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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="2" width="12%"><font size="3">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): April 28, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>DOBI
      MEDICAL INTERNATIONAL, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Charter)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                incorporation)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0-32523</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">98-0222710</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                No.)</font></div>
            </td>
          </tr>

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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1200
                MacArthur Boulevard</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mahwah,
                New Jersey</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of principal executive offices)</font></div>
            </td>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">07430</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
      telephone number, including area code: (201) 760-6464</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b)) </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div><br>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT ON FORM 8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DOBI
      MEDICAL INTERNATIONAL, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>April
      28, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="2" width="12%">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 4.5pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Definitive Material Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      28, 2006, DOBI Medical International, Inc. (&#8220;DOBI&#8221;) entered into the Securities
      Purchase Agreement attached hereto as Exhibit 10.1 (the &#8220;Securities Purchase
      Agreement&#8221;) with the purchasers named therein (the &#8220;Purchasers&#8221;). The
      transaction closed on May 1, 2006. Pursuant to the Securities Purchase
      Agreement, the Purchasers are purchasing Convertible Debentures in the form
      attached hereto as Exhibit 4.1 (the &#8220;Debentures&#8221;) in the aggregate face or
      principal amount of $6,000,000, or $5,250,000 in aggregate cash subscription
      amount reflecting a 12.5% original issue discount, half of which subscriptions
      were funded on May 1, 2006, and the other half will be funded shortly following
      the effective date of DOBI&#8217;s first registration statement (as described below).
      DOBI also entered into a Security Agreement, dated as of April 28, 2006, by
      and
      between DOBI and the signatories thereto and attached hereto as Exhibit 10.2
      (the &#8220;Security Agreement&#8221;), pursuant to which the Debentures are secured by all
      of the assets of DOBI, including DOBI&#8217;s intellectual property. Monthly principal
      payments equal to 1/12</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of the
      original principal amount of the Debentures begin on August 28, 2006, and are
      payable in cash or in shares of common stock based on a 15% discount to the
      daily volume weighted average price of the common stock for the ten trading
      days
      immediately preceding the payment date, provided such shares have been
      previously registered. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Debentures have a term of 16 months and come fully due on August 28, 2007.
      The
      Debentures are convertible at the option of the holder at any time and from
      time
      to time into shares of common stock of DOBI at a conversion price equal to
      the
      lower of $.08 per share of common stock (initially 75,000,000 shares of common
      stock), or 80% of the five-day volume weighted average price of the shares
      prior
      to conversion with a floor price of $.02 per share. DOBI has the right to give
      holders written notice requiring them to convert all or any portion of their
      Debentures into common stock if (i) the closing price of its common stock
      exceeds 250% of the conversion price then in effect on each of the 20
      consecutive trading days ending no more than five trading days before the date
      that such notice is given, (ii) the average daily trading volume for the common
      stock during the trading period exceeds 600,000 shares and (iii) the shares
      into
      which the Debentures are convertible have been registered. The Purchasers agreed
      not to convert their Debentures or exercise their warrants, and DOBI will not
      be
      permitted to require a mandatory conversion, to the extent such conversion,
      exercise or issuance would result in beneficial ownership of more than 9.99%
      of
      the outstanding shares of DOBI at such time. I</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">n
      the
      event that DOBI issues common stock in an equity financing at a price less
      than
      the then conversion price, the conversion price shall be immediately adjusted
      to
      the price at which such common stock was issued, subject to certain exempt
      issuances. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Events
      of
      default under the Debentures include: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">failure
                to pay principal on any Debenture when due;
</font></div>
            </td>
          </tr>

      </table>
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    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">failure
                to pay any liquidated damages on any Debenture after a period of
                three
                trading days; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">failure
                to perform other covenants under the Debenture that is not cured
                by the
                earlier of seven trading days after notice by holders or 15 trading
                days
                after DOBI is aware of such default;
</font></div>
            </td>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">default
                under the other financing documents that is not cured by the earlier
