Document:

exv10w8

Exhibit 10.8

March 16, 2011

Peter Edison

Dear Peter:

     The 2011 bonus plan reflects the goals for our company this coming year. Your bonus is based
on pre-tax profit for the company in 2011.

	 	 	 	 	 	 	 	 	 

	 	35.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1	 
	 	42.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1,000,000	 
	 	57.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	2,000,000	 
	 	85.83	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	3,000,000	 
	 	99.17	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	4,000,000	 

     In addition, you will earn 12.5% of your cumulative salary if, in the opinion of the
Compensation Committee, you meet the goals outlined in the document provided to you separately and
the company makes a pre-tax profit of at least $1.

     I will send a quarterly update in conjunction with our earnings announcement to update you on
the performance of the company versus the bonus plan.

     The 2011 bonus period covers the fiscal months of February 2011 through January 2012. You
must be an active employee of Bakers Footwear Group at the time the bonus is paid to be eligible to
receive your bonus.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Timothy Finley
 

Timothy Finley
	 	 
	 

	 	Chairman, Compensation Committee	 	 

ssexv10w9

Exhibit 10.9

March 16, 2011

Joe VanderPluym

Dear Joe:

     The 2011 bonus plan reflects the goals for our company this coming year. Your bonus is based
on pre-tax profit for the company in 2011.

	 	 	 	 	 	 	 	 	 

	 	30.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1	 
	 	37.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1,000,000	 
	 	50.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	2,000,000	 
	 	62.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	3,000,000	 
	 	75.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	4,000,000	 

     In addition, you will earn 12.5% of your cumulative salary if, in the opinion of the
Compensation Committee, you meet the goals outlined in the document provided to you separately and
the company makes a pre-tax profit of at least $1.

     I will send a quarterly update in conjunction with our earnings announcement to update you on
the performance of the company versus the bonus plan.

     The 2011 bonus period covers the fiscal months of February 2011 through January 2011. You
must be an active employee of Bakers Footwear Group at the time the bonus is paid to be eligible to
receive your bonus.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Peter Edison
 

Peter Edison
	 	 

ssexv10w10

Exhibit 10.10

March 16, 2011

Mark Ianni

Dear Mark:

     The 2011 bonus plan reflects the goals for our company this coming year. Your bonus is based
on pre-tax profit for the company in 2011.

	 	 	 	 	 	 	 	 	 

	 	30.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1	 
	 	37.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1,000,000	 
	 	50.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	2,000,000	 
	 	62.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	3,000,000	 
	 	75.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	4,000,000	 

     In addition, you will earn 12.5% of your cumulative salary if, in the opinion of the
Compensation Committee, you meet the goals outlined in the document provided to you separately and
the company makes a pre-tax profit of at least $1.

     I will send a quarterly update in conjunction with our earnings announcement to update you on
the performance of the company versus the bonus plan.

     The 2011 bonus period covers the fiscal months of February 2011 through January 2011. You
must be an active employee of Bakers Footwear Group at the time the bonus is paid to be eligible to
receive your bonus.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Peter Edison
 

Peter Edison
	 	 

ssexv10w11

Exhibit 10.11

March 16, 2011

Stan Tusman

Dear Stan:

     The 2011 bonus plan reflects the goals for our company this coming year. Your bonus is based
on pre-tax profit for the company in 2011.

	 	 	 	 	 	 	 	 	 

	 	30.00	%	 	of your cumulative salary if the company achieves a
pre-tax profit of
	 	$	1	 
	 	37.50	%	 	of your cumulative salary if the company achieves a
pre-tax profit of
	 	$	1,000,000	 
	 	50.00	%	 	of your cumulative salary if the company achieves a
pre-tax profit of
	 	$	2,000,000	 
	 	62.50	%	 	of your cumulative salary if the company achieves a
pre-tax profit of
	 	$	3,000,000	 
	 	75.00	%	 	of your cumulative salary if the company achieves a
pre-tax profit of
	 	$	4,000,000	 

     In addition, you will earn 12.5% of your cumulative salary if, in the opinion of the
Compensation Committee, you meet the goals outlined in the document provided to you separately and
the company makes a pre-tax profit of at least $1.

     I will send a quarterly update in conjunction with our earnings announcement to update you on
the performance of the company versus the bonus plan.

     The 2011 bonus period covers the fiscal months of February 2011 through January 2011. You
must be an active employee of Bakers Footwear Group at the time the bonus is paid to be eligible to
receive your bonus.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Peter Edison
 

Peter Edison
	 	 

ssexv10w12

Exhibit 10.12

March 16, 2011

Charlie Daniel

Dear Charlie:

     The 2011 bonus plan reflects the goals for our company this coming year. Your bonus is based
on pre-tax profit for the company in 2011.

	 	 	 	 	 	 	 	 	 

	 	30.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1	 
	 	37.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	1,000,000	 
	 	50.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	2,000,000	 
	 	62.50	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	3,000,000	 
	 	75.00	%	 	of your cumulative salary if the company achieves
a pre-tax profit of
	 	$	4,000,000	 

     In addition, you will earn 12.5% of your cumulative salary if, in the opinion of the
Compensation Committee, you meet the goals outlined in the document provided to you separately and
the company makes a pre-tax profit of at least $1.

     I will send a quarterly update in conjunction with our earnings announcement to update you on
the performance of the company versus the bonus plan.

     The 2011 bonus period covers the fiscal months of February 2011 through January 2011. You
must be an active employee of Bakers Footwear Group at the time the bonus is paid to be eligible to
receive your bonus.

	 	 	 	 	 

	 

	 	Sincerely,	 	 
	 
	 	 	 	 
	 

	 	/s/ Peter Edison
 

Peter Edison
	 	 

ssExhibit 10.1

Exhibit 10.1

Dated 4 March 2011

Share sale and purchase agreement

Parties

Rheochem Plc

Registered number (UK) 5209284, ARBN 127 927 495

Newpark Australia Pty Ltd

ACN 149 642 875

Newpark Resources, Inc.

Registered number 72-1123385

James Stewart

Norton Rose Australia

BankWest Tower, 108 St Georges Terrace

Perth WA 6000

Tel: +61 (0)8 9426 3212

www.nortonrose.com

Our ref: 2658127

 

 

 

Contents

	 	 	 	 	 
	1 Definitions and interpretation
	 	 	1	 
	2 Conditions precedent
	 	 	15	 
	3 Exclusivity
	 	 	18	 
	4 Sale and purchase
	 	 	18	 
	5 Purchase Price
	 	 	19	 
	6 Pre-Completion Undertakings
	 	 	20	 
	7 Pre-Completion notifications
	 	 	23	 
	8 Completion
	 	 	23	 
	9 Working Capital adjustment
	 	 	30	 
	10 First Conditional Payment
	 	 	31	 
	11 Second Conditional Payment
	 	 	32	 
	12 Conditional Payment restrictions
	 	 	33	 
	13 Conditional Payment Security
	 	 	34	 
	14 Payments
	 	 	34	 
	15 Warranties
	 	 	34	 
	16 Limitation of liability
	 	 	36	 
	17 Indemnity
	 	 	40	 
	18 Tax
	 	 	41	 
	19 Goods and services tax
	 	 	42	 
	20 Restraint
	 	 	43	 
	21 Purchaser guarantee and indemnity
	 	 	45	 
	22 Termination by Purchaser or Seller
	 	 	46	 
	23 Break Fee
	 	 	46	 
	24 Power of attorney
	 	 	47	 
	25 Resolving Disputes
	 	 	48	 
	26 Announcements
	 	 	50	 
	27 Confidentiality
	 	 	50	 
	28 Time of the essence
	 	 	51	 
	29 Further assurance
	 	 	52	 
	30 Severability
	 	 	52	 
	31 Entire agreement
	 	 	52	 
	32 Variation
	 	 	52	 
	33 Rights, powers and remedies
	 	 	52	 
	34 Continuing obligations
	 	 	53	 
	35 Costs
	 	 	53	 
	36 Notices
	 	 	53	 
	37 Assignment
	 	 	55	 
	38 Governing law and jurisdiction
	 	 	55	 
	39 Service of process
	 	 	55	 
	40 Execution by attorney
	 	 	56	 
	41 Counterparts
	 	 	56	 
	Schedule 1 — The Shares
	 	 	57	 
	Schedule 2 — Seller Warranties
	 	 	58	 
	Schedule 3 — Purchaser Warranties
	 	 	86	 
	Schedule 4 — Purchaser Guarantor
Warranties
	 	 	88	 
	Schedule 5 — EBITDA
	 	 	90	 
	 
	 	 	 	 
	Annexure A — Disclosure Letter
	 	 	 	 
	Annexure B — Data Room Index
	 	 	 	 
	Annexure C — Answers to Purchaser’s
Questions
	 	 	 	 
	Annexure D — Group Financial Statements
	 	 	 	 
	Annexure E — Agreed Tenders
	 	 	 	 
	Annexure F — Pro-Forma Working Capital
Register
	 	 	 	 

© Norton Rose Australia

 

 

 

Agreement dated 4 March 2011

	 	 	 
	Parties

	 	Rheochem Plc Registered number (UK) 5209284, ARBN 127 927 495

of 15 Appold Street, London EC2A 2HB

(Seller)
	 
	 	 
	 

	 	Newpark Australia Pty Ltd ACN 149 642 875

of C/o Norton Rose Australia, Level 39, Bankwest Tower, 108 St Georges Terrace,

Perth 6000

(Purchaser)
	 
	 	 
	 

	 	Newpark Resources, Inc Registered number 72-1123385

of 2700 Research Forest Drive, Suite 100, The Woodlands Texas 77381

(Purchaser Guarantor)

Introduction

	A  	 	The Purchaser Guarantor is a company listed on the New York Stock
Exchange. It provides services to the oil and gas exploration and
production industry, with operations in the United States, Canada,
Mexico, Brazil, and the Mediterranean region. The Purchaser
Guarantor operates in three segments: fluids systems and
engineering; mats and integrated services; and environmental
services.
	 
	B  	 	The Seller is an oil and gas business admitted to trading on AIM
and ASX that owns the Group Companies which specialise in the
provision of drilling fluids and engineering services to the oil
and gas exploration industry in Australia, New Zealand, India and
Indonesia.
	 
	C  	 	The Seller has agreed to sell all of the shares it owns in each
Group Company to the Purchaser and the Purchaser has agreed to buy
the Shares from the Seller on and subject to the provisions of this
Agreement.
	 
	D  	 	The Purchaser is a wholly-owned subsidiary of the Purchaser
Guarantor and the Purchaser Guarantor has agreed to guarantee to
the Seller the obligations of the Purchaser under this Agreement.
	 
	E  	 	The shares held by Rheochem Limited in VRMT Well Services will be
disposed of prior to Completion and will not form part of the
Business to be acquired under the Transaction.

It is agreed

	1	 	Definitions and interpretation
	 
	1.1	 	Definitions

In this Agreement, the following words have these meanings unless the contrary intention
appears:

	 	(1)	 	Accounts means the First Accounts or the Second Accounts, as the context
requires;

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	 	(2)	 	Accounts Period means the First Accounts Period or the Second Accounts
Period, as the context requires;
	 
	 	(3)	 	Accrued Rights means all rights attaching to or arising from the Shares on or
after Completion, including all rights to receive dividends or other distributions and
to receive or subscribe for shares, options, debentures, notes or other securities,
declared, paid or issued by any Group Company;
	 
	 	(4)	 	Adjustment Date means the date 5 Business Days after the Completion Accounts
are settled or any other date agreed in writing by the Seller and the Purchaser. The
Completion Accounts will be regarded as settled:

	 	(a)	 	on expiry of the period of 30 Business Days after the
Completion Accounts have been delivered to the Seller in accordance with
clause 9.1:

	 	(i)	 	without the Seller notifying the Purchaser of
any dispute under clause 9.4; or

	 	(ii)	 	with the Seller notifying the Purchaser
within that period that it has no objection to the Completion
Accounts;

	 	(b)	 	on resolution of any dispute notified by the Seller to the
Purchaser under clause 9.4; or

	 	(c)	 	on determination by the Independent Accountants under clause
9.6 of any dispute notified by the Seller to the Purchaser under clause 9.4;

	 	(5)	 	Agreed Claim means a Claim arising out of an alleged or actual breach of a
Seller Warranty which has been:

	 	(a)	 	settled by written agreement between the Seller and the
Purchaser;
	 
	 	(b)	 	admitted in writing by the Seller; or

	 	(c)	 	awarded by a court, arbitrator or expert, where the award is
not capable of appeal or the time limit for appeal has expired or where the
parties have agreed in writing that no appeal should be made;

	 	(6)	 	Agreed Tenders means the tenders which the Business has made or entered into
as at the date of this Agreement, as set out in Annexure E, copies of which have been
provided to the Purchaser;
	 
	 	(7)	 	Agreement means this document, including any Schedule or Annexure to it;

