operations in both New York, New York and
London, England.

      "CA" means the Companies Act 1985.

      "Companies Acts" means the CA, the former Companies Acts (within the
meaning of CAs 735 (1) and the Companies Act 1989.

      "Company" means Gardant Pharmaceuticals, Inc, a Nevada Corporation.

      "Disclosure Documents" the bundle of documents initialled on behalf of the
Company and the Purchaser for the purposes of identification and delivered with
the letter referred to in the definition of "Disclosure Letter".

      "Disclosure Letter" means the letter of even date herewith from the
Company to the Purchaser specifying exceptions to the Warranties and the
Disclosure Documents.

      "Encumbrance" means any (other than by virtue of this Agreement) interest
or equity of any person (including any right to acquire, option or right of
pre-emption) or any mortgage, charge, pledge, lien, assignment, hypothecation,
security interest, title retention or any other security agreement or
arrangement.

      "GAAP" means generally accepted accounting principles as used in the
applicable national jurisdiction, applied on a consistent basis.

      "ICTA" means the Income and Corporation Taxes Act 1988.

      "Intellectual Property" means any patent, patent application, know-how,
trade mark, trade mark application, trade name, registered design, copyright or
other similar industrial or commercial right.

                                       2
<PAGE>

      "Knowledge" means the actual knowledge of the officers of the applicable
party.

      "Laws" shall mean all laws, common laws, rules, regulations, ordinances,
codes, judgments, injunctions, orders, decrees, permits, policies and other
requirements of the United States and other jurisdictions to which any party to
this Agreement, as applicable, or its respective properties, assets or
businesses, are subject.

      "Liability" or "Liabilities" means liabilities or obligations of any kind,
character or description, whether accrued, absolute, secured or unsecured,
contingent or otherwise, unless otherwise specified.

      "Material Adverse Effect" means, with respect to any Person, a material
adverse effect on the business, operations, properties, assets, condition
(financial or otherwise) or results of operations of such Person, taken as a
whole.

      "Merger Consideration" means 81,914,283 shares in the Purchaser.

      "Permitted Encumbrances" means (i) any lien for Taxes not yet due or
delinquent or Taxes being contested in good faith by appropriate proceedings and
properly reserved for in accordance with GAAP, (ii) any statutory lien arising
in the ordinary course of business by operation of law with respect to an
obligation or liability that is not yet due or delinquent, and (iii) any minor
imperfection of title or similar lien or encumbrance which individually or in
the aggregate with other imperfections of title, liens or encumbrances could not
reasonably be expected to have a Material Adverse Effect on the applicable
Person.

      "Person" means an individual or a corporation, limited partnership,
general partnership, limited liability company, trust, unincorporated
association, joint venture, association or government or any agency,
instrumentality or political subdivision thereof, or any other entity.

      "Record" means information that is inscribed on a tangible medium or that
is stored in an electronic or other medium and is retrievable in perceivable
form.

      "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder by the United States Securities and
Exchange Commission (the "SEC").

      "Shares" means the entire issued share capital in the Company as set out
in Schedule 1;

      "Subsidiary" means, as to any Person, any Person other than an individual,
50% or more of the shares of voting stock (or in the case of such a Person which
is not a corporation, 50% or more of the equity interests that provide the power
to manage, elect the management or direct the management of such Person) of
which is at the time any determination is being made, owned or controlled,
directly or indirectly, by such Person and its wholly owned Subsidiaries.

                                       3
<PAGE>

2. THE MERGER

      2.1 The MergerIn accordance with the NRS and subject to and upon the terms
and conditions of this Agreement, at the Effective Time (as hereinafter
defined), Newco shall be merged with and into the Company. As a result of the
Merger, the separate corporate existence of Newco shall cease and the Company
shall continue as the surviving corporation of the Merger (the "Surviving
Corporation").

      2.2 Effective Time; ClosingOn the Closing Date (as defined below), the
parties hereto shall cause the Merger to be consummated by filing a certificate
of merger (the "Certificate of Merger") with the Secretary of State of the State
of Nevada, in such form as is required by, and executed in accordance with, the
relevant provisions of the NRS (the date and time of such filing being the
"Effective Time").

            (a) The consummation of the transactions contemplated by this
Agreement (the "Closing") shall take place on September 29, 2006, or as promptly
thereafter as the conditions to the Closing have been satisfied or waived by the
appropriate Person or Persons not later than October 31, 2006 or such other date
as may be mutually agreed by the parties to this Agreement (the "Closing Date"),
at such office as Purchaser shall designate.

      2.3 Effect of the MergerAt the Effective Time, the effect of the Merger
shall be as provided in this Agreement, the Certificate of Merger and the
applicable provisions of the NRS. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time, all the property, rights,
privileges, powers and franchises of Company and Newco shall vest in the
Surviving Corporation, and all debts, liabilities, obligations, restrictions,
disabilities and duties of Company and Newco shall become the debts,
liabilities, obligations, restrictions, disabilities and duties of the Surviving
Corporation.

      2.4 Certificate of Incorporation; By-laws

            (a) At the Effective Time, the certificate of incorporation of
Company, as in effect immediately prior to the Effective Time, shall be the
certificate of incorporation of the Surviving Corporation until thereafter
amended as provided by the NRS and such certificate of incorporation.

            (b) At the Effective Time, the by-laws of Company, as in effect
immediately prior to the Effective Time, shall be the by-laws of the Surviving
Corporation until thereafter amended as provided by the NRS, the certificate of
incorporation of the Surviving Corporation and such by-laws.

      2.5 Directors and Officers(a) The directors of Company immediately prior
to the Effective Time shall be the initial directors of the Surviving
Corporation, each to hold office in accordance with the certificate of
incorporation and by-laws of the Surviving Corporation, and the officers of
Company immediately prior to the Effective Time shall be the initial officers of
the Surviving Corporation, in each case until their respective successors are
duly elected or appointed and qualified or until their earlier death,
resignation or dismissal.