                of
                five trading days after notice or ten trading days after DOBI is
                aware of
                such default; </font></div>
            </td>
          </tr>

      </table>
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    <div>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                representation or warranty under the financing documents that is
                untrue or
                incorrect in any material respect;
</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">certain
                events of bankruptcy or insolvency of DOBI or any significant subsidiary;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                default by DOBI or its subsidiary under any instrument in excess
                of
                $150,000 that results in such obligation becoming due and payable
                prior to
                maturity; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DOBI
                becoming party to a change of control transaction, or disposing of
                greater
                than 33% of its assets or redeeming more than a de minimus number
                of
                outstanding equity securities; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">failure
                by DOBI to have its first registration statement covering the resale
                of
                the common stock issuable upon the conversion of the Debentures and
                exercise of the Warrants (as defined below) declared effective by
                the SEC
                on or before October 28, 2006; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if,
                during the effectiveness period of the registration statement, the
                effectiveness of the registration statement lapses for any reason
                or the
                holders shall not be permitted to resell registrable securities under
                such
                registration statement, in either case, for more than 30 consecutive
                trading days or 60 non-consecutive trading days during any 12-month
                period, subject to certain limited exceptions;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">failure
                to deliver common stock certificates to a holder prior to the fifth
                trading day after a Debenture conversion date.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      an
      event of default, the outstanding principal amount of the Debentures plus all
      accrued and unpaid interest shall become immediately due and payable to the
      holders of the Debentures. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Debentures contain various covenants that limit DOBI&#8217;s ability to:
</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incur
                additional indebtedness, other than permitted indebtedness as defined
                in
                the Debenture; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incur
                specified liens, other than permitted liens as defined in the Debenture;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">amend
                its certificate of incorporation or by-laws in a material adverse
                manner
                to the holders; or </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">repay
                or repurchase more than a de minimus number of shares of common stock.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        part
        of the financing, DOBI has agreed to be bound by the following covenants:
        </font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">not
                to issue shares of common stock or other securities convertible or
                exercisable into common stock in a financing transaction until 90
                days
                after the effective date of the second registration statement;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">not
                to undertake a reverse or forward stock split or reclassification
                of the
                common stock until the one-year anniversary of the effective date
                of the
                second registration statement, without the consent of a majority
                in
                interest of the holders; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                hold a special or annual meeting of stockholders at the earliest
                practicable date for the purpose of amending DOBI&#8217;s certificate of
                incorporation to increase the number of authorized shares of common
                stock;
                and </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                reduce its consolidated monthly operating loss to specified levels
                through
                December 31, 2006. </font></div>
            </td>
          </tr>

      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Securities Purchase Agreement, DOBI is also issuing three series of
      Common Stock Purchase Warrants to the Purchasers in the form attached hereto
      as
      Exhibit 4.2 (the &#8220;Warrants&#8221;). The Series A and Series B Common Stock Purchase
      Warrants are exercisable until April 28, 2009 to purchase initially up to
      112,500,000 shares of common stock, 75,000,000 shares at an exercise price
      of
      $.15 per share and 37,500,000 shares at an exercise price of $.50 per share
      (the
&#8220;Exercise Prices&#8221;). These warrants contain provisions to adjust the Exercise
      Prices in the event that DOBI issues common stock in a financing transaction
      at
      a price less than the then applicable Exercise Price, in which case the Exercise
      Price shall be reduced to the price at which such common stock was issued.
      The
      Series C Common Stock Purchase Warrant is exercisable until the earlier of
      (i)
      the later of December 31, 2006 or the one-month anniversary of the effective
      date of the first registration statement or (ii) May 28, 2007, to purchase
      up to
      75,000,000 shares of common stock at an exercise price of $.08 per share. All
      of
      the warrants may be exercised on a cashless basis under certain circumstances.
