Document:

<PAGE>

                                                                    EXHIBIT 10.1

                           SALE AND PURCHASE AGREEMENT
                           ---------------------------

THIS AGREEMENT is made the 15th day of January 2007 by and between:

(1)      AUSTON INTERNATIONAL GROUP LTD. (Company Registration No. 199801660M),
         a company incorporated in Singapore with its registered office at 50
         Raffles Place, #29-00, Singapore Land Tower, Singapore 048623 (the
         "PURCHASER"); and

(2)      THE SEVERAL PERSONS NAMED IN SCHEDULE 1 (the "VENDORS").

WHEREAS:

(A)      M2B World Asia Pacific Pte Ltd is a company incorporated in Singapore
         with its registered address at 112 Middle Road, Midland House #01-01
         Singapore 188970 (the "COMPANY"). As at the date of this Agreement, the
         Company has an issued and paid-up share capital of S$43,981,964
         consisting of 42,459,978 ordinary shares.

(B)      As at the date of this Agreement, the Vendors beneficially own the
         entire issued and paid-up capital of the Company in the proportions as
         set out against the Vendors' respective names in Schedule 1.

(C)      The Purchaser has, for the purposes of investing in the Company, agreed
         to purchase the Sale Shares (as defined below) from the Vendors, at the
         Consideration (as defined below) and on the terms and conditions set
         out in this Agreement.

NOW IT IS HEREBY AGREED as follows:

1.       DEFINITION AND INTERPRETATION
         -----------------------------

1.1      DEFINITIONS. As used in this Agreement, the following terms have the
         following meanings:

         "AFFILIATE" means, with respect to any person (the "SPECIFIED PERSON"),
         any person other than the specified person directly or indirectly
         controlling, controlled by or under direct or indirect common control
         with the specified person and, without limiting the generality of the
         foregoing, includes: (a) any officer or director of the specified
         person, (b) any such director's parent, spouse, sibling or child (a
         "RELATIVE"), (c) one or more of such directors, officers, relatives or
         combination thereof (a "GROUP"), and (d) any person controlled by any
         such director, officer, relative or group or in which any such
         director, officer, relative or group beneficially owns or holds 50 per
         cent. or more of any class of share capital or equity or profits
         interest. For the purposes of this definition, the term shall not
         include a person in which the specified person has an interest coupled
         with the right to veto specific matters concerning such person but
         which such specified person does not otherwise control;

         "AMARU" means Amaru Holdings Limited;

         "AUTHORISED PERSONS" means the persons authorised by the Vendors or the
         Purchaser, as the case may be, such as officers, directors and advisers
         to represent them/it to deliver to or to receive any Documents
         (including but not limited to documents stipulated in Clause 4 for
         Completion) on their/its behalf of the Vendors or the Purchaser, as the
         case may be;

         "BUSINESS DAY" means a day (excluding Saturdays and Sundays) on which
         banks are open for normal banking business in Singapore;

         "CODE" means the Singapore Code on Take-overs and Mergers;

<PAGE>

         "COMPLETION" means the completion of the sale and purchase of the Sale
         Shares and the issue and allotment of the Consideration Shares in
         accordance with Clause 2;

         "COMPLETION DATE" means the date of Completion, being 31 December 2007
         or such date as the Purchaser and the Vendors may mutually agree in
         writing;

         "CONSIDERATION" means the consideration for the purchase of the Sale
         Shares pursuant to Clause 2.2;

         "CONSIDERATION SHARES" means 660 million new ordinary shares in the
         capital of the Purchaser;

         "CONTEMPLATED TRANSACTIONS" means the transactions contemplated in this
         Agreement, including but not limited to the transactions stipulated in
         Clause 2;

         "CONTRACT" means any contract, agreement, indenture, note, bond, loan,
         instrument, lease, conditional sale contract, mortgage, licence,
         franchise, commitment or other binding arrangement not in the ordinary
         course of business involving a commitment, obligation or commitment of
         not less than S$1,000,000 (or the equivalent in any other currency) or
         any contract for which specific performance is available as a remedy;

         "CONSIDERATION PRICE" means the consideration for the purchase of the
         Sale Shares pursuant to Clause 2.2;

         "CONTROL" when used with respect to any specified person means the
         possession, directly or indirectly, of power to direct or cause the
         direction of the management and policies of such specified person,
         whether through the ownership of voting shares or by contract or
         otherwise;

         "DISCLOSURE LETTER" means the letter to be dated a date on or before
         the Completion Date from the Vendors to the Purchaser or from the
         Purchaser to Vendors (as the case may be) disclosing:

         (i)      information constituting warranties to the Vendors' Warranties
                  or the Purchaser Warranties (as the case may be); and

         (ii)     details of other matters referred to in this Agreement;

         "DOCUMENTS" means all documents, information, Contracts, instruments,
         certificates, notices, consents, affidavits, letters, telegrams,
         telexes, statements, schedules (including Schedules to this Agreement)
         and any other papers whatsoever;

         "ENCUMBRANCE" means any mortgage, assignment of receivables, debenture,
         Lien, charge, pledge, title retention, right to acquire, security
         interest, options, rights of first refusal and any other encumbrance or
         condition whatsoever;

         "FINANCIAL YEAR END" means 31 March 2006

         "GOVERNMENTAL BODY" means any agency, or political subdivision whether
         federal, state, local or foreign, or any agency or instrumentality of
         any such government or political subdivision or any court or
         arbitrator, whether in Singapore, the United States of America, the
         British Virgin Islands (as the case may be) or elsewhere;

         "GROUP" means the Company and its Subsidiary, "GROUP COMPANIES" means
         all of them and "GROUP Company" means any of them;

         "GROUP BALANCE SHEET" means the consolidated balance sheet of the Group
         as of the Group Balance Sheet Date;

         "GROUP BALANCE SHEET DATE" means 31 December 2005;

         "ISSUE PRICE" means S$0.25 per Consideration Share;

                                       2
<PAGE>

         "KEY EMPLOYEES" shall mean such employees as shall be identified by the
         Purchaser or Amaru (as the case may be) in writing prior to the
         Completion Date;

         "LAW" means any applicable law, statute, code, ordinance, regulation or
         other requirement;

         "LIEN" means, with respect to any property or asset, any mortgage,
         lien, pledge, charge, security interest, encumbrance or other adverse
         claim of any kind in respect of such property or asset;

         "LISTING APPROVAL" means the approval-in-principle of the SGX-ST for,
         amongst other things, the listing and quotation of the Consideration
         Shares on the SGX-ST and the transfer of the Sale Shares;

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on the
         condition (financial or otherwise), business, assets, results or
         prospects of the Group;

         "ORDER" means any applicable order, judgment, injunction, award, decree
         or writ made under any applicable law;

         "PARTY" means a party to this Agreement including any party acceding to
         this Agreement after the date hereof; and "PARTIES" shall have the
         correlative meaning;

         "PERMIT" includes any license, permit, order, approval of or any
         required registration with any Governmental Body;

         "PERSON" means any individual, corporation, partnership, firm, joint
         venture, association, joint-stock company, trust, unincorporated
         organisation, Governmental Body, stock exchange or other entity;

         "PROPERTY" or "PROPERTIES" means real, personal or mixed property,
         tangible or intangible;

         "PROPOSED ACQUISITION" means the proposed acquisition by the Purchaser
         of the Sale Shares from the Vendors pursuant to the terms and
         conditions of this Agreement;

         "PURCHASER BALANCE SHEET" means the balance sheet of the Purchaser as
         of the Financial Year End;

         "PURCHASER SUBSIDIARIES" means Auston Consultants Pte Ltd, Auston
         Professional Learning Pte Ltd, AIMT Pte. Ltd., Auston International
         College Pty Ltd and Auston Open University Corporation;

         "PURCHASER WARRANTIES" means the representations, warranties and
         undertakings on the part of the Purchaser set out in Clause 5.2 and
         Schedule 3;

         "REQUIRED CONSENTS" includes any consent, approval or action or the
         filing or giving of notice to, any Governmental Body or any other
         person in connection with the Contemplated Transactions. For the
         avoidance of any doubt, "Required Consents" shall include, but not
         limited to, the consents and approvals described at Clause 3.1(c);

         "SALE SHARES" means 42,459,978 shares in the issued and paid-up capital
         of the Company, legally and beneficially owned by the Vendors,
         comprising the entire issued and paid-up capital of the Company;

         "SGX-ST" means the Singapore Exchange Securities Trading Limited;

         "SHARES" means the ordinary shares the capital of the Purchaser;

         "SIC" means the Securities Industry Council;

                                       3
<PAGE>

         "SIC APPROVAL" means the approval of and confirmation by the SIC in
         connection with the matters referred to in Clauses 3.1(c)(iv);

         "SUBSIDIARY" means M2B World Holdings Limited;

         "S$" means the lawful currency of Singapore;

         "TRANSFER" means any sale, exchange, gift or other transfer or
         disposition whether voluntary or otherwise;

         "US$" means the lawful currency of the United States of America;

         "VENDORS' WARRANTIES" means the representations, warranties and
         undertakings on the part of the Vendors set out in Clause 5.1 and
         Schedule 2; and

         "WHITEWASH RESOLUTION" means the approval of the Purchaser's
         independent shareholders at a general meeting, as set out in Clause
         3.1(c)(ii).

1.2      INTERPRETATION.

         (a)      References to Clauses and Schedules are, unless otherwise
                  stated, to articles and clauses of, and schedules to, this
                  Agreement.

         (b)      References to any enactment (meaning any statute or statutory
                  provision of Singapore or elsewhere and any subordinate
                  legislation made under any such statute or statutory
                  provision) shall be construed as references to: (i) any
                  enactment which that enactment has directly or indirectly
                  replaced (whether with or without notification), and (ii) that
                  enactment as re-enacted, replaced or modified from time to
                  time, whether before, on or after the date hereof.

1.3      The headings in this Agreement are for convenience only and shall not
         affect the construction or interpretation of this Agreement.

1.4      References to "AGREEMENT" and "THIS AGREEMENT" are references to this
         Share Purchase Agreement, amended in writing from time to time.

1.5      References to "KNOWLEDGE" with respect to a company or other entity,
         means the knowledge of any of the directors or officers of such company
         or other entity, and "KNOWS" has the correlative meaning.

2.       SALE OF THE SALE SHARES
         -----------------------

2.1      SALE OF THE SALE SHARES. Subject to the terms and conditions of this
         Agreement, the Vendors (each as to those of the Sale Shares set out
         against such Vendor's name in Schedule 1) shall sell as legal and
         beneficial owner and the Purchaser, relying on the several
         representations, warranties and undertakings contained in this
         Agreement, shall purchase free from all Encumbrances and together with
         all rights and benefits now and hereafter attaching thereto, all the
         Sale Shares. For the avoidance of doubt, the rights and interests
         comprised in the Sale Shares to be acquired by the Purchaser pursuant
         to these presents shall include all rights and interests and all legal
         and beneficial titles to the Subsidiaries and all assets and properties
         owned directly or indirectly by the Group as at the date hereof.

2.2      CONSIDERATION. Subject to Clause 2.4, the Consideration for the sale
         and purchase of the Sale Shares shall (subject to adjustment as
         provided in this Agreement) be the sum of S$165 million and shall be
         satisfied in full by the allotment and issue by the Purchaser to the
         Vendors of the Consideration Shares, credited as fully paid up, at the
         Issue Price, free from all Encumbrances and together with all rights,
         entitlements and benefits accruing or attaching thereto and such
         Consideration Shares shall rank PARI PASSU in all respects with all the
         other existing issued shares in the share capital of the Purchaser as
         at the Completion Date. Each Vendor shall be entitled to that number of
         Consideration Shares set out against the Vendor's name in column (3) in
         Schedule 1.

                                       4
<PAGE>

2.3      PAYMENT. The Purchaser shall allot and issue the Consideration Shares
         (credited as fully paid up) to the Vendors at Completion in accordance
         with Clause 4.1(b), against the Vendors' compliance with their
         obligations under Clauses 3.1 and 4.1(a). The allotment and issue of
         the Consideration Shares, credited as fully paid up, and in accordance
         with the provisions of this Agreement, shall be in full and final
         satisfaction of the Purchaser's obligations in respect of the payment
         of the Consideration.

