----

| 1.     |   | Definitions and interpretation             |   | 1                                                                  |
|--------|--------|--------------------------------------------|--------|--------------------------------------------------------------------|
|   |   |                                       |   |                                                               |   |   |
|   |   | 1.1                                        |   | Definitions                                                        |   | 1 |
|   |   | 1.2                                        |   | Reasonable endeavours                                              |   | 8 |
|   |   | 1.3                                        |   | Knowledge and awareness of the Sellers                             |   | 8 |
|   |   | 1.4                                        |   | Business days                                                      |   | 9 |
|   |   | 1.5                                        |   | General rules of interpretation                                    |   | 9 |
|   |   |                                       |   |                                                               |   |   |
| 2.     |   | Conditions precedent                       |   | 10                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 2.1                                        |   | Conditions                                                         |   | 10 |
|   |   | 2.2                                        |   | Reasonable endeavours to satisfy Conditions                        |   | 11 |
|   |   | 2.3                                        |   | Notice in relation to satisfaction of Conditions                   |   | 12 |
|   |   | 2.4                                        |   | Waiver of Conditions                                               |   | 12 |
|   |   | 2.5                                        |   | Failure of Conditions                                              |   | 12 |
|   |   |                                       |   |                                                               |   |   |
| 3.     |   | Sale and purchase of Shares and SCRN Notes |   | 12                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 3.1                                        |   | Sale and purchase                                                  |   | 12 |
|   |   | 3.2                                        |   | Nominee shareholdings                                              |   | 12 |
|   |   |                                       |   |                                                               |   |   |
| 4.     |   | Purchase Price                             |   | 13                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 4.1                                        |   | Purchase Price                                                     |   | 13 |
|   |   | 4.2                                        |   | Initial Purchase Price                                             |   | 13 |
|   |   | 4.3                                        |   | Payment of Initial Purchase Price                                  |   | 13 |
|   |   | 4.4                                        |   | Adjustment for certain payments                                    |   | 13 |
|   |   |                                       |   |                                                               |   |   |
| 5.     |   | Period before Completion                   |   | 14                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 5.1                                        |   | Buyer access                                                       |   | 14 |
|   |   | 5.2                                        |   | Conduct of Business                                                |   | 14 |
|   |   | 5.3                                        |   | Restricted conduct                                                 |   | 14 |
|   |   | 5.4                                        |   | Consents to change in control                                      |   | 16 |
|   |   | 5.5                                        |   | Other discussions                                                  |   | 16 |
|   |   | 5.6                                        |   | Notification of breach                                             |   | 17 |
|   |   | 5.7                                        |   | Termination by Buyer                                               |   | 17 |
|   |   |                                       |   |                                                               |   |   |
| 6.     |   | Completion                                 |   | 17                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 6.1                                        |   | Time and place for Completion                                      |   | 17 |
|   |   | 6.2                                        |   | Provision of information before Completion                         |   | 17 |
|   |   | 6.3                                        |   | Sellers delivery obligations                                       |   | 18 |
|   |   | 6.4                                        |   | Delivery method                                                    |   | 18 |
|   |   | 6.5                                        |   | Board meetings                                                     |   | 19 |
|   |   | 6.6                                        |   | Buyer payment and delivery obligations                             |   | 19 |
|   |   | 6.7                                        |   | Interdependence of obligations at Completion                       |   | 19 |
|   |   | 6.8                                        |   | Notice to complete                                                 |   | 19 |
|   |   | 6.9                                        |   | Remedies for failure to comply with notice                         |   | 20 |
|   |   | 6.10                                       |   | Title and risk                                                     |   | 20 |
|   |   |                                       |   |                                                               |   |   |
| 7.     |   | Shareholders Agreement                     |   | 20                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 7.1                                        |   | Waiver of pre-emptive rights                                       |   | 20 |
|   |   | 7.2                                        |   | Termination and release of rights under the Shareholders Agreement |   | 20 |
|   |   | 7.3                                        |   | Bar to proceedings                                                 |   | 20 |
|   |   |                                       |   |                                                               |   |   |
| 8.     |   | Earn out                                   |   | 21                                                                 |
|   |   |                                       |   |                                                               |   |   |
|   |   | 8.1                                        |   | Additional definitions                                             |   | 21 |

----

|   |   | 8.2                                    |   | Earn Out Amount                                                       |   | 21     |
|--------|--------|----------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|
|   |   | 8.3                                    |   | Earn out protections                                                  |   | 22     |
|   |   | 8.4                                    |   | Inconsistent steps                                                    |   | 22     |
|   |   |                                   |   |                                                                  |   |   |
| 9.     |   | Escrow Account                         |   | 23                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 9.1                                    |   | Establishment of Escrow Account                                       |   | 23     |
|   |   | 9.2                                    |   | Operation of Escrow Account                                           |   | 23     |
|   |   | 9.3                                    |   | Payments in respect of Resolved Claims before Escrow Termination Date |   | 23     |
|   |   | 9.4                                    |   | No Unresolved Claims on Escrow Termination Date                       |   | 23     |
|   |   | 9.5                                    |   | Unresolved Claims on Escrow Termination Date                          |   | 23     |
|   |   | 9.6                                    |   | Interest                                                              |   | 24     |
|   |   | 9.7                                    |   | No limitation on rights to recover                                    |   | 24     |
|   |   | 9.8                                    |   | Legends on Buyer Shares                                               |   | 24     |
|   |   |                                   |   |                                                                  |   |   |
| 10.    |   | Repayment of indebtedness              |   | 24                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 10.1                                   |   | Indebtedness owed to the Group Companies                              |   | 24     |
|   |   | 10.2                                   |   | Indebtedness owed to any Seller                                       |   | 25     |
|   |   |                                   |   |                                                                  |   |   |
| 11.    |   | Restraint                              |   | 25                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 11.1                                   |   | Non-competition                                                       |   | 25     |
|   |   | 11.2                                   |   | Non-solicitation                                                      |   | 25     |
|   |   | 11.3                                   |   | Restraint period                                                      |   | 25     |
|   |   | 11.4                                   |   | Restraint area                                                        |   | 25     |
|   |   | 11.5                                   |   | Separate restrictions                                                 |   | 26     |
|   |   | 11.6                                   |   | Exceptions                                                            |   | 26     |
|   |   | 11.7                                   |   | Assignment                                                            |   | 26     |
|   |   | 11.8                                   |   | Acknowledgement                                                       |   | 26     |
|   |   | 11.9                                   |   | Proceedings                                                           |   | 26     |
|   |   |                                   |   |                                                                  |   |   |
| 12.    |   | Other obligations following Completion |   | 27                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 12.1                                   |   | Power of attorney                                                     |   | 27     |
|   |   | 12.2                                   |   | Access to Records                                                     |   | 27     |
|   |   | 12.3                                   |   | Access to records of the Sellers                                      |   | 28     |
|   |   | 12.4                                   |   | Extension of claims reporting period                                  |   | 28     |
|   |   | 12.5                                   |   | Consents to change in control                                         |   | 28     |
|   |   | 12.6                                   |   | Additional Investment by Buyer                                        |   | 28     |
|   |   | 12.7                                   |   | Section 338 Election                                                  |   | 29     |
|   |   |                                   |   |                                                                  |   |   |
| 13.    |   | Warranties                             |   | 29                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 13.1                                   |   | Warranties                                                            |   | 29     |
|   |   | 13.2                                   |   | Warranties separate                                                   |   | 29     |
|   |   | 13.3                                   |   | Survival                                                              |   | 29     |
|   |   | 13.4                                   |   | Reliance                                                              |   | 29     |
|   |   | 13.5                                   |   | Warranties not limited by inquiries or knowledge                      |   | 29     |
|   |   | 13.6                                   |   | Indemnity for breach of Warranty                                      |   | 30     |
|   |   | 13.7                                   |   | Seller to notify of potential breaches                                |   | 30     |
|   |   | 13.8                                   |   | Notification of Warranty Claims                                       |   | 30     |
|   |   | 13.9                                   |   | Termination for breach of Warranty                                    |   | 30     |
|   |   | 13.10                                  |   | No action against Buyer Group Member or officers and employees        |   | 30     |
|   |   | 13.11                                  |   | Buyer Warranties                                                      |   | 31     |
|   |   |                                   |   |                                                                  |   |   |
| 14.    |   | Limitations of liability               |   | 31                                                                    |
|   |   |                                   |   |                                                                  |   |   |
|   |   | 14.1                                   |   | Disclosure                                                            |   | 31     |
|   |   | 14.2                                   |   | Fair disclosure                                                       |   | 31     |

----

|   |   | 14.3                       |   | Time limits for Warranty Claims                          |   | 31     |
|--------|--------|----------------------------|--------|----------------------------------------------------------|--------|--------|
|   |   | 14.4                       |   | Withdrawal of Warranty Claim                             |   | 31     |
|   |   | 14.5                       |   | Minimum amount for Warranty Claims                       |   | 32     |
|   |   | 14.6                       |   | Threshold for Warranty Claims                            |   | 32     |
|   |   | 14.7                       |   | Other limitations of liability                           |   | 32     |
|   |   | 14.8                       |   | Maximum recovery                                         |   | 32     |
|   |   | 14.9                       |   | Reimbursement of payments subsequently received          |   | 32     |
|   |   | 14.10                      |   | Circumstances where limitations not to apply             |   | 33     |
|   |   |                       |   |                                                     |   |   |
| 15.    |   | Third Party Claims         |   | 33                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 15.1                       |   | Notice                                                   |   | 33     |
|   |   | 15.2                       |   | Obligations after notice given                           |   | 33     |
|   |   |                       |   |                                                     |   |   |
| 16.    |   | Tax                        |   | 34                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 16.1                       |   | Tax indemnity                                            |   | 34     |
|   |   | 16.2                       |   | Limitations                                              |   | 34     |
|   |   | 16.3                       |   | Time for payment                                         |   | 35     |
|   |   | 16.4                       |   | Late payments                                            |   | 35     |
|   |   | 16.5                       |   | Refunds                                                  |   | 35     |
|   |   |                       |   |                                                     |   |   |
| 17.    |   | Tax Assessments            |   | 35                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 17.1                       |   | Notice                                                   |   | 35     |
|   |   | 17.2                       |   | Obligations after notice given                           |   | 35     |
|   |   | 17.3                       |   | Sellers' response to notice                              |   | 36     |
|   |   | 17.4                       |   | Effect of Sellers' notice                                |   | 36     |
|   |   | 17.5                       |   | Buyer's rights to settle                                 |   | 36     |
|   |   | 17.6                       |   | Costs and expenses                                       |   | 37     |
|   |   |                       |   |                                                     |   |   |
| 18.    |   | Tax returns and tax audits |   | 37                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 18.1                       |   | Tax returns relating to periods ending before Completion |   | 37     |
|   |   | 18.2                       |   | Tax returns relating to periods ending after Completion  |   | 37     |
|   |   | 18.3                       |   | Assistance from Sellers                                  |   | 37     |
|   |   | 18.4                       |   | Tax audits                                               |   | 37     |
|   |   |                       |   |                                                     |   |   |
| 19.    |   | Confidentiality            |   | 37                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 19.1                       |   | No announcement or other disclosure of transaction       |   | 37     |
|   |   | 19.2                       |   | Permitted disclosure                                     |   | 38     |
|   |   | 19.3                       |   | No use or disclosure of Confidential Information         |   | 39     |
|   |   |                       |   |                                                     |   |   |
| 20.    |   | Termination                |   | 39                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 20.1                       |   | Termination by Buyer                                     |   | 39     |
|   |   | 20.2                       |   | Termination by Sellers                                   |   | 39     |
|   |   | 20.3                       |   | Effect of termination                                    |   | 39     |
|   |   |                       |   |                                                     |   |   |
| 21.    |   | Payments                   |   | 39                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 21.1                       |   | Direction                                                |   | 39     |
|   |   | 21.2                       |   | Method of payment                                        |   | 39     |
|   |   | 21.3                       |   | No deduction                                             |   | 40     |
|   |   | 21.4                       |   | Default interest                                         |   | 40     |
|   |   |                       |   |                                                     |   |   |
| 22.    |   | GST                        |   | 40                                                       |
|   |   |                       |   |                                                     |   |   |
|   |   | 22.1                       |   | Interpretation                                           |   | 40     |
|   |   | 22.2                       |   | Reimbursements and similar payments                      |   | 40     |
|   |   | 22.3                       |   | GST payable                                              |   | 40     |
|   |   | 22.4                       |   | Variation to GST payable                                 |   | 41     |

----

| 23.    |   | Notices                        |   | 41                                                       |
|--------|--------|--------------------------------|--------|----------------------------------------------------------|
|   |   |                           |   |                                                     |   |   |
|   |   | 23.1                           |   | Service agent for all Sellers and the SCRN Notes Sellers |   | 41 |
|   |   | 23.2                           |   | How notice to be given                                   |   | 41 |
|   |   | 23.3                           |   | When notice taken to be received                         |   | 42 |
|   |   |                           |   |                                                     |   |   |
| 24.    |   | Entire agreement               |   | 43                                                       |
|   |   |                           |   |                                                     |   |   |
| 25.    |   | Proportionate liability        |   | 43                                                       |
|   |   |                           |   |                                                     |   |   |
|   |   | 25.1                           |   | Exclusion of proportionate liability provisions          |   | 43 |
|   |   | 25.2                           |   | Sellers not to apply Proportionate Liability Provisions  |   | 43 |
|   |   |                           |   |                                                     |   |   |
| 26.    |   | General                        |   | 44                                                       |
|   |   |                           |   |                                                     |   |   |
|   |   | 26.1                           |   | Amendments                                               |   | 44 |
|   |   | 26.2                           |   | Assignment                                               |   | 44 |
|   |   | 26.3                           |   | Consents                                                 |   | 44 |
|   |   | 26.4                           |   | Costs                                                    |   | 44 |
|   |   | 26.5                           |   | Counterparts                                             |   | 44 |
|   |   | 26.6                           |   | Further acts and documents                               |   | 44 |
|   |   | 26.7                           |   | No merger                                                |   | 44 |
|   |   | 26.8                           |   | Severance                                                |   | 44 |
|   |   | 26.9                           |   | Stamp duties                                             |   | 44 |
|   |   | 26.10                          |   | Waivers                                                  |   | 45 |
|   |   | 26.11                          |   | Signatures by fax or other electronic means              |   | 45 |
|   |   |                           |   |                                                     |   |   |
| 27.    |   | Governing law and jurisdiction |   | 45                                                       |
|   |   |                           |   |                                                     |   |   |
|   |   | 27.1                           |   | Governing law                                            |   | 45 |
|   |   | 27.2                           |   | Jurisdiction                                             |   | 45 |

| Schedule 1 Sellers, SCRN Notes Sellers, Shares and SCRN Notes     | 52     |
|-------------------------------------------------------------------|--------|
|                                                              |   |
| Schedule 1A Currency Conversion                                   | 53     |
|                                                              |   |
| Schedule 2 Details of the Company                                 | 54     |
|                                                              |   |
| Schedule 3 Details of the Subsidiaries                            | 55     |
|                                                              |   |
| Schedule 4 Real Property                                          | 56     |
|                                                              |   |
| Schedule 5 Intellectual Property, Business Names and Domain Names | 57     |
|                                                              |   |
| Schedule 6 Encumbrances and Guarantees                            | 59     |
|                                                              |   |
| Schedule 7 Key Contracts                                          | 60     |
|                                                              |   |
| Schedule 8 Warranties                                             | 63     |
|                                                              |   |
| Schedule 9 Buyer Warranties                                       | 88     |
|                                                              |   |
| Attachment 1 Last Accounts and Base Balance Sheet                 | 89     |
|                                                              |   |
| Attachment 2 Disclosure Letter                                    | 90     |
|                                                              |   |
| Attachment 3 Index of Due Diligence Materials                     | 91     |
|                                                              |   |
| Attachment 4 Due diligence questions and answers                  | 92     |
|                                                              |   |
| Attachment 5 Form of resignation letter                           | 93     |
|                                                              |   |
| Attachment 6 Escrow Agreement                                     | 94     |

