Document:

Exhibit
10.3

 

Memorandum
of Understanding

This
Memorandum of Understanding was signed by both parties on December 6, 2017 in Tianjin, China

 

Participating
Parties

 

Tianjin
Beroni Biotechnology Co., Limited

 

College
of Life Science, Nankai University

 

Whereas,

 

1.
Tianjin Beroni Biotechnology Co., Limited (“Tianjin Beroni” or the “Company”) is an international
biotechnology enterprise that integrates research and development, production and sales. Tianjin Beroni’s core businesses
are organized into four categories: biomedicine, healthcare products, medical instruments and smoke cessation products such as
NicoBloc. The Company also conducts researches in life science, in which the Company focuses on stem cell therapies, anti-cancer
drugs development and anti-aging products development. The researches aim to develop biomedicine, active pharmaceutical ingredient,
healthcare products and drug products that could lower blood pressure, blood lipids and blood sugar. The Company has a strong
foundation in R&D, access to global resources and a clear visionary strategic plan.

 

2.
Nankai University (“Nankai” or the “University”) was established in 1919. In 1922, Nankai
University officially established the Department of Biology. In June 1993, Nankai University established the College of Life Science
(the “College”) on the basis of the Department of Biology and the Institute of Molecular Biology. The College
now has six departments: Microbiology, Biochemistry and Molecular Biology, Genetics and Cell Biology, Plant Biology and Ecology,
Zoology and Developmental Biology. The College equips with a National Biological Experimental Teaching Center, AIDS Research Center,
Cancer Biology Center, Institute of Entomology and Life Science Experimental Research Center. The College is considered a life
science talent incubator as well.

 

The
College is an authorization party for national first-level doctoral degree, and it also offers post-doctoral, doctoral, master
and bachelor’s degrees. The College provides eight majors for graduate and doctoral students, including Botany, Zoology,
Microbiology, Genetics, Cell Biology, Biochemistry and Molecular Biology, Polymer Chemistry and Physics and Bioengineering. Among
these majors, Microbiology and Zoology are considered the State Key Disciplines and Botany is the State Key Construction Discipline.
In addition, Biology is considered the Tianjin Key Discipline. The College has access to scientific and research resources with
colleges and universities in different countries such as United States, United Kingdom, Australia and Japan. Furthermore, with
the resource funds from Ministry of Education and State Administration of Foreign Experts, the College regularly invites domestic
and foreign well-known biologists for speeches and academic meetings to enhance its innovation capability and competitiveness.

 

3.
Both parties respect and appreciate each other’s core value and corporate culture. Both parties are aware of the necessity
and significance of this collaboration and agree to collaborate strategically on the basis of equality, honesty and trustworthiness.

 

    	 

     

    

 

For
the purpose of resource sharing and mutual development, both parties developed this Memorandum of Understanding (the “MOU”
or the “Agreement”) on the basis of fair willingness, equality, honesty and trust. Both parties hereby agreed
to the following terms and conditions after negotiation:

 

I.
Objective and Principles

 

	 	1.	Both
    parties mutually acknowledge and agree the opportunity and strategic need to conduct this in-depth collaboration for their
    strategic plans and developments. To this end, both parties confirm that, after such agreement is reached, the collaboration
    will be in-depth and all-round.
	 	2.	Under
    the principle of mutual values, in order to achieve resource sharing, mutual development and enhancing each other’s
    market reputation and influence, the Company and Nankai University agree to share information and resources as much as possible
    on the basis of confidentiality.
	 	3.	Both
    parties agree to respect each other’s core interest throughout the execution and fulfillment of this Agreement and will
    collaborate with each other on the basis of trust, honesty and mutual development.

 

II.
Scopes and Terms

 

Nankai
University Beroni Precision Medicine and Stem Cell International R&D Center

 

The
foregoing scopes and terms shall be negotiated and agreed in a detailed supplementary agreement between the two parties.

 

III.
Rights and Obligation

 

	 	1.	Throughout
    the collaboration, each party shall safeguard and protect the legal interest of the other party and shall not conduct any
    act that may undermine the economic interests and goodwill of the other party. 
	 	2.	Throughout
    the collaboration, shall either party fail to fulfill its duty or seriously affect the interest of the other party, the Company
    or the University shall notify the other party and cure such damage in a timely manner to prevent further losses.
	 	3.	Throughout
    the collaboration, both parties shall work together in a cooperative and coordinated effort. For the matters within the collaboration,
    both parties have the obligation to assist and cooperate.
	 	4.	Both
    parties and their respective employees or agents shall be bound by the duty of confidentiality. Without consent from the other
    party, the Company or the University shall not disclose or breach confidential information regarding this Agreement to any
    third party.
	 	5.	Throughout
    the business operation, both parties shall act in a way that complies with Chinese laws and regulation. If either party breaches
    any provision, the other party shall have the right to terminate the Agreement and all the losses shall be borne by the party
    that has violated such provision.

 

Also,
in connection with this Agreement, both parties come in possession of each other’s proprietary or confidential agreement,
including but not limit to working papers, e-mails or other materials, both parties and their respective employees or agents shall
be bound by the duty of confidentiality.

 

    	 

     

    

 

IV.
Force Majeure

 

Shall
either party fail to fulfill its obligation under the MOU due to force majeure, including but not limit to national policy, domestic
and foreign laws and regulations, changes in international context, explosion, fire and riots, this MOU is no longer fulfilled.
The suffering party shall notify and provide relevant materials to the other party in a timely manner.

 

V.
Miscellaneous

 

	 	1.	Both
    parties shall enter into supplementary agreement for any matter not covered in this MOU. The supplementary agreement shall
    be equally effective as this Agreement.
	 	2.	This
    MOU is made in both Chinese and English. In case of any conflict of the two languages, the Chinese version shall prevail.
	 	3.	This
    MOU shall be effective as of the date signed (stamped) by both parties. This MOU is made in duplicates with both parties each
    holding one counterpart with the same legal effect.

 

Tianjin
Beroni Biotechnology Co., Limited

 

Sign:

 

Date:

 

College
of Life Science, Nankai University

 

Sign:

 

Date:Exhibit
10.4

 

Shareholders’
Agreement

 

in
relation to PENAO Pty Ltd

 

    	 

     

    

 

Shareholders’
Agreement

 

	Date	 	 

 

Parties

 

	Name	PENAO
    Pty Ltd (Company)
	ACN	634
    333 387
	Address	Rupert
        Myers Building

        South
        Wing, Level 1, Gate 14, Barker Street UNSW Sydney NSW 2052

 

	Name	The
    persons and entities set out in SCHEDULE 1 of this agreement (Shareholders)

 

Background

 

	A.	The
    Company was incorporated on 24 June 2019 and has an issued capital of 100,000 ordinary shares.
	 	 
	B.	The
    Creators have contributed to the development of the PENAO IP.
	 	 
	C.	NSi
    and Beroni entered into discussions in 2017 for Beroni’s investment in the PENAO IP and its further development.
	 	 
	D.	The
    Shareholders have incorporated the Company to hold and further develop the PENAO IP.
	 	 
	E.	As
    at the date of this agreement, the Shareholders hold ordinary shares and have contributed capital to the Company, as set out
    in SCHEDULE 2.
	 	 
	F.	This
    agreement sets out the parties’ agreement on how the affairs of the Company will be conducted from the date of this
    agreement.

 

Operative
provisions

 

	1	Definitions
                                         and interpretation

 

	1.1	Definitions

 

In
this agreement, unless the context otherwise requires:

 

Beroni
means Beroni Group Limited (ACN 613 077 526).

 

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

 

Budget
means the operating and financial targets and forecasts of the Company for a Financial Year.

 

Business
means the business of the Company which is to hold and further develop the PENAO IP and such other business activities as
approved in accordance with this agreement.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	2

     

    

 

Business
Day means a day on which banks are open for business in New South Wales, Australia, but is not a Saturday or Sunday or public
holiday.

 

Business
Plan means the plan for the business of the Company, as approved by the Board, including:

 

	 	(a)	the
    strategic, business development and marketing objectives of the Company for a Financial Year; and
	 	 	 
	 	(b)	business
    and financial forecasts for the Company for the three Financial Years following a Financial Year.

 

Call
Option means the call option under which Beroni can acquire 11% of the Company’s issued Shares on the terms in SCHEDULE
5.

 

CEO
means the chief executive officer of the Company.

 

Commencement
Date means the date this agreement is executed by all Shareholders.

 

Conditions
Precedent means the conditions precedent specified in SCHEDULE 3.

 

Confidential
Information has the meaning given in clause 14.

 

Consequential
Loss means, in relation to a breach of this agreement, any indirect loss (including, without limitation, loss of production,
loss of profit, loss of revenue, loss of contract, loss of goodwill, liability under other agreements or liability to third parties)
resulting from the breach.

 

Constitution
means the constitution of the Company from time to time.

 

Corporations
Act means Corporations Act 2001 (Cth).

 

Creator
means each of Philip Hogg, Pierre Jean D Dilda and Stephanie Decollogne, who have contributed to the development of the PENAO
IP.

 

Creator
Shareholder means a Creator who is also a Shareholder.

 

Deed
of Accession means a deed in the form of SCHEDULE 6 which sets out the terms on which a person is admitted to this agreement.

 

Defaulting
Party means a Shareholder in relation to whom an Event of Default has occurred.

 

Director
means a director of the Company.

 

Dispute
has the meaning given in clause 11.

 

Encumbrance
means a mortgage, charge, pledge, lien, encumbrance, security interest, title retention, preferential right, trust arrangement,
contractual right of set off or any other security agreement or arrangement in favour of any person.

 

Event
of Default means any of the events or circumstances described in clause 10.1.

 

Financial
Year means the period commencing on the Commencement Date and ending on 30 June 2019; and after that first Financial Year,
each period of 12 months commencing 1 July and ending on 30 June.

 

Founding
Shareholders means the Shareholders as at the Commencement Date.