2.4      ADJUSTMENTS TO CONSIDERATION. The parties agree that following the due
         diligence exercises to be conducted by the parties as provided in
         Clause 3.1(a) and in the event that the profit warranty under Clause
         5.1.2(b) is not achieved, the Consideration may be adjusted in such
         manner as may be mutually agreed between the parties in good faith. For
         the avoidance of doubt, any adjustment in the Consideration may include
         adjustments to the number and price of the Consideration Shares to be
         issued by the Purchaser to the Vendors.

3.       CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PARTIES TO COMPLETE
         ------------------------------------------------------------------

3.1      CONDITIONS  PRECEDENT.  The  obligation  of the parties to enter into
         and complete the Completion is subject to the fulfillment on or prior
         to the Completion Date of the following conditions:

         (a)      SATISFACTORY DUE DILIGENCE.

                  (i)      The results of such legal, financial and tax due
                           diligence investigations on the Group conducted by
                           the Purchaser and its advisors (including inspections
                           of the respective audited financial accounts
                           including, but not limited to, the income statements
                           of the Company and each of the Subsidiaries, all of
                           which to be delivered to the Purchaser upon the
                           Purchaser's written request to the Company at least
                           three (3) Business Days in advance), being reasonably
                           satisfactory to the Purchaser.

                  (ii)     The results of such legal, financial and tax due
                           diligence investigations to be conducted by Amaru
                           and/or the Company on the Purchaser and the Purchaser
                           Subsidiaries (based primarily on publicly available
                           information to be delivered to Amaru and/or the
                           Company upon the latter's written request to the
                           Purchaser at least three (3) Business Days in
                           advance), being reasonably satisfactory to Amaru
                           and/or the Company.

         (b)      REPRESENTATIONS AND COVENANTS. The Vendors' Warranties and the
                  Purchaser Warranties contained in this Agreement shall be true
                  in all material respects on and as of the Completion Date with
                  the same force and effect as though made on and as of the
                  Completion Date. The Vendors and the Purchaser shall have
                  performed and complied with all their respective covenants and
                  agreements required by this Agreement to be performed or
                  complied with by each of them on, or prior to, the Completion
                  Date.

         (c)      CONSENTS AND APPROVALS. All Required Consents shall have been
                  obtained without restrictions or limitations whatsoever
                  unacceptable to the parties, and be in full force and effect,
                  and the parties shall have been furnished with evidence
                  reasonably satisfactory to the other party of the granting of
                  such Required Consents, in particular, and without limitation:

                  (i)      the approval of the Purchaser's shareholders at a
                           general meeting and its board of directors (as
                           appropriate) in respect of:

                           (aa) the acquisition by the Purchaser of the Sale
                                Shares; and

                           (bb) the issue of the Consideration Shares to the
                                Vendors in consideration therefor;

                                       5
<PAGE>

                  (ii)     the approval of the Purchaser's independent
                           shareholders at a general meeting in respect of the
                           waiver of the rights of the independent shareholders
                           of the Purchaser to receive a mandatory offer from
                           the Vendors (or any of them) and parties acting in
                           concert with them pursuant to Rule 14 of the Code for
                           all the issued and paid-up shares of the Purchaser
                           that they do not own following the issue and
                           allotment of the Consideration Shares ("WHITEWASH
                           RESOLUTION");

                  (iii)    the receipt and non-withdrawal of the Listing
                           Approval, provided always that if the SGX-ST shall
                           impose any conditions on the Purchaser, such
                           conditions shall not be onerous and shall be
                           reasonably acceptable to the parties and, if any such
                           condition is required to be fulfilled before
                           Completion, the fulfilment of such condition before
                           Completion; and

                  (iv)     the receipt and non-withdrawal of the approval of the
                           SIC granted to the Vendors to dispense with the
                           requirements of Rule 14 of the Code to make an offer
                           to the shareholders of the Purchaser arising from the
                           receipt by the Vendors of the Consideration Shares,
                           subject to the conditions set out in the said SIC
                           approval, provided always that if the SIC shall
                           impose any conditions on the Vendors or the
                           Purchaser, such conditions shall not be onerous and
                           shall be reasonably acceptable to the Vendors or the
                           Purchaser (as the case may be) and, if any such
                           condition is required to be fulfilled before
                           Completion, the fulfilment of such condition before
                           Completion;

                  (v)      the approval of shareholders of Amaru Inc., if
                           required under applicable state law under and/or
                           federal securities law and its board of directors in
                           respect of the Contemplated Transactions, in
                           accordance with and pursuant to the relevant and
                           applicable laws and regulations governing and binding
                           upon Amaru Inc.; and

                  (vi)     all other necessary consents and approvals for the
                           Contemplated Transactions, if required and
                           applicable, being granted and not withdrawn or
                           revoked by third parties (including without
                           limitation, any Government Body, stock exchange and
                           other relevant authority in any jurisdiction) and if
                           such consents are obtained subject to any
                           condition(s) and where such condition(s) affect any
                           of the parties, such condition(s) being acceptable to
                           the party concerned and, if such condition(s) are
                           required to be fulfilled before Completion, such
                           condition(s) being fulfilled before Completion;

         (d)      TRANSFER AND/OR ASSIGNMENT OF ALL ASSETS. Subject to the
                  approval of the Purchaser's shareholders at a general meeting
                  (if necessary) and its board of directors, the Purchaser shall
                  transfer and/or assign all the assets (including without
                  limitation, the properties and the intellectual property
                  rights, businesses, rights, obligations, receivables and debts
                  of the Purchaser) to such company or entity as the Purchaser
                  deems fit, within such time as the Parties shall mutually
                  agree such that, save for its current paid-up capital and the
                  Shares, the Purchaser shall have no further business or
                  business activity (including any prospective business and
                  business activity), shall have no subsidiary or associated
                  company, shall have no liabilities (actual or contingent,
                  disclosed or undisclosed, known or unknown) and shall have no
                  rights or obligations (whether contractual or arising in law)
                  whatsoever, save for any residual business;

         (f)      INDEPENDENT VALUATION REPORT. Amaru shall deliver a valuation
                  report by an independent auditor to the Purchaser confirming
                  that the value of the assets of the Company is no less than
                  that of the Consideration Price.

         (g)      PURCHASER REMAINING ON SGX-ST. The Purchaser shall remain
                  listed on SGX-ST from the date of this Agreement until the
                  date of the transfer of the Sale Shares to the Purchaser and
                  the allotment and issue of the Consideration Shares.

                                       6
<PAGE>

         (h)      PRIVATE PLACEMENT. The Purchaser hereby undertakes to use its
                  best endeavours to procure a private placement by way of the
                  issue and allotment of 200 million new Shares at S$0.27 per
                  Share, (which issue price represents a discount of 9% from the
                  volume weighted average price of Auston shares on 12 January
                  2007, the last trading day immediately prior to the date of
                  this Agreement , subject to such approvals as may be necessary
                  including the approvals of the Purchaser's shareholders and
                  the SGX-ST.. The net proceeds of the aforesaid placement shall
                  be utilised towards the future costs of development and
                  expansion of the business of the Company and working capital
                  for the Group.

         (i)      COMPLETION BY THE PARTIES. The parties shall on Completion
                  Date execute such further documents, agreements, deeds, and do
                  such further acts and things, as may be required so that full
                  effect shall be given to the provisions of this Agreement and
                  the Contemplated Transactions.

3.2      The parties shall use their respective best endeavours to procure the
         fulfilment of such conditions, and in particular shall furnish such
         information, supply such documents, pay such fees and do all such acts
         and things (including making any amendments to the Agreement as may be
         required by the SIC) as may be required to enable such conditions to be
         fulfilled.

3.3      For the purposes of Clauses 3.1(c), the parties shall promptly furnish
         the SGX-ST and the SIC with all information required by the SGX-ST
         and/or the SIC (as the case may be) for the purpose of their
         consideration and evaluation of the parties' application for the
         Listing Approval and/or the non-withdrawal of the SIC Approval (as the
         case may be).

3.4      If any of the conditions in Clause 3.1 above is not fulfilled and the
         fulfilment of such conditions is not waived by the relevant party by a
         mutually agreed date, this Agreement shall IPSO FACTO cease and
         determine and save in respect of any breach of Clause 3.2, Clause 3.3
         and/or Clause 9.2, none of the parties shall have any claim against the
         other for costs, damages, compensation or otherwise.

4.       COMPLETION
         ----------

4.1      COMPLETION. The Completion shall take place on the Completion Date, at
         such place and time as Amaru and the Purchaser may agree, where all of
         the events described below shall occur:

         (a)      VENDORS DELIVERIES. At Completion, the Vendors shall deliver
                  to the Purchaser the following:

                  (i)      evidence in form and substance satisfactory to the
                           Purchaser of the satisfaction of the relevant
                           conditions specified in Clause 3.1;

                  (ii)     a certificate signed by the Vendors, confirming that
                           all the Vendors' Warranties have been complied with
                           and would be correct in all material respects as if
                           repeated on the Completion Date by reference to the
                           circumstances then existing and that all the
                           representations, Vendors' Warranties and undertakings
                           on the part of the Vendors have been fully performed
                           and observed by the Vendors;

                  (iii)    duly executed transfers of the Sale Shares in favour
                           of the Purchaser accompanied by certificates
                           reflecting the Purchaser as owner of the Sale Shares;

                  (iv)     such documents as may be required for submission to
                           any Governmental Body and such other relevant
                           competent authority to give full effect to the
                           Contemplated Transactions;

                  (v)      copies of the resolutions of the directors and the
                           shareholders of the Company, duly certified as true
                           copies by a director, under which the directors and
                           shareholders (as the case may be) of the Company have
                           approved (in such terms as the Purchaser may
                           approve):

                           (aa)  the transfer of the Sale Shares to the
                                 Purchaser; and

                                       7
<PAGE>

                           (bb)  the issue of such certificate reflecting the
                                 Purchaser as owner of the Sale Shares; and

                   (vi)    such waivers or consents as may be necessary to
                           enable the Purchaser to be registered as holder of
                           any and all of the Sale Shares and to give full
                           effect to the Contemplated Transactions.

         (b)      PURCHASER DELIVERIES. At Completion, the Purchaser shall
                  deliver to the Vendors the following:

                   (i)     evidence in form and substance satisfactory to the
                           Vendors of the satisfaction of the relevant
                           conditions specified in Clause 3.1;

                   (ii)    a certificate signed by a director of the Purchaser
                           confirming that all the Purchaser Warranties set out
                           in Schedule 3, where applicable, have been complied
                           with and would be correct in all material respects as
                           if repeated on the Completion Date by reference to
                           the circumstances then existing;

                   (iii)   executed share certificates in respect of the
                           Consideration Shares to be allotted and issued to the
                           Vendors pursuant to Clause 2.3;

                   (iv)    copies of the resolutions of the directors and the
                           shareholders of the Purchaser, duly certified as true
                           copies by a director, under which the directors and
                           the shareholders (as the case may be) of the
                           Purchaser have approved (in such terms as the Vendors
                           may approve):

                            (aa)    for the Proposed Acquisition;;

                            (bb)    the issue and allotment of the Consideration
                                    Shares to CDP for the account of the
                                    Vendors;

                            (cc)    the issue of share certificates in respect
                                    of the Consideration Shares to be allotted
                                    and issued to CDP for the account of the
                                    Vendors);

                            (dd)    the issue of share certificates in respect
                                    of the Consideration Shares to be allotted
                                    and issued the Vendors;

                            (ee)    the written resignations of all existing
                                    directors of the Purchaser as directors to
                                    take effect on the Completion Date, with an
                                    acknowledgment signed by each of them that
                                    they have no claim against the Purchaser in
                                    respect of breach of contract, compensation
                                    for loss of office, redundancy or unfair
                                    dismissal or any other ground whatsoever;
                                    and

                            (ff)    the appointments of such persons, as may be
                                    designated by Amaru in writing to the
                                    Purchaser prior to the Completion Date, as
                                    directors of the Purchaser; and

                  (v) a copy of the Listing Approval.