----

| Parties | The parties set out in Schedule 1(Sellers and SCRN Notes Sellers) |
|---------|------------------------------------------------------------------------|

| A. | The Sellers own the Shares, being 69.86% of the issued shares of the Company, in the amounts and percentages set out in Schedule 1.  The SCRN Notes Sellers own the SCRN Notes in the principal amounts set out in Schedule 1. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The Sellers wish to sell the Shares and the Buyer wishes to buy the Shares on the terms and conditions of this agreement.  The SCRN Notes Sellers wish to sell the SCRN Notes and the Buyer wishes to buy the SCRN Notes on the terms and conditions of this agreement. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1. | Definitions and interpretation |
|----|--------------------------------|

| 1.1 | Definitions |
|-----|-------------|

|   | (a) | the requirements of the Corporations Act about the preparation and contents of financial reports; |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (b) | the accounting standards approved under the Corporations Act; and |
|--------|-----|-------------------------------------------------------------------|

|   | (c) | generally accepted accounting principles, policies, practices and procedures in Australia or Canada, as applicable, to the extent not inconsistent with the accounting standards described in paragraph (b). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | any provision of a Transaction Document; |
|--------|-----|------------------------------------------|

|   | (b) | the Shares or their sale; or |
|--------|-----|------------------------------|

|   | (c)  | any other matter connected with any Group Company, |
|--------|-----------|----------------------------------------------------|

|   | (a) | all information relating to the operations or affairs of any Group Company including all financial or accounting information, all customer names and lists, terms and conditions of supply, sales records, marketing analysis and research and reports and other marketing information and all trade secrets, know how, operating procedures and technical information; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all other information treated by any Group Company as confidential or capable of being protected at law or equity as confidential information or the disclosure of which might cause loss or damage to or otherwise adversely affect any Group Company, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the written information and documents provided to the Buyer by the Sellers, the Group Companies and their respective Representatives before the date of this agreement, an index of which is attached as Attachment 3; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the written questions raised by the Buyer in the due diligence process and the written responses given to those questions by the Sellers, the Group Companies and their respective Representatives before the date of this agreement, copies of which are attached as Attachment 4; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Disclosure Letter. |
|--------|-----|------------------------|

|   | (a) | land, water, air, atmosphere, climate, living organisms and other matter, things made or altered by humans, ecosystems and social groupings; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the social, economic and cultural aspects of a thing specified in paragraph (a); and |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (c) | the interaction of any 2 or more things specified in paragraphs (a) and (b). |
|--------|-----|----------------------------------------------------------------------------------------|

----

|   | (a) | patents, designs, trademarks and service marks (whether registered or unregistered) and any applications for, or rights to apply for, registration of any patent, design, trade mark or service mark; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | copyright (including copyright in software, websites, databases and advertising and other promotional materials); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (c) | all rights to have information (including trade secrets, know-how, operating procedures and technical information) kept confidential; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | all other rights or protections having similar effect anywhere in the world. |
|--------|-----|------------------------------------------------------------------------------|

|   | (a) | requires or may require payments to or by that Group Company in excess of $10,000 in aggregate; |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (b) | cannot be performed in full within 12 months from the date it was entered into or terminated by that Group Company on 3 months notice or less; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | might otherwise reasonably be expected to be material to the operation or profitability of that Group Company. |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

----

|   | (a) | statutory books and registers, minute books, books of account, trading and financial records, employee records, tax returns and related correspondence; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | customer lists, supplier lists, price lists, pricing models and sales and marketing materials; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (c) | title deeds and other documents of title; and |
|--------|-----|-----------------------------------------------|

|   | (d) | originals and copies of all contracts and Authorisations. |
|--------|-----|-----------------------------------------------------------|

|   | (a) | any government or local authority and any department, minister or agency of any government; and |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (b) | any other authority, agency, commission or similar entity having powers or jurisdiction under any law or regulation or the listing rules of any recognised stock or securities exchange. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | a related body corporate of that corporation within the meaning of section 50 of the Corporations Act; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (b) | a trustee of any unit trust in relation to which that corporation, or any corporation referred to in paragraph (a), directly or indirectly: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | controls the right to appoint the trustee; or |
|--------|-----|-----------------------------------------------|

|   | (ii) | is in a position to control the casting of, more than one half of the maximum number of votes that might be cast at a meeting of holders of units in the trust; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | holds or is in a position to control the disposal of more than one half of the issued units of the trust. |
|--------|-------|-----------------------------------------------------------------------------------------------------------|

|   | (a) | the Buyer withdrawing the Claim or Tax Claim; |
|--------|-----|-----------------------------------------------|

|   | (b) | the Sellers and the Buyer agreeing in writing the amount to be paid in settlement of the Claim or Tax Claim; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (c) | a court of competent jurisdiction making a final award of damages, or a determination that no damages are payable, in respect of the Claim or Tax Claim. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | this agreement; |
|--------|-----|-----------------|

|   | (b) | the Escrow Agreement; |
|--------|-----|-----------------------|

|   | (c) | the Deed Poll of Restraint executed by each of the Restricted Persons; |
|--------|-----|------------------------------------------------------------------------|

|   | (d) | the Share Transfer Forms and transfers of the SCRN Notes executed by each Seller in favour of the Buyer; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (e) | any other document agreed by the parties to be a Transaction Document for the purposes of this agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

| 1.2 | Reasonable endeavours |
|-----|-----------------------|

|   | (a) | to pay any money or to provide any financial compensation, valuable consideration or any other incentive to or for the benefit of any person except for payment of any applicable fee for the lodgement or filing of any relevant application with any Regulatory Authority; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to commence any legal action or proceeding against any person, |
|--------|-----|----------------------------------------------------------------|

| 1.3 | Knowledge and awareness of the Sellers |
|-----|----------------------------------------|

|   | (a) | all facts of which the Sellers or any director, officer or senior manager of the Sellers is actually aware at the relevant time; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all facts of which the Sellers or any director, officer or senior manager of the Sellers would have been aware at the relevant time had that person made due and careful enquiries of all people who might reasonably be expected to have knowledge or awareness of relevant facts. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.4 | Business days |
|-----|---------------|

| 1.5 | General rules of interpretation |
|-----|---------------------------------|

|   | (a) | an obligation or a liability assumed by 2 or more persons binds them jointly and severally and a right conferred on 2 or more persons benefits them jointly and severally; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a word importing the singular includes the plural and vice versa, and a word of any gender includes the corresponding words of any other gender; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the word including or any other form of that word is not a word of limitation; |
|--------|-----|--------------------------------------------------------------------------------|

|   | (d) | if a word or phrase is given a defined meaning, any other part of speech or grammatical form of that word or phrase has a corresponding meaning; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | a reference to a person includes an individual, the estate of an individual, a corporation, an authority, an association or parties in a joint venture, a partnership and a trust; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | a reference to a party includes that party's executors, administrators, successors and permitted assigns, including persons taking by way of novation and, in the case of a trustee, includes any substituted or additional trustee; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | a reference to a document (including this agreement) is to that document as varied, novated, ratified or replaced from time to time; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | a reference to a party, clause, schedule, exhibit, attachment or annexure is a reference to a party, clause, schedule, exhibit, attachment or annexure to or of this agreement, and a reference to this agreement includes all schedules, exhibits, attachments and annexures to it; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a reference to an agency or body if that agency or body ceases to exist or is reconstituted, renamed or replaced or has its powers or function removed (obsolete body), means the agency or body which performs most closely the functions of the obsolete body; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | a reference to a statute includes any regulations or other instruments made under it (delegated legislation) and a reference to a statute or delegated legislation or a provision of either includes consolidations, amendments, re-enactments and replacements; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | a reference to $ or dollar is to United States Dollars and any conversion of United States Dollars to or from Australian Dollars or Canadian Dollars will use the conversion rate then in effect on 16 October 2009, as set out in Schedule 1A;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | this agreement must not be construed adversely to a party just because that party prepared it or caused it to be prepared. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

----

----

| 2. | Conditions precedent |
|----|----------------------|

| 2.1 | Conditions |
|-----|------------|

| Condition |   | Right to waive                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (a)  |   | satisfactory completion of the Buyer's due diligence as determined by the Buyer in its sole discretion;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (b)  |   | all approvals of any Regulatory Authority which the Sellers and the Buyer agree are necessary or desirable to implement the transactions contemplated by this agreement have been obtained either unconditionally or on conditions satisfactory to the Buyer acting reasonably and have not been withdrawn or revoked;                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (c)  |   | no temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction, no preliminary or final decision, determination, or order issued by any Regulatory Authority and no other legal restraint preventing any of the transactions contemplated by this agreement is in effect;                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (d)  |   | no Material Adverse Change has occurred;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (e)  |   | a resolution of the shareholders of any Seller that is not a natural person has been passed at a duly convened general meeting of that Seller to approve the transactions contemplated by this agreement and entry into and performance of each of the Transaction Documents by the relevant Seller;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (f)  |   | the Buyer has received a certified copy of each consent required under each Lease and each Key Contract to the acquisition of the Shares by the Buyer and the change of control of the Company resulting from that acquisition of the Shares each of which is unconditional or subject only to conditions reasonably acceptable to the Buyer; and                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Buyer |
|      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
| (g)  |   | the Company and the relevant counterparties have executed binding agreements to reflect the following: (i) the royalty payment percentage payable by the Company to Kevin Anderson and Doug McKay will be reduced from 12.5% to 6% and the Company will issue to Kevin Anderson and Doug McKay or their designee 400,000 Shares, and (ii) the debt (inclusive of principal and accrued and unpaid interest) of AUD $1,400,000 (US $1,287,076) owed by the Company to Keenan Campbell will be reduced to AUD $700,000 (US $643,538) of which amount AUD $645,613 (US $593,538) will be payable by the Company to Keenan Campbell on the Completion Date (such debt having been paid down with the payment of AUD $54,387 (US $50,000) earlier paid by the Company to Keenan Campbell. |   | Buyer |

----

| 2.2 | Reasonable endeavours to satisfy Conditions |
|-----|---------------------------------------------|

|   | (a) | the Buyer must as soon as practicable: |
|--------|-----|----------------------------------------|

|   | (i) | prepare and lodge each notice or application required to be given or made to the relevant Regulatory Authority for the purposes of procuring the satisfaction of the Conditions set out in clause 2.1(b); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | provide to the Sellers all information reasonably required by the Sellers to enable the Sellers to prepare any document referred to in clauses 2.2(b)(i) and 2.2(b)(iii) or otherwise for the purposes of procuring the satisfaction of any Condition; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Sellers must as soon as practicable: |
|--------|-----|------------------------------------------|

|   | (i) | prepare any notice of meeting and related documentation for the purposes of procuring the satisfaction of the Condition set out in clause 2.1(e) and allow the Buyer a reasonable opportunity to review and comment on the documents prior to distribution to members; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | amend any factual inaccuracy, and consider in good faith any other comments notified to it by the Buyer following review of the documents by the Buyer and must as soon as practicable finalise and dispatch those documents to the Sellers' shareholders; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | prepare and dispatch notices and requests for consent to each party from whom consent is required under each Lease and each Key Contract for the purposes of procuring the satisfaction of the Condition set out in clause 2.1(f); and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | provide to the Buyer all information reasonably required by the Buyer to enable the Buyer to prepare any document for the purposes of procuring the satisfaction of any Condition; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | each party must otherwise co-operate with, and comply with all reasonable requests of the other party for the purposes of procuring the satisfaction of any Condition and must not take any action that will or is likely to hinder or prevent the satisfaction of any Condition; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | each party must keep the other party informed of any fact, matter or circumstance of which it becomes aware that may result in a Condition not being satisfied in accordance with its terms. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | Notice in relation to satisfaction of Conditions |
|-----|--------------------------------------------------|

| 2.4 | Waiver of Conditions |
|-----|----------------------|

|   | (a) | if one party is specified in the second column of the table in clause 2.1 opposite that  Condition, by that party by notice to the other party; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if more than one party is specified in the second column of the table in clause 2.1 opposite that Condition, by written agreement between all of those parties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Failure of Conditions |
|-----|-----------------------|

|   | (a) | if any Condition has become incapable of satisfaction and that Condition has not been waived in accordance with clause 2.4 within 5 Business Days after the occurrence of the fact, matter or circumstance which caused that Condition to become incapable of satisfaction; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if any Condition has not been satisfied or waived in accordance with clause 2.4 before the End Date; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (c) | if any Condition, having been satisfied on or before the End Date, ceases to be satisfied before Completion, |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

----

| 3. | Sale and purchase of Shares and SCRN Notes |
|----|--------------------------------------------|

| 3.1 | Sale and purchase |
|-----|-------------------|

| 3.2 | Nominee shareholdings |
|-----|-----------------------|

----

----

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

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

| 4.2 | Initial Purchase Price |
|-----|------------------------|

|   | (a) | The initial purchase price (Initial Purchase Price) payable for the Shares and SCRN Notes is the sum of (i) the dollar amount of the principal and unpaid accrued interest owed by the Company to the SCRN Notes Sellers as of March 11, 2010, the “SCRN Debt” ($1,763,555.44) and (ii) $4,383,720 less the dollar amount of the principal and unpaid accrued interest owed by the Company as of March 11, 2010 to the Buyer ($868,977.41) and the SCRN Debt multiplied by the Ownership Fraction, with the Initial Purchase Price being $2,986,900.09. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The Initial Purchase Price ($2,986,900.09) is to be allocated between the Shares and the SCRN Notes as follows: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (i) | $1,763,555.44 is payable for the SCRN Notes; and |
|--------|-----|--------------------------------------------------|

|   | (ii) | $1,223,344.65 is payable for the Shares. |
|--------|------|------------------------------------------|

| 4.3 | Payment of Initial Purchase Price |
|-----|-----------------------------------|

|   | (a) | the Buyer must pay the Completion Payment as to one-half of the amount of the Initial Purchase Price for the SCRN Notes ($881,777.72) to the relevant SCRN Notes Sellers in accordance with clause 6.6(a) and clause 21; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Buyer must apply the Initial Purchase Price for the Shares ($1,223,344.65) and the remaining one-half of the Initial Purchase Price for the SCRN Notes ($881,777.72) to the delivery of Buyer Shares, and the number of Buyer Shares to be so delivered will be determined and based on a per share price of $5.91 (being the volume weighted average price of the Buyer’s common stock on the Nasdaq Global Market during the 20 trading sessions that ended on October 16, 2009).  The Buyer Shares constituting payment for the Shares held by the Sellers who are not SCRN Notes Sellers must be delivered in accordance with clause 6.6(c).  The Buyer Shares constituting payment for one-half the SCRN Notes and the Shares held by SCRN Notes Sellers must be delivered into the Escrow Account, to be held by the Escrow Agent on behalf of the relevant Sellers and SCRN Notes Sellers inaccordance with the Escrow Agreement, and to be dealt with in accordance with clause 9. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Adjustment for certain payments |
|-----|---------------------------------|

|   | (a) | by the Sellers to a Buyer Group Member for a Warranty Claim or under clause 16, will be treated as a pro-rata reduction in the purchase price of each Share and SCRN Note; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | by the Buyer to the Sellers under clause 14.9 or clause 16.5, will be treated as a pro-rata increase in the purchase price of each Share and SCRN Note. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 5. | Period before Completion |
|----|--------------------------|

| 5.1 | Buyer access |
|-----|--------------|

|   | (a) | the Assets, Properties and Records; and |
|--------|-----|-----------------------------------------|

|   | (b) | all officers and employees of any Group Company and the Auditor during business hours. |
|--------|-----|----------------------------------------------------------------------------------------|

| 5.2 | Conduct of Business |
|-----|---------------------|

|   | (a) | conducts the Business in the ordinary and usual course consistent with its usual business practices and does not make any significant change to the nature or scale of any activity comprised in the Business; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | conducts the Business in accordance with all applicable laws and regulations including, but not limited to, making all necessary income tax, payroll tax, goods and services tax and other tax payments and tax filings in a timely manner in all jurisdictions in which the Company or its subsidiaries operate; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | maintains and complies with the terms of all Authorisations necessary to own and operate the Assets, occupy the Properties and conduct the Business; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | keeps and maintains proper records of all its dealings and transactions relating to the Business; |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (e) | pays all amounts owing to trade or other creditors of each Group Company in accordance with applicable payment terms; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (f) | protects and maintains each of its physical assets and intellectual property and must maintain appropriate and adequate insurance in respect of each of those assets which are insurable; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | maintains all Authorisations required to carry on the Business; and |
|--------|-----|---------------------------------------------------------------------|

|   | (h) | consults with the Buyer in relation to the preparation and approval of any budget or business plan relating to the Business. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Restricted conduct |
|-----|--------------------|

|   | (a) | issue or allot any share capital or options, securities or other rights convertible into share capital; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (b) | buy back or redeem any shares or otherwise reduce its share capital or provide financial assistance for the acquisition of its own shares or shares in its holding company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | declare or pay any dividends or other distributions; |
|--------|-----|------------------------------------------------------|

|   | (d) | alter the provisions of its constitution; |
|--------|-----|-------------------------------------------|

|   | (e) | dispose of or create any Encumbrance over, or declare itself the trustee of, any asset except in the ordinary course of business; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | incur or enter into commitments to incur capital expenditure in excess of $5,000 for any individual item or $10,000 in aggregate; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | enter into any Material Contract; |
|--------|-----|-----------------------------------|

|   | (h) | terminate or vary the terms of, or do or omit to do anything which might result in the termination or variation of, any Material Contract or Key Contract; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | do or omit to do anything which might result in the variation, termination, suspension, revocation or non-renewal of any Authorisation held by that Group Company which is material to the operation of the Business; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | incur any indebtedness except for borrowing under its existing bank facilities not exceeding $5,000 or indebtedness to trade creditors incurred in the ordinary course of business; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | exceed any limitation on indebtedness imposed by, or breach any other covenant given in favour of, any lender or other financier to that Group Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | enter into any new bank facilities or other financial accommodation; |
|--------|-----|----------------------------------------------------------------------|

