Document:

Exhibit 10.33

Exhibit 10.33

	 	 	 
	

	 	201 Elizabeth Street

Sydney NSW 2000

Australia

DX 107 Sydney

Tel +61 2 9286 8000

Fax +61 2 9283 4144

www. dlaphillipsfox.com

Option Deed

Unilife Medical Solutions Limited

Edward Fine

 

 

 

 

 

 

 

 

 

 

 

 

 

	 	 	 
	 

	 	DLA Phillips Fox is a member of
	 

	 	DLA Piper Group, an alliance of
	 

	 	Independent legal practices. It is a
	 

	 	separate and distinct legal entity
	 
	 	 
	 

	 	DLA Phillips Fox offices are located
	 

	 	In Adelaide Auckland Brisbane
	 

	 	Canberra Melbourne Perth Sydney
	 

	 	and Wellington.

 

 

 

Table of contents

	 	 	 	 	 
	Parties
	 	 	1	 
	 
	 	 	 	 
	1 Grant of Options
	 	 	1	 
	 
	 	 	 	 
	2 Exercise of Options
	 	 	1	 
	 
	 	 	 	 
	3 Exercise Price
	 	 	1	 
	 
	 	 	 	 
	4 Vesting of Options
	 	 	1	 
	 
	 	 	 	 
	5 Method of Exercising Options
	 	 	2	 
	 
	 	 	 	 
	6 Change in Ownership Event
	 	 	3	 
	 
	 	 	 	 
	7 Expiry of Options
	 	 	3	 
	 
	 	 	 	 
	8 Shareholder Approval
	 	 	3	 
	 
	 	 	 	 
	9 Variation to Share Capital and Option Rights
	 	 	4	 
	 
	 	 	 	 
	10 Listing
	 	 	4	 
	 
	 	 	 	 
	11 Options to be Registered
	 	 	4	 
	 
	 	 	 	 
	12 Amendment of Option Terms
	 	 	4	 
	 
	 	 	 	 
	13 Reliance on Statements
	 	 	4	 
	 
	 	 	 	 
	14 Warranty
	 	 	5	 
	 
	 	 	 	 
	15 Sale of shares issued on exercise of Options
	 	 	5	 
	 
	 	 	 	 
	16 Notice
	 	 	5	 
	 
	 	 	 	 
	17 Miscellaneous
	 	 	6	 
	Assignment
	 	 	6	 
	Further acts
	 	 	7	 
	Waiver
	 	 	7	 
	Costs
	 	 	7	 
	Counterparts
	 	 	7	 
	Governing law and jurisdiction
	 	 	7	 
	 
	 	 	 	 
	18 Definitions and interpretation
	 	 	7	 
	Definitions
	 	 	7	 
	Interpretation
	 	 	9	 
	 
	 	 	 	 
	Execution and date
	 	 	11	 

 

 

 

			
	
	 	Option Deed

Parties

Unilife Medical Solutions Limited ACN 008 071 403 of Suite 3, Level 11, 1 Chifley Square, Sydney
NSW Australia 2000 (Company)

Edward
Fine of  [residential address omitted], United States of America (Consultant)

	1	 	Grant of Options

	1.1	 	In accordance with the terms of the Consultancy Agreement, the Company grants to the
Consultant on the date of this Deed 6,000,000 unlisted Options. Each Option entitles the
holder to subscribe for one fully paid ordinary share in the Company.

	2	 	Exercise of Options

	2.1	 	Subject to clauses 6.1 and 7.1, each Option is exercisable at any time between the Vesting
Date for such Option and 5.00pm (Sydney time) on the date which is 74 days after the end of
the calendar year in which such Option vests, provided however, that in no event may an Option
be exercised later than 30 January 2015 (Exercise Period).

	2.2	 	If an Option is not exercised on or prior to the expiry of the Exercise Period, the Option
will automatically lapse.

	3	 	Exercise Price

	3.1	 	The Exercise Price of each Option is A$1.055 (being the closing price of the Company’s Shares
on their last Trading Day on ASX following the Company’s suspension on 15 January 2010).

	4	 	Vesting of Options

	4.1	 	Subject to earlier lapsing in accordance with clause 7, the Options will vest as follows
provided that the Consultant continues to provide services to the Company in accordance with
the terms of the Consultancy Agreement from the date of grant until the date on which the
following events occur:

	 	4.1.1	 	1,500,000 Options will vest on the date on which the Closing Price of
the Company’s Shares has reached A$1.75 or higher for 20 out of any 30 consecutive
Trading Days at any time between the date of grant of the Options and the Expiry
Date;

	 	4.1.2	 	1,000,000 Options will vest on the date on which the Closing Price of
the Company’s Shares has reached A$2.00 or higher for 20 out of any 30
consecutive Trading Days at any time between the date of grant of the Options
and the Expiry Date;

 

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	 	Option Deed

	 	4.1.3	 	1,500,000 Options will vest on the date on which the Closing Price of
the Company’s Shares has reached A$2.25 or higher for 20 out of any 30 consecutive
Trading Days at any time between the date of grant of the Options and the Expiry
Date;

	 	4.1.4	 	1,000,000 Options will vest on the date on which the Closing Price of
the Company’s Shares has reached A$2.75 or higher for 20 out of any 30 consecutive
Trading Days at any time between the date of grant of the Options and the Expiry
Date; and

	 	4.1.5	 	1,000,000 Options will vest on the date on which the Closing Price of
the Company’s Shares has reached A$3.22 or higher for 20 out of any 30 consecutive
Trading Days at any time between the date of grant of the Options and the Expiry
Date.