         For the purpose of this Agreement, each party shall be deemed to have
         complied with its respective obligations pursuant thereto upon due
         receipt by the Authorised Persons of the Vendors or the Purchaser, as
         the case may be, of the relevant documents.

4.2      BREACH OF OBLIGATIONS. If any of the Vendors or the Purchaser breaches
         its obligations under this Clause 4, the party not in breach shall be
         entitled, in addition to and without prejudice to all other rights and
         remedies available to it, including the right to claim damages, to:

         (a)      elect to terminate this Agreement;

                                       8
<PAGE>

         (b)      effect Completion so far as practicable having regard to the
                  defaults which have occurred and subject to any terms and
                  conditions which the parties may agree in writing; or

         (c)      fix a new date for Completion (not being 30 days after the
                  Completion Date) in which case the provisions of this Clause 4
                  shall apply to Completion as so deferred.

4.3      ACCRUED RIGHTS. If any of the Vendors or the Purchaser terminates this
         Agreement pursuant to Clause 4.2(a), each party's further rights and
         obligations shall cease immediately upon termination except in respect
         of Clauses 9.1 to 9.16 but termination shall not affect a party's
         accrued rights and obligations as at the date of termination.

5.       WARRANTIES
         ----------

5.1.1    VENDORS' WARRANTIES. Each of the Vendors represents and warrants to the
         Purchaser, subject to the Disclosure Letter:

         (a)      it is and will on Completion be legally and beneficially
                  entitled to or is otherwise able to procure the transfer of
                  those Sale Shares set out against its name in Schedule 1 to
                  the Purchaser;

         (b)      those Sale Shares set out against its name in Schedule 1 are
                  and will on Completion be free from any Encumbrances;

         (c)      it has the full legal right and power to execute and deliver
                  this Agreement and to perform fully its respective obligations
                  under it and has taken all action necessary to authorise such
                  execution and delivery and the performance of such
                  obligations;

         (d)      this Agreement constitutes legal, valid and binding
                  obligations of each Vendor enforceable in accordance with its
                  terms;

         (e)      the execution, delivery and performance of this Agreement by
                  the Vendors and the consummation of any of the Contemplated
                  Transactions will not:

                  (i)      violate any provision of the Memorandum and Articles
                           of Association (or other constitutional documents) of
                           each of the Vendors;

                  (ii)     require the approval or consent of any Governmental
                           Body or the approval or consent of any other person;
                           and

                  (iii)    conflict with or result in any breach or violation of
                           any of the terms and conditions of, or constitute (or
                           with notice or lapse of time or both constitute) a
                           default under, any applicable Law or Order or any
                           Contract to which any of the Vendors is a party or by
                           or to which any of the Vendors is bound or subject;
                           and

         (f)      as at the Completion Date, the Vendors' Warranties as set out
                  in Schedule 2 subject only to:-

                  (i)      any matter which is fairly disclosed in the
                           Disclosure Letter and any matter expressly provided
                           for under the terms of this Agreement; and

                  (ii)     any matter or thing hereafter done or omitted to be
                           done pursuant to this Agreement or otherwise at the
                           request in writing or with the approval in writing of
                           the Purchaser.

                                       9
<PAGE>

5.1.2    PROFIT WARRANTY.

         (a)      Amaru further warrants to the Purchaser that the audited
                  consolidated profit before tax (the "ADJUSTED PBT") of the
                  Company for the two financial years immediately following the
                  Completion Date (the "WARRRANTY PERIOD") shall not be less
                  than a cumulative aggregate of US$20 million (the "GUARANTEED
                  PROFIT"). In the event that the Adjusted PBT for the Warranty
                  Period is less than the aforesaid amount of Guaranteed Profit,
                  Amaru shall be liable to pay the Purchaser's independent
                  shareholders as at the date of the general meeting referred to
                  in Clause 3.1(c)(i) the difference between the Guaranteed
                  Profit and the aggregate Adjusted PBT for the Warranty Period
                  in cash.

         (b)      Amaru also warrants to the Purchaser that the profit before
                  tax (on a proforma basis) of the Company for the financial
                  year end 2006 shall not be less than US$2.5 million.

5.1.3    INTELLECTUAL PROPERTY RIGHTS WARRANTY. Subject to the Disclosure
         Letter, Amaru further warrants that all its intellectual property
         rights owned by the Group comprise all the intellectual property rights
         necessary to enable the Group to carry on its business fully and
         effectively in the ordinary course as carried on up to the present time
         and no such assets are used wholly or partly for any purpose other than
         its business.

5.2      PURCHASER WARRANTIES. The Purchaser represents and warrants to the
         Vendors:

         (a)      it has the full legal right and power to execute and deliver
                  this Agreement and to perform fully its respective obligations
                  under it and has taken all action necessary to authorise such
                  execution and delivery and the performance of such
                  obligations;

         (b)      this Agreement constitutes legal, valid and binding
                  obligations of the Purchaser enforceable in accordance with
                  its terms;

         (c)      the execution, delivery and performance of this Agreement by
                  the Purchaser and the consummation of any of the Contemplated
                  Transactions will not:

                  (i)      violate any provision of the Memorandum and Articles
                           of Association (or other constitutional documents) of
                           each of the Vendors;

                  (ii)     require the approval or consent of any Governmental
                           Body or the approval or consent of any other person;
                           and

                  (iii)    conflict with or result in any breach or violation of
                           any of the terms and conditions of, or constitute (or
                           with notice or lapse of time or both constitute) a
                           default under, any applicable Law or Order or any
                           Contract to which any of the Vendors is a party or by
                           or to which any of the Vendors is bound or subject;
                           and

         (d)      as at the Completion Date, the Purchaser Warranties as set out
                  in Schedule 3 subject only to:

                  (a)      any matter which is fairly disclosed in the
                           Disclosure Letter and any matter expressly provided
                           for under the terms of this Agreement; and

                  (b)      any matter or thing hereafter done or omitted to be
                           done pursuant to this Agreement or otherwise at the
                           request in writing or with the approval in writing of
                           the Purchaser.

         (e)      the Consideration Shares will on Completion rank pari passu
                  with the existing shares of the Purchaser and be free from any
                  and all Encumbrances.

6.       UNDERTAKINGS AND OTHERS
         -----------------------

         VENDORS' UNDERTAKINGS
         ---------------------

                                       10
<PAGE>

6.1      Each of the Vendors undertakes that from the date of this Agreement and
         until Completion it shall (except where otherwise agreed in writing by
         the Purchaser, such agreement and consent not to be unreasonably
         withheld):

         (a)      ensure that there shall not be any amendment to the memorandum
                  of association or the articles of association of the Company;

         (b)      cause the business of the Group to be conducted only in the
                  ordinary and usual course or in accordance to its business
                  plans and shall not make (or agree to make) any payment other
                  than (i) routine payments in the ordinary and usual course of
                  trading and/or (ii) payments in fulfilment of any legal
                  obligation binding upon the Group prior to the date of this
                  Agreement;

         (c)      ensure that the Group shall not grant or create any interest
                  in its, or concerning its, share capital or assets in favour
                  of any person or entity, other than in the ordinary course of
                  business;

         (d)      procure that each Group Company shall promptly give to the
                  Purchaser, its agents, representatives and professional
                  advisers at their written request at least three (3) Business
                  Days in advance, whatever facilities and information relating
                  to the relevant Group Company and its assets, liabilities,
                  contracts and affairs, and documents of title and other
                  evidence of ownership of its assets, that the Purchaser may
                  reasonably require in connection with the Purchaser's due
                  diligence exercise;

         (e)      not do, allow or procure any act or omission which would or
                  would likely result in the passing of a resolution for the
                  winding up of each Group Company or the appointment of a
                  liquidator, receiver and/or manager, judicial manager or any
                  other similar officer of each Group Company or over any part
                  of the assets or business of each Group Company; and

         (f)      not do, allow or procure any act or omission which would or
                  would likely result in the sale, transfer or disposal of the
                  whole or a substantial part of the Group's undertaking, assets
                  or property or purchase, sale, transfer, disposal, lease or
                  licence of any real property or any interest therein other
                  than in the usual course of business.

6.2      Amaru further undertakes to the Purchaser to indemnify and keep the
         Purchaser fully indemnified against any damages, losses, costs
         (including legal costs on an indemnity basis) and expenses which the
         Purchaser may suffer or incur in connection with any breach of any
         warranty in Schedule 2 relating to any taxation matters.

6.3      In the event that any obligation should be held to be invalid as an
         unreasonable restraint of trade or for any other reason whatsoever but
         would have been held valid if part of the wording thereof is reduced or
         the range of activities or the duration of such obligation of area
         dealt with thereby is reduced in scope, such obligations shall apply
         with such modifications as may be necessary to make them valid and
         effective.

6.4       The Vendors further undertake not to sell, realise, transfer or
          otherwise dispose of 100% of the Consideration Shares for a period of
          six months immediately after the listing and quotation of the Shares
          on the SGX-ST, and 50% of the Consideration Shares for a period of six
          months thereafter (the "MORATORIUM") and the Vendors further undertake
          that they shall abide by such other conditions as may be imposed by
          the SGX-ST for the Proposed Acquisition, provided that such conditions
          are not onerous and are reasonably acceptable to the Vendors. For the
          avoidance of doubt, the Moratorium shall apply to any disposal
          including any distribution in specie or capital reduction exercise
          involving the Consideration Shares.

6.5      The Vendors further undertake to and covenant with the Purchaser that
         they shall use best endeavours to procure that:

                                       11
<PAGE>

         (i)      the substantial shareholders of Amaru Inc. and the Company
                  (being shareholders who each have interest in not less than 5%
                  of the total votes attached to all the shares in the Company)
                  shall vote, INTER ALIA, in favour of the following resolutions
                  at an extraordinary general meeting to be convened or via a
                  circular resolution:

                  (a)   for the Proposed Acquisition; and

                  (b)   for the sale and transfer of the Sales Shares to the
                        Purchaser.

6.6       Amaru undertakes to and covenants with the Purchaser that it will not,
          for the three (3) financial years immediately following the Completion
          Date, compete with the Group in Asia Pacific excluding Australia.

6.7      Each and every obligation under this Clause shall be treated as a
         separate and distinct obligation and shall be severally enforceable as
         such and in the event of any obligation or obligations being or
         becoming unenforceable the same shall be deleted from this Clause and
         any such deletion shall not affect the enforceability of any other part
         of this Clause as remain not so deleted.

         PURCHASER'S UNDERTAKINGS
         ------------------------

6.8      The Purchaser undertakes to the Vendors that from the date of this
         Agreement and until Completion it shall (except where otherwise agreed
         in writing by the Vendors):

         (a)      not undertake any bonus issue, stock split or do any thing to
                  its share capital or capital reserve or allot any new Shares,
                  or marketable securities or grant any option over Shares
                  (other than employee share options in accordance with its
                  usual practice) or marketable securities or enter into any
                  other agreement or undertaking to do the same (otherwise than
                  in accordance with or in furtherance of this Agreement);

         (b)      not (whether in the ordinary course of business or otherwise)
                  acquire, or agree to acquire, any asset which may have a
                  material effect upon the nature or scope of its business;

         (c)      dispose of, or agree to dispose of, all its existing
                  businesses prior to or on Completion of the Proposed
                  Acquisition, other than the ordinary course of business
                  pertaining to current business;

         (d)      provide for appropriate arrangements for the termination of
                  employment of all the existing employees of the Purchaser on
                  or before the Completion Date, unless otherwise agreed with
                  the Vendor or the Company;

         (e)      procure that each of the Purchaser and/or the Purchaser
                  Subsidiaries shall promptly give to the Company, its agents,
                  representatives and professional advisers at their written
                  request at least three (3) Business Days in advance, whatever
                  facilities and information relating to the Purchaser and the
                  relevant Purchaser Subsidiaries and its assets, liabilities,
                  contracts and affairs, and documents of title and other
                  evidence of ownership of its assets, that the Company may
                  reasonably require in connection with the Company's due
                  diligence exercise; and

         (f)      not do, allow or procure any act or omission which would or
                  would likely result in the passing of a resolution for the
                  winding up of each of the Purchaser and/or the Purchaser
                  Subsidiaries or the appointment of a liquidator, receiver
                  and/or manager, judicial manager or any other similar officer
                  of each of the Purchaser and/or the Purchaser Subsidiaries
                  over any part of the assets or business of each of the
                  Purchaser and/or the relevant Purchaser Subsidiaries.