|   | (m) | enter into any Guarantee or indemnity on behalf of any person or provide security for the obligations of any person except in the ordinary course of business; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | except in the ordinary course of business or as required by law or by the terms of any Transitional Instrument, or Enterprise Agreement or Modern Award or other existing terms of employment: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | engage any person for employment whose annual remuneration (inclusive of superannuation) exceeds $50,000; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (ii) | terminate the employment of any employee whose annual remuneration (inclusive of superannuation) exceeds $50,000; |
|--------|------|-------------------------------------------------------------------------------------------------------------------|

|   | (iii) | increase or make any representation about an increase in the annual remuneration of any employee or create or increase any entitlement for any employee to receive a bonus or other payment in addition to annual remuneration; or |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | otherwise vary the terms of employment or engagement of any employee; |
|--------|------|-----------------------------------------------------------------------|

|   | (o) | pay any retirement allowance or superannuation benefit to any director or employee, except for any payment required by law or by the terms of any Transitional Instrument, or Enterprise Agreement or Modern Award, service contract or retirement or redundancy policy disclosed to the Buyer in the Due Diligence Materials; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | enter into any profit sharing or profit or equity participation arrangement with any employee, agent, distributor, representative, director or other person; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (q) | revalue any of its assets; |
|--------|-----|----------------------------|

|   | (r) | change any accounting policies or practices unless such change is required by law; |
|--------|-----|------------------------------------------------------------------------------------|

|   | (s) | make any material Tax election or settle or compromise any material liability relating to Tax; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (t) | commence any litigation, mediation or arbitration or any other form of dispute resolution the costs of which are likely to exceed $5,000 other than as claimant for the collection of debts not exceeding $20,000 in the ordinary course of business; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | settle or compromise any claims, demands or proceedings for an amount in excess of $5,000 or take steps to do so; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (v) | terminate or permit the termination or amendment of, or fail to renew on its expiry, any insurance policy held by that Group Company as at the date of this agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | destroy or otherwise dispose of any Records; or |
|--------|-----|-------------------------------------------------|

|   | (x) | authorise, or agree conditionally or otherwise to do, any of the things referred to in this clause 5.3. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

| 5.4 | Consents to change in control |
|-----|-------------------------------|

|   | (a) | in relation to each Lease and Material Contract under which a consent is required jointly approach the relevant landlord or counterparty to request that consent; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | provide all information reasonably required by the relevant landlord or counterparty or any mortgagee of the relevant landlord in connection with the request for consent. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Other discussions |
|-----|-------------------|

|   | (a) | must not and must ensure that its Representatives do not without the prior written consent of the Buyer solicit or respond to any other proposal in relation to the Shares, the SCRN Notes or the assets of the Business; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | must as soon as practicable after the date of this agreement exercise all rights available to it to ensure that any Confidential Information that has been provided to any other party in relation to the potential sale of the Shares or the assets of the Business is returned to the Sellers or destroyed by the person holding such Confidential Information. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.6 | Notification of breach |
|-----|------------------------|

| 5.7 | Termination by Buyer |
|-----|----------------------|

|   | (a) | any of the Sellers is in breach of clause 5.2 or clause 5.3 and such breach has or is reasonably likely to give rise to a Material Adverse Change; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a Material Adverse Change occurs, |
|--------|-----|-----------------------------------|

|   | (c) | by notice to the Sellers at any time before Completion terminate this agreement; or |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (d) | proceed to Completion in which case the Buyer will be entitled to make a Claim in respect of any breach referred to in clause 5.7(a) or any other breach of this agreement (including a breach of the Warranties) that contributed to the Material Adverse Change. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | Completion |
|----|------------|

| 6.1 | Time and place for Completion |
|-----|-------------------------------|

|   | (a) | the date which is 5 Business Days after all of the Conditions have been satisfied or waived in accordance with clause 2.4; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | approval of all terms and conditions of this agreement by the shareholders and the directors of the Company and the directors of the Buyer, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Provision of information before Completion |
|-----|--------------------------------------------|

|   | (a) | the names of any director, secretary and public officer of each Group Company that the Buyer does not require to resign on Completion; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the names of each person that the Buyer requires to be appointed as a director, secretary or public officer of any Group Company together with a signed consent to act in that capacity; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the address of any new registered office that the Buyer requires any Group Company to adopt. |
|--------|-----|----------------------------------------------------------------------------------------------|

----

| 6.3 | Sellers delivery obligations |
|-----|------------------------------|

|   | (a) | completed transfers of the Shares in favour of the Buyer as transferee duly executed by the registered holder as transferor and share certificates, or duly executed indemnities for lost share certificates, in respect of all Shares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | completed transfers of the SCRN Notes in favour of the Buyer as transferee duly executed and endorsed by the respective SCRN Notes Sellers and delivery of the original SCRN Notes, or duly executed indemnities for lost SCRN Notes, in respect of all SCRN Notes; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all statutory registers, minute books and other record books, financial records, including asset registers, management accounts, budgets, ledgers, journals, books of account and other Records of each Group Company and the common seal, if any, of each Group Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | possession of each Property, all keys to each Property and all title documents and other documents held by each Group Company in connection with the ownership of each Property; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | all insurance policies and certificates of currency in relation to all insurances held by each Group Company; |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (f) | the written resignation in the form attached as Attachment 5 of each director, secretary and public officer of each Group Company except for any director, secretary or public officer notified by the Buyer under clause 6.2(a) and who has agreed to remain in office; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | documentation evidencing to the satisfaction of the Buyer the repayment of all indebtedness owing from any Seller or any person connected with or associated with any Seller to any Group Company procured in accordance with clause 10.1. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | the written consent and waiver of any person holding any pre-emptive right or similar right in relation to the sale or transfer of the Shares under this agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | duly signed minutes of each meeting convened under clause 6.5; |
|--------|-----|---------------------------------------------------------------------|

|   | (j) | an original counterpart of each other Transaction Document duly executed by each of the Sellers; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (k) | an original counterpart of the Tax Release Deed duly executed by the Sellers and each Group Company and documentation evidencing to the satisfaction of the Buyer the payment by each Group Company by Completion of any Tax that is due and payable by a Group Company to the relevant Tax Authority; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | copies of the executed legal documents used to satisfy the conditions set forth in clauses 2.1(e), and 2.1(g). |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

| 6.4 | Delivery method |
|-----|-----------------|

----

| 6.5 | Board meetings |
|-----|----------------|

|   | (a) | in the case of the Company to approve the registration of the Buyer as the holder of the Shares; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (b) | to record the resignation of each director, secretary and public officer of each Group Company whose resignation effective from Completion is to be delivered under clause 6.3(f); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | to appoint as directors, secretaries and public officers of each Group Company each person notified under clause 6.2(b); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to change the registered office of each Group Company to the address notified under clause 6.2(c); |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (e) | to revoke each existing authority to operate any bank account of each Group Company and approve such new authority as may be provided by the Buyer to the Sellers before the relevant board meeting; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | to revoke any existing powers of attorney granted by each Group Company. |
|--------|-----|--------------------------------------------------------------------------|

| 6.6 | Buyer payment and delivery obligations |
|-----|----------------------------------------|

|   | (a) | pay the Completion Payment to the Sellers; |
|--------|-----|--------------------------------------------|

|   | (b) | deliver the Buyer Shares constituting the Escrow Amount into the Escrow Account; |
|--------|-----|----------------------------------------------------------------------------------|

|   | (c) | deliver the Buyer Shares constituting payment for the Shares held by those Sellers who are not SCRN Notes Sellers; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (d) | deliver to the Sellers an original counterpart of each other Transaction Document duly executed by the Buyer and deliver to SCRN Notes Sellers an original counterpart of each other Transaction document relating to the SCRN Notes duly executed by Buyer. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7 | Interdependence of obligations at Completion |
|-----|----------------------------------------------|

| 6.8 | Notice to complete |
|-----|--------------------|

|   | (a) | the Buyer (where the Defaulting Party is any of the Sellers); or |
|--------|-----|------------------------------------------------------------------|

|   | (b) | the Sellers (where the Defaulting Party is the Buyer), |
|--------|-----|--------------------------------------------------------|

----

| 6.9 | Remedies for failure to comply with notice |
|-----|--------------------------------------------|

|   | (a) | immediately terminate this agreement, in which case the Non-Defaulting Party may seek damages for breach of this agreement; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | seek specific performance of this agreement, in which case: |
|--------|-----|-------------------------------------------------------------|

|   | (i) | if specific performance is obtained the Non-Defaulting Party may also seek damages for breach of this agreement; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if specific performance is not obtained the Non-Defaulting Party may then terminate this agreement and may seek damages for breach of this agreement. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.10 | Title and risk |
|------|----------------|

----

| 7. | Shareholders Agreement |
|----|------------------------|

| 7.1 | Waiver of pre-emptive rights |
|-----|------------------------------|

| 7.2 | Termination and release of rights under the Shareholders Agreement |
|-----|--------------------------------------------------------------------|

|   | (a) | the Shareholders Agreement is terminated with effect immediately prior to Completion; and |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (b) | it has no claim against any Shareholders Agreement Party and will not bring any claim against any other Shareholders Agreement Party that the party may have or claim to have or but for this agreement might have had against each other Shareholders Agreement Party (including any claim of which the party is not aware, or could not have been aware, at the date of this agreement) arising from or in connection with the Shareholders Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Bar to proceedings |
|-----|--------------------|

----

----

| 8. | Earn out |
|----|----------|

| 8.1 | Additional definitions |
|-----|------------------------|

| 8.2 | Earn Out Amount |
|-----|-----------------|

|   | (a) | The Incremental Sales Increase amount is to be multiplied by 50% and further multiplied by the Ownership Fraction, but in no event will such amount exceed an amount equal to $2,435,400 multiplied by the Ownership Fraction. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The Earn Out Amount will be payable as soon as the Incremental Sales Increase can be reasonably determined by the Buyer’s Auditor as set forth below but in no event prior to the date of Buyer’s Auditor’s report related to the consolidated financial statements of the Buyer for the year ending December 31, 2010 that are included in Buyer’s Form 10-K and filed with the U.S. Securities and Exchange Commission for such year. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | For illustrative purposes only, the calculation of the Earn Out Amount is illustrated as follows (all figures are in US Dollars): |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | 2010 Company Sales - $9,000,000 |
|--------|-----|---------------------------------|

|   | · | $9,000,000 |
|--------|--------|------------|

|   | · | $4,616,280 x 50% x 35,202,812/50,917,097 = $1,595,790 |
|--------|--------|-------------------------------------------------------|

|   |   |                           |
|--------|--------|--------------------------------|
|   | · | Maximum amount of earn out is: |

|   | · | Earn Out Amount is $1,595,790 |
|--------|--------|-------------------------------|

|   | (ii) | 2010 Company Sales - $10,000,000 |
|--------|------|----------------------------------|

|   | · | $10,000,000 |
|--------|--------|-------------|

|   | · | $5,616,280 x 50% x 35,202,812/50,917,097 = $1,941,548 |
|--------|--------|-------------------------------------------------------|

|   | · | Maximum amount of earn out is: |
|--------|--------|--------------------------------|

|   | · | Earn Out Amount is $1,683,836 |
|--------|--------|-------------------------------|

|   | (d) | In the event the consent by the Commonwealth of Australia acting through the Department of Innovation, Industry, Science and Research (the DIISR) is not received with respect to the financial grant to the Company by DIISR and any portion of the DIISR grant must be repaid by the Company to DIISR, then the Earn Out Amount will be reduced by an amount equal to the amount of the DIISR grant repaid or required to be repaid. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | The Earn Out Amount will be provided in cash or Buyer Shares or any combination thereof at the Buyer’s discretion (provided, however, the Buyer will give good faith consideration to the combination of cash and/or Buyer Shares to be provided in payment of the Earn Out Amount as requested by the Sellers), and the number of Buyer Shares, if any, to be furnished in payment of the Earn Out Amount will be determined and based on the volume weighted average price of the Buyer’s common stock on the Nasdaq Global Market during the 20 trading sessions that end on the day of the date of the Buyer’s auditor’s report related to the consolidated financial statements of Buyer for the year ending December 31, 2010 that are included in Buyer’s Form 10-K and filed with the U.S. Securities and Exchange Commission for such year. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The Buyer Shares issued as payment for the Earn Out Amount will be delivered and paid into the Escrow Account, and any cash portion of the Earn Out Amount will be paid to the Sellers. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Earn out protections |
|-----|----------------------|

|   | (a) | carries on the Business in a normal, proper and efficient manner and in the ordinary course and does not materially change the nature or scale of the Business or the manner in which the Business and its affairs are conducted; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | conducts the Business for the purpose of developing and enhancing the Business and ensuring that maximum profitability of the Company is achieved, consistent with prudent financial and business management; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is treated as a separate business unit for accounting purposes a; |
|--------|-----|-------------------------------------------------------------------|

|   | (d) | does not enter into any contract or commitment outside of its ordinary course of business or which is not on arm's length terms; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | does not dispose of any material part of its Business or assets (other than a disposal to an affiliate of Buyer provided that such assets will continue to be included in the accounting results of the business unit for the purposes of (c) above); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | does not sub-contract or otherwise transfer any revenue-generating activity of the Business to another entity; |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (g) | does not pass a resolution to wind up the Company or to cause the Company to stop carrying on any part of the Business, except as necessary to comply with any applicable law; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | does not do, consent to, approve or permit to be done any act or thing or enter into any transaction, agreement or arrangement with any person which is likely to frustrate or impede the objectives referred to in sub paragraphs (a) to (g) above. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Inconsistent steps |
|-----|--------------------|

----

----

| 9. | Escrow Account |
|----|----------------|

| 9.1 | Establishment of Escrow Account |
|-----|---------------------------------|

|   | (a) | the Buyer must deliver to each of the SCRN Notes Sellers and the Escrow Agent a counterpart of the Escrow Agreement duly executed by the Buyer; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the SCRN Notes Sellers must deliver to each of the Buyer and the Escrow Agent a counterpart of the Escrow Agreement duly executed by the SCRN Notes Sellers; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Buyer and the SCRN Notes Sellers must procure that the Escrow Agent delivers to each of the Buyer and the SCRN Notes Sellers a counterpart of the Escrow Agreement duly executed by the Escrow Agent and must take all other steps necessary to procure that the Escrow Account is opened. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Operation of Escrow Account |
|-----|-----------------------------|

| 9.3 | Payments in respect of Resolved Claims before Escrow Termination Date |
|-----|-----------------------------------------------------------------------|

| 9.4 | No Unresolved Claims on Escrow Termination Date |
|-----|-------------------------------------------------|

| 9.5 | Unresolved Claims on Escrow Termination Date |
|-----|----------------------------------------------|

|   | (a) | an amount equal to the lower of: |
|--------|-----|----------------------------------|

|   | (i) | the amount of all Unresolved Claims then outstanding; and |
|--------|-----|-----------------------------------------------------------|

|   | (ii) | the Escrow Amount, |
|--------|------|--------------------|

----

|   | (b) | the balance, if any, of the Escrow Amount must be released to the SCRN Notes Sellers on the date that is 5 Business Days after the Escrow Termination Date; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if that Unresolved Claim subsequently becomes a Resolved Claim and a payment becomes due to the Buyer in respect of that Resolved Claim, then: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | within 5 Business Days after such payment becomes due an amount equal to the lower of that amount and the Escrow Amount must be paid out of the Escrow Account to the Buyer; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | after such payment has been made the provisions of clauses 9.5(a) and 9.5(b) will be applied as if references to the Escrow Termination Date were to the date on which that payment was made; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | if that Unresolved Claim subsequently becomes a Resolved Claim and no payment is due to the Buyer in respect of that Resolved Claim then the provisions of clauses 9.5(a) and 9.5(b) will immediately be applied as if references to the Escrow Termination Date were to the date on which that Unresolved Claim became a Resolved Claim. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6 | Interest |
|-----|----------|

| 9.7 | No limitation on rights to recover |
|-----|------------------------------------|

| 9.8 | Legends on Buyer Shares |
|-----|-------------------------|

----

| 10. | Repayment of indebtedness |
|-----|---------------------------|

| 10.1 | Indebtedness owed to the Group Companies |
|------|------------------------------------------|

----

| 10.2 | Indebtedness owed to any Seller |
|------|---------------------------------|