                                       4
<PAGE>

      2.6 Conversion of SecuritiesAt the Effective Time, by virtue of the Merger
and without any action on the part of Purchaser, Newco, Company or the holders
of any of their respective securities:

            (a) Subject to Section 2.9, each share of Company's common stock
(the "Company Common Stock" or the "Shares"), issued and outstanding at the
Effective Time (other than shares canceled pursuant to Section 2.6(b), if any),
shall be exchanged and converted automatically into the right to receive the
number of whole shares of Purchaser's common shares, (the "Purchaser Common
Stock") which is the quotient obtained by dividing the number 81,914,283 by the
sum of all Shares issued and outstanding at the Effective Time, all such shares
of Purchaser Common Stock being the "Merger Consideration," and each share of
Purchaser Common Stock constituting a part of the Merger Consideration being
sometimes hereinafter referred to as a "Merger Share."

                  (i) Notwithstanding the foregoing, the number 81,914,283 in
the calculation above was established on the assumption that shares of Purchaser
Common Stock shall be trading for at least $1.03 per share at the first day of
trading of Purchaser Common Stock on a London market on or after the Closing
Date. If and to the extent that shares of Purchaser Common Stock do not trade
for at least $1.03 per share on the first day on which such shares trade on a
London market on or after the Closing Date, the number 81,914,283 shall be
adjusted upwards by the same percentage as the shortfall from $1.03 per share
represents as a percentage of $1.03. In such event, any such additional shares
shall be delivered as soon as practical after the Closing in a fashion
consistent with this Agreement as additional adjusted Merger Consideration and
shall be deemed to be part of the Merger Consideration.

            (b) Each share of capital stock held in the treasury of Company and
each share of capital stock of Company, if any, otherwise owned by any
Subsidiary of Company immediately prior to the Effective Time, by virtue of the
Merger and without any action on the part of the holder thereof, shall be
canceled without any conversion thereof and no payment or distribution shall be
made with respect thereto; and

            (c) Each share of common stock of Newco issued and outstanding
immediately prior to the Effective Time shall, by virtue of the Merger and
without any action on the part of the holder thereof, be converted into and
exchanged for one validly issued, fully paid and nonassessable share of common
stock of the Surviving Corporation.

      2.7 Employee Stock Options, Company Warrants, Company Preferred Stock and
Other Securities

            (a) At the Effective Time, each outstanding option to purchase
Shares under any Company stock option, stock purchase, restricted stock, phantom
stock or similar plan (the "Company Stock Option Plans") not exercised prior to
the Closing Date will terminate. Prior to the Closing Date, Company shall take
any corporate action necessary to effectuate the foregoing and Company shall
give any required notice to participants in the Company Stock Option Plans of
the cancellation of the plan, and that each participant shall have the right to
exercise his or her outstanding option(s) under the plan in full prior to the
Closing Date.

                                       5
<PAGE>

            (b) On or prior to the Effective Time, Company shall take all action
that may be necessary (under the plans pursuant to which any Company options or
similar instruments or rights are outstanding and otherwise) to effectuate the
provisions of this Section 2.7 and to ensure that, from and after the Effective
Time, holders of such securities shall have no rights in connection with the
Merger with respect thereto other than those specifically provided in this
Section 2.7.

            (c) At the Effective Time, each outstanding option to purchase
Shares under any warrant to purchase Company securities (the "Company
Warrants"), if any, that is not exercised on or prior to the Closing Date, will
terminate. Prior to the Closing Date, Company shall take any corporate action
necessary to effectuate the foregoing and Company shall give any required notice
to holders of Company Warrants of the cancellation of such Company Warrants, and
each holder shall have the right to exercise his or her Company Warrant in full
prior to the Closing Date.

            (d) On or prior to the Effective Time, Company shall take any and
all corporate action necessary to cause each outstanding share of Company
preferred stock, if any, and any other security, right or other instrument or
agreement to acquire, directly or indirectly, any security of Company, whether
by acquisition, exchange, exercise, conversion or otherwise, which has not
converted into shares of the Company Common Stock on or prior to the Closing
Date, to terminate or otherwise cease to be outstanding, without any monetary or
other claim against Company or its assets or Purchaser or Newco, as of the
Closing Date, and all such securities shall be cancelled and shall cease to be
outstanding as of the Effective Time.

      2.8 Exchange of Certificates

            (a) Exchange Procedures. As promptly as practicable after the
Effective Time, Purchaser shall mail to each holder of a certificate or
certificates which immediately prior to the Effective Time represented
outstanding Shares (the "Certificates") (i) a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the
Certificates shall pass, only upon proper delivery of the Certificates to
Purchaser, and shall be in customary form) and (ii) instructions for use in
effecting the surrender of the Certificates in exchange for the right to receive
the Merger Consideration. Upon surrender to Purchaser of a Certificate for
cancellation, together with such letter of transmittal, duly executed, and such
other documents as may be reasonably required pursuant to such instructions
under applicable securities laws, the holder of such Certificate shall be
entitled to receive in exchange therefor the whole shares of the Merger
Consideration, in accordance with Section 2.6, which such holder has the right
to receive in respect of the Shares formerly represented by such Certificate
(after taking into account all Shares then held by such holder), but no
fractional shares shall be issued and no cash or other consideration shall be
issued or delivered in respect of any such fractional share interests, and the
Certificate so surrendered shall forthwith be cancelled. In the event of a
transfer of ownership of Shares that is not registered in the transfer records
of Company, the Merger Consideration such holder has the right to receive in
respect of the Shares may be issued/distributed to a transferee if the
Certificate representing such Shares is presented to Purchaser, accompanied by
all documents required to evidence and effect such transfer and by evidence that
any applicable stock transfer taxes have been paid. Until surrendered as
contemplated by this Section 2.8, each Certificate shall be deemed at any time
after the Effective Time to represent only the right to receive upon such
surrender the Merger Consideration which such holder has the right to receive in
respect of the Shares formerly represented by such Certificate.