      The Series A and Series C Common Stock Purchase Warrants are callable in the
      event DOBI&#8217;s common stock trades at $.50 and $.20 per share, respectively, for
      20 consecutive trading days.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      financing was completed through a private placement to unaffiliated
      institutional accredited investors and was exempt from registration pursuant
      to
      Section 4(2) of the Securities Act of 1933, as amended. Pursuant to the
      Registration Rights Agreement with the Purchasers, dated as of April 28, 2006,
      which is attached hereto as Exhibit 4.3 (the &#8220;Registration Rights Agreement&#8221;),
      DOBI has agreed to file a first registration statement on or before May 28,
      2006, covering the resale of the shares issuable to the Purchasers upon
      conversion of the Debentures and exercise of the Warrants purchased on May
      1,
      2006, and a second registration statement covering the resale of the securities
      issuable to the Purchasers at the second closing. The Registration Rights
      Agreement provides for liquidated damages for any failure to timely file or
      obtain an effective registration statement. In addition, for nine months
      following the effectiveness of the second registration statement, the holders
      of
      the Debentures have the right to participate in DOBI&#8217;s future equity or
      equity-linked financings, subject to certain exempt issuances. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      officers, directors and 10% or greater stockholders agreed not to publicly
      sell
      any of their shares for six months after the effective date of the first
      registration statement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with consummating the financing pursuant to the Securities Purchase
      Agreement, DOBI has paid or will pay fees to C.E. Unterberg, Towbin LLC, acting
      as the exclusive placement agent, of $367,500. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      net
      proceeds of the financing are being used by DOBI for working capital and general
      corporate purposes with an emphasis on the completion of its clinical trial
      research study and PMA application to the FDA, and international sales and
      marketing efforts.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      May 1,
      2006, DOBI issued a press release regarding the financing described in this
      report. A copy of such press release is filed herewith as Exhibit 99.1 and
      is
      incorporated herein by reference. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing description of the transaction is only a summary and is qualified
      in
      its entirety by reference to the form of Debenture contained in Exhibit 4.1,
      form of Warrant contained in Exhibit 4.2, Registration Rights Agreement
      contained in Exhibit 4.3, Securities Purchase Agreement contained in Exhibit
      10.1 and Security Agreement contained in Exhibit 10.2, each of which is
      incorporated herein by reference. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02. Unregistered Sales of Equity Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      information called for by this Item 3.02 is contained in Item 1.01, which is
      incorporated herein by reference. </font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(d)
      Exhibits. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="middle" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit&#160;No.</u></strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
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                of Convertible Debenture due August 28, 2007.</font></div>
            </td>
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          <tr>
            <td align="left" valign="middle" width="9%">&#160;</td>
            <td align="left" colspan="2" valign="middle" width="69%">&#160;</td>
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            </td>
            <td align="left" valign="bottom" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="65%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of Series A/B/C Common Stock Purchase Warrant.</font></div>
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            <td align="left" colspan="2" valign="middle" width="69%">&#160;</td>
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                Rights Agreement, dated as of April 28, 2006, by and among DOBI Medical
                International, Inc. and the Purchasers named in the Securities Purchase
                Agreement, dated as of April 28, 2006.</font></div>
            </td>
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            <td align="left" colspan="2" valign="middle" width="69%">&#160;</td>
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            </td>
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                Purchase Agreement, dated as of April 28, 2006, by and among DOBI
                Medical
                International, Inc. and the Purchasers named therein.</font></div>
            </td>
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            <td align="left" colspan="2" valign="middle" width="69%">&#160;</td>
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                Agreement, dated as of April 28, 2006, by and among DOBI Medical
                International, Inc. and the Purchasers named in the Securities Purchase
                Agreement, dated as of April 28, 2006.</font></div>
            </td>
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            <td align="left" colspan="2" valign="middle" width="69%">&#160;</td>
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            </td>
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                Release issued by DOBI Medical International, Inc. on May 1,
                2006.</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">DOBI
              MEDICAL
              INTERNATIONAL, INC.</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;April
              28, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              Michael R. Jorgensen</font></td>
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            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Michael
              R. Jorgensen<br>Executive Vice President and Chief
              Financial Officer</font></td>
          </tr>

      </table>
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{"company-data": {"conformed-name": "DOBI MEDICAL INTERNATIONAL INC", "cik": "0001111697", "assigned-sic": "3845", "irs-number": "980222710", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-32523", "film-number": "06800336"}, "business-address": {"street1": "1200 MACARTHUR BLVD", "city": "MAHWAH", "state": "NJ", "zip": "07430", "phone": "2017606464"}, "mail-address": {"street1": "1200 MACARTHUR BLVD", "city": "MAHWAH", "state": "NJ", "zip": "07430"}, "former-company": {"former-conformed-name": "LIONS GATE INVESTMENT LTD", "date-changed": "20000412"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
      of
      Report (Date of earliest event reported): April 28, 2006
DOBI
      MEDICAL INTERNATIONAL, INC.