----

| 11. | Restraint |
|-----|-----------|

| 11.1 | Non-competition |
|------|-----------------|

|   | (a) | carry on any Restricted Business as principal or on its own account or as agent for any other person; |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | have any direct or indirect financial interest in any Restricted Business including as shareholder, member, unitholder, beneficiary, partner, guarantor, lender or financier; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | provide services in relation to any Restricted Business including as director, partner, or employee of, or adviser or consultant to, any person referred to in clauses 11.1(a) or 11.1(b). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Non-solicitation |
|------|------------------|

|   | (a) | approach any person who is at Completion or was at any time during the 2 year period before Completion a customer of any Group Company for the purpose of obtaining that person as a customer for goods or services of the type provided by any Group Company at Completion; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | induce or encourage any person who was at any time during the 12 month period before Completion an employee of any Group Company to leave the employment of any Group Company; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | interfere with the relationship between any Group Company and any of its customers, employees or suppliers. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

| 11.3 | Restraint period |
|------|------------------|

|   | (a) | on the date that is 3 years after the Completion Date; |
|--------|-----|-------------------------------------------------------------|

|   | (b) | on the date that is 2 years after the Completion Date; |
|--------|-----|-------------------------------------------------------------|

|   | (c) | on the date that is one year after the Completion Date. |
|--------|-----|--------------------------------------------------------------|

| 11.4 | Restraint area |
|------|----------------|

----

|   | (a) | United States, Australia, Canada, Philippines, Papua New Guinea, New Zealand, China, Fiji and South Africa; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (b) | United States, Australia, Canada, New Zealand and South Africa; |
|--------|-----|-----------------------------------------------------------------|

|   | (c) | United States, Australia and Canada. |
|--------|-----|--------------------------------------|

| 11.5 | Separate restrictions |
|------|-----------------------|

|   | (a) | clauses 11.1, 11.3 and 11.4 have effect together as if they consisted of separate restrictions, each resulting from combining an undertaking in clause 11.1 with a period in clause 11.3 and an area in clause 11.4, and each being severable from each other restriction; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | clauses 11.2 and 11.3 have effect together as if they consisted of separate restrictions, each resulting from combining an undertaking in clause 11.2 with a period in clause 11.3 and each being severable from each other restriction; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if any of those restrictions is invalid or otherwise unenforceable for any reason, the invalidity or unenforceability does not affect the validity or enforceability of any of the other restrictions. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | Exceptions |
|------|------------|

|   | (a) | holding securities in any listed corporation or unit trust which in aggregate carry not more than 5% of the votes which could be cast at a general meeting of that corporation or a meeting of holders of units in that unit trust; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | advertising employment vacancies in any newspaper, website or other publication or through a recruitment agency (except where the recruitment agency targets employees of any Group Company) and interviewing and negotiating with any person responding to such advertisement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | Assignment |
|------|------------|

| 11.8 | Acknowledgement |
|------|-----------------|

| 11.9 | Proceedings |
|------|-------------|

|   | (a) | without limiting the relief that the Buyer is entitled to seek, the Buyer may seek an injunction if any of the Restricted Persons is in breach or threatens to breach, or if the Buyer reasonably believes that any of the Restricted Persons will breach the provisions of this clause 11; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | the Restricted Persons will not make any submission or contention in any proceeding at which the Buyer seeks an injunction in relation to any breach, or any alleged, threatened or apprehended breach, of this clause 11 to the effect that granting an injunction is not appropriate because the payment of damages alone would be adequate to compensate the Buyer. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12. | Other obligations following Completion |
|-----|----------------------------------------|

| 12.1 | Power of attorney |
|------|-------------------|

|   | (a) | the Buyer may do in the name of the Appointor and on its behalf everything necessary or expedient in the Buyer's sole discretion to: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | exercise any rights attaching to the Shares and SCRN Notes (as the case may be), including rights to appoint a proxy or representative and voting rights; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | receive any dividend or other entitlement paid or credited to the Appointor in respect of the Shares and SCRN Notes (as the case may be); and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | unless requested by the Buyer, the Appointor must not, whether by corporate representative, proxy or otherwise, attempt to attend or vote at any general meeting of the Company (or of the holders of the SCRN Notes) or take any other action as the registered holder of the Shares or the SCRN Notes (as the case may be); and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Appointors declare that all acts and things done by the Buyer in exercising powers under this power of attorney will be as good and valid as if they had been done by the Appointors and agree to ratify and confirm whatever the Buyer does in exercising powers under this power of attorney. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Access to Records |
|------|-------------------|

|   | (a) | to enable any Seller to prepare accounts, tax returns and other statutory returns or fulfil any other obligation relating wholly or partly to any period before Completion; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in connection with the prosecution or defence of any claim by or against any Seller (other than claims by or against any Buyer Group Member), |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.3 | Access to records of the Sellers |
|------|----------------------------------|

|   | (a) | to enable any Buyer Group Member to prepare accounts, tax returns and other statutory returns or fulfil any other obligation relating wholly or partly to any period before Completion; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | in connection with the prosecution or defence of any claim by or against any Buyer Group Member, |
|--------|-----|--------------------------------------------------------------------------------------------------|

| 12.4 | Extension of claims reporting period |
|------|--------------------------------------|

|   | (a) | that is held by any Seller or a Group Company and written on a claims made basis; and |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (b) | under which any Group Company or any director or officer of any Group Company is insured, |
|--------|-----|-------------------------------------------------------------------------------------------|

| 12.5 | Consents to change in control |
|------|-------------------------------|

| 12.6 | Additional Investment by Buyer |
|------|--------------------------------|

----

| 12.7 | Section 338 Election |
|------|----------------------|

|   | (a) | At Buyer’s option, Sellers and Buyer shall jointly make an election under Section 338(h)(10) of the US Internal Revenue Code of 1986, as amended (the “Code”) and any corresponding or similar elections under state, local and foreign tax laws, as appropriate (collectively the “Section 338(h)(10) Election”) with respect to the purchase and sale of the Company. Buyer shall prepare and file (or provide to Sellers for filing) all forms and documents required in connection with the Section 338(h)(10) Election. Sellers shall timely execute (or cause to be executed) and deliver to Buyer such documents or forms as are reasonably requested to complete the Section 338(h)(10) Election. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Sellers and Buyer agree that, for purposes of the Section 338(h)(10) Election, (i) the “aggregate deemed sales price” (the “ADSP”) of the assets of the Company shall be allocated among the assets of Company for purposes of Section 338 of the Code and the applicable Treasury Regulations promulgated thereunder (and any similar provision of state, local and foreign Tax laws, as appropriate) (the “Asset Allocation”) in accordance with the procedures provided herein, which allocation shall be binding upon Sellers, Company and Buyer. Within sixty (60) days after the Completion Date, Buyer shall provide to Sellers a proposed Asset Allocation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13. | Warranties |
|-----|------------|

| 13.1 | Warranties |
|------|------------|

|   | (a) | the date of execution of this agreement; and |
|--------|-----|----------------------------------------------|

|   | (b) | the time immediately prior to Completion, |
|--------|-----|-------------------------------------------|

| 13.2 | Warranties separate |
|------|---------------------|

| 13.3 | Survival |
|------|----------|

| 13.4 | Reliance |
|------|----------|

| 13.5 | Warranties not limited by inquiries or knowledge |
|------|--------------------------------------------------|

|   | (a) | any inquiry or investigation made by or on behalf of the Buyer or any of its Representatives; |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (b) | any actual or constructive knowledge of the Buyer or any of its Representatives that any Warranty is or may be incorrect; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | any other act, matter or thing. |
|--------|-----|---------------------------------|

| 13.6 | Indemnity for breach of Warranty |
|------|----------------------------------|

|   | (a) | the amount of any Indemnified Loss suffered or incurred by the Buyer or any Group Company arising out of or in connection with the breach of any Warranty; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an amount equal to any additional Tax assessable on any Buyer Group Member arising out of or in connection with the receipt by the Buyer of a payment under this clause 13.6 or otherwise in respect of the breach of Warranty. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7 | Seller to notify of potential breaches |
|------|----------------------------------------|

| 13.8 | Notification of Warranty Claims |
|------|---------------------------------|

| 13.9 | Termination for breach of Warranty |
|------|------------------------------------|

|   | (a) | by notice to the Sellers at any time before Completion terminate this agreement; or |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (b) | proceed to Completion in which case the Buyer will be entitled to make a Warranty Claim following Completion in respect of that fact, matter or circumstance. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.10 | No action against Buyer Group Member or officers and employees |
|-------|----------------------------------------------------------------|

----

|   | (a) | the Buyer has sought and obtained this waiver as agent for and on behalf of each Buyer Group Member and their respective current and former officers and employees and holds the benefit of this clause 13.10 as trustee for them; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the provisions of this clause 13.10 may be enforced by the Buyer on behalf of and for the benefit of any Buyer Group Member and their respective current and former officers and employees and those persons may plead this clause 13.10 in answer to any claim made by any Seller against them. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.11 | Buyer Warranties |
|-------|------------------|

----

| 14. | Limitations of liability |
|-----|--------------------------|

| 14.1 | Disclosure |
|------|------------|

|   | (a) | is disclosed or described in this agreement; |
|--------|-----|----------------------------------------------|

|   | (b) | is fairly disclosed in the Disclosure Letter; or |
|--------|-----|--------------------------------------------------|

|   | (c) | would have been disclosed to the Buyer had the Buyer conducted searches 2 Business Days before the date of this agreement of the public records maintained by ASIC in respect of the Group Companies . |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | Fair disclosure |
|------|-----------------|

| 14.3 | Time limits for Warranty Claims |
|------|---------------------------------|

|   | (a) | 4 years after Completion in respect of a Warranty Claim arising out of a breach of a Tax Warranty; or |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (b) | 2 years after Completion in respect of any other Warranty Claim. |
|--------|-----|-----------------------------------------------------------------------|

| 14.4 | Withdrawal of Warranty Claim |
|------|------------------------------|

|   | (a) | the Warranty Claim has been satisfied or settled within 12 months after notice of the Warranty Claim is given in accordance with clause 14.3; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | the Buyer has served legal proceedings against the Sellers in respect of the Warranty Claim within 12 months after the later of: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the date on which notice of the Warranty Claim is given in accordance with clause 14.3; and |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (ii) | the date on which sufficient Warranty Claims have arisen which, in aggregate, exceed the relevant threshold referred to in clause 14.5. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 14.5 | Minimum amount for Warranty Claims |
|------|------------------------------------|

| 14.6 | Threshold for Warranty Claims |
|------|-------------------------------|

| 14.7 | Other limitations of liability |
|------|--------------------------------|

|   | (a) | the fact, matter or circumstance giving rise to the Warranty Claim is specifically provided for in the Company’s financial statements dated 30 June 2009; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the loss or damage giving rise to the Warranty Claim is recovered by any Buyer Group Member under another Warranty Claim or a Tax Claim or is made good or otherwise compensated for without cost to any Buyer Group Member; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the loss or damage giving rise to the Warranty Claim is recovered by any Buyer Group Member under any contract of insurance; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the amount of the Warranty Claim is increased as a result of the failure of the Buyer to give notice of any fact matter or circumstance relating to the Warranty Claim within the time period referred to in clause 13.8 and such failure prejudices the rights of the Sellers. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.8 | Maximum recovery |
|------|------------------|

| 14.9 | Reimbursement of payments subsequently received |
|------|-------------------------------------------------|

|   | (a) | all costs incurred by any Buyer Group Member in recovering the Recovery Amount (including any increase in insurance premiums in respect of future periods); and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | any Tax payable by any Buyer Group Member as a result of receiving the Recovery Amount. |
|--------|-----|-----------------------------------------------------------------------------------------|

| 14.10 | Circumstances where limitations not to apply |
|-------|----------------------------------------------|

|   | (a) | a breach of any of the Warranties set out in paragraphs 1, 2 and 3.4 of Schedule 8; or |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (b) | any fraud, wilful default or wilful concealment by the Sellers or any of its Representatives. |
|--------|-----|-----------------------------------------------------------------------------------------------|

----

| 15. | Third Party Claims |
|-----|--------------------|

| 15.1 | Notice |
|------|--------|

| 15.2 | Obligations after notice given |
|------|--------------------------------|

|   | (a) | the Buyer must act and must procure that each relevant Group Company acts with due diligence in conducting the defence of the Third Party Claim; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Buyer must give to the Sellers such information as the Sellers may reasonably require in relation to the progress of the Third Party Claim and must consult with the Sellers in relation to the conduct of any proceedings or negotiations in relation to the Third Party Claim; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Sellers must provide the Buyer and each relevant Group Company and their professional advisers such information and assistance as the Buyer and each relevant Group Company reasonably require to enable them to avoid, dispute, resist, defend, appeal, compromise or mitigate the Third Party Claim and in particular must: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | provide the Buyer and each relevant Group Company and their professional advisers with reasonable access to such employees and records of the Sellers as the Buyer reasonably requires in connection with the Third Party Claim and permit the Buyer to take copies of such records; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | use all reasonable endeavours (including the reimbursement of all reasonable out of pocket expenses) to procure that employees and officers of the Sellers provide such witness statements and other evidence that the Buyer and each relevant Group Company reasonably require to enable them to avoid, dispute, resist, defend, appeal, compromise or mitigate the Third Party Claim. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 16. | Tax |
|-----|-----|

| 16.1 | Tax indemnity |
|------|---------------|

|   | (a) | the amount of any Tax that any Group Company is liable to pay in respect of or by reference to any matter or event occurring or which is taken to have occurred on or before the Completion Date ; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the amount of any credit, relief, rebate, right of set off, offset or right to repayment of Tax to which the Company was entitled at the Completion Date which is lost by or denied to any Group Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the amount of Tax payable or that would be payable as a result of any allowance, deduction or tax loss to which a Group Company was entitled at the Completion Date being lost by or denied to that Group Company calculated at the general rate of corporate tax applicable in the tax year to which the Tax Assessment relates and on the assumption that the liability of that Group Company to Tax in that tax year is not less than the aggregate amount of all such allowances, deductions or carry forward losses lost or denied; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the amount of Tax that any Buyer Group Member is liable to pay as a result of the Buyer receiving any payment under this clause 16; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the amount of any reasonable legal and other professional expense on a full indemnity basis incurred by the Buyer or any Group Company in connection with investigating, disputing, defending or settling any Tax Claim or taking any action under this clause 16. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.2 | Limitations |
|------|-------------|

|   | (a) | in the case of a Tax Claim in respect of a liability to pay Tax, a provision for that Tax has been included in the Last Accounts; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the amount otherwise payable in respect of the Tax Claim has been recovered by the Buyer under a Warranty Claim; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Tax Claim arises from the failure of any Buyer Group Member after Completion to make any valid claim or election in relation to Tax the making of which was assumed in preparing the Last Accounts or to lodge in a timely manner any return, notice or other document relating to Tax; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the Tax Claim arises from a change by any Buyer Group Member after Completion in any claim or election in relation to Tax made before the Last Balance Date  or the amendment after Completion of any Tax return of any Buyer Group Member relating to a period ending on or before the Last Balance Date (except where that amendment is required by law or is approved by the Sellers in writing before it is made); or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the amount of the Tax Claim is increased as a result of the failure of the Buyer to comply with the provisions of clause 17. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

| 16.3 | Time for payment |
|------|------------------|

| 16.4 | Late payments |
|------|---------------|

|   | (a) | the amount of any interest, penalties and fines incurred by any Group Company or the Buyer  as a result of the Sellers' failure to make payment; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the interest payable in accordance with clause 21.4. |
|--------|-----|-----------------------------------------------------------|

| 16.5 | Refunds |
|------|---------|

|   | (a) | all costs incurred by any Buyer Group Member in obtaining such refund; and |
|--------|-----|----------------------------------------------------------------------------|

|   | (b) | if a refund includes interest on overpaid Tax, the amount of Tax payable on that interest by the recipient of the refund. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

----

| 17. | Tax Assessments |
|-----|-----------------|

| 17.1 | Notice |
|------|--------|

| 17.2 | Obligations after notice given |
|------|--------------------------------|

|   | (a) | the Buyer must give and must procure that each relevant Group Company gives to the Sellers such information as the Sellers may reasonably require in relation to the progress of the Tax Assessment; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Buyer must not and must procure that each relevant Group Company does not for a period of 20 Business Days after such notice is given under clause 17.1: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in the case of a Tax Assessment received from a Tax Authority, engage in any discussion or negotiation with or confer with any Tax Authority concerning the Tax Assessment or make any admission of liability, agreement, settlement or compromise with any Tax Authority in respect of the Tax Assessment; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | in the case of a Tax Assessment proposed to be lodged with any Tax Authority, lodge that Tax Assessment, |
|--------|------|----------------------------------------------------------------------------------------------------------|

|   | (c) | the Sellers must not confer with any Tax Authority in relation to the Tax Assessment, except with the prior written consent of the Buyer or otherwise as required by law. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.3 | Sellers' response to notice |
|------|-----------------------------|

|   | (a) | acknowledging to the Buyer in a form reasonably satisfactory to the Buyer that the Sellers are liable to make payment to the Buyer under clause 16.1 in relation to the Tax Assessment; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | requiring the Buyer to comply with the terms of clause 17.4 in relation to the Tax Assessment. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

| 17.4 | Effect of Sellers' notice |
|------|---------------------------|

|   | (a) | provided that the Sellers and their professional advisers have given any undertaking as to confidentiality that the Buyer may reasonably require, the Buyer must procure that each relevant Group Company provides the Sellers and their professional advisers with such access to the employees and records of each relevant Group Company as the Sellers may reasonably require in connection with the Tax Assessment and permit the Sellers to take copies of such records; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Buyer must procure that each relevant Group Company: |
|--------|-----|----------------------------------------------------------|

|   | (i) | responds to the Tax Assessment in such manner as the Sellers may reasonably request including by giving notice of objection to the Tax Assessment; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | takes such other action as the Sellers may reasonably request to avoid, dispute, settle or compromise the Tax Assessment, |
|--------|------|---------------------------------------------------------------------------------------------------------------------------|

| 17.5 | Buyer's rights to settle |
|------|--------------------------|

----

| 17.6 | Costs and expenses |
|------|--------------------|

----

| 18. | Tax returns and tax audits |
|-----|----------------------------|

| 18.1 | Tax returns relating to periods ending before Completion |
|------|----------------------------------------------------------|

|   | (a) | give to the Buyer drafts of all such returns and any other documents to be provided to any Tax Authority in relation to such returns before submission to the relevant Tax Authority; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | provide the Buyer with copies of all correspondence with any Tax Authority in relation to such returns after lodgement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

| 18.2 | Tax returns relating to periods ending after Completion |
|------|---------------------------------------------------------|

| 18.3 | Assistance from Sellers |
|------|-------------------------|

| 18.4 | Tax audits |
|------|------------|

----

| 19. | Confidentiality |
|-----|-----------------|

| 19.1 | No announcement or other disclosure of transaction |
|------|----------------------------------------------------|

|   | (a) | the Sellers must keep confidential, and must: |
|--------|-----|-----------------------------------------------|

|   | (i) | procure that each of their respective Representatives, keeps confidential; and |
|--------|-----|--------------------------------------------------------------------------------|

