Document:

Unassociated Document

     

    Exhibit 10.1

     

     

    GENERAL
TERMS

    

     

    

     

    ACN
PACIFIC PTY LTD

    ABN
85 108 535 708

    Level 11,
1 Pacific Hwy, North Sydney

    Australia

    

    

    DELTATHREE,
INC.

    419
Lafayette Street

    New York,
N.Y. 10003

    U.S.A.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF
CONTENTS

     

    
      
        
          
            
              
                	
                        1

                      	 	
                        AGREEMENT
      TO SUPPLY THE SERVICE

                      	 	
                        3

                      
	
                        2

                      	 	
                        THE
      SERVICE

                      	 	
                        3

                      
	
                        3

                      	 	
                        EQUIPMENT

                      	 	
                        3

                      
	
                        4

                      	 	
                        MAINTENANCE

                      	 	
                        4

                      
	
                        5

                      	 	
                        SERVICE
      CHARGES

                      	 	
                        4

                      
	
                        6

                      	 	
                        INVOICES,
      PAYMENT AND ADDITIONAL CHARGES

                      	 	
                        4

                      
	
                        7

                      	 	
                        BILLING
      DISPUTES

                      	 	
                        5

                      
	
                        8

                      	 	
                        TAXES

                      	 	
                        6

                      
	
                        9

                      	 	
                        NON-EXCLUSIVE
      RELATIONSHIP

                      	 	
                        6

                      
	
                        10

                      	 	
                        PRIVACY
      AND PERSONAL INFORMATION

                      	 	
                        7

                      
	
                        11

                      	 	
                        COMPLIANCE
      WITH LAWS OR REGULATOR DIRECTIONS

                      	 	
                        7

                      
	
                        12

                      	 	
                        YOUR
      RIGHT TO TERMINATE

                      	 	
                        9

                      
	
                        13

                      	 	
                        DELTATHREE's
      RIGHT TO SUSPEND OR TERMINATE

                      	 	
                        9

                      
	
                        14

                      	 	
                        CONSEQUENCES
      OF SUSPENSION

                      	 	
                        10

                      
	
                        15

                      	 	
                        CONSEQUENCES
      OF TERMINATION (TRANSITION)

                      	 	
                        11

                      
	
                        16

                      	 	
                        EACH
      PARTY’S RIGHTS AGAINST THE OTHER

                      	 	
                        12

                      
	
                        17

                      	 	
                        END
      USERS LIABILITY

                      	 	
                        13

                      
	
                        18

                      	 	
                        INTELLECTUAL
      PROPERTY

                      	 	
                        13

                      
	
                        19

                      	 	
                        CONFIDENTIALITY

                      	 	
                        15

                      
	
                        20

                      	 	
                        INTERVENING
      EVENTS

                      	 	
                        16

                      
	
                        21

                      	 	
                        PUBLIC
      ADDRESSING IDENTIFIERS

                      	 	
                        16

                      
	
                        22

                      	 	
                        ASSIGNMENT,
      SUBCONTRACTING AND TRANSFER

                      	 	
                        16

                      
	
                        23

                      	 	
                        DISPUTES

                      	 	
                        17

                      
	
                        24

                      	 	
                        RECORDS
      & AUDITS

                      	 	
                        17

                      
	
                        25

                      	 	
                        PUBLICITY

                      	 	
                        18

                      
	
                        26

                      	 	
                        NO
      SOLICITATION

                      	 	
                        18

                      
	
                        27

                      	 	
                        GENERAL

                      	 	
                        19

                      
	
                        28

                      	 	
                        DICTIONARY
      TO GENERAL TERMS

                      	 	
                        22

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              1

            	
              AGREEMENT
      TO SUPPLY THE SERVICE

            

    

     

    
      	
              1.1

            	
              Subject
      to the terms and conditions set forth in the Agreement, deltathree will
      provide you each Service or Individual Service for its Committed
      Term.

            

    

     

    
      	
              1.2

            	
              The
      Agreement comprises:

            

    

     

    
      	
               
      

            	
              (a)

            	
              each
      relevant Service Description, including Pricing
  Schedule;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      General Terms;

            

    

     

    
      	
               
      

            	
              (c)

            	
              each
      relevant Service Level Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              each
      Order;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Operations Manual; and

            

    

     

    
      	
               
      

            	
              (f)

            	
              any
      other document the parties hereto shall agree to from time to time and
      which they agree shall form a part of the
  Agreement.

            

    

     

    
      	
              1.3

            	
              If
      any of the documents listed in clause 1.2 above is inconsistent with one
      or more of the others, then the terms and conditions of the documents will
      prevail in the order set out in clause 1.2 above, unless it is
      specifically agreed otherwise in writing referencing this clause
      1.3.

            

    

     

    
      	
              2

            	
              THE
      SERVICE

            

    

     

    
      	
              2.1

            	
              deltathree
      will supply each Service from its Service Start
  Date.

            

    

     

    
      	
              2.2

            	
              Each
      party will reasonably co-operate with the other party to allow deltathree
      to establish and supply each Service to you safely and
      efficiently.  This includes following deltathree’s reasonable
      requests to provide deltathree’s Personnel with safe and prompt access to
      the Premises and your Personnel, equipment, data and
      information.

            

    

     

    
      	
              3

            	
              EQUIPMENT

            

    

     

    
      	
              3.1

            	
              You
      will supply to End Users (at your sole expense) the equipment at their
      premises which they require to use the Service (“CPE”).

            

    

     

    
      	
              3.2

            	
              You
      will provide deltathree with working samples of the CPE and all reasonably
      requested technical information regarding the CPE and deltathree will
      ensure that its Service is compatible with and provides full functionality
      using the CPE, subject to clause 3.3
below.

            

    

     

    
      	
              3.3

            	
              Where
      any incompatibility or lack of functionality of the Service arises from a
      fault with the CPE or the CPE not functioning in accordance with the CPE
      samples and CPE technical information provided to deltathree, then
      deltathree is not responsible or liable for such incompatibility or lack
      of functionality.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              4

            	
              MAINTENANCE

            

    

     

    
      	
              4.1

            	
              deltathree
      may conduct regularly scheduled maintenance and emergency maintenance on
      the deltathree Network.  deltathree will use all reasonable
      endeavours to conduct regularly scheduled maintenance outside normal
      business hours (in the time zones in which the End Users are located) but
      may not always be able to do so.  When conducting regularly
      scheduled maintenance deltathree will use reasonable endeavours to provide
      you with 7 Business Days’ notice. D3 will notify you of emergency
      maintenance as soon as practicable.

            

    

     

    
      	
              5

            	
              SERVICE
      CHARGES

            

    

     

    
      	
              5.1

            	
              You
      will pay the charges for each Service as set out in the Agreement without
      any withholding (except as contemplated by clauses 7 and 8 below),
      deduction or set-off and in accordance with any applicable provisions of
      the Service Description.

            

    

     

    
      	
              5.2

            	
              deltathree
      may charge you an additional amount to service, modify, repair or replace
      a Service or any equipment as a result of an Excluded Event (except an
      Intervening Event).

            

    

     

    
      	
              5.3

            	
              If
      agreed between the parties, deltathree may charge you an additional amount
      for installation, maintenance or other services which you request
      deltathree to provide outside normal business hours (in the time zones in
      which the End Users are located) or additional amount for
      installation.

            

    

     

    
      	
              5.4

            	
              deltathree
      may round up any charge to the nearest
cent.

            

    

     

    
      	
              6

            	
              INVOICES,
      PAYMENT AND ADDITIONAL CHARGES

            

    

     

    
      	
              6.1

            	
              deltathree
      may charge you:

            

    

     

    
      	
               
      

            	
              (a)

            	
              for
      any equipment you purchase from deltathree or its Personnel, on or after
      delivery;

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      any installation charges, prior to or after
  installation;

            

    

     

    
      	
               
      

            	
              (c)

            	
              for
      variable charges, in arrears;

            

    

     

    
      	
               
      

            	
              (d)

            	
              for
      recurring or fixed charges, in arrears;
and

            

    

     

    
      	
               
      

            	
              (e)

            	
              otherwise
      as set out in the Agreement.

            

    

     

    
      	
              6.2

            	
              deltathree’s
      billing period is monthly except where otherwise provided under the
      Agreement.

            

    

     

    
      	
              6.3

            	
              Subject
      to clause 7 (Billing Disputes), you will pay each invoice within 30 days
      from the date of the invoice.

            

    

     

    
      	
              6.4

            	
              deltathree
      will endeavour to include on your invoice all charges for the relevant
      billing period.  As this may not always occur, deltathree may
      include unbilled charges in any later invoice(s) issued up to 90 days
      after the date the unbilled charge
accrued.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              6.5

            	
              If
      you do not pay any amount invoiced by 30 days from the date of invoice
      (except any amount which is validly disputed under clause 7) the amount
      due under that invoice shall accrue interest at a rate of 2% per annum
      above the Reserve Bank of Australia target cash rate from time to time,
      calculated on the daily balance of the unpaid amount from the due date
      until the date of payment in full.  In the event that such rate
      exceeds the maximum default rate permitted by applicable law, the default
      rate shall be at the highest rate permitted by applicable law. This is an
      independent obligation which applies before and after
      judgment.  You will also pay deltathree’s expenses in recovering
      payment from you.

            

    

     

    
      	
              6.6

            	
              Neither
      you nor deltathree shall have the right to defer, adjust, set off or
      withhold any payment due under these General
  Terms.

            

    

     

    
      	
              6.7

            	
              You
      will pay all charges incurred in respect of each Service in Australian
      Dollars, by direct transfer into the bank account or accounts advised in
      writing by deltathree from time to time. Where deltathree elects a bank
      account outside Australia, deltathree must ensure that such account is
      able to accept Australian Dollars and deltathree shall be responsible for
      all fees, charges and taxes associated with the transfer of the funds to
      the overseas account as well as any currency conversion charges should
      deltathree, or deltathree’s bank, convert Australian Dollars to another
      currency.

            

    

     

    
      	
              7

            	
              BILLING
      DISPUTES

            

    

     

    
      	
              7.1

            	
              You
      may dispute an amount invoiced by deltathree but only if you do so in
      accordance with this clause 7.

            

    

     

    
      	
              7.2

            	
              Except
      to the extent you dispute particular charges and raise a valid billing
      dispute as to an invoice received from deltathree, you will be deemed to
      have agreed that such invoice is fully accurate, valid and payable (and
      you must pay the undisputed amount included in the invoice in accordance
      with clause 6.3 above).

            

    

     

    
      	
              7.3

            	
              To
      raise a valid billing dispute, you
must:

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      an agreed procedure is set out in the deltathree Billing Dispute
      Resolution Process document, follow that procedure;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              do
      so within 190 days of  the date of the relevant deltathree
      invoice, except in the case of fixed recurring charges where you must do
      so within 60 days of  the date of the relevant deltathree
      invoice.

            

    

     

    
      	
              7.4

            	
              You
      may only commence or continue legal proceedings alleging that any charge
      or invoice is incorrect if you have acted in accordance with clause 7.3
      and legal proceedings have been properly issued and served on deltathree
      within 24 months of the date of the relevant
  invoice.

            

    

     

    
      	
              7.5

            	
              If,
      after a billing dispute is concluded you are to pay an amount to
      deltathree, then you must pay that amount no later than the date (“Payment Date”) which is
      30 days after determination of the dispute.  If you do not do
      so, deltathree may charge you interest on the relevant amount in
      accordance with clause 6.7 from the Payment
  Date.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              7.6

            	
              If,
      after a billing dispute is concluded deltathree is to pay an amount to you
      then it will do so by crediting you with that amount on its next and
      subsequent invoices until the full amount has been credited or, if the
      contract has terminated for any reason, no later than the Payment
      Date.

            

    

     

    
      	
              8

            	
              TAXES

            

    

     

    
      	
              8.1

            	
              Charges
      specified in the Agreement do not include any GST.  You will pay
      deltathree an additional amount equal to the GST payable on the charges,
      any non-monetary consideration or on a supply or any component of supply
      made or to be made in connection with a Service or the
      charges.

            

    

     

    
      	
              8.2

            	
              In
      some cases the Agreement may specify a charge followed by another amount
      in parentheses or as 'without GST' and 'with GST'.  In those
      cases, the specified charge or 'without GST' amount is exclusive of GST
      and the amount in parentheses or specified as 'with GST'
    is:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      charge inclusive of GST at the rate in effect at the date of the
      Agreement; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              included
      by way of information only, and its inclusion does not limit your
      obligation under clause 8.1 to pay the GST exclusive charge together with
      an additional amount equal to the GST at the rate applicable from time to
      time.

            

    

     

    
      	
              8.3

            	
              If
      you are required by law to deduct or withhold Taxes from a payment to
      deltathree, then you may make those deductions or withholdings (or
      both).  However, you will give deltathree a receipt for each
      payment and you will increase your payment to deltathree by the amount
      necessary to ensure deltathree receives the full amount which it would
      have received if no deduction or withholding had been
  made.

            

    

     

    
      	
              8.4

            	
              If
      clause 8.3 applies, then deltathree will on request by you apply for any
      credit or rebate to which it may be entitled in connection with the
      deduction or withheld Tax.  deltathree will refund to you any
      credit or rebate received, up to the amount of the increase made by you
      under clause 8.3.

            

    

     

    
      	
              8.5

            	
              deltathree
      will ensure it is properly registered for GST and will issue you with a
      valid tax invoice in respect of each taxable
  supply.

            

    

     

    
      	
              8.6

            	
              Terms
      used in this clause 8 which are defined in the A New Tax System (Goods and
      Services Tax) Act 1999 (Cth) have the meaning given to them in that
      Act.

            

    

     

    
      	
              9

            	
              NON-EXCLUSIVE
      RELATIONSHIP

            

    

     

    
      	
              9.1

            	
              deltathree
      and you agree that the relationship between the parties is non-exclusive
      and you may obtain Services and Individual Services from suppliers other
      than deltathree and deltathree may provide Services and Individual
      Services to purchasers other than ACN
Pacific.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              10

            	
              PRIVACY
      AND PERSONAL INFORMATION

            

    

     

    
      	
              10.1

            	
              deltathree
      may collect, use and disclose Personal Information provided by you for
      purposes relating to the supply of a Service described in the Agreement,
      or for purposes that would be reasonably expected as part of the supply of
      the Service.

            

    

     

    
      	
              10.2

            	
              deltathree
      must not disclose Personal Information provided by you to any person other
      than its Personnel, except deltathree may disclose Personal Information to
      deltathree’s suppliers (so that deltathree can supply a Service) or as
      permitted by the Privacy Laws or other
laws.

            

    

     

    
      	
              10.3

            	
              You
      must not disclose Personal Information provided by deltathree to any
      person other than your Personnel, except as permitted by the Privacy Laws
      or other laws.

            

    

     

    
      	
              10.4

            	
              Both
      parties must take all reasonable steps to protect Personal Information
      provided by the other party from misuse and loss and from unauthorised
      access, modification or disclosure.

            

    

     

    
      	
              10.5

            	
              Both
      parties agree to handle Personal Information obtained from the other party
      in accordance with the Privacy
Laws.

            

    

     

    
      	
              10.6

            	
              In
      your privacy collection statements you must notify the natural persons
      from whom you collect Personal Information that their Personal Information
      may be provided to your suppliers for the purpose of supplying a
      Service.

            

    

     

    
      	
              10.7

            	
              For
      the purposes of this clause a reference to a “party” or “supplier”
      includes its agents and
contractors.

            

    

     

    
      	
              11

            	
              COMPLIANCE
      WITH LAWS OR REGULATOR DIRECTIONS

            

    

     

    
      	
              11.1

            	
              deltathree
      and you will comply with all applicable federal, state, and local
      government rules which have the force of law, including, without
      limitation, all statutes, laws, ordinances and regulations, and all other
      laws of any other jurisdiction applicable to the performance of such
      party’s obligations under this Agreement (“Laws”) in connection
      with the exercise of its rights and performance of its obligations under
      this Agreement.