                                       12
<PAGE>

6.9       The Purchaser further undertakes to and covenants with the Vendors
          that it shall use best endeavours to procure that the substantial
          shareholders of the Purchaser (being shareholders who each have
          interest in not less than 5% of the total votes attached to all the
          shares in the Purchaser) shall vote, INTER ALIA, in favour of the
          following resolutions at an extraordinary general meeting to be
          convened:

         (i)      for the Proposed Acquisition;

         (ii)     for the allotment and issuance of the Consideration Shares to
                  the Vendors; and

         (iii)    for the Whitewash Resolution.

6.10     Pending Completion, the Purchaser shall consult fully with the Vendors
         in relation to any matters that may have a material effect upon the
         Purchaser's group.

6.11     The Purchaser further undertakes to the Vendors to indemnify and keep
         each of the Vendors fully indemnified against any damages, losses,
         costs (including legal costs on an indemnity basis) and expenses which
         the Vendors may suffer or incur in connection with any breach of any
         warranty in Schedule 3 relating to any taxation matters.

6.12     In the event that any obligation should be held to be invalid as an
         unreasonable restraint of trade or for any other reason whatsoever but
         would have been held valid if part of the wording thereof is reduced or
         the range of activities or the duration of such obligation of area
         dealt with thereby is reduced in scope, such obligations shall apply
         with such modifications as may be necessary to make them valid and
         effective.

6.13     Each and every obligation under this Clause shall be treated as a
         separate and distinct obligation and shall be severally enforceable as
         such and in the event of any obligation or obligations being or
         becoming unenforceable the same shall be deleted from this Clause and
         any such deletion shall not affect the enforceability of any other part
         of this Clause as remain not so deleted.

         PUBLIC FLOAT REQUIREMENTS
         -------------------------

6.14     The Vendors shall use their best endeavours to ensure that.the public
         float requirements pursuant to the listing rules of the SGX-ST are met
         at all times post the Completion. This Clause shall continue to have
         full force and effect notwithstanding Completion.

7.       GENERAL INDEMNIFICATION
         -----------------------

7.1      OBLIGATION OF THE VENDORS TO INDEMNIFY. The Vendors agree to indemnify,
         defend and hold harmless the Purchaser (and its directors, officers and
         employees) from and against all losses, liabilities, damages,
         deficiencies, demands, claims, actions, judgments or causes of action,
         assessments, costs or expenses (including, without limitation,
         interest, penalties and reasonable attorneys fees and disbursements)
         based upon, arising out of or otherwise in respect of any inaccuracy in
         or any breach of any representation, warranty, covenant or agreement of
         the Vendors contained in this Agreement or in any documents delivered
         pursuant to this Agreement.

7.2      OBLIGATION OF THE PURCHASER TO INDEMNIFY. The Purchaser agrees to
         indemnify, defend and hold harmless the Vendors (and its directors,
         officers and employees) from and against all losses, liabilities,
         damages, deficiencies, demands, claims, actions, judgments or causes of
         action, assessments, costs or expenses (including, without limitation,
         interest, penalties and reasonable attorneys fees and disbursements)
         based upon, arising out of or otherwise in respect of any inaccuracy in
         or any breach of any representation, warranty, covenant or agreement of
         the Purchaser contained in this Agreement or in any documents delivered
         pursuant to this Agreement.

8.       TERMINATION OF AGREEMENT
         ------------------------

8.1      TERMINATION. This Agreement may be terminated by the following party by
         written notice to the other parties prior to the Completion as follows:

                                       13
<PAGE>

         (a)      at the election of the Vendors or the Purchaser in accordance
                  with Clauses 4.2(a) and 4.3;

         (b)      at the election of the Purchaser, if any of the Vendors has
                  breached any material representation, warranty, covenant or
                  agreement contained in this Agreement, which breach cannot be
                  or is not cured by the Completion Date;

         (c)      at the election of the Vendors, if the Purchaser has breached
                  any material representation, warranty, covenant or agreement
                  contained in this Agreement, which breach cannot be or is not
                  cured by the Completion Date; or

         (d)      at any time on or prior to the Completion Date, by mutual
                  written consent of the Vendors and the Purchaser.

         If this Agreement so terminates, it shall become null and void and have
         no further force or effect, except as provided in Clause 8.2.

8.2      SURVIVAL AFTER TERMINATION. If this Agreement is terminated in
         accordance with Clause 8.1, this Agreement shall become void and of no
         further force and effect, except for Clauses 9.1 to 9.16 PROVIDED the
         termination of this Agreement shall not in any way or manner affect or
         prejudice the rights or liabilities by any parties accrued or incurred
         prior to the termination of this Agreement.

9.       MISCELLANEOUS
         -------------

9.1      CHANGE OF NAME. Amaru reserves the right to change the name of the
         Purchaser to such other name as it and the Accounting and Corporate
         Regulatory Authority of Singapore may approve.

9.2      PUBLIC ANNOUNCEMENTS. No press releases or other public announcements
         concerning this Agreement or any Contemplated Transactions shall be
         made unless planned, coordinated and released jointly by all parties.

9.3      CONFIDENTIALITY. Each party agrees to hold this Agreement and all
         confidential information obtained in connection with the Agreement or
         any Contemplated Transaction confidential and not to disclose the
         Agreement, any Contemplated Transactions or such information to third
         parties without the prior written consent of the other parties hereto.
         The foregoing obligation shall not apply to the extent: (a) the
         information being disclosed is or has become publicly known or known to
         third parties at the time of disclosure through no fault of the
         disclosing party; (b) the information was generated independently by
         the third party before disclosure by the disclosing party; (c)
         disclosure is or becomes required by applicable Law or legal process,
         including pursuant to court proceedings, court order, applicable stock
         exchange or governmental regulation, or otherwise; (d) such disclosure
         is to an Affiliate or adviser of the disclosing party who has agreed to
         maintain the confidentiality of such information; or (e) pursuant to
         the rules of the SGX-ST or any other Governmental Body.

9.4      OBLIGATIONS SEVERAL. Where any obligation, representation, warranty or
         undertaking in this Agreement is expressed to be made, undertaken or
         given by two or more of the Vendors, they shall be jointly and
         severally responsible in respect of it.

9.5      AUTHORITY BINDING. The Vendors agree that for the purposes of
         implementing this Agreement (including, without limitation, the
         receiving of any Notice, the execution and delivery of any documents
         arising from and in connection with this Agreement and the giving of
         any consents and/or waivers), Amaru shall be irrevocable authorised to
         act on behalf of any of the Vendors and such Vendors shall be bound
         accordingly.

                                       14
<PAGE>

9.6      CONSENT TO SPECIFIC PERFORMANCE. The parties hereto agree that it might
         be impossible to measure in money the damages which would accrue to a
         party by reason of failure to perform certain obligation hereunder. Any
         such party shall, therefore, be entitled to seek injunctive relief,
         including specific performance, to enforce such obligation and if any
         action should be brought in equity to enforce any of the provisions of
         this Agreement, none of the parties hereto shall raise the defence that
         there is an adequate remedy at law.

9.7      NOTICES. Any notice or other communication required or permitted
         hereunder shall be in writing and shall be delivered personally, sent
         by facsimile transmission or sent by certified, registered or express
         mail, postage prepaid to the following addresses or facsimile numbers:

         If to the Purchaser, to:
                                            50 Raffles Place,
                                            #29-00, Singapore Land Tower,
                                            Singapore 048623

                                            Attention:        [        ]
                                            Facsimile:        [        ]

         If to any of the Vendors, to:      AMARU HOLDINGS LIMITED
                                            112 Middle Road
                                            Midland House #08-01
                                            Singapore 188970

                                            Attention:        Ms Ho Bee Leng
                                            Facsimile:        65-6336 9281

                                            CHUA LEONG HIN
                                            116 Jurong East Street 13 #17-390
                                            Singapore 600116

                                            CHEW HUA SENG
                                            32 Nassim Road, Singapore 258409

                                            GAY CHEE CHEONG
                                            16 Garlick Avenue, Singapore 279647

                                            GABRIEL YAP CHONG HIN
                                            8A Lengkong Tiga Singapore 417412

         or to such other address or facsimile number as the parties may
         designate by written notice. Any such communication shall be deemed
         duly given, in the case of personal delivery and courier service, upon
         delivery and receipt of written acknowledgement thereof, in the case of
         registered mail, 14 days after posting and in the case of facsimile
         transmission, upon transmission and receipt of a satisfactory
         transmission transcript, provided that if such day is not a Business
         Day or such time not a normal business hour then delivery shall be
         deemed to have occurred on the following Business Day.

9.8      EXPENSES.

         (i)      Subject to Clause 9.8(iii), each party to this Agreement shall
                  pay its own costs and expenses incurred in relation to or in
                  connection with the negotiation, preparation and execution of
                  this Agreement and the sale and purchase hereby agreed to be
                  made, provided that if any party shall lawfully exercise any
                  right hereby conferred to rescind this Agreement before
                  Completion the other party shall indemnify the first-mentioned
                  party against expenses and costs (including legal, accounting
                  and other costs and expenses) incurred in the preparation of
                  this Agreement.

         (ii)     The Purchaser shall bear all stamp duties payable in
                  connection with the transfer of the Sale Shares from the
                  Vendors to the Purchaser.

         (iii)    In the event of non-Completion of the Proposed Acquisition as
                  a direct consequence of the default or omission of any party
                  or a failure by any party to fulfil the relevant conditions
                  precedent under Clause 3.1 of this Agreement (not otherwise
                  waived by the other party) by the Completion Date, the

                                       15
<PAGE>

                  defaulting party shall bear all costs and expenses (including
                  but not limited to all professionals' fees) incurred in
                  relation to or in connection with the negotiation, preparation
                  and execution of this Agreement and the sale and purchase
                  agreement hereby agreed to be made PROVIDED ALWAYS THAT if the
                  non-Completion of the Proposed Acquisition is a consequence of
                  factors and reasons which are beyond the control of either
                  party, the Purchaser shall bear half the aforesaid costs and
                  expenses and the Vendors collectively the other half.

9.9      ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
         between the parties with respect to the transactions contemplated in
         this Agreement and supersedes all prior oral and written agreements,
         memoranda, understandings and undertakings between the parties relating
         to the subject matter of this Agreement.

9.10     WAIVERS AND AMENDMENTS; NON-CONTRACTUAL REMEDIES; PRESERVATION OF
         REMEDIES. This Agreement may be amended, superseded, cancelled, renewed
         or extended, and the terms hereof may be waived, without requiring the
         consent from any third party not named in this Agreement and only by a
         written instrument signed by the Purchaser, the Vendors or, in the case
         of a waiver, by the party waiving compliance. No delay on the part of
         any party in exercising any right, power or privilege hereunder shall
         operate as a waiver thereof, nor shall any waiver on the part of any
         party of any such right, power or privilege, nor any single or partial
         exercise of any such right, power or privilege, preclude any further
         exercise thereof of the exercise of any other such right, power or
         privilege. The rights and remedies herein provided are cumulative and
         are not exclusive of any rights or remedies that any party may
         otherwise have at law or in equity. The rights and remedies of any
         party based upon, arising out of or otherwise in respect of any
         inaccuracy in or breach of any representation, warranty, covenant or
         agreement contained in this Agreement or any documents delivered
         pursuant to this Agreement shall in no way be limited by the fact that
         the act, omission, occurrence or other state of facts upon which any
         claim of any such inaccuracy or breach is based may also be the subject
         matter of any other representation, warranty, covenant or agreement
         contained in this Agreement or any documents delivered pursuant to this
         Agreement (or in any other agreement between the parties) as to which
         there is no inaccuracy or breach.

