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| AWS      HOLDING AB AND ETTORE J. CORINGRATO JR         |
|---------------------------------------------------------|
|                                          |
| GEXFO      DISTRIBUTION INTERNATIONALE INC.   |
| SHARE      TRANSFER AGREEMENT                           |
|  REGARDING      PICOSOLVE AB                  |

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TABLE OF CONTENTS

1       Background

2       Definitions

3       Sale andPurchase

4       Purchase Price

4.1         The PurchasePrice

4.2.        Payment of the Fixed PurchasePrice

4.3         Payment of theEarn-Out

4.6         GeneralConditions

4.7         Conditions Precedent to Buyer’sobligations

4.8         Non-fulfilment

5       Closing

6       Warranties of theSeller

6.1         Corporate Existence andPower

6.2         Corporate Authorisation andNon-Contravention

6.3         Capitalisation andTitle

6.4         Records

6.5         Accounts and AccountingPrinciples

6.6         Loans and Other FinancialFacilities

6.7         Dividends andLoans

6.8         Title to Assets

6.9         Accounts Receivable and LiquidAssets

6.10        Leased Premises

6.11        Powers ofAttorney

6.12        Agreements

6.13        Insurance

6.14        EnvironmentalMatters

6.15        IntellectualProperty

6.16        IT and DataProtection

6.17        Employment and Pension Agreements andLabour Controversies

6.18        Compliance withLaw

6.19        Litigation

6.20        Taxes

6.21        The Business

6.22        Relationship with theSeller

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6.23         Information

6.24         Absence of Certain Changes orEvents

7       Covenants of theSeller

7.1         RestrictiveCovenant

7.2         Co-operation bySeller

7.3         Breach by theSeller

8       Covenants of theBuyer

9       Indemnification

9.1         Indemnification

9.2         Limitation ofIndemnification

10       Confidentiality

11       Announcements

12       Costs

13       EntireAgreement

14       Amendments andWaivers

15       Notices

16       Assignments

17       PartialInvalidity

18       Governing Law andDisputes

APPENDICES:

| Appendix 4.4.1  | Calculation of the  Earn-outs |
|----------------------|-------------------------------|

| Appendix 4.6 | CompetitionAuthorities |
|--------------|------------------------|

|  Appendix 6.3.2  |  Share Capital of the  company |
|----------------------------|-------------------------------------|

| Appendix 6.4.1 | Copies of the Company’s articles of association,      shareholders’ register and extracts from the relevant trade      register |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| Appendix 6.5.2 | BalanceSheet |
|----------------|--------------|

| Appendix 6.6.1 | Loans and other Financial    Facilities |
|----------------|-----------------------------------------|

| Appendix 6.10.1 | LeasedPremises |
|-----------------|----------------|

| Appendix 6.12.1 | MaterialAgreements |
|-----------------|--------------------|

| Appendix 6.12.4 | Obligations or Warranty      Undertakings |
|-----------------|-------------------------------------------|

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| Appendix 6.15.1 | IntellectualProperty |
|-----------------|----------------------|

| Appendix 6.15.5 | List of all litigation, proceedings,      investigations, claims oractions |
|-----------------|----------------------------------------------------------------------------|

| Appendix 6.15.7 | Owned Intellectual Property or Licensed      Intellectual Property |
|-----------------|--------------------------------------------------------------------|

| Appendix 6.17.1 | Employmentmatters |
|-----------------|-------------------|

| Appendix 6.17.2 | EmploymentAgreements |
|-----------------|----------------------|

| Appendix 6.19.1 | Litigation |
|-----------------|------------|

| Appendix 6.24.1 | CertainEvents |
|-----------------|---------------|

PATENTTRANSFER AGREEMENT

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| (1)   | Starta Eget Boxen 11 629      AB, in the process of changing its name to AWS Holding AB, a      company duly incorporated and organised under the laws of Sweden, Sweden      (the “Holding”); and NOTE 1 |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Ettore      J. Coringrato Jr., (“NN”) NOTE1 |
|-----------------|--------------------------------------------------------------|

| (3)   | GEXFO Distribution      Internationale, Inc., a company duly incorporated and organised      under the laws of the province of Quebec, Canada, having its registered      address at  400 Godin Avenue, Quebec City, Province of Quebec,      Canada, G1M 2K2 (the “Buyer”). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1   | Background |
|---------------|------------|

| 1.1   | PicoSolve      AB, is a company duly incorporated and organised under the laws of Sweden,      having its registered address at Chalmers Teknikpark, 412 88 Gothenburg,      Sweden (the “Company”), NOTE 1 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.2   | The      Seller owns all of the outstanding shares in the Company. NOTE      1 |
|-----------------|--------------------------------------------------------------------------------|

| 1.3   | The      Seller agrees to sell and the Buyer agrees to purchase all of the Shares      on a fully diluted basis the terms and conditions set out in this      Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | Definitions |
|---------------|-------------|

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| 3   | Sale      and Purchase |
|---------------|------------------------|

| 3.1   | Upon      the terms and subject to the conditions set out in this Agreement, the      Seller agrees to sell and the Buyer agrees to purchase the Shares,      together with all rights attached tothem. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2   | The      Shares shall be transferred to the Buyer on and as of the Closing Date,      free and clear from anyEncumbrances. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| 4   | Purchase      Price |
|---------------|---------------------|

| 4.1   | The      Purchase Price |
|-----------------|-------------------------|

| 4.1.1   | NOTE      2 |
|-------------------|-------------|

4.2

| (a)   | NOTE      2 |
|-----------------|-------------|

| (b)   | NOTE      2 |
|-----------------|-------------|

4.3

|   | The      purchase price for the Shares shall comprise of the First Earn-out,      the  Second Earn-out, the Third Earn-Out and the Fourth Earn-Out      and the four Earn-Outs calculated and paid according to an Earn-out      structure as further set out below. Payment shall be effected to Holding      and NN in the same proportions as the Fixed Purchase Price. Each of the periods below shall be an “Earn-Out      period”. NOTE 2 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.3.1 | NOTE      2 |
|-------|-------------|

| 4.3.2 | NOTE  2 |
|-------|---------|

| 4.3.3. | NOTE      2 |
|--------|-------------|

| 4.3.4 | NOTE      2 |
|-------|-------------|

| 4.4.1 | The      Buyer shall calculate earned Earn-Out for the respective period above      after the expiry of the period. The calculation shall be made in USD as      per EXFO’s accounting system. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Appendix 4.4.1 sets out an example of the      calculation of the Earn-Outamounts. |
|--------|------------------------------------------------------------------------------------|

| 4.4.2 | The      Seller may audit the Buyer’s calculation of Earn-Out at any time through      an Independent Accounting Firm at Seller’scost. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5.1 | Within      Business Days following the expiry of an Earn-Out period NOTES 1, 2      AND 3 |
|-------|-------------------------------------------------------------------------------------------------|

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| 4.5.2 | NOTE      2 |
|-------|-------------|