            

    

     

    
      	
              11.2

            	
              You
      are solely responsible for:

            

    

     

    
      	
               
      

            	
              (a)

            	
              ensuring
      you have all necessary consents, licences and authorisations to resupply
      each Service to End Users, including consents and authorisations from End
      Users, Suppliers and other carriage service providers;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              informing
      your End Users that, where a Service is a Carriage Service, deltathree may
      be required to intercept communications over the Service and may also
      monitor your usage of the Service and communications sent over
      it.

            

    

     

    
      	
              11.3

            	
              deltathree
      is solely responsible for:

            

    

     

    
      	
               
      

            	
              (a)

            	
              ensuring
      it has all necessary consents, licences and authorisations to supply each
      Service to you, including consents and authorisations from Regulators,
      Suppliers and other carriage service
providers;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              ensuring
      that, where a Service is a carriage service, deltathree is able to
      intercept and monitor communications over the Service where required by a
      law enforcement agency; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              ensuring
      that it and each Service it supplies complies with all relevant Laws and
      relevant industry codes (whether registered with a Regulator or not)
      (“Industry
      Codes”), the directions of a Regulator and other regulatory
      instruments.

            

    

     

    
      	
              11.4

            	
              deltathree
      acknowledges, without representing or warranting, that it is a carriage
      service provider under the Telecommunications Act
      1997 and, in certain instances, you rely on deltathree in order to
      comply with Laws and Industry Codes, and agrees that (except as you
      expressly instruct) it shall not commit any act or omission that places
      you in violation of any Law or Industry
Code.

            

    

     

    
      	
              11.5

            	
              In
      using a Service, you and deltathree will comply with directions of a
      Regulator and each party will use its best efforts to assist the other
      party in complying with directions of a
  Regulator.

            

    

     

    
      	
              11.6

            	
              It
      is a condition of this Agreement that neither you nor deltathree will use,
      nor attempt to use, a Service and you will use all reasonable endeavours
      to prevent your End Users using or attempting to use, a
      Service:

            

    

     

    
      	
               
      

            	
              (a)

            	
              to
      violate any Law or to infringe another person’s
  rights;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      expose either party to liability;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      transmit, publish or communicate material which is defamatory, offensive,
      abusive, indecent, menacing or unwanted;
or

            

    

     

    
      	
               
      

            	
              (d)

            	
              in
      any way which damages, interferes with or Interrupts the Service, the
      deltathree Network or a Supplier
Network.

            

    

     

    
      	
              11.7

            	
              deltathree
      may ask you to stop, or ask you to stop your End-Users, acting or failing
      to act in a manner which deltathree reasonably believes is contrary to
      clauses 11.2 or 11.6.  You will as soon as reasonably
      practicable (but in any case within two Business Days) comply with any
      such request.  If you do not, then deltathree may take any steps
      reasonably necessary to ensure compliance with clauses 11.2 or 11.6 or the
      request.

            

    

     

    
      	
              11.8

            	
              Notwithstanding
      anything to the contrary in this Agreement, if a material breach of this
      agreement by either party relates to compliance with laws or Regulator
      directions then both parties will mutually review the breach and seek
      commercially reasonable methods of overcoming the breach if possible. Both
      parties will then evaluate the options, and if there is a way to overcome
      the breach utilizing commercially reasonable methods, then (i) both
      parties will initiate such actions, and (ii) upon written agreement by the
      parties, an equitable adjustment for any delays and changes in scope or
      quality of services caused by such breach shall be made by the defaulting
      party if such change materially affects the time or quality of performance
      or the cost of the Services to be performed under this
      Agreement.  If the parties fail to cure such a material breach
      of Laws or Regulator directions within sixty (60) days after written
      notice of non-compliance, the non-defaulting party may terminate the
      Agreement or affected Service by providing written notice to the other
      party.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              12

            	
              YOUR
      RIGHT TO TERMINATE

            

    

     

    
      	
              12.1

            	
              You
      may, without liability, terminate the Agreement or one or more Services or
      Individual Services:

            

    

     

    
      	
               
      

            	
              (a)

            	
              at
      any time by giving at least 120 days' notice to
  deltathree;

            

    

     

    
      	
               
      

            	
              (b)

            	
              by
      giving 30 days notice in the event that you and deltathree cease to be
      Related Corporations;

            

    

     

    
      	
               
      

            	
              (c)

            	
              immediately
      by giving deltathree notice if:

            

    

     

    
      	
               
      

            	
              (i)

            	
              except
      as set forth in clause 11.8, deltathree breaches a fundamental term of the
      Agreement and that breach is not capable of remedy or that breach is
      capable of remedy and deltathree does not remedy that breach as soon as
      possible but in all circumstances no later than 14 days after you give
      deltathree notice requiring the breach to be
  remedied;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              deltathree
      suffers an Insolvency Event;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              that
      Service or Individual Service which is to be terminated is not being
      supplied and that non-supply has continued for more than 10 Business Days
      as a result of an Intervening Event having occurred;
  or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              that
      Individual Service which is to be terminated is no longer required because
      of the termination or cancellation of an End User
  Service.

            

    

     

    
      	
              13

            	
              DELTATHREE's
      RIGHT TO SUSPEND OR TERMINATE

            

    

     

    
      	
              13.1

            	
              deltathree
      may, without liability, Suspend a Service or one or more Individual
      Services:

            

    

     

    
      	
               
      

            	
              (a)

            	
              if
      deltathree reasonably believes that you or any other person (except
      deltathree) has committed or is about to imminently commit fraud in
      connection with either the Service or the Individual Service and you fail
      to take steps (to deltathree's satisfaction) to ensure that fraud does not
      continue or recur within 48 hours after deltathree gives you notice
      requiring you to do so;

            

    

     

    
      	
               
      

            	
              (b)

            	
              by
      giving you notice to the extent necessary for deltathree to comply with an
      order, instruction or request of a Regulator, an emergency services
      organisation or any other competent
authority;

            

    

     

    
      	
               
      

            	
              (c)

            	
              immediately
      by giving you notice if you have not complied with a notice from
      deltathree issued in accordance with clause 11.7 relating to that Service
      or Individual Service;

            

    

     

    
      	
               
      

            	
              (d)

            	
              immediately
      to the extent the Service is affected by an Emergency;
  or

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (e)

            	
              immediately
      to the extent it is necessary to allow deltathree or a Supplier to repair,
      maintain or service any part of the deltathree Network or a Supplier
      Network used to supply the Service or the Individual
    Service.

            

    

     

    
      	
              13.2

            	
              deltathree
      may, without liability, terminate the Agreement or Suspend or terminate
      one or more Services or Individual
Services:

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      any time by giving at least 120 days' notice to
  you;

            

    

     

    
      	
               
      

            	
              (b)

            	
              immediately
      if any amount owing to deltathree is not paid by its due date (as
      specified in the Agreement, the relevant invoice or as notified by
      deltathree), deltathree gives you notice requiring payment of that amount
      (which deltathree may not give in respect of an amount which is validly
      disputed in accordance with clause 7 (Billing Disputes) until after
      deltathree has determined the billing dispute) and you fail to pay that
      amount in full within 30 days after deltathree gives you that
      notice;

            

    

     

    
      	
               
      

            	
              (c)

            	
              except
      as set forth in clause 11.8, you breach clause 11.2 or any other
      fundamental term of the Agreement (other than a breach which separately
      gives rise to rights under this clause 13.2) and that breach is not
      capable of remedy, or

            

    

     

    
      	
               
      

            	
              (d)

            	
              except
      as set forth in clause 11.8, you breach clause 11.2 or any other
      fundamental term of the Agreement (other than a breach which separately
      gives rise to rights under this clause 13.2), that breach is capable of
      remedy and you do not remedy that breach as soon as possible but in all
      circumstances no later than 14 days after deltathree gives you notice
      requiring the breach to be
remedied;

            

    

     

    
      	
               
      

            	
              (e)

            	
              immediately
      if you suffer an Insolvency Event;

            

    

     

    
      	
               
      

            	
              (f)

            	
              immediately
      if that Individual Service which is to be terminated is not being supplied
      and that non-supply has continued for more than 10 Business Days as a
      result of an Intervening Event having occurred;
  or

            

    

     

    
      	
               
      

            	
              (g)

            	
              if
      deltathree is otherwise entitled to do so under this
      Agreement.

            

    

     

    
      	
              14

            	
              CONSEQUENCES
      OF SUSPENSION

            

    

     

    
      	
              14.1

            	
              If
      a Service or an Individual Service is Suspended in accordance with the
      Agreement, then you will not be liable to pay usage based charges for the
      Service or the Individual Service while it is Suspended, but you will have
      to pay any other charges arising during suspension if the Service or
      Individual Service was Suspended as a result of a breach of the Agreement
      by you or as a result of the occurrence of any of the events set forth in
      clauses 13.1 (a) or (c) or clauses 13.2(b), (c) or
  (d).

            

    

     

    
      	
              14.2

            	
              If
      deltathree Suspends or Downgrades a Service or an Individual Service under
      clause 13.1 (d) and such suspension or Downgrade is not due to an
      Intervening Event, the period during which the Service or an Individual
      Service is Suspended will count towards outage time used in calculating
      service level rebates (if any) applicable to the affected Service or
      Individual Service.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              14.3

            	
              deltathree
      will stop the suspension of a Service or Individual Service as soon as
      reasonably possible after the reason for that suspension has stopped in
      the reasonable opinion of
deltathree.

            

    

     

    
      	
              15

            	
              CONSEQUENCES
      OF TERMINATION (TRANSITION)

            

    

     

    
      	
              15.1

            	
              On
      Termination you will retain all rights to the affected End Users and Delta
      3 will have no rights in relation to the affected End Users except in
      accordance with the transition provisions in this clause
    15.

            

    

     

    
      	
              15.2

            	
              On
      Termination deltathree must not, except in accordance with the transition
      provisions in this clause 15, solicit any End User in Australia or New
      Zealand for a period of 2 years. The term “solicit” shall not be deemed to
      include generalized advertising or marketing by deltathree for customer
      through mass market media advertisements or other non-targeted
      means.

            

    

     

    
      	
              15.3

            	
              Notice
      of Termination of the Agreement or all Services provided under the
      Agreement by either party will commence a period (the “Transition Period”)
      during which the parties will cooperate in transitioning all End Users to
      replacement services provided by you or your designee (the “Replacement
      Service”).  deltathree during the Transition Period will
      create a configuration file for each model of CPE then in use by End
      Users, which configuration file will point such CPE to the Replacement
      Service and grant the Replacement Service full access to and control over
      such CPE, and will deploy such configuration files remotely to End Users
      over the course of the Transition Period in accordance with the schedule
      reasonably established by you.  As quickly as reasonably
      practicable during the Transition Period, you will arrange for a
      Replacement Service, arrange to port End User phone numbers to the
      Replacement Service and otherwise transition the End Users to the
      Replacement Service.  The Transition Period shall continue until
      the earlier of the date on which all End Users have been removed from the
      applicable Service and the date fourteen (14) months following the notice
      of Termination.  This Agreement, including your obligation to
      pay fees and charges pursuant to this Agreement, will remain in effect
      throughout the Transition Period.

            

    

     

    
      	
              15.4

            	
              At
      any time and from time to time during a Transition Period, on receipt of a
      request from you deltathree will, as soon as possible and in any case
      within 72 Business Hours, provide an up to date copy of all data held by
      deltathree in relation to the End Users in a format and manner reasonably
      specified by you plus any other information reasonably requested by you
      which will assist in the transition of the End Users to Replacement
      Services.

            

    

     

    
      	
              15.5

            	
              Once
      an End User has been successfully transitioned to a Replacement Service,
      deltathree must, to the extent permitted by law, delete and permanently
      remove all copies to data relating to that End User which is in
      deltathree’s custody and control.

            

    

     

    
      	
              15.6

            	
              On
      Termination

            

    

     

    
      	
               
      

            	
              (a)

            	
              of
      the Agreement or all Services provided under the Agreement for any reason,
      each party will (on request by the other party) immediately return or
      destroy the other person’s Confidential Information, except to the extent
      that it is required by law to retain
it;

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              of
      the Agreement for any reason, each person’s accrued rights and obligations
      are not affected and the parts of the Agreement which are by their nature
      intended to survive Termination of the Agreement will do
    so.

            

    

     

    
      	
              16

            	
              EACH
      PARTY’S RIGHTS AGAINST THE OTHER

            

    

     

    
      	
              16.1

            	
              Each
      party accepts liability to the other in connection with the Individual
      Services, the Services and the Agreement, but only to the extent provided
      in this clause 16.  Each party excludes any liability (including
      in negligence) it might otherwise have to the other in connection with
      this Agreement, the Services or any Individual Service to the extent that
      such liability is not expressly accepted under this clause
    16.

            

    

     

    
      	
              16.2

            	
              Each
      party agrees to indemnify, defend and hold the other party harmless for
      all Loss to the other party arising from personal injury to the other
      party’s Personnel to the extent it is caused directly by the negligence of
      the first party in connection with the Agreement.  The
      limitation in clause 16.8 does not apply to this
  clause.

            

    

     

    
      	
              16.3

            	
              Each
      party agrees to indemnify, defend and hold the other party harmless for
      all Loss (up to the value of the damage to the damaged property) arising
      from damage to the other party’s physical property to the extent it is
      caused directly by the negligence of the first party in connection with
      the Agreement.  The limitation in clause 16.8 does not apply to
      this clause.

            

    

     

    
      	
              16.4

            	
              Each
      party’s liability for the other party’s Loss (including arising as a
      result of negligence) under clause 16.2 or 16.3 or, except where clause 17
      applies, otherwise in connection with the Individual Services, the
      Services or the Agreement is reduced to the extent
  that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              a
      Loss suffered or incurred by the other party could have been avoided or
      mitigated by reasonable action by that party;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              acts
      or omissions of the other party or its Personnel cause or contribute to
      that Loss.

            

    

     

    
      	
              16.5

            	
              deltathree
      accepts liability to you under the Trade Practices Act and other laws
      where not to accept such liability would be illegal or would make any part
      of this clause 16 void or unenforceable.  Otherwise, deltathree
      disclaims and excludes all conditions and warranties implied into the
      Agreement and limits its liability for any non-excludable conditions and
      warranties, where permitted by law to do so, to (at deltathree’s option)
      repairing or replacing the relevant goods, resupplying the relevant or
      equivalent services or, in either case, paying you the cost of doing
      so.

            

    

     

    
      	
              16.6

            	
              deltathree
      accepts liability to you for Loss arising from Interruptions to Individual
      Services and the Services (including for Interruptions due to negligence)
      to the extent the Interruptions are not caused or contributed to by
      Excluded Events, but only:

            

    

     

    
      	
               
      

            	
              (a)

            	
              by
      crediting to you a service rebate, where one is specified in the relevant
      Service Level Agreement and validly claimed by you in accordance with the
      Agreement; or

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              if
      there is no service rebate so specified, by (at deltathree's election)
      repairing or replacing the relevant goods or resupplying any relevant or
      equivalent services which are capable of being resupplied, or in either
      case paying you the cost of doing
so.

            

    

     

    If
deltathree credits you with a service rebate, this is your sole remedy for
deltathree's acts or omissions leading up to the credit, except to the extent
clauses 16.2 and 16.3 apply.

     

    
      	
              16.7

            	
              Except
      for claims under clauses 16.2, 16.3, 17, 18, claims arising from a breach
      of clause 11.2 and obligations to pay outstanding charges, each party’s
      aggregate liability arising out of this Agreement to the other for Loss
      suffered or incurred in connection with the Individual Services, the
      Services or the Agreement is limited to the lesser of (i) the total
      amounts received by deltathree from you under this Agreement or (ii) AU $5
      million.

            

    

     

    
      	
              16.8

            	
              Except
      for claims under clauses 16.2, 16.3 and 17, claims arising from a breach
      of clause 11.2 and obligations to purchase a Service or Individual
      Services or pay outstanding charges, each party excludes any liability to
      the other for any Consequential Loss suffered or incurred in connection
      with the Individual Services, the Services or with the Agreement
      (including liability for
negligence).