 

Group
means the Company and any of its subsidiaries.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	3

     

    

 

Interest,
in relation to a Share, means:

 

	 	(a)	the
    Share;
	 	 	 
	 	(b)	any
    legal or equitable right or interest in or in relation to the Share, other than a right to vote in respect of the Share conferred
    by a proxy or appointment of representative that is not given for valuable consideration; and
	 	 	 
	 	(c)	an
    option or other right to acquire the Share.

 

Initial
Project Budget means the budget prepared by NSi setting out a detailed estimate of all costs involved in relation to achieving
the milestones set out in SCHEDULE 5.

 

License
Agreement means the license agreement in a form set out in SCHEDULE 8.

 

New
Shareholder means any person who becomes a Shareholder after the Commencement Date.

 

Notice
has the meaning identified in clause 19.

 

NSi
means NewSouth Innovations Pty Limited (ACN 000 263 025).

 

PENAO
IP means the anti-cancer compound known as “PENAO”, including any intellectual property rights subsisting in that
compound.

 

Secretary
means the secretary of the Company.

 

Share
means an ordinary share in the capital of the Company.

 

Shareholder
means the holder of a Share.

 

Simple
Majority means more than 50% of the votes that are entitled to be cast by persons present (either in person or, where proxies
are allowed, by proxy) in relation to a particular resolution.

 

Special
Majority means at least 75% of the votes that are entitled to be cast by persons present (either in person or, where
proxies are allowed, by proxy) in relation to a particular resolution.

 

Term
Sheet means the term sheet for Beroni Investment in Cystemix between Cystemix Pty Limited (ACN 102 348 181), NSi and Beroni
executed on 28 March 2018.

 

Transaction
Documents means any one or more of:

 

	 	(a)	the
    License Agreement; and
	 	 	 
	 	(b)	the
    Constitution.

 

	1.2	Interpretation

 

In
this agreement, unless the subject or context otherwise requires:

 

	 	(a)	a
    reference to any legislation or legislative provision includes any statutory modification or re-enactment of, or legislative
    provision substituted for, and any subordinate legislation issued under, that legislation or legislative provision;
	 	 	 
	 	(b)	the
    singular includes the plural and vice versa;
	 	 	 
	 	(c)	a
    reference to an individual or person includes a corporation, firm partnership, joint venture, association, authority, trust,
    state or government and vice versa;

 

    	PENAO Pty Ltd – Shareholders’ Agreement	4

     

    

 

	 	(d)	a
    reference to a clause or schedule is to a clause of schedule of this agreement;
	 	 	 
	 	(e)	the
    background, schedules and description of the parties all form part of this agreement;
	 	 	 
	 	(f)	a
    reference to any agreement or document is to that agreement or document (and, where applicable, any of its provisions) as
    amended, novated, supplemented or replaced from time to time;
	 	 	 
	 	(g)	a
    reference to any party to this agreement or any other document or arrangement includes that party’s executors, administrators,
    substitutes, successors and permitted assigns;
	 	 	 
	 	(h)	where
    an expression is defined, another part of speech or grammatical form of that expression has a corresponding meaning;
	 	 	 
	 	(i)	a
    reference to a matter being written includes that matter being in any mode of representing or reproducing words, figures or
    symbols in written form; and
	 	 	 
	 	(j)	a
    reference to dollars or $ is to Australian currency.

 

	1.3	Headings

 

In
this agreement, headings are for convenience of reference only and do not affect interpretation.

 

	2	Commencement

 

	 	(a)	Subject
    to clause 3, this agreement commences on the Commencement Date.
	 	 	 
	 	(b)	The
    parties agree that upon the signing this agreement the Term Sheet is terminated with immediate effect.

 

	3	Condition
    Precedent

 

	3.1	Conditions

 

	 	(a)	This
    agreement (other than clauses 2, 3, 13, 14 and 16 to 21) will not commence unless the Conditions Precedent specified in SCHEDULE
    3 have been completed by the date specified in SCHEDULE 3.
	 	 	 
	 	(b)	If
    the Conditions Precedent have not been satisfied (or waived by the party having the benefit of the Conditions Precedent) by
    the date specified in SCHEDULE 3, this agreement is at an end as to its future operation, except for the enforcement of any
    right or claim which has arisen before that time.

 

	3.2	Reasonable
    endeavours

 

	 	(a)	Each
    party must use its reasonable endeavours to obtain the fulfilment of the Conditions Precedent listed in SCHEDULE 3, including
    procuring the performance by a third party.
	 	 	 
	 	(b)	The
    parties must keep each other informed of any circumstances which may result in any Conditions Precedent not being satisfied
    in accordance with its terms.

 

	4	Business
    and Objectives

 

	4.1	Nature
    of Business

 

The
Company will, itself or through subsidiaries:

 

	 	(a)	own
    and maintain the PENAO IP;

 

    	PENAO Pty Ltd – Shareholders’ Agreement	5

     

    

 

	 	(b)	carry
    on the business of commercialising the PENAO IP; and
	 	 	 
	 	(c)	not
    carry on any business other than the Business, unless authorised in accordance with this agreement.

 

	4.2	Objectives

 

The
parties agree that the primary objectives and purposes of the parties in entering into this agreement are:

 

	 	(a)	for
    the Company, and any subsidiaries, to carry on the Business; and
	 	 	 
	 	(b)	to
    maximise the financial returns from the Company to Shareholders.

 

	4.3	Exercise
    of powers

 

	 	(a)	Each
    Shareholder (insofar as it can lawfully do so) must:

 

	 	 	(i)	exercise
    its powers in relation to the Company to ensure that the Company complies with this agreement and the Constitution, and that
    the Company and any subsidiary carries on and conducts the Business in a proper and efficient manner in accordance with sound
    business practices and for its own benefit;
	 	 	 	 
	 	 	(ii)	do
    or procure to be done all such acts and things as that Shareholder is able to do or procure to be done to give full effect
    to this agreement;
	 	 	 	 
	 	 	(iii)	ensure
    that each subsidiary acts and is regulated consistently with the requirements of this agreement as if the subsidiary were
    (with necessary changes) the Company (unless this agreement provides otherwise); and
	 	 	 	 
	 	 	(iv)	not
    unreasonably delay any action, consent or decision required by that Shareholder under this agreement.

 

	 	(b)	The
    obligations of each Shareholder under clause 4.3(a) include an obligation to exercise its powers both as a Shareholder and
    (where applicable and to the extent permitted by law) through any Director appointed by it and (to the extent permitted by
    law and subject to any rights it may have under clause 5.6(b)) to ensure that any Director appointed by it does or obtains
    the relevant matter or thing referred to in clause 4.3(a).

 

	4.4	Shareholders’
    duties

 

To
the maximum extent permitted by law, no Shareholder shall owe any other Shareholder any duty or obligations in relation to the
Company or any subsidiary except as set out in this agreement and, to the extent that it is not inconsistent with this agreement
or the Constitution.

 

	4.5	Exclusion
    of agency and partnership

 

	 	(a)	Nothing
    in this agreement is to be treated as creating a partnership between any of the parties or under the laws of any applicable
    jurisdiction.
	 	 	 
	 	(b)	Except
    as specifically provided in this agreement, no party may act, or has any authority to act, as agent of or trustee for, or
    in any way bind or commit any other party, to any obligation.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	6

     

    

 

	4.10	Company’s
    obligations

 

	 	(a)	The
    Company must do all things necessary or desirable to give effect to the provisions and intentions of this agreement in accordance
    with its terms and is bound by all provisions of this agreement which expressly or by implication apply to the Company.
	 	 	 
	 	(b)	The
    Company must perform, or ensure the performance of, any action within its power or control necessary or desirable to ensure
    that each subsidiary acts and is regulated consistently with the requirements of this agreement as if the subsidiary were
    (with necessary changes) the Company (unless this agreement provides otherwise).

 

	4.11	Obligation
    of good faith

 

Each
party agrees and declares that it will, at all times, act in good faith in relation to the other parties in relation to all matters
relating to the Company and the business of the Company.

 

	5	Operation
    of Company

 

	5.1	Right
    to vote

 

	 	(a)	Subject
    to clause 10.2(a), when a resolution is considered at a meeting of Shareholders, each Shareholder is entitled to cast one
    vote for each Share held by that Shareholder.
	 	 	 
	 	(b)	Except
    as otherwise provided in this Agreement, a Shareholder may have regard to and represent the interests of the Shareholder and
    may act on the wishes of that Shareholder in exercising any power to vote in relation to the Company.

 

	5.2	Shareholders
    meetings

 

	 	(a)	Meetings
    of Shareholders must be convened and held in accordance with the Constitution.
	 	 	 
	 	(b)	At
    meetings of Shareholders, only the items specified in the notice convening the meeting may be considered, unless:

 

	 	 	(i)	a
    representative of each Shareholder is present; and
	 	 	 	 
	 	 	(ii)	all
    the representatives of Shareholders present have otherwise agreed.

 

	 	(c)	Subject
    to the Constitution and clause 5.2(d) and except as required by law, a resolution considered at a meeting of Shareholders
    may be passed by a Simple Majority.
	 	 	 
	 	(d)	A
    resolution to be considered at a meeting of Shareholders and dealing with a matter listed in Part A of SCHEDULE 4 must be
    passed by a Special Majority.
	 	 	 
	 	(e)	A
    Shareholder who has a material conflict of interest in relation to a matter that is being considered at a meeting of Shareholders,
    must not:

 

	 	 	(i)	vote
    on the matter; or
	 	 	 	 
	 	 	(ii)	be
    present while the matter is being considered at the meeting, 
	 	 	 	 
	 	 	except either:
	 	 	 	 
	 	 	(iii)	with
    the consent of all other Shareholders present and entitled to vote; or
	 	 	 	 
	 	 	(iv)	where
    the interest is as a holder of securities in the Company.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	7

     

    

 

	 	(f)	A
    quorum required for meetings of Shareholders will not lapse simply because a Shareholder who attends a meeting of Shareholders
    is prohibited from being present at that meeting pursuant to clause 5.2(e).
	 	 	 
	 	(g)	Shareholders
    may meet in person, or by telephone or other instantaneous means of audio or video conferencing.
	 	 	 
	 	(h)	A
    Shareholder is considered present at a meeting of Shareholders if the Shareholder is able to hear the entire meeting and be
    heard by all others attending the meeting.