	5	 	Method of Exercising Options

	5.1	 	The Optionholder must exercise an Option by notice in writing to the Company. The notice
must state the number of Options being exercised which must be in multiples of no less than
one hundred thousand (100,000). If the notice does not state the number of Options being
exercised, the notice will be void and the Company will request the Optionholder to provide a
further notice.

	5.2	 	The Optionholder must either:

	 	5.2.1	 	include with the notice to the Company referred to in clause 5.1 a
cheque payable to the Company; or

	 	5.2.2	 	at the time of issuing the notice to the Company, referred to in clause
5.1, arrange for an electronic funds transfer directly into an account nominated by
the Company,

for the total Exercise Price of the Options being exercised.

	5.3	 	Upon receipt of a valid notice in accordance with clause 5.1 and subject to the Company
receiving cleared funds from the Optionholder in accordance with clause 5.2, the Company must
issue within 10 Business Days of receiving the cleared funds the requisite number of Shares in
the name of the Optionholder and update its share register to record the Optionholder as the
holder of such Shares.

	5.4	 	An Option does not entitle the Optionholder to participate in any rights issue, bonus share
issue or other issue of securities by the Company.

	5.5	 	The Optionholder is not permitted to sell, transfer, mortgage, charge, assign or otherwise
dispose of or encumber an Option without the prior written approval of the Board.

 

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	 	Option Deed

	6	 	Change in Ownership Event

	6.1	 	If there has been a Change in Ownership Event, the Board must resolve to notify the
Optionholder that all Options may be exercised prior to 5pm (Sydney time) on the
74th day after the date of the notice (or by such earlier date as the Board
determines). The Exercise Period of the Options will expire at 5pm (Sydney time) on such
74th day after the date of the notice (or such earlier date as the Board
determines).

	7	 	Expiry of Options

	7.1	 	Notwithstanding any other provision of this Deed, an unexercised Option expires on the first
to occur of the following:

	 	7.1.1	 	the end of the Exercise Period in relation to that Option;

	 	7.1.2	 	the Consultant breaching or failing to comply with his obligations under
the Consultancy Agreement and such breach or failure is either incapable of remedy
or the Consultant fails to remedy that breach or failure within 30 days of being
given written notice to remedy by the Company;

	 	7.1.3	 	the Board resolving that the Consultant has, in the Board’s reasonable
opinion, acted fraudulently or dishonestly in the execution of his responsibilities
to the Company under the Consultancy Agreement; or

	 	7.1.4	 	to the extent that an Option that has not already vested in accordance
with clause 4.1, upon the Consultant ceasing to provide services to the Company
under the terms of the Consultancy Agreement.

	7.2	 	Upon expiry of an Option, all rights of the Optionholder under this Deed in respect of the
Option will immediately cease.

	8	 	Shareholder Approval

	8.1	 	If, for any reason, an issue and allotment of Shares to the Optionholder in accordance with
these terms and conditions would result in the need for the Company to obtain the approval of
the Shareholders, the Company must convene the necessary meeting as soon as reasonably
practicable and at its own cost but in no event shall the Company seek the approval of
Shareholders later than the next Annual General Meeting of the Company at the relevant time
unless the Notice of Meeting for the next immediate Annual General Meeting has already been
sent out to Shareholders in which case it will be the next succeeding general meeting of the
Company.

 

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	 	Option Deed

	9	 	Variation to Share Capital and Option Rights

	9.1	 	In the event of any reconstruction of the capital of the Company (including, without
limitation, any consolidation, subdivision, reduction or return of capital), either or both of
the following:

	 	9.1.1	 	the number of Options held by the Optionholder; and

	 	9.1.2	 	the Exercise Price,

will be varied in accordance with the Listing Rules and in such manner as the Board
determines with the intent that the benefits conferred on the Optionholder by the grant
of the Options will remain, as far as practicable, the same after the occurrence of the
variation referred to in clause 9.1.1 or 9.1.2.

	9.2	 	Upon any variation being made pursuant to clause 9.1, the Company must, as soon as
practicable, notify the Optionholder in writing of the details of the variation.

	9.3	 	If, on the making of any adjustment contemplated by this clause 9, the Optionholder becomes
entitled to a fraction of an Option, that fraction will be disregarded.

	10	 	Listing

	10.1	 	The Options will not be listed or quoted on any stock exchange.

	10.2	 	The Shares issued upon exercise of any Options will from the date of issue rank equally with
all other existing ordinary shares of the Company in all respects including voting rights and
entitlement to participate in dividends and in future rights and bonus issues.

	10.3	 	If shares of the same class as the Shares issued upon exercise of the Options are quoted on
ASX, the Company must apply to ASX within the period applicable under the Listing Rules, if
any, for any Shares issued by the Company upon exercise of the Options to be quoted.

	11	 	Options to be Registered

	11.1	 	Unless otherwise determined by the Board, the Company’s share registry will maintain a
register of the Options.

	12	 	Amendment of Option Terms

	12.1	 	Subject to the Listing Rules, the Board may, in relation to an Option, waive in whole or in
part, or amend on terms it considers appropriate, any terms or conditions applicable to the
Option provided such amendment or waiver is not materially detrimental to the Optionholder.

