Document:

PSIVIDA
      LIMITED

    Level
      12, BGC Centre

    28
      The esplanade, Perth

    WA
      6000 Australia

    

    January
      1, 2006

    

    Dr.
      Paul
      Ashton

    1313
      Washington Street

    Boston,
      MA 02118

    

    Dear
      Dr.
      Ashton:

    

    On
      behalf
      of the Board of Directors of pSivida Limited, an Australian corporation (the
      “Company”),
      I am
      pleased to offer you, Paul Ashton (referred to herein as “you”
      or
“Executive”)
      the
      following employment agreement pursuant to this letter (the “Agreement”):

    

    1. Employment:
      The
      Company agrees to employ you, and you agree to serve in the Company’s employ, on
      and subject to the terms and conditions hereinafter set forth. 

    

    2. Duties
      and Responsibilities: You
      will
      hold the title of and will serve
      as
      (i) Executive Director Strategy of the Company, an executive officer
      position reporting directly to the Chief Executive Officer or Managing Director
      of the Company, (ii) Head of Research and Development Ophthalmology of pSivida
      Inc., a wholly-owned subsidiary of the Company (the “Subsidiary”),
      and
      (iii) until appointment of a President or Chief Executive Officer of the Company
      or until another realignment of the executive management of the Subsidiary,
      Interim President of the Subsidiary. You agree to work full-time at your
      positions with the Company and the Subsidiary and to devote your entire working
      time, skill, attention and best efforts to the discharge of your duties and
      responsibilities and to promoting the best interests of the Company and the
      Subsidiary. Your duties and responsibilities shall include (i) in your capacity
      as Executive Director Strategy of the Company, the production of overall
      strategic business and development plans for the Company, (ii) in your capacity
      as Head of Research and Development Ophthalmology of the Subsidiary, directing
      the research and development efforts of the Subsidiary in the area of
      ophthalmology, (iii) in your capacity as Interim President of the Subsidiary,
      ensuring effective communication between the Subsidiary and the Company’s other
      business units, particularly with respect to milestones and general management
      matters, including meetings and discussions with the Company’s Chief Executive
      Officer and, to the extent required, the Chairman, and (iv) those duties and
      responsibilities consistent with your positions as Executive Director Strategy
      of the Company and Head of Research and Development Ophthalmology of the
      Subsidiary as may be assigned to you from time to time by the Board of Directors
      of the Company or the Subsidiary, as the case may be. Participation in
      charitable and professional organizations is allowed so long as such activities
      do not interfere with your duties and responsibilities or compete with the
      business and activities of the Company or the Subsidiary, as further set forth
      in that certain Non-Competition Agreement, dated October 3, 2005, between you
      and the Company (the “Non-Competition
      Agreement”).
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Term:
      The
      term
      of your employment will be from the date hereof until such time as your
      employment is terminated by mutual consent of the parties or in accordance
      with,
      and subject to the obligations set forth in, Section 8. 

    

    4. Compensation:
      You
      shall
      receive compensation commensurate with that received by the other Executive
      Directors of the Company, including without limitation the following initial
      terms:

    

    (a) Base
      Salary:
      Your
      base salary as of the date hereof will be Three Hundred Thousand Dollars
      ($300,000) per year (the “Base
      Salary”),
      payable in accordance with the policies and procedures of the Company or the
      Subsidiary, as the case may be, as in effect from time to time. The Company
      will
      review your Base Salary on an annual basis and may elect to increase (but not
      decrease) it pursuant to such review. 

    

    (b) Bonus: In
      addition to your base salary, you will be eligible to receive an annual cash
      bonus in an amount to be determined by the Company’s Board of Directors (the
“Bonus”).
      

    

    (c) Stock
      Options: You
      will
      be eligible to participate in the Company’s Employee Share Option Plan in
      accordance with the terms and guidelines thereof. The issuance of options and
      shares thereunder shall be subject to the approval of the Board of Directors
      or
      shareholders of the Company. Notwithstanding the foregoing, the Company agrees
      that you will receive grants of stock options commensurate with those received
      by other Executive Directors of the Company. In addition, as soon as practicable
      after the execution of this Agreement, you will be granted stock options to
      purchase 500,000 of the Company’s ordinary shares at an exercise price of 0.92
      Australian dollars per share. Except as provided in Section 8(c), these options
      shall vest in accordance with the vesting schedule described below, subject
      to
      the Company achieving certain milestones that the parties shall determine by
      mutual agreement, and once vested shall be exercisable (unless earlier
      terminated) until December 31, 2010.
      

     

    
      	
              Number
                of Ordinary Shares

            	
              Vesting
                Schedule

            
	 	 
	
              250,000

            	
              December
                31, 2006

            
	 	 
	
              250,000

            	
              December
                31, 2007

            

    

    

    The
      initial terms set forth above shall be subject to review and adjustment on
      an
      annual basis to ensure that your overall compensation package is commensurate
      with the compensation package, including base salary, bonus and stock options
      grants, of other Executive Directors of the Company.

    

    5. Expenses:
      You
      shall
      be reimbursed for reasonable business-related expenses in accordance with
      applicable policies and procedures of the Company or the Subsidiary, as the
      case
      may be, as in effect from time to time. 

    

    
      
         

      

      
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    6. Vacation,
      Fringe Benefits and Indemnification: You
      will
      be entitled to four (4) weeks’ paid vacation per calendar year and fringe
      benefits in accordance with the policies of the Subsidiary, which benefits
      shall
      include (i) participation in any employee pension benefit plan within the
      meaning of Section 3(2) of the Employee Retirement Income Security Act of 1974,
      as amended (“ERISA”),
      including the 401(k) savings plan adopted or maintained by the Subsidiary,
      made
      generally available to executives of the Subsidiary and (ii) participation
      in
      any health insurance, disability insurance, group life insurance or any other
      employee welfare benefit plan within the meaning of Section 3(1) of ERISA made
      generally available to executives of the Subsidiary. The Company and the
      Subsidiary will provide you with indemnification to the fullest extent permitted
      under the applicable Certificate of Incorporation, By-Laws, Constitution or
      other governing documents of the Company or the Subsidiary, as the case may
      be.

    

    7. Taxes:
      All
      payments made to you pursuant to this Agreement or otherwise in connection
      with
      your employment shall be subject to the usual withholding practices of the
      Company or the Subsidiary, as the case may be, and will be made in compliance
      with existing federal and state requirements regarding the withholding of
      taxes.

    

    8. Termination
      and Severance Benefits: Either
      you or the Company may at any time terminate your employment with the Company
      and the Subsidiary after giving two weeks’ notice to the other party, provided
      that the parties discharge their respective obligations as set forth in this
      Section 8 and elsewhere in this Agreement. 