 

	5.3	Board

 

	 	(a)	The
    Board will be comprised of:

 

	 	 	(i)	two
    Directors appointed by NSi;
	 	 	 	 
	 	 	(ii)	two
    Directors appointed by Beroni; and
	 	 	 	 
	 	 	(iii)	one
    Director appointed in accordance with clause 5.9.

 

	 	(b)	From
    exercise of the Call Option, the Board will be comprised of:

 

	 	 	(i)	two
    Directors appointed by NSi; and
	 	 	 	 
	 	 	(ii)	three
    Directors appointed by Beroni.

 

	 	(c)	The
    Board will permit a Director to invite an observer to a Board meeting and the Board may agree to invite additional persons
    to also attend as observers. Observers have no voting rights and no speaking rights unless invited to speak.
	 	 	 
	 	(d)	A
    Shareholder who is entitled to appoint a person as a Director pursuant to clauses 5.3(a) and 5.3(b) may remove that person
    as a Director and appoint another person in his or her place.
	 	 	 
	 	(e)	An
    appointment or removal pursuant to clauses 5.3(a) and 5.3(b) must be:

 

	 	 	(i)	effected
    by notice in writing by or on behalf of the relevant Shareholder and delivered to the registered office of the Company; and
	 	 	 	 
	 	 	(ii)	accompanied
    by a consent to act as a Director, signed by the person appointed and in the form required by law.

 

	 	(f)	A
    Shareholder that removes or replaces a Director appointed by it must indemnify the other Shareholders and the Company against
    any claim for unfair or wrongful dismissal or any other claim whatsoever arising out of the removal of that Director.

 

	5.4	Voting
    of Directors based on shareholding

 

	 	(a)	Subject
    to clauses 5.4(b) and 5.4(c), each Director is entitled to cast one vote at a meeting of the Board.
	 	 	 
	 	(b)	The
    Director referred to in clause 5.3(a)(iii) will have a casting vote only.
	 	 	 
	 	(c)	A
    resolution to be considered at a meeting of the Board and dealing with a matter listed in Part B of SCHEDULE 4 must be passed
    by a Special Majority.
	 	 	 
	 	(d)	Subject
    to clause 5.4(c), a resolution considered at a meeting of the Board may be passed by a Simple Majority.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	8

     

    

 

	5.5	Meetings
    of the Board

 

		(a)	Any
                                         Director may call a Board meeting by giving 72 hours prior notice, unless all the Directors
                                         otherwise agree in writing.

 

		(b)	Subject
                                         to clause 5.5(c), a quorum for meetings of the Board is one Director appointed by each
                                         of NSi and Beroni.

 

		(c)	A
                                         quorum required for meetings of the Board pursuant to clause 5.5(b) will not lapse because
                                         a Director who attends a meeting of the Board is prohibited from being present at part
                                         of that meeting pursuant to clause 5.6(b)(ii).

 

		(d)	Meetings
                                         of the Board will be held in Sydney, New South Wales, unless all the Directors otherwise
                                         agree in writing.

 

		(e)	Any
                                         Director may appoint a person, being an officer or employee of the Shareholder who appointed
                                         that Director, to be his or her alternate director to act in his or her place at such
                                         times as the Director may determine.

 

		(f)	To
                                         the extent that it does not conflict with the Constitution, an alternate director:

 

	 		(i)	may
                                         act in the place of the Director who appointed him or her;

 

	 		(ii)	is
                                         entitled to attend and vote and be counted in determining a quorum at any meeting of
                                         the Board, except while the Director who appointed him or her is present.

 

	 		(iii)	has
                                         all the rights and powers of the Director who appointed him or her, except the power
                                         to appoint an alternate director, and is subject to the duties of the Director who appointed
                                         him or her; and

 

	 		(iv)	may
                                         act as an alternate director to more than one Director and is entitled to one vote in
                                         respect of each Director who appoints him or her, where the appointing Director is not
                                         present.

 

		(g)	The
                                         Directors may meet in person, or by telephone or other instantaneous means of audio or
                                         video conferencing.

 

		(h)	For
                                         the purposes of clauses 5.5(c) and 5.5(g), a Director is treated as being present at
                                         a meeting of the Board if the Director is able to hear the entire meeting and be heard
                                         by all others attending the meeting.

 

		(i)	A
                                         meeting of the Board may only consider the business set out in the notice convening the
                                         meeting, unless all the Directors otherwise agree.

 

	5.6	Responsibilities
                                         of the Board and Directors

 

		(a)	Subject
                                         to this agreement and the Constitution, the Board is responsible for managing the business
                                         and affairs of the Company, including but not limited to:

 

	 		(i)	establishing
                                         its general policies;

 

	 		(ii)	establishing
                                         its strategic priorities and objectives;

 

	 		(iii)	establishing
                                         its financial objectives and criteria;

 

	 		(iv)	determining
                                         matters of a major or unusual nature which are not in its ordinary course of business;
                                         and

 

    	PENAO Pty Ltd – Shareholders’ Agreement	9

     

    

 

	 		(v)	developing
                                         and adopting a Business Plan and Budget for each Financial Year.

 

		(b)	The
                                         parties acknowledge that:

 

	 		(i)	a
                                         Director may take into account the interests of that Director’s appointor and may
                                         act on the wishes of that appointor in performing any of his or her duties or exercising
                                         any power, right or discretion as a Director in relation to the Company, except in any
                                         particular case where no honest and reasonable Director could have formed the view that,
                                         in doing so, the Director was acting in good faith and in the interests of the Company
                                         as a whole; and

 

	 		(ii)	a
                                         Director who has a material personal interest in a matter that is being considered at
                                         a meeting of the Board must:

 

	 	 	 	(A)	disclose
                                         that interest;

 

	 	 		(B)	not
                                         vote on the matter;

 

	 	 		(C)	if
                                         required by a majority of Directors present at the meeting, not be present while the
                                         matter is being considered; and

 

	 	 		(D)	comply
                                         in all respects with the law.

 

	5.7	Disclosures
                                         by Board and Directors

 

		(a)	Subject
                                         to clause 5.7(b), a Director may disclose to:

 

	 		(i)	the
                                         party who appointed the Director; or

 

	 	 	(ii)	any
    other person to whom that party has a duty to disclose information, all information made available to the Director about the
    affairs of the Company.

 

		(b)	A
                                         Director must use reasonable endeavours to ensure that the person to whom the Director
                                         discloses the information referred to in clause 5.7(a) maintains the confidentiality
                                         of the information.

 

	5.8	Chair
                                         of the Board

 

		(a)	A
                                         Director will be appointed as the chair of the Board.

 

		(b)	The
                                         chair of the Board may be appointed and removed as chair by the Board from time to time
                                         on agreement of all Directors other than the chair.

 

		(c)	If
                                         there is no Director appointed as chair of the Board pursuant to clause 5.8(b), the Board
                                         may:

 

	 		(i)	elect
                                         a Director as chair of the Board; and

 

	 		(ii)	determine
                                         the period for which that person is to hold that office.

 

		(d)	If
                                         the chair of the Board is a person independent from the Shareholders:

 

	 		(i)	at
                                         any meeting of the Board, the chair of the Board will not have a deliberative vote but
                                         will have a casting vote; and

 

	 		(ii)	in
                                         any other case, the chair of the Board will have a deliberative vote but not a casting
                                         vote.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	10

     

    

 

		(e)	The
                                         chair of the Board, if present at a shareholder meeting of the Company, will also be
                                         chair of that meeting, but will have no vote.

 

	5.9	Independent
                                         Director

 

The
Board may from time to time unanimously appoint and remove as a Director a person independent from the Shareholders subject to
the Corporations Act.

 

	6	Business
                                         obligations

 

	6.1	Dividends

 

		(a)	The
                                         Company is not required to declare dividends but may do so in accordance with the Constitution
                                         and Corporations Act.

 

		(b)	The
                                         Board may resolve that the Company must set aside such sums as the Board thinks proper
                                         to apply:

 

	 		(i)	in
                                         fulfilment of the Company’s debt repayment obligation;

 

	 		(ii)	the
                                         recoupment of past losses;

 

	 		(iii)	to
                                         maintain the solvency of the Company; and

 

	 		(iv)	to
                                         meet future capital expenditure requirements.

 

	6.2	Approval
                                         of Business Plan and Budgets

 

		(a)	The
                                         Board must consider and adopt a Business Plan and Budget for each Financial Year:

 

	 		(i)	for
                                         the first Financial Year, within 90 days after the Commencement Date; and

 

	 		(ii)	for
                                         each subsequent Financial Year, at least 30 days before the commencement of that Financial
                                         Year.

 

		(b)	The
                                         Board must consider and adopt a Business Plan and Budget for each Financial Year in the
                                         following manner:

 

	 		(i)	the
                                         CEO will submit to the Board a draft Business Plan and draft Budget for that Financial
                                         Year; and

 

	 		(ii)	the
                                         Board must consider the drafts and use all reasonable endeavours to amend and approve
                                         them within 30 days after submission.

 

	6.3	Amendment
                                         of Business Plan and Budgets

 

		(a)	The
                                         Board may, either before or during the Financial Year to which a Business Plan or Budget
                                         relates, amend the relevant Business Plan or Budget.

 

		(b)	The
                                         Board must ensure that, following an amendment, the Business Plan and Budget for that
                                         Financial Year remains consistent.

 

	6.4	Compliance
                                         with Business Plan and Budget

 

During
a Financial Year, the Company must, so far as is practicable, conduct its business in accordance with the Business Plan and Budget
adopted by the Board for that Financial Year.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	11

     

    

 

	6.5	Reporting
                                         obligations

 

		(a)	The
                                         Company must ensure that the Directors receive management and financial information,
                                         and reports, sufficient to allow them to:

 

	 		(i)	understand
                                         the financial affairs of the Company; and

 

	 		(ii)	control
                                         the efficient operation of the Company.

 

		(b)	The
                                         Company must provide the financial reports and information listed in SCHEDULE 7 at the
                                         times specified in SCHEDULE 7 to each Director.

 

		(c)	Any
                                         information provided by the Company under clause 6.5 is provided subject to clause 14.