                                       6
<PAGE>

            (b) Distributions with Respect to Unexchanged Shares of Purchaser
Securities. No dividends or other distributions declared or made after the
Effective Time with respect to Merger Shares with a record date after the
Effective Time shall be paid to the holder of any unsurrendered Certificate with
respect to Merger Shares represented thereby until the holder of such
Certificate shall surrender such Certificate. Subject to the effect of escheat,
tax or other applicable laws, following surrender of any such Certificate, there
shall be paid to the holder of the certificates representing whole shares of
Merger Shares issued in exchange therefor, without interest, (i) promptly, the
amount of dividends or other distributions with a record date after the
Effective Time, if any, and theretofor paid with respect to such whole shares of
Merger Shares, and (ii) at the appropriate payment date, the amount of dividends
or other distributions, with a record date after the Effective Time, if any, but
prior to surrender and a payment date occurring after surrender, payable with
respect to such whole shares of Merger Shares.

            (c) No Further Rights in Company Common Stock. All shares of Merger
Shares issued upon conversion of the Shares shall be deemed to have been issued
in full satisfaction of all rights pertaining to such Shares.

            (d) No Fractional Shares. No certificates or scrip representing
fractional shares of Merger Shares shall be issued upon the surrender for
exchange of Certificates, and such fractional share interests will not entitle
the owner thereof to vote or to any other rights of a stockholder of Purchaser.
No cash or other consideration shall be paid for any fractional share issuance
to which such holder would otherwise be entitled.

            (e) No Liability. Neither Purchaser nor the Company shall be liable
to any holder of Shares for any such Shares (or dividends or distributions with
respect hereto), or cash delivered to a public official pursuant to any
abandoned property, escheat or similar Law.

            (f) Withholding Rights. Each of Surviving Corporation and Purchaser
shall be entitled to deduct and withhold from the consideration otherwise
payable pursuant to this Agreement to any holder of Shares such amounts as it is
required to deduct and withhold with respect to the making of such payment under
any provision of state, local or foreign tax law. To the extent that amounts are
so withheld by the Surviving Corporation or Purchaser, as the case may be, such
withheld amounts shall be treated for all purposes of this Agreement as having
been paid to the holder of the Shares in respect of which such deduction and
withholding was made by the Surviving Corporation or Purchaser, as the case may
be.

      2.9 Appraisal RightsTo the extent, if any, that holders of Shares are
entitled to exercise appraisal rights pursuant to the applicable provisions of
the NRS and do exercise such appraisal rights, the Shares of such holder shall
not be converted into the right to receive the Merger Consideration, but the
applicable amount of Merger Consideration shall be held by Purchaser subject to
the provisions of the NRS. If any such holder fails to protect or withdraws or
loses its appraisal rights, such Shares shall then be treated as if they had
been converted as of the Effective Time into a right to receive the Merger
Consideration.

                                       7
<PAGE>

      2.10 Stock Transfer BooksAt the Effective Time, the stock transfer books
of Company shall be closed and there shall be no further registration of
transfers of Shares thereafter on the records of Company. From and after the
Effective Time, the holders of Certificates shall cease to have any rights with
respect to such Shares except as otherwise provided herein or by any laws. On or
after the Effective Time, any Certificates presented to Purchaser for any reason
shall be converted into shares of Merger Shares and any dividends or other
distributions to which the holders thereof are entitled pursuant to Section
2.08.

      2.11 Shares Not Registered; Transfer RestrictionsThe shares of Purchaser
Common Stock issued as Merger Consideration have not been registered and are
subject to restrictions described in Section 11.19 of this Agreement.

3. CERTAIN MATTERS PERTAINING TO EPRESENTATIONS AND WARRANTIES OF COMPANY

      3.1 Warranties by CompanyThe Company warrants to the Purchaser that the
Warranties set out in Schedule 1 and Schedule 2 are true and accurate in all
material respects.

      3.2 Limitation on LiabilityThe Company shall have no liability to the
extent that the circumstances, facts or events giving rise to any claim are set
out or referred to in or annexed to this Agreement, or the Accounts. The Company
shall have no liability to the extent that allowance, provision or reserve was
made in the Accounts in respect of the matters to which such liability relates
or such matter was taken into account in computing the amount of any such
allowance, provision or reserve or such matter was specifically referred to in
the notes to the Accounts.

      3.3 Each Warranty SeparateEach of the Warranties is without prejudice to
any other Warranty.

      3.4 No Responsibility for Certain ChangesThe Company shall be under no
liability in respect of any matters resulting from a change in accounting or in
Taxation policy or practice of the Purchaser including the method of submission
of Taxation returns introduced, or the making of any claim, election, surrender,
disclaimer notice or consent, since or having effect after Closing.

      3.5 No Other Representations or WarrantiesThe Purchaser acknowledges that
it is entering into this Agreement in reliance on no warranty, representation or
undertaking save as specifically set out in this Agreement or in Schedule 1 or
Schedule 2 hereto.

4. REPRESENTATIONS OF PURCHASERThe Purchaser warrants to the Company that:

      4.1 Authorization of Merger SharesPrior to the Closing and the issue of
the Merger Shares, the Purchaser will have authorized the issue of the Merger
Shares.

