Document:

EXHIBIT
      10.1

    Dutchess
      Private Equities Fund, II, L.P.

    

    

    August
      18, 2006

    

    

    Securac
      Corp.

    Suite
      100, 301-14th
      Street
      NW

    Calgary,
      Alberta T2N 2A1

    Attn:
      Mr.
      Paul Hookham

    

    
      	
            	Re:	
              Payoff
                and Settlement Letter 

            

    

    

    Dear
      Mr.
      Hookham:

    

    Reference
      is made to that certain Debenture Agreement, Security Agreement, Debenture
      Registration Rights Agreement, Subscription Agreement and Escrow Agreement,
      each
      effective as of September 30, 2005 (as heretofore amended, the “Transaction
      Documents”),
      between Securac Corp. (the “Borrower”
or
      “you”)
      and
      Dutchess Private Equities Fund, II, L.P. (the “Holder”
or
      “we”)
      (sometimes hereinafter the Borrower and the Holder are referred to collectively
      as the "parties").
      Capitalized terms used herein and not otherwise defined herein shall have the
      respective meanings set forth in the Transaction Documents, and are incorporated
      by reference. Copies of the Transaction Documents are attached as exhibits
      10.1
      through 10.4 and 10.8 to the Borrower’s Current Report on Form 8-K filed with
      the Securities and Exchange Commission on October 6, 2005.

    

    The
      parties are entering into this agreement to settle a dispute regarding amounts
      claimed to be owing by Borrower to Holder under the Transaction Documents and
      to
      avoid unnecessary expense associated with litigation and a protracted resolution
      of such dispute. 

     

    The
      Borrower and the Holder hereby agree that upon satisfaction of each of the
      following (the “Closing Date”), which is anticipated to occur on or about
      September 8, 2006:

    

    (i)
      payment in immediately available funds of $441,344.14, representing principal,
      interest and redemption premium owing as of the date hereof on the Debenture,
      plus interest accruing on the principal amount thereof from the date hereof
      until the date of payment in the daily amount of $117.00 (the “Payout
      Amount”)
      by
      wire transfer to Holder’s bank account: [intentionally omitted];

    

    (ii)
      delivery of instructions by the Borrower to the escrow agent under the Escrow
      Agreement referred to above instructing the escrow agent to release all 909,090
      shares of common stock of the Borrower held thereunder to the Holder (“Debenture
      Shares”), it being understood that the Debenture is being
      converted/recapitalized as of the Closing Date with respect to all penalties
      and
      other amounts owing under the Debenture in excess of the Payoff Amount and
      that
      such shares are being released to satisfy such conversion/recapitalization
      (accompanied by a letter to Holder from Borrower’s counsel confirming its view
      as to the commencement of the Rule 144 holding period with respect to such
      shares beginning on October 31, 2006, and its willingness to deliver a Rule
      144
      opinion to that effect following receipt of reasonable and customary Rule 144
      supporting documentation demonstrating compliance with the other provisions
      of
      the Rule (such letter and opinion also to cover the shares underlying the
      warrants referred to below, assuming cashless exercise); and

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (iii)
      delivery of certificates evidencing an aggregate of 1,000,000 Pledged Shares
      (as
      defined under the above-referenced Security Agreement) registered in the name
      of
      the holders, accompanied by stock powers duly executed in blank, in form
      sufficient to transfer the same to the Holder, (it being understood that we
      shall be entitled to piggyback registration rights, for all Debenture Shares
      and
      Pledged Shares then held by us in excess of one percent of Borrower’s total
      outstanding shares and not then saleable under Rule 144(k),with respect to
      the
      next registration statement filed by you on a form for which such shares are
      eligible to be included, as determined by SEC rules and regulations;

    

    all
      of
      your liabilities and obligations to us, including those arising under the
      Transaction Documents, shall have been deemed satisfied and paid in full,
      and:

    

    (i) all
      of
      our liens on, and security interests in, all of the assets and properties of
      the
      Borrower and any other assets or properties pledged to us for the benefit of
      the
      Borrower, shall terminate automatically; and we hereby authorize you or any
      person authorized by you to file termination statements for any Uniform
      Commercial Code Financing Statements, or comparable forms, in any jurisdiction
      listing the Holder as a secured party and the Borrower as a debtor without
      any
      further action by us; and we also hereby agree to promptly, but in any event
      within three business days after the date hereof, deliver to you or as you
      shall
      direct any of your or such other person’s assets that we are holding as Pledged
      Property;

    

    (ii) all
      of
      your obligations to us under the Transaction Documents, shall terminate
      automatically; and

    

    (iii) the
      warrants issued by you to us to purchase 181,819 shares of your common stock
      pursuant to that certain warrant agreement dated as of September 30, 2005 (the
      “Warrant
      Agreement”)
      shall
      be deemed automatically amended such that (A) the Exercise Price shall be equal
      to the closing bid price of your common stock on the business day preceding
      the
      Closing Date and the number of underlying shares shall remain at 181,819 and
      (B)
      you shall be relieved of any and all registration obligations with respect
      to
      the Warrant Agreement and, in lieu thereof, we shall be entitled to piggyback
      registration rights, for the underlying shares in excess of one percent of
      the
      Borrower’s total outstanding shares and not then saleable under Rule 144(k)
      assuming a cashless exercise, with respect to the next registration statement
      filed by you on a form for which our shares are eligible to be included, as
      determined by SEC rules and regulations. (Except as modified hereby, the terms
      of the Warrant Agreement shall remain unchanged).

    

    In
      furtherance of the foregoing, upon receipt of the Payout Amount and the other
      deliveries referred to above, Holder and Borrower, and their respective
      officers, directors, stockholders, attorneys, members, agents, representatives,
      employees, subsidiaries, affiliates, partners, predecessors and successors
      in
      interest, and assigns and all other persons, firms or corporations with whom
      any
      of the former have been, or are now, affiliated (hereinafter “Releasors”) hereby
      completely release and forever discharge each other and their respective
      officers, directors, stockholders, attorneys, members, agents, representatives,
      employees, subsidiaries, affiliates, partners, predecessors and successors
      in
      interest, and assigns and all other persons, firms, associations or corporations
      with whom any of the former have been, or are now, affiliated (hereinafter
      “Releasees”) of and from any and all past and present claims, demands, actions,
      causes of action, debts and dues both in law and in equity of any nature or
      description whatsoever, whether now known or unknown, anticipated or
      unanticipated, asserted or unasserted, whether based on statute, contract,
      tort,
      or otherwise, on account of or in any way growing out of, related to, resulting
      or to result from the Transaction Documents. Holder agrees to execute and
      deliver from time to time after receipt of the Payoff Amount and other
      deliveries referred to above any documents, at your expense, as shall be
      reasonably requested by you to evidence such release and termination. This
      letter agreement shall be a fully binding and complete settlement and release
      between the Holder, Borrower and Releasees with respect to the matters addressed
      herein upon receipt by Holder of the Payoff Amount and other deliveries referred
      to above. 

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    The
      parties warrant and represent that:

    

    
      	 	
              (i)

            	
              the
                parties have been fully informed and have full knowledge of the terms,
                conditions, and effects of this agreement, and have read this agreement
                and are executing it under advice of
                counsel;

            

    

    

    
      	 	
              (ii)

            	
              the
                parties have investigated, to each party’s satisfaction, all of the facts
                surrounding the various claims, controversies, and disputes and are
                satisfied with the terms and effects of this
                agreement;

            

    

    

    
      	 	
              (iii)

            	
              the
                parties have executed and agreed to this agreement as a complete
                compromise of matters involving disputed issues of law and fact and
                fully
                assume the risk that the facts or law may be other than they believe;
                and

            

    

    

    
      	 	
              (iv)

            	
              no
                relative, or other person or entity, has or has had any interest
                in the
                claims, demands, obligations, or causes of action referred to in
                this
                agreement; that they have the sole right and exclusive authority
                to
                execute this agreement and pay or receive the sums specified in it;
                and
                that they have not sold, assigned, transferred, conveyed or otherwise
                disposed of any of the claims, demands, obligations or causes of
                actions
                referred to in this agreement.

            

    

    

    The
      Borrower acknowledges that its failure to timely (i) instruct it's consultants
      including but not limited to: Borrower's Counsel and transfer agent ("Borrower's
      Agents"), to use it's commercially reasonable best efforts to comply with the
      Holder's Rule 144 sales and (ii) satisfy the piggyback registration obligations
      referred to herein will cause the Holder to suffer irreparable harm and that
      the
      actual damage to the Holder will be difficult to ascertain. Accordingly, the
      parties agree that it is appropriate to include in this Settlement Agreement,
      a
      provision for liquidated damages. The parties acknowledge and agree that the
      liquidated damages provision set forth in this section represents the parties’
good faith effort to quantify such damages and, as such, agree that the form
      and
      amount of such liquidated damages are reasonable and do not constitute a
      penalty. The payment of liquidated damages shall not relieve the Borrower from
      such obligations. The Holder shall have the right to charge the Borrower five
      thousand dollars ($5,000) per day for failure by the Borrower or the Borrower's
      Agents to act in a timely manner for the obligations described
      herein.

    

    We
      hereby
      acknowledge that all share calculations discussed herein shall include the
      total
      aggregate amount of Pledged Shares, Debenture Shares or shares underlying the
      Warrant then held by us.

    

    The
      parties agree and acknowledge that this agreement is a full and complete
      compromise of all matters involving disputed issues and that neither this
      agreement nor the negotiations for this settlement (including all statements,
      admissions or communications) by Holder or Borrower or their attorneys or
      representatives shall be considered admissions by any of said parties, and
      that
      no past or present wrongdoing or liability on the part of any party shall be
      implied by such settlement or negotiations.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    Please
      indicate your agreement to the foregoing by signing in the space provided below.
      This agreement may be executed in any number of counterparts, each of which
      when
      so executed and delivered shall be deemed to be but one and the same agreement.
      Delivery by any party hereto of a signature page to this agreement by facsimile
      shall be effective as delivery of a counterpart manually executed by such party
      of this agreement. This agreement shall be governed by the laws of the State
      of
      New York without giving effect to its choice of law principles.

    

    
      	 	Very truly yours, 
	 	 
	 	DUTCHESS PRIVATE EQUITIES FUND,
              II,
              L.P. 
	 	 
	 	BY: ITS GENERAL PARTNER
              DUTCHESS 
	 	
              CAPITAL
                MANAGEMENT, LLC 

            
	 	 
	 	By: /s/
              Douglas H. Leighton 
	 	Name: Douglas H.
              Leighton 
	 	Title: A Managing
              Member 

    

    

    
      	AGREED: 	 	 	 
	 	 	 	 
	SECURAC
              CORP.	 	 	
            
	
              By: /s/
                Terry Allen

              Name:
                Terry Allen
Title: CEO

            	 	 	By: /s/
              Paul Hookham
Name: Paul Hookham
Title:
              CFO

    

     

    
      
         

      

      
        4Share
      Exchange Agreement

     

    This
      Share Exchange Agreement, dated as of September 8, 2006, is made by and among
      Advanced Medical Institute Inc., a Nevada corporation (the “Acquiror Company”),
      Worldwide PE Patent Holdco Pty Limited (ACN 117 157 727), a company formed
      in
      Australia (the “Company”) and
      each of
      the Persons listed on Exhibit A hereto (collectively, the “Shareholders”, and
      individually a “Shareholder”).
      

     

    BACKGROUND

     

    The
      Shareholders have agreed to transfer to the Acquiror Company, and the Acquiror
      Company has agreed to acquire from the Shareholders, all of the Shares, which
      Shares constitute 100% of the outstanding capital stock of the Company, in
      exchange for the aggregate of A$3 million (approximately US$2.25 million) and
      16,125,000 shares of the Acquiror Company’s Common Stock to be issued on the
      Closing Date (the “Acquiror Company Shares”), which Acquiror Company Shares
      shall constitute 30.14% of the issued and outstanding shares of Acquiror
      Company’s Common Stock immediately after the closing of the transactions
      contemplated herein, in each case, on the terms and conditions as set forth
      herein.

     

    SECTION
      I

    DEFINITIONS

     

    Unless
      the context otherwise requires, the terms defined in this Section 1 will have
      the meanings herein specified for all purposes of this Agreement, applicable
      to
      both the singular and plural forms of any of the terms herein
      defined.

     

    1.1 “Accredited
      Investor” has the meaning set forth in Regulation D under the Securities Act and
      set forth on Exhibit B.

     

    1.2 “Acquired
      Companies” means, collectively, the Company and the Company Subsidiaries (if
      any).

     

    1.3 “Acquiror
      Company Balance Sheet” means the Acquiror Company’s audited balance sheet at
      June 30, 2005.

     

    1.4 “Acquiror
      Company Board” means the Board of Directors of the Acquiror
      Company.

     

    1.5 “Acquiror
      Company Common Stock” means the Acquiror Company’s common stock, par value US
      $0.001 per share.

     

    1.6 “Acquiror
      Company Shares” means the Acquiror Company Common Stock being issued to the
      Shareholders pursuant hereto.

     

    1.7 “Affiliate”
      means any Person that directly or indirectly controls, is controlled by or
      is
      under common control with the indicated Person.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.8 “Agreement”
      means this Share Exchange Agreement, including all Schedules and Exhibits
      hereto, as this Share Exchange Agreement may be from time to time amended,
      modified or supplemented.

     

    1.9 “Closing
      Date” has the meaning set forth in Section 3.

     

    1.10 “Code”
      means the Internal Revenue Code of 1986, as amended.

     

    1.11 “Common
      Stock” means the Company’s common shares, US $0.001 nominal or par value per
      share.

     

    1.12 “Commission”
      means the Securities and Exchange Commission or any other federal agency then
      administering the Securities Act.

     

    1.13 “Company
      Board” means the Board of Directors of the Company.

     

    1.14 “Company
      Indemnified Party” has the meaning set forth in Section 10.3.

     

    1.15 “Company
      Subsidiaries” means all of the direct and indirect Subsidiaries of the
      Company.