            

    

     

    
      	
              16.9

            	
              In
      this clause 16 and clause 17, indemnities, limitations and exclusions in
      favour of a party are to be construed as indemnities, limitations and
      exclusions in favour of each Group Company of that
  party.

            

    

     

    
      	
              16.10

            	
              For
      the avoidance of doubt, the terms and conditions set forth in clauses 18.8
      and 18.9 apply to the indemnities given in this clause
  16.

            

    

     

    
      	
              17

            	
              END
      USERS LIABILITY

            

    

     

    
      	
              17.1

            	
              deltathree
      excludes any liability (including in negligence) to your End
      Users.  You agree to indemnify, defend and hold deltathree
      harmless against any Loss suffered or incurred by deltathree in connection
      with an End-User claim (including a claim based in negligence) in any way
      related to an Individual Service, the Services or the
      Agreement.

            

    

     

    
      	
              17.2

            	
              For
      the avoidance of doubt, the terms and conditions set forth in clauses 18.8
      and 18.9 apply to the indemnities given in this clause
  17.

            

    

     

    
      	
              18

            	
              INTELLECTUAL
      PROPERTY

            

    

     

    
      
        	
                18.1

              	
                deltathree
      may permit you to use deltathree Intellectual Property as part of a
      Service, as may be set forth in a Service Description.  This
      permission is subject to any conditions which deltathree may impose from
      time to time and will cease when the relevant Service or this Agreement is
      terminated.  You acknowledge and agree that you will not use
      deltathree Intellectual Property, except as set out in this Agreement,
      unless authorised to do so in writing by
  deltathree.

              

      

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              18.2

            	
              Except
      as specifically set out in this Agreement, neither party will obtain any
      interest in or to the other party's Intellectual Property Rights solely by
      access to or use of the same related to this
  Agreement.

            

    

     

    
      
        	
                18.3

              	
                Except
      as permitted in a Service Description, you
must:

              

      

    

     

    
      	
               
      

            	
              (a)

            	
              not
      grant a right to any third person, including an End User, to use any
      deltathree Intellectual Property;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              ensure
      that your End Users do not use or promote deltathree Intellectual
      Property, the trade marks or names of any other person in conjunction or
      association with the deltathree Intellectual Property without the prior
      written consent of deltathree.

            

    

     

    
      
        	
                18.4

              	
                You
      must not, whether by yourself, your directors, servants or agents, during
      the Committed Term of this Agreement or after its
    Termination:

              

      

    

     

    
      	
               
      

            	
              (a)

            	
              dispute
      deltathree’s, or any deltathree Related Corporations’, rights in or
      ownership of any  deltathree Intellectual
    Property;

            

    

     

    
      	
               
      

            	
              (b)

            	
              challenge
      the validity of a registration in the name of deltathree, or a Related
      Corporation of deltathree, of deltathree Intellectual Property;
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              challenge
      any application by deltathree or a Related Corporation of deltathree for
      registration of the deltathree Intellectual Property in classes other than
      those in which that the deltathree Intellectual Property is currently
      registered.

            

    

     

    
      
        	
                18.5

              	
                If
      you become aware of any possible infringement of deltathree Intellectual
      Property by you, an End User or any other third party, you must
      immediately advise deltathree and provide deltathree with all relevant
      details.

              

      

    

     

    
      
        	
                18.6

              	
                Subject
      to the terms of this Agreement, you agree to indemnify, defend and hold
      deltathree and any deltathree Group Company harmless for all Loss arising
      from any claim or proceeding by any person against any of those
      indemnified under this clause, where such Loss arose out of your breach of
      this clause 18 or an infringement, or an alleged infringement, of the
      Intellectual Property Rights of deltathree which occurred by or as a
      result of your use or enjoyment of the
Services.

              

      

    

     

    
      
        	
                18.7

              	
                deltathree
      agrees to defend, indemnify and hold you and any ACN Pacific Group Company
      harmless from and against any claim brought by a third party against you
      to the extent that the claim includes a claim of any infringement of any
      Intellectual Property Rights or other proprietary interest of such third
      party arising from or relating to the deltathree Services or your use,
      deployment or sale thereof as contemplated by this Agreement; and all
      Losses relating thereto excluding Consequential
      Loss.   Notwithstanding the foregoing, deltathree shall not
      be obligated or liable to defend or indemnify ACN Pacific or any ACN
      Pacific Group Company and shall not be responsible for any Loss related
      thereto under this Agreement to the extent that any such claim arises from
      (i) ACN Pacific’s or a third party’s modification of the deltathree
      Services without the express written consent of deltathree, (ii)
      combination of the deltathree Services with services, products, processes
      or materials not furnished, specified or approved by Deltathree; or (iii)
      deltathree’s use of or adherence to specifications or instructions
      furnished to deltathree by ACN Pacific to the extent that such
      specifications or instructions result in
  infringement.

              

      

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      
        	
                18.8

              	
                The
      indemnified party shall promptly notify the indemnifying party in writing
      of any claim for which the indemnifying party is responsible under this
      indemnity obligation (provided that the failure by the indemnified party
      to provide prompt written notice shall not relieve the indemnifying party
      from any of its obligations hereunder, except to the extent the
      indemnifying party is actually prejudiced
  thereby).

              

      

    

     

    
      
        	
                18.9

              	
                The
      indemnifying party shall assume, at its expense, the sole defence of the
      claim through counsel selected by the indemnifying party and shall keep
      the indemnified party fully informed as to the progress of such
      defence.  Upon reasonable request of the indemnifying party and
      at the indemnifying party’s expense, the indemnified party shall cooperate
      in the defence of the claim.  At its option and expense, the
      indemnified party may retain or use separate counsel to represent it,
      including in-house counsel.  The indemnifying party shall
      maintain control of the defence, except that if the settlement of a claim
      would adversely affect the indemnified party, the indemnifying party may
      settle the claim as to the indemnified party only with the indemnified
      party’s consent, which consent shall not be withheld or delayed
      unreasonably.  If the indemnified party is required to take any
      action to enforce its indemnity rights under this Agreement, or to assume
      the defence of any claim for which it is entitled to receive an indemnity
      under this Agreement because of the indemnifying party’s failure to
      promptly assume such defence, then the indemnified party may also recover
      from the indemnifying party any reasonable attorneys’ fees (including cost
      of in-house counsel at market rates for attorneys of similar experience)
      and other costs of enforcing its indemnity rights or assuming such
      defence.

              

      

    

     

    
      	
              19

            	
              CONFIDENTIALITY

            

    

     

    
      	
              19.1

            	
              deltathree
      and you each agree to keep confidential the other’s Confidential
      Information.

            

    

     

    
      	
              19.2

            	
              Subject
      to clause 19.3, deltathree and you will not use or disclose the other’s
      Confidential Information for any purpose, other than to the extent
      necessary to perform its obligations or exercise its rights under the
      Agreement.  This includes deltathree not disclosing any
      information relating to your End Users to deltathree Personnel, except to
      the extent that it is necessary to do so to supply a Service to you, or
      for you to resupply a Service to your End
Users.

            

    

     

    
      	
              19.3

            	
              For
      clarity, deltathree may refer to you as a customer of deltathree in
      deltathree press releases, or in deltathree marketing, sales or financial
      material or reports.

            

    

     

    
      	
              19.4

            	
              The
      obligations of confidentiality in this clause 19 do not apply to the
      extent disclosure is required by a court of competent jurisdiction or
      other governmental authority or as otherwise required by law or the
      listing rules of a stock exchange, a direction by government authority or
      a Regulator, or disclosure to professional advisors in connection with the
      Agreement.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              20

            	
              INTERVENING
      EVENTS

            

    

     

    
      	
              20.1

            	
              If
      an Intervening Event occurs which prevents you or deltathree (“Affected Person”) from
      performing any of its obligations (other than an obligation to pay money)
      under this Agreement, then the Affected Person will not be liable for
      failing to perform that obligation.

            

    

     

    
      	
              20.2

            	
              The
      Affected Person will notify the other person promptly of the Intervening
      Event and use its best efforts to resume performance in accordance with
      the Agreement as soon as reasonably possible.  The other
      person’s obligations continue during the Intervening
      Event.

            

    

     

    
      	
              21

            	
              PUBLIC
      ADDRESSING IDENTIFIERS

            

    

     

    
      	
              21.1

            	
              A
      Service may include one or more identifiers such as a telephone number, IP
      address or domain name (“Public Addressing
      Identifiers”).

            

    

     

    
      	
              21.2

            	
              You
      will comply with the requirements of any Regulator or other body which
      administers Public Addressing
Identifiers.

            

    

     

    
      	
              21.3

            	
              You
      acknowledge and agree that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              deltathree
      does not control the allocation of Public Addressing
      Identifiers;

            

    

     

    
      	
               
      

            	
              (b)

            	
              deltathree
      is not liable to you if deltathree is required to change any Public
      Addressing Identifier as a result of any direction given by a Regulator or
      other body which administers Public Addressing Identifiers;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              on
      Termination of a Service or any relevant Individual Service, your right to
      use any related Public Addressing Identifier may
  cease.

            

    

     

    
      	
              22

            	
              ASSIGNMENT,
      SUBCONTRACTING AND TRANSFER

            

    

     

    
      	
              22.1

            	
              To
      the extent they are assignable, either party may assign, delegate or
      otherwise transfer its rights under the Agreement so long as it has the
      other party’s prior written consent, which cannot be unreasonably delayed
      or withheld.

            

    

     

    
      	
              22.2

            	
              deltathree
      may perform any of its obligations under the Agreement by arranging for
      them to be performed by another person, including a Supplier or another
      deltathree Group Company.  If this occurs deltathree remains
      responsible for its obligations in accordance with this
      Agreement.

            

    

     

    
      	
              22.3

            	
              deltathree
      will continue supplying the Services even if any interest in you,
      including your business or any of your shares, is transferred to a third
      party (“Purchaser”) provided
      that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              you
      notify deltathree of the details of the proposed transfer, before entering
      into any binding arrangement to give effect to
  it;

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              you
      and/or the proposed Purchaser comply with any reasonable requests from
      deltathree for financial or operational information demonstrating the
      creditworthiness of the Purchaser;

            

    

     

    
      	
               
      

            	
              (c)

            	
              you
      and/or the proposed Purchaser enter into any necessary assignment or
      novation which deltathree reasonably requests in the circumstances, within
      30 days of that request.

            

    

     

    
      	
              23

            	
              DISPUTES

            

    

     

    
      	
              23.1

            	
              This
      clause applies to any dispute arising under the Agreement except billing
      disputes (which are handled in accordance with clause
  7).

            

    

     

    
      	
              23.2

            	
              A
      party must notify the other if it believes a dispute exists and that
      notice must provide details of the matter in
  dispute.

            

    

     

    
      	
              23.3

            	
              After
      receipt of the notice set out in clause 23.2, the parties will promptly
      seek to resolve the dispute by escalation within their respect
      organisations.

            

    

     

    
      	
              23.4

            	
              If
      the dispute has not been resolved within 20 Business Days after the notice
      in clause 23.2 is given either of the parties may refer the dispute for
      mediation to the Institute of Arbitrators and Mediators
      Australia.

            

    

     

    
      	
              23.5

            	
              Except
      where urgent interlocutory relief is required, a party may not commence
      legal proceedings in relation to any dispute unless it has complied with
      this clause 23 and the dispute has not been resolved within 50 Business
      Days after the notice in clause 23.2 is
given.

            

    

     

    
      	
              24

            	
              RECORDS
      & AUDITS

            

    

     

    
      	
              24.1

            	
              deltathree
      will maintain complete and accurate records related to the Services
      provided by deltathree to you, including records of all amounts billable
      to and payments made by you in accordance with generally accepted
      accounting principles applicable to U.S. corporations, uniformly and
      consistently applied in a format that will permit
  audit.

            

    

     

    
      	
              24.2

            	
              deltathree
      will retain such records and reasonable billing detail for a period of at
      least seven (7) years from the date of final payment for
      Services.

            

    

     

    
      	
              24.3

            	
              You
      may at your sole expense, upon reasonably prior written notice to
      deltathree, audit during normal business hours the charges invoiced to you
      relating to the Services, such audit to occur no more frequently than one
      time per fiscal quarter. deltathree shall have the right to exclude from
      such inspection any of information that is confidential or proprietary to
      a third party, in deltathree’s reasonable
  opinion.

            

    

     

    
      	
              24.4

            	
              deltathree
      will report minute usage and other relevant information, which shall be
      provided by deltathree to you, on a daily and monthly basis, as more
      particularly described in the relevant Service
  Schedule.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              25

            	
              PUBLICITY

            

    

     

    
      	
              25.1

            	
              Neither
      you nor deltathree shall provide copies of the Agreement, or otherwise
      disclose the terms of this Agreement, to any third party (other than the
      parties’ lawyers, accountants/auditors, and/or anyone the party is
      required to disclose it to by law) without the prior written consent of
      the other party, provided, that no consent will be required for either
      party to disclose the terms of this Agreement to a potential lender,
      investor, acquirer or other similar third party, or such third party’s
      lawyers, accountants and advisors, in connection with such third party’s
      due diligence review.

            

    

     

    
      	
              25.2

            	
              Except
      as required by law and except as provided in Clause 19.3 above, neither
      you nor deltathree shall not use the other party’s names or any language,
      pictures, trademarks, service marks or symbols which could imply its
      identity or endorsement in any:

            

    

     

    
      	
               
      

            	
              (a)

            	
              written,
      electronic or oral advertising or presentation;
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              brochure,
      newsletter, book, electronic database or other written matter of whatever
      nature, without such party’s prior written
  consent.

            

    

     

    Hereafter
the terms in subsections (a) and (b) of this clause 25.2 shall be collectively
referred to as “Publicity
Matters”.

     

    
      	
              25.3

            	
              The
      using party will submit to the other party for written approval, prior to
      publication, all Publicity Matters that mention or display such names,
      trademarks or service marks, or that contain any symbols, pictures or
      language from which a connection to said names or marks may be inferred or
      implied. Such written approval of Publicity Matters required by law shall
      not be unreasonably withheld or
delayed.

            

    

     

    
      	
              25.4

            	
              Notwithstanding
      the foregoing, a party may, without obtaining the other party’s prior
      written consent, include the other’s name, and a factual description of
      the work performed under the Agreement on employee bulletin boards and in
      internal business planning documents and, following the public issuance of
      the press release referred to in Clause 25.5 below, such information may
      be included in reports to stockholders, offering memoranda and other
      securities disclosure documents and whenever necessary to meet legal,
      accounting or regulatory
requirements.

            

    

     

    
      	
              25.5

            	
              Promptly
      following the execution of this Agreement by both you and deltathree,
      either party may issue a press release approved by the other party (such
      approval shall not be unreasonably withheld.  Any press release
      or public announcement shall be consistent with the need to restrict
      general public awareness of the role of your vendors in your branded
      service such as the Services.

            

    

     

    
      	
              26

            	
              NO
      SOLICITATION

            

    

     

    
      	
              26.1

            	
              During
      such time as deltathree provides Services to you and for a period of
      twelve (12) months following the Termination thereof, neither you nor
      deltathree will, directly or indirectly, solicit to employ or hire any
      employee of the other party that is directly or indirectly involved in the
      performance of the Services, without the prior written consent of the
      other party.  The term “solicit to employ” shall not be deemed
      to include generalized searches or hiring by either Party for employees
      through media advertisements, employment firms or
    otherwise.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              27

            	
              GENERAL

            

    

     

    
      	
              27.1

            	
              Every
      notice under or in connection with the
  Agreement:

            

    

     

    
      	
               
      

            	
              (a)

            	
              must
      be in writing (except where expressly stated
  otherwise);

            

    

     

    
      	
               
      

            	
              (b)

            	
              must
      be addressed as follows (or as otherwise notified from time to
      time)

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	
                                      Name:

                                    	 	
                                      ACN Pacific Pty
      Ltd

                                    
	 	
                                      Address:

                                    	 	
                                      Level
      11, 1 Pacific Highway, North Sydney, 

                                      NSW,
      Australia, 2060

                                    
	 	
                                      Fax:

                                    	 	
                                      +61
      2 8214 4111

                                    
	 	
                                      email:

                                      For
      the attention of:

                                    	 	
                                      iain.falshaw@acnaustralia.com.au

                                      Iain
  Falshaw

                                    
	 	 	 	 
	 	
                                      With
      a copy (which shall 

                                      not
      constitute notice) to:

                                    	 	
                                      Lloyd Edwards

                                      Lloyd.edwards@acnaustralia.com.au

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      	 	
                              Name:

                            	 	
                              deltathree,
      Inc.