      4.2 Corporate Existence and Power; Enforceability; No ConflictThe
Purchaser is an corporation duly organized and validly existing and in good
standing under the laws of the United Kingdom and has power and authority and
all material licenses and permits necessary to carry on its business and to own
its assets. The Purchaser has all requisite legal and corporate power, and has
taken all requisite corporate action to execute and deliver this Agreement and
to carry out and perform all of its obligations under this Agreement and will by
the relevant issue date have taken all requisite corporate action necessary to
issue the Merger Shares to be issued on such issue date in accordance with this
Agreement. This Agreement constitutes the legal, valid and binding obligations
of the Purchaser, enforceable in accordance with its terms, except (i) as may be
limited by applicable bankruptcy, insolvency or similar laws relating to or
affecting the enforcement of creditors' rights generally and (ii) as limited by
equitable principles generally. The execution and delivery of this Agreement
does not, and the performance of this Agreement and the compliance with the
provisions hereof, and the issue of the Merger Shares by the Purchaser will not
conflict with, or result in a breach or violation of the terms, conditions or
provisions of, or constitute a default under, or result in the creation or
imposition of any lien pursuant to the terms of, the Certificate Incorporation
or Bylaws of the Purchaser or any indenture, mortgage, lease or other material
agreement or instrument of the Purchaser or so far as it is aware but without
prejudice to any other provision of this Agreement any statute, law, rule or
regulation or any state or federal order, judgment or decree.

                                       8
<PAGE>

      4.3 Issuance of Merger SharesThe Merger Shares when issued in compliance
with the provisions of this Agreement will be validly issued, fully paid and
nonassessable. The issue and delivery of the Merger Shares is not subject to
pre-emptive or any other similar rights of the stockholders of the Purchaser or
any liens of encumbrances.

      4.4 Consents and ApprovalsNo consent, approval, order or authorization of,
or registration, qualification, designation, declaration or filing with any
local or governmental authority inside or outside the United Kingdom on the part
of the Purchaser is required in connection with the consummation of the
transactions contemplated by this Agreement.

5. COVENANTS PRIOR TO CLOSING

      5.1 Access and Cooperation; Due Diligence(a) Company and its Subsidiaries
will afford to the officers, directors, employees, consultants, representatives,
advisors and agents of Purchaser and Newco reasonable access to all of their
respective sites, properties, books and records, subject to mutually acceptable
confidentiality agreements, during the applicable company's customary business
hours upon reasonable notice and without undue disruption of the applicable
company's business and will deliver or make available to Purchaser and Newco
such financial and operating data and other information and documents as to the
business, operations, properties, assets, condition (financial or otherwise),
results of operations and prospects of Company and its Subsidiaries as Purchaser
or Newco may from time to time reasonably request. Company and its Subsidiaries
will cooperate with Purchaser and Newco and their officers, directors,
employees, consultants, representatives, advisors and agents in the preparation
of any documents or other materials which may be required in connection with any
documents or materials required or contemplated by this Agreement.

            (b) Purchaser and Newco will deliver or make available to Company
such information and documents as to the subject matter of Purchaser's and
Newco's representations and warranties as Company may from time to time
reasonably request. Purchaser and Newco will cooperate with Company and its
officers, directors, employees, consultants, representatives, advisors and
agents in the preparation of any documents or other materials which may be
required in connection with any documents or materials required by this
Agreement.

                                       9
<PAGE>

            (c) Purchaser and Newco, on the one hand, and Company and its
Subsidiaries, on the other hand, will treat all information obtained in
connection with the negotiation and performance of this Agreement and the due
diligence investigations conducted with respect thereto as confidential. No
information or knowledge obtained in any investigation pursuant to this Section
or otherwise shall affect or be deemed to modify any representation or warranty
contained in this Agreement or the conditions to the obligations of the parties
to consummate the transactions contemplated hereby.

      5.2 Conduct of Business Pending ClosingFrom the date hereof through and
including the earlier of (x) the Closing Date and (y) the date, if any, upon
which this Agreement is terminated in accordance with Article 9 hereof, Company
and its Subsidiaries will take all reasonable actions to do the following except
as expressly set forth in this Agreement or as heretofore disclosed to Purchaser
or otherwise agreed by Purchaser in writing:

            (a) carry on their respective businesses in the same manner as they
have done prior to the date hereof and not introduce any material new method of
management, operation or accounting;

            (b) maintain their respective properties and facilities, including
those held under leases, in good working order and condition, ordinary wear and
tear excepted;

            (c) perform in all material respects all of their respective
obligations under agreements relating to or affecting its assets, properties,
business or other rights;

            (d) keep in full force and effect present insurance policies or
other comparable insurance coverage;

            (e) use their respective best efforts to maintain and preserve their
respective corporate existences and maintain their respective relationships with
suppliers, customers and others having business relations with them;

            (f) use their respective best efforts to maintain compliance with
all licenses and Laws applicable to each of them and their respective
businesses, properties or assets; and

            (g) maintain present debt and lease instruments and not enter into
new or amended debt or lease instruments without the knowledge and written
consent of Purchaser.

      5.3 Prohibited ActivitiesFrom the date hereof through and including the
earlier of (x) the Closing Date and (y) the date, if any, on which this
Agreement is terminated in accordance with Article 9 hereof, Company and its
Subsidiaries will not do any of the following without the prior written consent
of Purchaser except as expressly set forth in this Agreement or as heretofore
publicly disclosed by Company:

            (a) make any change in the Company Charter Documents;

            (b) issue any options, warrants, calls, rights, subscriptions,
claims of any character, agreements, obligations, convertible or exchangeable
securities, or other commitments (contingent or otherwise) of any kind relating
to its securities;

                                       10
<PAGE>

            (c) declare or pay any dividend, or declare or make any distribution
in respect of its capital stock, or any direct or indirect redemption or
purchase, or other acquisition for value, of any shares of its capital stock;

            (d) make any changes in the compensation payable or to become
payable to any of its officers, directors, shareholders, employees, Affiliates,
consultants or agents or to any other persons providing services;

            (e) make any loans to any of its officers, directors, shareholders,
employees, Affiliates, consultants, representatives, advisors or agents or made
any change in its existing borrowing or lending arrangements for or on behalf of
any such Persons, whether pursuant to any employee benefit plan or otherwise;

            (f) grant, issue, accelerate, pay, accrue or agree to pay or make
any accrual or arrangement for payment of salary, bonus or other payments or
benefits pursuant to, or adopt or amend, any new or existing plan;