(Exact
      Name of Registrant as Specified in Charter)
Delaware
(State
                or other jurisdiction
of
                incorporation)
0-32523
(Commission
                File Number)
98-0222710
(IRS
                Employer
Identification
                No.)
1200
                MacArthur Boulevard
Mahwah,
                New Jersey
(Address
                of principal executive offices)
07430
(Zip
                Code)
Registrant's
      telephone number, including area code: (201) 760-6464
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR
      240.13e-4(c))
CURRENT
      REPORT ON FORM 8-K
DOBI
      MEDICAL INTERNATIONAL, INC.
April
      28, 2006
Item
      1.01.
Entry
      into a Definitive Material Agreement.
On
      April
      28, 2006, DOBI Medical International, Inc. ("DOBI") entered into the Securities
      Purchase Agreement attached hereto as Exhibit 10.1 (the "Securities Purchase
      Agreement") with the purchasers named therein (the "Purchasers"). The
      transaction closed on May 1, 2006. Pursuant to the Securities Purchase
      Agreement, the Purchasers are purchasing Convertible Debentures in the form
      attached hereto as Exhibit 4.1 (the "Debentures") in the aggregate face or
      principal amount of $6,000,000, or $5,250,000 in aggregate cash subscription
      amount reflecting a 12.5% original issue discount, half of which subscriptions
      were funded on May 1, 2006, and the other half will be funded shortly following
      the effective date of DOBI's first registration statement (as described below).
      DOBI also entered into a Security Agreement, dated as of April 28, 2006, by
      and
      between DOBI and the signatories thereto and attached hereto as Exhibit 10.2
      (the "Security Agreement"), pursuant to which the Debentures are secured by all
      of the assets of DOBI, including DOBI's intellectual property. Monthly principal
      payments equal to 1/12
th
of the
      original principal amount of the Debentures begin on August 28, 2006, and are
      payable in cash or in shares of common stock based on a 15% discount to the
      daily volume weighted average price of the common stock for the ten trading
      days
      immediately preceding the payment date, provided such shares have been
      previously registered.
The
      Debentures have a term of 16 months and come fully due on August 28, 2007.
      The
      Debentures are convertible at the option of the holder at any time and from
      time
      to time into shares of common stock of DOBI at a conversion price equal to
      the
      lower of $.08 per share of common stock (initially 75,000,000 shares of common
      stock), or 80% of the five-day volume weighted average price of the shares
      prior
      to conversion with a floor price of $.02 per share. DOBI has the right to give
      holders written notice requiring them to convert all or any portion of their
      Debentures into common stock if (i) the closing price of its common stock
      exceeds 250% of the conversion price then in effect on each of the 20
      consecutive trading days ending no more than five trading days before the date
      that such notice is given, (ii) the average daily trading volume for the common
      stock during the trading period exceeds 600,000 shares and (iii) the shares
      into
      which the Debentures are convertible have been registered. The Purchasers agreed
      not to convert their Debentures or exercise their warrants, and DOBI will not
      be
      permitted to require a mandatory conversion, to the extent such conversion,
      exercise or issuance would result in beneficial ownership of more than 9.99%
      of
      the outstanding shares of DOBI at such time. I
n
      the
      event that DOBI issues common stock in an equity financing at a price less
      than
      the then conversion price, the conversion price shall be immediately adjusted
      to
      the price at which such common stock was issued, subject to certain exempt
      issuances.