                            
	 	
                              Address:

                            	 	
                              419 Lafayette
      Street

                              New York, N.Y. 10003

                            
	 	
                              Fax:

                            	 	
                              (212)
    500-4888

                            
	 	
                              email:

                              
                                For
      the attention of:

                              

                            	 	
                              dan.antebi@deltathree.com

                              Dan
      Antebi

                            
	 	 	 	 
	 	
                              With
      a copy (which shall 

                              not
      constitute
      notice) to:

                            	 	
                              
                                Peter Friedman,
      Esq.

                              

                              peter.friedman@deltathree.com

                            

                    

                  

                

              

            

          

        

      

    

     

    
      	
               
      

            	
              (c)

            	
              must
      be delivered by hand, or posted by overnight or similar delivery service,
      or sent by confirmed fax to the number, of the addressee, in accordance
      with clause 27.1(b); and

            

    

     

    
      	
               
      

            	
              (i)

            	
              is
      taken to be received by the
addressee:

            

    

     

    
      	
               
      

            	
              (ii)

            	
              (in
      the case of overnight delivery sent to an address in the same country), on
      the third day after the date of posting, with written verification of
      receipt;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              (in
      the case of overnight delivery sent to the address in another country) on
      the fifth day after the date of posting by airmail with a recognized
      international delivery service, with written verification of
      receipt;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              (in
      the case of confirmed fax ) at the time of such transmission if sent
      during normal business hours of the  recipient;
    and

            

    

     

    
      	
               
      

            	
              (v)

            	
              (in
      the case delivery by hand) on
delivery,

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    but if
the communications is taken to be received on a day that is not a working day or
after 5.00 pm, it is taken to be received at 9.00am on the next working day
(“working day” meaning a day that is not a Saturday, Sunday or public holiday
and on which banks are open for business generally, in the place to which the
communication is posted, sent or delivered).

     

    
      	
              27.2

            	
              You
      will nominate at least two authorised operational contacts and provide any
      relevant details in relation to them required by
    deltathree.

            

    

     

    
      	
              27.3

            	
              If
      either party has a right arising out of a breach of this Agreement by the
      other party and does not exercise that right, not exercising that right
      does not waive:

            

    

     

    
      	
               
      

            	
              (a)

            	
              that
      right unless it does so in writing;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              its
      right to insist on performance of that or any other obligation at any
      other time.

            

    

     

    
      	
              27.4

            	
              If
      a provision of the Agreement is void, voidable or unenforceable, it will
      be severed and the remainder of the Agreement will not be
      affected.

            

    

     

    
      	
              27.5

            	
              Each
      person will pay its own costs and expenses in respect of the Agreement and
      any agreement or document contemplated by the Agreement or required to
      give effect to it, but you must pay any stamp duty (including fines)
      assessed on the Agreement and any agreement or document contemplated by
      the Agreement or required to give effect to
it.

            

    

     

    
      	
              27.6

            	
              Nothing
      in the Agreement shall be deemed to have created a relationship of
      employer and employee, principal and agent, partnership or joint venture
      between the parties. This Agreement shall not be construed as authority
      for either party to act on behalf of the other in any agency or other
      capacity.

            

    

     

    
      	
              27.7

            	
              The
      Agreement is governed by the laws applicable in the State of New South
      Wales and you and deltathree submit to the exclusive jurisdiction of the
      courts of that State.

            

    

     

    
      	
              27.8

            	
              The
      Agreement constitutes the entire agreement between the parties as to its
      subject matter and supersedes all prior representations and agreements in
      connection with that subject
matter.

            

    

     

    
      	
              27.9

            	
              The
      Agreement may only be varied in writing signed by you and
      deltathree.

            

    

     

    
      	
              27.10

            	
              The
      parties intend that the Agreement shall not benefit or create any right or
      cause of action in, or on behalf of, any person or entity other than the
      parties to this Agreement and no person or entity other than the parties
      to the Agreement shall be entitled to rely on the provisions of the
      Agreement in any action, suit, proceeding, hearing or other
      forum.

            

    

     

    
      	
              27.11

            	
              Each
      Party represents and warrants to the other Party
  that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              it
      has been duly organized and is validly existing and in good standing under
      the laws of the jurisdiction of its
  organization;

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              it
      has the full right, power and authority to execute, deliver and perform
      its obligations under this
Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              its
      execution of and performance under this Agreement does not and will not
      violate any applicable existing regulations, rules, statutes or court
      orders of any local, state or national government agency, court or body of
      any country or any contract or other agreement to which it is
      subject;

            

    

     

    
      	
               
      

            	
              (d)

            	
              its
      execution and performance under this Agreement does not and will not
      violate or cause a conflict with or default under any other binding
      contract or agreement to which it is
subject;

            

    

     

    
      	
               
      

            	
              (e)

            	
              when
      executed and delivered by it, this Agreement will constitute the legal,
      valid and binding obligation of it, enforceable against it in accordance
      with its terms, subject to applicable bankruptcy and other laws that
      affect the rights of creditors generally;
and

            

    

     

    
      	
               
      

            	
              (f)

            	
              it
      has obtained, or will obtain, all necessary consents and approvals and any
      withholding of objection required from any entity, including any
      governmental authority with respect to the entering into or the
      performance of this Agreement.

            

    

     

    
      	
              27.12

            	
              These
      General Terms may be executed in counterparts, each of which may be deemed
      to be an original and both of which together shall constitute one and the
      same instrument.

            

    

     

    
      	
              27.13

            	
              The
      following rules of interpretation apply to the Agreement, unless the
      contrary intention appears.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      expressions "deltathree", "you" or "your" will include their respective
      successors and permitted assigns and
novatees.

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      reference to a person includes a reference to a person, firm, corporation
      or other legal entity.

            

    

     

    
      	
               
      

            	
              (c)

            	
              A
      term which is defined in any part of the Agreement has the same meaning in
      every other part of the Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      singular includes the plural and vice
versa.

            

    

     

    
      	
               
      

            	
              (e)

            	
              A
      reference to a thing includes any part of that
  thing.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Different
      grammatical forms of the same word have the corresponding
      meaning.

            

    

     

    
      	
               
      

            	
              (g)

            	
              A
      reference to a clause is to a clause in this document, unless otherwise
      stated.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Examples
      or words of inclusion are illustrative only and do not limit the
      generality of the relevant subject.

            

    

     

    
      	
               
      

            	
              (i)

            	
              A
      “reasonable” notice period means a period which is reasonable in the
      circumstances taking into account technical, operational and commercial
      issues.  For clarity, “reasonable” notice regarding an event may
      include notice after the event, or no notice at
  all.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
              28

            	
              DICTIONARY
      TO GENERAL TERMS

            

    

     

    
      	
              28.1

            	
              Words
      in a clause of this Agreement have the meaning given in that clause, the
      Telecommunications Legislation or in this dictionary as
      follows.

            

    

     

    ACN Pacific means ACN Pacific
Pty Ltd, an Australian corporation.

     

    Agreement means the documents
set out in clause 1.2 above.

     

    Application means
Order.

     

    Business Day means a day
(other than a Saturday, Sunday or public holiday) on which banks are open
generally for business in Sydney.

     

    Committed Term means, in
respect of a Service or Individual Service, the period specified as the
"Committed Term", “Term” or the period generally described as the period over
which deltathree will supply the Services, as set out in the Order or elsewhere
in the Agreement, including variations or extensions of that period however
described.  The Committed Term, in respect of a Service or Individual
Service, commences on the Service Start Date.If there is no period of Committed
Term specified in the Application or Agreement, then there will be no period of
Committed Term after the Service Start Date.

     

    Confidential Information of a
party means all information of that party (“Owner”) of a confidential
nature (whether in written, oral, electronic or other form), which another
person (“Recipient”)
first becomes aware, whether before or after the date of the original Order,
either through disclosure by the Owner to the Recipient or otherwise through the
Recipient’s involvement with the Owner. Confidential Information
includes information regarding the other party’s customers, technology, network,
trades secretsand all non-public information relating to the current or future
business interests, methodology or practices or affairs of either
party.

     

    Confidential
Information does not include information:

     

    
      	
               
      

            	
              (a)

            	
              the
      Recipient creates (whether alone or jointly with any person) independently
      of the Owner’s Confidential Information or the Recipient knew prior to
      receiving such information from the
Owner;

            

    

     

    
      	
               
      

            	
              (b)

            	
              that
      is public knowledge (otherwise than as a result of a breach of
      confidentiality by the Recipient or any person to whom it has disclosed
      the information); or

            

    

     

    
      	
               
      

            	
              (c)

            	
              obtained
      without restriction as to further disclosure from a third party other than
      the Owner through no breach of confidentiality by that third
      party.

            

    

     

    For
deltathree, “Owner” and “Recipient” includes deltathree and each deltathree
Group Company excluding ACN Pacific.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Consequential Loss
means:

     

    
      	
               
      

            	
              (a)

            	
              loss
      of revenue, loss of profits, loss of anticipated savings or business, pure
      economic loss, loss of data, loss of value of equipment (other than cost
      of repair), loss of opportunity or expectation loss and any other form of
      consequential, special, indirect, incidental, punitive or exemplary loss
      or damages; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      penalties or fines imposed by a
Regulator.

            

    

     

    Control
(including the correlative terms “Controls”, “Controlled by”, and “under common Control with”)
means, with respect to any person, entity or enterprise, the power, directly or
indirectly, either to (i) vote a majority of the voting shares or other voting
interests in such person, entity or enterprise for the election of directors or
other governing body of such person, entity or enterprise or (ii) direct or
cause the direction of the management and policies of such person, entity or
enterprise, whether through the ownership of voting securities, by contract or
otherwise.

     

    CPE has the meaning assigned
in clause 3.1.

     

    deltathree means deltathree,
Inc., a Delaware corporation.

     

    deltathree Intellectual
Property means any material owned, developed or licensed by deltathree or
its Personnel, in which deltathree has Intellectual Property
Rights.

     

    deltathree Network means any
telecommunications network, equipment, facilities or cabling controlled by
deltathree.

     

    deltathree Billing Dispute Resolution
Process document is the document agreed between the parties from time to
time which sets out the billing dispute resolution process for all
Services.

     

    Downgrade means any
modification to a Service or an Individual Service which reduces the capacity,
use or utility of that Service or Individual Service.

     

    Emergency means an actual or
potential state of danger requiring immediate action to avoid any Loss,
including personal injury or property Loss.

     

    End User means any person to
whom you supply an End User Service.

     

    End User Service means the
complete retail end-to end service which you provide to a customer of yours
using one or more Individual Services.

     

    Excluded Event
means:

     

    
      	
               
      

            	
              (a)

            	
              a
      breach of the Agreement by you,

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      Intervening Event;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      negligent or fraudulent act or omission of you or any of your Personnel;
      or

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      failure of any of your equipment.

            

    

     

    General Terms means this
General Terms.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    Group Company of a party means
each of that party’s Related Corporations other than the other
party.

     

    GST has the meaning given in
the A New Tax System (Goods
and Services Tax) Act 1999 (Cth).

     

    Individual means a natural
person.

     

    Individual Service means each
individual service component making up a Service; for example, an individual
circuit or connection for a specific End User.  For clarity, there may
be more than one Individual Service making up a Service.

     

    Insolvency Event means in
relation to a person:

     

    
      	
               
      

            	
              (a)

            	
              the
      person proposing to enter, or entering, into any scheme of arrangement
      (including Chapter 11 type arrangements) between that person and its
      creditors (except an arrangement for the purposes of a solvent
      reconstruction);

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      mortgagee entering into possession or disposing of the whole or any part
      of the assets or business of the
person;

            

    

     

    
      	
               
      

            	
              (c)

            	
              appointment
      of a receiver, a receiver and manager, a liquidator, a provisional
      liquidator, an administrator or other like person to the person or to the
      whole or any part of its assets or business, or the person taking any step
      to have such a person appointed to itself or the whole or any part of its
      assets or business;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      person suspending payment of its debts generally;
  or

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      person being or becoming insolvent for the purposes of section 95A of the
      Corporations Act
      2001 (Cth).

            

    

     

    Intellectual Property Rights
means all industrial and intellectual property rights, including without
limitation, registered or unregistered trademarks, patents, copyright, rights in
circuit layouts, trade secrets, confidential know how and information and any
application or right to apply for registration of any of those rights.
Intellectual Property includes the right to have
Confidential Information kept confidential.

     

    Interruption in the supply of
goods or a service (including a Service and each Individual Service) means a
delay in supplying, a failure to supply or an error or defect in the supply of,
those goods or that service. (Interrupt(s) will be construed
accordingly).

     

    Intervening Event affecting a
person means any event or circumstance outside that person’s reasonable control,
and includes fire, storm, flood, earthquake, accident, war, labour dispute
(other than a dispute solely between that person and its own staff or staff
under its control), materials or labour shortage, the change or introduction of
any law or regulation, an act or omission of any Regulator or an act or omission
of any third party (including any Supplier) where the act or omission is caused
by an event or circumstance outside that third party's reasonable control
(including any of the things mentioned in this definition).

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Loss means any loss, cost,
liability or damage, including reasonable legal costs on a solicitor/client
basis and includes Consequential Loss, unless otherwise stated.

     

    Operations
Manual means
the deltathree / ACN Dispute Resolution Process document and all other
service documentation agreed between deltathree and you from time to time
to be part of the Operations Manual.

     

    Order means a request for a
Service or an Individual Service made in the manner specified in the relevant
Service Description.

     

    Personal
Information means information or an opinion (including information or an
opinion forming part of a database), whether true or not and whether included in
material form or not, about an Individual whose identity is apparent, or can
reasonably be ascertained, from the information or opinion.

     

    Personnel of a person means
that person’s employees, agents, contractors or other representatives and, in
the case of deltathree, includes the employees, agents, contractors or other
representatives of any deltathree Group Company excluding ACN
Pacific.

     

    Premises means locations at
which deltathree supplies a Service, and locations to which deltathree needs to
have access to supply a Service.

     

    Privacy Laws means Privacy Act 1988 (Cth),the
Telecommunications Act 1997
(Cth) and the Spam Act
2003 (Cth), each as amended or replaced from time to time.

     

    Regulator means the Australian
Communications Authority, the Australian Communications and Media Authority, the
Australian Competition and Consumer Commission, Communications Alliance Ltd, the
Telecommunications Industry Ombudsman or any other government or statutory body
or authority.

     

    Related Corporation of an
entity means a body corporate that, directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with such
entity.

     

    Service means the service with
the options and features requested in the Order or Orders as described in the
relevant Service Description, and any related goods (including equipment) and
ancillary services which deltathree supplies to you in connection with that
service.

     

    Service Delivery Pointmeans
the point at which a Service is made available for connection to your equipment
or cabling.

     

    Service Description means the
part of the Agreement entitled "Service Description" which describes a
Service.

     

    Service Option means certain
features and characteristics of a Service which may be selected by you and which
are described as a 'Service Option' (together with any additional terms on which
the Service Option is supplied) in the Service Description or any appendix to
the Service Description.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Service Start Date for a
Service or an Individual Service means the date on which deltathree starts
supplying that Service or Individual Service to you, or is deemed to do
so.

     

    Supplier means any supplier of
goods or services (including interconnection services) which are used directly
or indirectly by deltathree to supply a Service.

     

    Supplier Network means any
telecommunications network, equipment, facilities or cabling controlled by a
Supplier.

     

    Suspend means suspend, reduce,
restrict or limit supply.