 

	7	Restrictions
                                         relating to Shares

 

	7.1	No
                                         right to encumber

 

A
Shareholder must not create, or allow to continue, any Encumbrance over any Shares held by that Shareholder without the Board’s
prior approval.

 

	7.2	Restriction
                                         on dealing

 

A
Shareholder must not otherwise deal with the whole or any part of its right, title or interest in any of its Shares except:

 

		(a)	in
                                         accordance with clause 8(b); and

 

		(b)	as
                                         otherwise required or permitted by SCHEDULE 5.

 

	8	New
                                         Shareholders

 

		(a)	No
                                         person other than a party to this agreement may become a Shareholder except as permitted
                                         by SCHEDULE 5.

 

		(b)	A
                                         Shareholder may not transfer a Share to any person unless that person has first executed
                                         and delivered to the other Shareholders a Deed of Accession.

 

	9	Limitation
                                         of liability

 

		(a)	Notwithstanding
                                         any other provision contained in this agreement, the Founding Shareholders are not liable
                                         to make any payment for any claim arising out of a breach of any warranty, representation
                                         or indemnity given by the Founding Shareholders to the extent that the claim is based
                                         on any fact, matter or circumstance:

 

	 		(i)	consented
                                         to in writing by New Shareholders;

 

	 		(ii)	provided
                                         for in this agreement; or

 

	 		(iii)	disclosed
                                         in writing by any member of the Company or any of the Founding Shareholders to New Shareholders.

 

		(b)	Any
                                         liability of the Founding Shareholders with respect to a breach of any warranty, representation
                                         or indemnity provided under this agreement will cease 4 years after the Commencement
                                         Date, except for a claim for breach of warranty, representation or indemnity which has
                                         been the subject of a written notice of claim made by the Company or the New Shareholders
                                         to the Founding Shareholders before that date, setting out in reasonable detail the nature
                                         of the alleged breach and the approximate amount of compensation sought for the breach.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	12

     

    

 

		(c)	Any
                                         compensation payable to the New Shareholders by the Founding Shareholders under this
                                         clause 9 is limited to the total amount paid by each New Shareholder in consideration
                                         for the allotment of their shareholding in the Company.

 

	10	Default

 

	10.1	Event
                                         of Default

 

An
Event of Default occurs when:

 

		(a)	a
                                         Shareholder:

 

	 		(i)	breaches,
                                         or fails to perform its obligations under, a provision of this agreement, if that provision
                                         is a condition;

 

	 		(ii)	commits
                                         a material breach of this agreement, if that breach:

 

	 	 		(A)	is
                                         incapable of remedy; or

 

	 	 		(B)	if
                                         capable of remedy, continues for 15 Business Days after that Shareholder is given a notice
                                         by a non-defaulting party that requires that the breach be remedied;

 

	 		(iii)	is
                                         repeatedly or persistently in breach of, or in default under, any of the provisions of
                                         this agreement and that breach or default results in a material adverse effect on:

 

	 	 		(A)	the
                                         ability of that Shareholder to perform its obligations under this agreement; or

 

	 	 		(B)	any
                                         other Shareholder or the Company;

 

		(b)	a
                                         process is filed which seeks an order which:

 

	 		(i)	if
                                         granted, would render a Shareholder to be an externally-administered body corporate or
                                         an insolvent under administration; and

 

	 		(ii)	the
                                         process is not withdrawn within 21 Business Days; or

 

		(c)	a
                                         Shareholder that is a body corporate becomes an externally-administered body corporate.

 

	10.2	Consequences
                                         of default

 

		(a)	If
                                         an Event of Default occurs:

 

	 		(i)	the
                                         Defaulting Party is not entitled to vote at meetings of Shareholders until the Event
                                         of Default is remedied;

 

	 		(ii)	the
                                         Defaulting Party will continue to be bound by the confidentiality obligations in clause
                                         14; and

 

	 		(iii)	the
                                         Defaulting Party indemnifies and agrees to keep indemnified the Company and the other
                                         Shareholders against any loss, liabilities, costs and expenses which are incurred by
                                         that other party and arose directly out of the Event of Default (including the costs
                                         of implementing the procedure in clause 10.3).

 

    	PENAO Pty Ltd – Shareholders’ Agreement	13

     

    

 

		(b)	If
                                         the relevant default:

 

	 	 	(i)	is
                                         not remedied within fifteen Business Days after a Shareholder serves notice on the Defaulting
                                         Party requiring the default to be remedied; or
	 	 	 	 
	 	 	(ii)	if
    the relevant default is incapable of being remedied, clause 10.3 will apply.

 

		(c)	This
                                         clause 10.2 does not prohibit the Company or a Shareholder (other than the Defaulting
                                         Party) from exercising any right or remedy available to it, other than as set out in
                                         this clause.

 

	10.3	Company
                                         authorised to sell Shares

 

		(a)	If,
                                         because of clause 10.2(b), this clause 10.3 applies, the Defaulting Party irrevocably
                                         appoints the Company and every Director severally as its attorney to:

 

	 		(i)	sell
                                         all its Shares;

 

	 		(ii)	take
                                         all action required under SCHEDULE 5 to affect the sale; and

 

	 		(iii)	execute
                                         and deliver:

 

	 	 		(A)	a
                                         disposal notice in accordance with SCHEDULE 5 (Disposal Notice);

 

	 	 		(B)	an
                                         instrument of transfer in relation to the Shares; and

 

	 	 		(C)	any
                                         other document that, in the opinion of the attorney, is necessary or appropriate to enable
                                         the sale of the Shares.

 

		(b)	Within
                                         a reasonable time after an Event of Default occurs:

 

	 		(i)	the
                                         Company must request that the auditor of the Company determine the fair market value
                                         of the Shares; and

 

	 		(ii)	upon
                                         the determination, the Company must, as attorney of the Defaulting Party, deliver a Disposal
                                         Notice to each Shareholder (other than the Defaulting Party) in relation to the Shares,
                                         with the Transfer Price (being the value determined by the auditor),

 

and
the remaining provisions of SCHEDULE 5 will then apply in relation to the transfer of the Shares.

 

	10.4	Consequential
                                         Loss

 

No
party will be liable to another party for any Consequential Loss in any circumstances (whether under this agreement or in negligence
or otherwise in connection with the performance or non- performance a party’s obligations under this agreement) caused otherwise
than by any fraudulent or reckless act or omission or any act which is intended to cause loss.

 

	11	Dispute
                                         resolution

 

	11.1	Dispute

 

A
dispute relating to, or arising out of, this agreement (Dispute) exists when a party gives notice (Dispute Notice)
to each other party:

 

		(a)	stating
                                         that there is a Dispute; and

 

    	PENAO Pty Ltd – Shareholders’ Agreement	14

     

    

 

		(b)	detailing
                                         the subject of the Dispute.

 

	11.2	Procedure

 

		(a)	When
                                         a Dispute exists, the chief executive officers of each party (or their nominees) will
                                         meet to discuss the resolution of the Dispute in good faith.

 

		(b)	If
                                         the persons in clause 11.2(a):

 

	 		(i)	resolve
                                         the Dispute, then the resolution will be set out in a statement signed by the chief executive
                                         officer of each party; or

 

	 		(ii)	cannot
                                         resolve the Dispute within 10 Business Days (or other period as agreed in writing by
                                         the parties after the Dispute Notice has been given to all parties), the Dispute must
                                         be referred to mediation in accordance with, and subject to, The Institute of Arbitrators
                                         and Mediators Australia Rules for the Mediation of Commercial Disputes.

 

	11.3	Place
                                         of mediation

 

All
mediation proceedings are to be held in Sydney, Australia (or in any other place agreed to in writing between the parties to the
Dispute).

 

	11.4	Application
                                         to court

 

If
there is no resolution of the Dispute within 30 Business Days of mediation under clauses 11.2(b)(ii) and 11.3, any party may commence
legal proceedings in any court or tribunal in relation to a matter that is the subject of a Dispute.

 

	11.5	Costs
                                         of dispute resolution

 

		(a)	The
                                         costs and disbursements of the mediator will be paid equally by the Shareholders.

 

		(b)	Each
                                         Shareholder will pay its own costs and disbursements in relation to any procedure referred
                                         to in clause 11.2.

 

	11.6	Continuing
                                         obligations

 

The
parties to this agreement must continue to perform their respective obligations under this agreement, except to the extent that
the matter cannot be proceeded with until the Dispute has been determined (provided that a party has acted reasonably in relation
to the Dispute).

 

	12	Constitution

 

	12.1	Documents
                                         to be read together

 

Subject
to clause 12.2, the parties agree that the instruments which govern the relationship between themselves as Shareholders are:

 

		(a)	this
                                         agreement; and

 

		(b)	the
                                         Transaction Documents,

 

and
it is intended that they will be read together.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	15

     

    

 

	12.2	Agreement
                                         prevails

 

If
there is any inconsistency between the provisions of this agreement and the Transaction Documents:

 

		(a)	the
                                         Transaction Documents are to be read subject to this agreement; and

 

		(b)	the
                                         provisions of this agreement prevail to the extent of the inconsistency.

 

	13	Warranties
                                         and representations

 

	13.1	Warranties
                                         and reliance

 

Each
party warrants and represents to each of the other parties that, at the date of this agreement and at the Commencement Date:

 

		(a)	the
                                         execution and delivery of this agreement has been properly authorised by all necessary
                                         corporate and other actions;

 

		(b)	it
                                         has full corporate or statutory power and authority to execute and deliver this agreement
                                         and to perform or cause to be performed its obligations under this agreement;

 

		(c)	it
                                         has full corporate or statutory power and authority to be the registered holder and (except
                                         where the party enters into this agreement as trustee of a trust) beneficial owner of
                                         the agreement (except in the case of the Company);

 

		(d)	this
                                         agreement constitutes a legal, valid and binding obligation on it;

 

		(e)	this
                                         agreement does not conflict with, or result in the breach of, or default under, the provision
                                         of the Constitution or other constituent documents or any material term or provision
                                         of any agreement or deed or any writ, order or injunction, judgment, law, rule or regulation
                                         to which it is a party or is subject or by which it is bound; and

 

		(f)	to
                                         its knowledge, there are no actions, claims, proceedings or investigations pending or
                                         threatened against it which could have a material effect upon the subject matter of this
                                         agreement.