9.11     NO THIRD PARTY BENEFIT. The Contracts (Rights of Third Parties) Act
         (Chapter 53B) shall not apply to this Agreement. Nothing in this
         Agreement shall be deemed to confer any right to enforce any term of
         this Agreement on anyone not a party to this Agreement. This Agreement
         shall not be construed in any respect to be a contract or agreement in
         whole or in part for the benefit of or binding upon anyone not a party
         to this Agreement.

9.12     SUCCESSORS AND ASSIGNS. No party shall have the right to assign all or
         any part of its interest in this Agreement without the prior written
         consent of the other parties. This Agreement shall be binding upon and
         shall inure to the benefit of the parties and their successors and
         permitted assigns.

9.13     COUNTERPARTS. This 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 shall together
         constitute one and the same instrument. Each counterpart may consist of
         a number of copies hereof each signed by less than all, but together
         signed by all of the parties hereto.

9.14     SCHEDULES AND ANNEXES. The Schedules and Annexes shall form part of
         this Agreement as if fully set out herein.

9.15     SEVERABILITY OF PROVISIONS. If any provision or any portion of any
         provision of this Agreement, or the application of any such provision
         or any portion thereof to any person or circumstance, shall be held
         invalid or unenforceable, the remaining portion of such provision and
         the remaining provisions of this Agreement, and the application of such
         provision of portion of such provision as is held invalid or
         unenforceable to persons or circumstances other than those as to which
         it is held invalid or unenforceable, shall not be affected thereby.

9.16     GOVERNING LAW AND ARBITRATION.

                                       16
<PAGE>

         (a)      This Agreement is governed by, and shall be construed in
                  accordance with, the laws of the Republic of Singapore. Any
                  and all disputes, controversies and conflicts between the
                  parties in connection with this Agreement shall, so far as is
                  possible, be settled amicably between the parties. Prior to
                  commencing any dispute resolution pursuant to this Clause
                  9.15, the parties agree to act in good faith and attempt to
                  resolve the same.

         (b)      In the event that an amicable settlement cannot be reached
                  within thirty (30) days after the parties commence relevant
                  settlement discussion, any and all disputes, controversies and
                  conflicts arising out of or in connection with this Agreement
                  or its performance, including disputes on its existence,
                  validity, binding effect, amendment or termination shall be
                  referred to and finally resolved by arbitration in Singapore
                  in accordance with the Arbitration Rules of the Singapore
                  International Arbitration Centre ("SIAC") for the time being
                  in force. The law of arbitration shall be the International
                  Arbitration Act (Chapter 143A) of the Singapore. The Tribunal
                  shall consist of three arbitrators to be appointed in the
                  first instance by the Purchaser and the Vendors by mutual
                  agreement, and failing agreement, by the chairman of the SIAC.

         (c)      None of the parties shall be entitled to commence or maintain
                  any action in a court of law upon any matter in dispute
                  arising from or in relation to this Agreement except for the
                  enforcement of an arbitral award granted pursuant to this
                  Clause 9.15.

         (d)      During the period of submission to arbitration and thereafter
                  until the granting of the arbitral award, the parties shall,
                  except in the event of termination, continue to perform all
                  their obligations under this Agreement, to the maximum extent
                  possible, without prejudice to a final adjustment in
                  accordance with the said award.

9.17     NO PARTNERSHIP. Nothing in this Agreement shall be taken to constitute
         a partnership between the parties and none of the parties shall have
         any authority to bind any other.

9.18     FURTHER ASSURANCE. Each party shall execute such documents and other
         agreements and take such further actions as may be reasonably required
         or desirable to carry out the provisions and the transactions
         contemplated by this Agreement.

                                       17
<PAGE>

                                   SCHEDULE 1
                                   ----------

                                     VENDORS
                                     -------

         (1)                           (2)                        (3)
         ---                           ---                        ---

    NAME OF VENDOR            NUMBER OF SALE SHARES            NUMBER OF
    --------------            ---------------------            ---------
                                                          CONSIDERATION SHARES
                                                          --------------------

AMARU HOLDINGS LIMITED             34,681,964                 539,098,165
                                   ----------                 -----------

CHUA LEONG HIN                      1,296,336                  20,150,310
                                   ----------                 -----------

CHEW HUA SENG                       5,185,342                  80,601,213
                                   ----------                 -----------

GAY CHEE CHEONG                      648,168                   10,075,156
                                   ----------                 -----------

GABRIEL YAP CHONG HIN                648,168                   10,075,156
                                   ----------                 -----------

                                       18
<PAGE>

                                   SCHEDULE 2
                                   ----------

                               VENDORS' WARRANTIES
                               -------------------

1.       DUE INCORPORATION AND AUTHORITY. Each of the Group Companies is a
         company duly organised and validly existing under the laws of its
         jurisdiction of incorporation and has all requisite corporate power and
         lawful authority to own, lease and operate its properties and to carry
         on its business.

2.       SHARE CAPITAL. As at the date hereof, the Company's issued and paid-up
         share capital is S$43,981,964 comprising 42,459,978 ordinary shares.
         All the shares issued are duly authorised, validly issued and fully
         paid. There is not other class of share capital or other ownership
         interests of the Company authorised or outstanding.

3.       OPTION OR OTHER RIGHTS. There is no outstanding right, subscription,
         warrant, call, unsatisfied pre-emptive right, option or other agreement
         of any kind to purchase or otherwise to receive from any Group Company,
         any of the authorised but unissued or unauthorised share capital or any
         other security of any Group Company, and there is no outstanding
         security of any kind convertible or exchangeable into any such share
         capital of any Group Company.

4.       SUBSIDIARIES. Other than the Subsidiary, the Company does not have any
         subsidiary which it, directly or indirectly, owns or in which it,
         directly or indirectly, has the power to vote shares of any capital
         stock or other ownership interests having ordinary voting power to
         elect a majority or the directors of such corporation, or other persons
         performing similar functions for such entity. All of the shares in the
         Subsidiary are duly authorised, validly issued and fully paid. There is
         no other class of share capital or other ownership interests of the
         Subsidiary authorised or outstanding. The Company owns, legally and
         beneficially, such proportion of the issued and paid-up capital of the
         Subsidiary free and clear from all and any Encumbrances together with
         all rights and benefits attaching thereto as at the Completion Date and
         no other person shall have any rights of pre-emption over the shares of
         the Subsidiary.

5.       TRANSACTIONS WITH AFFILIATES. All transactions between any member of
         the Group and its respective Affiliates have been on an arms' length
         basis on terms fair to such member of the Group.

6.       CORPORATE RECORDS. The Vendors have delivered to the Purchaser true and
         complete and certified copies of the Memorandum and Articles of
         Association of the Company (or other constitutional documents), and the
         Memorandum and Articles of Association (or other constitutional
         documents) of the Subsidiary as in effect on the date hereof. The
         minute books or comparable records of each Group Company which have
         been made available to the Purchaser for its inspection contain true
         and complete records in all material respects of all meetings and
         consents in lieu of meeting of the board of directors or comparable
         persons (and any committee thereof) of such Group Company and their
         respective shareholders, since the time of its organisation and
         accurately reflect all material transactions referred to in such
         minutes and consents in lieu of meeting. The records of shareholdings
         or comparable records of each Group Company which have been made
         available to the Purchaser for its inspection are true and complete in
         all material respects.

7.       FINANCIAL STATEMENTS. All audited financial statements of each Group
         Company, which have been delivered to the Purchaser, fairly present the
         financial position of the Company and the Group as at Group Balance
         Sheet Date and the results of operations of the Company and the Group
         for such period and, all such financial statements have been prepared
         in accordance with generally accepted international accounting
         principles consistently applied for the periods covered thereby.

                                       19
<PAGE>

8.       CONDITION OF GROUP. There has not been any condition or event that has
         or may have a Material Adverse Effect on any Group Company or the Group
         since the Group Balance Sheet Date.

9.       TAXES.

         (a)      All tax returns, statements, reports and forms required to be
                  filed with any taxing authority on or before the Completion
                  Date with respect to any period ending, under applicable law,
                  on or before the Completion Date by, or with respect to, any
                  Group Company have been filed or will be filed on or before
                  the Completion Date in accordance with all applicable Laws.

         (b)      Each of the Group Companies has timely paid, withheld or made
                  provision for all taxes shown to be due on the returns that
                  will be filed on or before the Completion Date.

         (c)      There is no action, suit, proceeding, investigation, audit or
                  claim now proposed or pending against or threatened, with
                  respect to any Group Company in respect of any tax obligation.

         (d)      There are no Liens for taxes upon the assets of any Group
                  Company.

10.      COMPLIANCE WITH LAWS. None of the Group Companies is in violation of
         any Orders or any applicable Laws or received notice that any such
         violation is being or may be alleged.

11.      CLAIMS AND PROCEEDINGS. There are no outstanding Orders of any
         Governmental Body against or involving any of the Group Companies. To
         the best of the Vendors' knowledge and belief, there are no actions,
         suits, claims or legal, administrative or arbitral proceedings or
         investigations (collectively, "CLAIMS") (whether or not the defence
         thereof or liabilities in respect thereof are covered by insurance)
         instituted against or involving any of the Group Companies or any of
         their respective properties. To the best of the Vendors' knowledge and
         belief, there are no Claims instituted that would give rise to any
         right of indemnification on the part of any director or officer of any
         of the Group Companies or the heirs, executors or administrators of
         such director or officer, against any of the Group Companies.

12.      RECEIVABLES. All accounts and notes receivable outstanding or
         subsisting on the Group Balance Sheet Date are reflected on the Company
         Balance Sheet, and all accounts and notes receivable arising subsequent
         to the Group Balance Sheet Date:

         (a)      have arisen in the ordinary course of business of the Group
                  Companies; and

         (b)      subject only to a reserve for bad debts computed in a manner
                  consistent with past practice and reasonably estimated to
                  reflect the probable results of collection, have been
                  collected or are collectible in the ordinary course of
                  business of the Group Companies in the aggregate recorded
                  amounts thereof in accordance with their terms.

14.      TANGIBLE PROPERTY. The facilities, machinery, equipment, furniture,
         leasehold improvements, fixtures, vehicles, structures, any related
         capitalised items and other tangible property material to the business
         of the Group Companies are in satisfactory operating condition and
         repair, subject to continued repair and replacement in accordance with
         past practice, and are suitable for their intended use.

15.      TITLE TO PROPERTIES. The Group Companies own outright and has good and
         marketable title to all of its properties and assets, including,
         without limitation, all of the assets reflected on the Group Balance
         Sheet, in each case free and clear of any Lien (save for Liens
         described in the notes to the Balance Sheet of the Company). The
         properties and assets of the Group described in the Group Balance Sheet
         are the only properties or assets required for the Group Companies to
         carry on their respective businesses as now operated and as
         contemplated, and as such businesses has been represented to the
         Purchaser.

                                       20
<PAGE>

16.      LIABILITIES. As at the Group Balance Sheet Date, to the best of the
         knowledge and belief of the Vendors, none of the Group Companies has
         any direct or indirect indebtedness or liability (whether primary or
         secondary) of a kind required by generally accepted accounting
         principles to be set out on a financial statement or in the notes
         thereto (the "LIABILITIES") that were not fully and adequately
         reflected or reserved against on the Balance Sheet of the Company. None
         of the Group Companies has, except in the ordinary course of business,
         incurred any Liabilities since the Group Balance Sheet Date.

17.      INSURANCE. All insurance policies held by or on behalf of the each
         Group Company are valid and binding in accordance with their terms, are
         in full force and effect, and insure against risks and liabilities to
         an extent and in a manner customary in the industry in which the
         relevant Group Company operates. All premiums have been paid in full.
         None of the Group Companies has received any notice from any of its
         insurance carriers that any insurance premiums will be materially
         increased in the future or that any insurance coverage will not be
         available in the future on substantially the same terms as now in
         effect.

18.      KEY EMPLOYEES. Each Group Company has in relation to each of the Key
         Employees, complied with in all material respects with all obligations
         imposed on it by all statutes, regulations and codes of conduct and
         practice relevant to the relations between it and the said Key
         Employees and has maintained current adequate and suitable records
         regarding the service of each of them.