     

    Tax means any withholding tax,
charge (and associated penalty or interest), rate, duty or impost imposed by any
authority at any time but does not include GST, or any tax on income or capital
gains.

     

    Telecommunications Legislation
means the Telecommunications
Act 1997 (Cth) and the Telecommunications (Consumer
Protection and Service Standards) Act 1999 (Cth), each as amended or
replaced from time to time, and Part XIB and Part XIC and related provisions of
the Trade Practices Act.

     

    Termination means termination
of this Agreement, a Service or an Individual Service, as
applicable.

     

    Trade Practices Act means the
Trade Practices Act 1974
(Cth),as amended or replaced from time to time.

     

    General Terms means this
document.

     

    You means ACN
Pacific.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Signed for and on behalf of
ACN Pacific Pty
Ltd

    

     

    By: /s/ Iain
Falshaw                              

     

    Name:
Iain
Falshaw                             

     

    Title:
Managing
Director                      

     

    Date:
July 29,
2009                              

     

    

     

    
      Signed for and on behalf of
deltathree, Inc.

    

    

     

    By:  /s/ Effi
Baruch                              

     

    Name:
Effi
Baruch                               

     

    Title:
CEO and
President                      

     

    Date:
July 27,
2009                              

     

    
      
        
        

      

      
        27STOCK PURCHASE AND
RECAPITALIZATION AGREEMENT

     

    This
Agreement this 30th day of October, 2009 by and among Monogram Energy, Inc., a
Pennsylvania Company (the “Parent”), Triad Therapeutics, Inc., a Delaware corporation (the
"Company").

     

    RECITALS

    

    A.          The
respective Boards of Directors of each of the Company and
Parent,  have approved and declared advisable the merger of the
Company with into Parent (the "Acquisition") and
approved the Merger upon the terms and subject to the conditions set forth in
this Agreement, whereby all of the issued and outstanding share of the common
stock of the Company will be converted into an amount of shares of Parent’s
common stock equal to 95% of the capital stock of the Parent on a
post-acquisition basis.  Following the Acquisition, the Parent will
amend its Certificate of Incorporation to authorize a class of Preferred Stock
that will convert into 95% of the common stock of the Company once it has the
necessary authorized shares to effect such ownership percentage.  The
Company currently has 4,400,000,000 shares of common stock authorized of which
3,773,070,853 shares are outstanding.

     

    B.           The
respective Boards of Directors of the Company and Parent have determined that
the Acquisition is in furtherance of and consistent with their respective
long-term business strategies and is fair to and in the best interests of their
respective stockholders.

     

    C.           It
is intended that, for federal income tax purposes, the Acquisition shall qualify
as a reorganization under the provisions of Section 368(a) of the Internal
Revenue Code of 1986, as amended, and the rules and regulations promulgated
thereunder (the "Code");

     

    D.           For
financial accounting purposes, it is intended that the Acquisition will be
accounted for as a "purchase";

     

    NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties, covenants
and agreements contained herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    ARTICLE
I

     

    THE
ACQUISITION; CLOSING; EFFECT OF ACQUISITION

     

    SECTION
1.1  The
Acquisition.  Upon
the terms and subject to the conditions set forth in this Agreement and in
accordance with the laws of the State of Pennsylvania ("Pennsylvania Law") at the
Effective Time, the Company shall be acquired by the Parent and the Company will
become a wholly-owned subsidiary of the Parent.  The Parent shall be
deemed the surviving corporation in the Acquisition (sometimes hereinafter
referred to as the "Surviving
Corporation"), and the separate corporate existence of the Company shall
therefrom cease, except as set forth herein. The result will be that the Company
will be a wholly-owned subsidiary of Parent.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SECTION
1.2  Closing.  Subject
to the terms and conditions of this Agreement, the closing of the Acquisition
and the consummation of the other transactions contemplated hereby (the "Closing") shall take
place at the offices of Gersten Savage LLP 600 Lexington Avenue, New York, New
York 10022 on the date hereof.

     

    SECTION
1.3  Effective
Time.  On the date of Closing, the Parent will become the owner
of 100% of the Common Stock of the Company (the "Effective
Time").

     

    SECTION
1.4  Certificate of
Incorporation.  The certificate of incorporation of the Parent
as in effect immediately prior to the Effective Time shall remain as the
certificate of incorporation of the Parent (the "Certificate of
Incorporation"), until duly amended as provided therein or by applicable
law.  It is contemplated that the Certificate of Incorporation will be
amended to change the name of the Parent to Triad Therapeutics, Inc. (or a
similar name that gives effect to the business of the Company and to add
sufficient shares to issue to the shareholders of the Company in order to cause
the Company’s shareholders to own 95% of the Parent after the date
hereof.

     

    SECTION
1.5   By-Laws.  The
by-laws of the Parent in effect immediately prior to the Effective Time shall
remain the by-laws (the "By-Laws"), until
thereafter amended as provided therein or by applicable law.

     

    SECTION
1.6  Directors.  The
sole director of the Company shall, from and after the Effective Time, be Jim
Hennig until his successor has been duly elected or appointed and qualified or
until his earlier death, resignation or removal in accordance with the
Certificate of Incorporation and the By-Laws. As of the Effective Time, the
authorized number of directors comprising the Board of Directors of Parent shall
consist of not less than 3 and not more than 5 individuals.  Jim
Hennig is hereby deemed to be elected to the Board Directors of Parent at the
Effective Time

     

    SECTION
1.7   Officers.  The
sole officer of the Parent shall, from and after the Effective Time, be Jim
Hennig (Chief Executive Officer and President), until his successors has been
duly elected or appointed and qualified or until his earlier death, resignation
or removal in accordance with the Certificate of Incorporation and the
By-Laws.  The Parent intends to add additional officers at a later
date.

     

    SECTION
1.8    Effect on Capital
Stock.  At the Effective Time, as a result of the Acquisition
and without any action on the part of the holder of any capital stock of the
Company:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (a)  Merger
Consideration.

     

    (i)           Each
Company Common Share issued and outstanding immediately prior to the Effective
Time shall be converted into, 21.8861349030864854603315742442 shares of Parent
Common Stock (the "Parent Common
Shares") or such ration that will result in a number of shares which
equal 95% of the outstanding capital stock of Parent.

     

    (ii)          The
Parent Common Shares alternatively, are referred to herein as the “Parent Merger Stock”,
and the conversion of the Company Shares into Parent Stock is referred to as
the  "Acquisition Purchase
Price");

     

    (b)  At
the Effective Time, all Company Shares shall be canceled and the Company shall
cease to exist, and each certificate (a "Certificate")
formerly representing:

     

    (i)          
any Company Common Shares shall thereafter represent only the right to receive
the shares of Parent Common Stock into which such Company Common Shares have
been converted; and

     

    SECTION
1.9  Exchange of Certificates for
Shares.

     

    (a)  Exchange.  At
Closing, Parent shall deliver or cause to be delivered to each respective owner
of Company Shares and in each of their respective names certificates
representing Parent Stock into which the Company Shares that such shareholders
owns are to be converted as set forth on Schedule 1.9 attached
hereto.

     

    (b)  Fractional
Shares.  No certificates or scrip representing fractional
shares of Parent Common Stock shall be issued upon the surrender for exchange of
Certificates pursuant to this Article I; no dividend or other distribution by
Parent and no stock split, combination or reclassification shall relate to any
such fractional share; and no such fractional share shall entitle the record or
beneficial owner thereof to vote or to any other rights of a stockholder of
Parent. In lieu of any such factional share, each holder of Company Shares who
would otherwise have been entitled thereto upon the surrender of Certificate(s)
for exchange pursuant to this Article I will be paid an additional share of
Parent Common Stock.

     

    (c)   Adjustments of Conversion
Number.  In the event that Parent changes the number of shares
of Parent Common Stock issued and outstanding prior to the Effective Time as a
result of a reclassification, stock split (including a reverse split), dividend
or distribution, recapitalization, merger (other than the Acquisition, Stock
Purchase or the cancellation of options previously granted by the Company),
subdivision, or other similar transaction with a dilutive effect, or if a record
date with respect to any of the foregoing shall occur prior to the Effective
Time, the conversion number shall be equitably adjusted.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    ARTICLE
II

     

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY AND SELLER

     

    The
Company represents, warrants and covenants to Parent as follows and acknowledges
that Parent is relying upon such representations and warranties in connection
with the Contemplated Transactions (as hereinafter defined):

     

    SECTION
2.1  Capitalization.  The
outstanding and issued capital stock of the Company consists of 87,035,952
shares of common stock.  Schedule 1.9
sets forth the name of each record and beneficial shareholder of the Company
(each a "Shareholder" and
collectively the "Shareholders") and
the number of Company Shares held by each such person.  The Company
does not and, at the Closing, the Company will not, have outstanding any capital
stock or other securities or any rights, warrants or options to acquire
securities of the Company, or any convertible or exchangeable securities and,
other than Parent pursuant to this Agreement, no person has or, at Closing will
have, any right to purchase or otherwise acquire any securities of the Company,
except that the Company has outstanding warrants to purchase an aggregate of
6,734 shares at $50 per share.  There are, and at Closing there will
be, no outstanding obligations of the Company to repurchase, redeem or otherwise
acquire any securities of the Company.  All of the Company Shares are,
and at Closing will be, duly authorized, duly and validly issued, fully paid and
non-assessable, and none were issued in violation of any preemptive rights,
rights of first refusal or any other contractual or legal restrictions of any
kind.

     

    SECTION
2.2  Title
to the Shares.  The Company’s shareholders are the beneficial
owners and hold good and valid title to its Company Shares free and clear of any
Lien.  Upon consummation of the Contemplated Transactions and the
satisfaction of the conditions to Closing set forth herein, Parent will own all
of the issued and outstanding shares of capital stock of the Company, free and
clear of any Lien.  At the Closing, Seller and each Shareholder of the
Company will deliver the Company Shares to Parent free and clear of any Lien,
other than restrictions imposed by the Securities Act of 1933, as amended, (the
"Securities
Act") and applicable securities Laws including the laws of the State
of Delaware.

     

    SECTION
2.3  Authority Relative to this
Agreement.  At the Closing, the Company will have full power,
capacity and authority to execute and deliver each Transaction Document to which
it is or, at Closing, will be, a party and to consummate the transactions
contemplated hereby and thereby (the "Contemplated
Transactions").  The execution, delivery and performance by the
Company of each Transaction Document and the consummation of the Contemplated
Transactions to which the Company are, or at Closing, will be, a party will have
been duly and validly authorized by the Company and no other acts by or on
behalf of the Company will be necessary or required to authorize the execution,
delivery and performance by  the Company of each Transaction Document
and the consummation of the Contemplated Transactions to which it, is or, at
Closing, will be, a party.  This Agreement and the other Transaction
Documents to which the Company is a party have been duly and validly executed
and delivered by the Company  and (assuming the valid execution and
delivery thereof by the other parties thereto) will constitute the legal, valid
and binding agreements of the Company respectively, enforceable against the
Company and Seller in accordance with their respective terms, except as such
obligations and their enforceability may be limited by applicable bankruptcy and
other similar Laws affecting the enforcement of creditors' rights generally and
except that the availability of equitable remedies is subject to the discretion
of the court before which any proceeding therefore may be brought (whether at
law or in equity).

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    SECTION
2.4  No
Conflicts; Consents.  The execution, delivery and performance
by the Company of each Transaction Document to which it is a party and the
consummation of the Contemplated Transactions to which the Company is a party,
upon approval of the Shareholders will not: (i) violate any provision of
the certificate of incorporation or memorandum of association of the Company;
(ii) require the Company to obtain any consent, approval or action of or
waiver from, or make any filing with, or give any notice to, any Governmental
Body or any other person; (iii) violate, conflict with or result in a breach or
default under (with or without the giving of notice or the passage of time or
both), or permit the suspension or termination of, any material Contract
(including any Real Property Lease) to which the Company is a party or by which
it or any of its assets is bound or subject, or to the best of Company’s
knowledge and information result in the creation of any Lien upon any of the
Company Shares or upon any of the Assets of the Company; (iv) violate any
Order, any Law, of any Governmental Body against, or binding upon, the Company
or upon any of their respective assets or the Business; or (v) violate or
result in the revocation or suspension of any Permit.

     

    SECTION
2.5  Corporate Existence and
Power.  The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware, and has
all requisite powers, authority and all Permits required to own and/or operate
its Assets and to carry on the Business as now conducted, including all
qualifications under any statute in effect in any state or foreign jurisdiction
in which the Company operates its Business.  The Company is duly
qualified to do business and is in good standing in each state of the United
States and in each other jurisdiction where the character of the property owned
or leased by it or the nature of its activities makes such qualification
necessary.

     

    SECTION
2.6  Charter
Documents and Corporate Records.  The Company has heretofore
delivered to Parent true and complete copies of the Articles of Incorporation,
By-Laws and minute books, or comparable instruments, of the Company as in effect
on the date hereof.  The stock transfer books of the Company have been
made available to Parent for its inspection and are true and complete in all
respects.

     

    SECTION
2.7   Financial Conditions

     

    (a) All
financial, business and accounting books, ledgers, accounts and official and
other records relating to the Company have been properly and accurately kept and
completed, and the Company has no knowledge, notice belief or information there
are any material inaccuracies or discrepancies contained or reflected
therein.

     

    SECTION
2.8  Liabilities. The
Company has not incurred any Liabilities since June 30, 2009 (the "Latest Balance Sheet
Date") except (i) current Liabilities for trade or business
obligations incurred in connection with the purchase of goods or services in the
ordinary course of the Business and consistent with past practice, (ii)
professional fees related to this Transaction and (iii) for payroll taxes as
disclosed in Schedule 2.16.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    SECTION
2.9  Company
Receivables.  Except to the extent of the amount of the
allowance for doubtful accounts reflected in the Annual Statements and the
Interim Statements, all the Receivables of the Company reflected therein, and
all Receivables that have arisen since the Latest Balance Sheet Date (except
Receivables that have been collected since such date), are valid and enforceable
Claims subject to no known defenses, offsets, returns, allowances or credits of
any kind, and constitute bona fide Receivables collectible in the ordinary
course of the Business except as enforceability may be limited by applicable
bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or
similar laws or principles of equity affecting the enforcement of creditors
rights generally.

     

    SECTION
2.10  Absence of Certain
Changes.  (a) Since December 31, 2008, the Company has
conducted the Business in the ordinary course consistent with past practice,
except as disclosed on Schedule 2.10 hereof,
and there has not been:

     

    (i)           Any
material adverse change in the Condition of the Business;

     

    (ii)          Any
material damage, destruction or other casualty loss (whether or not covered by
insurance), condemnation or other taking affecting the Business or the Assets of
the Company;

     

    (iii)         Any
change in any method of accounting or accounting practice by the
Company;

     

    (iv)         Except
for normal increases granted in the ordinary course of business, any increase in
the compensation, commission, bonus or other direct or indirect remuneration
paid, payable or to become payable to any officer, stockholder, director,
consultant, agent or employee of the Company, or any alteration in the benefits
payable or provided to any thereof;

     

    (v)          Any
material adverse change in the relationship of the Company with its employees,
customers, suppliers or vendors;

     

    (vi)         Except
for any changes made in the ordinary course of Business, any material change in
any of the Company's business policies, including advertising, marketing,
selling, pricing, purchasing, personnel, returns or budget
policies;

     

    (vii)        Any
agreement or arrangement whether written or oral to do any of the
foregoing.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (viii)       The
Company has no Liability that is past due and which, individually or in the
aggregate, exceeds $10,000, except as shown on Schedule 2.10
hereto.

     

    SECTION
2.11  Leased
Real Property.  (a) The Company has no fee interest,
purchase options or rights of first refusal in any real property and the Company
has no leasehold or other interest in any real property, except as set forth on
Schedule 2.11
(the "Leased Real
Property"), and all leases including all amendments, modifications,
extensions, renewals and/or supplements thereto (collectively, "Real Property
Leases") are described on Schedule 2.11.