	 	(8)	 	AIM means the Alternative Investment Market operated by the London Stock
Exchange;
	 
	 	(9)	 	AIM Rules means the rules of AIM;
	 
	 	(10)	 	Announcement has the meaning given in clause 26.1;
	 
	 	(11)	 	ANZ means Australia and New Zealand Banking Group Ltd ABN 005 357 522;

	 	(12)	 	ASIC means the Australian Securities and Investments Commission;

© Norton Rose Australia

 

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	 	(13)	 	Associate means:

	 	(a)	 	in relation to a corporation, any Related Body Corporate, any
director, any person that has a substantial holding (as that term is defined
in section 9 of the Corporations Act) in the corporation, any person with whom
the corporation is acting, or proposes to act, in concert and any person with
whom the corporation is, or proposes to become, associated in any other way
(whether formally or informally); and

	 	(b)	 	in relation to a natural person, their spouse, any blood or
adoptive relative of the person or the person’s spouse, or any corporation in
respect of which the person is an Associate by virtue of clause 1.1(13)(a);

	 	(14)	 	ASX means ASX Limited ACN 008 624 691;

	 	(15)	 	ASX Listing Rules means the official listing rules of ASX;

	 	(16)	 	Australian Consumer Law means Schedule 2 of the Competition and Consumer Act
2010 (Cth);

	 	(17)	 	Authorisation includes:

	 	(a)	 	any consent, registration, filing, agreement, notarisation,
certificate, licence, approval, permit, authority or exemption from, by or
with a Government Agency; and

	 	(b)	 	in relation to any thing which may be proscribed or
restricted in whole or in part by law or otherwise if a Government Agency
intervenes or acts in any way within a specified period after lodgement,
registration or other notification of any thing, the expiration of that period
without the intervention or action by that Government Agency;

	 	(18)	 	Balance Date means 30 June 2010;

	 	(19)	 	BKPM means the Capital Investment Coordinating Board (Badan Koordinasi
Penanaman Modal) of the Republic of Indonesia;

	 	(20)	 	Business means the business of the Group;

	 	(21)	 	Business Day means a day that is not a Saturday, Sunday or any other day
which is a public holiday or a bank holiday in Western Australia or London;

	 	(22)	 	Chevron means Chevron Australia Pty Limited;

	 	(23)	 	Chevron Contract means the agreement dated 20 March 2009 between Chevron and
Rheochem Limited (Well Services Contract No C672849);

	 	(24)	 	Claim includes, in relation to a person, a demand, claim, action or
proceeding made or brought by or against the person, however arising and whether
present, unascertained, immediate, future or contingent;

	 	(25)	 	Claims Expiry Date means:

	 	(a)	 	in the case of a Claim other than a Tax Claim, an
Environmental Claim or a Foreign Jurisdiction Claim, the date 18 months after
the Completion Date;

	 	(b)	 	in the case of a Foreign Jurisdiction Claim, the date 24
months after the Completion Date;

© Norton Rose Australia

 

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	 	(c)	 	in the case of a Tax Claim:

	 	(i)	 	except where there is fraud, the date 5 years
after the Completion Date; and

	 	(ii)	 	where there is fraud, there is no limit; and

	 	(d)	 	in the case of an Environmental Claim, the date 5 years after
the Completion Date;

	 	(26)	 	Competing Transaction means:

	 	(a)	 	a party acquiring the whole or a substantial part of the
assets, business or property of the Group;

	 	(b)	 	a transaction which could result in a person who does not
have any shares in a Group Company, acquiring shares in a Group Company, or a
person who has shares in a Group Company increasing their voting power in a
Group Company; or

	 	(c)	 	a person otherwise acquiring Control of any of the Group
Companies;

	 	(27)	 	Completion means completion of the sale and purchase of the Shares in
accordance with clause 8;

	 	(28)	 	Completion Accounts means a consolidated balance sheet of the Group as at the
date of Completion and all associated notes;

	 	(29)	 	Completion Date means the later of:

	 	(a)	 	18 April 2011; and

	 	(b)	 	the day which is 5 Business Days after the date on which the
last of the Conditions is satisfied (or waived under clause 2.6),

	 		 	or such other later date agreed in writing by the Seller and the Purchaser;

	 	(30)	 	Completion Payment means $23,750,000 less the amount of External Borrowings
outstanding at Completion (if any);

	 	(31)	 	Completion Working Capital Amount means the Working Capital of the Group as
at Completion;

	 	(32)	 	Conditional Payment Security has the meaning given in clause 13.1;

	 	(33)	 	Conditions means the conditions set out in clause 2.1;

	 	(34)	 	Confidential Information has the meaning given in clause 25.6;

	 	(35)	 	Confidentiality Agreement means the confidentiality agreement between the
Purchaser and the Seller dated 25 June 2010;

	 	(36)	 	Consent Contracts means each of the following agreements:

	 	(a)	 	Chevron Contract;

	 	(b)	 	Dampier Lease; and

	 	(c)	 	Contact Energy Contract;

© Norton Rose Australia

 

4

 

	 	(37)	 	Consolidated Group has the meaning ascribed in section 703-5 of the Tax Act;

	 	(38)	 	Constitution means the Articles of Association of the Seller dated 18 August
2004 and as amended by special resolution on 1 November 2004, 13 August 2007 and 16
January 2009;

	 	(39)	 	Contact Energy Contract means the agreement between Contact Energy Limited
and Rheochem Pacific Limited dated 17 April 2005 (contract Wk 861 — Drilling Fluid
Materials and Engineering) as varied from time to time;

	 	(40)	 	Contractor means any company or individual engaged by a member of the Group
as an independent contractor, under a contract for services;

	 	(41)	 	Control has the meaning given in section 50AA of the Corporations Act;

	 	(42)	 	Corporations Act means the Corporations Act 2001 (Cth);

	 	(43)	 	Dampier Lease means the lease between Toll and Rheochem Limited in respect of
the Dampier Premises;

	 	(44)	 	Dampier Premises means the land at Lot 471 King Bay Road, Burrup (Lot 471 on
deposited plan 220595, being the whole of the land comprised in certificate of title
volume LR 3111 folio 930);

	 	(45)	 	Data Room means the premises located at the offices of Blake Dawson Perth
maintained on behalf of the Seller in which the Purchaser and its Related Bodies
Corporate, and their respective Personnel, have had access to information relating to
the Group;

	 	(46)	 	Data Room Index means the index of documents in the Data Room (together with
all supplementary indexes) set out in Annexure B;

	 	(47)	 	Deadline means:

	 	(a)	 	the date falling 90 days after (and not including) the date
of this Agreement; or

	 	(b)	 	any other later date agreed in writing by the Seller and the
Purchaser;

	 	(48)	 	Disclosed means fairly disclosed in such detail as to enable a reasonable
purchaser to identify the nature and scope of the matter concerned;

	 	(49)	 	Disclosure Letter means the letter dated on or before the date of this
Agreement from the Seller to the Purchaser, attached as Annexure A;

	 	(50)	 	Disclosure Material means:

	 	(a)	 	the information contained in the Data Room as at 2 March 2011
and listed in the Data Room Index; and

	 	(b)	 	the written answers provided by or on behalf of the Seller
Group, or any Personnel of the Seller Group, to questions asked by or on
behalf of the Purchaser Group, or any Personnel of the Purchaser Group, in
connection with the Transaction, set out in Annexure C;

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	 	(51)	 	Dispute means any dispute or difference in relation to any thing or matter
arising under out of or in connection with the Agreement, including any dispute or
difference as to its existence, validity or termination;

	 	(52)	 	DPA means the Dampier Port Authority;

	 	(53)	 	EBITDA means (in relation to the First Accounts Period and the Second
Accounts Period) the amount of the consolidated earning before interest, tax,
depreciation and amortisation of the Group for that period, including the items set
out in Part A of Schedule 5 but not including the items set out in Part B of Schedule
5, as set out in the First Accounts or the Second Accounts (as applicable);

	 	(54)	 	Employee means each employee of each member of the Group;

	 	(55)	 	Encumbrance means, in relation to any asset:

	 	(a)	 	a mortgage, charge, lien, pledge, hypothecation, fiduciary
security or other encumbrance over the asset;

	 	(b)	 	a profit a prendre, easement or restrictive covenant
affecting the asset;

	 	(c)	 	a caveat, garnishee order, writ of execution, right of
set-off, assignment by way of security, deposit of money by way of security or
monetary claim affecting the asset;

	 	(d)	 	a preferential interest, trust, title retention arrangement
(other than in the ordinary course of business), or other estate, interest,
claim or arrangement affecting the asset;

	 	(e)	 	a right, including a contractual right, an option, a right of
first refusal, a right of pre-emption or other right, to acquire the property
or to restrain any person from acquiring the asset;

	 	(f)	 	a right, including a lease, licence or other right, to occupy
or use the asset; or

	 	(g)	 	an agreement to grant, create or register any of them or to
allow any of them to exist; and

and whether the Encumbrance is registered or unregistered, statutory, legal or
equitable;

	 	(56)	 	Environmental Claim means a Claim arising out of an alleged or actual breach
of an Environmental Warranty;

	 	(57)	 	Environmental Warranties means the warranties contained in Seller Warranty 19
of Schedule 2;

	 	(58)	 	Exclusivity Undertakings means the exclusivity undertakings of the Seller in
clause 3;

	 	(59)	 	External Borrowings means all borrowings or other financial accommodation
owing (whether actually or contingently) by the Group, including accrued interest and
all costs associated with the repayment of such borrowings (including break costs);

	 	(60)	 	Financial Statements means the consolidated audited financial statements
(including income statement, balance sheet, statement of cash flows, directors’
report, auditors’ report and notes attached to or intended to be read with the
financial statements) of the Seller Group for the financial year ended on the
Balance Date and as at the Balance Date;

© Norton Rose Australia

 

6

 

	 	(61)	 	First Accounts means the accounts for the First Accounts Period as prepared
and jointly audited pursuant to Schedule 5, including the notes to such accounts;

	 	(62)	 	First Accounts Period means the period from 1 March 2011 to 31 August 2011
(both dates inclusive);

	 	(63)	 	First Conditional Payment means $2 million;

	 	(64)	 	First Conditional Payment Date means the day which is 5 Business Days after
the agreement or determination of the amount of the First Conditional Payment, in
accordance with the provisions of part C of Schedule 5;

	 	(65)	 	Foreign Jurisdiction Claim means a Claim arising out of an alleged or actual
breach of a Seller Warranty that relates to Rheochem India Pvt Ltd or Rheochem
Indonesia or the operations of the Business in India or Indonesia;

	 	(66)	 	Fundamental Warranty means the following Seller Warranties: 2, 4, 5.1, 5.4,
5.18, 6.1, 6.3, 7.1, 7.2, 7.3, 7.4, 7.6, 8.1(1), 14.1(1), 14.1(2), 15.1, 17.1, 19.3,
20.1 and 20.3;

	 	(67)	 	Government Agency means any government and any governmental body, whether:

	 	(a)	 	legislative, judicial or administrative;

	 	(b)	 	a department, commission, authority, instrumentality,
tribunal, agency or entity; or

	 	(c)	 	commonwealth, state, territorial, provincial, regional or
local,

and includes any self-regulatory organisation established under any law but
excludes a governmental body in respect of any service or trading functions as
distinct from regulatory or fiscal functions;

	 	(68)	 	Group means Rheochem Limited, Rheochem Pacific Limited, Rheochem India Pvt
Ltd and Rheochem Indonesia;

	 	(69)	 	Group Company means each of Rheochem Limited, Rheochem Pacific Limited,
Rheochem India Pvt Ltd and Rheochem Indonesia;

	 	(70)	 	Group Financial Statements has the meaning defined in Schedule 2, and
attached as Annexure D;

	 	(71)	 	GST means:

	 	(a)	 	GST as defined in the GST Act or any replacement or other
relevant legislation and regulations; and

	 	(b)	 	tax imposed under the Good and Services Tax Act 1985 (NZ);

	 	(72)	 	GST Act means A New Tax System (Goods and Services Tax) Act 1999 (Cth) as
amended;

	 	(73)	 	GST Group has the meaning given to that term in the GST Act;

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	 	(74)	 	Guarantee means any guarantee, indemnity, suretyship, letter of comfort or
other assurance, security or right of set-off given or undertaken by a person to
secure or support the obligations (actual or contingent) of any other person and
whether given directly or by way of counter-indemnity to any other person who has
provided a Guarantee;

	 	(75)	 	Guaranteed Money means all amounts (including damages) that are payable,
owing but not payable, or that otherwise remain unpaid by the Purchaser to the Seller
on any account at any time under or in connection with this Agreement or any
transaction that this Agreement contemplates, whether:

	 	(a)	 	present or future, actual or contingent; and

	 	(b)	 	originally contemplated by the Purchaser Guarantor, the
Purchaser or the Seller or not;