     

    1.16 “Covered
      Persons” means all Persons, other than Acquiror Company, who are parties to
      indemnification and employment agreements with Acquiror Company existing on
      or
      before the Closing Date.

     

    1.17 “Damages”
      means any costs or expenses (including attorneys’ fees), judgments, fines,
      losses, claims, damages, liabilities and amounts paid in settlement in
      connection with any Proceeding (x) arising out of or pertaining to the
      transactions contemplated by this Agreement or (y) otherwise with respect
      to any acts or omissions occurring at or prior to the Closing Date.

     

    1.18 “Distributor”
      means any underwriter, dealer or other Person who participates, pursuant to
      a
      contractual arrangement, in the distribution of the securities offered or sold
      in reliance on Regulation S.

     

    1.19 “Equity
      Security” means any stock or similar security, including, without limitation,
      securities containing equity features and securities containing profit
      participation features, or any security convertible into or exchangeable for,
      with or without consideration, any stock or similar security, or any security
      carrying any warrant, right or option to subscribe to or purchase any shares
      of
      capital stock, or any such warrant or right.

     

    1.20 “Exchange”
      has the meaning set forth in Section 2.1.

     

    1.21 “Exchange
      Act” means the Securities Exchange Act of 1934 or any similar federal statute,
      and the rules and regulations of the Commission thereunder, all as the same
      will
      then be in effect.

     

    1.22 “Exhibits”
      means the several exhibits referred to and identified in this
      Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.23 “GAAP”
      means, with respect to any Person, United States generally accepted accounting
      principles applied on a consistent basis with such Person’s past
      practices.

     

    1.24 “Governmental
      Authority” means any federal or national, state or provincial, municipal or
      local government, governmental authority, regulatory or administrative agency,
      governmental commission, department, board, bureau, agency or instrumentality,
      political subdivision, commission, court, tribunal, official, arbitrator or
      arbitral body, in each case whether U.S. or non-U.S.

     

    1.25 “Indebtedness”
      means any obligation, contingent or otherwise. Any obligation secured by a
      Lien
      on, or payable out of the proceeds of, or production from, property of the
      relevant party will be deemed to be Indebtedness.

     

    1.26 “Intellectual
      Property” means all industrial and intellectual property, including, without
      limitation, all U.S. and non-U.S. patents, patent applications, patent rights,
      trademarks, trademark applications, common law trademarks, Internet domain
      names, trade names, service marks, service mark applications, common law service
      marks, and the goodwill associated therewith, copyrights, in both published
      and
      unpublished works, whether registered or unregistered, copyright applications,
      franchises, licenses, know-how, trade secrets, technical data, designs, customer
      lists, confidential and proprietary information, processes and formulae, all
      computer software programs or applications, layouts, inventions, development
      tools and all documentation and media constituting, describing or relating
      to
      the above, including manuals, memoranda, and records, whether such intellectual
      property has been created, applied for or obtained anywhere throughout the
      world
      and includes, in the case of the Company, those patents listed on Schedule
      5.13
      attached hereto.

     

    1.27 “Indemnified
      Parties” has the meaning set forth in Section 6.1.1.

     

    1.28 “Laws”
      means, with respect to any Person, any U.S. or non-U.S. federal, national,
      state, provincial, local, municipal, international, multinational or other
      law
      (including common law), constitution, statute, code, ordinance, rule, regulation
      or treaty applicable to such Person.

     

    1.29 “Lien”
      means any mortgage, pledge, security interest, encumbrance, lien or charge
      of
      any kind, including, without limitation, any conditional sale or other title
      retention agreement, any lease in the nature thereof and the filing of or
      agreement to give any financing statement under the Uniform Commercial Code
      of
      any jurisdiction and including any lien or charge arising by Law.

     

    1.30 “Loan
      and
      Security Documents” means the loan and security documents listed on Exhibit
      F.

     

    1.31 “Material
      Acquiror Company Contract” means any and all agreements, contracts,
      arrangements, leases, commitments or otherwise, of the Acquiror Company, of
      the
      type and nature that the Acquiror Company is required to file with the
      Commission. 

     

    1.32 “Material
      Adverse Effect” means, when used with respect to the Acquiror Company or the
      Acquired Companies, as the case may be, any change, effect or circumstance
      which, individually or in the aggregate, would reasonably be expected to (a)
      have a material adverse effect on the business, assets, financial condition
      or
      results of operations of the Acquiror Company or the Acquired Companies, as
      the
      case may be, in each case taken as a whole or (b) materially impair the
      ability of the Acquiror Company or the Company, as the case may be, to perform
      their obligations under this Agreement, excluding any change, effect or
      circumstance resulting from (i) the announcement, pendency or consummation
      of
      the transactions contemplated by this Agreement, (ii) changes in the United
      States securities markets generally, or (iii) changes in general economic,
      currency exchange rate, political or regulatory conditions in industries in
      which the Acquiror Company or the Acquired Companies, as the case may be,
      operate.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    1.33 “Order”
      means any award, decision, injunction, judgment, order, ruling, subpoena, or
      verdict entered, issued, made, or rendered by any Governmental
      Authority.

     

    1.34 “Organizational
      Documents” means (a) the articles or certificate of incorporation and the
      by-laws or code of regulations of a corporation; (b) the partnership agreement
      and any statement of partnership of a general partnership; (c) the limited
      partnership agreement and the certificate of limited partnership of a limited
      partnership; (d) the articles or certificate of formation and operating
      agreement of a limited liability company; (e) any other document performing
      a
      similar function to the documents specified in clauses (a), (b), (c) and (d)
      adopted or filed in connection with the creation, formation or organization
      of a
      Person; and (f) any and all amendments to any of the foregoing.

     

    1.35 “Permitted
      Liens” means (a) Liens for Taxes not yet payable or in respect of which the
      validity thereof is being contested in good faith by appropriate proceedings
      and
      for the payment of which the relevant party has made adequate reserves; (b)
      Liens in respect of pledges or deposits under workmen’s compensation laws or
      similar legislation, carriers, warehousemen, mechanics, laborers and materialmen
      and similar Liens, if the obligations secured by such Liens are not then
      delinquent or are being contested in good faith by appropriate proceedings
      conducted and for the payment of which the relevant party has made adequate
      reserves; (c) statutory Liens incidental to the conduct of the business of
      the relevant party which were not incurred in connection with the borrowing
      of
      money or the obtaining of advances or credits and that do not in the aggregate
      materially detract from the value of its property or materially impair the
      use
      thereof in the operation of its business; and (d) Liens that would not have
      a
      Material Adverse Effect.

     

    1.36 “Person”
      means all natural persons, corporations, business trusts, associations,
      companies, partnerships, limited liability companies, joint ventures and other
      entities, governments, agencies and political subdivisions.

     

    1.37 “Proceeding”
      means any action, arbitration, audit, hearing, investigation, litigation, or
      suit (whether civil, criminal, administrative or investigative) commenced,
      brought, conducted, or heard by or before, or otherwise involving, any
      Governmental Authority.

     

    1.38 “Regulation
      S” means Regulation S under the Securities Act, as the same may be amended from
      time to time, or any similar rule or regulation hereafter adopted by the
      Commission.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    1.39 “Rule
      144” means Rule 144 under the Securities Act, as the same may be amended from
      time to time, or any successor statute.

     

    1.40 “Schedules”
      means the several schedules referred to and identified herein, setting forth
      certain disclosures, exceptions and other information, data and documents
      referred to at various places throughout this Agreement.

     

    1.41 “SEC
      Documents” means all reports
      and other documents required to be filed by the Acquiror Company under the
      Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
      three (3) years preceding the date hereof (or such shorter period as the
      Acquiror Company was required by law to file such material).

     

    1.42 “Section
      4(2)” means Section 4(2) under the Securities Act, as the same may be amended
      from time to time, or any successor statute.

     

    1.43 “Securities
      Act” means the Securities Act of 1933, as amended, or any similar federal
      statute, and the rules and regulations of the Commission thereunder, all as
      the
      same will be in effect at the time.

     

    1.44 “Shares”
      means the 165,250,000 issued and outstanding ordinary shares of the
      Company.

     

    1.45 “Subsidiary”
      means, with respect to any Person, any corporation, limited liability company,
      joint venture or partnership of which such Person (a) beneficially owns, either
      directly or indirectly, more than 50% of (i) the total combined voting power
      of
      all classes of voting securities of such entity, (ii) the total combined equity
      interests, or (iii) the capital or profit interests, in the case of a
      partnership; or (b) otherwise has the power to vote or to direct the voting
      of
      sufficient securities to elect a majority of the board of directors or similar
      governing body.

     

    1.46 “Survival
      Period” has the meaning set forth in Section 10.1.

     

    1.47 “Transaction
      Documents” means, collectively, all agreements, instruments and other documents
      to be executed and delivered in connection with the transactions contemplated
      by
      this Agreement.

     

    1.48 “U.S.”
      means the United States of America.

     

    1.49 “U.S.
      Dollars” or “US $” means the currency of the United States of
      America.

     

    1.50 “U.S.
      Person” has the meaning set forth in Regulation S under the Securities Act and
      set forth on Exhibit C hereto.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    SECTION
      II

    EXCHANGE
      OF SHARES AND SHARE CONSIDERATION

     

    2.1 Share
      Exchange.
      At the
      Closing, each Shareholder shall transfer to the Acquiror Company the number
      of
      Shares set out forth in Exhibit A, and, in consideration therefor, subject
      to
      Section 2.2, Acquiror Company shall issue to such Shareholder the number of
      shares of Acquiror Company Common Stock so set forth on Part A of Exhibit A
      and
      A$3 million (approximately US$2.25 million) in aggregate, to be paid by bank
      check or telegraphic transfer to such Shareholder so set forth on Part B of
      Exhibit A (the “Exchange”). The total amount of Acquiror Company Common Stock to
      be issued to the Shareholders shall be 16,125,000 shares.

     

    2.2 Withholding.
      The
      Acquiror Company shall be entitled to deduct and withhold from the Acquiror
      Company Shares otherwise payable pursuant to this Agreement to the Shareholder
      such amounts as it is required to deduct and withhold with respect to the making
      of such payment under the Code or any provision of state, local, provincial
      or
      foreign tax Law. To the extent that amounts are so withheld, such withheld
      amounts shall be treated for all purposes of this Agreement as having been
      paid
      to the Shareholder in respect of which such deduction and withholding was
      made.

     

    SECTION
      III

    CLOSING
      DATE

     

    3.1 Closing
      Date.
      The
      closing of the Exchange will occur upon execution of this Agreement on September
      8, 2006 or at such later date as all of the closing conditions set forth in
      Sections 8 and 9 have been satisfied or waived (the “Closing
      Date”).

     

    SECTION
      IV

    REPRESENTATIONS
      AND WARRANTIES OF SHAREHOLDERS

     

    4.1 Generally.
      Each
      Shareholder, severally and not jointly, hereby represents and warrants to the
      Acquiror Company:

     

    4.1.1 Authority.
      

     

    (a) Such
      Shareholder has the right, power, authority and capacity to execute and deliver
      this Agreement and each of the Transaction Documents to which such Shareholder
      is a party, to consummate the transactions contemplated by this Agreement and
      each of the Transaction Documents to which such Shareholder is a party, and
      to
      perform such Shareholder’s obligations under this Agreement and each of the
      Transaction Documents to which such Shareholder is a party. This Agreement
      has
      been, and each of the Transaction Documents to which such Shareholder is a
      party
      will be, duly and validly authorized and approved, executed and delivered by
      such Shareholder. 

     

    (b) In
      the
      event that the Shareholder is an entity and not a natural person, such
      Shareholder has all requisite authority and power (corporate and other),
      governmental licenses, authorizations, consents and approvals to enter into
      this
      Agreement and each of the Transaction Documents to which such Shareholder is
      a
      party, to consummate the transactions contemplated by this Agreement and each
      of
      the Transaction Documents to which such Shareholder is a party and to perform
      its obligations under this Agreement and each of the Transaction Documents
      to
      which such Shareholder is a party. The execution, delivery and performance
      by
      such Shareholder of this Agreement and each of the Transaction Documents to
      which the Shareholder is a party have been duly authorized by all necessary
      corporate action and do not require from the board of directors or the
      stockholders of such Shareholder any consent or approval that has not been
      validly and lawfully obtained. The execution, delivery and performance by such
      Shareholder of this Agreement and each of the Transaction Documents to which
      the
      Shareholder is a party requires no authorization, consent, approval, license,
      exemption of or filing or registration with any Governmental Authority or other
      Person other than such other customary filings with the Commission for
      transactions of the type contemplated by this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    4.1.2 No
      Conflict.
      Neither
      the execution or delivery by such Shareholder of this Agreement or any
      Transaction Document to which such Shareholder is a party, nor the consummation
      or performance by such Shareholder of the transactions contemplated hereby
      or
      thereby will, directly or indirectly, (a) contravene, conflict with, or result
      in a violation of any provision of the Organizational Documents of such
      Shareholder (if such Shareholder is not a natural person); (b) contravene,
      conflict with, constitute a default (or an event or condition which, with notice
      or lapse of time or both, would constitute a default) under, or result in the
      termination or acceleration of, any agreement or instrument to which such
      Shareholder is a party or by which the properties or assets of such Shareholder
      are bound; or (c) contravene, conflict with, or result in a violation of, any
      Law or Order to which such Shareholder, or any of the properties or assets
      of
      such Shareholder, may be subject.

     

    4.1.3 Ownership
      of Shares.
      Such
      Shareholder owns, of record and beneficially, and has good, valid and
      indefeasible title to and the right to transfer to the Acquiror Company pursuant
      to this Agreement, such Shareholder’s Shares free and clear of any and all
      Liens. There are no options, rights, voting trusts, stockholder agreements
      or
      any other contracts or understandings to which such Shareholder is a party
      or by
      which such Shareholder or such Shareholder’s Shares are bound with respect to
      the issuance, sale, transfer, voting or registration of such Shareholder’s
      Shares. At the Closing Date, the Acquiror Company will acquire good, valid
      and
      marketable title to such Shareholder’s Shares free and clear of any and all
      Liens.