    

    (a) Termination
      Upon Death or Disability: If
      you
      cease to be an employee of the Company and the Subsidiary as a result of death
      or Disability, the Company will have no further obligation or liability to
      you
      hereunder other than for (i) Base Salary earned and unpaid at the date of
      termination, (ii) Bonus earned (i.e.
      all
      targets or other requirements necessary to receive the Bonus have been met)
      but
      unpaid at the date of termination, if any, and (iii) compensation for accrued
      vacation, if any (the “Accrued
      Obligations”).
      However, nothing in this Agreement shall adversely affect your rights or those
      of your family or beneficiaries under any applicable plans, policies or
      arrangements of the Company or the Subsidiary. 

    

    (b) Termination
      by the Company for Cause or by You Without Good Cause: If
      the
      Company terminates your employment for Cause (as defined in Section 8(d)) or
      if
      you terminate your employment other than for Good Cause (as defined in Section
      8(d)), the Company and the Subsidiary shall have no further obligation or
      liability to you hereunder other than for payment of the Accrued Obligations.
      

    

    (c) Termination
      by the Company Without Cause or by You for Good Cause: If
      the
      Company terminates your employment other than for Cause, or you terminate your
      employment for Good Cause, then, in addition to payment of the Accrued
      Obligations, you shall receive the following: 

    

    (i) The
      Company will pay you, within thirty (30) days following the later of (a) the
      termination of employment, or (b) the date you deliver to the Company a release
      of claims in accordance with Section 8(e), a lump-sum cash amount equal to
      the
      sum of (x) an amount equal to one year’s then-current Base Salary plus (y) a pro
      rata portion (based on the number of weeks worked in the year of termination)
      of
      the Maximum Bonus (as defined in Section 8(d)) that would otherwise be payable
      to you in the year that the termination occurs, if any (the “Severance
      Payment”).
      The
parties acknowledge and agree that the obligation to pay the Severance Payment
      is solely that of the Company and that none of the directors or officers of
      the
      Company or the Subsidiary shall have any personal liability with respect
      thereto. You understand that payments to be made to you pursuant to Section
      3(c)
      of the Non-Competition Agreement shall be offset against (and consequently
      reduced by) any payments made to you hereunder, on a dollar-for-dollar basis.
      

    

    
      
         

      

      
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    (ii) The
      Company will continue, for a period of twelve (12) months after termination,
      to
      provide you with medical benefits under (as the case may be) the Company’s or
      the Subsidiary’s group medical plan, life insurance arrangements and disability
      arrangements equivalent to those provided to executive-level employees. To
      the
      extent that the Company is unable to provide such benefits to you under its
      existing plans and arrangements, the Company will pay you cash amounts equal
      to
      the cost the Company or the Subsidiary would have incurred to provide those
      benefits. 

    

    (iii) Notwithstanding
      the terms of any awards of stock options or restricted stock, all options to
      purchase Company stock held by you will automatically and immediately vest
      and
      become exercisable upon such termination and remain exercisable for a period
      of
      six (6) months thereafter (except that incentive stock options shall be
      exercisable for only three (3) months thereafter), and all restricted stock
      held
      by you pursuant to the restricted stock plans or arrangements of the Company
      shall automatically and immediately vest and no longer be subject to forfeiture.
      

    

    (iv) Notwithstanding
      any other provision of this Agreement, should any benefit payment that is
      described in this subsection (c) be subject to Section 409A of the Internal
      Revenue Code of 1986 as amended, the Company is authorized to make payments
      in a
      manner that complies with the requirements of Section 409A. However, in the
      event that one or more provisions of Section 409A is violated, the Company
      shall
      not be responsible for the payment of any tax liability, penalties or interest
      that are imposed upon you as a result of said violation, nor shall the Company
      be under any obligation to make you whole or otherwise compensate you for such
      additional liability.

    

    (d) Definitions:
      The
      following terms shall have the meanings set forth below:

    

    “Cause”
      shall
      mean, in respect of the termination of your employment by the Company, (a)
      willful malfeasance, gross misconduct or gross negligence in your performance
      of
      the duties of your position that has a material adverse effect on the Company
      or
      the Subsidiary, (b) the material breach by you of this Agreement or of Sections
      3(a), 4, 5 or 6 of the Non-Competition Agreement, (c) fraud or dishonesty by
      you
      with respect to the Company, the Subsidiary or your employment, (d) your
      conviction of any crime that involves deception, fraud or moral turpitude or
      any
      felony (including, in each case, entry of a guilty or nolo
      contendere plea
      and
      excluding traffic violations or similar minor offenses), or (e) your
      repeated or prolonged absence from work other than for illness, Disability
      or
      authorized vacation. The Company may treat a termination of your employment
      as
      termination for Cause only after (i) giving you written notice of the intention
      to terminate for Cause, including a description of the conduct that the Company
      believes constitutes the basis for a Cause termination, and of your right to
      a
      hearing by the Company’s Board of Directors, (ii) in the event of a termination
      under clause (a), (b) or (e) above, providing you with a 30-day period in which
      to cure the conduct giving rise to the Company’s notice of a Cause termination,
      unless, with respect to clause (a) and (b) above, (I) in the Company’s
      reasonable judgment, protective action inconsistent with such cure period (e.g.,
      immediate termination) is necessary to avoid harm to the Company of the
      Subsidiary or (II) the Company reasonably determines that your conduct is
      egregious, in which event, the Company may shorten the cure period or terminate
      your employment immediately (subject to the requirements set forth in clauses
      (iii) and (iv) below), (iii) at least 30 days after giving the notice,
      conducting a hearing by the Board at which you may be represented by counsel,
      and (iv) giving you written notice of the results of the hearing and the factual
      basis for the Board’s determination of Cause, which shall require a vote of a
      majority of the members of the Board then in office other than yourself. Except
      in connection with your opportunity, if any, to cure the conduct giving rise
      to
      the Company’s notice of termination for Cause as set forth in clause (ii) above,
      nothing in the foregoing sentence shall prevent the Company from terminating
      your employment pending any determination of Cause as set forth in the foregoing
      sentence, any such determination shall be retroactive to the date of
      termination, and the Company shall not be obligated to compensate you hereunder
      for the period from such termination until such time, if any, as the Company’s
      Board of Directors determines that such termination was not for Cause.
      Notwithstanding the foregoing, Cause shall not include an act or failure to
      act
      based on authority given pursuant to a resolution duly adopted by the Company’s
      Board of Directors or based on the advice of the Company’s General Counsel or
      willful failure due to incapacity resulting from Disability or any actual or
      anticipated failure after you provide written notice of a termination for Good
      Cause.