----

|   | (ii) | until Completion procure that each Group Company and each of their respective Representatives, keeps confidential, |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Buyer must keep confidential, and must procure that each Buyer Group Member and each of their respective Representatives keeps confidential, the existence of and the terms of this agreement, all negotiations between the parties in relation to the subject matter of this agreement and all other information given to it under this agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Permitted disclosure |
|------|----------------------|

|   | (a) | if disclosure is required to be made by law or the rules of a recognised stock or securities exchange and the party whose obligation it is to keep matters confidential or procure that those matters are kept confidential: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | has not through any voluntary act or omission (other than the execution of this agreement) caused the disclosure obligation to arise; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | has before disclosure is made notified each other party of the requirement to disclose and, where the relevant law or rules permit and where practicable to do so, given each other party a reasonable opportunity to comment on the requirement for and proposed contents of the proposed disclosure; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if disclosure is made by way of a written announcement the terms of which have been agreed in writing by the parties prior to the making of the announcement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if disclosure is reasonably required to enable a party to perform its obligations under this agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (d) | to any professional adviser of a party who has been retained to advise in relation to the transactions contemplated by the Transaction Documents or to the auditor of a party; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to any financier who has made a bona fide proposal to provide finance to a party in relation to the transactions contemplated by any Transaction Document; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | with the prior written approval of each party other than the party whose obligation it is to keep those matters confidential or procure that those matters are kept confidential; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | where the matter has come into the public domain otherwise than as a result of a breach by any party of this agreement, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

----

| 19.3 | No use or disclosure of Confidential Information |
|------|--------------------------------------------------|

----

| 20. | Termination |
|-----|-------------|

| 20.1 | Termination by Buyer |
|------|----------------------|

|   | (a) | in accordance with clause 2.5, clause 5.6, clause 6.9 or clause 13.9; or |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (b) | by notice to the Sellers if there is a breach of the Warranty set out in paragraphs 1.4 or 1.5 of Schedule 8 or the Warranty set out in paragraph 3.4 of Schedule 8, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.2 | Termination by Sellers |
|------|------------------------|

|   | (a) | in accordance with clause 2.5 or clause 6.9; or |
|--------|-----|-----------------------------------------------------------|

|   | (b) | by notice to the Buyer if there is a breach by the Buyer of the Buyer Warranty set out in paragraph 1.4 of Schedule 9, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

| 20.3 | Effect of termination |
|------|-----------------------|

|   | (a) | the provisions of this agreement shall cease to have effect except for the provisions of clauses 1 and 19, this clause 20 and clauses 22 to 27 which will survive termination; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | each party retains the rights it has against the others in respect of any breach of this agreement occurring before termination. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

----

| 21. | Payments |
|-----|----------|

| 21.1 | Direction |
|------|-----------|

| 21.2 | Method of payment |
|------|-------------------|

|   | (a) | electronic funds transfer to an account with a bank specified by the recipient party to the paying party at least 1 Business Day before the due date for payment and confirmed by the paying party to the recipient party by notice; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | otherwise, unendorsed bank cheque drawn on an internationally recognized bank or other immediately available funds. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

| 21.3 | No deduction |
|------|--------------|

| 21.4 | Default interest |
|------|------------------|

----

| 22. | GST |
|-----|-----|

| 22.1 | Interpretation |
|------|----------------|

|   | (a) | except where the context suggests otherwise, terms used in this clause 22 have the meanings given to those terms by the GST Act (as amended from time to time); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any part of a supply that is treated as a separate supply for GST purposes (including attributing GST payable to tax periods) will be treated as a separate supply for the purposes of this clause 22; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any consideration that is specified to be inclusive of GST must not be taken into account in calculating the GST payable in relation to a supply for the purpose of this clause. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.2 | Reimbursements and similar payments |
|------|-------------------------------------|

| 22.3 | GST payable |
|------|-------------|

----

| 22.4 | Variation to GST payable |
|------|--------------------------|

----

| 23. | Notices |
|-----|---------|

| 23.1 | Service agent for all Sellers and the SCRN Notes Sellers |
|------|----------------------------------------------------------|

| 23.2 | How notice to be given |
|------|------------------------|

|   | (a) | may be given by personal service, post, facsimile or email; |
|--------|-----|-------------------------------------------------------------|

|   | (b) | must be in writing and in English (or accompanied by a certified translation into English); |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (c) | must be addressed as follows (or as otherwise notified by that party to each other party from time to time): |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (i) | if to the Sellers and the SCRN Notes Sellers: |
|--------|-----|-----------------------------------------------|

----

|   | (ii) | if to the Buyer: |
|--------|------|------------------|

|   | (d) | (in the case of personal service, post or facsimile) must be signed by the party making it or (on that party's behalf) by the solicitor for, or any attorney, director, secretary or authorised agent of, that party; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | (in the case of email) must be in pdf or other format that is a scanned image of the original of the communication, including a handwritten signature, and be attached to an email that states that the attachment is a communication under this agreement; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | must be delivered by hand or posted by prepaid post to the address, sent by fax to the number, or sent by email to the email address, of the addressee, in accordance with clause 23.2(c). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 23.3 | When notice taken to be received |
|------|----------------------------------|

|   | (a) | (in the case of prepaid post sent to an address in the same country) on the third day after the date of posting; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (b) | (in the case of prepaid post sent to an address in another country) on the fifth day after the date of posting by airmail; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (c) | (in the case of fax) at the time in the place to which it is sent equivalent to the time shown on the transmission confirmation report produced by the fax machine from which it was sent; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | (in the case of delivery by hand) on delivery; and |
|--------|-----|----------------------------------------------------|

|   | (e) | (in the case of email) unless the party sending the email knows or reasonably ought to suspect that the email and the attached communication were not delivered to the addressee's domain specified in the email address notified for the purposes of this clause 23, 24 hours after the email was sent, but if the communication would otherwise be taken to be received on a day that is not a working day or after 5.00 pm, it is taken to be received at 9.00 am on the next working day ("working day" meaning a day that is not a Saturday, Sunday or public holiday and on which banks are open for business generally, in the place to which the communication is posted, sent or delivered). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 24. | Entire agreement |
|-----|------------------|

----

| 25. | Proportionate liability |
|-----|-------------------------|

| 25.1 | Exclusion of proportionate liability provisions |
|------|-------------------------------------------------|

|   | (a) | that to the extent permitted by law: |
|--------|-----|--------------------------------------|

|   | (i) | part 4 of the Civil Liability Act 2002 (NSW) (and any equivalent statutory provision in any other state or territory); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | part VIA of the Trade Practices Act 1974; and |
|--------|------|----------------------------------------------------|

|   | (iii) | part 7.10, Division 2A of the Corporations Act, |
|--------|-------|------------------------------------------------------|

|   | (b) | without limiting clause 25.1(a), the rights, obligations and liabilities of the parties under this agreement or in relation to any Claim or Tax Claim with respect to proportionate liability are as specified in this agreement and not otherwise, whether such rights, obligations or liabilities are sought to be enforced by a claim in contract, in tort or otherwise. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 25.2 | Sellers not to apply Proportionate Liability Provisions |
|------|---------------------------------------------------------|

|   | (a) | the Sellers must not seek to apply any of the Proportionate Liability Provisions in relation to any Claim or Tax Claim by the Buyer against the Sellers (whether in contract, tort or otherwise); and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if any of the provisions of the Proportionate Liability Provisions are applied to any Claim or Tax Claim by the Buyer against the Sellers (whether in contract, tort or otherwise), the Sellers must pay to the Buyer on demand an amount equal to any loss, damage, cost or expense that forms part of that claim by the Buyer against the Sellers which the Buyer is not able to recover from the Sellers because of the operation of any of the Proportionate Liability Provisions. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 26. | General |
|-----|---------|

| 26.1 | Amendments |
|------|------------|

| 26.2 | Assignment |
|------|------------|

| 26.3 | Consents |
|------|----------|

| 26.4 | Costs |
|------|-------|

| 26.5 | Counterparts |
|------|--------------|

| 26.6 | Further acts and documents |
|------|----------------------------|

| 26.7 | No merger |
|------|-----------|

| 26.8 | Severance |
|------|-----------|

| 26.9 | Stamp duties |
|------|--------------|

|   | (a) | must pay all stamp duties and any related fines and penalties in respect of this agreement, the performance of this agreement and each transaction effected by or made under this agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | must pay to the Sellers on demand the amount of any Indemnified Loss suffered or incurred by the Sellers arising out of or in connection with any failure to comply with clause 26.9(a); and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is authorised to apply for and retain the proceeds of any refund due in respect of stamp duty paid under this clause. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

| 26.10 | Waivers |
|-------|---------|

|   | (a) | failure to exercise or enforce, or a delay in exercising or enforcing, or the partial exercise or enforcement of, a right, power or remedy provided by law or under this agreement by a party does not preclude, or operate as a waiver of, the exercise or enforcement, or further exercise or enforcement, of that or any other right, power or remedy provided by law or under this agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a waiver given by a party under this agreement is only effective and binding on that party if it is given or confirmed in writing by that party; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | no waiver of a breach of a term of this agreement operates as a waiver of another breach of that term or of a breach of any other term of this agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 26.11 | Signatures by fax or other electronic means |
|-------|---------------------------------------------|

----

| 27. | Governing law and jurisdiction |
|-----|--------------------------------|

| 27.1 | Governing law |
|------|---------------|

| 27.2 | Jurisdiction |
|------|--------------|

|   | (a) | submits to the non-exclusive jurisdiction of the courts of New South Wales, Commonwealth courts having jurisdiction in that state and the courts competent to determine appeals from those courts, with respect to any proceedings that may be brought at any time relating to this agreement; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | waives any objection it may have now or in the future to the venue of any proceedings, and any claim it may have now or in the future that any proceedings have been brought in an inconvenient forum, if that venue falls within clause 27.2(a). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Executed by Gridsense Pty Limited in accordance with section 127 of the Corporations Act 2001 (Cth): |   |   |                                    |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------|
|                                                                                                                |   |   |                                    |
|                                                                                                                |   |   |                                    |
| Signature of director                                                                                               |   |   | Signature of company secretary/director |
|                                                                                                                |   |   |                                    |
|                                                                                                                |   |   |                                    |
| Full name of director                                                                                               |   |   | Full name of company secretary/director |

| Executed by Acorn Energy, Inc. in accordance with its constitution and in the presence of: |   |   |                                 |
|-------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------|
|                                                                                            |   |   |                                 |
|                                                                                            |   |   |                                 |
| Signature of officer                                                                            |   |   | Signature of officer                 |
|                                                                                            |   |   |                                 |
|                                                                                            |   |   | John A. Moore, President & CEO   |
| Full name of officer and office held                                                            |   |   | Full name of officer and office held |

| Signed by Campbell Keenan in the presence of: |   |   |      |
|-----------------------------------------------|--------|--------|-----------|
|                                          |   |   |      |
|                                          |   |   |      |
| Signature of witness                          |   |   | Signature |
|                                          |   |   |      |
|                                          |   |   |      |
| Full name of witness                          |   |   |      |

| Signed by Hans Wick in the presence of: |   |   |      |
|-----------------------------------------|--------|--------|-----------|
|                                    |   |   |      |
|                                    |   |   |      |
| Signature of witness                    |   |   | Signature |
|                                    |   |   |      |
|                                    |   |   |      |
| Full name of witness                    |   |   |      |

----

| Signed by Ulrich W. Rued in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Doston Bradley in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Carl Dou in the presence of: |   |   |      |
|----------------------------------------|--------|--------|-----------|
|                                   |   |   |      |
|                                   |   |   |      |
| Signature of witness                   |   |   | Signature |
|                                   |   |   |      |
|                                   |   |   |      |
| Full name of witness                   |   |   |      |

| Signed by Mark Pasquale in the presence of: |   |   |      |
|---------------------------------------------|--------|--------|-----------|
|                                        |   |   |      |
|                                        |   |   |      |
| Signature of witness                        |   |   | Signature |
|                                        |   |   |      |
|                                        |   |   |      |
| Full name of witness                        |   |   |      |

----

| Signed by Lindon Shiao in the presence of: |   |   |      |
|--------------------------------------------|--------|--------|-----------|
|                                       |   |   |      |
|                                       |   |   |      |
| Signature of witness                       |   |   | Signature |
|                                       |   |   |      |
|                                       |   |   |      |
| Full name of witness                       |   |   |      |

| Signed by Vitali Lipanov in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Vadim Lipanov in the presence of: |   |   |      |
|---------------------------------------------|--------|--------|-----------|
|                                        |   |   |      |
| Signature of witness                        |   |   | Signature |
|                                        |   |   |      |
|                                        |   |   |      |
| Full name of witness                        |   |   |      |

| Signed by Jason Chisholm in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Steve Hodges in the presence of: |   |   |      |
|--------------------------------------------|--------|--------|-----------|
|                                       |   |   |      |
|                                       |   |   |      |
| Signature of witness                       |   |   | Signature |
|                                       |   |   |      |
|                                       |   |   |      |
| Full name of witness                       |   |   |      |

----

| Signed by Paul Dunkley in the presence of: |   |   |      |
|--------------------------------------------|--------|--------|-----------|
|                                       |   |   |      |
|                                       |   |   |      |
| Signature of witness                       |   |   | Signature |
|                                       |   |   |      |
|                                       |   |   |      |
| Full name of witness                       |   |   |      |

| Signed by David Sweeting in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Eniko Sweeting in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Joe Shein in the presence of: |   |   |      |
|-----------------------------------------|--------|--------|-----------|
|                                    |   |   |      |
|                                    |   |   |      |
| Signature of witness                    |   |   | Signature |
|                                    |   |   |      |
|                                    |   |   |      |
| Full name of witness                    |   |   |      |

| Signed by Sarah Smart in the presence of: |   |   |      |
|-------------------------------------------|--------|--------|-----------|
|                                      |   |   |      |
|                                      |   |   |      |
| Signature of witness                      |   |   | Signature |
|                                      |   |   |      |
|                                      |   |   |      |
| Full name of witness                      |   |   |      |

----

| Signed by Ken Shein in the presence of: |   |   |      |
|-----------------------------------------|--------|--------|-----------|
|                                    |   |   |      |
|                                    |   |   |      |
| Signature of witness                    |   |   | Signature |
|                                    |   |   |      |
|                                    |   |   |      |
| Full name of witness                    |   |   |      |

| Signed by Adam Goldsmith in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Kevin Anderson in the presence of: |   |   |      |
|----------------------------------------------|--------|--------|-----------|
|                                         |   |   |      |
|                                         |   |   |      |
| Signature of witness                         |   |   | Signature |
|                                         |   |   |      |
|                                         |   |   |      |
| Full name of witness                         |   |   |      |

| Signed by Doug McKay in the presence of: |   |   |      |
|------------------------------------------|--------|--------|-----------|
|                                     |   |   |      |
|                                     |   |   |      |
| Signature of witness                     |   |   | Signature |
|                                     |   |   |      |
|                                     |   |   |      |
| Full name of witness                     |   |   |      |