	13	 	Reliance on Statements

	13.1	 	In accepting this grant of Options, the Consultant acknowledges and agrees that he received
the offer of the Options in the United States and in deciding whether or not to accept the
Options the Consultant did not rely on any statements made in relation
to the grant or offer of the Options by or on behalf of the Company and
that the Consultant was advised by the Company to obtain its own
financial product and tax advice in relation to the Options from an
independent person.

 

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	 	Option Deed

	14	 	Warranty

	14.1	 	The Optionholder warrants to the Company that:

	 	14.1.1	 	(both as at the date of this Deed and as at the date that any Shares in the
Company are subsequently issued to the Optionholder upon exercise of the Options)
upon exercise of the Options the Optionholder will not be subscribing for Shares in
the Company for the purpose of selling or transferring those Shares or granting,
issuing or transferring interests in, or options over, those Shares within 12 months
of their date of issue; and

	 	14.1.2	 	he is an accredited investor as defined in Regulation D promulgated by the SEC
pursuant to the Securities Act of 1933 or has such knowledge and expertise in
financial and business matters as is necessary in order to evaluate the merits and
risks of an investment in the Options and the securities issued on exercise of the
Options.

	15	 	Sale of shares issued on exercise of Options

	15.1	 	The Consultant agrees and covenants in favour of the Company that he will not dispose of or
otherwise deal with more than 1,000,000 of the Company’s Shares issued to the Consultant on
exercise of the Options in any consecutive period of 20 days upon which the Company’s Shares
may be traded on ASX. If there is more than one Consultant, then those Consultants (in
aggregate) must not together or individually dispose of or otherwise deal with in total more
than 1,000,000 of the Company’s Shares issued to those Consultants on exercise of the Options
in any consecutive period of 20 days upon which the Company’s Shares may be traded on ASX.

	16	 	Notice

	16.1	 	Any notice or communication given to a party under this Deed is only given if it is in
writing and sent in one of the following ways:

	 	16.1.1	 	delivered or posted to that party at its address and marked for the attention of
the relevant person, department or officer (if any) set out below; or

 

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	 	Option Deed

	 	16.1.2	 	faxed to that party at its fax number and marked for the attention of the relevant
person, department or officer (if any) set out below.

Company:

	 	 	 	 	 
	 

	 	Name:
	 	Unilife Medical Solutions Limited
	 

	 	Address:
	 	Suite 3
	 

	 	 	 	Level 11
	 

	 	 	 	1 Chifley Square
	 

	 	 	 	SYDNEY NSW 2000
	 

	 	 	 	Australia
	 

	 	Fax number:
	 	+61 2 8346 6511
	 

	 	Attention:
	 	Company Secretary
	 
	 	 	 	 
	 

	 	Consultant:	 	 
	

	 
	 	 	 	 
	 

	 	Name:
	 	Edward Fine
	 

	 	Address:
	 	[residential address omitted]

United States of America
	

	16.2	 	If a party gives the other party three Business Days’ notice of a change of its address or
fax number, any notice or communication is only given by that other party if it is delivered,
posted or faxed to the latest address or fax number.

	16.3	 	Any notice or communication is to be treated as given at the following time:

	 	16.3.1	 	 If it is delivered, when it is left at the relevant address.

	 	16.3.2	 	If it is sent by post, two (or, in the case of a notice or communication posted to
another country, nine) Business Days after it is posted.

	 	16.3.3	 	If it is sent by fax, as soon as the sender receives from the sender’s fax machine
a report of an error free transmission to the correct fax number.

	16.4	 	However, if any notice or communication is given on a day that is not a Business Day or after
5pm on a Business Day in the place of the party to whom it is sent it is to be treated as
having been given at the beginning of the next Business Day.

	17	 	Miscellaneous

Assignment

	17.1	 	Except as expressly permitted by this Deed, a party must not assign any of its rights under
this Deed without the prior written consent of the other party.

Entire agreement

	17.2	 	Other than as expressly set out in this Deed, this Deed contains everything the parties have
agreed on in relation to the matters it deals with. Neither party can rely on an earlier
document, or anything said or done by another party, or by a director, officer, agent or
employee of that party, before this Deed was executed, save as permitted by law.

 

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	 	Option Deed

Further acts

	17.3	 	The parties will promptly do and perform all acts and things and execute all documents as may
from time to time be required, and at all times will act in good faith, for the purposes of or
to give effect to this Deed.

Waiver

	17.4	 	The fact that a party fails to do, or delays in doing, something the party is entitled to do
under this Deed, does not amount to a waiver of any obligation of, or breach of obligation by,
the other party. A waiver by a party is only effective if it is in writing. A written waiver
by a party is only effective in relation to the particular obligation or breach in respect of
which it is given. It is not to be taken as an implied waiver of any other obligation or
breach or as an implied waiver of that obligation or breach in relation to any other occasion.

Costs

	17.5	 	Except as otherwise set out in this Deed, each party must pay its own costs and expenses in
relation to preparing, negotiating, executing and completing this Deed and any document
related to this Deed.

Counterparts

	17.6	 	This Deed may be executed in counterparts. All counterparts when taken together are to be
taken to constitute one document.

Governing law and jurisdiction

	17.7	 	This Deed is governed by the law of New South Wales, Australia. The parties submit to the
non-exclusive jurisdiction of its courts and courts of appeal from them. The parties will not
object to the exercise of jurisdiction by those courts on any basis.

	18	 	Definitions and interpretation

Definitions

	18.1	 	In this Deed the following definitions apply:

	 	 	ASX means ASX Limited ACN 008 624 691 or the securities market which it operates, as the
context requires.

	 	 	Board means the board of directors of the Company from time to time.