    

    
      
         

      

      
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    “Disability”
      shall
      mean physical or mental incapacity of a nature which prevents you, in the
      professional judgment of your physician or, at the Company’s election, a
      board-certified physician mutually agreed upon by the Company and you, from
      performing the essential functions of your position with the Company or the
      Subsidiary with or without a reasonable accommodation for a period of ninety
      (90) consecutive days or one hundred eighty (180) days during any consecutive
      12-month period.

    

    “Good
      Cause” shall
      mean, in respect of the termination of your employment by you, (i) failure
      by
      the Company to maintain you in the positions of Head of Research and Development
      Ophthalmology of the Subsidiary and Executive Director Strategy of the Company,
      without your consent, (ii) a material diminution of your duties and
      responsibilities in such positions or a material diminution of your authority
      with respect to such positions, as described in Section 2 hereof, excluding
      for
      this purpose an isolated, insubstantial and inadvertent action not taken in
      bad
      faith and which is remedied by the Company promptly after receipt of written
      notice thereof given by you, (iii) a breach by the Company of any material
      term
      of this Agreement or the Non-Competition Agreement, or (iv) relocation of your
      principal place of work to a location more than thirty (30) miles from your
      address as set forth in Section 10 below without your prior consent. You may
      treat a resignation from employment as termination for Good Cause only after
      (a)
      giving the Company written notice of the intention to terminate for Good Cause,
      (b) providing the Company at least 30 days after receipt of such notice to
      cure the conduct or action giving rise to Good Cause, unless, with respect
      to
      clause (i) and (ii), you reasonably determine that the Company’s conduct is
      egregious and has resulted in significant, irreparable harm to you, in which
      event, you may shorten the cure period or terminate your employment immediately,
      and (c) if applicable, the Company has failed to cure the action or conduct
      giving rise to Good Cause during the 30 day cure period.

    

    
      
         

      

      
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    “Maximum
      Bonus” shall
      mean your bonus for the year in which termination occurs, calculated on the
      assumption that all targets and formulas for determining such bonus have been
      met. If no such targets or formulas have been established, then the Maximum
      Bonus shall be the total bonus you were eligible to receive during the preceding
      fiscal year, calculated on the assumption that all targets and formulas for
      determining such bonus have been met. The Maximum Bonus (A) payable upon
      termination shall be reduced by any bonus payments relating to services
      performed in the year in which termination occurs that (1) have already been
      paid to you as of the date of termination, (2) are payable to you as an Accrued
      Obligation hereunder, or (3) could have been earned during the year in which
      termination occurs but that were not so earned because of the failure to achieve
      targets or formulas which are no longer able to be achieved, and (B) shall
      not
      include any bonus paid or payable in the year in which termination occurs to
      the
      extent such payment represents payment for services rendered in a prior year.
      By
      way of illustration and not limitation, if you are paid a bonus on February
      18,
      2008 relating to your performance during all or part of the 2007 calendar year
      and you are later terminated without Cause on August 31, 2008, the Maximum
      Bonus
      payment due upon termination will not be reduced by the bonus payment received
      on February 15, 2008, nor shall the amount of the February 15, 2008 bonus be
      included as part of the Maximum Bonus, because such payment relates to service
      rendered in the year preceding the year in which termination occurs. If you
      are
      paid a bonus on July 15, 2008 relating to your performance during the first
      and/or second quarter of the 2008 calendar year and are later terminated without
      Cause on August 31, 2008, the Maximum Bonus payment due upon termination will
      be
      reduced by the bonus payment received on July 15, 2008 because such payment
      relates to services rendered in the year in which termination occurs, and if
      you
      do not receive a bonus for the first and/or second quarter of the 2008 calendar
      year because quarterly performance objectives had not been achieved, the amount
      of such bonus that could have been earned shall not be included in determining
      the Maximum Bonus.

    

    (e) Release:
      Notwithstanding anything to the contrary contained in this Agreement, in order
      for you to be eligible for any severance benefits under this Section 8, you
      must
      execute and deliver to the Company (and not revoke within seven (7) days of
      executing) the release of claims in the attached as Exhibit
      A
      hereto.

    

    9. Non-Disparagement:
      You
      will
      not at any time during or after the term of your employment hereunder make
      any
      statement to any person, including, without limitation, employees, customers,
      suppliers or competitors of the Company or the Subsidiary, that is derogatory
      or
      negative about the Company or the Subsidiary or their respective affiliates
      or
      any statement regarding the future plans of the Company. 
      This
      Section 9 will not apply to any statements made by you (i) in support of any
      claim or defense asserted by you in any mediation, arbitration or litigation
      process or proceeding between you and the Company or the Subsidiary and (ii)
      made only within the specific forum (i.e. arbitral tribunal, courtroom) in
      which
      such mediation, arbitration or litigation is taking place. 

    

    
      
         

      

      
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    10. Notices:
      Any
      notices required or permitted to be sent under this Agreement shall be effective
      when delivered by hand or mailed by registered or certified mail, return receipt
      requested, and addressed as follows:

    

    If
      to the
      Company:

    

    pSivida
      Limited

    Level
      12,
      BGC Centre

    28
      The
      Esplanade, Perth

    WA
      6000
      Australia

    GPO
      Box
      2535

    Perth,
      WA
      6831

    

    Attn:
      Chief Executive Officer, pSivida Limited

    

    With
      a
      copy to:

    

    Curtis,
      Mallet-Prevost, Colt & Mosle LLP

    101
      Park
      Avenue

    New
      York,
      NY 10178

    Attn:
      Lawrence Goodman, Esq.

    

    If
      to
      Executive:

    

    Paul
      Ashton

    1313
      Washington Street 

    Boston,
      MA 02118

    

    Either
      party may change its address for receiving notices by giving notice to the
      other
      party.

    

    11. Waiver:
      The
      failure of either party to enforce any of the provisions of this Agreement
      shall
      not be deemed a waiver thereof. No provision of this Agreement shall be deemed
      to have been waived or modified unless such waiver or modification shall be
      in
      writing and signed by both parties hereto.

    

    12. Arbitration:
      All
      controversies and disputes between or among any of the parties hereto arising
      out of or in connection with the interpretation, performance or enforcement
      of
      this Agreement, whether based on federal, state or foreign law and whether
      grounded in common law or statutory law, shall be settled exclusively by
      arbitration conducted as provided herein, and otherwise in accordance with
      the
      National Employment Rules of the American Arbitration Association. 