19.      POTENTIAL CONFLICTS OF INTERESTS. To the best of the knowledge and
         belief of the Vendors, no officer or director of the Company and no
         entity controlled by one or more of the foregoing:

         (a)      owns, directly or indirectly, any interest in or is an
                  officer, director, employee or consultant of, any person which
                  is, or is engaged in business as, a competitor, lessor,
                  lessee, supplier, distributor, sales agent or customer of any
                  of the Group Companies provided that nothing in this paragraph
                  (a) shall prohibit any officer or Director from owning, or
                  having any direct or indirect interest, in any real property
                  in any country or in any person which is engaged in any
                  business involving real property;

         (b)      owns, directly or indirectly, in whole or in part, any
                  property that any of the Group Companies uses in the conduct
                  of its business; or

         (c)      has any cause of action or other claim whatsoever against, or
                  owes any amount to, any of the Group Companies.

20.      FULL DISCLOSURE. Subject to any and all restrictions imposed by
         operation of any relevant laws and regulations, all Documents delivered
         by or on behalf the Vendors in connection with this Agreement, the due
         diligence conducted by the Purchaser and its advisors on the Group
         Companies pursuant to Clause 3.1(a) and any Contemplated Transactions
         are true, complete and accurate in all material respects. No
         representation or warranty in connection with any of the Group
         Companies contained in this Agreement, and no Document furnished by or
         on behalf of the Vendors to the Purchaser pursuant to this Agreement or
         in connection with any Contemplated Transactions, contains an untrue
         statement of a material fact or an omission of a material fact. The
         Vendors have fully and accurately disclosed to the Purchaser all facts
         material to the business conducted or proposed to be conducted by each
         of the Group Companies and as such business has been represented to the
         Purchaser or its advisors.

                                       21
<PAGE>

                                   SCHEDULE 3
                                   ----------

                              PURCHASER WARRANTIES
                              --------------------

1.       DUE INCORPORATION AND AUTHORITY. The Purchaser is a company duly
         organised and validly existing under the laws of its jurisdiction of
         incorporation and has all requisite corporate power and lawful
         authority to own, lease and operate its properties and to carry on its
         business.

2.       AUTHORITY TO EXECUTE AND PERFORM AGREEMENT. The Purchaser has the full
         legal right and power and all authority and approvals required to
         execute and deliver this Agreement and to perform fully its respective
         obligations hereunder. This Agreement has been duly authorised,
         executed and delivered by the Purchaser and constitutes valid and
         binding obligations of the Purchaser enforceable in accordance with its
         terms.

3.       NO BREACH. The execution, delivery and performance of this Agreement by
         the Purchaser and the consummation of any of the Contemplated
         Transactions will not:

         (a)      violate any provision of the Memorandum and Articles of
                  Association (or other constitutional documents) of the
                  Purchaser;

         (b)      require the approval or consent of any Governmental Body or
                  the approval or consent of any other person, other than as set
                  out in Clauses 3.1(c);

         (c)      conflict with or result in any breach or violation of any of
                  the terms and conditions of, or constitute (or with notice or
                  lapse of time or both constitute) a default under, any
                  applicable Law or Order or any Contract to which the Purchaser
                  is a party or by or to which the Purchaser is or its
                  respective shares are bound or subject;

         (d)      violate or result in the revocation or suspension of any
                  Permit issued or granted to the Purchaser; or

         (e)      result in the creation of any Lien on the shares issued by the
                  Purchaser or any property of the Purchaser.

4.       AUTHORITY TO ISSUE AND ALLOT CONSIDERATION SHARES. The Consideration
         Shares when allotted and issued shall be free and clear from all and
         any Encumbrances together with all rights and benefits attaching
         thereto as at the Completion Date and no other person has or shall have
         any rights of pre-emption over the Consideration Shares.

5.       SHARE CAPITAL. As at the date hereof, the Purchaser's issued and
         paid-up share capital is S$10,912,610.17 comprising 327,062,579
         ordinary shares. All of the shares issued are duly authorised, validly
         issued and fully paid. There is no other class of share capital or
         other ownership interests of the Purchaser authorised or outstanding.

6.       OPTION OR OTHER RIGHTS. Other than this Agreement and any Contemplated
         Transactions, there is no outstanding right, subscription, warrant,
         call, unsatisfied pre-emptive right, option or other agreement of any
         kind to purchase or otherwise to receive from the Purchaser, any of the
         authorised but unissued or unauthorised share capital or any other
         security of the Purchaser, and there is no outstanding security of any
         kind convertible or exchangeable into any such share capital of the
         Purchaser.

7.       SUBSIDIARIES. The Purchaser has no subsidiary which the Purchaser,
         directly or indirectly, owns or in which the Purchaser, directly or
         indirectly, has the power to vote shares of any capital stock or other
         ownership interests having ordinary voting power to elect a majority or
         the directors of such corporation, or other persons performing similar
         functions for such entity.

8.       TRANSACTIONS WITH AFFILIATES. All transactions between the Purchaser
         and their respective Affiliates have been on an arms' length basis on
         terms fair to the Purchaser.

                                       22
<PAGE>

9.       CORPORATE RECORDS. The Purchaser has delivered to the Vendors true and
         complete and certified copies of its Memoranda and Articles of
         Association (or other constitutional documents as in effect on the date
         hereof. The minute books or comparable records of the Purchaser which
         have been made available to the Vendors for his inspection contain true
         and complete records in all material respects of all meetings and
         consents in lieu of meeting of the board of directors or comparable
         persons (and any committee thereof) of the Purchaser and their
         respective shareholders, since the time of its organisation and
         accurately reflect all material transactions referred to in such
         minutes and consents in lieu of meeting. The records of shareholdings
         or comparable records of the Purchaser which have been made available
         to the Vendors for inspection are true and complete in all material
         respects.

10.      FINANCIAL STATEMENTS. All audited financial statements of the
         Purchaser, which have been delivered to the Vendors, fairly present the
         financial position of the Purchaser as at the Financial Year End and
         the results of operations of the Purchaser for such period and, all
         such financial statements have been prepared in accordance with
         generally accepted international accounting principles consistently
         applied for the periods covered thereby.

11.      CONDITION OF PURCHASER. There has not been any condition or event that
         has or may have a material adverse effect on the Purchaser since the
         Financial Year End.

12.      TAXES.

         (a)      All tax returns, statements, reports and forms required to be
                  filed with any taxing authority on or before the Completion
                  Date with respect to any period ending, under applicable law,
                  on or before the Completion Date by, or with respect to, the
                  Purchaser have been filed or will be filed on or before the
                  Completion Date in accordance with all applicable Laws.

         (b)      The Purchaser has timely paid, withheld or made provision for
                  all taxes shown to be due on the returns that will be filed on
                  or before the Completion Date.

         (c)      There is no action, suit, proceeding, investigation, audit or
                  claim now proposed or pending against or threatened, with
                  respect to the Purchaser in respect of any tax obligation.

         (d)      There are no Liens for taxes upon the assets of the Purchaser.

13.      COMPLIANCE WITH LAWS. The Purchaser is not in violation of any Orders
         or any applicable Laws or received notice that any such violation is
         being or may be alleged.

14.      CLAIMS AND PROCEEDINGS. There are no outstanding Orders of any
         Governmental Body against or involving the Purchaser. To the best of
         the knowledge and belief of the Purchaser, there are no Claims (whether
         or not the defence thereof or liabilities in respect thereof are
         covered by insurance) instituted against or involving the Purchaser, or
         any of its respective properties. To the best of the knowledge and
         belief of the Purchaser, there are no Claims instituted that would give
         rise to any right of indemnification on the part of any director or
         officer of the Purchaser, or the heirs, executors or administrators of
         such director or officer, against the Purchaser.

15.      RECEIVABLES. All accounts and notes receivable outstanding or
         subsisting on the Financial Year End are reflected on the Purchaser
         Balance Sheet, and all accounts and notes receivable arising subsequent
         to Financial Year End:

         (a)      have arisen in the ordinary course of business of the
                  Purchaser; and

         (b)      subject only to a reserve for bad debts computed in a manner
                  consistent with past practice and reasonably estimated to
                  reflect the probable results of collection, have been
                  collected or are collectible in the ordinary course of
                  business of the Purchaser in the aggregate recorded amounts
                  thereof in accordance with their terms.

                                       23
<PAGE>

16.      TANGIBLE PROPERTY. The facilities, machinery, equipment, furniture,
         leasehold improvements, fixtures, vehicles, structures, any related
         capitalised items and other tangible property material to the business
         of the Purchaser are in satisfactory operating condition and repair,
         subject to continued repair and replacement in accordance with past
         practice, and are suitable for their intended use.

17.      TITLE TO PROPERTIES. The Purchaser owns outright and has good and
         marketable title to all of its properties and assets, including,
         without limitation, all of the assets reflected on the Purchaser
         Balance Sheet in each case free and clear of any Lien (save for Liens
         described in the notes to the Purchaser Balance Sheet).

18.      LIABILITIES. As at the Financial Year End, to the best of the knowledge
         of the Purchaser, the Purchaser has no direct or indirect Liabilities
         that were not fully and adequately reflected or reserved against on the
         Purchaser Balance Sheet. The Purchaser has not, except in the ordinary
         course of business, incurred any Liabilities since the Purchaser
         Balance Sheet.

19.      INSURANCE. All insurance policies held by or on behalf of the Purchaser
         are valid and binding in accordance with their terms, are in full force
         and effect, and insure against risks and liabilities to an extent and
         in a manner customary in the industry in which the Purchaser operates.
         All premiums have been paid in full. The Purchaser has not received any
         notice from any of its insurance carriers that any insurance premiums
         will be materially increased in the future or that any insurance
         coverage will not be available in the future on substantially the same
         terms as now in effect.

20.      KEY EMPLOYEES. The Purchaser has in relation to each of its Key
         Employees, complied in all material respects with all obligations
         imposed on it by all statutes, regulations and codes of conduct and
         practice relevant to the relations between it and the said Key
         Employees and has maintained current adequate and suitable records
         regarding the service of each of them.

21.      POTENTIAL CONFLICTS OF INTERESTS. To the best of the knowledge and
         belief of the Purchaser, no officer or director of the Purchaser and no
         entity controlled by one or more of the foregoing:

         (a)      owns, directly or indirectly, any interest in or is an
                  officer, director, employee or consultant of, any person which
                  is, or is engaged in business as, a competitor, lessor,
                  lessee, supplier, distributor, sales agent or customer of the
                  Purchaser;

         (b)      owns, directly or indirectly, in whole or in part, any
                  property that the Purchaser uses in the conduct of its
                  business; or

         (c)      has any cause of action or other claim whatsoever against, or
                  owes any amount to, the Purchaser.

22.      FULL DISCLOSURE. All Documents delivered by or on behalf of the
         Purchaser in connection with this Agreement, the due diligence
         conducted by the Vendors on the Purchaser and the Purchaser
         Subsidiaries pursuant to Clause 3.1(a) and any Contemplated
         Transactions are true, complete and accurate in all material respects.
         No representation or warranty in connection with the Purchaser
         contained in this Agreement, and no Document furnished by or on behalf
         of the Purchaser to the Vendors pursuant to this Agreement or in
         connection with any Contemplated Transactions, contains an untrue
         statement of a material fact or an omission of a material fact. The
         Purchaser has fully and accurately disclosed to the Vendors all facts
         material to the business conducted or proposed to be conducted by the
         Purchaser and as such business has been represented to the Vendors and
         his advisors.