	 	 	Business Day means a day of the week on which banks are open for general banking business
in New South Wales, other than a Saturday or Sunday.

	 	 	Change of Ownership Event means:

	 	(a)	 	a takeover bid is made to the holders of the Company’s shares (other than
as a result of an allotment or transfer approved by the Board) which becomes
unconditional;

 

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	 	Option Deed

	 	(b)	 	pursuant to an application to the Court, the Court orders a meeting to be
held in relation to a proposed compromise or arrangement relating to the Company for
the purpose of or in connection with a scheme for the reconstruction of the Company
or its amalgamation with any other company;

	 	(c)	 	the Options, or any Shares that are the subject of any Option, are or
become subject to compulsory acquisition or cancellation by operation of law;

	 	(d)	 	the Company enters into an agreement to sell the whole, or substantially
the whole, of its business to a third party;

	 	(e)	 	through the acquisition of shares in the Company a person is able to
determine the majority composition of the Board;

	 	(f)	 	any other event (including, but not limited to, a merger of the Company
with another company) which the Board determines, in its absolute discretion, to be
a Change in Ownership;

	 	(g)	 	the Company passes a resolution for voluntary winding up; or

	 	(h)	 	an order is made for the compulsory winding up of the Company,

	 	 	where, in the case of the events in (a) to (f) inclusive, such event involves a change in
the ultimate effective management control of the Company or its business.

	 	 	Closing Price means the price published on the ASX as the final price of a Share on a
Trading Day.

	 	 	Consultancy Agreement means the consultancy agreement dated 14 October 2008 as amended by
an amendment agreement dated 1 April 2009 and by a Deed of Amendment dated on or around
the date of this Deed.

	 	 	Exercise Period has the meaning ascribed to that term in clause 2.1.

	 	 	Exercise Price means the price set out in clause 3.1.

	 	 	Expiry Date means 30 January 2015.

	 	 	Listing Rules means the official listing rules of ASX as amended from time to time.

	 	 	Option means an option to subscribe for one Share.

	 	 	Optionholder means the registered holder of Options from time to time.

	 	 	SEC means the Securities Exchange Commission.

	 	 	Share means a fully paid ordinary share in the capital of the Company.

 

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	 	Option Deed

	 	 	Shareholders means persons registered as the holders of ordinary shares in the capital of
the Company from time to time.

	 	 	Trading Day means a day on which Shares are traded on the ASX.

	 	 	Vesting Date means the date on which the applicable Options vest in accordance with
clause 4.

Interpretation

	18.2	 	In the interpretation of this Deed, the following provisions apply unless the context
otherwise requires:

	 	18.2.1	 	A reference to any law or legislation or legislative provision includes any
statutory modification, amendment or re-enactment, and any subordinate legislation
or regulations issued under that legislation or legislative provision, in either
case whether before, on or after the date of this Deed.

	 	18.2.2	 	A reference to any agreement or document is to that agreement or document as
amended, novated, supplemented or replaced from time to time.

	 	18.2.3	 	A reference to a clause or part is a reference to a clause or part of or to this
Deed.

	 	18.2.4	 	Where a word or phrase is given a defined meaning another part of speech or other
grammatical form in respect of that word or phrase has a corresponding meaning.

	 	18.2.5	 	A word which denotes the singular denotes the plural, a word which denotes the
plural denotes the singular, and a reference to any gender denotes the other
genders.

	 	18.2.6	 	An expression importing a natural person includes any company, trust, partnership,
joint venture, association, body corporate or public authority.

	 	18.2.7	 	A reference to any party to this Deed, where that party is made up of more than
one person, includes each of them severally.

	 	18.2.8	 	Any agreement, covenant, representation, warranty, undertaking or liability
arising under this Deed on the part of two or more persons is to be taken to be made
or given by such persons jointly and severally.

	 	18.2.9	 	A reference to dollars or $

means Australian dollars.

 

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	 	Option Deed

	 	18.2.10	 	References to the word ‘include’ or ‘including’ are to be construed without
limitation.

	 	18.2.11	 	A reference to a time of day means that time of day in the place whose laws
govern the construction of this Deed.

	 	18.2.12	 	Where a period of time is specified and dates from a given day or the day of an
act or event it must be calculated exclusive of that day.

	 	18.2.13	 	A term of this Deed which has the effect of requiring anything to be done on or
by a date which is not a Business Day must be interpreted as if it required it to be
done on or by the next Business Day.

 

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	 	Option Deed

Execution and date

Executed as a deed.

Date:

Executed as a deed by Unilife Medical Solutions Limited acting
by the following persons or, if the seal is affixed, witnessed
by the following persons:

	 	 	 	 	 	 	 
	

	/s/ Alan Shortall	 	 
	 	/s/ Cynthia M. Lighty	 	 
	 

Signature of director

	 	 
	 	 

Signature of director/company secretary
	 	 
	 
	 	 	 	 	 	 
	 Alan Shortall	 	 
	 	 Cynthia M. Lighty	 	 
	 

Name of director (print)

	 	 
	 	 

Name of director/company secretary (print)
	 	 
	

Executed as a deed by Edward Fine in the presence of:

	 	 	 	 	 	 	 
	/s/ Ingrid Fine	 	 
	 	/s/ Edward Fine	 	 
	 

Signature of witness

	 	 
	 	 

Signature of Edward Fine
	 	 
	 
	 	 	 	 	 	 
	Ingrid Fine	 	 
	 	 	 	 
	 

Name of witness (print)

	 	 
	 	 
	 	 

 

11Exhibit 10.34

Exhibit 10.34

	 	 	 
	

	 	201 Elizabeth Street

Sydney NSW 2000

Australia

DX 107 Sydney

Tel +61 2 9286 8000

Fax +61 2 9283 4144

www.dlaphillipsfox.com

Deed of Settlement and Release

Unilife Medical Solutions Limited

Craig Thorley

Joseph Kaal

Alan Shortall

Roger Williamson

	 	 	 
	

	 

	 	DLA Phillips Fox is a member of
	 

	 	DLA Piper Group, an alliance of
	 

	 	independent legal practices. It is a
	 

	 	separate and distinct legal entity.
	 