 

	13.2	No
                                         reliance on representations

 

Each
party warrants and represents to each of the other parties that:

 

		(a)	it
                                         has not relied; and

 

		(b)	it
                                         will not rely during the currency of this agreement,

 

on
any representation or communication made by another party on, or before, the Commencement Date, except as made in or under this
agreement and the Transaction Documents.

 

	14	Confidentiality

 

	14.1	Confidential
                                         Information

 

		(a)	For
                                         the purposes of this agreement, Confidential Information means all information (whether
                                         written or oral) disclosed by a party (Disclosing Party) to the other party (Receiving
                                         Party) which is either:

 

	 		(i)	identified
                                         as confidential by the Disclosing Party at the time of disclosure; or

 

    	PENAO Pty Ltd – Shareholders’ Agreement	16

     

    

 

	 		(ii)	of
                                         a nature which should reasonably be regarded by the Receiving Party as confidential,

 

but
does not include information which:

 

	 		(iii)	was
                                         in the public domain when it was given to the Receiving Party;

 

	 		(iv)	becomes,
                                         after being given to the Receiving Party, part of the public domain, except through disclosure
                                         contrary to this agreement;

 

	 		(v)	was
                                         in the Receiving Party’s possession at the time of disclosure;

 

	 		(vi)	the
                                         Receiving Party lawfully receives from a third party which has the right to disclose
                                         it to the Receiving Party; or

 

	 		(vii)	the
                                         Receiving Party is required by law, by an order of a court or tribunal or by the requirements
                                         of a stock exchange to disclose.

 

		(b)	The
                                         subject matter and terms and conditions of the Transaction Documents, the conduct of
                                         the business of the Company, negotiations between the parties and the activities of the
                                         Company are Confidential Information (unless such information is the subject of clauses
                                         14.1(a)(iii), 14.1(a)(iv), 14.1(a)(v), 14.1(a)(vi), and 14.1(a)(vii)) and is deemed to:

 

	 		(i)	have
                                         been disclosed by each party to the other; and

 

	 		(ii)	be
                                         of a nature which should reasonably be regarded by each party as confidential.

 

	14.2	Obligations
                                         of Receiving Party

 

		(a)	The
                                         Receiving Party must:

 

	 		(i)	use
                                         the Confidential Information solely as contemplated by this agreement, unless further
                                         use of the Confidential Information is specifically authorised in writing by the Disclosing
                                         Party;

 

	 		(ii)	keep
                                         all Confidential Information secret and confidential;

 

	 		(iii)	use
                                         reasonable care to protect the Confidential Information, whether in storage or in use,
                                         against public disclosure;

 

	 		(iv)	not
                                         disclose the Confidential Information to, or in the presence of, any director, officer,
                                         employee, adviser, financier, potential financier or agent of the Receiving Party, unless
                                         that person:

 

	 	 		(A)	requires
                                         the information for the purposes of this agreement; and

 

	 	 		(B)	has
                                         made an undertaking to keep Confidential Information strictly confidential.

 

	 	(b)	The
                                         Receiving Party must:

 

	 		(i)	promptly
                                         notify the Disclosing Party if it becomes aware of any breach of confidentiality by any
                                         person to whom it has divulged Confidential Information or by any person who has become
                                         aware of Confidential Information; and

 

	 		(ii)	provide
                                         the Disclosing Party and each other party all reasonable assistance in connection with
                                         any proceedings against such person for breach of confidentiality or otherwise.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	17

     

    

 

	14.3	Shareholder’s
                                         information

 

		(a)	Nothing
                                         in this clause 14 is to be treated as prohibiting or restraining any information concerning
                                         the business or affairs of the Company:

 

	 		(i)	which
                                         is received by a Director, whether orally or otherwise, from being disclosed by that
                                         Director to:

 

	 	 		(A)	the
                                         party which appointed that Director; or

 

	 	 		(B)	to
                                         any other person to whom that party has a duty to disclose such information, provided
                                         they undertake to keep confidential the information disclosed;

 

	 		(ii)	which
                                         is in the possession of a party that is a related body corporate of another corporation,
                                         from being disclosed to that corporation, provided that the corporation undertakes to
                                         keep confidential the information disclosed;

 

	 		(iii)	from
                                         being disclosed to a potential purchaser of Shares provided that such purchaser undertakes
                                         to keep confidential the information disclosed; or

 

	 		(iv)	from
                                         being disclosed if the parties agree it is no longer Confidential Information.

 

		(b)	The
                                         parties agree to take no action to prohibit or prevent any such disclosure as long as
                                         such disclosure complies with the restrictions set out in clause 14.

 

	14.4	Return
                                         of Confidential Information

 

		(a)	All:

 

	 		(i)	Confidential
                                         Information provided by a Disclosing Party to a Receiving Party; and

 

	 		(ii)	copies
                                         made by the Receiving Party’s directors, officers or employees or any other person to
                                         whom the Receiving Party disclosed the Confidential Information in accordance with this
                                         agreement,

 

must
be returned to the Disclosing Party on receipt of a request from the Disclosing Party for its return, except to the extent that
the Receiving Party is obliged by law to keep records of its business.

 

		(b)	If
                                         the Receiving Party has generated its own internal documents containing the Confidential
                                         Information:

 

	 		(i)	these
                                         may be destroyed rather than returned to the Disclosing Party; and

 

	 		(ii)	the
                                         Receiving Party must provide to the Disclosing Party written confirmation that the destruction
                                         has taken place.

 

	14.5	Enforcement

 

Nothing
in this agreement prohibits the Receiving Party from disclosing the contents of this agreement to the extent necessary to enable
it to enforce its rights under this agreement or any other agreement.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	18

     

    

 

	15	Intellectual
                                         property rights

 

Ownership

 

All
intellectual property rights owned by the Company:

 

		(a)	are
                                         the property of the Company; and

 

		(b)	must
                                         not be used by any of the other parties unless otherwise agreed in writing by the Company.

 

	16	Accounts
                                         and Records

 

	16.1	Regulatory
                                         requirements

 

The
Company must ensure that its records and accounting books are:

 

		(a)	kept
                                         in accordance with the Corporations Act;

 

		(b)	audited
                                         yearly by the Company’s auditors; and

 

		(c)	reflect
                                         the Accounting Standards consistently applied.

 

	16.2	Right
                                         to review

 

		(a)	Subject
                                         to clause 14, after giving at least five Business Days’ notice to the Company,
                                         each Shareholder may, during business hours through an accountant, agent, consultant
                                         or employee of the Shareholder:

 

	 		(i)	inspect,
                                         and take photocopies using the Group’s facilities of, all the books, accounts and financial
                                         records of the Company; and

 

	 		(ii)	have
                                         full access to the Group’s facilities,

 

for
the purpose of auditing or valuing the Group or any other reasonable purpose.

 

		(b)	The
                                         Shareholder must pay any costs of the auditor, valuer or any other person’s costs incurred
                                         in connection with the audit or valuation.

 

	16.3	Disclosure
                                         of information

 

A
Shareholder may only disclose any information obtained under clause 16.2 in accordance with clause 14.

 

	17	Restraint

 

	17.1	Definitions

 

In
this clause 17 a reference to the Business is to the Business as at the date when the relevant Shareholder stops being a Shareholder.

 

	17.2	Prohibited
                                         activities

 

Each
Shareholder undertakes to the Company and each other Shareholder that it will not intentionally:

 

		(a)	solicit,
                                         canvass, approach or accept an approach from a person who was at any time during the
                                         six months ending on the date when the Shareholder stops being a Shareholder, a customer
                                         of the Group with a view to obtaining their custom in a business that is the same or
                                         similar to the Business and is in competition with the Business;

 

    	PENAO Pty Ltd – Shareholders’ Agreement	19

     

    

 

		(b)	interfere
                                         with the relationship between the Group and its customers, employees or suppliers; or

 

		(c)	induce
                                         or help to induce an employee of the Group to leave their employment.

 

	17.3	Duration
                                         of prohibition

 

The
undertakings in clause 17.1 begin when the Shareholder becomes a Shareholder and end 24 months after the date when the Shareholder
stops being a Shareholder.

 

	17.4	Interpretation

 

Clauses
17.2 and 17.3 have effect together as if they consisted of separate provisions, each being severable from the other. Each separate
provision results from combining each undertaking in clause 17.2, with each period in clause 17.3. If any of those separate provisions
is invalid or unenforceable for any reason, the invalidity or unenforceability does not affect the validity or enforceability
of any of the other separate provisions or other combinations of the separate provisions of clauses 17.2 and 17.3.

 

	17.5	Exceptions

 

This
clause 17 does not restrict a Shareholder from:

 

		(a)	performing
                                         any employment agreement with the Group;

 

		(b)	holding
                                         5% or less of the shares of a listed company;

 

		(c)	holding
                                         equity securities in the Company; or

 

		(d)	recruiting
                                         a person through a recruitment agency (except if the agency targets employees of the
                                         Group) or in a response to a newspaper, web page or other public employment advertisement.

 

	17.6	Acknowledgments

 

Each
Shareholder acknowledges that:

 

		(a)	all
                                         the prohibitions and restrictions in this clause 17 are reasonable in the circumstances
                                         and necessary to protect the goodwill of the Business;

 

		(b)	damages
                                         are not an adequate remedy if the Shareholder breaches this clause 17; and

 

		(c)	the
                                         Company or another Shareholder may apply for injunctive relief if:

 

	 		(i)	the
                                         Shareholder breaches or threatens to breach this clause 17; or

 

	 		(ii)	the
                                         Company or the other Shareholder believes the Shareholder is likely to breach this clause
                                         17.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	20

     

    

 

	18	Termination

 

	18.1	Termination
                                         of agreement

 

This
agreement terminates:

 

		(a)	on
                                         the date when the Company is wound up;

 

		(b)	immediately
                                         on the date on which the Shares are admitted for quotation on the official list of the
                                         Australian or Overseas Stock Exchange, pursuant to an initial public offering of the
                                         shares on the Australian or Overseas Stock Exchange;

 

		(c)	by
                                         the agreement of all of the Shareholders; or

 

		(d)	on
                                         the date on which the whole of the issued capital of the Company is transferred to a
                                         single person,

 

whichever
comes first.