4.6

|   | The      respective obligations of the Buyer and the Seller to complete the      transactions contemplated by this Agreement shall be subject to receipt of      all clearances and approvals from the Competition Authorities, listed in      Appendix 4.6 unconditional, or if      subject to any conditions, only such conditions that are acceptable to the      Buyer in its sole discretion or the waiver by the Buyer of any clearance      or approval from the competitionauthorities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Buyer has waived this condition on the Closing  Date. |
|--------|----------------------------------------------------------------|

4.7

|         (a)   | any      and all required consents under any of the Material Agreements to the      change of control or change of management of the Company having been      obtained on terms and conditions acceptable to the Buyer, in its sole      discretion; |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Warranties being true and correct  at the Closing Date and the      Seller shall having performed  all of its obligations hereunder      required to be performed by it on or prior to the Closing Date;      and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | approval      of the board of directors of the Buyer and EXFO;  and |
|-----------------|---------------------------------------------------------------------|

| (d)   | the      Patent Transfer Agreement between Holding and EXFO, shall have been duly      executed; and |
|-----------------|------------------------------------------------------------------------------------------------------|

| (e)   | NOTES      3 AND 4 |
|-----------------|--------------------|

| (f)   | NOTES      1 AND 2 |
|-----------------|--------------------|

| (g)   | The      balance sheet of the Company as of the Closing Date satisfactory to the      Buyer |
|-----------------|---------------------------------------------------------------------------------------------|

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| (h)   | NOTES      3 AND 4 |
|-----------------|--------------------|

4.8

|   | In      the event that the conditions set out in Sections 4.7 above have not been      fulfilled , the Buyer shall be entitled, in its sole discretion, to      terminate this Agreement forthwith in writing, and the Seller shall not be      entitled to any compensation of any kind due to such termination. NOTE      2 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5   | Closing |
|---------------|---------|

| 5.1   | Signing      and Closing shall take place at the offices of Advokatfirman Vinge KB,      Nils Ericssongatan 17, Göteborg, at 14.00 on the Closing    Date. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2   | At      Closing: |
|-----------------|------------------|

| (a)   | the      Seller shall: |
|-----------------|------------------------|

| (i)   | transfer      the Shares |
|-----------------|--------------------------|

| (ii)   | deliver      to the Buyer the Company’s shareholders’ register, evidencing that the      Buyer has been duly entered as the holder of the  Shares; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | ensure      that all Directors, as notified by the Buyer to the Seller not later than      three (3) Business Days prior to the Closing Date, retire from their      respective offices, each such Director acknowledging in writing that he or      she has resigned as a director of the Company, and that he or she has no      claims against the Buyer or the Company for compensation or      otherwise; |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | have      taken all such measures that are requested by the Buyer in order for the      Buyer to hold a shareholders’ meeting and a board meeting in the Company      on the Closing Date, allowing the Buyer to appoint new directors and      deputy directors, to appoint company signatories and to make all other      decisions required by the Buyer; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | cause      the Company to issue powers of attorney enabling the persons appointed by      the Buyer to sign for and on behalf of the Company until new signatories      have been duly registered; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | demonstrate      to the Buyer that the Company has been fully and finally released from      guarantees, indemnities or other obligations given or incurred by the      Company, as applicable, in favour of the Seller or any of its Affiliated      Persons. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | Demonstrate      to the Buyer that the Company does not have any debt, amount payable,      taxes payable or any other amount due at the Closing  Date. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | the      Buyer shall, against performance by the Seller of the requirements in      Section 5.2 (a), pay the Purchase Price as set out in Section      4.1. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6   | Warranties      of the Seller |
|---------------|-------------------------------|

| 6.1   | Corporate      Existence and Power |
|-----------------|------------------------------------|

| 6.1.1   | The      Holding and the Company are duly incorporated and validly existing under      the laws of the jurisdictions in which they were incorporated and the      Seller has the requisite power and authority to enter into and perform its      obligations under this Agreement and in any certificate or other document      furnished or to be furnished under this Agreement. The Company has full      corporate power and all necessary licences, permits and authorisations to      carry on the Business as now conducted and to own, lease and operate the      assets and Properties necessary in connection therewith. NN has the      requisiste power and authority to enter into and perform his obligations      under this Agreement and any obligation relating  hereto. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1.2   | The      Company has not filed (or have had filed against them) any petition for      their winding-up, are not insolvent within the meaning of applicable laws,      rules or regulations or similar requirements, and have not made any      assignment in favour of its creditors, nor has any petition for      receivership or any administration order been presented in respect of any      of the Company. The Company has not initiated any proceedings with respect      to a compromise or arrangement with its creditors or for the dissolution,      liquidation or reorganisation of theCompany or the winding-up or cessation      of the business of the Company. No receiver or administrative receiver or      liquidator has been appointed in respect of the Company or any of its      material assets. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2   | Corporate      Authorisation and Non-Contravention |
|-----------------|----------------------------------------------------|

| 6.2.1   | This      Agreement and any certificate or other document furnished or to be      furnished under this Agreement and the performance by the Seller of its      obligations under them have been duly authorised by all necessary      corporate action on the part of the Seller, and this Agreement and any      other document or instrument executed in connection with this Agreement      will, when executed, constitute valid and binding obligations of the      Seller in accordance with their respective  terms. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2.2   | The      execution by the Seller of this Agreement and any other document or      instrument in connection with it, and the performance by the Seller of its      obligations under the Agreement and the consummation of the transaction      provided for in this Agreement, do not and will not result in a breach of      any provision of the articles of association of the Seller or the Company      or of any applicable law, order, judgement or decree of any court or      governmental agency or of any agreement to which the Seller or the Company      is a party or by which the Seller or the Company is  bound. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.3   | Capitalisation      and Title |
|-----------------|-------------------------------|

| 6.3.1   | The      Seller lawfully owns and has good and transferable title to the Shares.      The Shares are free and clear from any Encumbrances and there is no      agreement to create any Encumbrance over any such shares. Upon the      delivery of the Shares by the Seller against payment of the Purchase      Price, the Buyer will acquire good and marketable title to the Shares free      and clear from any Encumbrances. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.2   | The      share capital of the Company is fully and correctly listed in Appendix 6.3.2. The Shares constitute the      entire issued capital stock of the Company, and are legally and validly      issued and fully paid and owned as set out in Appendix6.3.2. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.3   | There      are no outstanding subscriptions, options or similar rights relating to      the Shares and no securities giving a right to conversion into, or any      agreement or arrangement which accords to any Person the right to acquire,      shares in the Company. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.4   | All      share certificates representing the Shares are in the possession of the      Seller  and they are the only share certificates ever issued in      relation to such shares. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3.5   | The      Company has been rendered any conditional contribution by any      Person. |
|-------------------|-------------------------------------------------------------------------------------|