     

    4.1.4 Litigation.
      There
      is no pending Proceeding against such Shareholder that challenges, or may have
      the effect of preventing, delaying or making illegal, or otherwise interfering
      with, any of the transactions contemplated by this Agreement and, to the
      knowledge of such Shareholder, no such Proceeding has been threatened, and
      no
      event or circumstance exists that is reasonably likely to give rise to or serve
      as a basis for the commencement of any such Proceeding.

     

    4.1.5 Binding
      Obligations.
      Assuming this Agreement and the Transaction Documents have been duly and validly
      authorized, executed and delivered by the parties thereto other than the
      Shareholders, this Agreement and each of the Transaction Documents to which
      the
      Shareholders are a party are duly authorized, executed and delivered by the
      Shareholders and constitutes the legal, valid and binding obligations of the
      Shareholders, enforceable against the Shareholders in accordance with their
      respective terms, except as such enforcement is limited by general equitable
      principles, or by bankruptcy, insolvency and other similar Laws affecting the
      enforcement of creditors rights generally.

     

    
      
        
        

      

      
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    4.2 Investment
      Representations.
      Each
      Shareholder, severally and not jointly, hereby represents and warrants to the
      Acquiror Company:

     

    4.2.1 Acknowledgment.
      Each
      Shareholder understands and agrees that the Acquiror Company Shares to be issued
      pursuant to this Agreement have not been registered under the Securities Act
      or
      the securities laws of any state of the U.S. and that the issuance of the
      Acquiror Company Shares is being effected in reliance upon an exemption from
      registration afforded either under Section 4(2) of the Securities Act for
      transactions by an issuer not involving a public offering or Regulation S for
      offers and sales of securities outside the U.S.

     

    4.2.2 Status.
      By its
      execution of this Agreement, each Shareholder, severally and not jointly,
      represents and warrants to the Acquiror Company as indicated on its signature
      page to this Agreement, either that:

     

    (a) such
      Shareholder is an Accredited Investor; or

     

    (b) such
      Shareholder is not a U.S. Person.

     

    Each
      Shareholder severally understands that the Acquiror Company Shares are being
      offered and sold to such Shareholder in reliance upon the truth and accuracy
      of
      the representations, warranties, agreements, acknowledgments and understandings
      of such Shareholder set forth in this Agreement, in order that the Acquiror
      Company may determine the applicability and availability of the exemptions
      from
      registration of the Acquiror Company Shares on which the Acquiror Company is
      relying.

     

    4.2.3 Additional
      Representations and Warranties of Accredited Investors.
      The
      Shareholder indicating that such Shareholder is an Accredited Investor on its
      signature page to this Agreement, severally and not jointly, further makes
      the
      representations and warranties to the Acquiror Company set forth on Exhibit
      D.

     

    4.2.4 Additional
      Representations and Warranties of Non-U.S. Persons.
      Each
      Shareholder indicating that it is not a U.S. person on its signature page to
      this Agreement, severally and not jointly, further makes the representations
      and
      warranties to the Acquiror Company set forth on Exhibit E.

     

    4.2.5 Stock
      Legends.
      Each
      Shareholder hereby agrees with the Acquiror Company as follows: 

     

    (a) Securities
      Act Legend - Accredited Investors.
      The
      certificates evidencing the Acquiror Company Shares issued to those Shareholders
      who are Accredited Investors, and each certificate issued in transfer thereof,
      will bear the following legend:

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND
      NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
      ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
      LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN
      WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY
      AN
      OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO
      THE
      COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
      OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS.

     

    (b) Securities
      Act Legend - Non-U.S. Persons.
      The
      certificates evidencing the Acquiror Company Shares issued to those Shareholders
      who are not U.S. Persons, and each certificate issued in transfer thereof,
      will
      bear the following legend:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS AND
      NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED,
      ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) IN ACCORDANCE WITH THE PROVISIONS
      OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT, AND BASED ON AN OPINION
      OF
      COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY,
      THAT THE PROVISIONS OF REGULATION S HAVE BEEN SATISFIED (2) PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE
      SECURITIES LAWS OR (3) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN
      WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY
      AN
      OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO
      THE
      COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR
      OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE
      EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH
      THE SECURITIES ACT.

     

    (c) Other
      Legends.
      The
      certificates representing such Acquiror Company Shares, and each certificate
      issued in transfer thereof, will also bear any other legend required under
      any
      applicable Law, including, without limitation, any U.S. state corporate and
      state securities law, or contract.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (d) Opinion.
      No
      Shareholder will transfer any or all of the Acquiror Company Shares pursuant
      to
      Regulation S or absent an effective registration statement under the Securities
      Act and applicable state securities law covering the disposition of such
      Shareholder’s Acquiror Company Shares, without first providing the Acquiror
      Company with an opinion of counsel (which counsel and opinion are reasonably
      satisfactory to the Acquiror Company) to the effect that such transfer will
      be
      made in compliance with Regulation S or will be exempt from the registration
      and
      the prospectus delivery requirements of the Securities Act and the registration
      or qualification requirements of any applicable U.S. state securities
      laws.

     

    (e) Consent.
      Each
      Shareholder understands and acknowledges that the Acquiror Company may refuse
      to
      transfer the Acquiror Company Shares, unless such Shareholder complies with
      this
      Section 4.3.5 and any other restrictions on transferability set forth in
      Exhibits D and E. Each Shareholder consents to the Acquiror Company making
      a
      notation on its records or giving instructions to any transfer agent of the
      Acquiror Company’s Common Stock in order to implement the restrictions on
      transfer of the Acquiror Company Shares.

     

    SECTION
      V

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

     

    The
      Company represents and warrants to the Acquiror Company as follows:

     

    5.1 Organization
      and Qualification.
      The
      Company is duly incorporated and validly existing under the laws of Australia,
      has all requisite authority and power (corporate and other), governmental
      licenses, authorizations, consents and approvals to carry on its business as
      presently conducted and as contemplated to be conducted, to own, hold and
      operate its properties and assets as now owned, held and operated by it, to
      enter into this Agreement, to carry out the provisions hereof except where
      the
      failure to be so organized, existing and in good standing or to have such
      authority or power will not, in the aggregate, either (i) have a material
      adverse effect on the business, assets, financial condition, or prospects of
      the
      Company, or (ii) materially impair the ability of the Company and the
      Shareholders each to perform their material obligations under this Agreement
      (any of such effects or impairments, a “Material Adverse Effect”). The Company
      is duly qualified, licensed or domesticated as a foreign corporation in good
      standing in each jurisdiction wherein the nature of its activities or its
      properties owned or leased makes such qualification, licensing or domestication
      necessary, except where the failure to be so qualified, licensed or domesticated
      will not have a Material Adverse Effect. Set forth on Schedule 5.1 is a list
      of
      those jurisdictions in which the Company presently conducts its business, owns,
      holds and operates its properties and assets.

     

    5.2 Subsidiaries.
      The
      Company does not own directly or indirectly, any equity or other ownership
      interest in any corporation, partnership, joint venture or other entity or
      enterprise.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    5.3 Articles
      of Association and Governing Rules.
      The
      Company does not have any Memorandum and Articles of Association and is governed
      by the replaceable rules under the Corporations Act. The Company is not in
      violation or breach of any of the provisions of the replaceable rules, except
      for such violations or breaches as, in the aggregate, will not have a Material
      Adverse Effect.

     

    5.4 Authorization
      and Validity of this Agreement.
      The
      recording of the transfer of the Shares and the delivery of new certificates
      representing the Shares registered in the name of Acquiror Company are within
      the Company’s corporate powers, have been duly authorized by all necessary
      corporate action, do not require from the Board or Shareholders of the Company
      any consent or approval that has not been validly and lawfully obtained, require
      no authorization, consent, approval, license, exemption of or filing or
      registration with any court or governmental department, commission, board,
      bureau, agency or instrumentality of government that has not been validly and
      lawfully obtained, filed or registered, as the case may be, except for those
      that, if not obtained or made would not have a Material Adverse
      Effect.

     

    5.5 No
      Violation.
      None of
      the execution, delivery or performance by the Company of this Agreement or
      any
      Transaction Document to which the Company is a party, nor the consummation
      by
      the Company of the transactions contemplated hereby violates any provision
      of
      its Organizational Documents, or violates or conflicts with, or constitute
      a
      default (or an event or condition which, with notice or lapse of time or both,
      would constitute a default) under, or result in the termination or acceleration
      of, or result in the creation of imposition of any Lien under, any agreement
      or
      instrument to which the Company is a party or by which the Company is or will
      be
      bound or subject, or violate any laws. 

     

    5.6 Binding
      Obligations.
      Assuming this Agreement has been duly and validly authorized, executed and
      delivered by the Acquiror Company, the Company and the Shareholders of the
      Company, this Agreement is and all agreements or instruments contemplated hereby
      to which the Company is a party, have been duly authorized, executed and
      delivered by the Company and are the legal, valid and binding Agreement of
      the
      Company and is enforceable against the Company in accordance with its terms,
      except as such enforcement is limited by general equitable principles, or by
      bankruptcy, insolvency and other similar laws affecting the enforcement of
      creditors rights generally.

     

    5.7 Capitalization
      and Related Matters.

     

    5.7.1 Capitalization.
      The
      issued capital stock of the Company consists of 161,250,000 ordinary fully
      paid
      shares. Except as set forth in Schedule 5.7.1, there are no outstanding or
      authorized options, warrants, calls, subscriptions, rights (including any
      preemptive rights or rights of first refusal), agreements or commitments of
      any
      character obligating the Company to issue any ordinary shares or any other
      capital stock of the Company. All issued and outstanding shares of the Company’s
      capital stock are duly authorized, validly issued, fully paid and nonassessable
      and have not been issued in violation of any preemptive or similar
      rights.

     

    5.7.2 No
      Redemption Requirements.
      Except
      as set forth in Schedule 5.7.2, there are no outstanding contractual obligations
      (contingent or otherwise) of the Company to retire, repurchase, redeem or
      otherwise acquire any outstanding shares of capital stock of, or other ownership
      interests in, the Company or to provide funds to or make any investment (in
      the
      form of a loan, capital contribution or otherwise) in any other
      entity.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    5.7.3 Duly
      Authorized.
      The
      exchange of the Shares has been duly authorized, and the Shares have been
      validly issued and are fully paid and nonassessable.

     

    5.8 Shareholders.
      Exhibit
      A contains a true and complete list of the names and addresses of the record
      and
      beneficial holders of all of the outstanding capital stock of the Company.
      Except as expressly provided in this Agreement, no holder of Shares or any
      other
      security of the Company or any other Person is entitled to any preemptive right,
      right of first refusal or similar right as a result of the issuance of the
      shares or otherwise. There is no voting trust, agreement or arrangement among
      any of the Shareholders of any capital stock of the Company affecting the
      exercise of the voting rights of any such capital stock.

     

    5.9 Compliance
      with Laws and Other Instruments.
      Except
      as would not have a Material Adverse Effect, the business and operations of
      the
      Company have been and are being conducted in accordance with all applicable
      foreign, federal, state and local laws, rules and regulations and all applicable
      orders, injunctions, decrees, writs, judgments, determinations and awards of
      all
      courts and governmental agencies and instrumentalities. Except as would not
      have
      a Material Adverse Effect, the Company is not, and is not alleged to be, in
      violation of, or (with or without notice or lapse of time or both) in default
      under, or in breach of, any term or provision of its Organizational Documents
      or
      of any indenture, loan or credit agreement, note, deed of trust, mortgage,
      security agreement or other material agreement, lease, license or other
      instrument, commitment, obligation or arrangement to which the Company is a
      party or by which any of the Company’s properties, assets or rights are bound or
      affected. To the knowledge of the Company, no other party to any material
      contract, agreement, lease, license, commitment, instrument or other obligation
      to which the Company is a party is (with or without notice or lapse of time
      or
      both) in default thereunder or in breach of any term thereof. The Company is
      not
      subject to any obligation or restriction of any kind or character, nor is there,
      to the knowledge of the Company, any event or circumstance relating to the
      Company that materially and adversely affects in any way its business,
      properties, assets or prospects or that would prevent or make burdensome its
      performance of or compliance with all or any part of this Agreement or the
      consummation of the transactions contemplated hereby or thereby.

     

    5.10 Certain
      Proceedings.
      There
      is no pending Proceeding that has been commenced against the Company and that
      challenges, or may have the effect of preventing, delaying, making illegal,
      or
      otherwise interfering with, any of the transactions contemplated in this
      Agreement. To the Company’s knowledge, no such Proceeding has been
      threatened.

     

    5.11 No
      Brokers or Finders.
      No
      person has, or as a result of the transactions contemplated herein will have,
      any right or valid claim against the Company for any commission, fee or other
      compensation as a finder or broker, or in any similar capacity, and the Company
      will indemnify and hold the Acquiror Company harmless against any liability
      or
      expense arising out of, or in connection with, any such claim.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    5.12 Title
      to and Condition of Properties.
      The
      Company owns or holds under valid leases or other rights to use all real
      property, plants, machinery and equipment necessary for the conduct of the
      business of the Company as presently conducted, except where the failure to
      own
      or hold such property, plants, machinery and equipment would not have a Material
      Adverse Effect on the Company. The material buildings, plants, machinery and
      equipment necessary for the conduct of the business of the Company as presently
      conducted are structurally sound, are in good operating condition and repair
      and
      are adequate for the uses to which they are being put, in each case, taken
      as a
      whole, and none of such buildings, plants, machinery or equipment is in need
      of
      maintenance or repairs, except for ordinary, routine maintenance and repairs
      that are not material in nature or cost. 

     

    5.13 Intellectual
      Property.
      All
      Intellectual Property owned by the Company is set forth on Schedule 5.13 hereto.
      The Company owns its Intellectual Property free from any third party interests
      other than any interest which has been on Schedule 5.13 hereto. The Intellectual
      Property held by the Company contains all of the rights to utilize the
      underlying technologies and no other action or filings are required to utilize
      the Intellectual Property in the jurisdiction in which such Intellectual
      Property right is registered.