	 	(76)	 	Guaranteed Obligations means the obligations of the Purchaser to pay the
Guaranteed Money and all its other obligations to the Seller (monetary or non
monetary, present or future, actual or contingent) under or in connection with this
Agreement;

	 	(77)	 	Head Lease means the lease between the Minister for Transport, DPA and Toll
in respect of the land referred to as Lot 2 and Lot 3 De Witt Location 310 and Part of
De Witt Locations 310 and 311;

	 	(78)	 	HOEC means Hindustan Oil Exploration Company Ltd;

	 	(79)	 	HOEC Deed means the agreement dated 22 April 2010 between HOEC and Rheochem
India Pvt Ltd (contract number AAPC10A0020);

	 	(80)	 	Independent Accountants means a firm of chartered accountants that is
independent of the Seller and the Purchaser selected by agreement between the Seller
and the Purchaser or, failing agreement within 2 Business Days after either of them
seeking agreement, selected by the President for the time being of the Institute of
Chartered Accountants in Australia, Western Australia Branch;

	 	(81)	 	India Cash Sum means an amount (expressed in $

at the A$:INR Rs exchange
rate published in the Australian Financial Review on the Business Day prior to
Completion) equal to 70% of the aggregate of the cash held by Rheochem India Pvt Ltd
in various bank accounts as at Completion (which, on the date one Business Day prior
to the date of this Agreement, totalled 51,565,766 INR Rs and US$1,668), as evidenced
in writing and provided to the Purchaser;

	 	(82)	 	India Joint Venture Agreement means the joint venture agreement dated 20
September 2005 between the Seller, Prabhu and Rheochem India Pvt Ltd;

	 	(83)	 	Indonesian Company Law means Law No.40/2007 re Limited Liabilities Companies
of the Republic of Indonesia;

	 	(84)	 	Indonesian Cooperation Agreements means the following agreements with respect
to the Rheochem Indonesia Minority Shares:

	 	(a)	 	Loan Agreement dated 29 July 2010 between the Seller and Ms
Fadilah;

	 	(b)	 	Irrevocable Power of Attorney to Vote Shares dated 29 July
2010 issued by Ms Fadilah in favour of the Seller;

	 	(c)	 	Irrevocable Power of Attorney to Sell Shares dated 29 July
2010 issued by Ms Fadilah in favour of the Seller;

	 	(d)	 	Indemnity Agreement dated 29 July 2010 between the Seller and
Ms Fadilah; and

	 	(e)	 	Pledge of Shares dated 29 July 2010 between the Seller, Ms
Fadilah and Rheochem Indonesia;

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	 	(85)	 	Intellectual Property Rights means any:

	 	(a)	 	copyright;

	 	(b)	 	design, patent, trademark, semiconductor, circuit layout or
plant breeder rights (whether registered, unregistered or applied for);

	 	(c)	 	trade, business, company or domain name; and

	 	(d)	 	know-how, inventions, processes, confidential information
(whether in writing or recorded in any form),

and any other proprietary, licence or personal rights arising from intellectual
activity in the business, industrial, scientific or artistic fields;

	 	(86)	 	Irregularities has the meaning given in clause 17.1(8);

	 	(87)	 	Issuing Bank has the meaning given in clause 13.1;

	 	(88)	 	Land Titles Office means the Western Australian Land Information Authority
operating as Landgate;

	 	(89)	 	Letter of Credit has the meaning given in clause 13.1;

	 	(90)	 	Letter of Intent means the letter of intent between the parties dated 4
November 2010 (as varied in writing on 5 January 2011, 30 January 2011, 14 February
2011, 21 February 2011 and 28 February 2011);

	 	(91)	 	Loss includes any damage, loss, cost, liability or expense of any kind and
however arising (including as a result of any Claim), including penalties, fines and
interest and including any that are prospective or contingent and any the amount of
which for the time being is not ascertained or ascertainable;

	 	(92)	 	Material Adverse Change means one or more material and adverse change, event
or occurrence which takes place after the date of this Agreement and before Completion
which individually or in aggregate has, or is reasonably likely to have, an adverse
effect on the actual or reasonably prospective earnings or the assets or liabilities
of the Business of $2,000,000 or more;

	 	(93)	 	Material Contract means:

	 	(a)	 	the agreement dated 31 August 2007 between Mighty River Power
Limited and Rheochem Pacific Limited (Mud Services contract C2006/82) as
varied from time to time;

	 	(b)	 	the agreement dated 27 May 2008 between Santos Limited and
Rheochem Limited (Wellsite Services Blanket Contract No 868463);

	 	(c)	 	the agreement dated 23 December 2003 between Santos Limited
and Rheochem Limited (Contract No 800386), as varied from time to time
(including each of the variations 1 to 16, inclusive);

	 	(d)	 	the agreement dated 9 April 2010 between Origin Energy
Resources Limited and Rheochem Limited (Services Agreement OEUP 5765);

	 	(e)	 	the agreement dated 7 June 2010 between Oil and Natural Gas
Corporation Limited and Rheochem India Pvt Ltd;

	 	(f)	 	the HOEC Deed; and

	 	(g)	 	the agreement dated 3 December 2010 between Santos Ltd and
Rheochem Limited (Contract number 893950);

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	 	(94)	 	Meeting has the meaning given in clause 2.3(1);

	 	(95)	 	Notice has the meaning given in clause 36.1;

	 	(96)	 	Notice of Meeting has the meaning given in clause 2.3(1);

	 	(97)	 	Options Resolution means the resolution to approve amendments to the Seller’s
employee share option plan (ESOP) so that the sale of the Shares in accordance with
this Agreement does not trigger the requirement for any Employee who holds options
under the ESOP to exercise those options within a period before the expiry date set
out in the options;

	 	(98)	 	Personnel of a person means the officers, employees, professional advisers,
representatives and agents of that person;

	 	(99)	 	Prabhu means Prabhu Marketing Services Limited, a company incorporated in
India with corporate identification number U51900MH1986PTC040489, with its registered
office at Sneha Sadan, 35 — D, Main Avenue, Santa Cruz (W), Mumbai — 400054, India;

	 	(100)	 	Pre-Completion Undertakings means the undertakings given by the Seller in
clause 6;

	 	(101)	 	Pro-Forma Working Capital Register means the working capital register
attached as Annexure F;

	 	(102)	 	Property has the meaning defined in Schedule 2;

	 	(103)	 	Purchase Price means:

	 	(a)	 	the Completion Payment; plus

	 	(b)	 	the India Cash Sum; plus

	 	(c)	 	any amount payable under clause 5.2(3); plus

	 	(d)	 	the First Conditional Payment; plus

	 	(e)	 	the Second Conditional Payment; minus

	 	(f)	 	any amount payable by the Seller to the Purchaser under this
Agreement, including under clause 5.3,

subject to any adjustment under clause 14.2 and/or clause 16.11 and allocated
amongst the Shares as set out in Schedule 1;

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	 	(104)	 	Purchaser Group means the Purchaser and each Related Body Corporate of the
Purchaser, including after Completion each member of the Group;

	 	(105)	 	Purchaser Guarantor Warranties means the warranties set out in Schedule 4;
	 
	 	(106)	 	Purchaser Warranties means the warranties set out in Schedule 3;
	 
	 	(107)	 	Purchaser’s Accountants means Deloitte Touche Tomatsu;
	 
	 	(108)	 	Refund Amount has the meaning given in clause 5.5(4)(a)(i);

	 	(109)	 	Related Body Corporate, Subsidiary and Holding Company each has the meaning
given in section 9 of the Corporations Act;

	 	(110)	 	Relevant Action has the meaning given in clause 39.2;

	 	(111)	 	Relevant Authority has the meaning given in clause 26.3;

	 	(112)	 	Resolution means the resolution to approve the sale of the Shares by the
Seller to the Purchaser in accordance with:

	 	(a)	 	Rule 15 of the AIM Rules; and

	 	(b)	 	Listing Rule 11.2 of the ASX Listing Rules;

	 	(113)	 	Revenue Authority means any Government Agency authorised by law to impose,
collect or otherwise administer any Tax (including the Indonesian Tax Office);

	 	(114)	 	Rheochem India Pvt Ltd means Rheochem India Pvt Ltd with corporate
identification number U24110MH2005PTC153168, a company incorporated in India, with its
registered address at Sneh Sadan, 35D, Main Avenue, Santacruz (West), Mumbai — 400
054;

	 	(115)	 	Rheochem Indonesia, means PT Rheochem Indonesia, a company incorporated in
Indonesia, with its registered address at Bursa Efek Indonesia Building Tower II,
17th Floor, Jl. Jend. Surdirman Kav.52-53, South Jakarta, Indonesia;

	 	(116)	 	Rheochem Indonesia Minority Shares means 19 shares in the capital of
Rheochem Indonesia, which are held by Ms Fadilah;

	 	(117)	 	Rheochem Limited means Rheochem Limited (ACN 099 949 452), a company
incorporated in Australia, with its registered address at 11 Alacrity Place,
Henderson, Western Australia 6166;

	 	(118)	 	Rheochem Pacific Limited means Rheochem Pacific Limited (company number
1467097), a company incorporated in New Zealand, with its registered address at c/-
Hesketh Henry, Level 11, 41 Shortland Street, Auckland;

	 	(119)	 	Second Accounts means the accounts for the Second Accounts Period as
prepared and jointly audited pursuant to Schedule 5, including the notes to such
accounts;

	 	(120)	 	Second Accounts Period means the period from 1 March 2011 to 29 February
2012 (both dates inclusive);

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	 	(121)	 	Second Conditional Payment means an amount equal to EBITDA for the Second
Accounts Period multiplied by 7, less:

	 	(a)	 	an amount equal to the Completion Payment;

	 	(b)	 	the amount of the External Borrowings outstanding at
Completion (if any); and

	 	(c)	 	the First Conditional Payment paid under clause 10.4 (if
any);

	 	(122)	 	Second Conditional Payment Date means the day which is 5 Business Days after
the agreement or determination of the amount of the Second Conditional Payment, in
accordance with the provisions of part C of Schedule 5;

	 	(123)	 	Security means each of the following:

	 	(a)	 	the fixed and floating charge dated 06 February 2004 granted
by Rheochem Limited in favour of ANZ having ASIC registered charge number
1022444;

	 	(b)	 	the mortgage over lease dated 6 February 2004 granted by
Rheochem Limited in favour of ANZ in respect of the property located at Lot 16
and LA17 De Witt location 309 Dampier, Western Australia;

	 	(c)	 	the lessor’s consent to security over a lease dated 8
February 2004 between Dampier Port Authority as head lessor, Toll Energy
Logistics Pty Ltd as sub-lessor, ANZ as mortgagee and Rheochem Limited as
lessee;

	 	(d)	 	the unlimited corporate guarantee and indemnity dated 2
November 2004 granted by the Seller in favour of ANZ as surety on account of
Rheochem Limited;

	 	(e)	 	the registered real property mortgage dated 13 June 2006
granted by Rheochem Limited in favour of ANZ in respect of the property
situated at 11 Alacrity Place, Henderson, Western Australia, being the
property described in Certificate of Title Volume 2622 Folio 926 having
Landgate registered mortgage number J786297;

	 	(f)	 	the deed of cross guarantee and indemnity dated 17 November
2008 granted by the Seller, Rheochem Limited and Rheochem Pacific Limited in
favour of ANZ;

	 	(g)	 	the first registered fixed and floating charge dated 13
August 2008 granted by the Seller in favour of ANZ;

	 	(h)	 	the general security deed dated 17 November 2008 granted by
Rheochem Pacific Limited in favour of ANZ over all of its assets and
undertakings;

	 	(i)	 	the share and securities mortgage dated 17 November 2008
granted in favour of ANZ by the Seller in respect of its shares held in
Rheochem India Pvt Ltd;

	 	(j)	 	deed of postponement dated 12 November 2008 between the
Seller as postponer, Rheochem Limited and ANZ; and

	 	(k)	 	the security interest granted by Rheochem Pacific Limited
over all present and after acquired personal property in favour of ANZ and
registered on
the Personal Property Securities Register in New Zealand on 20 November
2008 with financing statement number FP0MF27898691H9F;

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	 	(124)	 	Seller Group means the Seller and each Related Body Corporate of the Seller,
including before Completion each member of the Group;

	 	(125)	 	Seller Warranties means the warranties set out in Schedule 2, and a
reference to a numbered Seller Warranty is a reference to the clause of that number in
Schedule 2;

	 	(126)	 	Seller Warranty Claim Notice has the meaning given in clause 16.7(1);

	 	(127)	 	Shares means the shares set out in Schedule 1, being all of the shares in
each Group Company owned by the Seller;

	 	(128)	 	Stamp Duty means any duty imposed under the Duties Act 2008 (WA) and any
other similar legislation of a State or Territory of Australia (and any additional
tax, duty, penalty, fine or interest relating to that duty);

	 	(129)	 	Target Working Capital Amount means the sum of $7.3 million;