| 6.4   | Records |
|-----------------|---------|

| 6.4.1   | Copies      of the Company’s articles of association, shareholders’ registers and      extracts from the relevant trade registers are attached as Appendix 6.4.1, and all such copies are      true, accurate, up-to-date and complete, and reflect the present status of      the Company. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.4.2   | All      constitutional and other corporate documentation of the Company required      by the applicable law, including but not limited to the Statutory Books,      articles of association, annual reports, permits and licences, exist and      are kept in accordance with applicable law and in an organised way and are      true, accurate, up-to-date and complete, and all registrations and      applications relating thereto have been fulfilled, and all applicable fees      have been paid. There are no registrations of changes pending with the      relevant authorities in the jurisdiction of the Company. No notice or      allegation that any of the corporate documentation mentioned in this      Section 6.4.2 is incorrect or should be rectified has been      received. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5   | Accounts      and Accounting Principles |
|-----------------|-----------------------------------------|

| 6.5.1   | The      Accounting Principles have been applied on a consistent basis during the      existence of the Company. |
|-------------------|------------------------------------------------------------------------------------------------------------------|

| 6.5.2   | The      Accounts have been prepared in accordance with the Accounting Principles      and they give a true and fair view of the financial position and results      of the operations of the Company. Balance sheet is attached as, Appendix6.5. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.5.3   | The      Company has not pledged any assets or has any obligations,      commit­ments or liabilities, liquidated or non-liquidated, contingent      or otherwise, whether for Taxes or otherwise, in excess of what is shown      in the Accounts. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5.4   | The      inventory of the Company has been subject to physical stock-taking as at      the Accounts Date and adequate reserves have been made in the Accounts for      slow moving items, excessive inventory levels and commercial or technical      obsolescence in accordance with the Accounting  Principles. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.5.5   | The      value of all inventory, including finished goods, work-in-process and raw      materials, has been recorded in accordance with the Accounting      Principles. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6   | Loans      and Other Financial Facilities |
|-----------------|-------------------------------------------|

| 6.6.1   | There      are no loans or other financial facilities available to the Company other      than as set out in Appendix      6.6.1. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 6.6.2   | There      is no event which gives, or after notice or lapse of time, or both, would      give any third party the right to call for repayment from the Company      prior to normal maturity of any loan or other financial      facility. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7   | Dividends      and Loans |
|-----------------|--------------------------|

| 6.8   | Title      to Assets |
|-----------------|----------------------|

| 6.8.1   | The      Company is the owner of the assets, tangible and intangible, that are      reflected in the Accounts and has good and marketable title to all such      assets, tangible and intangible, free and clear from any      Encumbrance. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.8.2   | The      Company does not have any lease for premises and assets, tangible and      intangible, necessary for it to carry on the Business as presently      conducted. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.9   | Accounts      Receivable and Liquid Assets |
|-----------------|--------------------------------------------|

| 6.9.1   | There      are no accounts receivable or any amount to be received by the Company at      the Closing Date. |
|-------------------|-------------------------------------------------------------------------------------------------------------|

| 6.9.2   | All      liquid assets of the Company, including but not limited to bank accounts      and cash, are available free and clear from any    Encumbrances. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.10   | Leased      Premises |
|------------------|----------------------|

| 6.10.1   | There      are no lease agreements for premises leased by the  Company. |
|--------------------|-------------------------------------------------------------------------|

| 6.10.2   | The  Company      does not own and has never owned any real estate or    property. |
|--------------------|----------------------------------------------------------------------------------------------|

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| 6.11   | Powers      of Attorney |
|------------------|-------------------------|

| 6.12   | Agreements |
|------------------|------------|

| 6.12.1   | There      are no other Material Agreements than those listed in Appendix 6.12.1. The Material Agreements      listed in said appendix are in full force and effect and the text of the      agreements accurately reflects the contents of the    agreements. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.12.2   | Neither      the Seller nor the Company has received any notice that the Company      is  in default under any provision of any Material Agreement,      and the Company has not received or given notice of termination of any      Material Agreement. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.12.3   | The      Company is not: |
|--------------------|--------------------------|

| (a)   | in      default under any provision of any Material Agreement and no event has      occurred which would constitute such adefault; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | aware      of, or has any reason to believe, that any counterparty to a Material      Agreement is in default under any provision of any Material      Agreement; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | a      party to any agreement containing provisions for material price      re-determination or price revision except for compensation for inflation,      movements in exchange rates, and discounts for bulk  buying; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | or      has been a party to any agreement or arrangement which is or could be      contravening applicable laws; |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (e)   | a      party to or bound by any agreement, judgement or order under which the      execution or performance of this Agreement (i) would give any other      contracting party the right to terminate or adversely change the terms and      conditions of such agreement, or that would otherwise have a negative      effect for the Company, or (ii) would constitute a violation or default by      the Company, or (iii) would result in the creation of an Encumbrance on      any assets of the Company; or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | a      party to any agreement containing any terms or conditions not consistent      with fair market terms, conditions andprices. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| 6.12.4   | The      Company has not sold any company, business, shares, real property or other      asset where there are outstanding obligations or warranty undertakings      (express or implied), except as set out in Appendix6.12.4. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.13   | Insurance |
|------------------|-----------|

| 6.13.1   | The      Company does not maintain insurance policies on fire, theft, loss,      disruption, product and general liability and other forms of      insurance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.14   | Environmental      Matters |
|------------------|----------------------------|

| 6.14.1   | The      Company fully complies and has fully complied with the Environmental      Laws. |
|--------------------|------------------------------------------------------------------------------------------|

| 6.15   | Intellectual      Property |
|------------------|----------------------------|