            (g) enter into any contract or commitment or incur or agree to incur
any new Liability or make any capital expenditures, except (a) in the ordinary
course of business consistent with past practice and (b) for any other
Liability, in each case of (a) and (b) which shall be fully and completely
discharged on or before Closing and any Liabilities to Purchaser or Newco
arising by virtue of this Agreement;

            (h) sell, assign, lease or otherwise transfer or dispose of any
assets, property or rights except in the ordinary course of business consistent
with past practices;

            (i) purchase or acquire, or agree to purchase or acquire, any
property, rights or assets except in the ordinary course of business consistent
with past practices except as contemplated hereby;

            (j) merge or consolidate or agree to merge or consolidate with or
into any other Person;

            (k) cancel or agree to cancel any indebtedness or other obligation
owing to it, or waive any its rights or claims, provided that it may negotiate
and adjust bills and accounts in the course of good faith disputes with
customers in a manner consistent with past practice;

            (l) amend in a manner adverse to it or terminate any agreement,
license or other right;

            (m) enter into any other transaction outside the ordinary course of
its business other than this Agreement and the implementation hereof; or

            (n) agree to do any of the foregoing.

      5.4 NewcoAs promptly as practicable after the execution and delivery of
this Agreement by Company and Purchaser, Purchaser shall organize Newco as
contemplated by the recitals of this Agreement and shall cause Newco to become a
party to this Agreement by executing a counterpart signature page to this
Agreement and delivering the same to Company.

                                       11
<PAGE>

      5.5 Further AssurancesThe parties hereto agree to execute and deliver, or
cause to be executed and delivered, such further instruments and documents and
take such other action as may be reasonably necessary or convenient to carry out
the transactions contemplated hereby.

      5.6 Listing of Common Stock of Purchaser for TradingThe Purchaser shall
use its best efforts to cause the Purchaser Common Stock to be listed for
trading on a trading market in London, England as promptly as practicable on or
after the Closing,

6. CONDITIONS PRECEDENT TO OBLIGATIONS OF COMPANY

      The obligations of Company with respect to actions to be taken on the
Closing Date are subject to the satisfaction or written waiver by Company on or
prior to the Closing Date of the following conditions:

      6.1 Representations and Warranties; Performance of ObligationsAll
representations and warranties of Purchaser and Newco contained in Section 4
shall be true, complete and correct as of the Closing Date as though such
representations and warranties had been made as of that time, except for such
representations which speak as of a specific date, which shall continue to be
true, complete and correct as of the applicable date; all of the terms,
covenants and conditions of this Agreement to be complied with and performed by
Purchaser and Newco at or before the Closing shall have been duly complied with
and performed; and a certificate to the foregoing effect dated the Closing Date
and signed by the chief executive officer of Purchaser and Newco shall have been
delivered to Company.

      6.2 No LitigationNo action or proceeding before a court or any other
governmental authority shall have been instituted and be continuing or
threatened to restrain or prohibit the transactions contemplated hereby except
as disclosed.

      6.3 Consents and ApprovalsAll necessary consents and approvals of and
filings with any governmental authority relating to the consummation of the
transactions contemplated herein shall have been obtained and made.

      6.4 Secretary's CertificateCompany shall have received a certificate,
dated the Closing Date and signed by the Secretary or an Assistant Secretary of
each of Purchaser and Newco, certifying the truth, completeness and correctness
of attached copies of the Purchaser and Newco Charter Documents and resolutions
of the boards of directors of Purchaser and Newco approving Purchaser's and
Newco's execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the performance of their respective
obligations hereunder.

      6.5 Other Closing ConditionsThe other closing conditions set forth in this
Agreement as conditions to the obligations of Company, if any, shall have been
satisfied.

      6.6 Shareholder ConsentActions by written consent of shareholders of
Company owning a majority of the outstanding shares of Company shall be binding
as the vote of shareholders of Company, and shareholders of Company owning
outstanding shares of Company carrying the right to cast a majority of the votes
which may be cast by all shares of Company in any election of directors shall
have agreed by written consent (the "Company Shareholders Written Consent") to
approve this Agreement and the Merger, such written consent being in form and in
substance satisfactory to Purchaser, and such written consent shall have been
delivered to Purchaser and such written consent shall not have been amended
without Purchaser's prior written consent or rescinded.

                                       12
<PAGE>

7. CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER AND NEWCO

      The obligations of Purchaser and Newco with respect to actions to be taken
on the Closing Date are subject to the satisfaction or written waiver by
Purchaser and Newco on or prior to the Closing Date of all of the following
conditions:

      7.1 Representations and Warranties; Performance of ObligationsAll
representations and warranties of Company contained in Section 3 shall be true,
complete and correct as of the Closing Date as though such representations and
warranties had been made as of that time, except for such representations which
speak as of a specific date, which shall continue to be true, complete and
correct as of the applicable date; all of the terms, covenants and conditions of
this Agreement to be complied with and performed by Company at or before the
Closing shall have been duly complied with and performed; and a certificate to
the foregoing effect dated the Closing Date and signed by the chief executive
officer of Company shall have been delivered to Purchaser.

      7.2 No LitigationNo action or proceeding before a court or any other
governmental authority or body shall have been instituted and be continuing or
threatened to restrain or prohibit the transactions contemplated hereby except
as disclosed.

      7.3 Consents and ApprovalsAll necessary consents and approvals of and
filings with any governmental authority relating to the consummation of the
transactions contemplated herein shall have been obtained and made, and all
necessary consents and approvals of third parties shall have been obtained.

      7.4 No Material Adverse EffectNo event or circumstance shall have occurred
which has had or is reasonably likely to have, individually or in the aggregate,
a Material Adverse Effect on Company or the ability of Company to perform this
Agreement, and Purchaser shall have received on the Closing Date a certificate
signed by Company dated the Closing Date to such effect.