    

    (a) Procedure:
      The
      arbitration shall be administered by the American Arbitration Association,
      as
      follows:

    

    (i) the
      arbitration shall be conducted in Boston, Massachusetts by a panel of three
      (3)
      arbitrators, jointly selected by the parties, except that if the parties are
      unable to agree on all three arbitrators within fifteen (15) days after demand
      for arbitration has been made (or such later time as the parties may agree),
      the
      arbitration shall be conducted by three (3) arbitrators as are selected in
      accordance with the applicable rules of the American Arbitration
      Association;

    

    
      
         

      

      
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    (ii) final
      decision shall be by a majority of the arbitrators, which arbitrators shall
      prepare and deliver a written reasoned award. Judgment upon the award rendered
      by the arbitrators may be entered in any court having jurisdiction thereof;
      and

    

    (iii) all
      costs
      and fees relating to the arbitration shall be borne by the losing party, except
      that if the arbitrators determine that any party has prevailed in part and
      lost
      in part, the costs and fees relating to the arbitration shall be allocated
      between the parties as equitably determined by the arbitrators.

    

    (b) Refusal
      to Arbitrate:
      The
      failure or refusal of any party to submit to arbitration shall be deemed a
      breach of this Agreement. If a party seeks and secures judicial intervention
      requiring enforcement of this Section 12, such party shall be entitled to
      recover from the other party in such judicial proceeding all costs and expenses,
      including reasonable attorneys’ fees, that it was thereby required to incur.

    

    (c) Sole
      Procedure:
      The
      procedures specified in this Section 12 shall be the sole and exclusive
      procedures for the resolution of disputes between the parties arising out of
      or
      relating to this Agreement; provided, however, that a party, without prejudice
      to the above procedures, may seek a preliminary injunction or other equitable
      relief if in its judgment such action is necessary to avoid irreparable damage
      or to preserve the status quo. Despite such action the parties will continue
      to
      participate in good faith in the procedures specified in this
      Section 12.

    

    13. No
      Duty to Mitigate; No Offset:
      Benefits
      payable under this Agreement as a result of termination of your employment
      will
      be considered severance pay in consideration of your past service and your
      continued service or obligations from and after the date of execution of this
      Agreement, and your entitlement thereto will neither be governed by any duty
      to
      mitigate your damages by seeking further employment or offset by any
      compensation you may receive from other employment following the date of your
      termination of employment. Notwithstanding the foregoing, you agree that the
      Company may cease its payment for, or provision of, one or more of the continued
      benefits under Section 8(c)(ii) during the twelve month period following the
      date of your termination from employment to the extent that you obtain
      comparable benefit coverage with another employer. This provision shall be
      applied in an ad
      seriatim
      basis so
      that the Company may only cease payment of those comparable benefits that you
      obtain with another employer. You agree to notify the Company as soon as
      practicable in the event that you obtain comparable coverage or benefits during
      the period noted above and you acknowledge that the Company’s obligation to
      continue payment for, or provision of, benefits shall cease from and after
      the
      date you obtain comparable coverage. 

    

    14. Successors:
      This
      agreement shall inure to and be binding upon the Company’s successors and
      assigns. The Company shall require any successor to all or substantially all
      of
      the business or assets of the Company by sale, merger or consolidation (where
      the Company is not the surviving corporation), lease or otherwise, to expressly
      assume this Agreement. This Agreement is not otherwise assignable by the Company
      or you. 

    

    
      
         

      

      
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    15. Rights
      of Survivors:
      If you
      die after becoming entitled to benefits under this Agreement following
      termination of employment but before all such benefits have been provided,
      (a)
      all unpaid cash amounts will be paid to your designated beneficiary or, if
      no
      such beneficiary has been designated, to your estate, (b) all applicable
      insurance coverage will be provided to your family as though you had continued
      to live, to the extent permitted under the plans, and (c) any stock options
      that
      become exercisable under Section 8 will be exercisable by the beneficiary or,
      if
      none, the estate. 

    

    16. Entire
      Agreement; Termination:
      This
      Agreement together with the Non-Competition Agreement shall constitute the
      entire agreement of the parties pertaining to this subject matter and shall
      supersede all prior agreements, representations and understandings of the
      parties with respect to such subject matter. Any and all employment, severance,
      compensation, or other agreements and arrangements between the Executive and
      the
      Company or the Subsidiary, whether dating from before or after the Company’s
      acquisition of the Subsidiary (including, without limitation, the Severance
      Agreement, dated February 20, 2004, between the executive and the Subsidiary,
      as
      amended, and the Amended and Restated Change of Control Agreement, dated August
      17, 2004, between the Executive and the Subsidiary) are hereby terminated and
      of
      no further force and effect, and no parties shall have any further rights,
      obligations or liabilities thereunder; provided,
      however,
      that
      the Retention Agreement, dated September 29, 2005, between the Executive, the
      Subsidiary and the Company shall remain in full force and effect. The parties
      hereto acknowledge and agree that this Agreement satisfies the Company’s
      obligations under Section 2(b) of the Non-Competition Agreement.

    

    17. Partial
      Invalidity.
      If any
      provision in this Agreement is held by a court of competent jurisdiction to
      be
      invalid, void or unenforceable, the remaining s nevertheless shall continue
      in
      full force and effect without being impaired or invalidated in any
      manner.

    

    18. Counterparts:
      This
      Agreement may be executed in several counterparts, each of which shall be deemed
      to be an original but all of which together shall constitute one and the same
      instrument. 

    

    19. Governing
      Law. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Commonwealth of Massachusetts. The parties agree that any action to enforce
      the
      terms of this Agreement shall be commenced in, and subject to the exclusive
      jurisdiction of, Suffolk County, Boston, Massachusetts. 

    

    [Signature
      Page to Immediately Follow]

    

    
      
         

      

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

     

    
      	 	
              PSIVIDA
                LIMITED

              

              

              By: 
                /s/
                Gavin
                Rezos                                        
                

              Name:
                Gavin Rezos

              Title:
                Managing Director

               

            

    

     

    EXECUTIVE

    

    By: 
      /s/
      Paul
      Ashton                                         

    Name:
      Paul Ashton

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    RELEASE
      OF CLAIMS

    

    FOR
      AND
      IN CONSIDERATION OF the benefits to be provided me in connection with the
      termination of my employment, as set forth in the Employment Agreement between
      myself and pSivida Limited (the “Company”)
      dated
      as of ________ __, 2005 (the “Agreement”),
      which
      benefits are subject to my signing of this Release of Claims and to which I
      am
      not otherwise entitled, and for other good and valuable consideration, the
      receipt and sufficiency of which is hereby acknowledged, I, on my own behalf
      and
      on behalf of my heirs, executors, administrators, beneficiaries, representatives
      and assigns, and all others connected with me, hereby release and forever
      discharge the Company, the Subsidiary (as defined in the Agreement), its other
      subsidiaries and other affiliates and all of their respective past, present
      and
      future officers, directors, trustees, shareholders, employees, agents, general
      and limited partners, members, managers, joint venturers, representatives,
      successors and assigns, and all others connected with any of them, both
      individually and in their official capacities, from any and all causes of
      action, rights and claims of any type or description, known or unknown, which
      I
      have had in the past, now have, or might now have, through the date of my
      signing of this Release of Claims, in any way resulting from, arising out of
      or
      connected with my employment by the Company or the Subsidiary or any of its
      other subsidiaries or other affiliates or the termination of that employment
      or
      pursuant to any federal, state or local law, regulation or other requirement
      (including without limitation Title VII of the Civil Rights Act of 1964, the
      Age
      Discrimination in Employment Act, the Americans with Disabilities Act, and
      the
      fair employment practices laws of the state or states in which I have been
      employed by the Company or any of the subsidiaries or other affiliates, each
      as
      amended from time to time).