| 6.15.1   | Appendix 6.15.1 sets forth a true and      complete list of all i) patent registrations and patent applications,      trademarks, trademark registrations, trademark applications, designs,      design registrations, design applications and domain names included in the      Owned Intellectual Property, and ii) license agreements for Licensed      Intellectual Property |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.2   | The      Owned Intellectual Property and the Licensed Intellectual Property include      all of the Intellectual Property used in the ordinary conduct of the      Business as currently conducted or intended to be conducted and there are      no other items of Intellectual Property that are necessary for the      ordinary conduct of the Business or for the Business contemplated to be      conducted. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.3   | The      Company is the exclusive owner of the Owned Intellectual Property with      full right of disposition and not subject to any Encumbrances, and are      entitled to use the Licensed Intellectual Property in the ordinary course      of the Business as currently conducted or as contemplated to be      conducted. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.4   | The      Owned Intellectual Property and the Licensed Intellectual Property are      subsisting, valid, enforceable and not withdrawn, cancelled or abandoned.      All Owned Intellectual Property and Licensed Intellectual Property which      may be registered by the Company have been duly registered. All      application fees and renewal fees for such Intellectual Property have been      paid in full and the registrations and applications are in all other      respects being maintained andasserted. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.5   | Appendix 6.15.5 sets forth a list of all      litigation, proceedings, investigations, claims or actions of any nature      alleging that the operation of the Business as formerly or currently      conducted or as contemplated to be conducted or the use of the Owned      Intellectual Property or the Licensed Intellectual Property infringes,      misappropriates, or otherwise violates or conflicts with the Intellectual      Property of any Person. Except as set out in Appendix 6.15.5, no      litigation, proceedings, investigations, claims or actions of such nature      are pending or are threatened. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.6   | No      Person has been engaged, is engaging or is expected to engage in any      activity or use of any Intellectual Property that infringes,      misappropriates, or otherwise violates or conflicts with the Owned      Intellectual Property or the Licensed Intellectual    Property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.7   | Except      as set out in Appendix 6.15.7, none of the Owned Intellectual      Property or Licensed Intellectual Property has been, is or is expected to      become, subject to any outstanding consents, settlements or judgments      restricting the use of such Intellectual Property or adversely effecting      the commercial value of the Company’s right to such Intellectual Property      or that would impair the validity or enforceability of such Intellectual      Property and the Company has not granted, or is obliged to grant, any      licence, assignment or other right in respect of any Intellectual      Property, or is obliged to disclose any Intellectual Property to any      Person. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.15.8   | The      consummation of the transactions contemplated by this Agreement will not      cause any impairment of any Owned Intellectual Property or any termination      of any license agreement for Licensed Intellectual Property or effect any      change in such agreement adverse to theBuyer. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.9   | The      Company has, with respect to third parties, maintained the confidentiality      of any trade secrets and other confidential Intellectual Property related      to the Business. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.10   | All      software used by the Company is free of all viruses, worms, Trojan horses      and other contaminants and does not contain any bugs, errors, or problems      of a material nature that disrupt its operation or have an adverse impact      on the operation of other software programs or operating      systems. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.11   | No      Open Source Software has been used by the Company and no product or item      developed or distributed by the Company has been distributed with, or is      designed to link with or access in any way any Open Source      Software. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.12   | The      Company has complied with the requirements of all licenses if any for      Licensed Intellectual Property, including licenses for Open Source      Software. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.15.13   | None      of the activities of the Company or the employees of the Company violates      any agreement or arrangement which any such employees have with former      employers. All employees and consultants who contributed to the discovery      or development of any of the Owned Intellectual Property have fully and      finally (without any compensation remaining to be paid) assigned all      rights to such Intellectual Property to the  Company. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.16   | IT      and Data Protection |
|------------------|-----------------------------|

| 6.16.1   | The      Company is not using software and is not using a Network for the      Business. |
|--------------------|------------------------------------------------------------------------------------------|

| 6.17   | Employment      and Pension Agreements and LabourControversies |
|------------------|----------------------------------------------------------------|

| 6.17.1   | Except      as set out in Appendix 6.17.1 there      are no, and the Company has not undertaken to have collective bargaining      agreements of the Company. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.17.2   | NOTES      1, 2 AND 4 |
|--------------------|-----------------------|

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| 6.18   | Compliance      with Law |
|------------------|--------------------------|

| 6.18.1   | The      Company complies with and has at all times (i) complied with and (ii)      conducted the Business in accordance with applicable laws relating to its      operations and the Business. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.18.2 | All      necessary licenses  consents, permits and authorisations have been      obtained by the Company to enable the Company to carry on the Business in      the places and in the manner in which such business is now conducted and      all such licences, consents, permits and authorisations are valid and      subsisting and have been complied with in all respects. NOTE    2 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.19   | Litigation |
|------------------|------------|

| 6.19.1   | There      are no suits, administrative, arbitration or other proceedings (including      but not limited to Tax proceedings) pending or threatened againstt the      Company, the Business or assets, and there are no such suits or      proceedings pending or threatened by the Company against any other Person,      nor are there any circumstances which may result in such suits,      administrative, arbitration or other proceedings, except as set out in      Appendix  6.19.1. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.19.2   | No      investigation or enquiry is being or has been conducted by any      governmental, fiscal, regulatory or other body in respect of the affairs      of the Company, and no such investigation is pending, threatened or      expected. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20   | Taxes |
|------------------|-------|

| 6.20.1   | The      Company has properly filed with the appropriate tax authorities all tax      returns and reports required to be filed for all tax periods ending prior      to the Closing Date and such filings are true, correct and complete and      all information required for a correct assessment of Taxes has been      provided, and the Company is not in delay with the payment of any Taxes      due to any tax authority. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.2   | The      tax returns of the Company have been assessed and approved by the tax      authorities through the tax years up to and including the years for which      such assessment and approval is required and the Company is not subject to      any dispute with any suchauthority. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.3   | All      Taxes that have become due have been fully paid or fully provided for in      the Accounts and the Company will not be liable for any additional Tax      pertaining to the period before the Accounts Date. All Taxes for the      period after the Accounts Date have been fully paid when    due. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.4   | There      are no tax audits, disputes or litigation currently pending with respect      to the Company, and there is no basis for assessment of any deficiency in      any Taxes against |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.5   | The      Company has not been involved in any transactions, which could be      considered as tax evasion. |
|--------------------|------------------------------------------------------------------------------------------------------------|

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| 6.20.6   | All      transactions and agreements entered into by the Company with the Seller      have been made on terms and conditions which do not in any way deviate      from what would have been agreed between independent parties (i.e. on      an arm’s length basis). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.7   | All      losses for tax purposes incurred by the Company are trading losses and are      available to be carried forward and set off against income in succeeding      periods without limitation and have been accepted by the relevant tax      authorities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.20.8   | The      Company is not and has not been subject to any taxation outside its      respective country of fiscalresidence. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| 6.21   | The      Business |
|------------------|-------------------|

| 6.21.1   | The      Company is not a party to or bound by any agreement which limits the      freedom of the Company to compete in any line of business or with any      Person or to transact business with anyPerson. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.21.2   | The      Company has no interest in any other business entity or association or      carries on, or has agreed to carry on, business in partnership or as an      equity participant in a joint venture with any other    Person. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.21.3   | The      Company has not entered into any agreement or commitment or is a party to      any transaction or arrangement which is not of an arm’s length nature or      not made in connection with theBusiness. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.21.4   | There      is no Encumbrance on the whole or on any part of the Business or assets of      the Company except as set out in the Accounts and there is no agreement to      create any such Encumbrance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.21.5   | The      Company has no outstanding offers which are capable of being binding      following acceptance by any third party, except in the ordinary course of      business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.21.6   | The      Company is not bound by any agreement which cannot readily be fulfilled or      performed by the Company on time. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| 6.22   | Relationship      with the Seller |
|------------------|-----------------------------------|

| 6.22.1   | Neither      the Seller, SCI, nor any of its Affiliated Persons or any other Person      affiliated with the Seller, have any claims of any kind against the      Company and the Company is not indebted in any way towards the Seller,      SCI, any of the Seller’s Affiliated Person or any other Person affiliated      with the Seller. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.22.2   | There      are no agreements or arrangements between the Company and the Seller, no      liabilities or obligations (contingent or otherwise) owed by the Company      in respect of the Seller, and no guarantees or similar commitments issued      by the Company for obligations owed by the  Seller. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 6.22.3   | No      services, which have been provided by the Seller to the Company, are      necessary for the conduct of the Business in the ordinary      course. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.22.4   | No      payments of any kind, including but not limited to management charges,      have been made by the Company to the Seller, save for payments under      agreements or arrangements made on an arm’s length  basis. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.23   | Information |
|------------------|-------------|