     

    5.14 Liabilities.
      Other
      than holding its Intellectual Property and issuing Shares to various parties
      (all of which are being exchanged pursuant to this Agreement), the Company
      has
      not carried on business and has not incurred any liability to any third
      party.

     

    5.15 Board
      Recommendation.
      The
      Board has, by unanimous written consent, determined that this Agreement and
      the
      transactions contemplated by this Agreement, are advisable and in the best
      interests of the Shareholders.

     

    SECTION
      VI

    REPRESENTATIONS
      AND WARRANTIES OF THE ACQUIROR COMPANY 

     

    6.1 The
      Acquiror Company represents and warrants to the Shareholder and the Company
      as
      follows:

     

    6.2 Organization
      and Qualification.
      The
      Acquiror Company is duly organized, validly existing and in good standing under
      the laws of its jurisdiction of organization, has all requisite authority and
      power (corporate and other), governmental licenses, authorizations, consents
      and
      approvals to carry on its business as presently conducted and to own, hold
      and
      operate its properties and assets as now owned, held and operated by it, except
      where the failure to be so organized, existing and in good standing, or to
      have
      such authority and power, governmental licenses, authorizations, consents or
      approvals would not have a Material Adverse Effect. The Acquiror Company is
      duly
      qualified, licensed or domesticated as a foreign corporation in good standing
      in
      each jurisdiction wherein the nature of its activities or its properties owned,
      held or operated makes such qualification, licensing or domestication necessary,
      except where the failure to be so duly qualified, licensed or domesticated
      and
      in good standing would not have a Material Adverse Effect. The SEC Documents
      set
      forth the Acquiror Company’s jurisdiction of organization and each other
      jurisdiction in which the Acquiror Company presently conducts its business
      or
      owns, holds and operates its properties and assets.

     

    
      
        
        

      

      
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    6.3 Subsidiaries.
      Except
      as set forth in the SEC Documents, the Acquiror Company does not own, directly
      or indirectly, any equity or other ownership interest in any corporation,
      partnership, joint venture or other entity or enterprise.

     

    6.4 Authorization.
      The
      Acquiror Company has all requisite authority and power (corporate and other),
      governmental licenses, authorizations, consents and approvals to enter into
      this
      Agreement and each of the Transaction Documents to which the Acquiror Company
      is
      a party, to consummate the transactions contemplated by this Agreement and
      each
      of the Transaction Documents to which the Acquiror Company is a party and to
      perform its obligations under this Agreement and each of the Transaction
      Documents to which the Acquiror Company is a party. The execution, delivery
      and
      performance by the Acquiror Company of this Agreement and each of the
      Transaction Documents to which the Acquiror Company is a party have been duly
      authorized by all necessary corporate action and do not require from the
      Acquiror Company Board or the stockholders of the Acquiror Company any consent
      or approval that has not been validly and lawfully obtained. The execution,
      delivery and performance by the Acquiror Company of this Agreement and each
      of
      the Transaction Documents to which the Acquiror Company is a party requires
      no
      authorization, consent, approval, license, exemption of or filing or
      registration with any Governmental Authority or other Person other than such
      other customary filings with the Commission for transactions of the type
      contemplated by this Agreement.

     

    6.5 No
      Violation.
      Neither
      the execution nor the delivery by the Acquiror Company of this Agreement or
      any
      Transaction Document to which the Acquiror Company is a party, nor the
      consummation or performance by the Acquiror Company of the transactions
      contemplated hereby or thereby will, directly or indirectly, (a) contravene,
      conflict with, or result in a violation of any provision of the Organizational
      Documents of the Acquiror Company; (b) contravene, conflict with, constitute
      a
      default (or an event or condition which, with notice or lapse of time or both,
      would constitute a default) under, or result in the termination or acceleration
      of, or result in the imposition or creation of any Lien under, any agreement
      or
      instrument to which the Acquiror Company is a party or by which the properties
      or assets of the Acquiror Company are bound; (c) contravene, conflict with,
      or result in a violation of, any Law or Order to which the Acquiror Company,
      or
      any of the properties or assets owned or used by the Acquiror Company, may
      be
      subject; or (d) contravene, conflict with, or result in a violation of, the
      terms or requirements of, or give any Governmental Authority the right to
      revoke, withdraw, suspend, cancel, terminate or modify, any licenses, permits,
      authorizations, approvals, franchises or other rights held by the Acquiror
      Company or that otherwise relate to the business of, or any of the properties
      or
      assets owned or used by, the Acquiror Company, except, in the case of clause
      (b), (c), or (d), for any such contraventions, conflicts, violations, or other
      occurrences as would not have a Material Adverse Effect.

     

    6.6 Binding
      Obligations.
      Assuming this Agreement and the Transaction Documents have been duly and validly
      authorized, executed and delivered by the parties thereto other than the
      Acquiror Company, this Agreement and each of the Transaction Documents to which
      the Acquiror Company is a party are duly authorized, executed and delivered
      by
      the Acquiror Company and constitutes the legal, valid and binding obligations
      of
      the Acquiror Company, enforceable against the Acquiror Company in accordance
      with their respective terms, except as such enforcement is limited by general
      equitable principles, or by bankruptcy, insolvency and other similar Laws
      affecting the enforcement of creditors rights generally.

     

    
      
        
        

      

      
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    6.7 Securities
      Laws.
      Assuming the accuracy of the representations and warranties of the Shareholders
      contained in Section 4 and Exhibits D and E, the issuance of the Acquiror
      Company Shares pursuant to this Agreement are (a) exempt from the registration
      and prospectus delivery requirements of the Securities Act, (b) have been
      registered or qualified (or are exempt from registration and qualification)
      under the registration permit or qualification requirements of all applicable
      state securities laws, and (c) accomplished in conformity with all other
      applicable federal and state securities laws.

     

    6.8 Capitalization
      and Related Matters.

     

    6.8.1 Capitalization.
      The
      authorized capital stock of the Acquiror Company consists of 100,000,000 shares
      of the Acquiror Company’s Common Stock, of which 37,382,450 shares are issued
      and outstanding. All issued and outstanding shares of the Acquiror Company’s
      Common Stock are duly authorized, validly issued, fully paid and nonassessable,
      and have not been issued in violation of any preemptive or similar rights.
      At
      the Closing Date, the Acquiror Company will have sufficient authorized and
      unissued Acquiror Company’s Common Stock to consummate the transactions
      contemplated hereby. There are no outstanding stockholders’ agreements, voting
      trusts or arrangements, registration rights agreements, rights of first refusal
      or other contracts pertaining to the capital stock of the Acquiror Company.
      The
      issuance of all of the shares of Acquiror Company’s Common Stock described in
      this Section 6.8.1 have been in compliance with U.S. federal and state
      securities laws.

     

    6.8.2 No
      Redemption Requirements.
      Except
      as set forth in the SEC Documents, there are no outstanding contractual
      obligations (contingent or otherwise) of the Acquiror Company to retire,
      repurchase, redeem or otherwise acquire any outstanding shares of capital stock
      of, or other ownership interests in, the Acquiror Company or to provide funds
      to
      or make any investment (in the form of a loan, capital contribution or
      otherwise) in any other Person.

     

    6.8.3 Duly
      Authorized.
      The
      issuance of the Acquiror Company Shares has been duly authorized and, upon
      delivery to the Shareholders of certificates therefor in accordance with the
      terms of this Agreement, the Acquiror Company Shares will have been validly
      issued and fully paid, and will be nonassessable, have the rights, preferences
      and privileges specified, will be free of preemptive rights and will be free
      and
      clear of all Liens and restrictions, other than Liens created by the
      Shareholders and restrictions on transfer imposed by this Agreement and the
      Securities Act.

     

    6.9 Compliance
      with Laws.
      Except
      as would not have a Material Adverse Effect, the business and operations of
      the
      Acquiror Company have been and are being conducted in accordance with all
      applicable Laws and Orders. Except as would not have a Material Adverse Effect,
      the Acquiror Company has not received notice of any violation (or any Proceeding
      involving an allegation of any violation) of any applicable Law or Order by
      or
      affecting the Acquiror Company and, to the knowledge of the Acquiror Company,
      no
      Proceeding involving an allegation of violation of any applicable Law or Order
      is threatened or contemplated. Except as would not have a Material Adverse
      Effect, the Acquiror Company is not subject to any obligation or restriction
      of
      any kind or character, nor is there, to the knowledge of the Acquiror Company,
      any event or circumstance relating to the Acquiror Company that materially
      and
      adversely affects in any way its business, properties, assets or prospects
      or
      that prohibits the Acquiror Company from entering into this Agreement or would
      prevent or make burdensome its performance of or compliance with all or any
      part
      of this Agreement or the consummation of the transactions contemplated
      hereby.

     

    
      
        
        

      

      
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    6.10 No
      Brokers or Finders.
      No
      Person has, or as a result of the transactions contemplated herein will have,
      any right or valid claim against the Acquiror Company for any commission, fee
      or
      other compensation as a finder or broker, or in any similar capacity, and the
      Acquiror Company will indemnify and hold the Company harmless against any
      liability or expense arising out of, or in connection with, any such
      claim.

     

    6.11 Absence
      of Undisclosed Liabilities.
      Except
      as set forth in the SEC Documents, the Acquiror Company has no debt, obligation
      or liability (whether accrued, absolute, contingent, liquidated or otherwise,
      whether due or to become due, whether or not known to the Acquiror Company)
      arising out of any transaction entered into at or prior to the Closing Date
      or
      any act or omission at or prior to the Closing Date, except to the extent set
      forth on or reserved against on the Acquiror Company Balance Sheet. All debts,
      obligations or liabilities with respect to directors and officers of the
      Acquiror Company will be cancelled prior to the Closing. The Acquiror Company
      has not incurred any liabilities or obligations under agreements entered into,
      in the usual and ordinary course of business since March 31, 2006.

     

    6.12 Changes.
      Except
      as set forth in the SEC Documents or in Schedule 6.12, the Acquiror Company
      has,
      since March 31, 2006: 

     

    6.12.1 Ordinary
      Course of Business.
      Conducted its business or entered into any transaction other than in the usual
      and ordinary course of business, except for this Agreement.

     

    6.12.2 Adverse
      Changes.
      Not
      suffered or experienced any change in, or affecting, its condition (financial
      or
      otherwise), properties, assets, liabilities, business, operations, results
      of
      operations or prospects other than changes, events or conditions in the usual
      and ordinary course of its business, none of which would have a Material Adverse
      Effect;

     

    6.12.3 Capital
      Stock.
      Issued,
      sold, disposed of or encumbered, or authorized the issuance, sale, disposition
      or encumbrance of, or granted or issued any option to acquire any shares of
      its
      capital stock or any other of its securities or any Equity Security, or altered
      the term of any of its outstanding securities or made any change in its
      outstanding shares of capital stock or its capitalization, whether by reason
      of
      reclassification, recapitalization, stock split, combination, exchange or
      readjustment of shares, stock dividend or otherwise;

     

    6.12.4 Dividends.
      Declared, set aside, made or paid any dividend or other distribution to any
      of
      its stockholders;

     

    6.12.5 Material
      Acquiror Company Contracts.
      Terminated or modified any Material Acquiror Company Contract, except for
      termination upon expiration in accordance with the terms thereof;

     

    
      
        
        

      

      
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    6.12.6 Claims.
      Released, waived or cancelled any claims or rights relating to or affecting
      the
      Acquiror Company in excess of US $10,000 in the aggregate or instituted or
      settled any Proceeding involving in excess of US $10,000 in the
      aggregate;

     

    6.12.7 Discharged
      Liabilities.
      Paid,
      discharged or satisfied any claim, obligation or liability in excess of US
      $10,000 in the aggregate, except for liabilities incurred prior to the date
      of
      this Agreement in the ordinary course of business;

     

    6.12.8 Indebtedness.
      Created, incurred, assumed or otherwise become liable for any Indebtedness
      in
      excess of US $10,000 in the aggregate, other than professional
      fees;

     

    6.12.9 Guarantees.
      Guaranteed or endorsed in a material amount any obligation or net worth of
      any
      Person;

     

    6.12.10 Acquisitions.
      Acquired the capital stock or other securities or any ownership interest in,
      or
      substantially all of the assets of, any other Person;

     

    6.12.11 Accounting.
      Changed
      its method of accounting or the accounting principles or practices utilized
      in
      the preparation of its financial statements, other than as required by
      GAAP;

     

    6.12.12 Agreements.
      Except
      as set forth in the SEC Documents, entered into any agreement, or otherwise
      obligated itself, to do any of the foregoing.

     

    6.13 Material
      Acquiror Company Contracts.
      Except
      to the extent filed with the SEC Documents, the Acquiror Company has made
      available to the Company, prior to the date of this Agreement, true, correct
      and
      complete copies of each written Material Acquiror Company Contract, including
      each amendment, supplement and modification thereto.

     

    6.13.1 No
      Defaults.
      Each
      Material Acquiror Company Contract is a valid and binding agreement of the
      Acquiror Company that is party thereto, and is in full force and effect. Except
      as would not have a Material Adverse Effect, the Acquiror Company is not in
      breach or default of any Material Acquiror Company Contract to which it is
      a
      party and, to the knowledge of the Acquiror Company, no other party to any
      Material Acquiror Company Contract is in breach or default thereof. Except
      as
      would not have a Material Adverse Effect, no event has occurred or circumstance
      exists that (with or without notice or lapse of time) would (a) contravene,
      conflict with or result in a violation or breach of, or become a default or
      event of default under, any provision of any Material Acquiror Company Contract
      or (b) permit the Acquiror Company or any other Person the right to declare
      a
      default or exercise any remedy under, or to accelerate the maturity or
      performance of, or to cancel, terminate or modify any Material Acquiror Company
      Contract. The Acquiror Company has not received notice of the pending or
      threatened cancellation, revocation or termination of any Material Acquiror
      Company Contract to which it is a party. There are no renegotiations of, or
      attempts to renegotiate, or outstanding rights to renegotiate any material
      terms
      of any Material Acquiror Company Contract.

     

     

    
      
        
        

      

      
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    6.14
      Employees.