	 	 
	 

	 	DLA Phillips Fox offices are located
	 

	 	in Adelaide Auckland Brisbane
	 

	 	Canberra Melbourne Perth Sydney
	 

	 	and Wellington.

 

 

			
	
	 	Deed of Settlement and Release
	 	 	 

Table of contents

	 	 	 	 	 
	Parties
	 	 	1	 
	 
	 	 	 	 
	Background
	 	 	1	 
	 
	 	 	 	 
	1 Operative provisions
	 	 	2	 
	Settlement and Release
	 	 	2	 
	Release of the Parties
	 	 	4	 
	 
	 	 	 	 
	2 Conditions Precedent
	 	 	4	 
	 
	 	 	 	 
	3 Indemnity
	 	 	4	 
	 
	 	 	 	 
	4 No liability
	 	 	4	 
	 
	 	 	 	 
	5 Warranty
	 	 	5	 
	 
	 	 	 	 
	6 Bar to Action
	 	 	5	 
	 
	 	 	 	 
	7 Miscellaneous
	 	 	5	 
	Assignment
	 	 	5	 
	Costs
	 	 	5	 
	Covenant not to sue
	 	 	5	 
	Entire agreement
	 	 	5	 
	Counterparts
	 	 	6	 
	Further acts
	 	 	6	 
	Severability
	 	 	6	 
	Variation
	 	 	6	 
	Waivers
	 	 	6	 
	Confidentiality
	 	 	6	 
	Governing law and jurisdiction
	 	 	7	 
	 
	 	 	 	 
	8 Definitions and Interpretation
	 	 	7	 
	Definitions
	 	 	7	 
	 
	 	 	 	 
	Execution and date
	 	 	9	 

 

 

 

			
	
	 	Deed of Settlement and Release
	 	 	 

Parties

Unilife Medical Solutions Limited ACN 008 071 403 of Level 5, 35 Clarence Street, Sydney NSW 2000
(Unilife)

Craig Thorley of [residential address omitted]

Joseph Kaal of [residential address omitted]

Alan Shortall of [residential address omitted]

Roger Williamson of [residential address omitted]

(together the Founding Shareholders)

Background

	A	 	On 11 July 2002 Unilife entered into the Acquisition Agreement under which Unilife agreed to
acquire all of the issued share capital of Unitract.
	 
	B	 	Pursuant to clause 11 of the Acquisition Agreement, Unilife acknowledged that certain former
shareholders of Unitract would between them be entitled to be issued:

	 	•	 	10 million Shares if and when Unilife achieved the First Milestone; and

	 	•	 	a further 10 million Shares if and when Unilife achieved the Second Milestone.

	C	 	The Founding Shareholders claim to be the certain former shareholders of Unitract referred to in clause 11 of the
Acquisition Agreement.
	 
	D	 	A dispute has arisen between Unilife and the Founding Shareholders as to whether there was any time period within which the
Milestones had to be achieved by Unilife.
	 
	E	 	Unilife’s position is that the Milestones had to be achieved within 5 years following completion of the Acquisition
Agreement and if the Milestones were not achieved during that period the Founding Shareholders had no right to be issued
any Shares under clause 11 of the Acquisition Agreement.
	 
	F	 	The Founding Shareholders’ position is that there was no time limit within which the Milestones had to be met by Unilife.
	 
	G	 	As at the date of this Deed the Milestones have not been met by Unilife.
	 
	H	 	The Parties wish, without admission of liability, to settle their differences in relation to whether any time limitation
applies to the Milestones on the terms set out in this Deed.

 

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	 	Deed of Settlement and Release
	 	 	 

	1	 	Operative provisions

Settlement and Release

	1.1	 	Unilife understands that under the Acquisition Agreement it was contemplated that the
Founding Shareholders and George Sim were entitled to be issued Shares pursuant to clause 11
of the Acquisition Agreement on achievement of the Milestones.

	1.2	 	The Founding Shareholders jointly and severally covenant with Unilife that the understanding
of Unilife set out in clause 1.1 is not correct and that the only persons now having the
benefit of clause 11 of the Acquisition Agreement are the Founding Shareholders.