| 6.23.1   | All      documents provided to the Buyer by or on behalf of the Seller or the      Company are true and correct and no document provided to the Buyer by or      on behalf of the Seller or the Company, contains any untrue statement of a      relevant fact or omits to state a relevant fact necessary not to make the      statements contained in the documentmisleading. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.23.2   | All      original copies and other relevant documentation relating to agreements      entered into by the Company, and other information which is relevant in      relation to the activities of the Company, including historical records,      are true, accurate and complete in all respects and kept in good order and      are in the possession of theCompany. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.23.3   | There      are no facts or circumstances relating to the affairs of any of the      Company which have not been disclosed to the Buyer and which, if      disclosed, might reasonably have been expected to influence the decision      of the Buyer to purchase the Shares on the terms of this      Agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.24   | Absence      of Certain Changes or Events |
|------------------|-------------------------------------------|

| (a)   | the      Business has been conducted in the ordinary course of business with a view      to maintaining it as a going concern and no major decisions in any matters      of material importance to the Business have been implemented and the      Company has complied with applicable laws and has used its best efforts to      maintain all material licenses, permits and authorisations required to      carry on the business as presentlyconducted; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the      Company has not issued or repaid any share capital or issued any debt      instrument; |
|-----------------|-------------------------------------------------------------------------------------------------|

| (c)   | the      Company has not declared or paid any dividend, group contribution or made      any other distribution (including but not limited to repayment of      conditional contributions) to the Seller or any other    Person; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the      Company  has not entered into any transaction, arrangement or      agreement with the Seller, other than as contemplated by this Agreement,      and no payments have been made or agreed to be made by the Company to the      Seller or any of its Affiliated Persons other than pursuant to commercial      arrangements in the ordinary course ofbusiness; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | none      of the Material Agreements have been amended or terminated and there has      been no agreement to amend or terminate such  agreements; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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| (f)   | there      has not occurred any change in the financial condition, any extraordinary      event, loss, damage (whether covered by insurance or not) or any waiver of      any debts, claims, or rights of substantial value which separately or      jointly has resulted in, or may result in, a Material Adverse      Effect; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | the      Company has not sold, acquired, invested in, assigned, transferred,      pledged or otherwise encumbered, leased or otherwise disposed of any asset      – or borrowed any additional funds, assumed or incurred any liability,      obligation, expenditure orcommitment. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | The      Company has not repaid any of its loans existing as at the Accounts Date,      other than as required in the agreements governing such loans or in the      ordinary course of business; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | there      has been no change of accounting methods, principles or practices or      working capital principles orpractices; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (j)   | the      Company has not deferred any payments to creditors beyond the agreed date      of payment; |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (k)   | the      Company has not amended its principles for debt collection to the effect      that payments from debtors areaccelerated; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (l)   | all      Taxes have been paid when due; |
|-----------------|-----------------------------------------|

| (m)   | there      has been no investments in fixedassets; |
|-----------------|----------------------------------------------------|

| (n)   | the      Company has not amended its articles of association and has not passed any      resolution in shareholders’ meetings (other than any resolution      constituting ordinary business conducted at an annual shareholders’      meeting or as required in connection with this  Agreement); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | the      Company has not created any Encumbrance over any of its      assets; |
|-----------------|-------------------------------------------------------------------------------|

| (p)   | the      Company has not settled or waived any material  claim; |
|-----------------|-----------------------------------------------------------------|

| (q)   | the      Company has not instituted any litigation proceedings or settled or waived      any claim other than in relation to the collection of trade      debts; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (r)   | the      Company has not entered into voluntary liquidation;  and |
|-----------------|-------------------------------------------------------------------|

| (s)   | neither      the Seller nor the Company have agreed or arranged to do any of the      foregoing. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 7   | Covenants      of the Seller |
|---------------|------------------------------|

| 7.1   | Restrictive      Covenant |
|-----------------|---------------------------|

| 7.1.1   | The      Seller, directly or indirectly, undertakes at all times for a period      of  from the Closing Date not to, without the written consent of the      Buyer, assist or have any active interest in, own any assets or shares in      or act as agent or as adviser or consultant to or otherwise enter into any      relationship with any customer or supplier of any of the Company, the      Buyer or the EXFO Group, or to carry out any other activities which      compete with the Business. NOTE 2 |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7.1.2   | The      Seller, directly or indirectly, undertakes at all times for a period      of  from the Closing Date not to solicit the services of or endeavour      to entice away from the Company, the Buyer or the EXFO Group any of its      directors, managers or employees nor to employ any such person during such      period of time. NOTE 2 |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1.3   | NOTE      2 |
|-------------------|-------------|

| 7.2   | Co-operation      by Seller |
|-----------------|-----------------------------|

| 7.2.1   | The      Seller shall, at any time and from time to time, whether before, at, or      after the Closing Date, execute and deliver any further instruments or      documents and, at its own cost, take all such further action as the Buyer      may reasonably request in order to consummate effectively the transaction      contemplated by this Agreement and to deliver to the Buyer legal title to      the Shares. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2.2   | The      Seller shall take, or cause to be taken, all actions and to do, or cause      to be done, all things necessary to consummate and make effective as      promptly as possible the transaction contemplated by this Agreement and to      co-operate with the Buyer in connection with the foregoing, such as to      provide all information and documents required for the Buyer to complete      notification to the Competition Authorities. The Seller shall obtain the      authorisations, consents, orders and approvals of regulatory bodies and      officials that may be or become necessary for the performance of its      obligations pursuant to this Agreement and the completion of the      transaction contemplated by it. The Seller shall co-operate with the Buyer      and promptly seek to obtain such authorisations, consents, orders and      approvals as may be necessary for the performance of the Parties’      respective obligations pursuant to this  Agreement. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Breach      by the Seller |
|-----------------|---------------------------|

| 8   | Covenants      of the Buyer |
|---------------|-----------------------------|