----

| Signed by Karen Craft in the presence of: |   |   |      |
|-------------------------------------------|--------|--------|-----------|
|                                      |   |   |      |
|                                      |   |   |      |
| Signature of witness                      |   |   | Signature |
|                                      |   |   |      |
|                                      |   |   |      |
| Full name of witness                      |   |   |      |

| Signed by David Wick in the presence of: |   |   |      |
|------------------------------------------|--------|--------|-----------|
|                                     |   |   |      |
|                                     |   |   |      |
| Signature of witness                     |   |   | Signature |
|                                     |   |   |      |
|                                     |   |   |      |
| Full name of witness                     |   |   |      |

| Signed for and on behalf of Prime Energy Partners Limited by its attorney under a power of attorney dated on or about the date of this agreement in the presence of: |   |   |                                                                                                                        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                 |   |   |                                                                                                                        |
|                                                                                                                                                                 |   |   |                                                                                                                        |
| Signature of witness                                                                                                                                                 |   |   | Signature of attorney who declares that the attorney has not received any notice of the revocation of the power of attorney |
|                                                                                                                                                                 |   |   |                                                                                                                        |
|                                                                                                                                                                 |   |   |                                                                                                                        |
| Full name of witness                                                                                                                                                 |   |   | Full name of attorney                                                                                                       |

----

| Name of Seller orSCRN Notes Sellers(*indicates an SCRN NotesSeller) |   | Number of Shares |       |   | % ownership |   |   | SCRN Notes PrincipalOutstanding |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|------------------|--------|--------|-------------------------------------------|--------|
| Keenan, Campbell                                                                                            |   |                       | 9,127,820  |   |             |   | 17.51  |                                      |   |   |   |
| Wick, Hans*                                                                                                 |   |                       | 6,742,696  |   |             |   | 12.93  |                                      |   |   | 97,416 |   |
| Rued, Ulrich W.                                                                                             |   |                       | 3,333,333  |   |             |   | 6.39   |                                      |   |   |   |   |
| Bradley, Doston                                                                                             |   |                       | 3,161,905  |   |             |   | 6.06   |                                      |   |   |   |   |
| Prime Energy Partners*                                                                                      |   |                       | 1,987,180  |   |             |   | 3.81   |                                      |   |   | 441,562 |   |
| Dou, Carl                                                                                                   |   |                       | 1,600,000  |   |             |   | 3.07   |                                      |   |   |   |   |
| Pasquale, Mark*                                                                                             |   |                       | 2,946,111  |   |             |   | 5.65   |                                      |   |   | 150,995 |   |
| Shiao, Lindon                                                                                               |   |                       | 1,000,000  |   |             |   | 1.92   |                                      |   |   |   |   |
| Lipanov, Vitali                                                                                             |   |                       | 610,439    |   |             |   | 1.17   |                                      |   |   |   |   |
| Lipanov, Vadim                                                                                              |   |                       | 400,000    |   |             |   | 0.77   |                                      |   |   |   |   |
| Chisholm, Jason                                                                                             |   |                       | 500,000    |   |             |   | 0.96   |                                      |   |   |   |   |
| Hodges, Steve                                                                                               |   |                       | 192,566    |   |             |   | 0.37   |                                      |   |   |   |   |
| Dunkley, Paul*                                                                                              |   |                       | 188,797    |   |             |   | 0.36   |                                      |   |   | 146,124 |   |
| Sweeting, David                                                                                             |   |                       | 339,690    |   |             |   | 0.65   |                                      |   |   |   |   |
| Sweeting, Eniko                                                                                             |   |                       | 150,000    |   |             |   | 0.29   |                                      |   |   |   |   |
| Shein, Joe                                                                                                  |   |                       | 100,275    |   |             |   | 0.19   |                                      |   |   |   |   |
| Smart, Sarah                                                                                                |   |                       | 100,000    |   |             |   | 0.19   |                                      |   |   |   |   |
| Shein, Ken                                                                                                  |   |                       | 97,000     |   |             |   | 0.19   |                                      |   |   |   |   |
| Goldsmith, Adam                                                                                             |   |                       | 25,000     |   |             |   | 0.05   |                                      |   |   |   |   |
| Anderson, Kevin & McKay, Doug                                                                           |   |                       | 306,000    |   |             |   | 0.59   |                                      |   |   |   |   |
| Anderson, Kevin                                                                                             |   |                       | 2,194,000  |   |             |   | 4.21   |                                      |   |   |   |   |
| McKay, Doug                                                                                                 |   |                       | 900,000    |   |             |   | 1.73   |                                      |   |   |   |   |
| Craft, Karen                                                                                                |   |                       | 417,117    |   |             |   | .80    |                                      |   |   |   |   |
| Wick, David*                                                                                                |   |                       | 0          |   |             |   | 0.00   |                                      |   |   | 292,248 |   |
| TOTAL                                                                                                       |   |                       | 36,419,929 |   |             |   | 69.86  |                                      |   |   | 1,128,345 |   |

----

----

| Name                    |   | Gridsense Pty Ltd                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Registration No.        |   | 130 672 767                                                                                                                                                                                                                                                                                                                                                                                          |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Issued capital          |   | 60,595,310 Ordinary Shares                                                                                                                                                                                                                                                                                                                                                                           |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Registered shareholders |   | Lindon Shiao, Doston Bradley, Ulrich W Rued, Prime Energy Partners Limited, Acorn Energy Inc, Kevin Anderson and Doug McKay, Kevin Anderson, Doug McKay, Campbell Houston Keenan, Hans Wick, Mark Pasquale, Carl Dou, Vitali Lipanov, Vadim Lipanov, Jason Chisholm, Steve Hodges, Paul Dunkley, Sarah Smart, David Sweeting, Eniko Sweeting, Joe Shein, Ken Shein, Adam Goldsmith, Karen Craft |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Place of registration   |   | Victoria                                                                                                                                                                                                                                                                                                                                                                                             |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Directors               |   | Lindon Shiao, Campbell Houston Keenan, John Moore, Mark Pasquale                                                                                                                                                                                                                                                                                                                                     |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Secretary               |   | Mark Pasquale                                                                                                                                                                                                                                                                                                                                                                                        |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Auditor                 |   | HLB Mann Judd (NSW) Pty Ltd                                                                                                                                                                                                                                                                                                                                                                          |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Public Officer          |   | Mark Pasquale                                                                                                                                                                                                                                                                                                                                                                                        |
|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| Registered Office       |   | Ground Floor Unit 3, 20-36 Nancarrow Avenue, Meadowbank, NSW, 2114                                                                                                                                                                                                                                                                                                                                   |

----

| Name                    | CHK Gridsense Pty Ltd                                              |
|-------------------------|--------------------------------------------------------------------|
|                    |                                                               |
| Registration No.        | 001 658 091                                                        |
|                    |                                                               |
| Issued capital          | 4,135 Ordinary Shares                                              |
|                    |                                                               |
| Registered shareholders | Gridsense Pty Ltd                                                  |
|                    |                                                               |
| Place of registration   | New South Wales                                                    |
|                    |                                                               |
| Directors               | Campbell H Keenan                                                  |
|                    |                                                               |
| Secretary               | Campbell H Keenan                                                  |
|                    |                                                               |
| Public officer          | Campbell H Keenan                                                  |
|                    |                                                               |
| Auditor                 | HLB Mann Judd (NSW) Pty Ltd                                        |
|                    |                                                               |
| Registered office       | Unit 3 Ground Floor, 20-36 Nancarrow Avenue, Meadowbank, NSW, 2114 |

| Name                    | Gridsense Inc                                                         |
|-------------------------|-----------------------------------------------------------------------|
|                    |                                                                  |
| Registration No.        | 20-1049732                                                            |
|                    |                                                                  |
| Issued capital          |                                                                  |
|                    |                                                                  |
| Registered shareholders | CHK Gridsense Pty Ltd                                                 |
|                    |                                                                  |
| Place of registration   | California                                                            |
|                    |                                                                  |
| Directors               | Lindon Shiao                                                          |
|                    |                                                                  |
| Secretary               | Abigail Vargas                                                        |
|                    |                                                                  |
| Public officer          | Lindon Shiao                                                          |
|                    |                                                                  |
| Auditor                 | HLB Mann Judd                                                         |
|                    |                                                                  |
| Registered office       | 2568  Industrial Blvd, Suite 100, West Sacramento, CA 95691 |

----

| Address |   | Registered proprietor |   | Titleidentifier |   | Encumbrances |
|---------|--------|----------------------------|--------|-----------------|--------|--------------|
|    |   |                       |   |            |   |         |
| None    |   |                       |   |            |   |         |

| Address                                                       |   | Lessee                |   | Lessor                                |   | Titleidentifier |   | Date oflease |   | Rental          |
|---------------------------------------------------------------|--------|-----------------------|--------|---------------------------------------|--------|-----------------|--------|-------------------|--------|-----------------|
|                                                          |   |                  |   |                                  |   |            |   |              |   |            |
| Unit 3 Ground floor,                                          |   | CHK Gridsense Pty Ltd |   | Sarkis Nassif as trustee of AIT Trust |   | AD764277N       |   | 26 July 07        |   | AU$6,640 /month |
| 20-36 Nancarrow Ave, Meadowbank  NSW 2114 Australia |   |                  |   |                                  |   |            |   |              |   |            |
|                                                          |   |                  |   |                                  |   |            |   |              |   |            |
| 2568 Industrial Blvd Suite1000 West Sacramento CA 95691USA    |   | Gridsense Inc         |   | Ethan Conrad                          |   | MTG -7-06/07E   |   | 10 Jan 08         |   | US$2,538/ month |

----

| Description |   | Registeredproprietor |   | Registrationnumber &Country |   | Status                  |   | Expiry date |
|-------------|--------|----------------------|--------|--------------------------------------|--------|-------------------------|--------|------------------|
|        |   |                 |   |                                 |   |                    |   |             |
| Linetracker |   | CHK Gridsense        |   | 766044 Australia                     |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Unisense    |   | CHK Gridsense        |   | 766435 Australia                     |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Linetracker |   | CHK Gridsense        |   | 1198717 Great Britain                |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Linetracker |   | CHK Gridsense        |   | 2366467 Canada                       |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Unisense    |   | CHK Gridsense        |   | 2366531 Canada                       |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Linetracker |   | CHK Gridsense        |   | 2001/9293 South Africa               |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Unisense    |   | CHK Gridsense        |   | 2001/9294 South Africa               |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| OilFlowIQ   |   | CHK Gridsense        |   | 2009200007 Australia                 |   | Current                 |   | 2 Jan 2029       |
|        |   |                 |   |                                 |   |                    |   |             |
| OilFlowIQ   |   | CHK Gridsense        |   | 2008900112 Australia                 |   | Application in progress |   |             |
|        |   |                 |   |                                 |   |                    |   |             |
| Rascat      |   | CHK Gridsense        |   | 2467054 Canada                       |   | Current                 |   | 19 Nov 2022      |
|        |   |                 |   |                                 |   |                    |   |             |
| OilFlowIQ   |   | CHK Gridsense        |   | 2648816 Canada                       |   | New                     |   | 8 Jan 2014       |
|        |   |                 |   |                                 |   |                    |   |             |
| Unisense    |   | CHK Gridsense        |   | 6828770    USA   |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Linetracker |   | CHK Gridsense        |   | 6771078    USA   |   |                    |   |             |
|        |   |                 |   | 7272520    USA   |   | Current                 |   | 12 Apr 2020      |
|        |   |                 |   |                                 |   |                    |   |             |
| Rascat      |   | CHK Gridsense        |   | 12/350842                            |   | Current                 |   | 19 Nov 2022      |
|        |   |                 |   |                                 |   |                    |   |             |
| OilFlowIQ   |   | CHK Gridsense        |   |                                 |   | Application in progress |   |             |

----

| Mark        |   | Registeredproprietor      |   | Country   |   | Registerednumber&Country |   | Class  |   | Expirydate  |   | Renewaldate |
|-------------|--------|---------------------------|--------|-----------|--------|------------------------------|--------|--------|--------|-------------|--------|-------------|
|        |   |                      |   |      |   |                         |   |   |   |        |   |        |
| Gridsense   |   | CHK Gridsense Pty Ltd     |   | Australia |   | 961532 Australia             |   | 9      |   | 14 Jul 2013 |   | 14 Jul 2013 |
|        |   |                      |   |      |   |                         |   |   |   |        |   |        |
| LineTracker |   | CHK GridSense Pty Limited |   | Australia |   | 961531 Australia             |   | 9      |   | 14 Jul 2013 |   | 14 Jul 2013 |

| Description |   | Registeredproprietor |   | Registrationnumber&Country |   | Status |   | Expiry date |
|-------------|--------|----------------------|--------|--------------------------------|--------|--------|--------|------------------|
|        |   |                 |   |                           |   |   |   |             |
| N/A         |   |                 |   |                           |   |   |   |             |

| Business Name         |   | Registeredproprietor  |   | Registrationnumber&Country |   | Status  |   | Expiry date |
|-----------------------|--------|-----------------------|--------|--------------------------------|--------|---------|--------|-------------|
|                  |   |                  |   |                           |   |    |   |        |
| Gridsense Pty Ltd     |   | Gridsense Pty Ltd     |   | 130672767                      |   | Current |   | N/A         |
|                  |   |                  |   |                           |   |    |   |        |
| CHK Gridsense Pty Ltd |   | Gridsense Pty Ltd     |   | 001 658 091                    |   | Current |   | N/A         |
|                  |   |                  |   |                           |   |    |   |        |
| Gridsense Inc         |   | CHK Gridsense Pty Ltd |   | 20-1049732                     |   | Current |   | N/A         |

| Domain Name      |   | Registrant            |   | Registrar     |   | Renewal date |
|------------------|--------|-----------------------|--------|---------------|--------|--------------|
|             |   |                  |   |          |   |         |
| gridsense.net    |   |                  |   |          |   | 04 Dec 2011  |
|             |   |                  |   |          |   |         |
| gridsense.com    |   | CHK Gridsense Pty Ltd |   | Planet Domain |   | 20 Jul 2012  |
|             |   |                  |   |          |   |         |
| gridsenseusa.net |   |                  |   |          |   | 09 Jan 2011  |

----

----

|   | · | Lease agreement of premises |
|--------|--------|-----------------------------|

|   | o | Between CHK Gridsense Pty Ltd & Sarkis Nassif for Unit 3, Ground floor, 20-36 Nancarrow Avenue, Meadowbank, NSW,2114 Australia. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Grant agreement of Cable Tracker |
|--------|--------|----------------------------------|

|   | o | Between CHK Gridsense Pty Ltd & Aus Industry (Department of Innovation Industry, Science & Research Australia) for Project Cable Tracker. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Employment contracts between CHK Gridsense Pty Ltd & the following employees: |
|--------|--------|-----------------------------------------------------------------------------------|

|   | o | Vaughan Wesson |
|--------|---|----------------|

|   | o | Simon McCauley |
|--------|---|----------------|

|   | o | Adam Goldsmith |
|--------|---|----------------|

|   | o | Francis Fisher |
|--------|---|----------------|

|   | o | Shankar Balasubramaniam |
|--------|---|-------------------------|

|   | o | David Edwards |
|--------|---|---------------|

|   | o | Sean Durkin |
|--------|---|-------------|

|   | o | Jamie Hodge |
|--------|---|-------------|

|   | o | Ross Vumbaca |
|--------|---|--------------|

|   | o | James William |
|--------|---|---------------|

|   | o | Stamoulis Jim |
|--------|---|---------------|

|   | o | Luke Lu |
|--------|---|---------|

|   | o | Quentin Yang |
|--------|---|--------------|

|   | o | Jeannie Berger |
|--------|---|----------------|

|   | o | Neda Matesic |
|--------|---|--------------|

|   | o | Prasanth Sugala |
|--------|---|-----------------|

|   | o | Chivukula Ramakrishna |
|--------|---|-----------------------|

|   | o | Godoy Filiberto |
|--------|---|-----------------|

|   | o | Michael Gerts |
|--------|---|---------------|

----

|   | o | Alastair Gilchrist |
|--------|---|--------------------|

|   | o | Mirko Klasnja |
|--------|---|---------------|

|   | o | Patrick Lai |
|--------|---|-------------|

|   | · | Vendor non disclosure contracts |
|--------|--------|---------------------------------|

|   | o | Between CHK Gridsense Pty Ltd & Various Vendors |
|--------|---|-----------------------------------------------------|

|   | · | Distributor contract |
|--------|--------|----------------------|

|   | o | Between CHK Gridsense Pty Ltd & Prosol Limited (New Zealand) |
|--------|---|------------------------------------------------------------------|

|   | · | Lease agreement of the premises |
|--------|--------|---------------------------------|

|   | o | Between Gridsense Inc & Ethan Conrad for 2568 Industrial Blvd, Suite 100, West Sacramento, CA 95691, USA. |
|--------|---|---------------------------------------------------------------------------------------------------------------|

|   | · | TIQ agreement |
|--------|--------|---------------|

|   | o | Between Gridsense Inc & Transformer Contracting Inc. |
|--------|---|----------------------------------------------------------|

|   | · | Employment contracts between Gridsense Inc  & the following employees |
|--------|--------|-------------------------------------------------------------------------------------|

|   | o | Kevin Anderson |
|--------|---|----------------|

|   | o | Carl West |
|--------|---|-----------|

|   | o | Mike Vermilye |
|--------|---|---------------|

|   | o | Cameron Fitchener |
|--------|---|-------------------|

|   | o | Abigail Vargas |
|--------|---|----------------|

|   | o | Dennis Bowie |
|--------|---|--------------|

|   | · | Manufacturer Rep sales contract between Gridsense Inc & the following manufacturer Reps |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | o | Arjay Automation Inc |
|--------|---|----------------------|

|   | o | Ben F Thomas Sales |
|--------|---|--------------------|

|   | o | Charles W Ashby Co. |
|--------|---|---------------------|

|   | o | David Ewart Representatives |
|--------|---|-----------------------------|

|   | o | Hasgo Power Equipment Sales |
|--------|---|-----------------------------|

|   | o | Innovelec Ltd |
|--------|---|---------------|

|   | o | JSB Engineering |
|--------|---|-----------------|

----

|   | o | Langford & Associates, Inc |
|--------|---|--------------------------------|

|   | o | Mid – Atlantic Power Equipment Sales LLC |
|--------|---|------------------------------------------------|

|   | o | RS Sales Inc |
|--------|---|--------------|

|   | o | Sirkoch Associates |
|--------|---|--------------------|

|   | o | W.R Daniel & Associates Inc. |
|--------|---|----------------------------------|