 

	18.2	Consequences
                                         of termination

 

		(a)	If
                                         this agreement is terminated under clauses 18.1(a) or 18.1(c), the Company will assign
                                         any IP it owns to NSi (Assigned IP) at a nominal value. If NSi commercialises
                                         the Assigned IP it will pay to Beroni a percentage share of net commercialisation revenue
                                         which NSi actual receives, which is attributable to the Assigned IP and which will be
                                         equal to the percentage of fully paid equity that Beroni held in the Company at its winding
                                         up.

 

		(b)	Subject
                                         to clauses 18.2(c) and 18.2(d), upon termination, whether under this clause or any other
                                         provision of this agreement, this agreement will end as to its future operation.

 

		(c)	Clause
                                         18.2(a) does not prevent the enforcement of any right or claim which arises on, or has
                                         arisen before, termination.

 

		(d)	Clause
                                         18.2(a) does not apply to termination under clause 18.3.

 

	18.3	Termination
                                         in regard to a party

 

		(a)	The
                                         rights and obligations of a party under this agreement (other than the Company) will
                                         terminate immediately if that party ceases to be Shareholder.

 

		(b)	Clause
                                         18.3(a) does not prevent a party enforcing any right or claim which arises on, or has
                                         arisen before, termination of this agreement.

 

	18.4	Clauses
                                         surviving termination

 

Despite
any other provision of this agreement, clauses 14, 20 and 21 and this clause 18.4:

 

		(a)	survive
                                         the expiry or termination of this agreement;

 

		(b)	survive
                                         the termination of the rights and obligations of a party under this agreement, however
                                         caused; and

 

		(c)	continue
                                         in full force and effect.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	21

     

    

 

	19	Notices

 

	19.1	Method
                                         of giving Notices

 

A
notice, consent, approval or other communication (Notice) under this agreement must be in writing, signed by or on behalf
of the person giving it, addressed to the person to whom it is to be given and:

 

		(a)	delivered
                                         to that person’s address;

 

		(b)	sent
                                         by registered pre-paid mail to that person’s address; or

 

		(c)	sent
                                         by email to that person’s email address.

 

	19.2	Time
                                         of receipt

 

A
Notice given to a person in accordance with this clause is given and received:

 

		(a)	if
                                         delivered to a person’s address, on the day of delivery if a Business Day, otherwise
                                         on the next Business Day;

 

		(b)	if
                                         sent by registered pre-paid mail, on the third Business Day after posting; and

 

		(c)	if
                                         sent by email to a person’s email address and no failure message is received, then on
                                         the day the email was sent if it was sent on a Business Day, otherwise on the next Business
                                         Day.

 

	19.3	Addresses
                                         for Notices

 

For
the purpose of this clause 19, the address or email address of a person is the address or email address set out in SCHEDULE 1.

 

	20	Law
                                         and jurisdiction

 

	20.1	Governing
                                         law

 

This
agreement is governed by the laws in force in New South Wales, Australia.

 

	20.2	Submission
                                         to jurisdiction

 

The
parties submit to the non-exclusive jurisdiction of the courts of New South Wales, Australia and any courts which may hear appeals
from those courts in relation to any proceedings in connection with this agreement.

 

	21	General

 

	21.1	Waiver

 

		(a)	The
                                         non-exercise of, or delay in exercising, any power or right of a party does not:

 

	 		(i)	operate
                                         as a waiver of that power or right; or

 

	 		(ii)	preclude
                                         any other or further exercise of it or the exercise of any other power or right.

 

		(b)	A
                                         power or right may only be waived in writing, signed by the party to be bound by the
                                         waiver.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	22

     

    

 

	21.2	Amendment

 

This
agreement may only be amended or supplemented in writing, signed by the parties.

 

	21.3	Severability

 

If
any part of this agreement is invalid, illegal, unlawful or otherwise incapable of enforcement:

 

		(a)	that
                                         part will be severed from this agreement and will be of no force and effect;

 

		(b)	all
                                         remaining parts of this agreement will prevail and remain in full force and effect; and

 

		(c)	no
                                         part of this agreement will be construed to be dependent upon any other clause or part
                                         of a clause unless expressly stated to be.

 

	21.4	Counterparts

 

This
agreement may be executed in any number of counterparts and all of those counterparts taken together constitute one and the same
instrument.

 

	21.5	Liability
                                         of parties

 

The
rights and liabilities of the parties under this agreement are several and not joint, nor joint and several.

 

	21.6	Further
                                         assurance

 

Each
party must do and ensure that each of its employees and agents does, all acts reasonably required of it, to carry out and give
full effect to this agreement and the rights and obligations of the parties under it.

 

	21.7	Entire
                                         agreement

 

All
oral representations, communications and prior deeds in relation to the subject matter are superseded by this agreement and the
Constitution.

 

	21.8	Rights
                                         cumulative

 

The
rights and remedies provided in this agreement are cumulative with and do not exclude any rights or remedies provided by law.

 

	21.9	Costs

 

Each
party must bear, and is responsible for, its own costs (including, without limitation, legal and accounting costs) in connection
with the negotiation, preparation, execution, completion and carrying into effect of this agreement.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	23

     

    

 

Executed
as an agreement

 

 

	Executed
    on behalf of PENAO Pty Ltd (ACN 634 333 387) by an authorised officer in the presence of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
    of authorised officer
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    of authorised officer (print)
	 	 	 
	 	 	 
	Date	 	Position

 

	Executed
    on behalf of NewSouth Innovations Pty Limited (ACN 000 263 025) by an authorised officer in the presence of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
    of authorised officer
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    of authorised officer (print)
	 	 	 
	 	 	 
	Date	 	Position

 

	Executed
    on behalf of Beroni Group Limited (ACN 613 077 526) by an authorised officer in the presence of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
    of authorised officer
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    of authorised officer (print)
	 	 	 
	 	 	 
	Date	 	Position

 

    	PENAO Pty Ltd – Shareholders’ Agreement	24

     

    

 

	SCHEDULE
    1	Shareholders

 

	Shareholder
    name	 	Address
    for notices
	NewSouth
    Innovations Pty Limited (ACN 000 263 025)	 	Rupert
        Myers Building

        South
        Wing, Level 1, Gate 14, Barker Street UNSW Sydney NSW 2052

        

	 	 	 
	 	 	Contact:
    Director, Knowledge Exchange
	 	 	 
	 	 	Email:
    contracts.manager.kex@unsw.edu.au
	 	 	 
	Beroni
    Group Limited (ACN 613 077 526)	 	Suite
        401

        Level
        4, 447 Kent Street

        Sydney
        NSW 2000

	 	 	 
	 	 	Contact:
    Peter Wong
	 	 	 
	 	 	Email:
    peter.wong@beronigroup.com

 

    	PENAO Pty Ltd – Shareholders’ Agreement	25

     

    

 

	SCHEDULE 2	Share holdings of Shareholders

 

	Shareholder name	 	Shareholding	 	 	Capital contribution	 
	NewSouth Innovations Pty Limited (ACN 000 263 025)	 	 	60,000 shares	 	 	$	0.00	 
	Beroni Group Limited (ACN 613 077 526)	 	 	40,000 shares	 	 	$	400,000.00	*
	Total	 	 	100,000 shares	 	 	$	400,000.00	 

 

	*
    Funding that Beroni provided prior to execution of this Agreement.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	26

     

    

 

	SCHEDULE 3	Conditions precedent

 

	#	 	Condition	 	Date
    condition must be met
	1.	 	The
    entering into of the License Agreement by NSi and the Company.	 	30
    June 2019
	2.	 	Beroni
    is satisfied, at its sole discretion, with the Initial Project Budget.	 	30
    June 2019

 

    	PENAO Pty Ltd – Shareholders’ Agreement	27

     

    

 

	SCHEDULE 4	Resolutions requiring a Special Majority

 

Part
A Special Majority required for Shareholder Meetings

 

		(a)	Alteration
                                         of rights attaching to any existing Share, debenture, preference share or any other security
                                         in the Company.

 

		(b)	Reduction
                                         of the share capital of the Company.

 

		(c)	Winding
                                         up of the Company other than for insolvency.

 

		(d)	Sale
                                         or disposal of an asset or a number of assets in one transaction or a series of related
                                         transactions with book value greater than $1,000,000.

 

		(e)	Purchase
                                         of an asset or a number of assets in one transaction or a series of related transactions
                                         for consideration greater than $1,000,000.

 

		(f)	Material
                                         change in the nature or scale of the business of the Company.

 

		(g)	Alteration
                                         of the Constitution.

 

Part
B Special Majority required for Board Meetings

 

		(h)	Incurring
                                         of capital expenditure by the Company not included in the current Business Plan, where
                                         the amount of the proposed capital expenditure exceeds $250,000.

 

		(i)	Granting
                                         of a guarantee, security, indemnity or assurance involving a potential liability greater
                                         than $250,000.

 

		(j)	Prepayment
                                         of any interest-bearing debt.

 

		(k)	The
                                         sale or disposal of any of the Company’s shares in a subsidiary of the Company.

 

		(l)	Incurring
                                         of additional borrowings or financial accommodation over $250,000.

 

		(m)	Applying
                                         for admission to the official list of Australian Securities Exchange Limited or a recognized
                                         overseas financial market.

 

		(n)	Increase
                                         of the remuneration payable to Directors, except in accordance with the Business Plan.

 

		(o)	Entry
                                         into a contract or other arrangement with a Director or an associate of a Director, except
                                         on arm’s length terms.

 

		(p)	Encumber
                                         an asset or undertaking, except in accordance with the Business Plan.

 

		(q)	Acquisition
                                         of securities in another entity by the Company or its subsidiary.

 

		(r)	Enter
                                         into, terminate, amend, vary, assign, novate, enforce or waive a right under, a contract,
                                         except in accordance with the Business Plan.

 

		(s)	Appoint
                                         or remove the Company’s auditor.