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| 9   | Indemnification |
|---------------|-----------------|

| 9.1   | Indemnification |
|-----------------|-----------------|

| 9.1.1   | The      Seller shall be liable and shall indemnify the Buyer, and, after the      Closing, without duplication, the Company, from and against any and all      Losses. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1.2   | NOTE      2 |
|-------------------|-------------|

| 9.1.3   | NOTE      2 |
|-------------------|-------------|

| 9.1.4   | The      Buyer may deduct the amount of any Loss from any Earn-Out payment owed by      the Buyer. |
|-------------------|----------------------------------------------------------------------------------------------------|

| 9.2   | Limitation      of Indemnification |
|-----------------|------------------------------------|

| 9.2.1   | NOTE      2 |
|-------------------|-------------|

| 9.2.2   | NOTE      2 |
|-------------------|-------------|

| (a)   | NOTE      2 |
|-----------------|-------------|

| (b)   | NOTE      2 |
|-----------------|-------------|

| 9.2.3   | NOTE      2 |
|-------------------|-------------|

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| 9.2.4 | NOTE      2 |
|-------|-------------|

| 9.2.5 | This      Section 9.2.5 shall not apply to any breach of Warranty in relation to      Section 6.1 (Corporate Existence and Power), 6.2 (Corporate Authorisation      and Non-Contravention) or 6.3 (Capitalisation and Title), above. Claims      for any such breach may be made by the Buyer without any      limitations. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10   | Confidentiality |
|----------------|-----------------|

| 10.1   | Each      Party undertakes not to use or disclose any Confidential Information      unless (i) required to do so by law or pursuant to any order of court or      other competent authority or tribunal (ii) required to do so by any      applicable stock exchange regulations or the regulations of any other      recognised market place (iii) such disclosure has been consented to by the      other Party in writing (such consent not to be unreasonably withheld) or      (iv) to its professional advisers (who are bound to such party by a duty      of confidentiality which applies to any information disclosed). If a Party      becomes required, in circumstances contemplated by (i) or (ii) to disclose      any information, the disclosing Party shall use its reasonable endeavours      to consult with the other Party prior to any such    disclosure. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2   | Notwithstanding      Section 10.1 above, as from the Closing Date, the Buyer shall be entitled      to use and disclose any Confidential Information relating to the      Company. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11   | Announcements |
|----------------|---------------|

| 12   | Costs |
|----------------|-------|

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| 13   | Entire      Agreement |
|----------------|-----------------------|

| 14   | Amendments      and Waivers |
|----------------|-----------------------------|

| 15   | Notices |
|----------------|---------|

| 15.1   | All      notices, requests, demands, approvals, waivers and other communications      required or permitted under this Agreement must be in writing in the      English language and shall be deemed to have been received by a Party      when: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | delivered      by post, unless actually received earlier, on the third Business Day after      posting, if posted within Sweden, or the fifth Business Day, if posted to      or from a place outside Sweden; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | delivered      by hand, on the day of delivery; |
|-----------------|-------------------------------------------------|

| (c)   | delivered      by fax, on the day of dispatch if supported by a written confirmation from      the sender’s fax machine that the message has been properly      transmitted. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2   | All      such notices and communications shall be addressed as set out below or to      such other addresses as may be given by written notice in accordance with      this Section. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 15.3   | For      the purposes of this Agreement, “writing” or “written” shall include faxes      but not e-mails. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 16   | Assignments |
|----------------|-------------|

| 17   | Partial      Invalidity |
|----------------|-------------------------|

| 18   | Governing      Law and Disputes |
|----------------|---------------------------------|

| 18.1   | This      Agreement shall be governed by and construed in accordance with the laws      of Sweden. |
|------------------|----------------------------------------------------------------------------------------------------|

| 18.2   | Any      dispute, controversy or claim arising out of, or in connection with, this      Agreement, or the breach, termination or invalidity of the Agreement,      shall be finally settled by arbitration in accordance with the Arbitration      Rules of the Arbitration Institute of the Stockholm Chamber of Commerce      and the decision of the arbitrator(s) shall be final and binding upon the      Parties both as to law and to fact snd shall not be appealable to any      court in any jurisdiction. The Parties shall share the expense of the      arbitrator(s) equally, unless otherwise decided by the      arbitrator(s). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 18.3   | The      place of arbitration shall be Gothenburg, Sweden. The language to be used      in the arbitral proceedings shall be English. The arbitration shall be      conducted by one arbitrator unless either Party requests that an      arbitration tribunal composed of three (3) arbitrators shall adjuciate the      dispute and such Party shall be solely responsible for the expenses of the      two extra arbitrators, unless otherwise decided by the      arbitrators. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.4   | The      Parties undertake and agree that all arbitral proceedings conducted with      reference to this arbitration clause will be kept strictly confidential.      This confidentiality undertaking shall cover all information disclosed in      the course of such arbitral proceedings, as well as any decision or award      that is made or declared during the proceedings. Information covered by      this confidentiality undertaking may not, in any form, be disclosed to a      third party without the written consent of the other Party. This      notwithstanding, a Party shall not be prevented from disclosing such      information in order to safeguard in the best possible way his rights      vis-à-vis the other Party in connection with the dispute, or if the Party      is obliged to so disclose pursuant to statute, regulation, a decision by      an authority, a stock exchange contract or  similar. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.5   | In      case this Agreement or any part of it is assigned or transferred to a      third party, such third party shall automatically be bound by the      provisions of this arbitrationclause. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ____________________ |
|--------|----------------------|

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APPENDIX 4.4.1

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APPENDIX 4.6

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Appendix 6.3.2

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Appendix 6.4.1

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Appendix 6.5.2

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Appendix 6.6.1

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Appendix 6.10.1

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Appendix 6.12.1

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Appendix 6.12.4

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Appendix 6.15.1

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Appendix 6.15.5

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Appendix 6.15.7 

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Appendix 6.17.1

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Appendix 6.17.2

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Appendix 6.19.1

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pendix 6.24.1

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Patent Transfer Agreement

| 1 | Background |
|---|------------|

| 1.1 | The      Seller is the owner of all title, right and interest in and to certain      inventions, one of which is comprised by a pending patent application and      two of which are protected under issuedpatents. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | The      Seller agrees to sell and the Buyer agrees to purchase the Invention, the      Patents, the Patent Rights, the Background Documents and the Know-how, as      defined below, on the terms and conditions set out in this      Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Definitions |
|---|-------------|

|   | In      this Patent Transfer Agreement, the following definitions are      used: |
|--------|----------------------------------------------------------------------------------|

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|   | “Affiliated Person” means      a closely related Person (Sw. närstående) as set      out in Chapter 21 § 1 of the Swedish Companies Act (Sw. Aktiebolagslagen      (2005:551)) or a Person directly or indirectly controlling,      controlled by or under common control with the Seller or the Buyer (as the      case may be); |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Background Documents”:      means the tangible copy of all written and electronic communications      between any Person that were involved in claiming rights with respect to      the Patents including any patent agent involved in namely: (i) the      preparation of the Patents’ application; (ii) the filing of the Patents’      applications; (iii) the registration of the Patents; (iv) the maintenance      of the Patents; or (v) any other communication related to the Patents.      Notwithstanding Buyer obtaining such Background Documents in accordance      with the terms of this Patent Transfer Agreement, the Background Documents      shall maintain their confidential and privileged  status. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Business Day” means a      day when banks are open for general banking business in Sweden and in      Canada; |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | “Buyer” means EXFO Electro-Optical      Engineering Inc.; |
|--------|-----------------------------------------------------------------------|