     

    6.14.1 The
      Acquiror Company has no employees, independent contractors or other Persons
      providing research or other services to them. Except as would not have a
      Material Adverse Effect, the Acquiror Company is in full compliance with all
      Laws regarding employment, wages, hours, benefits, equal opportunity, collective
      bargaining, the payment of Social Security and other taxes, occupational safety
      and health and plant closing. The Acquiror Company is not liable for the payment
      of any compensation, damages, taxes, fines, penalties or other amounts, however
      designated, for failure to comply with any of the foregoing Laws.

     

    6.14.2 No
      director, officer or employee of the Acquiror Company is a party to, or is
      otherwise bound by, any contract (including any confidentiality, noncompetition
      or proprietary rights agreement) with any other Person that in any way adversely
      affects or will materially affect (a) the performance of his or her duties
      as a
      director, officer or employee of the Acquiror Company or (b) the ability of
      the
      Acquiror Company to conduct its business. Except as set forth in the SEC
      Documents, each employee of the Acquiror Company is employed on an at-will
      basis
      and the Acquiror Company has no contract with any of its employees which would
      interfere with the Acquiror Company’s ability to discharge its
      employees.

     

    6.15 Material
      Assets.
      The
      financial statements of the Acquiror Company set forth in the SEC Documents
      reflect the material properties and assets (real and personal) owned or leased
      by the Acquiror Company.

     

    6.16 Litigation;
      Orders.
      Except
      as set forth in the SEC Documents, there is no Proceeding (whether federal,
      state, local or foreign) pending or, to the knowledge of the Acquiror Company,
      threatened against or affecting the Acquiror Company or the Acquiror Company’s
      properties, assets, business or employees. To the knowledge of the Acquiror
      Company, there is no fact that might result in or form the basis for any such
      Proceeding. The Acquiror Company is not subject to any Orders.

     

    6.17 Interested
      Party Transactions.
      Except
      as set forth in the SEC Documents, no officer, director or stockholder of the
      Acquiror Company or any Affiliate or “associate” (as such term is defined in
      Rule 405 of the Commission under the Securities Act) of any such Person, has
      or
      has had, either directly or indirectly, (1) an interest in any Person which
      (a)
      furnishes or sells services or products which are furnished or sold or are
      proposed to be furnished or sold by the Acquiror Company, or (b) purchases from
      or sells or furnishes to, or proposes to purchase from, sell to or furnish
      any
      Acquiror Company any goods or services; or (2) a beneficial interest in any
      contract or agreement to which the Acquiror Company is a party or by which
      it
      may be bound or affected.

     

    6.18 Governmental
      Inquiries.
      The
      Acquiror Company has provided to the Company a copy of each material written
      inspection report, questionnaire, inquiry, demand or request for information
      received by the Acquiror Company from any Governmental Authority, and the
      Acquiror Company’s response thereto, and each material written statement, report
      or other document filed by the Acquiror Company with any Governmental
      Authority.

     

    
      
        
        

      

      
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    6.19 Intellectual
      Property.
      Except
      as set forth in the SEC Documents, the Acquiror Company does not own, use or
      license any Intellectual Property in its business as presently conducted, except
      as set forth in the SEC Documents.

     

    6.20 Title
      to and Condition of Properties.
      Except
      as would not have a Material Adverse Effect, the Acquiror Company owns (with
      good and marketable title in the case of real property) or holds under valid
      leases or other rights to use all real property, plants, machinery, equipment
      and other personal property necessary for the conduct of its business as
      presently conducted, free and clear of all Liens, except Permitted Liens. The
      material buildings, plants, machinery and equipment necessary for the conduct
      of
      the business of the Acquiror Company as presently conducted are structurally
      sound, are in good operating condition and repair and are adequate for the
      uses
      to which they are being put, and none of such buildings, plants, machinery
      or
      equipment is in need of maintenance or repairs, except for ordinary, routine
      maintenance and repairs that are not material in nature or cost.

     

    6.21 SEC
      Documents; Financial Statements.
      The
      Acquiror Company has filed all reports required to be filed by it under the
      Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
      three (3) years preceding the date hereof (or such shorter period as the
      Acquiror Company was required by law to file such material) (the foregoing
      materials being collectively referred to herein as the “SEC Documents”) and,
      while not having filed all such SEC Documents prior to the expiration of any
      extension(s), is nevertheless current with respect to its Exchange Act filing
      requirements. As of their respective dates, the SEC Documents complied in all
      material respects with the requirements of the Securities Act and the Exchange
      Act and the rules and regulations of the Commission promulgated thereunder,
      and
      none of the SEC Documents, when filed, contained any untrue statement of a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statement therein, in light of the
      circumstances under which they were made, not misleading. All material
      agreements to which the Acquiror Company is a party or to which the property
      or
      assets of the Acquiror Company are subject have been appropriately filed as
      exhibits to the SEC Documents as and to the extent required under the Exchange
      Act. The financial statements of the Acquiror Company included in the SEC
      Documents comply in all material respects with applicable accounting requirement
      and the rules and regulations of the Commission with respect thereto as in
      effect at the time of filing, were prepared in accordance with GAAP applied
      on a
      consistent basis during the periods involved (except as may be indicated in
      the
      notes thereto, or, in the case of unaudited statements as permitted by Form
      10-QSB of the Commission), and fairly present in all material respects (subject
      in the case of unaudited statements, to normal, recurring audit adjustments)
      the
      financial position of the Acquiror Company as at the dates thereof and the
      results of its operations and cash flows for the periods then
      ended.

     

    6.22 Money
      Laundering Laws.
      The
      operations of the Acquiror Company is and has been conducted at all times in
      compliance with applicable financial recordkeeping and reporting requirements
      of
      the Currency and Foreign Transactions Reporting Act of 1970, as amended, the
      money laundering statutes of all U.S. and non-U.S. jurisdictions, the rules
      and
      regulations thereunder and any related or similar rules, regulations or
      guidelines, issued, administered or enforced by any Governmental Authority
      (collectively, the “Money Laundering Laws”) and no Proceeding involving the
      Acquiror Company with respect to the Money Laundering Laws is pending or, to
      the
      knowledge of the Acquiror Company, threatened.

     

    
      
        
        

      

      
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    6.23 Board
      Recommendation.
      The
      Acquiror Company Board, at a meeting duly called and held, has determined that
      this Agreement and the transactions contemplated by this Agreement are advisable
      and in the best interests of the Acquiror Company’s stockholders and has duly
      authorized this Agreement and the transactions contemplated by this
      Agreement.

     

    SECTION
      VII

    COVENANTS
      OF THE ACQUIROR COMPANY

     

    7.1 Indemnification
      and Insurance.

     

    7.1.1 The
      Acquiror Company shall to the fullest extent permitted under applicable Law
      or
      its Organizational Documents, indemnify and hold harmless, each present and
      former director, officer or employee of the Acquiror Company (collectively,
      the
“Indemnified Parties”) against any costs or expenses (including attorneys’
fees), judgments, fines, losses, claims, damages, liabilities and amounts paid
      in settlement in connection with any Proceeding (x) arising out of or pertaining
      to the transactions contemplated by this Agreement or (y) otherwise with
      respect to any acts or omissions occurring at or prior to the Closing Date,
      to
      the same extent as provided in the Acquiror Company’s Organizational Documents
      or any applicable contract or agreement as in effect on the date hereof, in
      each
      case for a period of two years after the Closing Date. In the event of any
      such
      Proceeding (whether arising before or after the Closing Date), (i) any counsel
      retained by the Indemnified Parties for any period after the Closing Date shall
      be reasonably satisfactory to the Acquiror Company, (ii) after the Closing
      Date,
      the Acquiror Company shall pay the reasonable fees and expenses of such counsel,
      promptly after statements therefor are received, provided that the Indemnified
      Parties shall be required to reimburse the Acquiror Company for such payments
      in
      the circumstances and to the extent required by the Acquiror Company’s
      Organizational Documents, any applicable contract or agreement or applicable
      Law, and (iii) the Acquiror Company will cooperate in the defense of any such
      matter; provided,
      however,
      that
      the Acquiror Company shall not be liable for any settlement effected without
      its
      written consent (which consent shall not be unreasonably withheld); and
      provided, further, that, in the event that any claim or claims for
      indemnification are asserted or made within such two (2) year period, all rights
      to indemnification in respect of any such claim or claims shall continue until
      the disposition of any and all such claims. The Indemnified Parties as a group
      may retain only one law firm to represent them in each applicable jurisdiction
      with respect to any single action unless there is, under applicable standards
      of
      professional conduct, a conflict on any significant issue between the positions
      of any two or more Indemnified Parties, in which case each Indemnified Person
      with respect to whom such a conflict exists (or group of such Indemnified
      Persons who among them have no such conflict) may retain one separate law firm
      in each applicable jurisdiction.

     

    7.1.2 This
      Section 7.1 shall survive the consummation of the transactions contemplated
      by
      this Agreement upon execution, is intended to benefit the Indemnified Parties
      and the Covered Persons, shall be binding on all successors and assigns of
      the
      Acquiror Company and shall be enforceable by the Indemnified Parties and the
      Covered Persons.

     

    7.2 Rule
      144 Reporting.
      Subject
      to the Acquiror Company not being in material breach of the warranties and
      representations in Section 6, with a view to making available to the Acquiror
      Company’s stockholders the benefit of certain rules and regulations of the
      Commission which may permit the sale of the Acquiror Company Common Stock to
      the
      public without registration, from and after the Closing Date, the Acquiror
      Company agrees to:

     

    
      
        
        

      

      
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    7.2.1 Make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144; and

     

    7.2.2 File
      with
      the Commission, in a timely manner, all reports and other documents required
      of
      the Acquiror Company under the Exchange Act.

     

    7.3 SEC
      Documents.
      From
      and after the Closing Date, in the event the Commission notifies the Acquiror
      Company of its intent to review any SEC Document filed prior to the Closing
      Date
      or the Acquiror Company receives any oral or written comments from the
      Commission with respect to any SEC Document filed prior to the Closing Date,
      the
      Acquiror Company shall promptly notify the Shareholders and the Shareholders
      shall fully cooperate with the Acquiror Company.

     

    7.4 Scrip
      for Scrip Rollover.
      The
      Acquiror Company and the Shareholders jointly choose a scrip for scrip rollover
      for Australian tax purposes in accordance with subdivision 124-M of the Income
      Tax Assessment Act in respect of this Agreement and the Acquiror Company and
      Shareholders must execute all documents required to effect this. This clause
      does not merge on Closing.

     

    SECTION
      VIII

    CONDITIONS
      PRECEDENT OF THE ACQUIROR COMPANY

     

    The
      Acquiror Company’s obligation to acquire the Shares and to take the other
      actions required to be taken by the Acquiror Company at the Closing Date is
      subject to the satisfaction, at or prior to the Closing Date, of each of the
      following conditions (any of which may be waived by the Acquiror Company, in
      whole or in part):

     

    8.1 Accuracy
      of Representations.
      The
      representations and warranties of the Company and the Shareholders set forth
      in
      this Agreement or in any Schedule or certificate delivered pursuant hereto
      that
      are not qualified as to materiality shall be true and correct in all material
      respects as of the date of this Agreement except to the extent a representation
      or warranty is expressly limited by its terms to another date and without giving
      effect to any supplemental Schedule. The representations and warranties of
      the
      Company and the Shareholders set forth in this Agreement or in any Schedule
      or
      certificate delivered pursuant hereto that are qualified as to materiality
      shall
      be true and correct in all respects as of the date of this Agreement, except
      to
      the extent a representation or warranty is expressly limited by its terms to
      another date and without giving effect to any supplemental
      Schedule.

     

    8.2 Performance
      by the Company and Shareholders.

     

    8.2.1 All
      of
      the covenants and obligations that the Company and the Shareholders are required
      to perform or to comply with pursuant to this Agreement (considered
      collectively), and each of these covenants and obligations (considered
      individually), must have been duly performed and complied with in all material
      respects.

     

    
      
        
        

      

      
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    8.2.2 Each
      document required to be delivered by the Company and the Shareholders pursuant
      to this Agreement must have been delivered.

     

    8.3 No
      Force Majeure Event.
      There
      shall not have been any delay, error, failure or interruption in the conduct
      of
      the business of any Acquired Company, or any loss, injury, delay, damage,
      distress, or other casualty, due to force majeure including but not limited
      to
      (a) acts of God; (b) fire or explosion; (c) war, acts of terrorism or other
      civil unrest; or (d) national emergency.

     

    8.4 Certificate
      of Officer.
      The
      Company will have delivered to the Acquiror Company a certificate executed
      by an
      officer of the Company, certifying the satisfaction of the conditions specified
      in Sections 8.1, 8.2, and 8.3.

     

    8.5 Consents.

     

    8.5.1 All
      material consents, waivers, approvals, authorizations or orders required to
      be
      obtained, and all filings required to be made, by the Company and/or the
      Shareholders for the authorization, execution and delivery of this Agreement
      and
      the consummation by them of the transactions contemplated by this Agreement,
      shall have been obtained and made by the Company or the Shareholders, as the
      case may be, except where the failure to receive such consents, waivers,
      approvals, authorizations or orders or to make such filings would not have
      a
      Material Adverse Effect on the Company or the Acquiror Company.

     

    8.6 Documents.
      The
      Company and the Shareholders must deliver to the Acquiror Company at the
      Closing:

     

    8.6.1 (i)
      share
      certificates evidencing the number of Shares held by each Shareholder (as set
      forth in Exhibit A), along with executed share transfer forms transferring
      such
      Shares to the Acquiror Company together with a certified copy of a board
      resolution of the Company approving the registration of the transfer of such
      shares to Acquiror Company (subject to Closing and payment of stamp
      duty);

     

    8.6.2 each
      of
      the Transaction Documents to which the Company and/or the Shareholders is a
      party, duly executed, and such other documents as the Acquiror Company may
      reasonably request for the purpose of (A) evidencing the accuracy of any of
      the
      representations and warranties of the Company and the Shareholders pursuant
      to
      Section 8.1, (B) evidencing the performance of, or compliance by the Company
      and
      the Shareholders with, any covenant or obligation required to be performed
      or
      complied with by the Company or the Shareholders, as the case may be,
      (C) evidencing the satisfaction of any condition referred to in this
      Section, or (D) otherwise facilitating the consummation or performance of any
      of
      the transactions contemplated by this Agreement.