     

    SECTION
2.12  Personal Property;
Assets.  The Company has good and valid title to (or valid
leasehold interest in) all of its personal property and Assets, free and clear
of all Liens, except the Permitted Liens and as indicated on Schedule 2.12.  The
machinery, equipment, computer software and other tangible personal property
constituting part of the Assets and all other Assets (whether owned or leased)
are in good condition and repair (subject to normal wear and tear) and are
reasonably sufficient and adequate in quantity and quality for the operation of
the Business as previously and presently conducted.  Schedule 2.12
contains a list and description of all tangible personal property owned or
leased by the Company with a book value (before depreciation) of $25,000 or
more.  The Assets constitute all of the assets, which are necessary to
operate the Business of the Company as currently conducted.

     

    SECTION
2.13  Contracts.  (a)  Schedule 2.13
sets forth an accurate and complete list of all Contracts to which the Company
is a party or by which it or its Assets are bound or subject that: (i) cannot be
canceled upon 30 days' notice without the payment or penalty of less than One
Thousand Dollars ($1,000); or (ii) involve aggregate annual future payments by
or to any person of more than Five Thousand Dollars ($5,000). True and complete
copies of all written Contracts (including all amendments thereto and waivers in
respect thereof) and summaries of the material provisions of all oral Contracts
so listed have been made available to Buyer.

     

    (b)  All
Contracts to which the Company is a party are valid, subsisting, in full force
and effect and binding upon the Company and the other parties thereto, in
accordance with their terms, except that no representation or warranty is given
as to the enforceability of any oral Contracts.  Except as set forth
on Schedule
2.13, the Company is not in default (or alleged default) under any such
Contract.

     

    SECTION
2.14  Patents and Intellectual
Property Rights.  (a)  patents, trademarks, trade names,
service marks, brand marks, brand names, and registered
copyrights.  The  Company has  not conflicted
with, infringed upon, violated or interfered with  any right, title,
interest or goodwill, including, without limitation, any intellectual property
right, patent, trademark, trade name, service mark, brand name, computer
program, database, industrial design, trade secret, copyright or any pending
application thereto of any other person and there have been no claims made and
the Company has not received any notice or otherwise know that any of the
foregoing is invalid or conflicts with the asserted rights of other Persons or
have not been used or enforced or have been failed to be used or enforced in a
manner that would result in the abandonment, cancellation or unenforceability of
the Intellectual Property.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (b)  The
Company owns or has rights to use all, know-how, formulae and other proprietary
and trade rights necessary to conduct the Business as it is now
conducted.  The Company has not forfeited or otherwise relinquished
any such Intellectual Property, know-how, formulae or other proprietary right
used in the conduct of the Business as now conducted.

     

    (c)   To
the extent used in the conduct of the Business by the Company, each of the
licenses or other contracts relating to the Company's intellectual property
(collectively, the "Intellectual Property
Licenses") is in full force and effect and is valid and enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity), and there is no notice or claim of default under any Intellectual
Property License either by the Company or, to the Company's knowledge, by any
other party thereto, and to the Company’s knowledge, no event has occurred that
with the lapse of time or the giving of notice or both would constitute a
default by the Company thereunder.

     

    SECTION
2.15  Claims
and Proceedings. There are no outstanding Orders of any Governmental Body
against or involving the Company, its Assets, the Business, or the Company
Shares. There are no actions, suits, claims or counterclaims, examinations,
Company Required Consents or legal, administrative, governmental or arbitral
proceedings or investigations (collectively, "Claims") (whether or
not the defense thereof or Liabilities in respect thereof are covered by
insurance), pending or, to the best of the Company's knowledge, threatened on
the date hereof, against or involving the Company, its Assets, the Business or
the Company Shares.

     

    SECTION
2.16   Taxes.  (a)
 Except as set forth in Schedule 2.16:

     

    (i)           The
Company has timely filed or, if not yet due but due before Closing, will timely
file all Tax Returns required to be filed by it for all taxable periods ending
on or before the date of Closing and all such Tax Returns are or, if not yet
filed, will be, upon filing, true, correct and complete in all material
respects;

     

    (ii)          the
Company has paid, or if payment is not yet due but due before Closing, will
promptly pay when due to each appropriate Tax Authority, all Taxes of the
Company shown as due on the Tax Returns required to be filed by it for all
taxable periods ending on or before the date of Closing;

     

    (iii)         the
accruals for Taxes currently payable as well as for deferred Taxes shown on the
financial statements of the Company as of the date of the Annual Statements, the
Interim Statements or the date of any financial statements delivered hereunder:
(A) adequately provide for all contingent Tax Liabilities of the Company as
of the date thereof; and (B) accurately reflect, as of the date thereof,
all unpaid Taxes of the Company whether or not disputed, in each case as
required to be reflected thereon in order for such statements to be in
accordance with GAAP;

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (iv)         no
extension of time has been requested or granted for the Company to file any Tax
Return that has not yet been filed or to pay any Tax that has not yet been paid
and the Company has not granted a power of attorney that remains outstanding
with regard to any Tax matter;

     

    (v)          the
Company has not received notice of a determination by a Tax Authority that Taxes
are currently owed by the Company (such determination to be referred to as a
"Tax
Deficiency") and, to the Company's knowledge, no Tax Deficiency is
proposed or threatened;

     

    (vi)         all
Tax Deficiencies have been paid or finally settled and all amounts determined by
settlement to be owed have been paid;

     

    (vii)        there
are no Tax Liens on or pending against the Company or any of the Assets, other
than those which constitute Permitted Liens;

     

    (viii)       there
are no presently outstanding waivers or extensions or requests for a waiver or
extension of the time within which a Tax Deficiency may be asserted or
assessed;

     

    (ix)          no
issue has been raised in any examination, investigation, Company Required
Consents, suit, action, claim or proceeding relating to Taxes (a "Tax Company Required
Consents") which, by application of similar principles to any past,
present or future period, would result in a Tax Deficiency for such
period;

     

    (x)          there
are no pending or threatened Tax audits of the Company;

     

    (xi)          the
Company has no deferred intercompany gains or losses that have not been fully
taken into income for income Tax purposes;

     

    (xii)         there
are no transfer or other taxes (other than income taxes) imposed by any state on
the Company by virtue of the Contemplated Transactions; and

     

    (xiii)        no
claim has been made by any Tax Authority that the Company is subject to Tax in a
jurisdiction in which the Company is not then paying Tax of the type
asserted.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Each
reference to a provision of the Code in this Section 2.16 shall be treated
for state and local Tax purposes as a reference to analogous or similar
provisions of state and local law.

     

    (b)  To
the Company’s knowledge, the Company has collected and remitted to the
appropriate Tax Authority all sales and use or similar Taxes required to be
collected on or prior to the date of Closing and has been furnished properly
completed exemption certificates for all exempt transactions and has no
information otherwise or notice of any claim by any government or jurisdiction
with regards thereto.  The Company has maintained and has in its
possession all records, supporting documents and exemption certificates required
by applicable sales and use Tax statutes and regulations to be retained in
connection with the collection and remittance of sales and use Taxes for all
periods up to and including the date of Closing.  With respect to
sales made by the Company prior to the date of Closing for which sales and use
Taxes are not yet due as of the date of Closing, all applicable sales and use
Taxes payable with respect to such sales will have been collected or billed by
the Company and will be included in the Assets of the Company as of the date of
Closing.

     

    SECTION
2.17  Compliance with
Laws.  The Company is not in violation of any order, judgment,
injunction, award, citation, decree, consent decree or writ (collectively,
"Orders") and
to the best of the Company’s knowledge, belief  and information, any
Laws of any Governmental Bodies affecting the Company, the Company Shares or the
Business.

     

    SECTION
2.18  Permits.  The
Company has obtained all licenses, permits, certificates, certificates of
occupancy, orders, authorizations and approvals (collectively, "Permits"), and has
made all required registrations and filings with all Governmental Bodies, that
are necessary to the ownership of the Assets, the use and occupancy of the
Leased Real Property, as presently used and operated, and the conduct of the
Business or otherwise required to be obtained by the Company.  All
Permits required to be obtained or maintained by the Company and are in full
force and effect; no violations are or have been recorded, nor have any notices
or violations thereof been received, in respect of any Permit; and no proceeding
is pending or threatened to revoke or limit any Permit; and the consummation of
the Contemplated Transactions will not (or with the giving of notice or the
passage of time or both will not) cause any Permit to be revoked or
limited.

     

    SECTION
2.19  Environmental
Matters. To the best of the Company’s knowledge, belief  and
information, the Company is, and at all times has been, in full compliance with,
and has not been and is not in violation of or liable under, any Environmental
Law.

     

    SECTION
2.20  Finders
Fees.  There is no investment banker, broker, finder or other
intermediary which has been retained by or is authorized to act on behalf of the
Company who might be entitled to any fee or commission from the Company in
connection with the consummation of the Contemplated
Transactions.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    SECTION
2.21  Disclosure.  Neither
this Agreement, the Schedules hereto, nor any reviewed or unaudited financial
statements, documents or certificates furnished or to be furnished to Buyer or
Parent by or on behalf of the Company pursuant to this Agreement contains or
will contain any untrue statement of a material fact or omits or will omit to
state a material fact necessary in order to make the statements contained herein
or therein not misleading.  Except for general current economic
conditions effecting the entire economy or the Company’s entire industry and not
specific to the Business, there are no events, transactions or other facts known
by the Company, which, either individually or in the aggregate, may give rise to
circumstances or conditions which would have a material adverse effect on the
general affairs or Condition of the Business.

     

    ARTICLE
III

     

    REPRESENTATIONS
AND WARRANTIES OF PARENT

     

    Buyer
jointly and severally represent, warrant and covenant to the Company as follows
and acknowledge that the Company and Seller are relying upon such
representations and warranties in connection with the Contemplated
Transactions:

     

    SECTION
3.1  Authority Relative to this
Agreement. Parent have full power and authority to execute and deliver
each Transaction Document to which they are or, at Closing, will be, a party and
to consummate the Contemplated Transactions.  Following the approval
of the boards of directors of Parent with respect to the Contemplated
Transactions, the execution, delivery and performance by Buyer and Parent of
each Transaction Document and the consummation of the Contemplated Transactions
to which they are or, at Closing, will be, a party have been duly and validly
authorized and approved by Parent and no other acts by or on behalf of Parent
are necessary or required to authorize the execution, delivery and performance
by Parent of each Transaction Document and the consummation of the Contemplated
Transactions to which they are or, at Closing, will be a party.  This
Agreement and the other Transaction Documents to which Parent are a party have
been, duly and validly executed and delivered by Buyer and Parent and (assuming
the valid execution and delivery thereof by the other parties thereto)
constitutes, or will, at the Closing, constitute, as the case may be, the legal,
valid and binding agreements of Parent enforceable against each of them in
accordance with their respective terms, except as such obligations and their
enforceability may be limited by applicable bankruptcy and other similar Laws
affecting the enforcement of creditors' rights generally and except that the
availability of equitable remedies is subject to the discretion of the court
before which any proceeding therefore may be brought (whether at law or in
equity).

     

    SECTION
3.2  No
Conflicts; Consents.  The execution, delivery and performance
by Parent of each Transaction Document to which they are a party and the
consummation of the Contemplated Transactions to which Parent are a party does
not and will not: (i) violate any provision of the certificate of
incorporation or by-laws of Parent, as the case may be; (ii) require Parent
to obtain any consent, approval or action of or waiver from, or make any filing
with, or give any notice to, any Governmental Body or any other person.;
(iii)  violate, conflict with or result in the breach or default under
(with or without the giving of notice or the passage of time), or permit the
suspension or termination of, any material Contract to which  Parent
are a party or any of them or any of their assets is bound or subject or result
in the creation or any Lien upon any of Parent Merger Stock or upon any assets
of Parent; or (iv) violate any Order or, to Buyer’s knowledge, any Law of
any Governmental Body against, or binding upon, Parent, or upon any of their
respective assets or businesses.

    
      
         

      

      
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    SECTION
3.3  Corporate Existence and
Power of Parent. Parent is a corporation duly organized, validly existing
and in good standing under the laws of the State of Pennsylvania, and has all
requisite corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted.

     

    SECTION
3.4  The
Parent Acquisition Stock.  At
the closing, the Parent Acquisition Stock will have been duly authorized by
Parent and, when issued to Shareholders pursuant to this Agreement, will be duly
issued, fully paid and non-assessable shares of Parent Acquisition
Stock.  The Parent Acquisition Stock, when issued pursuant hereto:
(i) will not be issued in violation of or subject to any preemptive rights,
rights of first refusal or, other than as set forth in this Agreement,
contractual restrictions of any kind; and (ii) will vest in Shareholders,
respectively, good title to Parent Acquisition Stock free and clear of all
Liens.

     

    SECTION
3.5  Capitalization.  At
the closing, the authorized capital stock of Parent consists of: (i)
4,400,000,000 shares of common stock, $0.001 par value; and (ii) no shares of
preferred stock.  Parent has: (i) 3,773,070,853 shares of common
stock; and (ii) 3,500,000 shares of preferred stock issued and
outstanding.  Parent will take the necessary steps to effect an
amendment to the Company’s certificate of incorporation or to affect a reverse
split to cause the shareholders of the Company to own 95% of the Company taking
into account the Acquisition.  To the knowledge of Parent, Parent will
not have outstanding any capital stock or other securities or any rights,
warrants or options to acquire securities of Parent or any convertible or
exchangeable securities and, other than Parent pursuant to this Agreement, to
the knowledge of Parent, no person has or at Closing will have, any right to
purchase or otherwise acquire any securities of Parent.  There are,
and at Closing there will be, to the knowledge of Parent, no outstanding
obligations of Parent to repurchase, redeem or otherwise acquire any securities
of Parent.  All of Parent  Stock is, and at Closing will be,
duly authorized, duly and validly issued, fully paid and non-assessable, and to
the knowledge of Parent, none were issued in violation of any preemptive rights,
rights of first refusal or any other contractual or legal restrictions of any
kind.

     

    SECTION
3.6  Disclosure of
Information.  Parent has been given the opportunity: (i) to ask
questions of, and to receive answers from, persons acting on behalf of the
Company concerning the terms and conditions of the Contemplated Transactions and
the business, properties, prospects and financial conditions of the Company; and
(ii) to obtain any additional information (to the extent the Company or any of
the Shareholders possesses such information or is able to acquire it without
unreasonable effort or expense and without breach of confidentiality
obligations) necessary to verify the accuracy of information provided about the
Company.

     

    SECTION
3.7  Charter
Documents and Corporate Records. Parent and has heretofore delivered to
the Company true and complete copies of the certificate of incorporation,
by-laws and minute books, or comparable instruments, of Parent as in effect on
the date hereof.  A stock list certified by Parent’s Transfer Agent
has been made available to the Company for its inspection and the Parent
represents that such list to its knowledge is true and complete in all
respects.

    
      
         

      

      
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    SECTION
3.8  Assets
and Liabilities. The
Parent has no any Liabilities and no Assets.  To the best of Parent’s
knowledge the financial statements of Parent are in a condition that they can be
audited.

     

    SECTION
3.9  Absence
of Certain Changes.  Since December 31, 2008, Parent has
conducted its business in the ordinary course consistent with past practice and
except for this transaction as disclosed on Schedule 3.12 hereto
there has not been:

     

    (a)  Any
change in any method of accounting or accounting practice by
Parent;

     

    (b)  Any
increase in the compensation, commission, bonus or other direct or indirect
remuneration paid, payable or to become payable to any officer, stockholder,
director, consultant, agent or employee of Parent, or any alteration in the
benefits payable or provided to any thereof;

     

    (c)   Any
material adverse change in the relationship of Parent with its employees,
customers, suppliers or vendors;

     

    (d)   Except
for any changes made in the ordinary course of business, any material change in
any of Parent's business policies, including advertising, marketing, selling,
pricing, purchasing, personnel, returns or budget policies;

     

    (e)    Any
agreement or arrangement whether written or oral to do any of the foregoing;
and

     

    (f)     Parent
has no Liability that is past due.

     

    SECTION
3.10  Contracts.