|   | “Confidential      Information” means any information of any kind or nature      whatsoever, whether written or oral, including, without limitation, this      Patent Transfer Agreement and financial information, trade secrets and      other information regarding the Buyer, the Invention, the Patents, the      Patent Rights, the Background Documents and/or the Know-how, which is not      know to the general public; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Earn-out” means the      purchase price for the Invention, the Patents, the Patent Rights, the      Background Documents and the Know-how including the First Earn-out, the      Second Earn-out, the Third Earn-out  and the Fourth Earn-out and      as further set out in Section 3; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Earn-Out period” has      the meaning set out in section 3; |
|--------|--------------------------------------------------------------------------|

|   | “Effective Date” means      the date when this Patent Transfer Agreement becomes effective as set out      in Section 4; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | “Encumbrance” means any      mortgage, charge, pledge, lien, option or other security interest or      restriction of any kind, including anylicenses; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Invention” means the      inventions, as further described in the Patents, and all-optical phase      sensitive sampling arrangement that have or are yet to be      submitted; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | “Know-how” means the      knowledge, experience, data, drawings, models and descriptions and any      other information and knowledge concerning the Invention, the Patents and      the Patent Rights; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Net selling price”      means the price payable by the customer, exclusive of taxes,      freights, customs and other externalcharges; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Open Source Software”      means software licensed under terms pursuant to which the software      licensed may be used, modified and/or redistributed in source code and/or      object code forms without the payment of a license fee, including but not      limited to those licensed approved by the Open Source Initiative (see      www.opensource.org), such as the GNU General Public License (GPL), the GNU      Library or Lesser General Public License (LGPL), the Mozilla Public      Licence and the Apache License; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Party” means the Seller      or the Buyer, and “Parties” means the      Seller and the Buyer, collectively; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | ”Patent      Rights”      means the Patents, as defined below, and all present and future patent      applications and issued patents in every country claiming priority from      the Patents including any extension, supplemental protection      certification, registration, confirmation, reissue, continuation,      divisional, continuation-in-part, re-examination or renewal thereof and      any and all present and future patent applications in relation to the      Invention; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ”Patents” NOTE      2 |
|--------|-----------------------------------|

|   | “Person” means any      individual, firm, company, corporation or other corporate body,      government, state or agency of a state or any joint venture, trust,      association or partnership (general or limited), whether or not      incorporated, and whether or not its owners enjoy limited liability, and      any other legal entity; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “Seller” means Starta      Eget Boxen 11629 AB, under change of name to AWS Holding    AB; |
|--------|--------------------------------------------------------------------------------------------------------|

|   | “Technology” NOTE      2 |
|--------|--------------------------------------|

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|   | “Valid Bookings” means      confirmed purchase orders, for products developed or based on the      Technology, received by the EXFO Group and accepted by the EXFO Group      under their normal business terms NOTE2 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Assignment |
|---|------------|

| 2.1 | The      Seller hereby sells, transfers and conveys and the Buyer hereby acquires      all right, title and interest in and to the Invention, the Patents, the      Patent Rights, the Background Documents and the Know-how, including the      right to apply for intellectual property protection such as patent      protection in any country. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | The      Seller shall always be of reasonable assistance and further execute free      of charge any document required in Buyer’s reasonable opinion for      protection of the Invention and all other documents which may be required      to perfect the Buyer’s title to the Invention, the Patents, the Patent      Rights, the Background Documents and the  Know-how. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | The      Buyer shall bear the costs for filing, prosecuting and maintaining the      Patents and the Patent Rights incurred as from the Effective Date of this      Patent Transfer Agreement, including any fees payable to patent offices      for the assignment of the PatentRights. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Purchase      Price |
|---|---------------------|

| 3.1.1 | The      purchase price for the Invention, the Patents, the Patent Rights, the      Background Documents and the Know-how shall consist of the First Earn-out,      the Second Earn-out, the Third Earn-out and the Fourth Earn-out NOTE      2 |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.1.2 | NOTE      2 |
|-------|-------------|

| 3.1.3 | NOTE      2 |
|-------|-------------|

| 3.1.4 | NOTE      2 |
|-------|-------------|

| 3.1.5 | NOTE      2 |
|-------|-------------|

| 3.1.4 | NOTE      2 |
|-------|-------------|

| 3.2.1 | The      Buyer shall calculate earned Earn-Out for the respective period above      after the expiry of the period. The calculation shall be made in USD as      per the Buyer’s accounting system. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Appendix 3.2.1 sets out an example of the      calculation of the Earn-outamounts. |
|--------|------------------------------------------------------------------------------------|

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| 3.2.2 | The      Seller may audit the Buyers calculation of Earn-Out at any time through an      Independent Accounting Firm. |
|-------|-----------------------------------------------------------------------------------------------------------------------|

| 3.3.1 | NOTE      2 |
|-------|-------------|

| 3.3.2 | NOTE      2 |
|-------|-------------|

| 4 | Effective      Date |
|---|---------------------|

|   | This      Patent Transfer Agreement is effective as of the date of this Patent      Transfer Agreement. |
|--------|---------------------------------------------------------------------------------------------------------|