	1.3	 	Subject to clauses 1.8 and 2.1, in full and final settlement of Unilife’s obligations under
clause 11 of the Acquisition Agreement the Parties agree that the Founding Shareholders will
be entitled to be issued, subject to any Shareholder approvals required under the Listing
Rules or the Act, up to a maximum of 20 million Shares in aggregate (that is, the maximum
number of Shares that can be issued pursuant to this Deed in total is 20 million Shares) for
no monetary consideration in accordance with clause 11 of the Acquisition Agreement if the
following conditions are met by Unilife (provided that such Shares have not already been
issued pursuant to clause 1.4):

	 	1.3.1	 	10 million fully paid Shares (divided between the Founding Shareholders
in such proportions as are notified to Unilife in writing by all of the Founding
Shareholders) if Unilife earns a net profit after tax of A$6.5 million or more (as
confirmed by Unilife’s auditors) in a full financial year prior to 30 October 2014;
and

	 	1.3.2	 	20 million fully paid Shares (divided between the Founding Shareholders
in such proportions as are notified to Unilife in writing by all of the Founding
Shareholders) if Unilife earns a net profit after tax of A$12 million or more (as
confirmed by Unilife’s auditors) in a full financial year prior to 30 October 2014
(which would reduce to 10 million fully paid Shares if the right to be issued Shares
under clause 1.3.1 has already arisen due to satisfaction of the condition in clause
1.3.1).

	1.4	 	If a Change in Ownership Event occurs prior to 30 October 2014, the Founding Shareholders
will be entitled to be issued, subject to any Shareholder approvals required under the Listing
Rules or the Act, all of the Shares referred to in clause 1.3 to the extent that they have not
already been issued to them pursuant to clause 1.3. The Shares issued pursuant to this clause
1.4 will be divided between the Founding Shareholders in such proportions as are notified to
Unilife in writing by all of the Founding Shareholders.

	1.5	 	Subject to the terms of this Deed (including clause 1.8) and any Shareholder approvals
required under the Listing Rules or the Act and any disclosure document requirements under the
Act, all Shares required to be issued under clause 1.3 or 1.4 will be issued by Unilife as
soon as practicable after the right to be issued the Shares arises.

 

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	 	Deed of Settlement and Release
	 	 	 

	1.6	 	If Unilife does not earn a net profit after tax of A$6.5 million or more (as confirmed by
Unilife’s auditors) in any full financial year prior to 30 October 2014 the Founding
Shareholders will have no right to be issued the Shares referred to in clause 1.3.1 or 1.4
except in the case of clause 1.4 to the extent that the right has arisen prior to 30 October
2014.

	1.7	 	If Unilife does not earn a net profit after tax of A$12 million or more (as confirmed by
Unilife’s auditors) in any full financial year prior to 30 October 2014 the Founding
Shareholders will have no right to be issued the Shares referred to in clause 1.3.2 or 1.4
except in the case of clause 1.4 to the extent that the right has arisen prior to 30 October
2014.

	1.8	 	In the event that any person brings an action, suit or claim against Unilife to be issued
Shares under clause 11 of the Acquisition Agreement or any other document or representation
relating to clause 11 of the Acquisition Agreement:

	 	1.8.1	 	Unilife will be under no obligation to issue any of the Shares referred
to in clause 1.3 until such time as such action, suit or claim has been fully and
finally resolved even if the conditions in clause 1.3 have been met; and

	 	1.8.2	 	if a Change in Ownership Event occurs and the claim, suit or action has
not been fully and finally resolved by (as applicable):

	 	(a)	 	the date on which the takeover offer becomes
unconditional; or

	 	(b)	 	the record date for determining the entitlement of
Shareholders to attend and vote at the Shareholders meeting to approve the
scheme of arrangement; or

	 	(c)	 	the date of completion of the disposal of the
business of Unilife; or

	 	(d)	 	the date of completion of the acquisition of Shares
referred to in paragraph (d) of the definition of Change in Ownership
Event,

Unilife will be irrevocably and unconditionally released from any obligation to
issue any Shares pursuant to this Deed.

	1.9	 	The Parties agree that if there is an internal restructure of Unilife that results in a new
company becoming the parent company of Unilife (whether that new parent company is
incorporated in Australia or another country) this Deed will be novated to the new parent
company with the intention that all references in this Deed to Unilife (including clauses 1.3
to 1.8 inclusive) will, to the extent necessary, be deemed to be references to the new parent
company.

	1.10	 	Notwithstanding any other provision of this Deed, the Parties agree that the maximum number
of Shares that can be issued pursuant to this Deed in total is 20 million Shares.

 

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	 	Deed of Settlement and Release
	 	 	 

Release of the Parties

	1.11	 	The Founding Shareholders jointly and severally agree that they have no other rights
whatsoever in relation to clause 11 of the Acquisition Agreement other than those rights set
out in this Deed.

	1.12	 	The Founding Shareholders hereby jointly and severally and absolutely and irrevocably release
and forever discharge Unilife and all of its Related Bodies Corporate and their respective
officers and employees from all actions, suits, claims, demands, costs and other liabilities
of any nature whatsoever which they now or at any time may have, or, but for the execution of
this Deed, could or might have had against Unilife or any of its Related Bodies Corporate or
their respective officers and employees, in connection with or incidental to the issue of
Shares pursuant to clause 11 of the Acquisition Agreement except for the rights set out in
this Deed.

	2	 	Conditions Precedent

	2.1	 	The Parties acknowledge and agree that the terms of this Deed and the rights of the Parties
under this Deed are conditional on Shareholders approving the terms of this Deed by ordinary
resolution by no later than 30 June 2009. If Shareholders do not approve the terms of this
Deed by ordinary resolution by 30 June 2009, then this Deed will automatically terminate and
will be deemed to be void ab initio.

	3	 	Indemnity

	3.1	 	The Founding Shareholders jointly and severally indemnify and hold harmless Unilife and its
Related Bodies Corporate and their respective officers and employees against all actions,
suits, claims, losses, demands, costs and other liabilities of any nature whatsoever
(including any award of damages, interest, consequential loss of profits and all legal costs
on a full indemnity basis) which may arise or be brought by any other person (including George
Sim in his own right or in any other capacity including as a trustee of a trust) pursuant to
clause 11 of the Acquisition Agreement, any other document or representation relating to
clause 11 of the Acquisition Agreement or any other document in connection with this Deed.