 

		(t)	Materially
                                         alter the Accounting Standards or principles previously adopted by the Company for the
                                         preparation or presentation of any individual or consolidated financial statements, except
                                         if required by law.

 

		(u)	Change
                                         the balance date or alter the accounting period of the Company.

 

		(v)	Commence,
                                         conduct or settle any dispute or litigation (including with a tax authority) except debt
                                         collection in the ordinary course of business.

 

		(w)	Adopt
                                         or amend the terms of an employee share plan, employee share option scheme or employee
                                         share purchase scheme or any other arrangement that may give employees of the Company
                                         the right or entitlement to acquire any equity securities.

 

		(x)	Issue
                                         or grant shares or options under an employee share plan, employee share option scheme
                                         or employee share purchase scheme or other arrangement referred to in paragraph (w)
above.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	28

     

    

 

	SCHEDULE 5	Dealing with a Share

 

In
this schedule, all references to items are to provisions of this schedule and all references to clauses are to provisions in the
body of this agreement.

 

	1	Restrictions
                                         on transferring shares

 

A
Shareholder must not transfer any Share except in accordance with the remaining provisions in this schedule, unless the Shareholder
has the prior written consent of all other Shareholders.

 

	2	Rights
                                         of Refusal in favour of NSi and Beroni

 

Grant
of First Rights of Refusal

 

		(a)	Each
                                         Creator Shareholder and Beroni unconditionally and irrevocably grants to NSi a first
                                         right of refusal to purchase all or any portion of the Shares that the disposing Shareholder
                                         proposes to sell or transfer, at the same price and on the same commercial and arm’s
                                         length terms and conditions no less favourable than those offered to the prospective
                                         transferee (NSi First Right of Refusal).

 

		(b)	NSi
                                         unconditionally and irrevocably grants to Beroni a first right of refusal to purchase
                                         all or any portion of the Shares that NSi proposes to sell or transfer, at the same price
                                         and on the same commercial and arm’s length terms and conditions no less favourable
                                         than those offered to the prospective transferee (Beroni First Right of Refusal).

 

		(c)	For
                                         clarity, the First Rights of Refusal referred to in items 2(a) and 2(b) above arise at
                                         any time the relevant Shareholder proposes to sell or transfer all or any portion of
                                         its Shares.

 

		(d)	For
                                         the purposes of the remaining provisions of this item 2, “First Right of Refusal”
                                         means the NSi First Right of Refusal and the Beroni First Right of Refusal (as the case
                                         may be).

 

Exercise
of First Rights of Refusal

 

		(e)	Prior
                                         to making any sale or transfer of Shares, the disposing Shareholder must deliver a proposed
                                         transfer notice (Transfer Notice) to NSi or Beroni (as the case may be) or their
                                         respective assignees not later than 60 days prior to finalising such sale or transfer.
                                         Such Transfer Notice will contain the material commercial and arm’s length terms
                                         and conditions of the proposed sale or transfer, including the number of Shares to be
                                         sold or transferred (Transfer Shares), the identity of the prospective transferee,
                                         and the price and form of consideration.

 

		(f)	To
                                         exercise the First Right of Refusal under this item 2, NSi or Beroni (as the case may
                                         be) must deliver to the disposing Shareholder written notice that it intends to exercise
                                         the First Right of Refusal as to some or all of the Transfer Shares within 20 days after
                                         delivery of the Transfer Notice.

 

		(g)	If
                                         neither NSi nor Beroni provide the disposing Shareholder with notice in accordance with
                                         item 2(f), NSi and Beroni will be deemed to have waived their Rights of First Refusal.
                                         If the Transfer Shares are held by a Creator Shareholder, that Creator Shareholder must
                                         then comply with items 2(i) to 2(m).

 

		(h)	Payment
                                         for Transfer Shares must be made by bank cheque in exchange for delivery of the original
                                         share certificate and executed transfer of the Shares, such delivery and payment to be
                                         made no later than 10 days after the date on which NSi or Beroni provides notice of the
                                         exercise of the Right of First Refusal.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	29

     

    

 

Grant
of Second Right of Refusal

 

		(i)	If
                                         NSi fails to exercise the NSi First Right of Refusal in relation to Creator Shareholder-held
                                         Shares in accordance with this item 2, the disposing Creator Shareholder then grants
                                         Beroni a right of refusal to purchase all or any portion of the Shares that the Creator
                                         Shareholder proposes to sell or transfer, at the same price and on the same commercial
                                         and arm’s length terms and conditions no less favourable than those offered to
                                         the prospective transferee (Beroni Second Right of Refusal).

 

Exercise
of Second Right of Refusal

 

		(j)	The
                                         disposing Shareholder must deliver a proposed transfer notice (Transfer Notice)
                                         to Beroni or its respective assignees within 10 days if NSi’s failure to exercise
                                         the NSi First Right of Refusal, and in any case not later than 30 days prior to finalising
                                         such sale or transfer.
Such Transfer Notice will contain the material commercial and arm’s length terms and conditions of the proposed sale or
transfer, including the number of Shares to be sold or transferred (Transfer Shares), the identity of the prospective transferee,
and the price and form of consideration.

 

		(k)	To
                                         exercise the Beroni Second Right of Refusal, Beroni must deliver to the disposing Shareholder
                                         written notice that it intends to exercise the Beroni Second Right of Refusal as to some
                                         or all of the Transfer Shares within 10 days after delivery of the Transfer Notice.

 

		(l)	If
                                         Beroni does not provide the disposing Shareholder with notice in accordance with item
                                         2(k), Beroni will be deemed to have waived Beroni Second Right of Refusal.

 

		(m)	Payment
                                         for Transfer Shares must be made by bank cheque in exchange for delivery of the original
                                         share certificate and executed transfer of the Shares, such delivery and payment to be
                                         made no later than 10 days after the date on which Beroni provides notice of the exercise
                                         of the Beroni Second Right of Refusal.

 

Offers
to third-parties

 

		(n)	In
                                         relation to any Transfer Shares not accepted by NSi or Beroni under items 2(f) or 2(k)
                                         , the disposing Shareholder will be entitled to transfer the Transfer Shares to the third
                                         party buyer identified in the Transfer Notice at a price per Transfer Share not less
                                         than the price included in the Transfer Notice.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	30

     

    

 

	3	Share
                                         issues

 

	3.1	Payment
                                         by Beroni

 

In
order to reimburse the Company for costs incurred in achieving the milestones, and to support the Company’s activities and
contribute to the operating capital, Beroni must pay the Company the following amounts within 7 Business Days after the achievement
of each of the below milestones and the Company must issue the Shares, as follows:

 

	 	 	 	 	Estimated	 	Amount to be paid by	 	 	Shares to be issued	 	 	Total Shares to	 
	#	 	Milestone	 	date	 	Beroni	 	 	Beroni	 	 	NSi	 	 	be issued	 
	0	 	Provided under term sheet with Cystemix *	 	received	 	$	400,000	**	 	 	40,000	***	 	 	60,000	***	 	 	100,000	***
	1	 	Finalisation of Transaction Documents and Exclusively 
Licensing PENAO core patents to the Company	 	14-Jun-19	 	$	600,000	 	 	 	60,000	 	 	 	90,000	 	 	 	150,000	 
	2	 	Initiation of drug manufacturing campaign with an approved 
contract manufacturing organisation	 	15-Jul-19	 	$	600,000	 	 	 	60,000	 	 	 	90,000	 	 	 	150,000	 
	3	 	Development of a Phase 1b clinical trial strategy	 	15-Aug-19	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	4	 	Receipt of human research ethics committee approval for 
conducting a Phase Ib oncology study	 	15-Oct-19	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	5	 	Progress payment	 	15-Jan-20	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	6	 	Phase Ib First Subject Enrolled	 	15-Apr-20	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	7	 	Progress payment	 	15-Jul-20	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	8	 	Development of a Phase 2 clinical trial strategy	 	15-Oct-20	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	9	 	Progress payment	 	15-Jan-21	 	$	1,000,000	 	 	 	100,000	 	 	 	150,000	 	 	 	250,000	 
	10	 	Progress payment	 	15-Apr-21	 	$	1,250,000	 	 	 	125,000	 	 	 	187,500	 	 	 	312,500	 
	 	 	TOTAL	 	 	 	$	  9,850,000	 	 	 	  985,000	 	 	 	  1,477,500	 	 	 	  2,462,500	 
	 	 	Proportion of shareholding	 	 	 	 	 	 	 	 	40.00	%	 	 	60.00	%	 	 	 	 

 

*
“Milestone 0” corresponds to “SCHEDULE 2 Share holdings of Shareholders”.

**
Funding that Beroni provided prior to execution of this Agreement.

***
These shares have been issued as the initial capital when incorporating the Company.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	31

     

    

 

	3.2	Rights
                                         of NSi

 

If
Beroni fails to make any payment required by item 3.1:

 

		(a)	the
                                         Company must issue on the same terms to NSi (or its nominee/s) the shares which were
                                         to be issued to Beroni;

 

		(b)	Beroni
                                         grants NSi an option to purchase all of the Shares then held by Beroni for the lesser
                                         of and at NSi’s sole discretion:

 

		(i)	the
                                         price per share paid by a genuine third-party investor for shares in the Company; or

 

		(ii)	at
                                         a 20% discount on the price paid by Beroni for the Beroni Shares (Call Option Share Sale
                                         Price);

 

		(c)	any
                                         Director appointed to the Board by Beroni will resign with immediate effect; and

 

		(d)	NSi
                                         (or its nominee) will be appointed by the Company as the lead commercialisation party.

 

	3.3	Transfer
                                         of Creator Shareholder shares

 

		(a)	If
                                         NSi exercises the option granted in item 3.2(b) above, it may, by written notice, request
                                         that each Creator Shareholder (if any) transfer all of their respective Shares (if any)
                                         to NSi on the terms set out in the notice.

 

		(b)	Each
                                         Creator Shareholder (if any) agrees to comply with a request made in accordance with
                                         item 3.3(a) within 30 days of receiving the request.

