From General Meeting announcement on 13/1/10...Refer to 2.2 (f)...

From General Meeting announcement on 13/1/10...Refer to 2.2 (f) (ii)
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2.2 Key Terms
The key terms of the Securities Purchase Agreement are as follows:
(a) The La Jolla Notes can be drawn down in US$375,000 instalments progressively on a month by month
basis from on or about 11 December 2009 for 20 months.
(b) Five La Jolla Notes will be issued, each with a face value of US$1,500,000.
(c) The La Jolla Notes bear interest at 4.75% per annum, payable monthly.
(d) The La Jolla Notes are unsecured.
(e) The La Jolla Notes must be repaid upon maturity (4 December 2011) unless converted in whole or part
into Shares at the election of La Jolla at any time at the lesser of A$0.25 or 80% of the 3 lowest volume
weighted average price (VWAP) during the 21 trading days prior to the election to convert, subject to a
floor price of A$0.012 at which the Company can refuse conversion and may redeem the La Jolla Notes
at 150% of the outstanding face value.
(f) La Jolla may terminate the Securities Purchase Agreement:
(i) within 120 days from 2 days of signing agreement;
(ii) if the Company's Shares trade on ASX at a price of $0.012 (or as adjusted for any share
consolidation) or lower at any time during a 6 month period.