	4	 	No liability

	4.1	 	The Founding Shareholders agree that the execution of this Deed by Unilife is not an
admission of any liability by Unilife or its Related Bodies Corporate or their respective
officers and employees to the Founding Shareholders or any other person in relation to the
Acquisition Agreement.

 

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	 	Deed of Settlement and Release
	 	 	 

	5	 	Warranty

	5.1	 	Each of the Founding Shareholders warrants that:

	 	5.1.1	 	It has taken independent legal advice as to the nature, effect and
extent of this Deed.

	 	5.1.2	 	It is not their intention to sell, transfer or otherwise dispose of any
Shares issued to them pursuant to this Deed for at least 12 months after the date of
issue of the Shares to them.

	 	5.1.3	 	It is aware that Unilife is relying on the warranties in clauses 5.1.1
and 5.1.2 in executing this Deed.

	6	 	Bar to Action

	6.1	 	The Parties each acknowledge and agree that the settlement and release provided under this
Deed may be pleaded by any Party as a bar to any action, suit or proceeding commenced now or
taken at any time by any Party or their officers or employees or any person or entity on their
behalf in relation to the claims released by this Deed.

	7	 	Miscellaneous

Assignment

	7.1	 	The Founding Shareholders cannot assign or transfer any of their rights or obligations under
this Deed without the prior written consent of Unilife.

Costs

	7.2	 	Each of the Parties shall bear and be responsible for their own costs and expenses arising
out of or in connection with the preparation, negotiation, execution and stamping of this Deed
and any other document related to this Deed.

Covenant not to sue

	7.3	 	The Founding Shareholders jointly and severally covenant with Unilife not to bring any
action, suit or proceeding for any claim, cost, damages, debt, expense, liability, loss,
allegation, demand or cause of action of any kind against Unilife or its Related Bodies
Corporate or their respective officers and employees arising out of or in any way relating to
the release in clause 1.12, other than claims expressly arising under this Deed.

Entire agreement

	7.4	 	Each Party represents to and agrees with each other Party that:

	 	7.4.1	 	this Deed sets out the entire arrangement between the Parties in respect
of the subject matter of this Deed;

	 	7.4.2	 	no Party can rely on an earlier written document or anything said or
done by or on behalf of another Party before this Deed was executed to the extent
that the earlier document or thing said or done is inconsistent with this Deed;
and

 

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	 	Deed of Settlement and Release
	 	 	 

	 	7.4.3	 	without limiting the generality of this clause, any promise or
representation relied upon by that Party in deciding whether or not to enter into
this Deed is fully and accurately reflected in this Deed and the settlements and
releases contained in it.

Counterparts

	7.5	 	This Deed may be executed in such counterparts as may be deemed necessary or convenient and
all such counterparts taken together shall be deemed to constitute one and the same document.

Further acts

	7.6	 	Each of the Parties must at its own expense promptly execute all documents and do or use
reasonable endeavours to cause a third party to do all things that another Party from time to
time may reasonably request in order to give effect to, perfect or complete this Deed and all
transactions incidental to it.

Severability

	7.7	 	Each provision of this Deed is individually severable. If any provision is or becomes
illegal, unenforceable or invalid in any jurisdiction, it is to be treated as being severed
from this Deed in the relevant jurisdiction, but the rest of this Deed will not be affected.
The legality, validity and enforceability of the provision in any other jurisdiction will not
be affected.

Variation

	7.8	 	No variation of this Deed will be of any force or effect unless it is in writing and signed
by each Party to this Deed.

Waivers

	7.9	 	A waiver of any right, power or remedy under this Deed must be in writing signed by the Party
granting it. A waiver is only effective in relation to the particular obligation or breach in
respect of which it is given. It is not to be taken as an implied waiver of any other
obligation or breach or as an implied waiver of that obligation or breach in relation to any
other occasion.

	7.10	 	The fact that a Party fails to do, or delays in doing, something the Party is entitled to do
under this Deed does not amount to a waiver.

Confidentiality

	7.11	 	Subject to clause 7.12, the terms of this Deed are confidential and must not be disclosed to
any other person or corporation (other than a Party to this Deed or any solicitor or agent who
has acted for such Party in respect of the relevant matters) unless under compulsion of law
(including the Listing Rules) or for the purpose of enforcing the terms of this Deed.

	7.12	 	The Parties agree that Unilife will be entitled to lodge announcements setting out the terms
of this Deed with the ASX at any time and in such form as Unilife determines and also include
the terms of this Deed in any Notice of Meeting of Shareholders or disclosure document under
Chapter 6D of the Act.

 

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	 	Deed of Settlement and Release
	 	 	 

Governing law and jurisdiction

	7.13	 	This Deed is governed by the law of New South Wales. The Parties submit to the non-exclusive
jurisdiction of its courts and courts of appeal from them.

	8	 	Definitions and Interpretation

Definitions

	8.1	 	In this Deed the following definitions apply:

Acquisition Agreement means the Acquisition Agreement dated 11 July 2002 between Unilife,
Unitract, Craig Thorley, Joseph Kaal, Alan Shortall, Roger Williamson, Grange Consulting
Group Pty Ltd ACN 073 900 848, ASP Plastics Pty Ltd ACN 077 504 299, Andrew Hart and
George Sim.