                                       13
<PAGE>

      7.5 Secretary's CertificatePurchaser shall have received a certificate,
dated the Closing Date and signed by the Secretary or an Assistant Secretary of
Company, certifying the truth, completeness and correctness of attached copies
of the Certificate of Incorporation, Bylaws and resolutions of the Board and of
the shareholders of each of Company approving the execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby, and the
performance of their respective obligations hereunder.

      7.6 Other Closing ConditionsThe other closing conditions set forth in this
Agreement as conditions to the obligations of Purchaser or Newco, if any, shall
have been satisfied.

      7.7 Shareholder ConsentActions by written consent of shareholders of
Company owning a majority of the outstanding shares of Company shall be binding
as the vote of shareholders of Company, and shareholders of Company owning
outstanding shares of Company carrying the right to cast a majority of the votes
which may be cast by all shares of Company in any election of directors shall
have agreed by written consent (the "Company Shareholders Written Consent") to
approve this Agreement and the Merger, such written consent being in form and in
substance satisfactory to Purchaser, and such written consent shall have been
delivered to Purchaser and such written consent shall not have been amended
without Purchaser's prior written consent or rescinded.

      7.8 Exemption from RegistrationPurchaser shall be satisfied that the
shares of Purchaser Common Stock to be issued and delivered to shareholders of
Company in the Merger may be offered, issued and delivered to such shareholders
without registration under applicable Laws.

8. SURVIVAL OF REPRESENTATIONS AND WARRANTIES

      8.1 Survival of Representations and WarrantiesThe parties agree that
representations and warranties made by the parties in this agreement, or in any
certificate or other instrument delivered pursuant to this Agreement, shall
expire upon consummation of the Closing.

9. TERMINATION OF AGREEMENT

      9.1 TerminationThis Agreement may be terminated at any time prior to the
Closing Date solely:

            (a) by mutual consent of the Boards of Directors of Purchaser and
Company;

            (b) by any party if the transactions contemplated by this Agreement
to take place at or prior to the Closing shall not have been consummated by
October 31, 2006, or such later date as agreed between the parties, unless the
failure of such transactions to be consummated is due to the willful failure of
the party seeking to terminate this Agreement to materially perform any of its
obligations under this Agreement to the extent required to be performed by it
prior to or on the Closing Date;

            (c) by Company if a material breach or default shall be made by
Purchaser or Newco in the observance or in the due and timely performance of any
of the covenants or agreements contained herein, and the curing of such default
shall not have been made before the Closing Date; or

                                       14
<PAGE>

            (d) by Purchaser or Newco if a material breach or default shall be
made by Company or any of its Subsidiaries or Affiliates in the observance or in
the due and timely performance of any of the covenants or agreements contained
herein, and the curing of such default shall not have been made before the
Closing Date.

      9.2 Liabilities in Event of TerminationThe termination of this Agreement
shall not limit any obligation or Liability of any party based on or arising
from a breach or default by such party with respect to any of its
representations, warranties, covenants or agreements contained in this
Agreement.

10. COVENANTS POST-CLOSING

      10.1 Payment of TaxesAll transfer, documentary, sales, use, registration,
value added and other such taxes and fees (including any penalties and interest)
incurred in connection with this Agreement (including any real property transfer
tax and any similar tax) or the transactions contemplated hereby shall be paid
one-half by Company and one-half by Purchaser or Newco when due, and Company
will, at the expense of Company, file all necessary tax returns and other
documentation with respect to all such taxes and fees, and, if required by
applicable legal requirements, Purchaser will join in the execution of any such
tax returns and other documentation to the extent necessary under applicable
law.

      10.2 Cooperation on Tax MattersFrom and after the Closing, MFG, Purchaser
and Newco shall cooperate fully, as and to the extent reasonably requested by
the other, in connection with the preparation and filing of any Tax Return,
statement, report or form (including without limitation any report required
pursuant to Section 6043 of the Code and all regulations promulgated
thereunder), any audit, litigation or other proceeding with respect to Taxes.
Such cooperation shall include the retention and (upon the other party's
request) the provision of records and information which are reasonably relevant
to any such audit, litigation or other proceeding and making employees available
on a mutually convenient basis to provide additional information and explanation
of any material provided hereunder. MFG, Parent and Newco agree to retain all
books and records with respect to Tax matters pertinent to MPM and RRM relating
to any tax period ending on or prior to the Closing Date, and to abide by all
record retention agreements entered into with any Tax authority.

11. GENERAL

      11.1 CooperationEach of the parties to this Agreement shall, subject to
the terms and provisions hereof, each deliver or cause to be delivered to the
other on the Closing Date, and at such other times and places as shall be
reasonably agreed to, such additional documents and instruments as the other may
reasonably request for the purpose of carrying out the transactions contemplated
by this Agreement. Each of the parties to this Agreement will cooperate and use
its best efforts to have its respective officers, directors and employees
cooperate with the other parties to this Agreement in furnishing information,
evidence, testimony and other assistance in connection with any tax return
filing obligations, actions, proceedings, arrangements or disputes of any nature
with respect to matters pertaining to all periods prior to the Closing Date.

                                       15
<PAGE>

      11.2 Successors and AssignsThis Agreement and the rights of the parties
hereunder may not be assigned, transferred or otherwise disposed of (except by
operation of law or as expressly stated hereunder) and shall be binding upon and
shall inure to the benefit of the parties hereto. This Agreement is not intended
to create any third party beneficiaries.

      11.3 Entire AgreementThis Agreement (including the schedules, exhibits and
annexes attached hereto, if any, and the documents contemplated hereby and
thereby) sets forth the entire understanding of the parties relating to the
subject matter of this Agreement and cancels and supersedes all agreements,
arrangements and understanding relating thereto made prior to or on the date
hereof, written or oral, between the parties to this Agreement.