     

    (a)  To
the knowledge of Parent there are no Contracts to which Parent is a party or by
which it or its assets are bound or subject that: (i) cannot be canceled upon 30
days' notice without the payment or penalty of less than One Thousand Dollars
($1,000); or (ii) involve aggregate annual future payments by or to any person
of more than Five Thousand Dollars ($5,000). True and complete copies of all
written Contracts (including all amendments thereto and waivers in respect
thereof) and summaries of the material provisions of all oral Contracts so
listed have been made available to the Company.

    
      
         

      

      
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    (b) All
Contracts to which Parent is a party, to the knowledge of Parent are valid,
subsisting, in full force and effect and binding upon Parent and the other
parties thereto, in accordance with their terms, except that no representation
or warranty is given as to the enforceability of any oral
Contracts.  To the best of Parent’s knowledge and belief, Parent is
not in default (or alleged default) under any such Contract.  All
Contracts to which the Company is a party are valid, subsisting, in full force
and effect and binding upon the Company and the other parties thereto, in
accordance with their terms, except that no representation or warranty is given
as to the enforceability of any oral Contracts.  The Parent is not in
default (or alleged default) under any such Contract.

     

    SECTION
3.11  Claims
and Proceedings. To the knowledge of Parent, there are no outstanding
Orders of any Governmental Body against or involving Parent, its assets or its
business. To the knowledge of Parent, there are no Claims (whether or not the
defense thereof or Liabilities in respect thereof are covered by insurance),
pending or, to the best of Parent's and  knowledge, threatened on the
date hereof, against or involving Parent, its assets or its
business.  The Parent is not subject to any SEC or FINRA order or
investigation and has no outstanding comments pending with the SEC or
FINRA.

     

    SECTION
3.12  Compliance with
Laws.  The Parent is not in violation of any Orders or any Laws
related to or promulgated under the Securities Act or the Exchange Act (15 USC §
78a et seq.) and to the
best of Parent’s knowledge, belief and information, any Laws of any Governmental
Bodies affecting Parent or the Parent Acquisition Stock.

     

    SECTION
3.13  Environmental
Matters. To the best of Parent’s knowledge, belief  and
information, Parent is, and at all times has been, in full compliance with, and
has not been and is not in violation of or liable under, any Environmental
Law.

     

    SECTION
3.14  Finders
Fees.  There is no investment banker, broker, finder or other
intermediary which has been retained by or is authorized to act on behalf of
Parent who might be entitled to any fee or commission from Parent in connection
with the consummation of the Contemplated Transactions.

     

    ARTICLE
IV

     

    COVENANTS
AND AGREEMENTS

     

    The
Company jointly and severally, covenant to Buyer and Parent, and Parent, jointly
and severally, covenant to the Company and Seller that:

     

    SECTION
4.1  Filings
and Authorizations.  The parties hereto shall cooperate and use
their respective best efforts to make, or cause to be made, all registrations,
filings, applications and submissions, to give all notices and to obtain all
governmental or other third party consents, transfers, approvals, Orders and
waivers necessary or desirable for the consummation of the Contemplated
Transactions in accordance with the terms of this Agreement; and shall furnish
copies thereof to each other party prior to such filing and shall not make any
such registration, filing, application or submission to which Parent or the
Company, as the case may be, reasonably objects in writing.  All such
filings shall comply in form and content in all material respects with
applicable Law.  The parties hereto also agree to furnish each other
with copies of such filings and any correspondence received from any
Governmental Body in connection therewith.

    
      
         

      

      
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    SECTION
4.2  Confidentiality.  Each
Party (the “Receiving
Party”) shall, and shall cause its respective Affiliates and
Representatives to (each such Affiliate or Representative of either the Company
or the Parent, as the case may be, a “Receiving Party
Representative”) to, maintain in confidence all information received from
the other Party or a Company (the “Disclosing Party”)
(other than disclosure to that Person’s Representatives in connection with the
evaluation and consummation of the Transactions), and such Disclosing Party’s
Affiliates or Representatives (as the case may be, a “Disclosing Party
Representative”) in connection with this Agreement or the transactions
contemplated by the Transaction Documents (including the existence and terms of
this Agreement and the such transactions) and use such information solely to
evaluate such transactions, unless i) such information can be shown to be
already known to the Receiving Party or a Receiving Party Representative before
the time of disclosure to such Person, ii) such information can be shown to be
subsequently disclosed to the Receiving Party or a Receiving Party
Representative by a third party that, to the knowledge of the Receiving Party or
such Receiving Party Representative, is not bound by a duty of confidentiality
to the Disclosing Party or any Disclosing Party Representative, iii) such
information is or becomes publicly available through no breach of this Agreement
by, or other fault of, the Receiving Party or any Receiving Party Representative
or iv) the Receiving Party or Receiving Party Representative in good faith
believes that the furnishing or use of such information is required by, or
necessary in connection with, any proceeding, Law or any listing or trading
agreement concerning its publicly traded securities (in which case the Receiving
Party or such Receiving Party Representative shall, as promptly as practicable,
advise the Disclosing Party in writing before making the disclosure and
cooperate with the Disclosing Party to limit the scope of such
disclosure).

     

    SECTION
4.3  Expenses. Parent and
the Company shall bear their respective expenses, in each case, incurred in
connection with the preparation, execution and performance of the Transaction
Documents and the Contemplated Transactions, including, without limitation, all
fees and expenses of their respective Representatives, and the Company shall
bear all the fees and expenses of any Company's Representatives.

     

    SECTION
4.4  Tax
Matters. The Company shall reasonably cooperate, and shall cause its
Representatives reasonably to cooperate, in preparing and filing all Tax
Returns, including maintaining and making available to each other all records
necessary in connection with the preparation and filing of Tax Returns, the
payment of Taxes and the resolution of Tax audits and Tax Deficiencies with
respect to all taxable periods.  Refunds or credits of Taxes that were
paid by the Company with respect to any periods shall be for the account of the
Company.

     

    SECTION
4.5  Further
Assurances.  At any time and from time to time after the date
of Closing, upon the reasonable request of any party hereto, the other
party(ies), shall do, execute, acknowledge and deliver, or cause to be done,
executed, acknowledged or delivered, all such further documents, instruments or
assurances, as may be necessary, desirable or proper to carry out the intent and
accomplish the purposes of this Agreement.

    
      
         

      

      
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    SECTION
4.6  Restricted
Securities.  The parties acknowledge and agree that the Company
Shares and Parent Acquisition Stock being issued or transferred pursuant to the
Contemplated Transactions are being issued or transferred pursuant to the
exemption from the registration requirements of the Securities Act and
constitute "restricted securities" within the meaning of the Securities
Act.  Such securities may not be transferred absent compliance with
the provisions of the Securities Act, other applicable Laws, and all stock
certificates evidencing such securities shall bear a legend to such effect and
to the effect that such shares are subject to the terms and provisions of this
Agreement; provided, however, that it is anticipated that for purposes of Rule
144 of the Securities Act, that the holding period of Parent Acquisition Stock
for each shareholder of the Company shall be determined to commence on the date
of acquisition of the Company Shares (as converted pursuant to this Agreement)
for each such respective holder.

     

    SECTION
4.7  Due
Diligence.  Prior to the Closing Date, Parent agrees that the
Company shall be entitled, through its Representatives, to make such
investigation of the properties, businesses and operations of Parent and such
examination of the books, records and financial condition of Parent, as the
Company reasonably deems necessary.  Any such investigation and
examination shall be conducted at reasonable times, under reasonable
circumstances and upon reasonable notice.  No investigation by Parent
shall diminish or obviate any of the representations, warranties, covenants or
agreements of Parent contained in this Agreement.

     

    ARTICLE
V

     

    CONDITIONS
TO CLOSING

     

    SECTION
5.1  Conditions to the
Obligations of the Parties.  The obligations of the Parties to
consummate the Contemplated Transactions are subject to the satisfaction of the
following conditions:

     

    (a)  No
Injunction.  No provision of any applicable Law and no Order
shall prohibit the consummation of the Contemplated Transactions.

     

    (b)  No Proceedings or
Litigation.  No Claim instituted by any person (other than the
Company, Shareholders or their respective Affiliates) shall have been commenced
or pending against any Shareholder, the Company or any of their respective
Affiliates, officers or directors, which Claim seeks to restrain, prevent,
change or delay in any respect the Contemplated Transactions or seeks to
challenge any of the terms or provisions of this Agreement or seeks damages in
connection with any of such transactions.

    
      
         

      

      
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    SECTION
5.2  Conditions to the
Obligations of the Company .  The obligations of the Company
hereunder to consummate the Contemplated Transactions are subject, at the option
of the Company, to the fulfillment prior to or at the Closing of each of the
following further conditions:

     

    (a) Performance.  Parent
shall have performed and complied in all material respects with all agreements,
obligations and covenants required by this Agreement to be performed or complied
with by it at or prior to the Closing Date.

     

    (b) Representations and
Warranties.  The representations and warranties of Parent
contained in this Agreement and in any certificate or other writing delivered by
Parent pursuant hereto shall be true in all material respects at and as of the
Closing Date as if made at and as of such time (except for those representations
and warranties made as of a specific date which shall be true in all material
respects as of the date made).

     

    (c)  No Material Adverse
Change.  From the date hereof through the Closing, there shall
not have occurred any event or condition that has had or could have a material
adverse effect on Parent.

     

    (d)  Documentation.  There
shall have been delivered to the Company the following:

     

    (i)           A
certificate, dated the Closing Date, of the Chairman of the Board and the
President of Parent confirming the matters set forth in Section 5.2(a) (b)
and (c) hereof; and

     

    (ii)          Parent
Acquisition Stock certificates, registered in the name of each Shareholder as
set forth on Schedule
1.9 attached hereto, (with the appropriate restrictive legends as
applicable), evidencing satisfaction of the Acquisition Purchase Price in
accordance with Section 1.9;

    

    SECTION
5.3  Conditions to the
Obligations of Parent.  All
obligations of Parent to consummate the Contemplated Transactions hereunder are
subject, at the option of Parent, to the fulfillment prior to or at the Closing
of each of the following further conditions:

     

    (a) Performance.  The
Company shall have performed and complied in all material respects with all
agreements, obligations and covenants required by this Agreement to be performed
or complied with by them at or prior to the Closing Date.

     

    (b) Representations and
Warranties.  The representations and warranties of the Company
contained in this Agreement and in any certificate or other writing delivered by
the Company pursuant hereto shall be true in all material respects at and as of
the Closing Date as if made at and as of such time (except for those
representations and warranties made as of a specific date which shall be true in
all material respects as of the date made).

    
      
         

      

      
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    (c)  No Material Adverse
Change.  From the date hereof through the Closing, there shall
not have occurred any event or condition that has had or could have a material
adverse effect on the Company.

     

    (d)  Documentation.  There
shall have been delivered to Parent the following:

     

    (i)           A
certificate, dated the Closing Date, of the Secretary of the Company certifying,
among other things, that attached or appended to such certificate: (i) is a
true and correct copy of the Company's certificate of incorporation and all
amendments thereto, if any, as of the date thereof certified by the Secretary of
State of the State of Delaware; and (ii) is a true and correct copy of the
Company's memorandum of association as of the date thereof;

     

    (ii)                  Company
Share certificates representing the number of Company Shares duly endorsed in
blank or accompanied by stock powers duly endorsed in blank and in suitable form
for transfer to Parent by delivery.

     

    ARTICLE
VI

     

    INDEMNIFICATION

     

    SECTION
6.1  Survival of Representations,
Warranties and Covenants.  Notwithstanding any right of Parent
fully to investigate the affairs of the Company and the rights of the Company to
fully investigate the affairs of Parent, and notwithstanding any knowledge of
facts determined or determinable by Parent and the Company, pursuant to such
investigation or right of investigation, Parent, the Company have the right to
rely fully upon the representations, warranties, covenants and agreements of the
Company, and Parent respectively, contained in this Agreement, or listed or
disclosed on any Schedule hereto or in any instrument delivered in connection
with or pursuant to any of the foregoing.  All such representations,
warranties, covenants and agreements shall survive the execution and delivery of
this Agreement and the Closing hereunder.  Notwithstanding the
foregoing, all representations and warranties of the Company, and Parent
respectively, contained in this Agreement, on any Schedule hereto or in any
instrument delivered in connection with or pursuant to this Agreement shall
terminate and expire twelve (12) months after the date of Closing; provided,
however, that liability any party shall not terminate as to any specific claim
or claims which arise or result from or are related to a Claim for
fraud.

     

    SECTION
6.2  Notice
and Opportunity to Defend Third Party Claims.

     

    (a) Within
ten (10) days following receipt by any party hereto (the "Indemnitee") of
notice of any demand, claim, circumstance or Tax audit which would or might give
rise to a claim, or the commencement (or threatened commencement) of any action,
proceeding or investigation that may result in a Loss (an "Asserted Liability"),
the Indemnitee shall give notice thereof (the "Claims Notice") to
the party or parties obligated to provide indemnification pursuant to Sections
6.2, or 6.3 (collectively, the "Indemnifying
Party").  The Claims Notice shall describe the Asserted
Liability in reasonable detail and shall indicate the amount (estimated, if
necessary, and to the extent feasible) of the Loss that has been or may be
suffered by the Indemnitee.

    
      
         

      

      
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    (b)  The
Indemnifying Party may elect to defend, at its own expense and with its own
counsel, any Asserted Liability unless: (i) the Asserted Liability includes
a Claim seeking an Order for injunction or other equitable or declaratory relief
against the Indemnitee, in which case the Indemnitee may at its own cost and
expense and at its option defend the portion of the Asserted Liability seeking
equitable or declaratory relief against the Indemnitee, or (ii) the
Indemnitee shall have reasonably, and in good faith, after consultation with the
Indemnifying Party, concluded that: (x) there is a conflict of interest
between the Indemnitee and the Indemnifying Party which could prevent or
negatively influence the Indemnifying Party from impartially or adequately
conducting such defense; or (y) the Indemnitee shall have one or more
defenses not available to the Indemnifying Party but only to the extent such
defense cannot legally be asserted by the Indemnifying Party on behalf of the
Indemnitee.  If the Indemnifying Party elects to defend such Asserted
Liability, it shall within ten (10) days (or sooner, if the nature of the
Asserted Liability so requires) notify the Indemnitee of its intent to do
so, and the Indemnitee shall cooperate, at the expense of the Indemnifying
Party, in the defense of such Asserted Liability.  If the Indemnifying
Party elects not to defend the Asserted Liability, is not permitted to defend
the Asserted Liability by reason of the first sentence of this
Section 6.4(b), fails to notify the Indemnitee of its election as herein
provided or contests its obligation to indemnify under this Agreement with
respect to such Asserted Liability, the Indemnitee may pay, compromise or defend
such Asserted Liability at the sole cost and expense of the Indemnifying
Party.  Notwithstanding the foregoing, neither the Indemnifying Party
nor the Indemnitee may settle or compromise any claim over the reasonable
written objection of the other, provided that the Indemnitee may settle or
compromise any claim as to which the Indemnifying Party has failed to notify the
Indemnitee of its election under this Section 6.4(b) or as to which
the Indemnifying Party is contesting its indemnification obligations
hereunder.  If the Indemnifying Party desires to accept a reasonable,
final and complete settlement of an Asserted Liability so that such Indemnitee’s
Loss is paid in full and the Indemnitee refuses to consent to such settlement,
then the Indemnifying Party’s liability to the Indemnitee shall be limited to
the amount offered in the settlement.  The Indemnifying Party will
exercise good faith in accepting any reasonable, final and complete settlement
of an Asserted Liability.  In the event the Indemnifying Party elects
to defend any Asserted Liability, the Indemnitee may participate, at its own
expense, in the defense of such Asserted Liability.  In the event the
Indemnifying Party is not permitted by the Indemnitee to defend the Asserted
Liability, it may nevertheless participate at its own expense in the defense of
such Asserted Liability.  If the Indemnifying Party chooses to defend
any Asserted Liability, the Indemnitee shall make available to the Indemnifying
Party any books, records or other documents within its control that are
necessary or appropriate for such defense.  Any Losses of any
Indemnitee for which an Indemnifying Party is liable for indemnification
hereunder shall be paid upon written demand therefor.