                                       24
<PAGE>

EXECUTION CLAUSES
-----------------

THE PURCHASER
-------------

Signed by __________________________________)
for and on behalf of                        )
AUSTON INTERNATIONAL                        )
GROUP LTD.                                  )
in the presence of                          )

_______________________________
Name:
Passport No.:

THE VENDORS

Signed by __________________________________)
for and on behalf of                        )
AMARU HOLDINGS LIMITED                      )
in the presence of                          )

_______________________________
Name:
Passport No.:

Signed by CHUA LEONG HIN                    )
in the presence of                          )

_______________________________
Name:
Passport No.:

Signed by Gay Chee Cheong on behalf         )
of CHEW HUA SENG by Power Attorney          )
dated    14 January 2007                    )
in the presence of                          )

_______________________________
Name:
Passport No.:

                                       25
<PAGE>

Signed by GAY CHEE CHEONG                   )
in the presence of                          )

_______________________________
Name:
Passport No.:

Signed by GABRIEL YAP CHONG HIN             )
in the presence of                          )

_______________________________
Name:
Passport No.:

                                       26Employment Agreement for Larry Ryan

    Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    This
      EMPLOYMENT AGREEMENT (this “Agreement”)
      is
      entered into as of January 12, 2007, by and between SulphCo, Inc., a Nevada
      corporation (along with its successors and assigns, the “Company”),
      and
      Larry Ryan (“Executive”).

     

    WHEREAS,
      the Company desires to employ Executive, and Executive desires to be employed
      by
      the Company, on the terms and conditions hereinafter set forth.

     

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein and other
      good and valuable consideration, the Company and Executive agree as follows:
      

     

    1. Employment.
      

     

    (a) Term.
      Subject
      to the terms hereof, Executive’s employment hereunder shall commence as of
      January 12, 2007 (the “Effective Date”) and continue until the first anniversary
      of the Effective Date, with automatic one (1) year extensions thereafter, unless
      otherwise terminated by Executive or by the Company pursuant to Section 3 of
      the
      Agreement (such period, the “Employment
      Period”).

     

    (b) Position,
      Place of Performance and Duties.
      Executive will serve as the Company’s Chief Executive Officer (“CEO”),
      and
      Executive shall report directly to the Company’s Board of Directors (the
“Board”)
      and
      any committees thereof. Executive will have the responsibilities, duties and
      authority commensurate with the position of CEO, and Executive will perform
      such
      other services of an executive nature as may be prescribed from time to time
      by
      the Board. Executive will generally perform his services hereunder at the
      Company’s principal offices in Sparks, NV, or such other place as may be agreed
      to by Executive and the Board. Notwithstanding the foregoing, Executive may,
      for
      a period of up to 12 months following the Effective Date (the “Initial
      Period”),
      maintain his current family residence in Clifton Park, NY, and travel on at
      least a weekly basis between his Clifton Park, NY residence and the Company’s
      offices in Sparks, NV. During the Initial Period, the Company shall pay for
      all
      reasonable travel expenses associated with Executive’s commute between Clifton
      Park, NY and Sparks, NV. On or before the end of the Initial Period, Executive
      agrees to relocate his residence to the Sparks, NV area. During the Employment
      Period, Executive will be available to travel for business at such times and
      to
      such places as may be reasonably necessary in connection with the performance
      of
      his duties hereunder, including, but not limited to, anywhere in the United
      States, the Middle East and Europe. Executive
      shall devote his full business time and efforts to the performance of his duties
      hereunder. For
      the
      duration of the Employment Period, Executive agrees not to actively engage
      in
      any other employment, occupation or consulting activity for any direct or
      indirect remuneration without the prior written approval of the Board, which
      approval will not be unreasonably withheld; provided, however, that Executive
      may, without the approval of the Board, serve in any capacity with any civic,
      educational or charitable organization, subject to Executive’s obligations under
      this Agreement and any agreement contemplated under Section 5 of this
      Agreement.

     

    2. Compensation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a) Base
      Salary.
      During
      the Employment Period, the Company will pay Executive a base salary at the
      annual rate of $300,000, which amount will be reviewed annually and subject
      to
      adjustment at the good faith discretion of the Board (or the Compensation
      Committee of the Board (the “Compensation
      Committee”)),
      including without limitation, discretionary cost of living adjustments (as
      adjusted from time to time, the “Base
      Salary”).
      The
      Base Salary will be payable in substantially equal installments in accordance
      with the Company’s payroll practices as in effect from time to
      time.

     

    (b) Annual
      Bonus.
      During
      the Employment Period, based on Executive’s performance relative to fixed
      targets set by the Board and the Compensation Committee in its sole discretion,
      and subject to the overall performance of the Company, Executive will be
      eligible to receive annual bonuses, with a target bonus of up to 50% of Base
      Salary.

     

    (c) Equity
      Compensation.
      On the
      Effective Date, Executive will be granted a stock option to purchase one hundred
      fifty thousand (150,000) shares of the Company's common stock at an exercise
      price equal to the fair market value of the Company’s common stock on the date
      of grant (the “Option”).
      The
      Option will vest over a three-year period, with 1/3
      of
      the shares subject to the Option vesting on each of the first three
      anniversaries following the date of grant.
      The
      Option will be subject to the terms, definitions and provisions of the SulphCo,
      Inc. 2006 Stock Option Plan, and the accompanying stock option agreement under
      which it is granted. In addition, Executive may further be entitled to annual
      option grants as part of the annual review process at the discretion of the
      Board and the Compensation Committee.

     

    (d) Vacation.
      During
      the Employment Period, Executive will be entitled to (i) five weeks paid
      vacation in each calendar year (to be taken at such times and in such number
      of
      days as Executive and the Company shall mutually agree), (ii) paid sick days
      as
      needed due to illness or other incapacity, and (iii) paid Company holidays,
      all
      in accordance with the Company’s policies for its senior executives as in effect
      from time to time. Any accrued unused vacation may be carried over from one
      year
      to the following year, provided that no more than five weeks vacation may be
      carried over at any time. 

     

    (e) Benefits.
      During
      the Employment Period, Executive (and his eligible dependents) will be entitled
      to participate in the same manner as the Company’s other senior executives in
      any employee benefit plans which the Company provides or may establish for
      the
      benefit of its senior executives generally; provided that the Company reserves
      the right to cancel or change any of its employee benefit plans and programs
      at
      any time starting immediately upon contract signing.

     

    (f) Reimbursement
      of Expenses.
      During
      the Employment Period, the Company will reimburse Executive for all
      out-of-pocket business expenses that are incurred by him in furtherance of
      the
      Company’s business in accordance with the Company’s policies with respect
      thereto as in effect from time to time. Without limiting the generality of
      the
      foregoing, the Company shall pay or reimburse Executive for charges relating
      to
      the use of his cellular phone and reasonable business travel
      expenses.

     

    (g) Signing
      Bonus.
      Within
      ten (10) days following the Effective Date, the Company shall pay to Executive
      a
      one-time signing bonus of $105,000.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (h) Relocation
      Expenses.
      The
      Company shall reimburse Executive for reasonable relocation expenses, including
      moving costs and house selling assistance (realtor fees and allowable closing
      costs), in order to relocate his family from Clifton Park, NY to the Sparks,
      NV
      region, in an amount not to exceed $35,000. If
      Executive’s employment is terminated by the Company for Cause, or by Executive
      without Good Reason, within twenty-four (24) months of the Effective Date,
      Executive will be required to reimburse the Company for all payments made to
      Executive (or on Executive’s behalf) in accordance with this Section 2(h),
      provided that the amount Executive will be required to repay the Company will
      be
      reduced by 1/24th
      for
      each
      full month of service to the Company Executive has completed following the
      Effective Date, but prior to the Date of Termination (as defined in Section
      4(b)
      of the Agreement).

     

    (i) Other
      Reimbursements.
      If
      Executive’s prior employer demands reimbursement from Executive for moving
      and/or tax filing expenses incurred during Executive’s recent assignment in
      Germany, the Company agrees to reimburse Executive for such expenses upon proper
      presentment of such prior employer’s demand and sufficient evidence of
      Executive’s satisfaction of such demand. Said expenses shall not exceed
      $30,000.

     

    3. Termination.
      Executive’s employment
      hereunder will terminate upon the first to occur of the following: 

     

    (a) Executive’s
      death; 

     

    (b) by
      the
      Company in the event of Executive’s Disability (as defined below);

     

    (c) by
      the
      Company for Cause (as defined below);

     

    (d) by
      the
      Company without Cause; 

     

    (e) by
      Executive, with or without Good Reason (as defined below); or

     

    (f) by
      Executive for any reason within four weeks of Effective Date.

     

    For
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    “Cause”
means:
      (i) Executive’s conviction of, or plea of nolo
      contendere
      to, a
      felony, or a crime involving dishonesty, disloyalty or moral
      turpitude; (ii)
      Executive’s willful disloyalty or deliberate dishonesty; (iii) the commission by
      Executive of an act of fraud or embezzlement against the Company; (iv)
      Executive’s failure to use his good faith efforts to perform in all material
      respects such duties as are contemplated by this Agreement, or to follow any
      lawful direction of the Board or any committee thereof; (v) Executive’s gross
      negligence in the performance of his duties hereunder; or (vi) a material breach
      by Executive of any provision of this Agreement or of any Company policy, which
      breach is not cured within thirty (30) days after delivery to Executive by
      the
      Company of written notice of such breach, provided that, if such breach is
      not
      capable of being cured within such 30-day period, Executive will have a
      reasonable additional period to cure such breach. No act or omission on
      Executive’s part will be considered “willful” unless done, or admitted to be
      done, by Executive in bad faith or without his reasonable belief that such
      act
      or omission was in the best interests of the Company. Any determination of
      “Cause” shall be made in good faith by a majority vote of the
      Board.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Disability”
means
      Executive’s mental, physical or other disability, the condition of which renders
      him incapable of performing his obligations under this Agreement for a period
      of
      90 consecutive days or an aggregate of 120 days (whether or not consecutive)
      in
      any 12-month period. Any determination of “Disability” shall be made in good
      faith by a majority vote of the Board.

     

    “Good
      Reason”
means,
      without Executive’s consent: (i) a failure by the Company to comply with any
      material provision of this Agreement which is not cured within thirty (30)
      days
      after Executive has given written notice of such noncompliance to the Company,
      provided that, if such failure is not capable of being cured within such 30-day
      period, the Company will have a reasonable additional period to cure such
      failure; (ii) a material adverse change by the Company in Executive’s
      responsibilities, duties or authority as CEO of the Company, which causes
      Executive’s position with the Company to have less responsibility or authority
      than Executive’s position immediately prior to such change, provided that any
      such change is not in connection with the termination of Executive’s employment
      with the Company; or (iii) at Executive’s election, a Change in Control of the
      Company if, following such Change in Control, Executive is no longer the CEO
      of
      the Company (or the surviving or successor company, as applicable), provided
      that Executive’s election under this subsection (iii) may only be exercised
      within the thirty (30) day period following the first six (6) month anniversary
      following the Change in Control. 

     

    “Change
      in Control”
means:
      (i) the acquisition by any person, entity or affiliated group becoming the
      beneficial owner of more than 50% of the outstanding equity securities of the
      Company or otherwise becoming entitled to vote more than 50% of the voting
      power
      of the Company; (ii) a consolidation or merger (in one transaction or a series
      of related transactions) of the Company pursuant to which the holders of the
      Company’s equity securities immediately prior to such transaction or series of
      related transactions would not be the holders immediately after such transaction
      or series of related transactions of at least 50% of the voting power of the
      entity surviving such transaction or series of related transactions; or (iii)
      the sale, lease, exchange or other transfer (in one transaction or a series
      of
      related transactions) of all or substantially all of the assets of the Company.
      In all respects, the definition of “Change in Control” shall be interpreted to
      comply with Section 409A of the Internal Revenue Code of 1986, as amended (the
      “Code”),
      and
      the provisions of Treasury Notice 2005-1, Proposed Treasury Regulation Section
      1.409A and any successor statute, regulation and guidance thereto.

     

    4. Termination
      Procedures; Effect of Termination.
      

     

    (a) Notice
      of Termination.
      Any
      termination of Executive’s employment by the Company or Executive (other than
      termination on account of Executive’s death) shall be communicated by written
      notice (a “Notice
      of Termination”)
      to the
      other party hereto in accordance with Section 7(a) below, which notice shall
      indicate the specific termination provision in Section 3 of this Agreement
      relied upon and, if termination by the Company for Cause, the specific reasons
      therefore.