      11.4 CounterpartsThis Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original but all such counterparts together shall constitute one and the same
instrument.

      11.5 Brokers and AgentsEach party represents and warrants that it employed
no broker or agent in connection with this transaction and agrees to indemnify
the other parties hereto against all loss, cost, damages or expense arising out
of claims, actions, suits, proceedings, demands or assessments for fees or
commission of brokers employed or alleged to have been employed by such
indemnifying party.

      11.6 ExpensesExcept as expressly provided in Section 10.1, whether or not
the transactions herein contemplated shall be consummated, each party to this
Agreement shall pay its own fees, expenses and disbursements incurrened in
connection with the negotiation, preparation, execution and closing of this
Agreement.

      11.7 NoticesAll notices and other communications under this Agreement
shall be in writing and shall be given by hand delivery, facsimile, or
nationally recognized overnight courier, and shall be deemed to have been duly
given 1) if delivered by hand, on the date of such delivery, 2) if delivered by
facsimile, on the date of such delivery, with receipt of appropriate
confirmation, 3) if delivered by nationally recognized overnight courier, on the
business day following dispatch, and 4) if delivered by first class post (or air
mail if oversees) on the 6th business day after posting with all applicable
postage pre-paid, in each case to the respective parties to this Agreement at
their respective addresses indicated in the preamble to this Agreement.

Any party may change such party's address for notices by notice duly given
pursuant hereto.

      11.8 Governing LawThis Agreement shall be governed by and construed and
enforced in accordance with English law applicable to contracts entirely
negotiated, executed and performed within England, without giving effect to the
conflict of law principles thereof.

      11.9 Jurisdiction and Venue(a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself, herself or himself and its,
hers or his property, to the nonexclusive jurisdiction of any English court, and
any appellate court therefrom, in any suit, action or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereunder, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such suit, action or proceeding may be heard and
determined in any such English court. Each of the parties hereto agrees that a
final judgment in any such suit, action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

                                       16
<PAGE>

            (b) Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it or he may legally and effectively do so, any
objection that it or he may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereunder in any English court. Each of the parties
hereto irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such suit, action or proceeding
in any such court.

      11.10 Survival of Representations and WarrantiesThe representations,
warranties, covenants and agreements of the parties made herein and at the time
of the Closing or in writing delivered pursuant to the provisions of this
Agreement shall survive the consummation of the transactions contemplated hereby
and any examination or investigation on behalf of the parties until the
completion of the Closing.

      11.11 Exercise of Rights and RemediesExcept as otherwise provided herein,
no delay of or omission in the exercise of any right, power or remedy accruing
to any party as a result of any breach or default by any other party under this
Agreement shall impair any such right, power or remedy, nor shall it be
construed as a waiver of or acquiescence in any such breach or default, or of
any similar breach or default occurring later; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default
occurring before or after that waiver.

      11.12 TimeTime is of the essence with respect to this Agreement, both as
regards the dates and periods specifically mentioned in this Agreeme nt and as
to any dates and periods which may by agreement in writing between or on behalf
of the parties to this Agreement be substituted for any such dates and/or
periods.

      11.13 Reformation and SeverabilityIn case any provision of this Agreement
shall be held to be invalid, illegal or unenforceable, it shall, to the extent
possible, be modified in such manner as to be valid, legal and enforceable but
so as to most nearly retain the intent of the parties, and if such modification
is not possible, such provision shall be severed from this Agreement, and in
either case the validity, legality and enforceability of the remaining
provisions of this Agreement and the future application of such provision shall
not in any way be affected or impaired thereby.

      11.14 Remedies CumulativeNo right, remedy or election given by any term of
this Agreement shall be deemed exclusive but each shall be cumulative with all
other rights, remedies and elections available at law or in equity.

      11.15 CaptionsThe headings of this Agreement are inserted for convenience
only, shall not constitute a part of this Agreement or be used to construe or
interpret any provision hereof.

                                       17
<PAGE>

      11.16 Representation by CounselEach party to this Agreement represents and
warrants that such party has been represented by counsel in the negotiation,
drafting and execution of this Agreement. Accordingly, no provision of this
Agreement shall be construed against any party on the grounds that party drafted
the provision or caused it to be drafted.

      11.17 Amendments; WaiversThis Agreement may be amended, modified or
canceled and the terms or covenants hereof may be waived, only by a written
instrument executed by the parties, or in the case of a waiver, by the party
waiving compliance. The failure of any party at any time or times to require
performance of any provision hereof shall in no manner affect the right of such
party at a later time to enforce the same. No waiver by any party of the breach
of any term or covenant contained in this Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or construed as,
a further or continuing waiver of any such breach, or a waiver of the breach of
any other term or covenant contained in this Agreement.

      11.18 Public AnnouncementsThe parties hereto agree that no announcement
relating to the transactions contemplated hereby shall be made by any party
hereto or any of their Affiliates or representatives without the prior written
consent and involvement of each other party, except as may be required by any
applicable Law or governmental authority.

      11.19 Transfer Restrictions; Compliance with Securities LawsThe shares of
Purchaser Common Stock to be issued to the Company shareholders pursuant to the
Merger have not been registered under any applicable Laws, and may not be sold,
transferred or otherwise disposed of, except pursuant to an exemption from the
registration requirements under applicable Laws or an effective registration
statement filed with the applicable governmental authority. In addition, the
shares of Purchaser Common Stock to be issued to the Company shareholders
pursuant to the Merger may not be transferred or otherwise disposed of for a
period of one (1) year following the effective date of the listing of the
Purchaser Common Stock by Purchaser for trading on a trading market pursuant to
Section 5.6 of this Agreement without the prior written consent of Purchaser,
which consent, if given at all, shall be given to all shareholders. The
Purchaser has no intention to register the Merger Shares or to establish a
trading market for the Merger Shares in the United States. The Purchaser has
covenanted to use the Purchaser's best efforts to cause the Merger Shares to be
listed for trading on a London trading market as soon as practicable on or after
the Closing. All certificates representing shares of Purchaser Common Stock
issued pursuant to the Merger shall bear a legend reflecting the foregoing.
Purchaser may place stop transfer orders with its transfer agent with respect to
such certificates in accordance with applicable Laws and the foregoing.