    

    Excluded
      from the scope of this Release of Claims is (i) any claim arising under the
      terms of the Agreement and (ii) any right of indemnification or
      contribution that I have pursuant to the Certificate of Incorporation,
      Constitution, By-Laws or other governing documents of the Company or the
      Subsidiary.

    

    In
      signing this Release of Claims, I acknowledge my understanding that I may not
      sign it prior to the termination of my employment, but that I may consider
      the
      terms of this Release of Claims for up to twenty-one (21) days (or such longer
      period as the Company may specify) from the later of the date my employment
      with
      the Company terminates or the date I receive this Release of Claims. I also
      acknowledge that I am advised by the Company and its affiliates to seek the
      advice of an attorney prior to signing this Release of Claims; that I have
      had
      sufficient time to consider this Release of Claims and to consult with an
      attorney, if I wished to do so, or to consult with any other person of my
      choosing before signing; and that I am signing this Release of Claims
      voluntarily and with a full understanding of its terms.

    

    I
      further
      acknowledge that, in signing this Release of Claims, I have not relied on any
      promises or representations, express or implied, that are not set forth
      expressly in the Agreement. I understand that I may revoke this Release of
      Claims at any time within seven (7) days of the date of my signing by written
      notice to the General Counsel of the Company and that this Release of Claims
      will take effect only upon the expiration of such seven-day revocation period
      and only if I have not timely revoked it.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    Intending
      to be legally bound, I have signed this Release of Claims under seal as of
      the
      date written below.

    

    Signature:
      _________________________________

    

    Name
      (please print): __________________________

    

    Date
      Signed: _______________________________

    

    
      
         

      

      
        12BLAKE
                DAWSON WALDRON

            
	 	
              L
                A
                W Y E R S

            
	 

    

     

     

    Deed
      of Release

     

    pSivida
      Limited

     

    ACN 009
      232
      026

    
 

    Aymon
      Pacific Pty Ltd

     

    ACN
      065
      198 316

     

     

    Viaticus
      Capital Pty Ltd

     

    ACN
      094
      512 973

     

     

    Gavin
      Rezos

    
 

    
      
        
          
            
              	
                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                      Level
                        32, Exchange Plaza

                      2
                        The Esplanade

                      Perth
                        WA 6000

                      Telephone:
                        08 9366 8000

                      Fax:
                        08 9366 8111

                    	 	
                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                      17
                        August 2006

                       

                      Ref:
                        DFP STJL 09 1395 3581

                    

            

             

            ©
              Blake Dawson Waldron 2006

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

     

    CONTENTS

     

    
      	
               

              1.

            	
               

              INTERPRETATION

            	
               

              2

            
	
               

              2.

            	
               

              TERMINATION
                OF ARRANGEMENT AND RESIGNATION FROM OFFICES

            	
               

              3

            
	
               

              3.

            	
               

              PROVISION
                OF BENEFITS TO AYMON PACIFIC

            	
               

              4

            
	
               

              4.

            	
               

              OPTIONS

            	
               

              4

            
	
               

              5.

            	
               

              RELEASES
                RELATING TO THE OFFICES

            	
               

              5

            
	
               

              6.

            	
               

              RELEASES
                RELATING TO ARRANGEMENT AND TERMINATION

            	
               

              5

            
	
               

              7.

            	
               

              RETURNING
                PROPERTY

            	
               

              6

            
	
               

              8.

            	
               

              CONFIDENTIAL
                INFORMATION AND CONTINUING OBLIGATIONS

            	
               

              6

            
	
               

              9.

            	
               

              BAR
                TO PROCEEDINGS

            	
               

              6

            
	
               

              10.

            	
               

              ACKNOWLEDGEMENTS
                BY AYMON PACIFIC AND REZOS

            	
               

              6

            
	
               

              11.

            	
               

              KEEPING
                THIS DOCUMENT CONFIDENTIAL

            	
               

              6

            
	
               

              12.

            	
               

              BENEFIT
                OF THIS DOCUMENT

            	
               

              7

            
	
               

              13.

            	
               

              AMENDMENT

            	
               

              7

            
	
               

              14.

            	
               

              GENERAL

            	
               

              7

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    DEED
      OF RELEASE

     

    DEED made
      August 2006

     

    PARTIES

     

    pSivida
      Limited ACN 009
      232
      026 of Level 12, BGC Centre, 28 The Esplanade, Perth, Western Australia 6000
      (pSivida)

     

    Aymon
      Pacific Pty Ltd ACN
      065
      198 135 of Level 12, BGC Centre, 28 The Esplanade, Perth WA 6000 (Aymon
      Pacific)

     

    Viaticus
      Capital Pty Ltd ACN
      094
      512 973 of Level 12, BGC Centre, 28 The Esplanade, Perth WA 6000 (Viaticus
      Capital)

     

    Gavin
      Rezos of
      9
      Renown Avenue, Claremont, WA 6011 (Rezos)

     

    RECITALS

     

    
      	
              A.

            	
              Rezos
                was appointed to the position of managing director of pSivida Limited
                based in Perth, Western Australia pursuant to an arrangement
                whereby:

            

    

     

    
      	 	
              (a)

            	
              Rezos
                is the nominated individual who provides management services to pSivida,
                formerly on behalf of Aymon Pacfic, and subsequently on behalf of
                Viaticus
                Capital pursuant to a consultancy
                agreement;

            

    

     

    
      	 	
              (b)

            	
              Rezos
                is a director of pSivida for which he receives a fee (the Arrangement).
                

            

    

     

    
      	
              B.

            	
              Rezos
                is a member of the boards of pSivida, pSivida Inc, pSiMedica Limited,
                sPiOncology Limited and pSiNutria Limited (the Offices).

            

    

     

    
      	
              C.

            	
              Rezos
                is a non-executive director of AION Diagnostics Inc and AION Diagnostics
                Limited (collectively, AION).

            

    

     

    
      	
              D.

            	
              The
                Arrangement will terminate on 31 July 2006 because Rezos can no longer
                provide services in the position of managing director for personal
                family
                reasons
                on
                the basis that the role requires a majority of time to be spent outside
                Australia at locations where pSivida’s facilities, majority of staff,
                business partners and larger institutional shareholders are located
                (the
                Termination).