     

    (b) Date
      of Termination.
      As used
      herein, “Date
      of Termination”
shall
      mean: (i) if Executive’s employment is terminated as a result of Executive’s
      death, the date of Executive’s death; (ii) if Executive’s employment is
      terminated by reason of Executive’s Disability, on the date Notice of
      Termination is given or such later date specified in the Notice of Termination
      as the effective date of termination; (iii) if Executive’s employment is
      terminated by the Company for Cause, on the date Notice of Termination is given
      or such later date specified in the Notice of Termination as the effective
      date
      of termination; (iv) if Executive’s employment is terminated by the Company
      without Cause, such date which is specified in the Notice of Termination as
      the
      effective date of termination; and (v) if Executive’s employment is terminated
      by Executive, with or without Good Reason, such date which is specified in
      the
      Notice of Termination as the effective date of termination, which date shall
      be
      at least thirty (30) days following the date the Notice of Termination is
      given.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c) Compensation
      Upon Termination.
      

     

    (i) At
      any
      time that Executive’s employment is terminated, the Company will pay the Accrued
      Obligations (as defined below) to Executive (or to his estate or legal
      representative, if applicable) on or promptly following the Date of Termination.
      For purposes of this Agreement, “Accrued
      Obligations”
means
      (A) the portion of Executive’s Base Salary as has accrued up through the Date of
      Termination which the Executive has not yet been paid, (B) an amount equal
      to
      any unpaid bonus which has accrued through the Date of Termination, (C) an
      amount equal to the value of Executive’s accrued unused vacation days, and (D)
      the amount of expenses incurred by Executive on behalf of the Company prior
      to
      the Date of Termination and not yet reimbursed as of such date.

     

    (ii) In
      addition to the Accrued Obligations, if Executive’s employment is terminated by
      the Company without Cause or by Executive for Good Reason (and other than due
      to
      Executive’s death or Disability), then in exchange for Executive’s execution and
      delivery to the Company of a full general release (which Executive does not
      later revoke in accordance with its terms), in a form acceptable to the Company,
      releasing all claims, known or unknown, that Executive may have against the
      Company, and any subsidiary or related entity, their officers, directors,
      employees and agents, the Company will (A) within thirty (30) days following
      the
      Date of Termination, pay to Executive (or his estate or legal representative
      if
      applicable), a lump-sum severance payment equal to one year of his then current
      Base Salary, and (B) upon proper election of continuation coverage under Title
      X
      of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”)
      under
      the Company’s group health plans, continue to pay the group medical and dental
      COBRA premiums for Executive and Executive’s eligible dependents until the
      earlier of (x) the date Executive first becomes eligible for coverage under
      a
      subsequent employer’s applicable group health plan(s), (y) the date such
      coverage terminates under applicable law, or (z) twelve (12) months after the
      Date of Termination.

     

    Notwithstanding
      any other provision with respect to the timing of payments under this Section
      4(c), if, at the time of Executive’s termination,
      Executive is deemed to be a “specified employee”  (within the meaning
      of Code Section 409A, and any
      successor statute, regulation and guidance thereto)
      of the
      Company, then only to the extent necessary to comply with the requirements
      of
      Code Section 409A, any payments to which Executive may become entitled
      under Section 4(c) which are subject to Code Section 409A (and not otherwise
      exempt from its application) will be withheld until the first business day
      of
      the seventh month following the Date of Termination, at which time the Executive
      shall be paid an aggregate amount of any withheld payments otherwise
      due under Section 4(c), as applicable.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (d) Other
      Provisions.
      The
      effect of termination on any stock options or restricted stock granted or issued
      to Executive shall be governed by the terms and provisions of any applicable
      option agreement, restricted stock agreement and/or equity incentive plan.
      The
      amount of any benefit due to Executive after the date of such termination
      pursuant to this Agreement will not be reduced or offset by any payment or
      benefit that Executive may receive from any other source.

     

    (e) Within
      Four Weeks.
      The
      Executive may terminate this Agreement for any reason within four weeks of
      the
      Effective Date. In such case, Executive shall receive no compensation from
      the
      Company except one month’s salary and the signing bonus described in Section
      2(g) of this Agreement.

     

    5. Restrictive
      Covenants.
      On the
      Effective Date, Executive will enter into a confidentiality, non-competition,
      non-solicitation, assignment of inventions and non-disparagement agreement,
      substantially similar to the Company’s standard form of agreement used for its
      senior executives, and the non-competition and non-solicitation covenants shall
      last for three (3) years following the Date of Termination.

     

    6. Indemnification.
      The
      Company shall, to the fullest extent permitted by law and by its Certificate
      of
      Incorporation and Bylaws, indemnify Executive and hold him harmless for any
      acts
      or decisions made by him in good faith while performing his duties to the
      Company, and the Company shall at all times during Executive’s employment with
      the Company, maintain directors’ and officers’ liability insurance, at and upon
      commercially reasonable terms and limits.

     

    7. General.

     

    (a) Notices.
      All
      notices, requests, consents and other communications hereunder will be in
      writing, will be addressed to the receiving party’s address set forth below or
      to such other address as a party may designate by notice hereunder, and will
      be
      either (i) delivered by hand, (ii) sent by overnight courier, or
      (iii) sent by registered or certified mail, return receipt requested,
      postage prepaid. All notices, requests, consents and other communications
      hereunder will be deemed to have been given either (A) if by hand, at the
      time of the delivery thereof to the receiving party at the address of such
      party
      set forth above, (B) if sent by overnight courier, on the next business day
      following the day such notice is delivered to the courier service, or (C) if
      sent by registered or certified mail, on the third business day following the
      day such mailing is made. All notices, requests, consents and other
      communications hereunder will be sent as follows:

     

    
      	
            	If
              to the Company:	
              SulphCo,
                Inc.

              850
                Spice Islands Drive

              Sparks,
                Nevada 89431

              Attention:
                Chairman of the Board

            

      	 	 	 

      	 	If to
              Executive:	
              Larry Ryan

              8
                DeVoe Dr.

              Clifton
                Park, NY 12065

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

      

    (b) Entire
      Agreement.
      This
      Agreement (together with any other agreements referenced herein) embodies the
      entire agreement and understanding between the parties hereto with respect
      to
      the subject matter hereof and supersedes all prior oral or written agreements
      and understandings relating to the subject matter hereof. No statement,
      representation, warranty, covenant or agreement of any kind not expressly set
      forth in this Agreement will affect, or be used to interpret, change or
      restrict, the express terms and provisions of this Agreement.

     

    (c) Modifications
      and Amendments.
      The
      terms and provisions of this Agreement may be modified or amended only by
      written agreement executed by the parties hereto.  The
      Company and Executive agree that they will negotiate in good faith and jointly
      execute an amendment to modify this Agreement to the extent necessary to comply
      with the requirements of Code Section 409A, or any successor statute, regulation
      and guidance thereto, provided, however, no such amendment will increase the
      financial obligations of the Company to Executive.

     

    (d) Waivers
      and Consents.
      The
      terms and provisions of this Agreement may be waived, or consent for the
      departure therefrom granted, only by written document executed by the party
      entitled to the benefits of such terms or provisions. No such waiver or consent
      will be deemed to be or will constitute a waiver or consent with respect to
      any
      other terms or provisions of this Agreement, whether or not similar. Each such
      waiver or consent will be effective only in the specific instance and for the
      purpose for which it was given, and will not constitute a continuing waiver
      or
      consent.

     

    (e) Successors
      and Assigns; Third Party Beneficiaries.
      All
      statements, representations, warranties, covenants and agreements in this
      Agreement will be binding on the parties hereto and will inure to the benefit
      of
      the respective successors, heirs, executors and permitted assigns of each party
      hereto. Any such successor of the Company will be deemed substituted for the
      Company under the terms of this Agreement for all purposes. For this purpose,
      “successor” means any person, firm, corporation or other business entity which
      at any time, whether by purchase, merger or otherwise, directly or indirectly
      acquires all or substantially all of the assets or business of the Company.
      Executive may not assign any of Executive’s rights to compensation or other
      benefits under this Agreement, except by will or the laws of descent and
      distribution. Any other attempted assignment, transfer, conveyance or other
      disposition of Executive’s right to compensation or other benefits will be null
      and void. Nothing in this Agreement will be construed to create any rights
      or
      obligations except among the parties hereto, and (except for Executive’s estate
      or other legal representative), no person or entity will be regarded as a
      third-party beneficiary of this Agreement.

     

    (f) Governing
      Law.
      This
      Agreement and the rights and obligations of the parties hereunder will be
      construed in accordance with and governed by the law of the State of Nevada,
      without giving effect to the conflict of law principles thereof.

     

    (g) Jurisdiction,
      Venue.
      Any
      legal action or proceeding with respect to this Agreement will be brought in
      the
      Federal or state courts of Washoe County, Nevada with competent subject matter
      jurisdiction. By execution and delivery of this Agreement, each of the parties
      hereto accepts for itself and in respect of its property, generally and
      unconditionally, the exclusive jurisdiction of the aforesaid courts.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (h) Severability.
      The
      parties intend this Agreement to be enforced as written. However, if
      any
      court of competent jurisdiction determines any provision, or any portion
      thereof, of this Agreement to be unenforceable or invalid, then such provision
      shall be deemed limited to the extent that such court deems it valid or
      enforceable and the remaining provisions of this Agreement shall nevertheless
      remain in full force and effect.

     

    (i) Headings
      and Captions.
      The
      headings and captions of the various subdivisions of this Agreement are for
      convenience of reference only and will in no way modify or affect the meaning
      or
      construction of any of the terms or provisions hereof.

     

    (j) No
      Waiver of Rights, Powers and Remedies.
      No
      failure or delay by a party hereto in exercising any right, power or remedy
      under this Agreement, and no course of dealing between the parties hereto,
      will
      operate as a waiver of any such right, power or remedy of the party. No single
      or partial exercise of any right, power or remedy under this Agreement by a
      party hereto, nor any abandonment or discontinuance of steps to enforce any
      such
      right, power or remedy, will preclude such party from any other or further
      exercise thereof or the exercise of any other right, power or remedy hereunder.
      The election of any remedy by a party hereto will not constitute a waiver of
      the
      right of such party to pursue other available remedies. No notice to or demand
      on a party not expressly required under this Agreement will entitle the party
      receiving such notice or demand to any other or further notice or demand in
      similar or other circumstances or constitute a waiver of the rights of the
      party
      giving such notice or demand to any other or further action in any circumstances
      without such notice or demand.

     

    (k) Expenses.
      Each
      party shall bear its own fees and expenses incurred in connection with the
      preparation, negotiation, execution and delivery of this Agreement. The
      prevailing party in any legal proceeding to enforce this Agreement shall be
      entitled to legal fees and costs reasonably incurred. 

     

    (l) Deductions
      and Withdrawals.
      The
      Company will deduct from each payment to be made to Executive under this
      Agreement such amounts, if any, required to be deducted or withheld under
      applicable law or under any employee benefit plan in which Executive
      participates.

     

    (m) Tax
      Consequences.
      Executive hereby acknowledges and agrees that the Company makes no
      representations or warranties regarding the tax treatment or tax consequences
      of
      any compensation, benefits or other payments under the Agreement, including,
      without limitation, by operation of Code Section 409A, or any successor statute,
      regulation and guidance thereto.

     

    (n) Counterparts.
      This
      Agreement may be executed in two or more counterparts, and by different parties
      hereto on separate counterparts, each of which will be deemed an original,
      but
      all of which together will constitute one and the same instrument. This
      Agreement may be delivered by facsimile, and facsimile signatures shall be
      treated as original signatures for all applicable purposes.

     

    (o) Opportunity
      to Review.
      Executive hereby acknowledges that Executive has had adequate opportunity to
      review these terms and conditions and to reflect upon and consider the terms
      and
      conditions of this Agreement, and that Executive has had the opportunity to
      consult with counsel of Executive’s
      own
      choosing regarding such terms.  Executive
      further acknowledges that Executive fully understands the terms of this
      Agreement and has voluntarily executed this Agreement.

     

     

    8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]