     

    8.7 No
      Proceedings.
      There
      must not have been commenced or threatened against the Acquiror Company, the
      Company or any Shareholder, or against any Affiliate thereof, any Proceeding
      (which Proceeding remains unresolved as of the Closing Date) (a) involving
      any
      challenge to, or seeking damages or other relief in connection with, any of
      the
      transactions contemplated by this Agreement, or (b) that may have the effect
      of
      preventing, delaying, making illegal, or otherwise interfering with any of
      the
      transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    8.8 No
      Claim Regarding Stock Ownership or Consideration.
      There
      must not have been made or threatened by any Person any claim asserting that
      such Person (a) is the holder of, or has the right to acquire or to obtain
      beneficial ownership of the Shares or any other stock, voting, equity, or
      ownership interest in, the Company, or (b) is entitled to all or any portion
      of
      the Acquiror Company Shares.

     

    SECTION
      IX

    CONDITIONS
      PRECEDENT OF THE COMPANY

    AND
      THE SHAREHOLDERS

     

    The
      Shareholders’ obligation to transfer the Shares and the obligations of the
      Company to take the other actions required to be taken by the Company in advance
      of or at the Closing Date are subject to the satisfaction, at or prior to the
      Closing Date, of each of the following conditions (any of which may be waived
      by
      the Company and the Shareholders jointly, in whole or in part):

     

    9.1 Accuracy
      of Representations.
      The
      representations and warranties of the Acquiror Company set forth in this
      Agreement or in any Schedule or certificate delivered pursuant hereto that
      are
      not qualified as to materiality shall be true and correct in all material
      respects as of the date of this Agreement except to the extent a representation
      or warranty is expressly limited by its terms to another date and without giving
      effect to any supplemental Schedule. The representations and warranties of
      the
      Acquiror Company set forth in this Agreement or in any Schedule or certificate
      delivered pursuant hereto that are qualified as to materiality shall be true
      and
      correct in all respects as of the date of this Agreement, except to the extent
      a
      representation or warranty is expressly limited by its terms to another date
      and
      without giving effect to any supplemental Schedule.

     

    9.2 Performance
      by the Acquiror Company.

     

    9.2.1 All
      of
      the covenants and obligations that the Acquiror Company and are required to
      perform or to comply with pursuant to this Agreement (considered collectively),
      and each of these covenants and obligations (considered individually), must
      have
      been performed and complied with in all respects.

     

    9.2.2 Each
      document required to be delivered by the Acquiror Company pursuant to this
      Agreement must have been delivered.

     

    9.3 No
      Force Majeure Event.
      There
      shall not have been any delay, error, failure or interruption in the conduct
      of
      the business of the Acquiror Company, or any loss, injury, delay, damage,
      distress, or other casualty, due to force majeure including but not limited
      to
      (a) acts of God; (b) fire or explosion; (c) war, acts of terrorism or other
      civil unrest; or (d) national emergency.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    9.4 Certificate
      of Officer.
      The
      Acquiror Company will have delivered to the Company a certificate, dated the
      Closing Date, executed by an officer of the Acquiror Company, certifying the
      satisfaction of the conditions specified in Sections 9.1, 9.2, and
      9.3.

     

    9.5 Consents.

     

    9.5.1 All
      material consents, waivers, approvals, authorizations or orders required to
      be
      obtained, and all filings required to be made, by the Acquiror Company for
      the
      authorization, execution and delivery of this Agreement and the consummation
      by
      it of the transactions contemplated by this Agreement, shall have been obtained
      and made by the Acquiror Company, except where the failure to receive such
      consents, waivers, approvals, authorizations or orders or to make such filings
      would not have a Material Adverse Effect on the Company or the Acquiror
      Company.

     

    9.6 Documents.
      The
      Acquiror Company must have caused the following documents to be delivered to
      the
      Company and/or the Shareholders:

     

    9.6.1 share
      certificates evidencing each Shareholder’s pro rata share of the Closing
      Acquiror Company Shares (as set forth in Exhibit A);

     

    9.6.2 each
      of
      the Transaction Documents to which the Acquiror Company is a party, duly
      executed; and

     

    9.6.3 such
      other documents as the Company or the Shareholders may reasonably request for
      the purpose of (i) evidencing the accuracy of any representation or warranty
      of
      the Acquiror Company pursuant to Section 9.1, (ii) evidencing the performance
      by
      the Acquiror Company of, or the compliance by the Acquiror Company with, any
      covenant or obligation required to be performed or complied with by the Acquiror
      Company, (iii) evidencing the satisfaction of any condition referred to in
      this
      Section 9, or (iv) otherwise facilitating the consummation of any of the
      transactions contemplated by this Agreement.

     

    9.7 No
      Proceedings.
      Since
      the date of this Agreement, there must not have been commenced or threatened
      against the Acquiror Company, the Company or any Shareholder, or against any
      Affiliate thereof, any Proceeding (which Proceeding remains unresolved as of
      the
      date of this Agreement) (a) involving any challenge to, or seeking damages
      or
      other relief in connection with, any of the transactions contemplated hereby,
      or
      (b) that may have the effect of preventing, delaying, making illegal, or
      otherwise interfering with any of the transactions contemplated
      hereby.

     

    9.8 No
      Claim Regarding Stock Ownership or Consideration.
      There
      must not have been made or threatened by any Person any claim asserting that
      such Person is the holder of, or has the right to acquire or to obtain
      beneficial ownership of the Acquiror Company Common Stock. 

     

    9.9 Waiver
      of Right to be Represented by Counsel.
      The
      Shareholders acknowledge that: (i) they have heretofore been advised by the
      Acquiror Company to obtain representation by counsel in connection with the
      negotiation, execution and delivery of this Agreement and the other agreements,
      documents and instruments herein or therein provided and the consummation of
      the
      transactions contemplated herein or therein; (ii) they voluntarily elect to
      forego representation by counsel in such connection; and (iii) they hereby
      irrevocably waive any and all rights to contest or challenge the negotiation,
      execution and delivery of this Agreement and the other agreements, documents
      and
      instruments herein or therein provided or the consummation of the transactions
      contemplated herein or therein due to the lack of representation by
      counsel.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    9.10 Loan
      and Security Documents.
      The
      Acquiror Company must cause its wholly owned subsidiary, AMI Australia Holdings
      Pty Limited, to execute and consummate the financing contemplated by the Loan
      and Security Documents.

     

    9.11 Cash
      Payment.
      The
      Acquiror Company must have paid the Shareholders, which are listed on Part
      B of
      Exhibit A, a cash payment of A$3 million (approximately US$2.25 million) by
      bank
      check or telegraphic transfer.

     

    SECTION
      X

    INDEMNIFICATION;
      REMEDIES

     

    10.1 Survival.
      All
      representations, warranties, covenants, and obligations in this Agreement shall
      expire on the first (1st)
      anniversary of the date this Agreement is executed (the “Survival Period”). The
      right to indemnification, payment of Damages or other remedy based on such
      representations, warranties, covenants, and obligations will not be affected
      by
      any investigation conducted with respect to, or any knowledge acquired (or
      capable of being acquired) at any time, whether before or after the execution
      and delivery of this Agreement, with respect to the accuracy or inaccuracy
      of or
      compliance with, any such representation, warranty, covenant, or obligation.
      The
      waiver of any condition based on the accuracy of any representation or warranty,
      or on the performance of or compliance with any covenant or obligation, will
      not
      affect the right to indemnification, payment of Damages, or other remedy based
      on such representations, warranties, covenants, and obligations. 

     

    10.2 Limitations
      on Amount - the Acquiror Company.
      No
      Company Indemnified Party shall be entitled to indemnification pursuant to
      Section 7.1, unless and until the aggregate amount of Damages to all Company
      Indemnified Parties with respect to such matters under Section 7.1 exceeds
      US$20,000, at which time, the Company Indemnified Parties shall be entitled
      to
      indemnification for the total amount of such Damages in excess of
      US$20,000.

     

    10.3 Determining
      Damages.
      Materiality qualifications to the representations and warranties of the Company
      and the Acquiror Company shall not be taken into account in determining the
      amount of Damages occasioned by a breach of any such representation and warranty
      for purposes of determining whether the baskets set forth in Section 10.2 has
      been met.

     

    SECTION
      XI

    GENERAL
      PROVISIONS

     

    11.1 Expenses.
      Except
      as otherwise expressly provided in this Agreement, each party to this Agreement
      will bear its respective expenses incurred in connection with the preparation,
      execution, and performance of this Agreement and the transactions contemplated
      by this Agreement, including all fees and expenses of agents, representatives,
      counsel, and accountants. In the event of termination of this Agreement, the
      obligation of each party to pay its own expenses will be subject to any rights
      of such party arising from a breach of this Agreement by another
      party.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    11.2 Public
      Announcements.
      The
      Acquiror Company shall promptly, but no later than two (2) days following the
      effective date of this Agreement, issue a press release disclosing the
      transactions contemplated hereby. Prior to the Closing Date, the Company and
      the
      Acquiror Company shall consult with each other in issuing any other press
      releases or otherwise making public statements or filings and other
      communications with the Commission or any regulatory agency or stock market
      or
      trading facility with respect to the transactions contemplated hereby and
      neither party shall issue any such press release or otherwise make any such
      public statement, filings or other communications without the prior written
      consent of the other, which consent shall not be unreasonably withheld or
      delayed, except that no prior consent shall be required if such disclosure
      is
      required by law, in which case the disclosing party shall provide the other
      party with prior notice of such public statement, filing or other communication
      and shall incorporate into such public statement, filing or other communication
      the reasonable comments of the other party. 

     

    11.3 Confidentiality.

     

    11.3.1 Subsequent
      to the date of this Agreement, the Acquiror Company, the Shareholders and the
      Company will maintain in confidence, and will cause their respective directors,
      officers, employees, agents, and advisors to maintain in confidence, any
      written, oral, or other information obtained in confidence from another party
      in
      connection with this Agreement or the transactions contemplated by this
      Agreement, unless (a) such information is already known to such party or to
      others not bound by a duty of confidentiality or such information becomes
      publicly available through no fault of such party, (b) the use of such
      information is necessary or appropriate in making any required filing with
      the
      Commission, or obtaining any consent or approval required for the consummation
      of the transactions contemplated by this Agreement, or (c) the furnishing or
      use
      of such information is required by or necessary or appropriate in connection
      with legal proceedings.

     

    11.3.2 In
      the
      event that any party is required to disclose any information of another party
      pursuant to clause (b) or (c) of Section 11.3.1, the party requested or required
      to make the disclosure (the “disclosing party”) shall provide the party that
      provided such information (the “providing party”) with prompt notice of any such
      requirement so that the providing party may seek a protective order or other
      appropriate remedy and/or waive compliance with the provisions of this Section
      11.3. If, in the absence of a protective order or other remedy or the receipt
      of
      a waiver by the providing party, the disclosing party is nonetheless, in the
      opinion of counsel, legally compelled to disclose the information of the
      providing party, the disclosing party may, without liability hereunder, disclose
      only that portion of the providing party’s information which such counsel
      advises is legally required to be disclosed, provided that the disclosing party
      exercises its reasonable efforts to preserve the confidentiality of the
      providing party’s information, including, without limitation, by cooperating
      with the providing party to obtain an appropriate protective order or other
      relief assurance that confidential treatment will be accorded the providing
      party’s information.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    11.3.3 If
      the
      transactions contemplated by this Agreement are not consummated, each party
      will
      return or destroy as much of such written information as the other party may
      reasonably request.

     

    11.4 Notices.
      All
      notices, consents, waivers, and other communications under this Agreement must
      be in writing and will be deemed to have been duly given when (a) delivered
      by
      hand (with written confirmation of receipt), (b) sent by telecopier (with
      written confirmation of receipt), or (c) when received by the addressee, if
      sent
      by a nationally recognized overnight delivery service (receipt requested),
      in
      each case to the appropriate addresses and telecopier numbers set forth below
      (or to such other addresses and telecopier numbers as a party may designate
      by
      written notice to the other parties):

     

    
      	
              If
                to Acquiror Company:

              Advanced
                Medical Institute, Inc.

              c/o
                Advanced
                Medical Institute Pty Ltd.

              Level
                1, 204-218 Botany Road

              Alexandria,
                NSW 2015 Australia 

              Attention:
                Jacov Vaisman, CEO and President

              Telephone
                No.: 61 2 9640 5200

              Facsimile
                No.: 61 2 9640 5264

            	
              with
                a copy to

              Loeb
                & Loeb LLP

              345
                Park Avenue

              New
                York, New York 10154 

              Attention:
                Mitchell S. Nussbaum, Esq.

              Telephone
                No.: 212-407-4159

              Facsimile
                No.: 212-407-4990

            
	 	 
	
              If
                to the Company:

               

              Worldwide
                PE Patent Holdco Pty Limited 

              Level
                1, 204, -218 Botany Road

              Alexandria
                NSW 2015

              Australia 

              Attention:
                Igor Chalik, Director

              Telephone
                No.: 61 2 9369 3022

              Facsimile
                No.: 61 2 9369 3322

            	
               

            
	 	 
	
              If
                to the Shareholders:

               

              To
                the respective address set forth in Exhibit A attached
                hereto.

            	 

    

     

    11.5 Arbitration.
      Any
      dispute or controversy under this Agreement shall be settled exclusively by
      arbitration in the City of New York, County of New York in accordance with
      the
      rules of the American Arbitration Association then in effect. Judgment may
      be
      entered on the arbitration award in any court having jurisdiction.