| 5 | Warranties |
|---|------------|

| 5.1 | The      Seller is the exclusive owner of  the Invention, the Patents,      the Patent Rights, the Background Documents and the Know-how with full      right of disposition and not subject to any Encumbrances, including      licenses. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      Patents and the Patent Rights are subsisting, valid, enforceable and not      withdrawn, cancelled or abandoned. All Invention, Patents and Patent      Rights which may be registered have been duly registered. All application      fees and renewal fees for such Invention, Patents and Patent Rights have      been paid in full and the registrations and applications are in all other      respects being maintained andasserted. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | No      litigation, proceedings, investigations, claims or actions of such nature      are pending or are threatened in respect of the Invention, the Patents,      the Patent Rights and/or theKnow-how. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.4 | No      Person has been engaged, is engaging or is expected to engage      in   any activity or use that infringes, misappropriates,      or otherwise violates or conflicts with the Invention, the Patents, the      Patent Rights and the Know-how. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5.5 | None      of the Invention, the Patents, the Patent Rights, the Background Documents      and/or the Know-how has been, is or is expected to become, subject to any      outstanding consents, settlements or judgments restricting the use of such      Invention, Patents, Patent Rights, the Background Documents and/or      Know-how or adversely effecting the commercial value of the right to such      Technology, Invention, Patents, Patent Rights and/or Know-how or that      would impair the validity or enforceability of such Invention, Patents,      Patent Rights and/or  Know-how and the Seller, including the      Seller’s predecessors, has not granted, or is obliged to grant, any      licence, assignment or other right in respect of any Invention, Patents,      Patent Rights, the Background Documents and/or Know-how, or is obliged to      disclose any Technology, Invention, Patents, Patent Rights, the Background      Documents and/or Know-how to anyPerson. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | The      consummation of the transactions contemplated by this Patent Transfer      Agreement will not cause any impairment of any  Invention,      Patents, Patent Rights, the Background Documents and/or      Know-how. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | All      software used by the Seller, including the Seller’s predecessors, in      relation to the Invention, the Patents, the Patent Rights, the Background      Documents and/or the Know-how is free of all viruses, worms, Trojan horses      and other contaminants and does not contain any bugs, errors, or problems      of a material nature that disrupt its operation or have an adverse impact      on the operation of other software programs or operating      systems. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | No      Open Source Software has been used in relation to the Invention, the      Patents, the Patent Rights, the Background Documents and/or the Know-how      and no product or item developed or distributed by the Company has been      distributed with, or is designed to link with or access in any way any      Open Source Software. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.9 | All      employees and consultants who contributed to the discovery or development      of any of the Invention, the Patents, the Patent Rights, the Background      Documents and/or the Know-how have fully and finally (without any      compensation remaining to be paid) assigned all rights to      such  Invention, Patents, Patent Rights, the Background      Documents and/or  Know-how to the  Seller. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.10 | No      public disclosure of the Invention or the Patents has been made that would      impair patentability of the Invention or the Patent, or validity of the      Patents or Patent Rights. |
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| 6 | Confidentiality |
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|   | The      Seller undertakes not to use or disclose any Confidential Information      unless (i) required to do so by law or pursuant to any order of court or      other competent authority or tribunal (ii) required to do so by any      applicable stock exchange regulations or the regulations of any other      recognised market place (iii) such disclosure has been consented to by the      Buyer in writing (such consent not to be unreasonably withheld) or (iv) to      its professional advisers (who are bound to such party by a duty of      confidentiality which applies to any information disclosed). If the Seller      becomes required, in circumstances contemplated by (i) or (ii) to disclose      any information, the Seller shall use its reasonable endeavours to consult      with the Buyer prior to any suchdisclosure. |
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|   | All      press releases, public announcements and public relations activities by      the Parties with regard to this Patent Transfer Agreement or the      transaction contemplated by it shall be mutually approved by the Parties      in advance of such release, announcement or activity. A Party shall,      however, not be prevented from, after reasonable consultation with the      other Party, disclosing such information which is required under law or      pursuant to any order of court or other competent authority or tribunal or      under any applicable stock exchange regulations or the regulations of any      other recognised market place. |
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|   | Notwithstanding      the above, the Seller shall not make any announcement whatsoever without      the prior written approval of the Buyer, which shall not unreasonably be      withheld. |
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|   | Each      Party shall pay its own costs and expenses in connection with the      preparation and completion of the transaction contemplated by this Patent      Transfer Agreement. |
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|   | This      Patent Transfer Agreement represents the entire understanding and      agreement between the Parties with respect to the subject matter hereof      and supersedes all prior negotiations, understandings and agreements      relating to the subject matterhereof. |
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|   | This      Patent Transfer Agreement may only be amended by an instrument in writing      duly executed by the Parties. No change, termination, modification or      waiver of any provision, term or condition of this Patent Transfer      Agreement shall be binding on the Parties, unless it is made in      writing. |
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|   | All      notices, requests, demands, approvals, waivers and other communications      required or permitted under this Patent Transfer Agreement must be in      writing in the English language and shall be deemed to have been received      by a Party when: |
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| (a)   | delivered      by post, unless actually received earlier, on the third Business Day after      posting, if posted within Sweden, or the fifth Business Day, if posted to      or from a place outside Sweden; |
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| (b)   | delivered      by hand, on the day of delivery; |
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| (c)   | delivered      by fax, on the day of dispatch if supported by a written confirmation from      the sender’s fax machine that the message has been properly      transmitted. |
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|   | All      such notices and communications shall be addressed as set out below or to      such other addresses as may be given by written notice in accordance with      this Section. |
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|   | For      the purposes of this Patent Transfer Agreement, “writing” or “written”      shall include faxes but note-mails. |
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|   | No      Party may assign, delegate, sub-contract, or otherwise transfer or pledge      or grant any other security interest in or over any of its rights or      obligations under this Patent Transfer Agreement without the prior written      consent of the other Party, except that the Buyer may transfer or assign,      in whole or in part, to one or more of its group companies from time to      time the right to purchase all or a portion of the Invention, the Patents,      the Patent Rights, the Background Documents and/or the Know-how, provided      that no such transfer will relieve the Buyer of its obligations, or affect      the rights of the Seller, under this Patent Transfer      Agreement. |
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|   | If      any provision of this Patent Transfer Agreement or the application of it      shall be declared or deemed void, invalid or unenforceable in whole or in      part for any reason, the remaining provisions of this Patent Transfer      Agreement shall continue in full force and effect. The Parties shall seek      to amend such void, invalid or unenforceable provisions and thereby this      Patent Transfer Agreement in order to give effect to, so far as is      possible, the spirit of this Patent Transfer Agreement and to achieve the      purposes intended by the Parties. |
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| 14.1 | This      Patent Transfer Agreement shall be governed by and in accordance with the      laws of Sweden. |
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| 14.2 | Any      dispute arising out of or in connection with this Patent Transfer      Agreement shall be finally settled by arbitration in accordance with the      rules of the Arbitration Institute of the Stockholm Chamber of Commerce      and the decision of the arbitrator shall be final and binding upon the      Parties both as to law and to fact, and shall not be appealable to any      court in any jurisdiction. The Parties shall share the expenses of the      arbitrator equally, unless the arbitrator determines that expenses shall      be otherwise assessed. |
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|   | Notwithstanding      the above, the Buyer shall have the right to initiate proceedings in any      competent court of law for the granting of interim measures, such as      injunctions or other actions to prevent, minimize or prohibit any      threatened or ongoing breach of this Patent Transfer      Agreement. |
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| 14.3 | The      place of arbitration shall be Göteborg, Sweden. The language to be used in      the arbitral proceedings shall be English. The arbitration shall be      conducted by one (1) arbitrator unless either Party requests that an      arbitral tribunal composed of three (3) arbitrators shall adjuciate the      dispute and such Party shall be solely responsible for the expenses of      theses arbitrators, unless theses arbitrators determine that expenses      shall be otherwise assessed. |
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| 14.4 | The      Parties undertake and agree that all arbitral proceedings conducted with      reference to this arbitration clause will be kept strictly confidential.      This confidentiality undertaking shall cover all information disclosed in      the course of such arbitral proceedings, as well as any decision or award      that is made or declared during the proceedings. Information covered by      this confidentiality undertaking may not, in any form, be disclosed to a      third party without the written consent of the other Party. This      notwithstanding, a Party shall not be prevented from disclosing such      information in order to safeguard in the best possible way his rights      vis-à-vis the other Party in connection with the dispute, or if the Party      is obliged to so disclose pursuant to statute, regulation, a decision by      an authority, a stock exchange contract or  similar. |
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| 14.5 | In      case this Patent Transfer Agreement or any part of it is assigned or      transferred to a third party, such third party shall automatically be      bound by the provisions of this arbitration  clause. |
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