Events
      of
      default under the Debentures include:
·
failure
                to pay principal on any Debenture when due;
·
failure
                to pay any liquidated damages on any Debenture after a period of
                three
                trading days;
·
failure
                to perform other covenants under the Debenture that is not cured
                by the
                earlier of seven trading days after notice by holders or 15 trading
                days
                after DOBI is aware of such default;
·
default
                under the other financing documents that is not cured by the earlier
                of
                five trading days after notice or ten trading days after DOBI is
                aware of
                such default;
·
any
                representation or warranty under the financing documents that is
                untrue or
                incorrect in any material respect;
2
·
certain
                events of bankruptcy or insolvency of DOBI or any significant subsidiary;
·
any
                default by DOBI or its subsidiary under any instrument in excess
                of
                $150,000 that results in such obligation becoming due and payable
                prior to
                maturity;
·
DOBI
                becoming party to a change of control transaction, or disposing of
                greater
                than 33% of its assets or redeeming more than a de minimus number
                of
                outstanding equity securities;
·
failure
                by DOBI to have its first registration statement covering the resale
                of
                the common stock issuable upon the conversion of the Debentures and
                exercise of the Warrants (as defined below) declared effective by
                the SEC
                on or before October 28, 2006;
·
if,
                during the effectiveness period of the registration statement, the
                effectiveness of the registration statement lapses for any reason
                or the
                holders shall not be permitted to resell registrable securities under
                such
                registration statement, in either case, for more than 30 consecutive
                trading days or 60 non-consecutive trading days during any 12-month
                period, subject to certain limited exceptions;
                and
·
failure
                to deliver common stock certificates to a holder prior to the fifth
                trading day after a Debenture conversion date.
Upon
      an
      event of default, the outstanding principal amount of the Debentures plus all
      accrued and unpaid interest shall become immediately due and payable to the
      holders of the Debentures.
The
        Debentures contain various covenants that limit DOBI's ability to:
·
incur
                additional indebtedness, other than permitted indebtedness as defined
                in
                the Debenture;
·
incur
                specified liens, other than permitted liens as defined in the Debenture;
·
amend
                its certificate of incorporation or by-laws in a material adverse
                manner
                to the holders; or
·
repay
                or repurchase more than a de minimus number of shares of common stock.
As
        part
        of the financing, DOBI has agreed to be bound by the following covenants:
·
not
                to issue shares of common stock or other securities convertible or
                exercisable into common stock in a financing transaction until 90
                days
                after the effective date of the second registration statement;
·
not
                to undertake a reverse or forward stock split or reclassification
                of the
                common stock until the one-year anniversary of the effective date
                of the
                second registration statement, without the consent of a majority
                in
                interest of the holders;
·
to
                hold a special or annual meeting of stockholders at the earliest
                practicable date for the purpose of amending DOBI's certificate of
                incorporation to increase the number of authorized shares of common
                stock;
                and
·
to
                reduce its consolidated monthly operating loss to specified levels
                through
                December 31, 2006.
3
Pursuant
      to the Securities Purchase Agreement, DOBI is also issuing three series of
      Common Stock Purchase Warrants to the Purchasers in the form attached hereto
      as
      Exhibit 4.2 (the "Warrants"). The Series A and Series B Common Stock Purchase
      Warrants are exercisable until April 28, 2009 to purchase initially up to
      112,500,000 shares of common stock, 75,000,000 shares at an exercise price
      of
      $.15 per share and 37,500,000 shares at an exercise price of $.50 per share
      (the
"Exercise Prices"). These warrants contain provisions to adjust the Exercise
      Prices in the event that DOBI issues common stock in a financing transaction
      at
      a price less than the then applicable Exercise Price, in which case the Exercise
      Price shall be reduced to the price at which such common stock was issued.