            

    

     

    
      	
              E.

            	
              pSivida
                accepts the Termination.

            

    

     

    
      	
              F.

            	
              Rezos
                will resign from the Offices on or before the
                Termination.

            

    

     

    
      	
              G.

            	
              Rezos
                will provide consultancy services to pSivida for a period of up to
                6
                months following the Termination.

            

    

     

    
      	
              H.

            	
              Rezos
                will continue to serve as non-executive director of AION as pSivida's
                nominee and at the pleasure of the Board of Directors of pSivida
                (the
                Board).

            

    

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    OPERATIVE
      PROVISIONS

     

    
      	
              1.

            	
              INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    The
      following definition applies in this document.

     

    Aymon
      Pacific means
      each of Aymon Pacific Pty Ltd and Viaticus Capital Pty Ltd and their respective
      officers, employees and agents and any entity that is connected with either
      Aymon Pacific Pty Ltd or Viaticus Capital Pty Ltd by a common interest in an
      economic enterprise, for example, a related body corporate (as that term is
      defined by the Corporations
      Act 2001
      (Cth)) or a joint venture partner.

     

    Group
      means
      pSivida
      Limited and its officers, employees and agents and any entity that is connected
      with pSivida by a common interest in an economic enterprise, for example, a
      related body corporate (as that term is defined by the Corporations
      Act 2001
      (Cth))
      or a joint venture partner, including:

     

    
      	 	
              (a)

            	
              pSivida
                Inc;

            

    

     

    
      	 	
              (b)

            	
              pSiMedica
                Limited;

            

    

     

    
      	 	
              (c)

            	
              sPiOncology
                Limited;

            

    

     

    
      	 	
              (d)

            	
              pSiNutria
                Limited;

            

    

     

    
      	 	
              (e)

            	
              AION
                Diagnostics Limited;
                and

            

    

     

    
      	 	
              (f)

            	
              AION
                Diagnostics Inc;

            

    

     

    and
      each
      of their respective officers, employees and agents. 

     

    
      	 	
              1.2

            	
              Rules
                for interpreting this
                document

            

    

     

    Headings
      are for convenience only, and do not affect interpretation. The following rules
      also apply in interpreting this document, except where the context makes it
      clear that a rule is not intended to apply.

     

    
      	 	
              (a)

            	
              A
                reference to:

            

    

     

    
      	 	
              (i)

            	
              a
                document or agreement, or a provision of a document or agreement,
                is to
                that document, agreement or provision as amended, supplemented, replaced
                or novated;

            

    

     

    
      	 	
              (ii)

            	
              a
                party to this document or to any other document or agreement includes
                a
                permitted substitute or a permitted assign of that party;
                

            

    

     

    
      	 	
              (iii)

            	
              a
                person includes any type of entity or body of persons, whether or
                not it
                is incorporated or has a separate legal identity, and any executor,
                administrator or successor in law of the person;
                and

            

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iv)

            	
              anything
                (including a right, obligation or concept) includes each part of
                it.

            

    

     

    
      	 	
              (b)

            	
              A
                singular word includes the plural, and vice
                versa.

            

    

     

    
      	 	
              (c)

            	
              A
                word which suggests one gender includes the other
                genders.

            

    

     

    
      	 	
              (d)

            	
              If
                a word is defined, another part of speech has a corresponding
                meaning.

            

    

     

    
      	 	
              (e)

            	
              If
                an example is given of anything (including a right, obligation or
                concept), such as by saying it includes something else, the example
                does
                not limit the scope of that thing. 

            

    

     

    
      	 	
              (f)

            	
              A
                reference to Group
                includes any member of the Group.

            

    

     

    
      	 	
              1.3

            	
              Multiple
                parties

            

    

     

    If
      a
      party to this document is made up of more than one person, or a term is used
      in
      this document to refer to more than one party:

     

    
      	 	
              (a)

            	
              an
                obligation of those persons is joint and
                several;

            

    

     

    
      	 	
              (b)

            	
              a
                right of those persons is held by each of them severally;
                and

            

    

     

    
      	 	
              (c)

            	
              any
                other reference to that party or term is a reference to each of those
                persons separately, so that (for example) a representation, warranty
                or
                undertaking is given by each of them
                separately.

            

    

     

    
      	
              2.

            	
              Termination
                of ARRANGEMENT and RESIGNATION FROM
                OFFICES

            

    

     

    
      	
              2.1

            	
              Aymon
                Pacific, Rezos and pSivida agree to terminate the Arrangement, with
                effect
                31 July 2006.

            

    

     

    
      	
              2.2

            	
              Rezos
                will provide services to pSivida in accordance with a new consultancy
                agreement commencing 1 August 2006, the essential terms of which
                will include:

            

    

     

    
      	 	
              (a)

            	
              a
                six month fixed term;

            

    

     

    
      	 	
              (b)

            	
              a
                contract fee, the total cost of which to pSivida will not exceed
                A$329,000
                (exclusive of GST); and

            

    

     

    
      	 	
              (c)

            	
              for
                so long as pSivida maintains a Perth office, whether during the term
                of
                the consultancy agreement or thereafter, pSivida will provide Rezos
                with
                use of a laptop computer, desktop computer, office, car space and
                secretarial services (subject to pSivida executives being given preference
                over Rezos in relation to the provision of secretarial
                services).

            

    

     

    
      	
              2.3

            	
              Prior
                to, or immediately upon execution of this document, Rezos will resign
                from
                all directorships, offices and positions that Rezos holds in
                the Group
                (with the sole exception of his positions as non-executive director
                of
                AION Diagnostics Inc and AION Diagnostics Limited) or in any external
                organisation in connection with the Arrangement and
                the

            

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    Offices
      and will execute all documents and do all things necessary to effect these
      resignations.

     

    
      	
              2.4

            	
              If
                Rezos does not immediately resign from all directorships, offices
                and
                positions, Rezos authorises pSivida (or any persons authorised by
                pSivida)
                to do all things and execute all documents necessary on behalf of
                Rezos to
                effect these resignations.

            

    

     

    
      	
              2.5

            	
              Rezos
                agrees to execute all documents and do all things necessary to resign
                from
                his position as non-executive director of AION Diagnostics Inc and
                AION
                Diagnostics Limited immediately upon receipt of a direction to do
                so from
                the Board.

            

    

     

    
      	
              3.

            	
              PROVISION
                OF BENEFITS TO AYMON
                PACIFIC

            

    

     

    
      	
              3.1

            	
              pSivida
                will
                pay to Aymon Pacific the amount of A$39,000 (gross) being the balance
                of
                all outstanding monies (fees and agreed nominal annual leave) payable
                up
                to 1 August 2006 in relation to the Arrangement (Payment).