	 	(130)	 	Tax means:

	 	(a)	 	taxes, duties, fees, rates, charges and imposts of all kinds
assessed, levied or imposed by a Revenue Authority and includes capital gains
tax, fringe benefits tax, income tax, prescribed payments tax, superannuation
guarantee charge, PAYG withholding, undistributed profits tax, payroll tax,
GST, group tax, land tax, import duty, excise, Stamp Duty, municipal and water
rates, withholdings of any nature;

	 	(b)	 	interest, penalties, shortfall penalties, late payment
penalties or any other amount payable as a result of the late or non payment
of tax; and

	 	(c)	 	additional tax in respect of the foregoing;

	 	(131)	 	Tax Act means the Income Tax Assessment Act 1997 (Cth) or the Income Tax
Assessment Act 1936 (Cth) or the Taxation Administration Act 1953 (Cth), as the case
may be;

	 	(132)	 	Tax Claim means a Claim arising out of an alleged or actual breach of a Tax
Warranty or a Claim pursuant to clause 18;

	 	(133)	 	Tax Warranties means the warranties contained in Seller Warranties 20 to 23
(inclusive) of Schedule 2;

	 	(134)	 	Toll means Toll Energy Logistics Pty Ltd ACN 000 129 06;
	 
	 	(135)	 	Transaction means the sale and purchase of the Shares under this Agreement;
	 
	 	(136)	 	Transaction Documents means this Agreement and the Disclosure Letter;

	 	(137)	 	VRMT Shareholders’ Agreement means the shareholders’ agreement between P&M
International, VRMT International Nigeria Ltd and Rheochem Limited in respect of VRMT
Well Services;

	 	(138)	 	VRMT Well Services means VRMT Well Services Limited, registered number RC
420,689, a company incorporated in Nigeria; and

	 	(139)	 	Working Capital means the working capital set out in the Completion Accounts
(which, for the avoidance of doubt, will be the working capital contained in the
working capital register prepared in accordance, and consistent, with the Pro-Forma
Working Capital Register).

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	1.2	 	Interpretation

	 	 	In this Agreement, unless the contrary intention appears:

	 	(1)	 	Reference to:

	 	(a)	 	one gender includes the others;

	 	(b)	 	the singular includes the plural and the plural includes the
singular;

	 	(c)	 	a recital, clause, schedule or annexure is a reference to a
clause of or recital, schedule or annexure to this Agreement and references to
this Agreement include any recital, schedule or annexure;

	 	(d)	 	any contract (including this Agreement) or other instrument
includes any variation or replacement of it;

	 	(e)	 	a statute, ordinance, code or other law includes subordinate
legislation (including regulations) and other instruments under it and
consolidations, amendments, re-enactments or replacements of any of them;

	 	(f)	 	a person includes an individual, a firm, a body corporate, an
unincorporated association or an authority;

	 	(g)	 	a person includes their legal personal representatives
(including executors), administrators, successors, substitutes (including by
way of novation) and permitted assigns;

	 	(h)	 	a group of persons is a reference to any 2 or more of them
taken together and to each of them individually;

	 	(i)	 	a body which has been reconstituted or merged must be taken
to be the body as reconstituted or merged, and a body which has ceased to
exist and the functions of which have been substantially taken over by another
body must be taken to be to that other body;

	 	(j)	 	time is a reference to Western Australian Standard Time;

	 	(k)	 	a reference to a day or a month means a calendar day or
calendar month;

	 	(l)	 	money (including “$”, “AUD” or “dollars”) is to Australian
currency; and

	 	(m)	 	any thing (including any amount or any provision of this
Agreement) is a reference to the whole and each part of it and a reference to
a group of persons is a reference to any 1 or more of them.

	 	(2)	 	An obligation, representation or warranty on the part of or in favour of more
than 1 person binds or is for the benefit of each of them separately and all of them
jointly.

	 	(3)	 	No party enters into this Agreement as agent for any other person (or
otherwise on their behalf or for their benefit) or as a trustee. A party which is a
trustee is bound both personally and in its capacity as a trustee.

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	 	(4)	 	The meaning of any general language is not restricted by any accompanying
example, and the words “includes”, “including”, “such as”, “for example” or similar
words are not words of limitation.

	 	(5)	 	The word “costs” includes charges, expenses and legal costs.

	 	(6)	 	Where a word or expression is given a particular meaning, other parts of
speech and grammatical forms of that word or expression have a corresponding meaning.

	 	(7)	 	Headings and the table of contents are for convenience only and do not form
part of this Agreement or affect its interpretation.

	 	(8)	 	If a period of time is specified and dates from a given day or the day of an
act or event, it is to be calculated exclusive of that day.

	 	(9)	 	The time between 2 days, acts or events includes the day of occurrence or
performance of the 2nd but not the 1st act or event.

	 	(10)	 	If an act must be done on a specified day which is not a Business Day, the
act must be done instead on the next Business Day.

	 	(11)	 	A provision of this Agreement must not be construed to the disadvantage of a
party merely because that party was responsible for the preparation of the Agreement
or the inclusion of the provision in the Agreement.

	2	 	Conditions precedent

	2.1	 	The following conditions must be satisfied on or before the Completion Date before Completion
may take place:

	 	(1)	 	the shareholders of the Seller pass the Resolution at the Meeting;

	 	(2)	 	in relation to the issued redeemable preference shares of Rheochem India Pvt
Ltd:

	 	(a)	 	the board of Rheochem India Pvt Ltd passes a written
resolution to redeem all issued redeemable preference shares;

	 	(b)	 	Rheochem India Pvt Ltd transfers Rs.10,060,000 to the Seller
for the redemption of the redeemable preference shares;

	 	(c)	 	all redeemable preference share certificates are handed over
to Rheochem India Pvt Ltd and cancelled;

	 	(d)	 	the register of members of Rheochem India Pvt Ltd is updated
to reflect the change in shareholding; and

	 	(e)	 	a return, in the form of e-form 5, is submitted for filing
with the Indian Registrar of Companies;

	 	(3)	 	in relation to the issued convertible preference shares of Rheochem India Pvt
Ltd:

	 	(a)	 	the board of Rheochem India Pvt Ltd passes a written
resolution to convert all convertible preference shares to ordinary shares;

	 	(b)	 	all convertible share certificates are handed over to
Rheochem India Pvt Ltd and cancelled;

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	 	(c)	 	ordinary shares are issued pursuant to the conversion of
convertible preference shares by the Seller and Prahbu;

	 	(d)	 	Rheochem India Pvt Ltd issues a new share certificate for the
ordinary shares issued pursuant to the conversion of convertible preference
 shares by the Seller and Prahbu;

	 	(e)	 	the register of members of Rheochem India Pvt Ltd is updated
to reflect the change in shareholding;

	 	(f)	 	a return, in the form of e-form 2, is submitted for filing
with the Indian Registrar of Companies; and

	 	(g)	 	a form FC-GPR (in relation to both the conversion of
preference shares held by the Seller and the issuance of the equity shares) is
submitted for filing with an authorized dealer bank in India;

	 	(4)	 	in relation to the issue of additional ordinary shares of Rheochem India Pvt
Ltd:

	 	(a)	 	the board of Rheochem India Pvt Ltd passes a written
resolution to issue additional ordinary shares to the Seller, so that the
shareholding ratio is 70:30 (Seller:Prabhu);

	 	(b)	 	an overseas remittance of the adequate amount for
subscription of the additional shares is remitted by the Seller to Rheochem
India Pvt Ltd;

	 	(c)	 	ordinary shares of Rheochem India Pvt Ltd are issued to the
Seller;

	 	(d)	 	Rheochem India Pvt Ltd issues a share certificate for the
additional ordinary shares issued to the Seller;

	 	(e)	 	the register of members of Rheochem India Pvt Ltd is updated
to reflect the change in shareholding;

	 	(f)	 	a return, in the form of e-form 2, is submitted for filing
with the Indian Registrar of Companies;

	 	(g)	 	a form FC-GPR is submitted for filing with an authorized
dealer bank in India; and

	 	(h)	 	an intimation (in the prescribed format), in relation to the
receipt of the overseas remittance, is submitted for filing with an authorized
dealer bank in India; and

	 	(5)	 	there has been no Material Adverse Change.

	2.2	 	The Seller must use its reasonable endeavours to ensure that the Conditions are satisfied as
soon as possible but in any event before the Deadline.

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	2.3	 	Without limiting the generality of clause 2.2, for the purpose of satisfying the condition in
clause 2.1(1) and for the purpose of passing the Options Resolution, the Seller shall:

	 	(1)	 	within five Business Days of the date of this Agreement, lodge with ASX a
draft of a notice of meeting to its shareholders (Notice of Meeting) convening a
general meeting (Meeting) to pass the Resolution and the Options Resolution (in a form
agreed between the parties, acting reasonably) in accordance with ASX Listing Rule
15.1. The Notice of Meeting must contain the information required under AIM Rule 15
and Schedule 4 of the AIM Rules, must comply with the ASX Listing Rules
and must include a recommendation by the directors of the Seller to the
shareholders to vote in favour of the Resolution and the Options Resolution;

	 	(2)	 	within five Business Days following ASX notifying the Seller that it does not
object to the draft Notice of Meeting, post the Notice of Meeting to its shareholders.
The Meeting must be scheduled to occur on a date no later than 30 days following the
date of the posting of the Notice of Meeting;

	 	(3)	 	convene the Meeting in accordance with the Companies Act 2006, the ASX
Listing Rules and the Constitution;

	 	(4)	 	procure that the Resolution and the Options Resolution are properly proposed
and put to the Meeting;

	 	(5)	 	not adjourn the Meeting save as may be required by law or its Constitution;
and

	 	(6)	 	procure that any poll at the Meeting is held forthwith,

	 	 	in accordance with all applicable laws, the AIM Rules, the ASX Listing Rules, the Companies
Act 2006, the Corporations Act and the Constitution.

	2.4	 	If a party becomes aware:

	 	(1)	 	that a Condition has been satisfied; or

	 	(2)	 	of any facts, circumstances or matters that may result in a Condition not
being or becoming incapable of being satisfied,

	 	 	that party must promptly notify the other party accordingly.

	2.5	 	The Condition in clause 2.1(1) may not be waived by any party.

	2.6	 	Without prejudice to any other rights which it has under this Agreement, the Purchaser may
waive (to the extent thought fit by the Purchaser) the Conditions (subject to clause 2.5).

	2.7	 	If any of the Conditions are not satisfied or waived on or before the Deadline, this
Agreement shall terminate.

	2.8	 	If this Agreement terminates under clause 2.7, then, in addition to any other rights, powers
or remedies provided by law or in equity:

	 	(1)	 	subject to clause 2.8(2), each party is released from its obligations and
liabilities under or in connection with this Agreement and this Agreement will have no
further force of effect, other than under this clause 2, clause 1, clause 23, clause
25, clause 27, clause 35, clause 36, clause 37, clause 38 and clause 39; and

	 	(2)	 	each party retains the rights, remedies and powers it has in connection with
any past breach or any claim that has arisen before termination.

	2.9	 	The Seller must use reasonable endeavours to procure that:

	 	(1)	 	within 30 days from the passing of the board resolution for the conversion of
the preference shares referred to in clause 2.1(3)(a) the form FC-GPR submitted for
filing under clause 2.1(3)(g) is filed by the authorized dealer bank with the Reserve
Bank of India;

	 	(2)	 	within 30 days from the passing of the board resolution for the issue of
ordinary shares referred to in clause 2.1(4)(a) the form FC-GPR submitted for filing
under
clause 2.1(4)(g) is filed by the authorized dealer bank with the Reserve Bank of
India; and

	 	(3)	 	within 30 days from the date of receipt of the remittance referred to in
clause 2.1(4)(b), the intimation submitted for filing under clause 2.1(4)(h) is filed
by the authorized dealer bank with the Reserve Bank of India.

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	3	 	Exclusivity

	3.1	 	For a period commencing on the date of this Agreement until Completion or the termination of
this Agreement in accordance with its terms (whichever is the earliest to occur), the Seller
and each Group Company and any of their Related Bodies Corporate will at all times, and will
direct the Seller’s Personnel to:

	 	(1)	 	immediately cease any discussions with third parties regarding any
transaction the closing of which might adversely affect or interfere in any manner
with the consummation of the Transaction, including but not limited to a Competing
Transaction;

	 	(2)	 	not directly or indirectly solicit, invite, encourage or initiate any
expression of interest, offer, enquiry or proposal by, or negotiations or discussions
or communications with any third party concerning, or that could reasonably be
expected to lead to, a proposed Competing Transaction;

	 	(3)	 	not directly or indirectly cooperate (including, without limitation, by the
provision of non-public information) in any manner or participate in any negotiations
or discussions concerning, or that could reasonably be expected to lead to, a
Competing Transaction; and

	 	(4)	 	not accept or enter into any agreement, arrangement or understanding
regarding, or that could reasonably be expected to lead to, a Competing Transaction,
or communicate an intention to do so.