    
      
         

      

      
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    SECTION
6.3  Limits
on Indemnification.

     

    (a)  Notwithstanding
the foregoing or the limitations set forth in Section 6.5(b) below, in the event
such Losses arise out of any fraud related matter on the part of any
Indemnifying Party, then such Indemnifying Party shall be obligated to indemnify
the Indemnitee in respect of all such Losses.

     

    (b)  The
Company and Seller shall not be liable to indemnify Parent  pursuant
to Section 6.2 above and Parent shall not be liable to indemnify the
Company and Shareholders pursuant to Section 6.3 above: (i) unless a Claims
Notice describing the loss is delivered to the Indemnifying Party within 12
months after the Closing (except for Losses arising out of an Indemnifying
Party’s fraud); (ii) with respect to special, consequential or punitive damages;
and (iii) in respect of any individual Loss of less than $25,000.

     

    SECTION
6.4  Exclusive
Remedy.  The parties agree that the indemnification provisions
of this Article VI shall constitute the sole or exclusive remedy of any party in
seeking damages or other monetary relief with respect to this Agreement and the
Contemplated Transactions, provided that, nothing herein shall be construed to
limit the right of any party to seek: (i) injunctive relief for a breach of
this Agreement; (ii) legal or equitable relief for a Claim for fraud; or
(iii) indemnity under the bylaws of Parent if they are or have been a director
or officer of Parent.

     

    ARTICLE
VII

     

    SPECIFIC
PERFORMANCE; TERMINATION

     

    SECTION
7.1  Specific
Performance.  The Company and Parent, acknowledge and agree
that, if any of the Company or Parent, fails to proceed with the Closing in any
circumstance other than those described in clauses (a), (b), (c) or
(d) of Section 7.2 below, the others will not have adequate remedies
at law with respect to such breach.  In such event, and in addition to
each party's right to terminate this Agreement, each party shall be entitled,
without the necessity or obligation of posting a bond or other security, to seek
injunctive relief, by commencing a suit in equity to obtain specific performance
of the obligations under this Agreement or to sue for damages, in each case,
without first terminating this Agreement. The Company or Parent specifically
affirms the appropriateness of such injunctive, other equitable relief or
damages in any such action.

     

    SECTION
7.2   Termination.  This
Agreement may be terminated and the Contemplated Transactions may be abandoned
at any time prior to the Closing:

     

    (a)  By
mutual written consent of the Company and Parent;

     

    (b)  By
the Company if: (i) there has been a misrepresentation or breach of
warranty on the part of Parent in the representations and warranties contained
herein and such misrepresentation or breach of warranty, if curable, is not
cured within thirty days after written notice thereof from the Company,
respectively; (ii) Parent has committed a breach of any covenant imposed
upon it hereunder and fails to cure such breach within thirty days after written
notice thereof from the Company, respectively; or (iii) any condition to
the Company's  obligations under Section 5.2 becomes incapable of
fulfillment through no fault of the Company, respectively, and is not waived by
Parent;

    
      
         

      

      
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    (c)  By
Parent, if: (i) there has been a misrepresentation or breach of warranty on
the part of the Company in the representations and warranties contained herein
and such misrepresentation or breach of warranty, if curable, is not cured
within thirty days after written notice thereof from Parent, respectively; (ii)
the Company has committed a breach of any covenant imposed upon it hereunder and
fails to cure such breach within thirty days after written notice thereof from
Parent, respectively; or (iii) any condition to Parent’s obligations under
Section 5.3 becomes incapable of fulfillment through no fault of Parent and
is not waived by the Company; and

     

    (d)  By
the Company or Parent, if any condition under Section 5.1 becomes incapable
of fulfillment through no fault of the party seeking termination and is not
waived by the party seeking termination.

     

    SECTION
7.3  Effect
of Termination; Right to Proceed.  Subject to the provisions of
Section 7.1 hereof, in the event that this Agreement shall be terminated
pursuant to Section 7.2, all further obligations of the parties under this
Agreement shall terminate without further liability of any party hereunder
except that: (i) the agreements contained in Section 4.2 shall survive the
termination hereof; and (ii) termination shall not preclude any party from
seeking relief against any other party for breach of Section 4.2.  In
the event that a condition precedent to its obligation is not met, nothing
contained herein shall be deemed to require any party to terminate this
Agreement, rather than to waive such condition precedent and proceed with the
Contemplated Transactions.

     

    ARTICLE
VIII

     

    MISCELLANEOUS

     

    SECTION
8.1  Representations and
Warranties for Purposes of this Agreement Only.  The
representations and warranties in this Agreement were made for the purposes of
allocated contractual risk between the parties and not as a means of
establishing facts.  This Agreement may have different standards of
materiality than standards of materiality under applicable securities
laws.  Only parties to this Agreement and specified third-party
beneficiaries (if any) have a right to enforce this Agreement

     

    SECTION
8.2  Notices.  (a)
 Any notice or other communication required or permitted hereunder shall be
in writing and shall be delivered personally by hand or by recognized overnight
courier, or mailed (by registered or certified mail, postage prepaid return
receipt requested):

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    (b)  Each
such notice or other communication shall be effective when delivered at the
address specified in Section 8.1(a).  Any party by notice given
in accordance with this Section 8.1 to the other parties may designate
another address or person for receipt of notices hereunder.  Notices
by a party may be given by counsel to such party.

     

    SECTION
8.3  Entire
Agreement.  This Agreement (including the Schedules and
Exhibits hereto) and the collateral agreements executed in connection with
the consummation of the Contemplated Transactions contain the entire agreement
among the parties with respect to the subject matter hereof and related
transactions and supersede all prior agreements, written or oral, with respect
thereto.

     

    SECTION
8.4   Waivers and Amendments;
Non-Contractual Remedies; Preservation of Remedies.  This
Agreement may be amended, superseded, cancelled, renewed or extended only by a
written instrument signed by the Company and Parent. The provisions hereof may
be waived in writing by the Company or Parent, as the case may
be.  Any such waiver shall be effective only to the extent
specifically set forth in such writing.  No failure or 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 other or further exercise
thereof or the exercise of any other such right, power or
privilege.  Except as otherwise provided herein, 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.

     

    SECTION
8.5   Governing
Law.  This Agreement shall be governed and construed in
accordance with the laws of the State of Delaware applicable to agreements made
and to be performed entirely within such State without regard to the conflict of
laws rules thereof.

     

    SECTION
8.6   Binding Effect; No
Assignment.  This Agreement and all of its provisions, rights
and obligations shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors, heirs and legal
representatives.  This Agreement may not be assigned (including by
operation of Law) by any party hereto without the express written consent of the
Company or the Parent and any purported assignment, unless so consented to,
shall be void and without effect.

     

    SECTION
8.7    Exhibits.  All
Exhibits and Schedules attached hereto are hereby incorporated by reference
into, and made a part of, this Agreement.

     

    SECTION
8.8   Severability.  If
any provision of this Agreement for any reason shall be held to be illegal,
invalid or unenforceable, such illegality shall not affect any other provision
of this Agreement, this Agreement shall be amended so as to enforce the illegal,
invalid or unenforceable provision to the maximum extent permitted by applicable
law, and the parties shall cooperate in good faith to further modify this
Agreement so as to preserve to the maximum extent possible the intended benefits
to be received by the parties.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    SECTION
8.9  Counterparts.  The
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original as against any party whose signature appears thereon,
and all of which shall together constitute one and the same
instrument.  This Agreement shall become binding when one or more
counterparts hereof, individually or taken together, shall bear the signatures
of all of the parties reflected hereon as the signatories.

     

    SECTION
8.10  Third
Parties.  Except as specifically set forth or referred to
herein, nothing herein express or implied is intended or shall be construed to
confer upon or give to any person other than the parties hereto and their
permitted heirs, successors, assigns and legal representatives, any rights or
remedies under or by reason of this Agreement or the Contemplated
Transactions.

     

    ARTICLE
IX

     

    DEFINITIONS

     

    SECTION
9.1  Definitions.  The
following terms, as used herein, have the following meanings:

     

    "Affiliate" of any
person means any other person directly or indirectly through one or more
intermediary persons, controlling, controlled by or under common control with
such person.

     

    "Agreement" or "this Agreement" shall
mean, and the words "herein", "hereof" and "hereunder" and words
of similar import shall refer to, this agreement as it from time to time may be
amended.

     

    "Assets" shall mean
all cash, instruments, properties, rights, interests and assets of every kind,
real, personal or mixed, tangible and intangible, used or usable in the
Business.

     

    The term
"audit" or
"audited" when
used in regard to financial statements shall mean an examination of the
financial statements by a firm of independent certified public accountants in
accordance with generally accepted auditing standards for the purpose of
expressing an opinion thereon.

     

    "Business" shall mean
the ownership and operation of the business of the Company.

     

    "Condition of the
Business" shall mean the financial condition, prospects or the results of
operations of the Business, the Assets or the Company.

     

    "Contract" shall mean
any contract, agreement, indenture, note, bond, lease, conditional sale
contract, mortgage, license, franchise, instrument, commitment or other binding
arrangement, whether written or oral.

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    The term
"control", with
respect to any person, shall mean the power to direct the management and
policies of such person, directly or indirectly, by or through stock ownership,
agency or otherwise, or pursuant to or in connection with an agreement,
arrangement or understanding (written or oral) with one or more other
persons by or through stock ownership, agency or otherwise; and the terms "controlling" and
"controlled"
shall have meanings correlative to the foregoing.

     

    "GAAP" shall mean
generally accepted accounting principles in effect on the date
hereof  (or, in the case of any opinion rendered in connection with an
audit, as of the date of the opinion) as set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession of the
United States.

     

    "Governmental Bodies"
shall mean any government, municipality or political subdivision thereof,
whether federal, state, local or foreign, or any governmental or
quasi-governmental agency, authority, board, bureau, commission, department,
instrumentality or public body, or any court, arbitrator, administrative
tribunal or public utility.

     

    "knowledge" with
respect to: (a) any individual shall mean actual knowledge of such
individual; and (b) any corporation shall mean the actual knowledge of the
directors and executive officers of such corporation; and "knows" and “known” has a
correlative meaning.  The terms "any Shareholder's knowledge," and
"Shareholder's knowledge," including any correlative meanings, shall mean the
knowledge of any Shareholder.

     

    "Laws" shall mean any
law, statute, code, ordinance, rule, regulation or other requirement of any
Governmental Bodies.

     

    "Liability" shall mean
any direct or indirect indebtedness, liability, assessment, claim, loss, damage,
deficiency, obligation or responsibility, fixed or unfixed, choate or inchoate,
liquidated or unliquidated, secured or unsecured, accrued, absolute, actual or
potential, contingent or otherwise (including any liability under any
guaranties, letters of credit, performance credits or with respect to insurance
loss accruals).

     

    "Lien" shall mean any
mortgage, lien (including mechanics, warehousemen, laborers and landlords
liens), claim, pledge, charge, security interest, preemptive right, right of
first refusal, option, judgment, title defect, covenant, restriction, easement
or encumbrance of any kind.

     

    "person" shall mean an
individual, corporation, partnership, joint venture, limited liability company,
association, trust, unincorporated organization or other entity, including a
government or political subdivision or an agency or instrumentality
thereof.

     

    "Receivables" shall
mean as of any date any trade accounts receivable, notes receivable, sales
representative advances and other miscellaneous receivables of the
Company.

     

    “Representative”
means, with respect to a particular Person, any director, officer, employee,
agent, consultant, advisor or other representative of such Person, including
legal counsel, accountants and financial advisors.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    "Tax" (including, with
correlative meaning, the terms "Taxes" and "Taxable") shall
mean: (i)(A) any net income, gross income, gross receipts, sales, use, ad
valorem, transfer, transfer gains, franchise, profits, license, withholding,
payroll, employment, excise, severance, stamp, rent, recording, occupation,
premium, real or personal property, intangibles, environmental or windfall
profits tax, alternative or add-on minimum tax, customs duty or other tax, fee,
duty, levy, impost, assessment or charge of any kind whatsoever (including but
not limited to taxes assessed to real property and water and sewer rents
relating thereto), together with; (B) any interest and any penalty,
addition to tax or additional amount imposed by any Governmental Body (domestic
or foreign) (a "Tax
Authority") responsible for the imposition of any such tax and
interest on such penalties, additions to tax, fines or additional amounts, in
each case, with respect to any party hereto, the Business or the Assets (or the
transfer thereof); (ii) any liability for the payment of any amount of the
type described in the immediately preceding clause (i) as a result of a
party hereto being a member of an affiliated or combined group with any other
person at any time on or prior to the date of Closing; and (iii) any
liability of a party hereto for the payment of any amounts of the type described
in the immediately preceding clause (i) as a result of a contractual
obligation to indemnify any other person.

     

    "Tax Return" shall
mean any return or report (including elections, declarations, disclosures,
schedules, estimates and information returns) required to be supplied to
any Tax Authority.

     

    "Transaction
Documents" shall mean, collectively, this Agreement, and each of the
other agreements and instruments to be executed and delivered by all or some of
the parties hereto in connection with the consummation of the transactions
contemplated hereby.

     

    SECTION
9.2  Interpretation.  Unless
the context otherwise requires, the terms defined in this Agreement shall be
applicable to both the singular and plural forms of any of the terms defined
herein.  All accounting terms defined in this Agreement, and those
accounting terms used in this Agreement except as otherwise expressly provided
herein, shall have the meanings customarily given thereto in accordance with
GAAP as of the date of the item in question.  When a reference is made
in this Agreement to Sections, such reference shall be to a Section of this
Agreement unless otherwise indicated.  The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.  The use of the neuter
gender herein shall be deemed to include the masculine and feminine genders
wherever necessary or appropriate, the use of the masculine gender shall be
deemed to include the neuter and feminine genders and the use of the feminine
gender shall be deemed to include the neuter and masculine genders wherever
necessary or appropriate.  Whenever the words "include", "includes" or
"including" are used in this Agreement, they shall be deemed to be followed by
the words "without limitation."

     

    [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
undersigned have executed this Stock Purchase and Recapitalization Agreement as
of the date set forth above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        THE
      COMPANY:

                                      
	
                                        TRIAD
      THERAPEUTICS, INC.

                                      
	 
      	 
      	 
	
                                        By:  

                                      	 
      	 
	
                                        Name:

                                      	 
	
                                        Title:

                                      	 
	 
      	 
      	 
	
                                        MONOGRAM
      ENERGY, INC.

                                      	 
	 
      	 
      	 
	
                                        By:

                                      	 
      	 
	 	

                                        Name:

                                      	 
	 	

                                        Title:

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    Schedule
2.10

    

    (i)           The
Company has received a notice of levy from the Internal Revenue Service in the
amount of $180,000.

     

    (ii)          The
Company has a hearing with its landlord (the Denholtz Group) regarding
outstanding obligations under its lease in the approximate amount of
$36,000.

     

    (iii)         The
Company has a liability to Amifill Healthcare in the amount of
$32,000.

     

    (iv)         The
Company has a liability to Integrated Medical Systems of
$38,000.

     

    (v)          The
Company has a liability to Cardinal Health Pharmacy Distribution of
$10,500.

     

    (vi)         The
Company has a liability to Fairfield Properties of $26,500.

     

    (vii)        The Company
has a liability to Jenna P, Inc. of $13,000.

     

    Schedule
2.11

     

    (i)           The
Company has a five year lease for its executive offices.

     

    Schedule
2.12

     

    (i)           The
Company has certain office furniture and equipment with a value as stated on its
June 30, 2009 balance sheet.

     

    Schedule 2.13
(a)

     

    
      	
               
      

            	
              (i)

            	
              The
      Company has a software license with Definitive Home Care
      Solutions.

            

    

     

    Schedule
2.16

     

    (i)           The
Company has outstanding federal and New Jersey payroll taxes of $193,000 as of
the date hereof which amount includes interest and penalties.

    
      
         

      

      
        27

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