----

----

| 1. | The Sellers and the SCRN Notes Sellers |
|----|----------------------------------------|

| 1.1 | Capacity and authorisation |
|-----|----------------------------|

| 1.2 | Valid obligations |
|-----|-------------------|

| 1.3 | Breach or default |
|-----|-------------------|

|   | (a) | any agreement to which the Sellers are party; |
|--------|-----|-----------------------------------------------|

|   | (b) | any provision of the constitution of any of the Sellers who are corporations or other legal entities; or |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (c) | any law or regulation or any order, judgment or determination of any court or Regulatory Authority by which the Sellers and the SCRN Notes Sellers are bound. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Solvency |
|-----|----------|

|   | (a) | a receiver, receiver and manager, liquidator, provisional liquidator, administrator, trustee or similar officer is appointed in respect of the Sellers or any of its assets or an event occurs that gives any person the right to seek such an appointment; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an application is made to court or a resolution is passed or an order is made for the winding up or dissolution of the Sellers or an event occurs that would give any person the right to make such an application; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Sellers propose or take any steps to implement a scheme of arrangement or other compromise or arrangement with their creditors or any class of them; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the Sellers stop paying their debts when they become due or are declared or taken under any applicable law to be insolvent or any of the Sellers' boards of directors resolves that the Sellers are, or are likely to become at some future time, insolvent; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | any person in whose favour the Sellers have granted any Encumbrance becomes entitled to enforce any security under that Encumbrance or any floating charge under that Encumbrance crystallises. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Solvency |
|-----|----------|

|   | (a) | a trustee or similar officer is appointed in respect of the Seller or SCRN Notes Seller or any of the Seller's or SCRN Notes Seller’s assets; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an order is made for the bankruptcy of the Seller or SCRN Notes Seller or his or her estate or an event occurs that would give a court the right to make such an order; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a moratorium of any debts of the Seller or SCRN Notes Seller, a personal insolvency agreement or any other assignment, composition or arrangement with the Seller's or SCRN Notes Seller’s creditors or any similar proceeding or arrangement by which the assets of the Seller or SCRN Notes Seller are subjected conditionally or unconditionally to the control of the Seller's or SCRN Notes Seller’s creditors or a trustee is ordered or applied for; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the Seller or SCRN Notes Seller is declared or taken under any applicable law to be insolvent or unable to pay his or her debts or the Seller or SCRN Notes Seller admits in writing that he or she is insolvent or unable to pay his or her debts; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any writ of execution, garnishee order, mareva injunction or similar order, attachment, distress or other process is made or issued against or in relation to any asset of the Seller or SCRN Notes Seller. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | Shares, share capital and SCRN Notes |
|----|--------------------------------------|

| 2.1 | Ownership of the Shares |
|-----|-------------------------|

| 2.2 | Ownership of shares in the Subsidiaries |
|-----|-----------------------------------------|

| 2.3 | Share capital |
|-----|---------------|

| 2.4 | Issue of further securities |
|-----|-----------------------------|

----

| 2.5 | Third party rights |
|-----|--------------------|

| 2.6 | Ownership of the SCRN Notes |
|-----|-----------------------------|

----

| 3. | Corporate matters |
|----|-------------------|

| 3.1 | Incorporation |
|-----|---------------|

| 3.2 | Constitutions |
|-----|---------------|

| 3.3 | Other interests |
|-----|-----------------|

|   | (a) | has any legal or beneficial right in, or has agreed to acquire, subscribe for or take up, any shares or other securities in any company, any units in any unit trust or any other ownership interests in any other entity other than another Group Company; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | controls (within the meaning of section 50AA of the Corporations Act) any company or other entity other than another Group Company; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is a member of or party to any joint venture, consortium, partnership or unincorporated association, other than a recognised trade association; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | is party to any agreement for participation with any other person in any business activity deriving profits, commissions or other income. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Solvency |
|-----|----------|

|   | (a) | a receiver, receiver and manager, liquidator, provisional liquidator, administrator, trustee or similar officer is appointed in respect of that Group Company or any of its Assets or an event occurs that gives any person the right to seek such an appointment; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an application is made to court or a resolution is passed or an order is made for the winding up or dissolution of that Group Company or an event occurs that would give any person the right to make such an application; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | that Group Company proposes or takes any steps to implement a scheme of arrangement or other compromise or arrangement with its creditors or any class of them; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | that Group Company stops paying its debts when they become due or is declared or taken under any applicable law to be insolvent or the board of directors of that Group Company resolves that it is, or is likely to become at some future time, insolvent; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any person in whose favour that Group Company has granted any Encumbrance becomes entitled to enforce any security under that Encumbrance or any floating charge under any such Encumbrance crystallises. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Books and records |
|-----|-------------------|

|   | (a) | have been fully and properly maintained and contain complete and accurate records of all matters required to be entered in them by any law or regulation or by the Accounting Standards; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | are in the possession or control of the relevant Group Company, |
|--------|-----|-----------------------------------------------------------------|

| 3.6 | Powers of attorney |
|-----|--------------------|

----

| 4. | Conduct of business |
|----|---------------------|

| 4.1 | Compliance |
|-----|------------|

| 4.2 | Authorisations |
|-----|----------------|

| 4.3 | Compliance with Authorisations |
|-----|--------------------------------|

|   | (a) | result in an Authorisation being terminated, suspended or modified in any material respect or not being renewed; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (b) | require material work or expenditure to maintain or secure the ability of any Group Company to renew any Authorisation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Agreements with Regulatory Authorities |
|-----|----------------------------------------|

----

| 4.5 | Orders, directions and notices |
|-----|--------------------------------|

| 4.6 | Product compliance |
|-----|--------------------|

| 4.7 | No product claims |
|-----|-------------------|

| 4.8 | Place of business |
|-----|-------------------|

----

| 5. | Accounts |
|----|----------|

| 5.1 | The Last Accounts |
|-----|-------------------|

|   | (a) | give a true and fair view of: |
|--------|-----|-------------------------------|

|   | (i) | the financial position and the assets and liabilities of the Company and its controlled entities as at the Last Balance Date; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the income, expenses and operational results of the Company and its controlled entities for the financial period ended on the Last Balance Date; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | have been prepared: |
|--------|-----|---------------------|

|   | (i) | in compliance with the Corporations Act, the Accounting Standards and all other applicable laws and regulations; |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (ii) | applying the same principles, policies, practices and procedures as were applied in preparing the audited accounts of the Company and its controlled entities for the each of the 3 immediately preceding financial years; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | applying a rate of depreciation to each fixed Asset which is adequate to write down the value of each fixed Asset to its net realisable value at the end of its useful working life; and |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | applying the same rate of depreciation to each fixed Asset as was applied in preparing the audited accounts of the Company and its controlled entities for each of the 3 immediately preceding financial years; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | are not affected by any extraordinary, unusual or non-recurring item or any other factor that might make the financial position or operational results of the Company and its controlled entities disclosed in the Last Accounts misleading or deceptive; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | contain specific provisions adequate to cover, or full particulars in notes of, all liabilities of the Company and its controlled entities as at the Last Balance Date including all Tax Funding Liabilities and other liabilities in respect of Tax and all contingent liabilities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Base Balance Sheet |
|-----|--------------------|

|   | (a) | fairly presents the financial position and the assets and liabilities of the Group Companies on an aggregated basis as at the date of the Base Balance Sheet and is not misleading or deceptive; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | has been prepared in accordance with the Accounting Standards and applying the same principles, policies, practices and procedures as were applied in preparing the Last Accounts of each Group Company for the financial year ended on December 31, 2008 and the period of January 1, 2009 through June 30, 2009; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | contains specific provisions adequate to cover all liabilities of the Group Companies on an aggregated basis as at the date of the Base Balance Sheet including all Tax Funding Liabilities and other liabilities in respect of Tax and all other contingent liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Position since Last Balance Date |
|-----|----------------------------------|

|   | (a) | there has been no Material Adverse Change; |
|--------|-----|--------------------------------------------|

|   | (b) | each Group Company has carried on the Business in the ordinary and usual course consistent with its usual business practices and has not made any significant change to the nature or scale of any activity comprised in the Business; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | no Group Company has issued or allotted any shares or other securities, bought back or redeemed any shares or other securities or otherwise reduced its share capital, declared or paid any dividends or other distributions or authorised, or agreed conditionally or otherwise to do, any of those things; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | no Group Company has disposed of or created any Encumbrance over any asset except in the ordinary course of business; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (e) | no Group Company has incurred or entered into commitments to incur capital expenditure in excess of $2,000 for any individual item or $10,000 in aggregate; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | there has been no material increase or decrease in the levels of debtors, creditors or inventory or in the average collection or payment periods for debtors and creditors of any Group Company and: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | no Group Company has defaulted in paying any creditor by the due date for payment; and |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (ii) | no debt owing to any Group Company has been released or settled for an amount less than its full amount. |
|--------|------|----------------------------------------------------------------------------------------------------------|

----

| 6. | Assets, liabilities and financing arrangements |
|----|------------------------------------------------|

| 6.1 | Ownership of assets |
|-----|---------------------|

| 6.2 | Control of assets |
|-----|-------------------|

| 6.3 | Adequacy of assets |
|-----|--------------------|

| 6.4 | Plant, equipment and vehicles |
|-----|-------------------------------|

| 6.5 | Inventory |
|-----|-----------|

| 6.6 | Debts owing to the Group Companies |
|-----|------------------------------------|

|   | (a) | all debts owing to the Group Companies disclosed in the Last Accounts have been collected or will be collected in full except to the extent of any provision in the Last Accounts for bad and doubtful debts; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all other debts owing to the Group Companies as at the date of this agreement will be collected in full. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

| 6.7 | Borrowings |
|-----|------------|

----

|   | (a) | no Group Company has received any notice requiring the repayment of any such borrowings which are repayable on demand or requiring any such borrowings to be repaid before their due date for any reason; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | as far as the Sellers are aware there is no event of default and no other circumstance exists that may entitle any person to require early repayment of any such borrowings or to enforce any security given by any Group Company in respect of any such borrowings. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.8 | Other financial obligations |
|-----|-----------------------------|

|   | (a) | created or provided any Guarantee in relation to the obligations of any person; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (b) | created or provided any letter of comfort or made or given any representation, warranty or material undertaking to any person in relation to any liability or the solvency of any other person or in support of the provision of any material loan, credit or other financial accommodation; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | entered into any option, swap, exchange or other derivative or hedging transaction which has not been fully closed out; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (d) | entered into any agreement or arrangement for the purpose of obtaining any financial accommodation of a type that is not required to be disclosed as a liability under the Accounting Standards. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7. | Contracts |
|----|-----------|

| 7.1 | Disclosure of certain contracts |
|-----|---------------------------------|

|   | (a) | each Material Contract; |
|--------|-----|-------------------------|

|   | (b) | each equipment lease, finance lease, hire purchase agreement or similar arrangement to which a Group Company is party; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (c) | each other agreement or arrangement to which a Group Company is party that involves or is likely to involve obligations or liabilities of a nature or magnitude that might reasonably be expected to be considered material by a potential buyer of the Shares; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | each contract between a Group Company and any Seller; |
|--------|-----|-------------------------------------------------------|

|   | (e) | any offer or proposal that remains open for acceptance and if accepted would result in any Group Company being party to any agreement or arrangement within paragraphs (a) to (d) above; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | all documents varying or otherwise affecting the terms of any agreement, arrangement, offer or proposal within paragraphs (a) to (e) above. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.2 | Unusual, restrictive or onerous contracts |
|-----|-------------------------------------------|

|   | (a) | was entered into outside the ordinary course of business or is not on arm's length terms; |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (b) | establishes any agency, distributorship, marketing, purchasing, manufacturing or licensing or other arrangement which restricts or limits the ability of that Group Company to undertake any activity in any place in such manner as it determines; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | cannot be performed by that Group Company without undue or unusual expenditure or is expected to result in a loss to that Group Company on completion of performance, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Validity |
|-----|----------|

| 7.4 | Breach or default |
|-----|-------------------|

| 7.5 | Termination |
|-----|-------------|

| 7.6 | Disclosure of terms of trade |
|-----|------------------------------|

| 7.7 | Trading relationships |
|-----|-----------------------|

----

| 8. | Real property and environmental |
|----|---------------------------------|

| 8.1 | General |
|-----|---------|

----

| 8.2 | Freehold properties |
|-----|---------------------|

| 8.3 | Leasehold properties |
|-----|----------------------|

| 8.4 | Leases |
|-----|--------|

|   | (a) | as far as the Sellers are aware the Lease is valid, binding and enforceable and registered where required; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (b) | the relevant Group Company has made all payments required by the Lease, has otherwise complied with all terms of the Lease and all other covenants affecting the property subject of the Lease and has not received any notice alleging that any circumstance exists that may constitute a breach of the Lease; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the lessor under the Lease has not given any notice terminating or purporting to or advising of an intention to terminate the lease and as far as the Sellers are aware no circumstance exists that may entitle the lessor under the Lease to do so or to refuse to accept the exercise by the relevant Group Company of any option to extend the Lease. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Encumbrances and third party rights |
|-----|-------------------------------------|

| 8.6 | Occupation and ancillary rights |
|-----|---------------------------------|

| 8.7 | Use |
|-----|-----|

| 8.8 | Buildings and improvements |
|-----|----------------------------|

----

| 8.9 | Disputes |
|-----|----------|

| 8.10 | Nuisance and environmental complaints |
|------|---------------------------------------|

| 8.11 | Contamination |
|------|---------------|

|   | (a) | to clean up, remove, remedy, treat, control or contain, monitor or otherwise manage that Contamination, or contribute to the cost of doing so; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to pay compensation to any person in respect of that Contamination. |
|--------|-----|---------------------------------------------------------------------|

----

| 9. | Intellectual property and confidential information |
|----|----------------------------------------------------|

| 9.1 | Registered Intellectual Property Rights |
|-----|-----------------------------------------|

|   | (a) | all of those Intellectual Property Rights have been registered or are the subject of an application for registration by a Group Company; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | all registration, application and other fees due for payment in relation to those Intellectual Property Rights have been paid in full. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Unregistered Intellectual Property Rights |
|-----|-------------------------------------------|

| 9.3 | Ownership and use of Intellectual Property Rights |
|-----|---------------------------------------------------|

|   | (a) | no person other than the owner of those Intellectual Property Rights has any right to use such Intellectual Property Rights and there has been no unauthorised use by any other person of those Intellectual Property Rights; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | nothing has been done or omitted to be done by any Group Company and as far as the Sellers are aware no other circumstance exists that may affect the validity or ownership of those Intellectual Property Rights; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | there are no liens or encumbrances on any of those Intellectual Property Rights. |
|--------|-----|----------------------------------------------------------------------------------|

| 9.4 | Intellectual Property Licences |
|-----|--------------------------------|

|   | (a) | as far as the Sellers are aware the Intellectual Property Licence is valid, binding and enforceable; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (b) | the relevant Group Company is not in breach of the Intellectual Property Licence and has not received any notice alleging breach of the Intellectual Property Licence; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the licensor under that Intellectual Property Licence has not given any notice terminating or purporting to or advising of an intention to terminate that Intellectual Property Licence and as far as the Sellers are aware no circumstance exists that may entitle the licensor to do so; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | as far as the Sellers are aware, no circumstance exists that may affect the validity or ownership of the Intellectual Property Rights the subject of that Intellectual Property Licence or the use by any Group Company of those Intellectual Property Rights. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Adequacy of Intellectual Property Rights |
|-----|------------------------------------------|

| 9.6 | Infringement of third party rights |
|-----|------------------------------------|

| 9.7 | Assignments |
|-----|-------------|

| 9.8 | Confidential Information |
|-----|--------------------------|

|   | (a) | where such disclosure was made in the ordinary course of business and where the recipient is either an employee of the Group Company which made such disclosure or has acknowledged the confidentiality of the Confidential Information in writing and has agreed neither to use that Confidential Information nor disclose that Confidential Information to any person except for the purpose for which that Confidential Information was disclosed; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | to professional advisers of the Group Company which made such disclosure who are bound by obligations of confidentiality by reason of their role as adviser; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | where required or compelled by law. |
|--------|-----|-------------------------------------|