      11.20 Restatement and Amendment of Prior AgreementThe parties to this
Agreement acknowledge and agree that this agreement restates, amends and
supersedes in its entirety any prior acquisition agreement and plan of merger
among the parties hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       18
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

GARDANT PHARMACEUTICALS, INC.

/s/ Lee Cole
-----------------------------------
By: Lee Cole
Its: Chairman

                                       19
<PAGE>

SWITCH PHARMA LIMITED

/s/ Timothy Chawner
-----------------------------------
By: Timothy Chawner
Its: Director

                                       20
<PAGE>

GARDANT PHARMACEUTICALS
ACQUISITION CORPORATION

/s/ C. Warden
-----------------------------------
By:
Its: Vice President

<PAGE>

                                   SCHEDULE 1

                     Details of Gardant Pharmaceuticals, Inc

State of Incorporation:         Nevada

Date of incorporation:          March 10th, 2000

Share capital:
         Authorised:            100,000,000 Common Shares at $0.001 par value
                                10,000,000 Preferred Shares at $0.001 par value

         Issued:                81,914,283

Subsidiaries :                  Bioaccelerate, Inc (Delaware)
                                Bioaccelerate Limited (United Kingdom - England
                                        & Wales)
                                Cynat Oncology, Inc (Delaware)
                                Anvira Inc (Delaware)
                                Biocardio Inc (Delaware)
                                CNS Thera, Inc (Delaware)
                                Genar Oncology, Inc (Delaware)
                                Oncbio, Inc (Delaware)
                                Innova Lifestyle, Inc (Delaware)

                                       2
<PAGE>

                                   SCHEDULE 2

                                   Warranties

1.    Corporate Matters

      1.1   The information relating to the Company contained in Schedule 1 is
            true.

      1.2   The Shares constitute the entire issued and allotted share capital
            of the Company.

      1.3   There are no agreements or arrangements in force, other than this
            Agreement, which grant to any person the right to call for the
            issue, allotment or transfer of any share or loan capital of the
            Company.

      1.4   Save for immaterial errors the register of members and other
            statutory books of the Company have been properly kept and contain
            an accurate and complete record of the matters with which they
            should deal; and no notice or allegation, that any of them is
            incorrect or should be rectified, has been received.

2.    Accounting Matters

      2.1   The Accounts have been prepared in accordance with the historical
            cost convention.

      2.2   The Accounts:

            2.1.1 give a true and fair view of the assets, liabilities
                  (including contingent, unquantified or disputed liabilities)
                  and commitments of the Company at the Accounts Date and its
                  profits for the financial period ended on that date; and

            2.1.2 are not affected by any extraordinary, exceptional or
                  non-recurring item.

      2.3   All the accounts, books, ledgers, and other financial records of the
            Company are in its possession and have been maintained.

3.    Taxation Matters

      3.1   All returns, computations and payments which should be, or should
            have been, made by the Company for any taxation purpose have been
            made within the requisite periods and are up-to-date, correct and on
            a proper basis and none of them is, or is likely to be, the subject
            of any dispute with the applicable taxation authorities.

                                       3
<PAGE>

      3.2   The Company will, nor will become, liable to pay, or make
            reimbursement or indemnity in respect of, any taxation (or amounts
            corresponding thereto) in consequence of the failure by any other
            person (not being a group company) to discharge that taxation within
            any specified period or otherwise, where such taxation relates to a
            profit, income or gain, transaction, event, omission or circumstance
            arising, occurring or deemed to arise or occur (whether wholly or
            partly) on or prior to the date of this Agreement.

      3.3   The Company has not incurred or is, or has become, liable to incur
            expenditure which will not be wholly deductible in computing its
            taxable profits except for expenditure on the acquisition of an
            asset to be held otherwise than as stock-in-trade.

      3.4   The execution or completion of this Agreement will not result in any
            profit or gain deemed to accrue to the Company for taxation
            purposes.

      3.5   The Company has not in the three years ending on the date of this
            Agreement carried out, or been engaged in, any transaction or
            arrangement in respect of which there may be substituted for the
            consideration given or received by the Company a different
            consideration for taxation purposes.

4.    Asset Matters

      4.1   The Company owns and has good and marketable title to all assets
            purported to be held by it.

5.    Intellectual Property Rights and Trade Secrets

      5.1   All Intellectual Property rights used or acquired (and not
            subsequently disposed of) by the Company, as the case may be, in
            connection with its business are in full force and effect and are
            vested in and beneficially owned by it.

      5.2   The Company has not (otherwise than in the ordinary and normal
            course of business) disclosed or permitted to be disclosed or
            undertaken or arranged to disclose to any person other than the
            Purchaser any of its know-how, trade secrets, confidential
            information, price lists or lists of customers or suppliers.

      5.3   The Company is not a party (otherwise than in the ordinary and
            normal course of its business) to any secrecy agreement or agreement
            which may restrict the use of disclosure of information.

6.    General Matters

      6.1   So far as the Company are aware, all information given by the
            Company, or the Company' accountants to the Purchaser, or the
            Purchaser's accountants relating to the business, activities,
            affairs, or assets or liabilities of the Company, as the case may
            be, was, when given, and is now accurate and comprehensive in all
            respects.

                                       4
<PAGE>

      6.2   To the best of the Company' knowledge, there are no material facts
            or circumstances, in relation to the assets, business or financial
            condition of the Company, as the case may be, which have not been
            fully and fairly disclosed in writing to the Purchaser and which, if
            disclosed, might reasonably have been expected to affect the
            decision of the Purchaser to enter into this Agreement.

                                       5

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