	4	 	Sale and purchase

	4.1	 	The Seller agrees to sell the Shares to the Purchaser and the Purchaser agrees to purchase
the Shares from the Seller free from all Encumbrances and otherwise on and subject to the
provisions of this Agreement.

	4.2	 	The Shares must be transferred by the Seller to the Purchaser together with all Accrued
Rights.

	4.3	 	Title to the Shares (and property and risk in them):

	 	(1)	 	remains solely with the Seller until Completion; and

	 	(2)	 	subject to the provisions of this Agreement, passes from the Seller to the
Purchaser with effect from Completion.

	4.4	 	The Purchaser shall not be obliged to complete the purchase of any of the Shares unless the
purchase of all the Shares is completed simultaneously.

	4.5	 	The Seller irrevocably waives any rights of pre-emption conferred on it by the constitutions
of each Group Company or otherwise over any of the Shares.

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	5	 	Purchase Price

	5.1	 	The consideration for the Shares is the Purchase Price.

	5.2	 	The Purchase Price payable to the Seller on the sale of the Shares of Rheochem India Pvt Ltd
to the Purchaser shall be subject to the deduction of the amount of capital gains tax
liability of the Seller (Withholding Tax), which shall be agreed between the parties, each
acting reasonably, prior to the payment of the Purchase Price. The Purchaser shall deposit
the Withholding Tax with the Indian Revenue Authorities in a timely manner and provide
evidence thereof to the Seller, including a valid Form 16A or other appropriate evidence of
such payment. The balance of the Purchase Price is payable as follows:

	 	(1)	 	at Completion, the Completion Payment must be paid by the Purchaser in
accordance with clause 8.5(2);

	 	(2)	 	at Completion, the India Cash Sum must be paid by the Purchaser to the Seller
in accordance with clause 8.5(3);

	 	(3)	 	on the Adjustment Date, the amount (if any) by which the Completion Working
Capital Amount exceeds the Target Working Capital Amount must be paid by the Purchaser
to the Seller;

	 	(4)	 	the First Conditional Payment (if any) must be paid by the Purchaser to the
Seller in accordance with clause 10; and

	 	(5)	 	the Second Conditional Payment (if any) must be paid by the Purchaser to the
Seller in accordance with clause 11.

	5.3	 	If the Target Working Capital Amount exceeds the Completion Working Capital Amount, the
Seller must pay the difference between those amounts to the Purchaser on the Adjustment Date.

	5.4	 	Payment by the Purchaser in accordance with this clause shall constitute good discharge of
the Purchaser’s obligations in respect of payment of the Purchase Price.

	5.5	 	In relation to the Withholding Tax deposited by the Purchaser with the Indian Revenue
Authorities in accordance with clause 5.2:

	 	(1)	 	the Purchaser will keep the Seller informed of any correspondence with the
Indian Revenue Authorities or any material developments as to the assessment of the
Withholding Tax liability by the Indian Revenue Authorities;

	 	(2)	 	the Purchaser will consult with the Seller prior to admitting or conceding
liability or agreeing a compromise or settlement with the Indian Revenue Authorities
as to finalising the Withholding Tax liability;

	 	(3)	 	the Purchaser will consider all reasonable suggestions made by the Seller and
take such reasonable actions as the Seller requests, in relation to contesting or
disputing the amount of Withholding Tax liability; and

	 	(4)	 	if the Indian Revenue Authorities finally determine that the Withholding Tax
liability is:

	 	(a)	 	less than the amount deposited in accordance with clause 5.2:

	 	(i)	 	the Purchaser will use all reasonable
endeavours to pursue a refund from the Indian Revenue Authorities of
the difference (Refund Amount);

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	 	(ii)	 	if requested by the Seller, the Purchaser
must allow the Seller to pursue recovery of the Refund Amount in the
name of the Purchaser or the relevant member of the Purchaser Group
(at the Seller’s cost);

	 	(iii)	 	if and to the extent the Indian Revenue
Authorities credit or offset the Refund Amount against any other
liability owing by a member of the Purchaser Group, the Purchaser will
pay that sum to the Seller;

	 	(iv)	 	the Purchaser must, within 5 Business Days of
receiving the Refund Amount (or any part of it) pay that sum to the
Seller; and

	 	(v)	 	the Refund Amount, once received by the
Seller, will be treated as an increase of the Purchase Price; or

	 	(b)	 	more than the amount deposited in accordance with clause 5.2,
the Seller must within 5 Business Days of the Purchaser delivering written
evidence of such determination to the Seller, pay to the Purchaser an amount
equal to the additional Withholding Tax liability, which the Purchaser must
remit to the Indian Revenue Authorities. Such payment by the Seller will be
treated as a reduction of the Purchase Price.

	6	 	Pre-Completion Undertakings

	6.1	 	Until Completion, the Seller must, unless the Purchaser otherwise agrees in writing (which
agreement must not be unreasonably withheld or delayed), ensure that the Group:

	 	(1)	 	continues to operate the Business substantially in accordance with past
practice, and conduct the Business in compliance with all applicable laws and
regulations;

	 	(2)	 	uses commercially reasonable efforts to maintain the Business and to preserve
its existing relations with its employees, customers, suppliers and others with whom
it has a business relationship in connection with the Business;

	 	(3)	 	notifies the Purchaser as soon as reasonably practicable of any occurrence or
condition that could reasonably be expected to cause a Material Adverse Change,
whether individually or in the aggregate; and

	 	(4)	 	maintains the insurance of its business and its assets as existing at the
date of this Agreement until the end of the Completion Date and, subject to: (i) it
being at no cost to the Seller or a Group Company; or (ii) if the Purchaser agrees, at
the cost of the Purchaser, uses reasonable endeavours to amend the insurance policies
(other than directors and officers insurance) to include the Purchaser as a named
insured (in relation to the period prior to Completion) as of the date of Completion
(and, before Completion, provides to the Purchaser reasonably satisfactory evidence
that it has been named as an insured (if this has occurred)).

	6.2	 	Until Completion, the Seller must, unless the Purchaser otherwise agrees (which agreement
must not be unreasonably withheld or delayed), ensure that no Group Company:

	 	(1)	 	engages in any material transaction not in the ordinary course of the
Business;

	 	(2)	 	materially changes the manner in which they have operated and maintained the
Business;

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	 	(3)	 	issues any shares or other securities, or grants any warrants, options or
other rights to acquire stock or other securities, in any Group Company;

	 	(4)	 	cancels, materially modifies or gives any consent, approval, release or
waiver under any Material Contract;

	 	(5)	 	hires or terminates any director of the Seller Group employed in the Business
or alters the terms of his or her employment;

	 	(6)	 	grants any increase in compensation to employees of the Business or makes
advances or loans or payments of bonuses inconsistent with prior practices;

	 	(7)	 	borrows funds, incurs obligations or makes any material capital expenditure
commitments related to the Business not in the ordinary course of the Business;

	 	(8)	 	grants, or permits the attachment of, any Encumbrance over any of the assets
of the Business or the Group;

	 	(9)	 	enters into any material contract or commitment relating to the Business
(other than a contract or commitment in respect of an Agreed Tender, provided such
contract or commitment is not on terms materially different from the terms of the
Agreed Tender);

	 	(10)	 	enters into, varies or terminates, or gives any consent, approval, release or
waiver under, a contract or commitment with any member of the Seller Group;

	 	(11)	 	incurs any liability or discharges or settles any liability (other than in
the ordinary course of business);

	 	(12)	 	acquires, disposes of or agrees to acquire or dispose of a material asset
(other than in the ordinary course of business);

	 	(13)	 	enters into or resolves to enter into any compromise, arrangement, scheme or
other form of arrangement with a creditor, receiver, receiver and manager,
administrator or other controller in relation to any of its assets or undertakings;

	 	(14)	 	issues, redeems, buys back, reduces or cancels any shares or other securities
in its capital;

	 	(15)	 	varies or cancels any rights or restrictions attached to shares or other
securities in its capital;

	 	(16)	 	alters (including by way of consolidation or division) its capital in any
way;

	 	(17)	 	modifies or repeals its constitution; or

	 	(18)	 	declares, decides to pay or pays a dividend, makes a distribution or revalues
any assets.

	 	 	However, the Seller may do any of these things if this Agreement expressly so provides,
including entering into any contract or commitment in respect of the Agreed Tenders.

	6.3	 	Whether before, at or after Completion, the Seller must not do anything to cause a Group
Company to become a member of a:

	 	(1)	 	Consolidated Group; or

	 	(2)	 	GST Group,

	 	 	with effect from a time before Completion.

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	6.4	 	In complying with clauses 6.1 and 6.2, the Seller is not required to do or omit to be done
anything which would, in its reasonable opinion:

	 	(1)	 	disrupt or adversely affect the day-to-day operations of the Group; or

	 	(2)	 	prevent or hinder Completion taking place.

	6.5	 	The Seller must:

	 	(1)	 	ensure that each Group Company provides the Purchaser with a copy of a
monthly balance sheet and income statement in relation to that Group Company, between
the date of this Agreement and Completion;

	 	(2)	 	ensure that each Group Company provides to the Purchaser a copy of all
written communications between each Group Company and any Government Agency between
the date of this Agreement and Completion;

	 	(3)	 	use its reasonable endeavours to ensure that until Completion the Purchaser
and its Personnel are given reasonable access during business hours to all assets
(including the premises and the books and records) of the Group in connection with the
Business, so long as:

	 	(a)	 	reasonable notice is given of any request for access; and

	 	(b)	 	that access does not in the reasonable opinion of the Seller
disrupt or adversely affect the day-to-day operation of the Business;

	 	(4)	 	use its reasonable endeavours to ensure that until Completion the relevant
responsible officers and employees of the Group are available during business hours to
assist the Purchaser and its Personnel with explanations about the Business, so long
as:

	 	(a)	 	reasonable notice is given of any request for assistance; and

	 	(b)	 	that assistance does not in the reasonable opinion of the
Seller disrupt or adversely affect the day-to-day operation of the Business;

	 	(5)	 	ensure that the Purchaser is entitled, at the Purchaser’s expense, to take
copies of and extracts from the books and records to which it has access; and

	 	(6)	 	subject to clause 6.2(9), up until Completion, notify the Purchaser before
any Group Company enters into any material contract or commitment relating to the
Business (including those in respect of the Agreed Tenders).

	6.6	 	If, before Completion:

	 	(1)	 	the Purchaser is aware, or becomes aware, of any matter which will, or is
likely to, give rise to a breach of a Seller Warranty, the Purchaser must as soon as
possible, but before Completion, notify the Seller of that matter giving reasonably
sufficient details; or

	 	(2)	 	the Seller is aware, or becomes aware, of any matter which will, or is likely
to, give rise to a breach of a Seller Warranty, the Seller must as soon as possible,
but
before Completion, notify the Purchaser of that matter giving reasonably sufficient details.

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	6.7	 	If either the Purchaser or the Seller gives a notice under clause 6.6:

	 	(1)	 	the Seller may take steps to remedy a notified matter, and may then require
the Purchaser to state whether or not it is satisfied that the notified matter has
been remedied;

	 	(2)	 	the Seller may offer compensation (such as a reduction in the Purchase Price)
to the Purchaser in full satisfaction of any breach of Seller Warranty to which the
notified matter gives rise; and

	 	(3)	 	if the Purchaser states by written notice to the Seller that it is satisfied
that the notified matter has been remedied, or if the Purchaser by written notice to
the Seller accepts compensation in full satisfaction, the notified matter is taken not
to be a breach of any Seller Warranty and (apart from any agreed compensation) the
Purchaser has no Claim in respect of it.

	6.8	 	If a notice is issued by the Seller or the Purchaser under clause 6.6 in respect of a
Fundamental Warranty and the Purchaser has not issued a notice to the Seller under clause
6.7(3), the Purchaser may, before Completion, by notice in writing to the Seller immediately
terminate this Agreement in accordance with clause 22.1, in which case it will not have any
other rights, powers or remedies (whether provided by law or in equity or otherwise) in
respect of the matter giving rise to the right to terminate.

	6.9	 	Nothing in this clause 6 prevents the Seller from complying with its obligations in clause 8.
	 
	7	 	Pre-Completion notifications
	 
	7.1	 	No later than 10 Business Days prior to Completion, the Purchaser must notify the Seller of:

	 	(1)	 	the name of each person who will be appointed as a director, secretary or
public officer of each Group Company from Completion (and, in the case of Rheochem
Indonesia, commissioner), and provide the Seller with a consent to act signed by each
of them consenting to act in the position to which they have been nominated (and, in
the case of Rheochem Pacific Limited, a certification that the nominated person is not
disqualified to act in the position to which he or she has been nominated); and

	 	(2)	 	details of any new or revised authorities to operate the bank accounts of the
Group.