 

	3.4	Rights
                                         of Beroni

 

NSi
and each Creator Shareholder grants Beroni (or its nominee) an option to purchase such number of the Shares held by NSi and the
Creator Shareholders (on a pro rata basis to be determined by NSi) as constitutes 11% of the share capital of the Company for
$5,500,000 (Call Option). The Call Option may be exercised by written notice to NSi and the Creator Shareholders at any
time during the period:

 

		(a)	commencing
                                         on the Company achieving 50% enrolment in a Phase II trial; and

 

		(b)	ending
                                         two months after such trial has been completed and a study completion report has been
                                         provided to the Company.

 

	4	Drag
                                         Along Rights

 

	4.1	If
                                         the Company receives a written bona fide offer to purchase 100% of the assets or the
                                         issued Shares of the Company which is accepted by at least 80% of Shareholders (Approved
                                         Sale), regardless of the form of the proposed transaction, at the written request
                                         of the Company each Shareholder will:

 

		(a)	participate
                                         in such Approved Sale;

 

		(b)	provide
                                         any requested consents for such Approved Sale; and

 

		(c)	raise
                                         no objections against, and not otherwise impede or delay, such Approved Sale.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	32

     

    

 

	4.2	The
                                         Company will give to each Shareholder a notice of the Approved Sale (Obligation to
                                         Sell Notice) containing a description of the material terms of such proposed transaction,
                                         including (as applicable):

 

		(a)	the
                                         name and address of the proposed transferee;

 

		(b)	the
                                         assets or number of Shares to be sold;

 

		(c)	the
                                         consideration per Share offered for such Shares by the proposed transferee;

 

		(d)	the
                                         consideration for such assets offered by the proposed transferee;

 

		(e)	the
                                         payment terms and closing date; and

 

		(f)	a
                                         copy of any written offer, letter of intent, term sheet or contract of sale.

 

	4.3	If
                                         the Approved Sale is structured as a:

 

		(a)	merger
                                         or consolidation, each Shareholder will waive any dissenters rights, appraisal rights
                                         or similar rights in connection with such merger or consolidation; or

 

		(b)	sale
                                         of Shares, each Shareholder will agree to sell, and will sell, all of his, her or its
                                         Shares on the terms approved by the Board.

 

	4.4	Each
                                         Shareholder will take all necessary or desirable actions in connection with the Approved
                                         Sale as requested by the Board, including the execution of any applicable purchase agreement.

 

	5	Tag
                                         Along Rights

 

		(a)	For
                                         the purposes of this schedule, an exercise event (Exercise Event) occurs upon
                                         the service by a Shareholder of a Disposal Notice on all of the other Shareholders (Remaining
                                         Shareholders).

 

		(b)	During
                                         the period of 20 Business Days after an Exercise Event, a recipient of a Disposal Notice
                                         (Exercising Holder) may serve a notice (Exercise Notice) on the Transferor,
                                         to the effect that it wishes to purchase all or a specified portion of the Subject Shares
                                         at the Transfer Price, provided that the acquisition by the Exercising Holder of those
                                         Subject Shares will not cause a contravention of the Foreign Acquisitions and Takeovers
                                         Act 1975 (Cth).

 

		(c)	If
                                         an Exercise Notice is served on the Transferor:

 

		(i)	by
                                         only one Exercising Holder (who indicates that it wishes to purchase all the Subject
                                         Shares):

 

		(A)	the
                                         Transferor must sell; and

 

		(B)	that
                                         Exercising Holder must purchase,

 

the
Subject Shares at the Transfer Price and free of any Encumbrance; or

 

		(ii)	by
                                         more than one Exercising Holder (who indicate that, in aggregate, they wish to purchase
                                         all the Subject Shares):

 

		(A)	the
                                         Transferor must sell; and

 

		(B)	those
                                         Exercising Holders must purchase, the Subject Shares at the Transfer Price free of any
                                         Encumbrance.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	33

     

    

 

		(d)	The
                                         sale and purchase of the Subject Shares, or each part of the Subject Shares, will take
                                         place at the registered office of the Company at 12 noon on the date which is 35 Business
                                         Days after the date of the Exercise Event.

 

		(e)	Subject
                                         to item 5(f):

 

		(i)	if
                                         an agreement for the sale of all the Subject Shares is not reached; or

 

		(ii)	completion
                                         of such sale or sales does not take place pursuant to item 5(c) (other than by reason
                                         of the default of the Transferor),

 

the
Transferor may agree to sell the Subject Shares to any person within 70 Business Days after the Exercise Event at a price not
less than the Transfer Price.

 

		(f)	If:

 

		(i)	agreements
                                         are entered into for the sale of all the Subject Shares by the Transferor to more than
                                         one Exercising Holder; and

 

		(ii)	one
                                         of those Exercising Holders fails to complete its agreement in relation to certain of
                                         the Subject Shares (Remaining Shares) in accordance with item 5(d):

 

		(A)	the
                                         Transferor may offer to sell the Remaining Shares to the remaining Exercising Holders.

 

		(B)	that
                                         offer must be made no later than two Business Days after the relevant failure to complete
                                         and will remain open for acceptance until the fifth Business Day after it is made;

 

		(C)	failing
                                         such acceptance, the Transferor may rescind each other agreement;

 

		(D)	in
                                         the event of such rescission the Transferor will have no liability whatsoever to an Exercising
                                         Holder which was the proposed purchaser under a rescinded agreement and the Transferor
                                         may exercise its rights under item 5(e); and

 

		(E)	if
                                         the Transferor does not rescind each other agreement, it may sell the Remaining Shares
                                         to any person within 70 Business Days after the Exercise Event at a price not less than
                                         the Transfer Price.

 

	6	Time
                                         is of the essence

 

In
this schedule, time is of the essence.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	34

     

    

 

	SCHEDULE 6	Deed of accession

 

This
deed of accession is dated [date]

 

between:

 

[names
of parties to the shareholders’ agreement] (Parties) and:

 

[name
of new shareholder] ([ACN]) of [address]
(New Shareholder),

 

in
relation to the shareholders agreement dated [specify date of shareholders’ agreement]
(Shareholders’ Agreement).

 

OPERATIVE
PROVISIONS

 

		(a)	The
                                         New Shareholder confirms that it has been given and read a copy of the Shareholders’
                                         Agreement and covenants with the Parties to perform and be bound by all the terms of
                                         the Shareholders’ Agreement.

 

		(b)	This
                                         deed replaces schedule 1 of the Shareholders’ Agreement with the replacement schedule
                                         1 attached to this deed. [Note: schedule 1 of the Shareholders’ Agreement should
                                         be copied, amended to include the details of the New Shareholder and attached to this
                                         deed.]

 

		(c)	This
                                         deed replaces schedule 2 of the Shareholders’ Agreement with the replacement schedule
                                         2 to this deed of accession. [Note: schedule 2 of the Shareholders’ Agreement
                                         should be copied, amended to include the details of the New Shareholder and attached
                                         to this deed.]

 

		(d)	The
                                         New Shareholder warrants and represents, in relation to itself, to each of the Parties
                                         that:

 

		(i)	the
                                         execution and delivery of this deed has been properly authorised (including in the case
                                         of a party who is a body corporate, by all necessary corporate action by it); and

 

		(ii)	it
                                         has full power (including, in the case of a party who is a body corporate, full corporate
                                         power) and lawful authority to execute and deliver this deed and to perform or cause
                                         to be performed its obligations under this deed.

 

		(e)	This
                                         deed is governed by the laws of New South Wales, Australia.

 

    	PENAO Pty Ltd – Shareholders’ Agreement	35

     

    

 

Executed
as a deed

 

	Signed,
    sealed and delivered on behalf of [insert name of Company] (ACN
    [insert ACN]) by an authorised officer in the presence of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
    of authorised officer
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    of authorised officer (print)
	 	 	 
	 	 	 
	Date	 	Position

 

	Signed,
    sealed and delivered on behalf of [insert name of shareholder] ([insert
    ACN, if applicable]) by an authorised officer in the presence of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
    of authorised officer
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    of authorised officer (print)
	 	 	 
	 	 	 
	Date	 	Position

 

	Signed,
    sealed and delivered by [insert name of shareholder] in the presence
    of	 	 
	 	 	 
	 	 	 
	Signature
    of witness	 	Signature
	 	 	 
	 	 	 
	Name
    of witness (print)	 	Name
    (print)
	 	 	 
	 	 	 
	Date	 	 

 

    	PENAO Pty Ltd – Shareholders’ Agreement	36

     

    

 

	SCHEDULE 7	Financial and other reporting

 

	1.	(Monthly)
                                         Within 10 Business Days after the last day of each Month, unaudited management accounts
                                         for the preceding Month comprising:

 

		(a)	commentary
                                         on the operational and financial position for the preceding Month, including variances
                                         between the actual results and those forecast in the Business Plan;

 

		(b)	a
                                         profit and loss account and cash flow statement for the preceding Month;

 

		(c)	a
                                         balance sheet as at the end of the preceding Month; and

 

		(d)	a
                                         forecast for the performance of the Company in the following Month.

 

	2.	(Quarterly)
                                         Within 15 Business Days after the end of each calendar quarter, unaudited quarterly management
                                         accounts for the preceding quarter, comprising and including at least:

 

		(a)	commentary
                                         on the financial performance for the quarter;

 

		(b)	a
                                         quarterly management report regarding variations from the current Business Plan;

 

		(c)	a
                                         profit and loss statement and cash flow statement for the quarter; and

 

		(d)	a
                                         balance sheet as at the end of the quarter.

 

	3.	(Annual)
                                         Within 30 Business Days after the end of each Financial Year, audited financial statements
                                         (including consolidated profit and loss accounts, balance sheets and cash flow statements)
                                         in respect of the Financial Year.
	 	 

	4.	(Minutes)
                                         At the same time as they are provided to the Directors but within 10 Business Days after
                                         each meeting:
	 	 

		(a)	minutes
                                         of all Board meetings; and

 

		(b)	minutes
                                         of all Shareholder meetings.

 

 

    	PENAO Pty Ltd – Shareholders’ Agreement	37

     

    

 

	SCHEDULE 8	License Agreement

 

    	PENAO Pty Ltd – Shareholders’ Agreement	38

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