            

    

     

    
      	
              3.2

            	
              pSivida
                will withhold
                from the Payment all amounts necessary for pSivida to comply with
                pSivida's taxation obligations under Australian taxation
                legislation.

            

    

     

    
      	
              3.3

            	
              Aymon
                Pacific will provide pSivida a copy of this document properly executed
                by
                Aymon Pacific and Rezos in exchange for the Payment.

            

    

     

    
      	
              3.4

            	
              Aymon
                Pacific and Rezos agree that the Payment and the consultancy agreement
                referred to in clause 2.2 of this
                document:

            

    

     

    
      	 	
              (a)

            	
              include
                full compensation in lieu of any amount that pSivida or the Group
                owes
                Aymon Pacific or Rezos under any contract or arrangement, including
                any
                contract of employment or otherwise, whether for fees, salary, wages,
                bonus payments, options or
                other remuneration, leave entitlements, payment in lieu of notice,
                severance pay, or anything else connected with the Arrangement, the
                Offices and the Termination;

            

    

     

    
      	 	
              (b)

            	
              but
                does not include any payment with respect to the options referred
                to under
                clause 4.

            

    

     

    
      	
              4.

            	
              Options

            

    

     

    To
      the
      extent permissible by law:

     

    
      	 	
              (a)

            	
              all
                options in pSivida held by or on behalf of Rezos at the date of the
                Termination will continue to vest until 31 January 2007 in accordance
                with
                any relevant rules or plan that applied in relation to the issue
                of such
                options;

            

    

     

    
      	 	
              (b)

            	
              Rezos
                will automatically forfeit all unvested options in pSivida on 1 February
                2007;

            

    

     

    
      	 	
              (c)

            	
              each
                option in pSivida held by or on behalf of Rezos that has vested before
                1 February 2007 will remain exercisable for the duration of the
                option subject to its terms of grant and in accordance with the terms
                of
                any relevant rules or plan that apply in relation to the issue and/or
                exercise of such options notwithstanding Rezos is no longer a director
                of
                pSivida or contractor to pSivida;
                and

            

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              pSivida
                will procure the same treatment as set out above for the options
                in AION
                Diagnostics Inc and AION Diagnostics Limited held by or on behalf
                of
                Rezos.

            

    

     

    
      	
              5.

            	
              RELEASES
                RELATING TO THE OFFICES

            

    

     

    
      	
              5.1

            	
              Rezos
                releases each member of the Group from all claims and liability arising,
                directly or indirectly, out of the Offices and Rezos' resignation
                from the
                Offices. This release covers
                all claims and liability, however described and however arising,
                including
                all claims and liability under legislation. It covers claims by,
                and
                liability to, anyone who claims through any party. It covers claims
                and
                liability that arise in the future. It covers all claims whether
                or not
                such claims are presently within the contemplation of any party and
                whether or not the facts or law giving rise to any such claim are
                presently within the belief or knowledge of any
                party.

            

    

     

    
      	
              5.2

            	
              The
                Group releases Rezos from all claims and liability arising directly
                or
                indirectly out of the Offices and Rezos' resignation from the Offices.
                This release covers
                all claims and liability, however described and however arising,
                including
                all claims and liability under legislation. It covers claims by,
                and
                liability to, anyone who claims through any party. It covers claims
                and
                liability that arise in the future. However, it does not cover any
                claims
                where the facts are not within the knowledge of the Board as at the
                date
                of this document.

            

    

     

    
      	
              6.

            	
              RELEASES
                RELATING TO ARRANGEMENT and
                Termination

            

    

     

    
      	
              6.1

            	
              This
                document and the consultancy agreement referred to in clause 2.2
                of this
                document fully satisfy the rights that Aymon Pacific and Rezos, and
                anyone
                who claims through Aymon Pacific, Rezos or both of them, has or may
                have
                against the Group arising directly or indirectly out of the Arrangement
                and the Termination.

            

    

     

    
      	
              6.2

            	
              Aymon
                Pacific and Rezos release each member of the Group from all claims
                and
                liability arising directly or indirectly out of the Arrangement and
                the
                Termination
                save for claims for the contract fee and pre approved documented
                and
                accepted expenses under the consultancy agreement referred to in
                clause
                2.2 of this document.

            

    

     

    
      	
              6.3

            	
              This
                release covers
                all claims and liability, however described and however arising,
                including
                all claims and liability under legislation. It covers claims by,
                and
                liability to, anyone who claims through Aymon Pacific, Rezos or both
                of
                them. It covers claims and liability that arise in the future. It
                covers
                all claims whether or not such claims are presently within the
                contemplation of any party and whether or not the facts or law giving
                rise
                to any such claim are presently within the belief or knowledge of
                any
                party.

            

    

     

    
      	
              6.4

            	
              This
                release:

            

    

     

    
      	 	
              (a)

            	
              includes
                (but is not limited to) all claims and liability under the Workplace
                Relations Act 1996
                (Cth), Industrial
                Relations Act 1979 (WA),
                Minimum
                Conditions of Employment Act 1993
                (WA), Trade
                Practices Act 1974 (Cth),
                Fair
                Trading Act 1987
                (WA), anti-discrimination legislation, or for breach of contract
                or any
                common law or equitable claim; but

            

    

     

    
      	 	
              (b)

            	
              does
                not apply to any claim or liability in respect of workers' compensation
                under applicable legislation.

            

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    
      	
              6.5

            	
              Notwithstanding
                the provisions of this clause 6, nothing in this clause 6 shall operate
                to
                negate any existing obligations of any member of the Group to indemnify
                and to keep indemnified Rezos or Aymon Pacific in relation to any
                claim
                made against Rezos or Aymon Pacific arising out of the lawful and
                reasonable discharge by Rezos of his duties in connection with the
                Offices
                and the Arrangement.

            

    

     

    
      	
              7.

            	
              RETURNING
                PROPERTY

            

    

     

    
      	
              7.1

            	
              Prior
                to, or immediately upon execution of this document, and except as
                the
                continued possession of such property is directly relevant to the
                performance of work by Rezos for pSivida under the new consultancy
                agreement, Aymon Pacific and Rezos must return to
                pSivida:

            

    

     

    
      	 	
              (a)

            	
              all
                property belonging to the Group or its customers or clients (for
                example,
                cards, keys, equipment and materials) that Aymon Pacific or Rezos
                has, or
                should have and can reasonably obtain;
                and

            

    

     

    
      	 	
              (b)

            	
              all
                material that Aymon Pacific or Rezos has, or should have and can
                reasonably obtain, that contains confidential information relating
                to the
                Group's business, organisation or
                affairs.

            

    

     

    
      	
              7.2

            	
              In
                this clause, material includes anything on which information is recorded,
                for example, documents, computer disks and computer
                records.