	7.2	 	No later than 5 Business Days prior to Completion, the Seller must notify the Purchaser of
the amount of the India Cash Sum and provide documentary evidence in support of that amount.

	8	 	Completion

	8.1	 	Completion will take place:

	 	(1)	 	at 2.00pm on the Completion Date or such other time on the Completion Date as
the Seller and the Purchaser may agree in writing; and

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	 	(2)	 	at the office of the Seller’s solicitors, Blake Dawson at Level 32 Exchange
Plaza, 2 The Esplanade, Perth WA or such other place as the Seller and the Purchaser
may agree in writing.

	8.2	 	Subject to clause 8.8, at Completion, the Seller must deliver (or, where appropriate, ensure
that the Group delivers) to the Purchaser:

	 	(1)	 	transfer forms (executed by the Seller and in registrable form, subject to
stamping) of the Shares in favour of the Purchaser (or as it may direct), together
with duly executed powers of attorney or other authorities under which any of the
transfers have been executed. In the case of Rheochem Indonesia, duly authorised
representatives of the Seller and the Purchaser must execute a Deed of Share Sale and
Purchase (Akta Jual Beli Saham) before a Notary in Indonesia;

	 	(2)	 	all certificates for the Shares (or an indemnity for any lost share
certificates or a certificate signed by the directors of any Group Company that has
never issued share certificates certifying that that is the case, in each case, in a
form reasonably satisfactory to the Purchaser);

	 	(3)	 	a copy of the Resolution, certified as a true copy by a director or the
secretary of the Seller;

	 	(4)	 	(if not already delivered) a copy of minutes of a meeting of the directors of
the Seller authorising the execution of, and the performance by the Seller of its
obligations under, this Agreement and the execution of the transfers, certified as a
true copy by a director or the secretary of the Seller;

	 	(5)	 	with respect to Rheochem Indonesia:

	 	(a)	 	the resolutions of shareholders of Rheochem Indonesia (in the
form of a notarial deed) having resolved to approve:

	 	(i)	 	the transfer of the Shares in Rheochem
Indonesia from the Seller to the Purchaser, except for the Rheochem
Indonesia Minority Shares; and

	 	(ii)	 	the replacement of the existing members of
the Board of Directors and Board of Commissioners of Rheochem
Indonesia with members nominated by the Purchaser; and

	 	(b)	 	the original of the approval of BKPM with respect to the
transfer of shares in Rheochem Indonesia from the Seller to the Purchaser,
except for the Rheochem Indonesia Minority Shares;

	 	(6)	 	(if not already delivered) the duly executed Disclosure Letter;

	 	(7)	 	the register of members of each Group Company;

	 	(8)	 	the register of directors of each Group Company and all seals, minute books,
statutory books and registers, certificates of incorporation, books of account,
trading, tax and financial records, copies of taxation returns, constitutions and
other documents and papers of each Group Company;

	 	(9)	 	authorities directed to the Group’s bankers authorising the operation of each
bank account of the Group in accordance with any details notified by the Purchaser
under clause 7.1(2) or, in the absence of any details, or inadequate details, being
notified by the Purchaser under clause 7.1(2), a notice directed to the Group’s
bankers revoking all existing banking authorities given by the Group;

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	 	(10)	 	a consent, in a form reasonably satisfactory to the Purchaser, from Contact
Energy Limited, to the transfer of shares in Rheochem Pacific Limited under this
Agreement, such consent to include a waiver of Contact Energy Limited’s right to
terminate under clause 14.4 of the Contact Energy Contract, by reason of the transfer
of shares in Rheochem Pacific Limited under this Agreement;

	 	(11)	 	a consent, in a form reasonably satisfactory to the Purchaser, from Chevron,
to the transfer of shares in Rheochem Limited under this Agreement, such consent to
include a waiver of Chevron’s right to terminate under clause 3.2A of the Chevron
Contract, by reason of the transfer of shares in Rheochem Limited under this
Agreement;

	 	(12)	 	the written resignations and acknowledgement of no claims, in a form approved
by the Purchaser (acting reasonably), of each director, secretary and public officer
of each Group Company (and, in the case of Rheochem Indonesia, commissioners);

	 	(13)	 	all current permits, licences and other documents issued to the Group under
any legislation or ordinance relating to its business activities;

	 	(14)	 	all keys and codes of whatever nature required to enter or gain access to any
property of the Group, including all keys and combinations required to unlock
cupboards, safes, safe deposit boxes, storage rooms, filing cabinets and desk drawers,
all keys and codes necessary to gain access to computers and to programs and data
stored on computers used by the Group, and all keys and codes necessary for the Group
to lodge or file documents with any Government Agency, including ASIC and New Zealand
Companies Office;

	 	(15)	 	a copy transfer form (executed by Rheochem Limited as transferor and the
Seller as transferee and in registrable form, subject to stamping) of all of the
 shares held by Rheochem Limited in VRMT Well Services and evidence (to the Purchaser’s
reasonable satisfaction) of the registration of the transfer in the register of
members of VRMT Well Services, together with duly executed powers of attorney or other
authorities under which the transfer was executed;

	 	(16)	 	a copy of minutes of a meeting of the directors of VRMT Well Services, signed
by 2 directors of VRMT Well Services, approving the transfer of shares referred to in
clause 8.2(15);

	 	(17)	 	a consent from Toll (including the execution by Toll of any documentation
ancillary to that consent) (pursuant to clauses 8.1 and 8.4 of the Head Lease which
are incorporated by reference into the Dampier Lease pursuant to clause 4 of the
Dampier Lease), in a form reasonably satisfactory to the Purchaser, to the transfer of
 shares in Rheochem Limited from the Seller to the Purchaser;

	 	(18)	 	a consent or waiver, in a form reasonably satisfactory to the Purchaser, from
the DPA or the Minister for Transport on behalf of the DPA under the Dampier Lease, to
the transfer of shares in Rheochem Limited from the Seller to the Purchaser; and

	 	(19)	 	evidence, in a form reasonably satisfactory to the Purchaser, that:

	 	(a)	 	all External Borrowings have been repaid and released in full
(unless otherwise directed by the Purchaser);

	 	(b)	 	all outstanding indebtedness owed by the Seller or any member
of the Seller’s Group or any director of the Seller or the Seller’s Group
(excluding the Group Companies), to a Group Company are repaid in full to each
Group Company;

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	 	(c)	 	all Guarantees given by any Group Company in respect of
liabilities of the Seller or any member of the Seller’s Group (excluding the
Group Companies), any director of any such company or any other person who is
not a member of the Group, have been released;

	 	(d)	 	the Security has been released and discharged in full (such
evidence to be in the form of formal deeds of release and release forms duly
executed by the chargee);

	 	(e)	 	the India Joint Venture Agreement has been amended/novated
to:

	 	(i)	 	incorporate the Purchaser as a party to such
agreement in place of the Seller; and

	 	(ii)	 	remove the Seller as a party to such
agreement (the novated/ amended Indian Joint Venture Agreement being
hereafter referred to as the “Amended Joint Venture Agreement”);

	 	(f)	 	with respect to Rheochem Indonesia:

	 	(i)	 	the board of directors of Rheochem Indonesia
has published the proposed change in control of Rheochem Indonesia in
a daily newspaper; and

	 	(ii)	 	Rheochem Indonesia has satisfied any
obligations towards its creditors, as required by the Indonesian
Company Law; and

	 	(g)	 	with respect to the Indonesian Cooperation Agreements:

	 	(i)	 	an assignment of the Loan Agreement from the
Seller to the Purchaser has been executed by the Seller and Ms
Fadillah;

	 	(ii)	 	a release of the Pledge of Shares has been
executed by the Seller;

	 	(iii)	 	an agreement to pledge the Shares in
Rheochem Indonesia held by Ms Fadilah in favour of the Purchaser has
been executed by Ms Fadilah and Rheochem Indonesia;

	 	(iv)	 	a termination of the Irrevocable Power of
Attorney to Vote has been executed by the Seller;

	 	(v)	 	an irrevocable power of attorney to vote the
 shares in Rheochem Indonesia held by Ms Fadilah in favour of the
Purchaser has been executed by Ms Fadilah;

	 	(vi)	 	a termination of the Irrevocable Power of
Attorney to Sell Shares has been executed by the Seller;

	 	(vii)	 	an irrevocable power of attorney to sell the
 shares in Rheochem Indonesia held by Ms Fadilah in favour of the
Purchaser has been executed by Ms Fadilah;

	 	(viii)	 	an assignment from the Seller to the Purchaser of the Indemnity
Agreement has been executed by the Seller and Ms Fadilah (such
assignment to include an acknowledgement that the Purchaser has no
liability under the indemnity for acts of Ms Fadilah prior to
Completion); and

	 	(ix)	 	an agreement with respect to Ms Fadilah’s
actions as Director of Rheochem Indonesia being subject to the written
instructions of the Purchaser has been executed by Ms Fadilah.

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	 	 	The items referred to in sub-clauses (8), (13) and (14) may be delivered by leaving them at
the premises at which they are ordinarily stored by the Group. The items referred to in
sub-clause (7) may be delivered to the offices of Luthra & Luthra in respect of the
registers of Rheochem India, Chapman Tripp in respect of the registers of Rheochem Pacific
and Susandarini & Partners in respect of the registers of Rheochem Indonesia.

	8.3	 	At Completion, the Seller must ensure that a duly convened meeting of the directors of each
Group Company is held, at which a quorum of directors is present and acting throughout, at
which:

	 	(1)	 	the directors of each Group Company resolve to:

	 	(a)	 	register the transfer of the Shares delivered under clause
8.2(1) in respect of that Group Company, subject to stamping, despite any
contrary provision of the constitution of the relevant Group Company;

	 	(b)	 	(in case of each Group Company other than Rheochem India Pvt
Ltd) cancel the existing share certificates for the Shares in that Group
Company and issue new share certificates for those Shares in the name of the
Purchaser, or (in the case of Rheochem India Pvt Ltd) endorse the share
certificates representing the Shares (of Rheochem India Pvt Ltd) in favour of
the Purchaser;

	 	(c)	 	appoint as directors, secretaries and public officers (as
appropriate) of that Group Company (except for Rheochem Indonesia) those
persons nominated by the Purchaser under clause 7.1(1), subject to those
persons providing their written consent;

	 	(d)	 	accept and take note of the resignations of each director,
secretary and public officer of that Group Company (except for Rheochem
Indonesia) whose resignation is delivered under clause 8.2(12);

	 	(e)	 	revoke all existing banking authorities given by that Group
Company and approve any new or revised banking authorities notified by the
Purchaser under clause 7.1(2); and

	 	(f)	 	revoke all existing powers of attorney or other authorities
granted by that Group Company; and

	 	(2)	 	additionally, the directors of Rheochem India Pvt Ltd resolve to:

	 	(a)	 	authorize the entering in the register of
shareholders/members the name of the Purchaser as the legal and beneficial
holder of the Shares;

	 	(b)	 	adopt the Agreed Form of Articles as the articles of
association of Rheochem India Pvt Ltd, subject to the approval of the
shareholders. “Agreed Form of Articles” shall mean the articles of association
as amended to reflect the terms of the Amended Joint Venture Agreement; and

	 	(c)	 	approve the issuance of a notice to call a meeting of the
shareholders of Rheochem India Pvt Ltd on the Completion Date, at short
notice, to approve the adoption of the Agreed Form of Articles.

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	8.4	 	Rheochem India Pvt Ltd shall hold an extraordinary general meeting on the Completion Date
with short notice and shall, at such meeting, place a resolution for approval and adoption of
the Agreed Form of Articles.

	8.5	 	At Completion, the Purchaser must:

	 	(1)	 	ensure that the Issuing Bank delivers to the Seller the Letter of Credit,
duly executed by the Issuing Bank;

	 	(2)	 	pay the Seller (or as directed by the Seller) the Completion Payment;

	 	(3)	 	pay the Seller (or as directed by the Seller) the India Cash Sum;

	 	(4)	 	deliver to the Seller copies of an extract of minutes of meetings of the
directors of the Purchaser and the directors of the Purchaser Guarantor authorising
the execution of, and the performance by each of its obligations under, this
Agreement, certified as true copies by a director or the secretary of the Purchaser
and the Purchaser Guarantor respectively; and

	 	(5)	 	produce to the Seller for inspection the consents of the directors and
secretaries referred to in clause 8.3(1)(c).

	8.6	 	Subject to clause 8.8, the requirements of clauses 8.2, 8.3 and 8.5 are interdependent and
are to be carried out contemporaneously and, as nearly as may be possible, simultaneously. No
delivery, payment or other event referred to in clauses 8.2, 8.3 and 8.5 will be regarded as
having been made or occurred until all deliveries and payments have been made and all other
events have occurred.

	8.7	 	Within 10 Business Days of Completion, the Seller will take all steps necessary (including
filings with all relevant Government Agencies) to effect changes to the names of the Seller
and each member of the Seller Group to remove the reference to “Rheochem”.