     

    11.6 Further
      Assurances.
      The
      parties agree (a) to furnish upon request to each other such further
      information, (b) to execute and deliver to each other such other documents,
      and
      (c) to do such other acts and things, all as the other party may reasonably
      request for the purpose of carrying out the intent of this Agreement and the
      documents referred to in this Agreement.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    11.7 Waiver.
      The
      rights and remedies of the parties to this Agreement are cumulative and not
      alternative. Neither the failure nor any delay by any party in exercising any
      right, power, or privilege under this Agreement or the documents referred to
      in
      this Agreement will operate as a waiver of such right, power, or privilege,
      and
      no single or partial exercise of any such right, power, or privilege will
      preclude any other or further exercise of such right, power, or privilege or
      the
      exercise of any other right, power, or privilege. To the maximum extent
      permitted by applicable law, (a) no claim or right arising out of this Agreement
      or the documents referred to in this Agreement can be discharged by one party,
      in whole or in part, by a waiver or renunciation of the claim or right unless
      in
      writing signed by the other party; (b) no waiver that may be given by a party
      will be applicable except in the specific instance for which it is given; and
      (c) no notice to or demand on one party will be deemed to be a waiver of any
      obligation of such party or of the right of the party giving such notice or
      demand to take further action without notice or demand as provided in this
      Agreement or the documents referred to in this Agreement.

     

    11.8 Entire
      Agreement and Modification.
      This
      Agreement supersedes all prior agreements between the parties with respect
      to
      its subject matter and constitutes (along with the documents referred to in
      this
      Agreement) a complete and exclusive statement of the terms of the agreement
      between the parties with respect to its subject matter. This Agreement may
      not
      be amended except by a written agreement executed by the party against whom
      the
      enforcement of such amendment is sought.

     

    11.9 Assignments,
      Successors, and No Third-Party Rights.
      No
      party may assign any of its rights under this Agreement without the prior
      consent of the other parties. Subject to the preceding sentence, this Agreement
      will apply to, be binding in all respects upon, and inure to the benefit of
      and
      be enforceable by the respective successors and permitted assigns of the
      parties. Except as set forth in Section 7.1 and Section 10.3, nothing expressed
      or referred to in this Agreement will be construed to give any Person other
      than
      the parties to this Agreement any legal or equitable right, remedy, or claim
      under or with respect to this Agreement or any provision of this Agreement.
      This
      Agreement and all of its provisions and conditions are for the sole and
      exclusive benefit of the parties to this Agreement and their successors and
      assigns.

     

    11.10 Severability.
      If any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement will remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

     

    11.11 Section
      Headings, Construction.
      The
      headings of Sections in this Agreement are provided for convenience only and
      will not affect its construction or interpretation. All references to “Section”
or “Sections” refer to the corresponding Section or Sections of this Agreement.
      All words used in this Agreement will be construed to be of such gender or
      number as the circumstances require. Unless otherwise expressly provided, the
      word “including” does not limit the preceding words or terms.

     

    11.12 Governing
      Law.
      This
      Agreement will be governed by the laws of the State of New York without regard
      to conflicts of laws principles.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    11.13 Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, will be deemed to constitute one and the same agreement.

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    COUNTERPART
      SIGNATURE PAGE

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Share Exchange
      Agreement as of the date first written above.

     

    
      	
              Acquiror Company:

               

              Advanced
                Medical Institute Inc.

               

               

              By:
                /s/ Dilip Shrestha    

              Name:
                Dilip Shrestha

              Title:
                Chief Financial Officer

            	
              Company:

               

              Worldwide
                PE Patent Holdco Pty Limited

               

               

              By:
                /s/ Igor Chalik    

              Name:
                Igor Chalik

              Title:
                Director

            
	
               

              Shareholder:

               

               

              /s/
                Bishnu Lxmi Chakubaji

              Name:
                Bishnu Lxmi Chakubaji

            	
               

              Shareholder:

               

               

              /s/
                Hershey Kay Montelibano

              Name:
                Hershey Kay Montelibano

            
	
               

              Shareholder:

               

              Avina
                Investments Limited

               

              By:
                Westco Directors Limited

               

              By:
                /s/ Marie Lim    

              Name:
                Marie Lim

              Title:
                Duly Authorized Officer

            	
               

              Shareholder:

               

              Adendium
                Financial Services

               

              By:
                Westco Directors Limited

               

              By: /s/
                Marie Lim    

              Name:
                Marie Lim

              Title:
                Duly Authorized Officer

            
	
               

              Shareholder:

               

              /s/
                Angela Kutalyov

              Name:
                Angela Kutalyov

            	
               

              Shareholder:

               

              Geissler
                Holdings Ltd.

               

              By:
                /s/ Richard Doyle    

              Name:
                Richard Doyle

              Title:
                Authorized Officer

            
	
               

              Shareholder:

               

              RRD
                Investments Pty Ltd.

               

              By:
                /s/ Richard Doyle    

              Name:
                Richard Doyle

              Title:
                Director

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    COUNTERPART
      SIGNATURE PAGE

    (FOR
      ISSUANCES PURSUANT TO REGULATION S)

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Share Exchange
      Agreement as of the date first written above.

     

     

    
      	 	 	 
	 	ENTITY
              NAME:
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
	 	Title: 

    

     

     

    
      
        	OFFSHORE DELIVERY INSTRUCTIONS: 	 	 
	 	 	 
	 	 	 
	PRINT EXACT NAME IN WHICH YOU WANT
                THE
                SECURITIES TO BE REGISTERED 	 	 
	 	 	 
	Attn:   	 	 
	 	 	 
	Address:  	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Phone
                No.  	 	 
	 	 	 
	Facsimile
                No.  	
                 

              	 

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    COUNTERPART
      SIGNATURE PAGE

     

    (FOR
      ISSUANCES PURSUANT TO SECTION 4(2))

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Share Exchange
      Agreement as of the date first written above.

     

    
       

      
        	 	 	 
	 	ENTITY
                NAME:
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
                
Name:
	 	Title: 

      

       

    

     

    Circle
      the category under which you are an “accredited investor” pursuant to Exhibit
      B:

     

    1 2 3 4 5 6 7 8

     

     

    
      	
            	 	 
	PRINT EXACT NAME IN WHICH YOU WANT THE
              SECURITIES TO BE REGISTERED 	 	 
	 	 	 
	Attn:   	 	 
	 	 	 
	Address:  	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Phone
              No.  	 	 
	 	 	 
	Facsimile
              No.  	
               

            	 

       

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULES

    

    

    
      	Schedule 5.1 	Company Jurisdiction 	 
	Schedule 5.7.1 	Capitalization of the Company 	 
	Schedule 5.7.2	Company Redemption
              Requirements 	 
	Schedule 5.13	Company Intellectual Property 	 
	Schedule 6.12	Acquiror Company Changes 	 
	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    SHARES
      AND
      ACQUIROR COMPANY SHARESAND PAYMENTS

     

    Part
      A:

     

    

    
      	
              Name
                and Address of Shareholder

            	
              Number
                of Shares to be delivered by Shareholder

            	
              Number
                of Acquiror Company Shares to be issued to
                Shareholder

            
	
              Avina
                Investments Limited

              1
                Raffles Place

              #21-01
                OUB Centre

              Singapore
                048616

            	
              16,000,000

            	
              1,600,000

            
	
              Geissler
                Holdings Limited

              1
                Raffles Place

              #21-01
                OUB Centre

              Singapore
                048616

            	
              76,000,000

            	
              7,600,000

            
	
              Hershey
                Kay Montelibano

              c/-
                Level 1

              204-218
                Botany Road

              Alexandria
                NSW 2015

            	
              10,000,000

            	
              1,000,000

            
	
              Angela
                Kutalyov

              Unit
                15

              2-8
                Llanduff Street

              Bondi
                Junction NSW 2022

            	
              4,000,000

            	
              400,000

            
	
              Bishnu
                Laxmi Chakubaji

              PO
                Box 335

              Petersham
                NSW 2049

              Australia

            	
              10,000,000

            	
              1,000,000

            
	
              Adenium
                Financial Services Limited 

              1
                Raffles Place

              #21-01
                OUB Centre

              Singapore
                048616

            	
              11,250,000

            	
              1,125,000

            
	
              RRD
                Investments Pty Limited

              65
                Prospect Road

              Summer
                Hill NSW 2130

              Australia

            	
              34,000,000

            	
              3,400,000

            
	
              Total

            	
              161,250,000

            	
              16,125,000

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Part
      B:

     

    

    
      	
              Name
                and Address of Shareholder

            	
              Number
                of Shares to be delivered by Shareholder

            	
              Payment

            
	
              Avina
                Investments Limited

              1
                Raffles Place

              #21-01
                OUB Centre

              Singapore
                048616

            	
              2,000,000

            	
              A$1,500,000

            
	
              Geissler
                Holdings Limited

              1
                Raffles Place

              #21-01
                OUB Centre

              Singapore
                048616

            	
              2,000,000

            	
              A$1,500,000

            
	
              Total

            	
              4,000,000

            	
              A$3,000,000

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    Definition
      of “Accredited Investor”

     

    The
      term
“accredited investor” means:

     

    
      	
              (1)

            	
              A
                bank as defined in Section 3(a)(2) of the Securities Act, or a savings
                and
                loan association or other institution as defined in Section 3(a)(5)(A)
                of
                the Securities Act, whether acting in its individual or fiduciary
                capacity; a broker or dealer registered pursuant to Section 15 of
                the
                Securities Exchange Act of 1934; an insurance company as defined
                in
                Section 2(13) of the Securities Act; an investment company registered
                under the Investment Company Act of 1940 (the “Investment Company Act”) or
                a business development company as defined in Section 2(a)(48) of
                the
                Investment Company Act; a Small Business Investment Company licensed
                by
                the U.S. Small Business Administration under Section 301(c) or (d)
                of the
                Small Business Investment Act of 1958; a plan established and maintained
                by a state, its political subdivisions or any agency or instrumentality
                of
                a state or its political subdivisions for the benefit of its employees,
                if
                such plan has total assets in excess of US $5,000,000; an employee
                benefit
                plan within the meaning of the Employee Retirement Income Security
                Act of
                1974 (“ERISA”), if the investment decision is made by a plan fiduciary, as
                defined in Section 3(21) of ERISA, which is either a bank, savings
                and
                loan association, insurance company, or registered investment advisor,
                or
                if the employee benefit plan has total assets in excess of US $5,000,000
                or, if a self-directed plan, with investment decisions made solely
                by
                persons that are accredited
                investors.

            

    

     

    
      	
              (2)

            	
              A
                private business development company as defined in Section 202(a)(22)
                of
                the Investment Advisers Act of
                1940.

            

    

     

    
      	
              (3)

            	
              An
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities offered,
                with
                total assets in excess of US
                $5,000,000.

            

    

     

    
      	
              (4)

            	
              A
                director or executive officer of the Acquiror Company.

            

    

     

    
      	
              (5)

            	
              A
                natural person whose individual net worth, or joint net worth with
                that
                person’s spouse, at the time of his or her purchase exceeds US
                $1,000,000.

            

    

     

    
      	
              (6)

            	
              A
                natural person who had an individual income in excess of US $200,000
                in
                each of the two most recent years or joint income with that person’s
                spouse in excess of US $300,000 in each of those years and has a
                reasonable expectation of reaching the same income level in the current
                year.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (7)

            	
              A
                trust, with total assets in excess of US $5,000,000, not formed for
                the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a sophisticated person as described in Rule 506(b)(2)(ii)
                (i.e., a person who has such knowledge and experience in financial
                and
                business matters that he is capable of evaluating the merits and
                risks of
                the prospective investment).

            

    

     

    
      	
              (8)

            	
              An
                entity in which all of the equity owners are accredited investors.
                (If
                this alternative is checked, the Shareholder must identify each equity
                owner and provide statements signed by each demonstrating how each
                is
                qualified as an accredited
                investor.)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    Definition
      of “U.S. Person”

     

    
      	
              (1)

            	
              “U.S.
                person” (as defined in Regulation S)
                means:

            

    

     

    
      	 	
              (i)

            	
              Any
                natural person resident in the United
                States;

            

    

     

    
      	 	
              (ii)

            	
              Any
                partnership or corporation organized or incorporated under the laws
                of the
                United States;

            

    

     

    
      	 	
              (iii)

            	
              Any
                estate of which any executor or administrator is a U.S.
                person;

            

    

     

    
      	 	
              (iv)

            	
              Any
                trust of which any trustee is a U.S.
                person;

            

    

     

    
      	 	
              (v)

            	
              Any
                agency or branch of a foreign entity located in the United
                States;

            

    

     

    
      	 	
              (vi)

            	
              Any
                non-discretionary account or similar account (other than an estate
                or
                trust) held by a dealer or other fiduciary for the benefit or account
                of a
                U.S. person;

            

    

     

    
      	 	
              (vii)

            	
              Any
                discretionary account or similar account (other than an estate or
                trust)
                held by a dealer or other fiduciary organized, incorporated, or (if
                an
                individual) resident in the United States;
                and

            

    

     

    
      	 	
              (viii)

            	
              Any
                partnership or corporation if: (A) organized or incorporated under
                the
                laws of any foreign jurisdiction; and (B) formed by a U.S. person
                principally for the purpose of investing in securities not registered
                under the Securities Act, unless it is organized or incorporated,
                and
                owned, by accredited investors (as defined in Rule 501(a)) who are
                not
                natural persons, estates or trusts.

            

    

     

    
      	
              (2)

            	
              Notwithstanding
                paragraph (1) above, any discretionary account or similar account
                (other
                than an estate or trust) held for the benefit or account of a non-U.S.
                person by a dealer or other professional fiduciary organized,
                incorporated, or (if an individual) resident in the United States
                shall
                not be deemed a “U.S. person.”

            

    

     

    
      	
              (3)

            	
              Notwithstanding
                paragraph (1), any estate of which any professional fiduciary acting
                as
                executor or administrator is a U.S. person shall not be deemed a
                U.S.
                person if:

            

    

     

    
      	 	
              (i)

            	
              An
                executor or administrator of the estate who is not a U.S. person
                has sole
                or shared investment discretion with respect to the assets of the
                estate;
                and

            

    

     

    
      	 	
              (ii)

            	
              The
                estate is governed by foreign law.