----

| 10. | Business Names and Domain Names |
|-----|---------------------------------|

| 10.1 | Ownership of Business Names |
|------|-----------------------------|

| 10.2 | Rights to use Domain Names |
|------|----------------------------|

| 10.3 | Validity, ownership and rights to use |
|------|---------------------------------------|

----

| 11. | Systems |
|-----|---------|

| 11.1 | Ownership and control |
|------|-----------------------|

| 11.2 | Independence |
|------|--------------|

| 11.3 | Support |
|------|---------|

| 11.4 | Performance |
|------|-------------|

----

| 11.5 | Security and integrity |
|------|------------------------|

----

| 12. | Employees |
|-----|-----------|

| 12.1 | Terms of employment |
|------|---------------------|

|   | (a) | the name, position, location and start date of: |
|--------|-----|-------------------------------------------------|

|   | (i) | each employee of each Group Company; and |
|--------|-----|------------------------------------------|

|   | (ii) | each person who has accepted an offer of employment with any Group Company but whose employment has not started; |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | (b) | the terms of employment of or offered to each person referred to in paragraph (a) above including all remuneration and other benefits payable during or upon termination of that employment or engagement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any arrangement under which any employee or former employee of any Group Company has received in the 12 months before the date of this agreement or may be entitled to receive any bonus or other payment or benefit (whether contractual or discretionary) that is calculated by reference to the performance of any Group Company or any division of any Group Company, the performance of the employee or former employee or any combination of these; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | accrued annual leave, long service leave and personal/carer's leave entitlements of each employee of each Group Company; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (e) | all policies and practices (whether contractual or discretionary) that are or may be applicable to employment or the termination of employment of any employee of any Group Company; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | all Modern Awards which cover any employee; and |
|--------|-----|-------------------------------------------------|

|   | (g) | all commitments given to any employee of any Group Company in relation to change of ownership of the Company or the transactions contemplated by this agreement, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Service and consultancy agreements |
|------|------------------------------------|

|   | (a) | each service agreement entered into between any Group Company and any employee whose total remuneration exceeds $1,000 per annum; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | each agreement for the provision of consultancy services to any Group Company. |
|--------|-----|--------------------------------------------------------------------------------|

| 12.3 | Contractors |
|------|-------------|

| 12.4 | Enterprise Agreements and Transitional Instruments |
|------|----------------------------------------------------|

| 12.5 | Notice periods |
|------|----------------|

| 12.6 | Compliance with obligations |
|------|-----------------------------|

|   | (a) | paid all amounts due to each employee and former employee other than in respect of remuneration accrued for the current salary payment period and current expense claims; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | otherwise complied in all material respects with all of its obligations in relation to the employment of its employees including all obligations arising under any Transitional Instrument, Modern Award or Enterprise Agreement and all obligations in relation to occupational health and safety and workers' compensation; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | made sufficient provision in its accounting records as at the Last Balance Date for all annual leave, long service leave and personal/carer's leave entitlements then due to all employees. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.7 | Termination |
|------|-------------|

|   | (a) | has been given notice of dismissal or termination by the relevant Group Company; |
|--------|-----|----------------------------------------------------------------------------------|

|   | (b) | has given notice resigning from employment with the relevant Group Company or terminating that consultancy or has otherwise indicated an intention to terminate the employment or consultancy; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | has been placed on gardening leave or any equivalent arrangement. |
|--------|-----|-------------------------------------------------------------------|

| 12.8 | Disputes |
|------|----------|

----

----

| 13. | Superannuation |
|-----|----------------|

| 13.1 | No defined benefits |
|------|---------------------|

| 13.2 | Funds |
|------|-------|

|   | (a) | the name and superannuation fund number of each Fund; and |
|--------|-----|-----------------------------------------------------------|

|   | (b) | in respect of each Fund: |
|--------|-----|--------------------------|

|   | (i) | the identity of each employee and each other person in respect of whom each Group Company makes contributions to that Fund; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the level of contributions which that Group Company is obliged to make or has voluntarily committed to make in respect of each such person; and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the benefit design under the terms of the Fund (including all insurance benefits). |
|--------|-------|------------------------------------------------------------------------------------|

| 13.3 | Documentation |
|------|---------------|

|   | (a) | the governing rules and any product disclosure statement or member booklet provided to members of the Fund and any document updating, amending or setting out any proposed amendment to any of those documents; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the latest annual report to members of the Fund. |
|--------|-----|--------------------------------------------------|

| 13.4 | Compliance |
|------|------------|

| 13.5 | Contributions |
|------|---------------|

|   | (a) | has made when due all contributions to each Fund that the relevant Group Company is obliged to make or has voluntarily committed to make; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | has not since December 31, 2008 increased the amount of  the contributions to any Fund that the relevant Group Company is obliged to make or has voluntarily committed to make; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | has made all superannuation contributions required to avoid any liability for a superannuation guarantee charge under the Superannuation Guarantee Charge Act 1992. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14. | Legal proceedings |
|-----|-------------------|

| 14.1 | Litigation |
|------|------------|

| 14.2 | Investigations and prosecutions |
|------|---------------------------------|

| 14.3 | Orders and judgments |
|------|----------------------|

----

| 15. | Insurance |
|-----|-----------|

| 15.1 | Assets |
|------|--------|

| 15.2 | Business risks |
|------|----------------|

| 15.3 | Effectiveness |
|------|---------------|

----

| 15.4 | Coverage |
|------|----------|

| 15.5 | Claims |
|------|--------|

| 15.6 | Contracts affecting insurance coverage |
|------|----------------------------------------|

|   | (a) | it has agreed to limit its ability to claim for breach of warranty or other contractual obligation in a way that might affect the rights of subrogation of any insurer; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it has assumed a liability to indemnify any other person in respect of any liability for which it would not have been liable in the absence of that contract or arrangement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16. | Tax |
|-----|-----|

|  16.1 |  Membership of Consolidated Group |
|------------|----------------------------------------|

| 16.2 | Payments |
|------|----------|

| 16.3 | Withholding |
|------|-------------|

| 16.4 | Returns and assessments |
|------|-------------------------|

|   | (a) | all information contained in those documents was complete and accurate in all material respects and not false, misleading or deceptive; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | no dispute exists in relation to any of those documents and as far as the Sellers are aware no circumstances exist which might give rise to such a dispute. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16.5 | Penalties |
|------|-----------|

| 16.6 | Investigations and disputes |
|------|-----------------------------|

| 16.7 | Rulings |
|------|---------|

|   | (a) | all transactions carried into effect in reliance on any Ruling have been implemented in the manner disclosed in the application for the relevant Ruling; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | no Group Company has taken any action which has or might alter or prejudice any arrangement which has been negotiated with a Taxation Authority or any Tax Ruling which has previously been obtained from or issued by any Taxation Authority. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.8 | Records |
|------|---------|

|   | (a) | copies of all returns and other documents lodged with any Tax Authority; |
|--------|-----|--------------------------------------------------------------------------|

|   | (b) | all records and other documents required by that Group Company to calculate income tax liabilities, capital gains, capital losses, net capital gains and net capital losses after Completion; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all other records and other documents required by any law or regulation relating to Tax to be retained by any Group Company for the requisite period. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.9 | Franking accounts |
|------|-------------------|

|   | (a) | complete and accurate details of the balance of each such franking account and any existing or pending franking debits have been provided to the Buyer in the Due Diligence Materials; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | each Group Company franked all dividends in accordance with the benchmark franking rule; and |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (c) | no Group Company will have a franking deficit at Completion. |
|--------|-----|--------------------------------------------------------------|

----

| 16.10 | Tainted share capital |
|-------|-----------------------|

| 16.11 | Distributions |
|-------|---------------|

|   | (a) | paid or credited an amount, transferred any property, made any distribution or loan or forgiven any debt which may be deemed to give rise to a dividend under the Tax Act; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | streamed any distribution or non-share dividends for the purposes of division 204 of the Tax Act. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

| 16.12 | Remuneration and other payments |
|-------|---------------------------------|

| 16.13 | Loans and debt forgiveness |
|-------|----------------------------|

|   | (a) | paid or credited an amount on behalf of or for the benefit of an associate, made an advance or loan or loans that may be treated as an amalgamated loan, or forgiven all or part of a debt owed to the relevant Group Company directly or through an interposed entity, in relation to which a dividend may be taken to have been paid or a franking debit may arise under the Tax Act; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | agreed to waive, forgive or otherwise not seek to recover any debt owing by any person. |
|--------|-----|-----------------------------------------------------------------------------------------|

| 16.14 | Waiver of debts |
|-------|-----------------|

| 16.15 | Capital gains |
|-------|---------------|

| 16.16 | Rollover relief |
|-------|-----------------|

----

| 16.17 | Participation in certain transactions |
|-------|---------------------------------------|

| 16.18 | Future income tax benefits |
|-------|----------------------------|

| 16.19 | Interposed entity election |
|-------|----------------------------|

| 16.20 | GST compliance |
|-------|----------------|

----

| 17. | Disclosure |
|-----|------------|

| 17.1 | Schedules to this agreement |
|------|-----------------------------|

| 17.2 | Accuracy of Due Diligence Materials |
|------|-------------------------------------|

| 17.3 | Completeness of Due Diligence Materials |
|------|-----------------------------------------|

|   | (a) | which the Sellers know or should reasonably be expected to know is material to the Buyer in entering into and completing the transactions contemplated by this agreement; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the disclosure of which might reasonably be expected to affect the willingness of the Buyer to buy any Shares or the price or other terms or conditions on which the Buyer would be willing to buy any Shares. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.4 | Forecasts and similar information |
|------|-----------------------------------|

----

----

| 18. | Buyer Shares |
|-----|--------------|

| 18.1 | Representations, Warranties and Certain Agreements of Sellers |
|------|---------------------------------------------------------------|

|   | (a) | Accredited Investor.  Except as set forth in the Disclosure Letter, each Seller is an “accredited investor” as defined by Rule 501 under the Securities Act of 1933, as amended (the “Act”), and is capable of evaluating the merits and risks of its investment in shares of Buyer Shares and has the capacity to protect its own interests. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Non- US Person.  Except as set forth in the Disclosure Letter, each Seller not a US Person within the meaning of Rule 902(o) of Regulation S promulgated under the Act. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Absence of Offering Memorandum or Similar Document.  Each Seller has not received, nor has it requested, nor does it have any need to receive, any offering memorandum or any other document describing the business and affairs of the Buyer, nor has any document been prepared for delivery to, or review by, each Seller in order to assist it in making the decision to acquire Buyer Shares. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Restricted Securities.  Each Seller acknowledges that the Buyer Shares when issued will not be registered under the Act and will be “restricted securities” as that term is defined in Regulation S and Rule 144 under the Act and that the Buyer Shares must be held indefinitely unless subsequently registered under the Act or unless an exemption from such registration is available.  Each Seller acknowledges that the provisions of Rule 144 promulgated under the Act which permit resale by non-affiliates of Buyer of common stock purchased in a private placement provided that there is certain public information available about Buyer and the resale occurs not less than six months after a party has purchased and paid for the security to be sold. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Investment.  Each Seller is acquiring the Buyer Shares for investment purposes for its own account and not, in whole or in part, for the account of any other person and not with a view to distribution or resale, nor with the intention of selling, transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular time, or upon the happening of any particular event or circumstances, except selling, transferring, or disposing the Buyer Shares in full compliance with the applicable provisions of the Act, the rules and regulations promulgated thereunder, and applicable state securities laws.  Each Seller has not formed any entity for the purpose of acquiring the Buyer Shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Information.  Each Seller has had the opportunity to ask questions of, and receive answers from Buyer or any person acting on its behalf concerning Buyer and its business and to obtain any additional information, to the extent possessed by Buyer (or to the extent it could have been acquired by Buyer without unreasonable effort or expense) necessary to verify the accuracy of the information received by each Seller.  In connection therewith, each Seller acknowledges that each Seller has had the opportunity to discuss Buyer’s business, management and financial affairs with Buyer’s management or any person acting on its behalf.  Each Seller has received and reviewed all the information concerning Buyer that it desires.  Without limiting the generality of the foregoing, each Seller has beenfurnished with or has had the opportunity to acquire, and to review: (i) copies of all of Buyer’s publicly available documents, and (ii) all information that it desires with respect to Buyer’s business, management, financial affairs and prospects.  In determining whether to accept the Buyer Shares in connection with the transactions hereunder, each Seller has relied solely on each Seller’s own knowledge and understanding of Buyer and its business based upon any information furnished to each Seller in writing.  Each Seller understands that no person has been authorized to give any information or to make any representations which were not furnished pursuant to this Section and each Seller has not relied on any other representations or information. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | Advisors.  Each Seller has carefully considered and has discussed with each Seller’s professional legal, tax, accounting and financial advisors, to the extent that each Seller has deemed necessary, the suitability of this investment and the transaction agreements contemplated by this Agreement and for each Seller’s particular federal, provincial, local and foreign tax and financial situation and has determined that the acquisition of the Buyer Shares and the transactions contemplated by this Agreement are suitable for each Seller.  Each Seller relies solely on such advisors and not on any statements or representations of Buyer or any of its agents.  Each Seller understands that each Seller (and not Buyer) shall be responsible for each Seller’s own tax liability that may arise as a result ofthis investment or the transactions contemplated by this Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Risk of Ownership of the Buyer Shares.  Each Seller acknowledges that ownership of the Buyer Shares is speculative and involves a high degree of risk and that each Seller can bear the economic risk of ownership of the Buyer Shares, including a total loss of its investment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | No Governmental Recommendation.  Each Seller acknowledges that no federal, provincial or foreign agency has recommended or endorsed each Seller’s acquisition of the Buyer Shares. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Legends.  Each Seller acknowledges that any and all certificates representing the Buyer Shares and any and all securities issued in replacement thereof or in exchange therefor shall bear one of the following legends or one substantially similar thereto, which each Seller has read and understands: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (k) | Stop-Transfer.  Because of the restrictions imposed on resale, each Seller acknowledges that Buyer shall have the right to note stop-transfer instructions in its stock transfer records, and that Buyer intends to do so.  Any sales, transfers, or any other dispositions of the Buyer Shares by each Seller, if any, will be in compliance with the Act. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Investment Experience.  Each Seller acknowledges that each Seller has such knowledge and experience in financial and business matters that each Seller is capable of evaluating the merits and risks of an investment in the Buyer Shares and of making an informed investment decision. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | No Advertisement or General Solicitation.  Each Seller represents that each Seller is not acquiring the Buyer Shares as a result of any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over the Internet, television or radio or presented at any seminar or meeting. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | Read and Understood this Agreement and the Escrow Agreement.  Each Seller has carefully read and understands this Agreement and the Escrow Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Representations and Warranties.  No representations or warranties have been made to each Seller by Buyer, or any officer, employee, agent, affiliate or subsidiary of Buyer, other than the representations of Buyer contained herein, and in acquiring the Buyer Shares each Seller is not relying upon any representations other than those contained in this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (p) | No Brokers. Each Seller represents and warrants no finder, broker, agent, financial advisor or other intermediary, nor any purchaser representative or any broker-dealer acting as a broker, is entitled to any compensation in connection with the transactions contemplated by this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | No Reliance upon Buyer’s or Company’s Counsel.  Each Seller is not being represented by counsel to Buyer or the Company and has been advised to obtain independent legal advice regarding an investment in the Buyer Shares. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1. | The Buyer |
|----|-----------|

| 1.1 | Capacity and authorisation |
|-----|----------------------------|

| 1.2 | Valid obligations |
|-----|-------------------|

| 1.3 | Breach or default |
|-----|-------------------|

|   | (a) | any agreement to which the Buyer is party; |
|--------|-----|--------------------------------------------|

|   | (b) | any provision of the Certificate of Incorporation of the Buyer; or |
|--------|-----|--------------------------------------------------------------------|

|   | (c) | any law or regulation or any order, judgment or determination of any court or Regulatory Authority by which the Buyer is bound. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | Solvency |
|-----|----------|

|   | (a) | a receiver, receiver and manager, liquidator, provisional liquidator, administrator, trustee or similar officer is appointed in respect of the Buyer or any of its assets or an event occurs that gives any person the right to seek such an appointment; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an application is made to court or a resolution is passed or an order is made for the winding up or dissolution of the Buyer or an event occurs that would give any person the right to make such an application; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Buyer proposes or takes any steps to implement a scheme of arrangement or other compromise or arrangement with its creditors or any class of them; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the Buyer is declared or taken under any applicable law to be insolvent or the Buyer's board of directors resolves that the Buyer is, or is likely to become at some future time, insolvent; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any person in whose favour the Buyer has granted any Encumbrance becomes entitled to enforce any security under that Encumbrance or any floating charge under that Encumbrance crystallises. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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