	8.8	 	If the Seller is unable to deliver (or procure delivery of) the documents set out in clause
8.2 on the Completion Date, it will use all reasonable endeavours to do so as soon as
reasonably practicable following Completion. A failure to deliver a document set out in
clause 8.2 entitles the Purchaser to take the action set out in the table below:

	 	 	 	 	 
	Completion	 	 	 	 
	Item	 	 	 	 
	(sub-clause	 	Purchaser able to terminate this	 	Purchaser able to claim the
	of clause 8.2)	 	agreement under clause 22.2(5)	 	break fee under clause 23.3(3)
	(1)

	 	Yes
	 	Yes
	(2)

	 	Yes
	 	Yes
	(3)

	 	Yes
	 	Yes
	(4)

	 	Yes
	 	Yes
	(5)(a)

	 	No
	 	No
	(5)(b)

	 	No
	 	No
	(6)

	 	Yes
	 	Yes
	(7)

	 	Yes
	 	No

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	Completion	 	 	 	 
	Item	 	 	 	 
	(sub-clause	 	Purchaser able to terminate this	 	Purchaser able to claim the
	of clause 8.2)	 	agreement under clause 22.2(5)	 	break fee under clause 23.3(3)
	(8)

	 	No
	 	No
	(9)

	 	Yes
	 	No
	(10)

	 	No
	 	No
	(11)

	 	No
	 	No
	(12)

	 	Yes
	 	No
	(13)

	 	No
	 	No
	(14)

	 	No
	 	No
	(15)

	 	Yes
	 	No
	(16)

	 	No
	 	No
	(17)

	 	No
	 	No
	(18)

	 	No
	 	No
	(19)(a)

	 	Yes
	 	Yes
	(19)(b)

	 	Yes
	 	Yes
	(19)(c)

	 	Yes
	 	Yes
	(19)(d)

	 	Yes
	 	Yes
	(19)(e)

	 	Yes
	 	No
	(19)(f)

	 	No
	 	No
	(19)(g)

	 	No
	 	No

	8.9	 	The Seller will use all reasonable endeavours (at its own cost) to register with the Nigerian
Corporate Affairs Commission (CAC) the transfer of shares in VRMT Well Services detailed in
clause 8.2(15) as soon as reasonably practicable following Completion and in any event by no
later than the date which is 90 days after Completion. The Seller will deliver to the
Purchaser evidence that CAC has registered such transfer within 10 Business Days of such
registration.

	8.10	 	If the shareholders of the Seller pass the Options Resolution at the Meeting, the Seller will
do all things necessary to comply with the terms of the Options Resolution as soon as
reasonably practicable after Completion.

	8.11	 	At Completion, the Seller will be entitled to withdraw all cash held at bank in the names or
in favour of any Group Company, except amounts constituting the India Cash Sum.

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	8.12	 	The parties agree to use all reasonable endeavours to secure the services of Craig McGuckin,
an employee of the Seller as at the date of this Agreement, on a secondment basis to the
Purchaser Group for such period following Completion as the Purchaser reasonably requires
provided that such period does not extend beyond the end of the Second Accounts Period.

	9	 	Working Capital adjustment

	9.1	 	The Purchaser must arrange for the preparation and delivery to the Seller of the Completion
Accounts as soon as possible and in any event within 90 days after the date of Completion.

	9.2	 	The Seller must provide the Purchaser and the Purchaser’s Accountants with all necessary
assistance and support to prepare the Completion Accounts.

	9.3	 	The Completion Accounts must:

	 	(1)	 	be prepared:

	 	(a)	 	in accordance with all applicable laws, including the
Corporations Act;

	 	(b)	 	in accordance with applicable law and International Financial
Reporting Standards (IFRS) as established by the European Union;

	 	(c)	 	in the same format and on a basis which is consistent with
the Pro-Forma Working Capital Register;

	 	(d)	 	subject to clauses 9.3(1)(a) to 9.3(1)(c), in accordance with
the accounting principles, policies, practices and procedures adopted in the
preparation of the Financial Statements; and

	 	(e)	 	on the basis that the events required to occur on Completion
under clause 8 have occurred; and

	 	(2)	 	be accompanied by a statement by an officer of the Purchaser stating:

	 	(a)	 	that the Completion Accounts have been prepared in accordance
with the provisions of this Agreement; and

	 	(b)	 	the Completion Working Capital Amount and the amount (if any)
by which the Completion Working Capital Amount is greater than or less than
the Target Working Capital Amount.

	9.4	 	The Seller will have a period of 30 Business Days to review the Completion Accounts after
they have been delivered to the Seller. If, within that period of 30 Business Days, the
Seller notifies the Purchaser that it disputes any aspect of the Completion Accounts, and
specifies:

	 	(1)	 	each item in the Completion Accounts that it disputes;

	 	(2)	 	the grounds on which it disputes each such item; and

	 	(3)	 	the proposed adjustment to each item it disputes,

	 	 	the Seller and the Purchaser must co-operate with each other and do all things reasonably
necessary to resolve the dispute within 10 Business Days after that notification. If the
Seller fails to notify the Purchaser of any dispute within that period of 30 Business Days,
or if the Seller notifies the Purchaser within that period of 10 Business Days that it has
no
objection to the Completion Accounts, the Seller will be bound by the Completion Accounts,
which will be final and conclusive of all matters stated in them.

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	9.5	 	The Seller must not dispute any single item or the calculation of any single item in the
Completion Accounts unless:

	 	(1)	 	the amount in dispute in relation to that single item exceeds $10,000; and

	 	(2)	 	the sum of all amounts in dispute which satisfy clause 9.5(1) exceeds
$100,000.

	9.6	 	If the Seller and the Purchaser are able to resolve any dispute within 10 Business Days after
the Seller notifies the Purchaser of the dispute under clause 9.4, the Completion Accounts
with any adjustments agreed between the Seller and the Purchaser will be final and conclusive
of all matters stated in them. If the Seller and the Purchaser fail to resolve any dispute
within 10 Business Days after the Seller notifies the Purchaser of the dispute under clause
9.4, the dispute must be submitted for determination by the Independent Accountants on the
reference of either the Seller or the Purchaser (with notice of reference to the other). The
Independent Accountants must be appointed to act on the following basis:

	 	(1)	 	the Independent Accountants must act as experts and not as arbitrators;

	 	(2)	 	the Independent Accountants must determine the matter in dispute as soon as
possible and in any event within 10 Business Days after their appointment;

	 	(3)	 	the Purchaser and the Seller:

	 	(a)	 	must provide the Independent Accountants with all information
the Independent Accountants reasonably require;

	 	(b)	 	are entitled to make written submissions to the Independent
Accountants; and

	 	(c)	 	must provide the other with a copy of all information
provided and submissions made to the Independent Accountants;

	 	(4)	 	the Independent Accountants are entitled (to the extent they consider it
appropriate) to base their opinion on the information provided and submissions made by
the Purchaser and the Seller and on the books and records of the Group;

	 	(5)	 	the Independent Accountants may seek the advice of another expert at their
discretion;

	 	(6)	 	the determination of the Independent Accountants is (in the absence of
manifest error) conclusive and binding on the Seller and the Purchaser, and the
Completion Accounts adjusted to reflect the determination of the Independent
Accountants are final and conclusive of all matters stated in them; and

	 	(7)	 	the costs of the Independent Accountants must be borne by the Purchaser and
the Seller in accordance with the determination of the Independent Accountants or,
failing any determination, in equal one-half shares.

	10	 	First Conditional Payment

	10.1	 	If EBITDA for the First Accounts Period is equal to or exceeds $2 million, the Purchaser
shall pay to the Seller the First Conditional Payment.

	10.2	 	In no circumstances will the First Conditional Payment exceed $2 million.

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	10.3	 	If EBITDA for the First Accounts Period is less than $2 million, the First Conditional
Payment shall not be payable.

	10.4	 	The First Conditional Payment is due on the First Conditional Payment Date and will be paid
by the Purchaser by electronic funds transfer to an account nominated in writing by the
Seller.

	10.5	 	Any part of the First Conditional Payment which is not satisfied under this clause will
remain immediately due and owing by the Purchaser in accordance with clause 10.4.

	10.6	 	The provisions of Part C of Schedule 5 shall apply to the drawing up of the First Accounts.

	11	 	Second Conditional Payment

	11.1	 	Subject to clause 11.2, if EBITDA for the Second Accounts Period exceeds $3,390,000, the
Purchaser shall pay to the Seller the Second Conditional Payment.

	11.2	 	The Second Conditional Payment shall not exceed an amount equal to $45 million plus the India
Cash Sum, less an amount equal to the Completion Payment plus External Borrowings outstanding
at Completion (if any).

	11.3	 	Notwithstanding clause 11.1, if the calculation of the Second Conditional Payment results in
a negative amount, the Second Conditional Payment will be taken to be nil and no payment
obligation of the Purchaser will arise in respect of the Second Conditional Payment.

	11.4	 	The Second Conditional Payment is due on the Second Conditional Payment Date and will be paid
by the Purchaser by electronic funds transfer to an account nominated in writing by the
Seller.

	11.5	 	If the Second Conditional Payment becomes due and the Purchaser does not pay the Second
Conditional Payment under clause 11.4, the Second Conditional Payment (or part of that amount)
will be paid on demand by the Issuing Bank to the Seller under the Letter of Credit. The
Seller will not issue a demand to the Issuing Bank unless the Purchaser has failed to comply
with is obligations under clause 11.4.

	11.6	 	If, under clause 11.5, the Seller becomes entitled to payment of all or part of the Second
Conditional Payment under the Letter of Credit, the Purchaser must confirm the amount payable
to the Issuing Bank in accordance with the terms of the Letter of Credit.

	11.7	 	Any part of the Second Conditional Payment which is not satisfied under clause 11.5 will
remain immediately due and owing by the Purchaser in accordance with clause 11.4.

	11.8	 	If:

	 	(1)	 	no Second Conditional Payment is due to the Seller in accordance with clause
11.3; or

	 	(2)	 	the Second Conditional Payment is paid by the Purchaser in accordance clause
11.4,

	 	 	then the Seller must on the Second Conditional Payment Date release the Issuing Bank from
all of its obligations and liabilities under the Letter of Credit and return the original
Letter of Credit to the Issuing Bank.

	11.9	 	The provisions of Part C of Schedule 5 shall apply to the drawing up of the Second Accounts.

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	12	 	Conditional Payment restrictions

	12.1	 	The Purchaser must use its reasonable endeavours to procure that until 29 February 2012
(unless the parties agree otherwise) the profitability of the Group shall not be artificially
reduced by any act or omission of a Group Company or the Purchaser Group.

	12.2	 	Without limiting the operation of clause 12.1 and subject to clause 12.3, until 29 February
2012, except with the prior written consent of the Seller, the Purchaser will:

	 	(1)	 	ensure that the Business is adequately financed;

	 	(2)	 	continue to operate the Business consistent with historical practices;

	 	(3)	 	procure that no Group Company enters into a transaction which is not on arm’s
length terms, except where the parties enter into a transaction on terms which would
be reasonable in the circumstances if the parties were dealing at arms length;

	 	(4)	 	other than in the ordinary course of business, ensure that no amendment or
variation is made to any contract to which any Group Company is a party and that no
contract is terminated;

	 	(5)	 	ensure that no charge is levied on any Group Company for goods and services
provided to it by any other member of the Purchaser Group other than on terms that
would be reasonable in the circumstances if the parties were dealing at arm’s length;

	 	(6)	 	ensure that the rates of remuneration of employees of the Group Companies are
not increased except for increases which, taken as a whole, are no greater than those
awarded to employees of the Purchaser generally;

	 	(7)	 	ensure that insurance policies equivalent to those in place for the benefit
of the Group Companies prior to Completion are effected and maintained;

	 	(8)	 	not by any act or omission, materially adversely affect the ability of any
Group Company to carry out its contracts and obligations;

	 	(9)	 	not make any change to the nature of the business of any Group Company that
is likely to materially reduce the amount of the First Conditional Payment or the
Second Conditional Payment;

	 	(10)	 	not allow any Group Company to dispose of any material part of its business
or assets or acquire any material company or business;

	 	(11)	 	not dispose of shares in a Group Company; and

	 	(12)	 	not pass any resolution to wind up any Group Company or to cause any Group
Company to cease to carry on any part of its business, except in circumstances in
where such Group Company is loss-making or insolvent or the directors of such Group
Company reasonably believe, after receiving advice, that it is their duty to cause
such Group Company to be wound up, having regard to its financial position, or that
they may incur personal liability for the debts of the Group Company.

	12.3	 	Notwithstanding the restrictions in clause 12.2, the Purchaser may during the period ending
on 29 February 2012 and thereafter, wind-up or liquidate Rheochem Indonesia (or take such
actions to commence such actions) provided that this does not in any material way adversely
affect the profitability of the Group or such effects on profitability are ignored in the
calculation of EBITDA for the purposes of calculating the First Conditional Payment (if
such event or action occurs during the First Accounts Period) and the Second Conditional
Payment.