            

    

     

    
      	
              (4)

            	
              Notwithstanding
                paragraph (1), any trust of which any professional fiduciary acting
                as
                trustee is a U.S. person shall not be deemed a U.S. person if a trustee
                who is not a U.S. person has sole or shared investment discretion
                with
                respect to the trust assets, and no beneficiary of the trust (and
                no
                settlor if the trust is revocable) is a U.S.
                person.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              (5)

            	
              Notwithstanding
                paragraph (1), an employee benefit plan established and administered
                in
                accordance with the law of a country other than the United States
                and
                customary practices and documentation of such country shall not be
                deemed
                a U.S. person.

            

    

     

    
      	
              (6)

            	
              Notwithstanding
                paragraph (1), any agency or branch of a U.S. person located outside
                the
                United States shall not be deemed a “U.S. person”
                if:

            

    

     

    
      	 	
              (i)

            	
              The
                agency or branch operates for valid business reasons;
                and

            

    

     

    
      	 	
              (ii)

            	
              The
                agency
                or branch is engaged in the business of insurance or banking and
                is
                subject to substantive insurance
                or banking regulation, respectively, in the jurisdiction where
                located.

            

    

     

    
      	
              (7)

            	
              The
                International Monetary Fund, the International Bank for Reconstruction
                and
                Development, the Inter-American Development Bank, the Asian Development
                Bank, the African Development Bank, the United Nations, and their
                agencies, affiliates and pension plans, and any other similar
                international organizations, their agencies, affiliates and pension
                plans
                shall not be deemed “U.S. persons.”

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    ACCREDITED
      INVESTOR REPRESENTATIONS

     

    Each
      Shareholder indicating that it is an Accredited Investor, severally and not
      jointly, further represents and warrants to the Acquiror Company as
      follows:

     

    
      	
              1.

            	
              Such
                Shareholder qualifies as an Accredited Investor on the basis set
                forth on
                its signature page to this
                Agreement.

            

    

     

    
      	
              2.

            	
              Such
                Shareholder has sufficient knowledge and experience in finance,
                securities, investments and other business matters to be able to
                protect
                such Shareholder’s interests in connection with the transactions
                contemplated by this Agreement.

            

    

     

    
      	
              3.

            	
              Such
                Shareholder has consulted, to the extent that it has deemed necessary,
                with its tax, legal, accounting and financial advisors concerning
                its
                investment in the Acquiror Company
                Shares.

            

    

     

    
      	
              4.

            	
              Such
                Shareholder understands the various risks of an investment in the
                Acquiror
                Company Shares and can afford to bear such risks for an indefinite
                period
                of time, including, without limitation, the risk of losing its entire
                investment in the Acquiror Company
                Shares.

            

    

     

    
      	
              5.

            	
              Such
                Shareholder has had access to the Acquiror Company’s publicly filed
                reports with the SEC.

            

    

     

    
      	
              6.

            	
              Such
                Shareholder has been furnished during the course of the transactions
                contemplated by this Agreement with all other public information
                regarding
                the Acquiror Company that such Shareholder has requested and all
                such
                public information is sufficient for such Shareholder to evaluate
                the
                risks of investing in the Acquiror Company
                Shares.

            

    

     

    
      	
              7.

            	
              Such
                Shareholder has been afforded the opportunity to ask questions of
                and
                receive answers concerning the Acquiror Company and the terms and
                conditions of the issuance of the Acquiror Company
                Shares.

            

    

     

    
      	
              8.

            	
              Such
                Shareholder is not relying on any representations and warranties
                concerning the Acquiror Company made by the Acquiror Company or any
                officer, employee or agent of the Acquiror Company, other than those
                contained in this Agreement.

            

    

     

    
      	
              9.

            	
              Such
                Shareholder is acquiring the Acquiror Company Shares for such
                Shareholder’s own account, for investment and not for distribution or
                resale to others.

            

    

     

    
      	
              10.

            	
              Such
                Shareholder will not sell or otherwise transfer the Acquiror Company
                Shares, unless either (a) the transfer of such securities is
                registered under the Securities Act or (b) an exemption from registration
                of such securities is available.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              11.

            	
              Such
                Shareholder understands and acknowledges that the Acquiror Company
                is
                under no obligation to register the Acquiror Company Shares for sale
                under
                the Securities Act.

            

    

     

    
      	
              12.

            	
              Such
                Shareholder consents to the placement of a legend on any certificate
                or
                other document evidencing the Acquiror Company Shares substantially
                in the
                form set forth in
                Section 4.2.5(a).

            

    

     

    
      	
              13.

            	
              Such
                Shareholder represents that the address furnished by such Shareholder
                on
                its signature page to this Agreement and in Exhibit A is such
                Shareholder’s principal residence if he is an individual or its principal
                business address if it is a corporation or other
                entity.

            

    

     

    
      	
              14.

            	
              Such
                Shareholder understands and acknowledges that the Acquiror Company
                Shares
                have not been recommended by any federal or state securities commission
                or
                regulatory authority, that the foregoing authorities have not confirmed
                the accuracy or determined the adequacy of any information concerning
                the
                Acquiror Company that has been supplied to such Shareholder and that
                any
                representation to the contrary is a criminal
                offense.

            

    

     

    
      	
              15.

            	
              Such
                Shareholder acknowledges that the representations, warranties and
                agreements made by such Shareholder herein shall survive the execution
                and
                delivery of this Agreement and the purchase of the Acquiror Company
                Shares.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    NON
      U.S. PERSON REPRESENTATIONS

     

    Each
      Shareholder indicating that it is not a U.S. person, severally and not jointly,
      further represents and warrants to the Acquiror Company as follows:

     

    
      	
              16.

            	
              At
                the time of (a) the offer by the Acquiror Company and (b) the acceptance
                of the offer by such Shareholder, of the Acquiror Company Shares,
                such
                Shareholder was outside the United
                States.

            

    

     

    
      	
              17.

            	
              No
                offer to acquire the Acquiror Company Shares or otherwise to participate
                in the transactions contemplated by this Agreement was made to such
                Shareholder or its representatives inside the United
                States.

            

    

     

    
      	
              18.

            	
              Such
                Shareholder is not purchasing the Acquiror Company Shares for the
                account
                or benefit of any U.S. person, or with a view towards distribution
                to any
                U.S. person, in violation of the registration requirements of the
                Securities Act.

            

    

     

    
      	
              19.

            	
              Such
                Shareholder will make all subsequent offers and sales of the Acquiror
                Company Shares either (x) outside of the United States in compliance
                with
                Regulation S; (y) pursuant to a registration under the Securities
                Act; or
                (z) pursuant to an available exemption from registration under the
                Securities Act. Specifically, such Shareholder will not resell the
                Acquiror Company Shares to any U.S. person or within the United States
                prior to the expiration of a period commencing on the Closing Date
                and
                ending on the date that is one year thereafter (the “Distribution
                Compliance Period”), except pursuant to registration under the Securities
                Act or an exemption from registration under the Securities
                Act.

            

    

     

    
      	
              20.

            	
              Such
                Shareholder is acquiring the Acquiror Company Shares for such
                Shareholder’s own account, for investment and not for distribution or
                resale to others.

            

    

     

    
      	
              21.

            	
              Such
                Shareholder has no present plan or intention to sell the Acquiror
                Company
                Shares in the United States or to a U.S. person at any predetermined
                time,
                has made no predetermined arrangements to sell the Acquiror Company
                Shares
                and is not acting as a Distributor of such
                securities.

            

    

     

    
      	
              22.

            	
              Neither
                such Shareholder, its Affiliates nor any Person acting on such
                Shareholder’s behalf, has entered into, has the intention of entering
                into, or will enter into any put option, short position or other
                similar
                instrument or position in the U.S. with respect to the Acquiror Company
                Shares at any time after the Closing Date through the Distribution
                Compliance Period except in compliance with the Securities
                Act.

            

    

     

    
      	
              23.

            	
              Such
                Shareholder consents to the placement of a legend on any certificate
                or
                other document evidencing the Acquiror Company Shares substantially
                in the
                form set forth in
                Section 4.2.5(b).

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              24.

            	
              Such
                Shareholder is not acquiring the Acquiror Company Shares in a transaction
                (or an element of a series of transactions) that is part of any plan
                or
                scheme to evade the registration provisions of the Securities Act.
                

            

    

     

    
      	
              25.

            	
              Such
                Shareholder has sufficient knowledge and experience in finance,
                securities, investments and other business matters to be able to
                protect
                such Shareholder’s interests in connection with the transactions
                contemplated by this Agreement.

            

    

     

    
      	
              26.

            	
              Such
                Shareholder has consulted, to the extent that it has deemed necessary,
                with its tax, legal, accounting and financial advisors concerning
                its
                investment in the Acquiror Company
                Shares.

            

    

     

    
      	
              27.

            	
              Such
                Shareholder understands the various risks of an investment in the
                Acquiror
                Company Shares and can afford to bear such risks for an indefinite
                period
                of time, including, without limitation, the risk of losing its entire
                investment in the Acquiror Company
                Shares.

            

    

     

    
      	
              28.

            	
              Such
                Shareholder has had access to the Acquiror Company’s publicly filed
                reports with the SEC.

            

    

     

    
      	
              29.

            	
              Such
                Shareholder has been furnished during the course of the transactions
                contemplated by this Agreement with all other public information
                regarding
                the Acquiror Company that such Shareholder has requested and all
                such
                public information is sufficient for such Shareholder to evaluate
                the
                risks of investing in the Acquiror Company
                Shares.

            

    

     

    
      	
              30.

            	
              Such
                Shareholder has been afforded the opportunity to ask questions of
                and
                receive answers concerning the Acquiror Company and the terms and
                conditions of the issuance of the Acquiror Company
                Shares.

            

    

     

    
      	
              31.

            	
              Such
                Shareholder is not relying on any representations and warranties
                concerning the Acquiror Company made by the Acquiror Company or any
                officer, employee or agent of the Acquiror Company, other than those
                contained in this Agreement.

            

    

     

    
      	
              32.

            	
              Such
                Shareholder will not sell or otherwise transfer the Acquiror Company
                Shares, unless either (A) the transfer of such securities is
                registered under the Securities Act or (B) an exemption from registration
                of such securities is available.

            

    

     

    
      	
              33.

            	
              Such
                Shareholder understands and acknowledges that the Acquiror Company
                is
                under no obligation to register the Acquiror Company Shares for sale
                under
                the Securities Act.

            

    

     

    
      	
              34.

            	
              Such
                Shareholder represents that the address furnished by such Shareholder
                on
                its signature page to this Agreement and in Exhibit B is such
                Shareholder’s principal residence if he is an individual or its principal
                business address if it is a corporation or other
                entity.

            

    

     

    
      	
              35.

            	
              Such
                Shareholder understands and acknowledges that the Acquiror Company
                Shares
                have not been recommended by any federal or state securities commission
                or
                regulatory authority, that the foregoing authorities have not confirmed
                the accuracy or determined the adequacy of any information concerning
                the
                Acquiror Company that has been supplied to such Shareholder and that
                any
                representation to the contrary is a criminal
                offense.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              36.

            	
              Such
                Shareholder acknowledges that the representations, warranties and
                agreements made by such Shareholder herein shall survive the execution
                and
                delivery of this Agreement and the purchase of the Acquiror Company
                Shares.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      F

    LOAN
      AND SECURITY DOCUMENTS

    

    

    
      	
              1. Loan
                Agreement between AMI Australia and ANZ Nominees Limited as Custodian
                for
                the Professional Pension PST - Super dated September 8,
                2006.

            
	
              2. Loan
                Agreement between AMI Australia and ANZ Nominees Limited as Custodian
                for
                the Professional Pension PST - Pension dated September 8,
                2006.

            
	
              3. Fixed
                and Floating Charge Agreement between AMI Australia and ANZ Nominees
                Limited as Custodian for the Professional Pension PST - Super dated
                September 8, 2006.

            
	
              4. Fixed
                and Floating Charge Agreement between AMI Australia and ANZ Nominees
                Limited as Custodian for the Professional Pension PST - Pension dated
                September 8, 2006.

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      SCHEDULES

      

      
        	
                Schedule
                  5.1 

              	
                Company
                  Jurisdiction

              
	
                Schedule
                  5.7.1 

              	
                Capitalization
                  of the Company

              
	
                Schedule
                  5.7.2 

              	
                Company
                  Redemption Requirements

              
	
                Schedule
                  5.11 

              	
                Company
                  Brokers or Finders

              
	
                Schedule
                  5.13

              	
                Company
                  Intellectual Property

              
	
                Schedule
                  6.12

              	
                Acquiror
                  Company Changes

              

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        5.1

       

      Company
        Jurisdiction

       

      Victoria,
        Australia

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
        5.7.1

       

      Capitalization
        of the Company

       

      None.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
        5.7.2

       

      Company
        Redemption Requirements

      

       

      None.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
        5.11

       

      Company
        Brokers or Finders

       

      None.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        5.13

      

      Company
        Intellectual Property

      

       

      Application
        for PCT Patent No PCT/AU2004/000931 (WO 2005/004855 A1) and the subsequent
        individual country applications made based on that PCT patent
        application.

       

      The
        worldwide (excluding Australia) formulation rights to the medications used
        in
        the Acquiror Company’s premature ejaculation treatment programs

      

      
        	
                Patent
                  Co-Operation Treaty

              	
                WO
                  2005/004855

              	
                Awaiting
                  NP Entry

              	
                Patent

              
	
                People's
                  Republic of China

              	
                200480019942.9

              	
                Awaiting
                  an Official Action

              	
                Patent

              
	
                Europe

              	
                04737552.2

              	
                Awaiting
                  Examination

              	
                Patent

              
	
                India

              	
                0283/KOLNP/2006

              	
                Awaiting
                  an Official Action

              	
                Patent

              
	
                Japan

              	
                2006-519724

              	
                Awaiting
                  Examination

              	
                Patent

              
	
                New
                  Zealand

              	
                544484

              	
                Awaiting
                  Examination

              	
                Patent

              
	
                United
                  States of America

              	
                10/564273

              	
                Awaiting
                  Examination

              	
                Patent

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Schedule
        6.12

       

      Acquiror
        Company
        Changes

       

      None.

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