            

    

     

    
      	
              8.

            	
              CONFIDENTIAL
                INFORMATION
                AND CONTINUING OBLIGATIONS

            

    

     

    Aymon
      Pacific and Rezos remain under an ongoing duty not to use or disclose any
      confidential information belonging to the Group.

     

    
      	
              9.

            	
              BAR
                TO PROCEEDINGS

            

    

     

    
      	
              9.1

            	
              Each
                member of the Group may use this document, including as a bar, against
                Aymon Pacific, Rezos or both of them in any court or other proceedings
                brought by Aymon Pacific, Rezos or both of them (or anyone who claims
                through Aymon Pacific or Rezos).

            

    

     

    
      	
              9.2

            	
              Aymon
                Pacific, Rezos or both of them may use this document, including,
                to the
                extent provided by this document, as a bar, against each member of
                the
                Group in any court or other proceedings brought by any member of
                the
                Group.

            

    

     

    
      	
              10.

            	
              ACKNOWLEDGEMENTS
                BY Aymon
                Pacific and Rezos

            

    

     

    Aymon
      Pacific and Rezos acknowledge and agree that:

     

    
      	 	
              (a)

            	
              Aymon
                Pacific and Rezos have had a reasonable opportunity to obtain legal
                advice
                about this document; and 

            

    

     

    
      	 	
              (b)

            	
              the
                terms of this document are fair and reasonable.

            

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
      	
              11.

            	
              KEEPING
                THIS DOCUMENT CONFIDENTIAL

            

    

     

    
      	
              11.1

            	
              The
                wording of an appropriate announcement regarding the Termination
                has been
                agreed between pSivida and Rezos.

            

    

     

    
      	
              11.2

            	
              Other
                than in accordance with the announcement referred to in clause 11.1,
                Aymon
                Pacific and Rezos must not disclose the content of this document
                or any
                discussions and correspondence relating to the negotiation of this
                document, unless pSivida first agrees in
                writing.

            

    

     

    
      	
              11.3

            	
              Clause 11.2
                does not prevent Aymon Pacific or Rezos disclosing information to
                Aymon
                Pacific's or Rezos' lawyer or accountant, respectively, on a confidential
                basis or where the law says information must be disclosed (for example,
                in
                a tax return).

            

    

     

    
      	
              12.

            	
              BENEFIT
                OF THIS DOCUMENT

            

    

     

    pSivida
      has the benefit of this document for itself and also in trust for each member
      of
      the Group and each of its officers, employees and agents, any of whom may
      independently enforce it against Aymon Pacific, Rezos or both of
      them.

     

    
      	
              13.

            	
              AMENDMENT

            

    

     

    This
      document can only be amended, supplemented, replaced or novated by another
      document signed by the parties.

     

    
      	
              14.

            	
              GENERAL

            

    

     

    
      	
              14.1

            	
              Governing
                law

            

    

     

    
      	 	
              (a)

            	
              This
                document is governed by the law in force in Western
                Australia.

            

    

     

    
      	 	
              (b)

            	
              Each
                party submits to the non-exclusive jurisdiction of the courts exercising
                jurisdiction in Western Australia, and any court that may hear appeals
                from any of those courts, for any proceedings in connection with
                this
                document, and waives any right it might have to claim that those
                courts
                are an inconvenient forum.

            

    

     

    
      	
              14.2

            	
              Costs

            

    

     

    Each
      party agrees to pay its own costs of and incidental to this
      document.

     

    
      	
              14.3

            	
              Giving
                effect to this document

            

    

     

    Each
      party must do anything (including execute any document), and must ensure that
      its employees and agents do anything (including execute any document), that
      any
      other party may reasonably require to give full effect to this
      document.

     

    
      	
              14.4

            	
              Waiver
                of rights

            

    

     

    A
      right
      may only be waived in writing, signed by the party giving the waiver,
      and:

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    
      	
            	(a)	
              no
                other conduct of a party (including a failure to exercise, or delay
                in
                exercising the right) operates as a waiver of the right or otherwise
                prevents the exercise of the right;
                and

            

    

     

    
      	 	
              (b)

            	
              a
                waiver of a right on one or more occasions does not operate as a
                waiver of
                that right if it arises again; and

            

    

     

    
      	 	
              (c)

            	
              the
                exercise of a right does not prevent any further exercise of that
                right or
                of any other right. 

            

    

     

    
      	
              14.5

            	
              Operation
                of this document

            

    

     

    
      	 	
              (a)

            	
              This
                document and the consultancy agreement referred to in clause 2.2
                of this
                document contain the entire agreement between the parties about its
                subject matter. Any previous understanding, agreement, representation
                or
                warranty relating to that subject matter is replaced by this document
                and
                has no further effect.

            

    

     

    
      	 	
              (b)

            	
              Any
                provision of this document which is unenforceable or partly unenforceable
                is, where possible, to be severed to the extent necessary to make
                this
                document enforceable, unless this would materially change the intended
                effect of this document.

            

    

     

    
      	
              14.6

            	
              Counterparts

            

    

     

    This
      document may be executed in counterparts.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    EXECUTED
      as a
      Deed.

     

    
      	
               

              EXECUTED
                by
                pSivida Limited

              ACN
                009 232 026:

            	 	 
	 	 	 
	/s/
              Roger Brimblecombe	 	/s/
              Aaron Finlay
	
              Signature
                of director

            	 	
              Signature
                of director/secretary

            
	 	 	 
	Roger
              Brimblecombe	 	Aaron
              Finlay
	
              Name

            	 	
              Name

            
	 	 	 
	 	 	 
	
              EXECUTED
                by
                Aymon
                Pacific Pty Ltd, by
                its sole director and sole company secretary:

            	 	
              /s/
                Gavin Rezos

            
	 	 	
              Signature
                of sole director and sole company secretary

            
	 	 	 
	 	 	
              Mr.
                Gavin Rezos

            
	 	 	
              Name

            
	 	 	 
	
              EXECUTED
                by
                Viaticus
                Capital Pty Ltd, by
                its sole director and sole company secretary:

            	 	
              /s/
                Gavin Rezos

            
	 	 	
              Signature
                of sole director and sole company secretary

            
	 	 	 
	 	 	 
	 	 	
              Mr.
                Gavin Rezos

            
	 	 	
              Name

            
	 	 	 
	 	 	 
	
              SIGNED,
                SEALED
                and DELIVERED
                by
                Gavin Rezos in
                the presence of:

            	 	
              /s/
                Gavin Rezos

            
	 	 	
              Gavin
                Rezos

            
	/s/
              Tara Benthien	 	 
	
              Signature
                of witness

            	 	 
	 	 	 
	Tara
              Benthien	 	 
	
              Name

            	 	 

    

     

    
      
        
        

      

      -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]