Act means the Corporations Act 2001 (Cth).

ASX means ASX Limited or the securities market it operates, as the context requires.

Change in Ownership Event means:

	 	(a)	 	other than as part of an internal restructure of the Unilife group
(including a restructure that is effected to redomicile the Unilife group, including
by imposing a new parent company of Unilife incorporated in another country), a
takeover bid is made to the holders of Shares which becomes unconditional;

	 	(b)	 	other than as part of an internal restructure of the Unilife group
(including a restructure that is effected to redomicile the Unilife group, including
by imposing a new parent company of Unilife incorporated in another country),
pursuant to an application to the Court, the Court orders a meeting to be held in
relation to a proposed compromise or arrangement relating to Unilife for the purpose
of or in connection with a scheme for the reconstruction of Unilife or its
amalgamation with any other company;

	 	(c)	 	Unilife enters into an agreement to sell the whole, or substantially the
whole, of its business to a third party that is not a Related Body Corporate of
Unilife; or

	 	(d)	 	other than as part of an internal restructure of the Unilife group
(including a restructure that is effected to redomicile the Unilife group, including
by imposing a new parent company of Unilife incorporated in another country),
through the acquisition of Shares in Unilife a person is able to determine the
majority composition of the board of directors of Unilife.

First Milestone means Unilife earning a net profit of A$6.5 million after tax (as
determined by the auditors of Unilife) in a financial year following completion of the
Acquisition Agreement.

George Sim means George Sim in his capacity as trustee of the ELM Unit Trust.

 

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	 	Deed of Settlement and Release
	 	 	 

Listing Rules means the official listing rules of ASX as amended from time to time.

Milestones means the First Milestone and the Second Milestone.

Related Body Corporate has the meaning given to that term in the Act.

Second Milestone means Unilife earning a net profit of A$12 million after tax (as
determined by the auditors of Unilife) in a financial year following completion of the
Acquisition Agreement.

Shareholders means the shareholders of Unilife from time to time.

Share means one ordinary fully paid share in the capital of Unilife.

Unilife means Unilife Medical Solutions Limited ACN 008 071 403.

Unitract means Unitract Syringe Pty Limited ACN 101 059 723.

Interpretation

	8.2	 	In this Deed, unless the context otherwise requires:

	 	8.2.1	 	A reference in this Deed to any agreement or document is to that
agreement or document as amended, novated, supplemented or replaced from time to
time.

	 	8.2.2	 	A reference to a clause, part, schedule or attachment is a reference to
a clause, part, schedule or attachment of or to this Deed.

	 	8.2.3	 	Headings are inserted for convenience only and do not affect the
interpretation of this Deed.

	 	8.2.4	 	A reference in this Deed to dollars or A$ means Australian dollars.

	 	8.2.5	 	A reference in this Deed to any person includes a reference to any
individual, company, body corporate, association, partnership, joint venture, trust
or government agency.

	 	8.2.6	 	A reference to the word ‘include’ or ‘including’ is to be construed
without limitation.

	 	8.2.7	 	Where a word or phrase is given a defined meaning, another part of
speech or other grammatical form in respect of that word or phrase has a
corresponding meaning.

	 	8.2.8	 	A word which denotes the singular also denotes the plural, a word which
denotes the plural also denotes the singular, and a reference to any gender also
denotes the other genders.

	 	8.2.9	 	A reference to this Deed means the agreement recorded in this document.

 

8

 

			
	
	 	Deed of Settlement and Release
	 	 	 

	 	 	 	 	 	 	 
	Execution and date
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a deed.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed, sealed and delivered for and on behalf of
Unilife Medical Solutions Limited in the presence
of:

	 
	 	 	 	 	 	 
	 

Signature Director

	 	 	 	 

Signature of Director
	 	 
	 
	 	 	 	 	 	 
	 

Name of Director (print)

	 	 	 	 

Name of Director (print)
	 	 
	 
	 	 	 	 	 	 
	Signed, sealed and delivered by Craig Thorley
in the presence of:

	 
	 	 	 	 	 	 
	

	 

Signature of witness

	 	 	 	/s/ Craig Thorley 

Signature of Craig Thorley
	 	 
	 
	 	 	 	 	 	 
	 

Name of witness (print)

	 	 	 	 	 	 
	

	 
	 	 	 	 	 	 
	Signed, sealed and delivered by Joseph Kaal in
the presence of:

	 
	 	 	 	 	 	 
	

	 

Signature of witness

	 	 	 	/s/ Joseph Kaal 

Signature of Joseph Kaal
	 	 
	 
	 	 	 	 	 	 
	 

Name of witness (print)

	 	 	 	 	 	 
	

 

9

 

			
	
	 	Deed of Settlement and Release
	 	 	 

	 	 	 	 	 	 	 
	Signed, sealed and delivered by Alan Shortall
in the presence of:

	 
	 	 	 	 	 	 
	

	/s/ 

Signature of witness

	 	 	 	/s/ Alan Shortall 

Signature of Alan Shortall
	 	 
	 
	 	 	 	 	 	 
	 

Name of witness (print)

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	Signed, sealed and delivered by Roger
Williamson in the presence of:

	 
	 	 	 	 	 	 
	

	/s/ 

Signature of witness

	 	 	 	/s/ Roger Williamson 

Signature of Roger Williamson
	 	 
	 
	 	 	 	 	 	 
	 

Name of witness (print)

	 	 	 	 	 	 
	

 

10

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