      The
      Series C Common Stock Purchase Warrant is exercisable until the earlier of
      (i)
      the later of December 31, 2006 or the one-month anniversary of the effective
      date of the first registration statement or (ii) May 28, 2007, to purchase
      up to
      75,000,000 shares of common stock at an exercise price of $.08 per share. All
      of
      the warrants may be exercised on a cashless basis under certain circumstances.
      The Series A and Series C Common Stock Purchase Warrants are callable in the
      event DOBI's common stock trades at $.50 and $.20 per share, respectively, for
      20 consecutive trading days.
The
      financing was completed through a private placement to unaffiliated
      institutional accredited investors and was exempt from registration pursuant
      to
      Section 4(2) of the Securities Act of 1933, as amended. Pursuant to the
      Registration Rights Agreement with the Purchasers, dated as of April 28, 2006,
      which is attached hereto as Exhibit 4.3 (the "Registration Rights Agreement"),
      DOBI has agreed to file a first registration statement on or before May 28,
      2006, covering the resale of the shares issuable to the Purchasers upon
      conversion of the Debentures and exercise of the Warrants purchased on May
      1,
      2006, and a second registration statement covering the resale of the securities
      issuable to the Purchasers at the second closing. The Registration Rights
      Agreement provides for liquidated damages for any failure to timely file or
      obtain an effective registration statement. In addition, for nine months
      following the effectiveness of the second registration statement, the holders
      of
      the Debentures have the right to participate in DOBI's future equity or
      equity-linked financings, subject to certain exempt issuances.
Executive
      officers, directors and 10% or greater stockholders agreed not to publicly
      sell
      any of their shares for six months after the effective date of the first
      registration statement.
In
      connection with consummating the financing pursuant to the Securities Purchase
      Agreement, DOBI has paid or will pay fees to C.E. Unterberg, Towbin LLC, acting
      as the exclusive placement agent, of $367,500.
The
      net
      proceeds of the financing are being used by DOBI for working capital and general
      corporate purposes with an emphasis on the completion of its clinical trial
      research study and PMA application to the FDA, and international sales and
      marketing efforts.
On
      May 1,
      2006, DOBI issued a press release regarding the financing described in this
      report. A copy of such press release is filed herewith as Exhibit 99.1 and
      is
      incorporated herein by reference.
The
      foregoing description of the transaction is only a summary and is qualified
      in
      its entirety by reference to the form of Debenture contained in Exhibit 4.1,
      form of Warrant contained in Exhibit 4.2, Registration Rights Agreement
      contained in Exhibit 4.3, Securities Purchase Agreement contained in Exhibit
      10.1 and Security Agreement contained in Exhibit 10.2, each of which is
      incorporated herein by reference.
Item
      3.02. Unregistered Sales of Equity Securities.
The
      information called for by this Item 3.02 is contained in Item 1.01, which is
      incorporated herein by reference.
4
Item
      9.01.
Financial
      Statements and Exhibits.
(d)
      Exhibits.
Exhibit No.
Description
4.1
Form
                of Convertible Debenture due August 28, 2007.
4.2
Form
                of Series A/B/C Common Stock Purchase Warrant.
4.3
Registration
                Rights Agreement, dated as of April 28, 2006, by and among DOBI Medical
                International, Inc. and the Purchasers named in the Securities Purchase
                Agreement, dated as of April 28, 2006.
10.1
Securities
                Purchase Agreement, dated as of April 28, 2006, by and among DOBI
                Medical
                International, Inc. and the Purchasers named therein.
10.2
Security
                Agreement, dated as of April 28, 2006, by and among DOBI Medical
                International, Inc. and the Purchasers named in the Securities Purchase
                Agreement, dated as of April 28, 2006.
99.1
Press
                Release issued by DOBI Medical International, Inc. on May 1,
                2006.
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
DOBI
              MEDICAL
              INTERNATIONAL, INC.
Date: April
              28, 2006
By:
/s/
              Michael R. Jorgensen
Michael
              R. Jorgensen
Executive Vice President and Chief
              Financial Officer
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