	12.4	 	During the Second Accounts Period, the Purchaser will prepare, and provide the Seller with
copies of, quarterly balance sheets and income statements in relation to the Group Companies
as soon as possible after the expiry of each quarterly period.

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	13	 	Conditional Payment Security

	13.1	 	The Purchaser will provide security in favour of the Seller for the payment of the Second
Conditional Payment under clause 11 (Conditional Payment Security) by arranging for an
irrevocable standby letter of credit to be issued by a reputable bank (Issuing Bank) in favour
of the Seller for an amount equal to US$9,900,000 and expiring on the Second Conditional
Payment Date, in a form agreed between the Seller and the Purchaser (acting reasonably) prior
to Completion (Letter of Credit), and delivering the Letter of Credit to the Seller in
accordance with clause 8.5(1).

	14	 	Payments

	14.1	 	All payments in connection with this Agreement must be made by way of direct transfer of
funds to an account nominated in writing by the party to whom the payment is due.

	14.2	 	Subject to clause 14.3, all payments made in connection with this Agreement must be made in
full without deducting or withholding any amount (including by way of set-off or
counterclaim), unless required by law.

	14.3	 	If any amount is payable by the Seller to the Purchaser pursuant to an Agreed Claim or under
clause 17 (Indemnity) or under clause 18 (Tax), the Purchaser is entitled to set off that
amount against any amount payable by the Purchaser to the Seller under this Agreement,
including any part of the Purchase Price.

	15	 	Warranties

	15.1	 	The Seller represents and warrants to the Purchaser (for itself and as trustee for its
successors in title) that each statement in Schedule 2 is true and accurate and not misleading
on the date of this Agreement and will remain true and accurate until Completion, except that
a Seller Warranty which states it is made as at or only on one of those dates, or as at some
other time, is made only as at that date.

	15.2	 	The Seller acknowledges that the Purchaser has entered into this Agreement relying on the
Seller Warranties.

	15.3	 	The Seller indemnifies the Purchaser and each Group Company against all Loss arising from or
connected with a breach of any Seller Warranty.

	15.4	 	The Purchaser acknowledges that:

	 	(1)	 	it and its representatives have had an opportunity to conduct a due diligence
investigation and evaluation of the Business and each Group Company and to review all
Disclosure Material, and have used this opportunity;

	 	(2)	 	it:

	 	(a)	 	has made, and relies on, its own searches, investigations and
enquiries in relation to the Business and each Group Company;

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	 	(b)	 	has had independent legal, financial and technical advice
relating to the purchase of the Business and each Group Company and to the
terms of this Agreement and the documents to be executed pursuant to it; and

	 	(c)	 	has made and is relying on its own independent investigation,
analysis and evaluation of the information provided by the Seller (including
the Disclosure Material) and of other information which it considers relevant;
and

	 	(3)	 	as at the date of this Agreement and on Completion (other than as notified
under clause 6.6), neither the Purchaser nor any member of the Purchaser Group or any
of its Personnel knows or is reasonably aware of anything which is, or would be likely
with the lapse of time to become, a breach of any Seller Warranty.

	15.5	 	The Purchaser acknowledges that, except for the Seller Warranties, neither the Seller nor any
member of the Seller Group makes any express or implied representation or warranty at all.
Without limiting this, the Purchaser acknowledges that:

	 	(1)	 	at no time has the Seller or any member of the Seller Group made or given, or
any person relied on, any representation, warranty, promise, forward-looking
statement, projection or forecast, except for the Seller Warranties; and

	 	(2)	 	no other statements or representations have induced or influenced the
Purchaser to enter into this Agreement or agree to any or all of its terms, been
relied on in any way as being accurate, been warranted as being true or been taken
into account as being important to their decision to enter into this Agreement or
agree to any of its terms.

	15.6	 	To the full extent permitted by law, every condition, warranty, term, provision,
representation or undertaking (whether express, implied, written, oral, collateral, statutory
or otherwise) except the Seller Warranties is excluded.

	15.7	 	To the extent permitted by law, the Purchaser:

	 	(1)	 	agrees not to make, and releases any right it may have to make, against the
Seller any Claim based on Part 7.10 (including section 1041H) of the Corporations Act,
Part 2 Division 2 (including section 12DA or 12 DB) of the Australian Securities and
Investments Commission Act 2001 (Cth), the Australian Consumer Law (including sections
4,18 or 29) or on any corresponding provision of any State or Territory legislation,
or on a similar provision under any other law, for any act or omission concerning a
Group Company or a Business or for any statement or representation about any of those
things which is not expressly contained in this document; and

	 	(2)	 	agrees with the Seller not to make any such Claim against a member of the
Seller Group.

	15.8	 	Each Seller Warranty is a separate warranty in no way limited by any other Seller Warranty
and the Purchaser and each Group Company shall have a separate claim and right of action in
respect of every breach of a Seller Warranty.

	15.9	 	The Purchaser must take all reasonable action to mitigate any Loss suffered for which a Claim
under the Seller Warranties could be made against the Seller. Nothing in this document
restricts or limits any general obligation at law to mitigate any Loss.

	15.10	 	Subject to clause 37.3, the rights of the Purchaser to make a Claim for breach of a Seller
Warranty or under any provision of this document are personal to the Purchaser and may not be
assigned to any other person. Neither the Purchaser nor a person deriving title from the
Purchaser can make a Claim for breach of a Seller Warranty or under any provision of
this document if the Purchaser Guarantor has after Completion ceased to control the
Business, or has ceased to own or control any Group Company to which the Claim relates.

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	15.11	 	If the Purchaser is liable for Tax on any payment it receives from the Seller for breach of
clause 15.1 or under clause 15.3, the amount payable by the Seller is increased so that, after
the Tax is paid, the Purchaser receives the amount it would have received had there been no
Tax payable.

	15.12	 	The Purchaser represents and warrants to the Seller that each statement in Schedule 3 is
true and accurate and not misleading on the date of this Agreement and will remain true and
accurate until Completion.

	15.13	 	The Purchaser acknowledges that the Seller has entered into this Agreement relying on the
Purchaser Warranties.

	15.14	 	Each Purchaser Warranty is a separate warranty in no way limited by any other Purchaser
Warranty.

	15.15	 	The Purchaser indemnifies the Seller against all Loss arising from or connected with a
breach of any Purchaser Warranty.

	15.16	 	If the Seller is liable for Tax on any payment it receives from the Purchaser for breach of
clause 15.12 or under clause 15.15, the amount payable by the Purchaser is increased so that,
after the Tax is paid, the Seller receives the amount it would have received had there been no
Tax payable.

	15.17	 	The Purchaser Guarantor represents and warrants to the Seller that each statement in
Schedule 4 is true and accurate and not misleading on the date of this Agreement and will
remain true and accurate until Completion.

	15.18	 	Each Purchaser Guarantor Warranty is a separate warranty in no way limited by any other
Purchaser Guarantor Warranty.

	15.19	 	The Purchaser Guarantor indemnifies the Seller against all Loss arising from or connected
with a breach of any Purchaser Guarantor Warranty.

	15.20	 	If the Seller is liable for Tax on any payment it receives from the Purchaser Guarantor for
breach of clause 15.17 or under clause 15.19, the amount payable by the Purchaser Guarantor is
increased so that, after the Tax is paid, the Seller receives the amount it would have
received had there been no Tax payable.

	15.21	 	The Purchaser Guarantor acknowledges that the Seller has entered into this Agreement relying
on the Purchaser Guarantor Warranties.

	16	 	Limitation of liability

	16.1	 	In each Seller Warranty, where any statement is qualified as being made so far as the Seller
is aware or to the best of the knowledge, information and belief of the Seller or any similar
expression, the knowledge, information and belief of the Seller is the knowledge, information
and belief of the following individuals:

	 	(1)	 	Haydn Gardner;

	 	(2)	 	Craig McGuckin;

	 	(3)	 	Adrian Bowers;

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	 	(4)	 	Dave Bennett in respect of Seller Warranties 7 (except 7.1 and 7.2), 9, 10,
11, 12, 14, 16 and 19 only;

	 	(5)	 	John Reeves in respect of Seller Warranties 7 (except 7.1 and 7.2), 9, 10,
11, 12, 14, 16 and 19 only; and

	 	(6)	 	Carl Jensen in respect of Seller Warranties 7 (except 7.1 and 7.2), 9, 10,
11, 12, 14, 16 and 19 as they relate solely to the affairs of Rheochem Pacific
Limited.

	16.2	 	The Seller agrees with the Purchaser (for itself and as trustee for each Group Company and
each Group Company’s directors, employees, agents and advisers and, in the case of Rheochem
Indonesia, commissioners):

	 	(1)	 	to waive any right or claim which it may have in respect of any
misrepresentation or error in, or omission from, any information or opinion supplied
or given by any Group Company or any of its directors, officers, employees or agents
(and, in the case of Rheochem Indonesia, commissioners) in the course of negotiating
this Agreement or in preparing the Disclosure Letter; and

	 	(2)	 	that any such right or claim shall not constitute a defence to any claim by
the Purchaser under or in relation to this Agreement.

	16.3	 	The Seller is not liable for any breach of any Seller Warranty (other than a Tax Warranty) to
the extent that the facts, matters and circumstances giving rise to the breach:

	 	(1)	 	are Disclosed in the Disclosure Letter or the Disclosure Materials;

	 	(2)	 	have been provided for or reserved in the Financial Statements;

	 	(3)	 	would have been disclosed to the Purchaser by the following searches it
conducted:

	 	(a)	 	on 03 February 2011, in respect of Rheochem Limited, the
register of companies maintained by ASIC;

	 	(b)	 	on 16 November 2010, in respect of Rheochem Limited, the
relevant title folio for each of the Properties at the Land Titles Office;

	 	(c)	 	on 14 December 2010, in respect of Rheochem India Pvt Ltd,
the Registrar of Companies, Maharashtra; and

	 	(d)	 	on 14 December 2010, in respect of Rheochem Pacific Limited,
the Companies Office (Ministry of Economic Development); or

	 	(4)	 	are known (whether by enquiry or otherwise) by the Purchaser, any member of
the Purchaser Group, or any of the following individuals:

	 	(a)	 	James Braun;

	 	(b)	 	Mark Airola;

	 	(c)	 	William Moss;

	 	(d)	 	Bruce Smith;

	 	(e)	 	Tony Freitas; and

	 	(f)	 	Gregg Piontek,
	 
	 	 	 	before the date of this Agreement

	 	 	The Seller Warranties (other than a Tax Warranty) are qualified by each such fact, matter
and circumstance.

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	16.4	 	The Seller is not liable for any breach of a Tax Warranty to the extent that the facts,
matters and circumstances giving rise to the breach:

	 	(1)	 	have been provided for or reserved in the Financial Statements; or

	 	(2)	 	are specifically Disclosed against the Tax Warranties in the Disclosure
Letter.

	 	 	The Tax Warranties are qualified by each such fact, matter and circumstance.

	16.5	 	For the avoidance of doubt, any disclosure made under clause 16.4 shall in no way limit the
Purchaser’s right to claim under the indemnity in clause 18 in relation to Tax payable as a
result of a breach of the Tax Warranties and the Seller will be liable under the indemnity in
clause 18.2(2) in respect of any matter that would have been a breach of a Tax Warranty but
for the provisions of clause 16.4.

	16.6	 	The Purchaser is not imputed with the knowledge or information that any Personnel of the
Seller are not permitted, by law or under confidentiality obligations binding on the
Personnel, to disclose (and has not actually disclosed) to the Purchaser.

	16.7	 	The Seller is not liable for any breach of any Seller Warranty after Completion unless:

	 	(1)	 	notice of such Claim (Seller Warranty Claim Notice) against the Seller is
given by the Purchaser to the Seller (setting out full details, including details of
the facts, matters and circumstance giving rise to the breach, the nature of the
breach and, to the extent it is reasonably able to do so, the Purchaser’s estimate of
the Loss suffered) as soon as possible but in any event within 20 Business Days after
the Purchaser becomes aware of any fact, matter or circumstance giving rise to the
Claim and, in any event, on or before the Claims Expiry Date;

	 	(2)	 	the Purchaser has given the Seller and its Personnel reasonable access to all
information and documents (including books and records) relating to the Claim that are
within the custody, possession or control of the Purchaser for a period of 30 Business
Days after the Seller has received the Seller Warranty Claim Notice for the purpose of
investigating the Claim; and

	 	(3)	 	within 9 months after the Seller has received the Seller Warranty Claim
Notice, the Claim has been:

	 	(a)	 	admitted or satisfied by the Seller;

	 	(b)	 	withdrawn by the Purchaser;

	 	(c)	 	settled between the Seller and the Purchaser; or

	 	(d)	 	submitted to arbitration in accordance with the rules set out
in clause 25.3.

	 	 	Otherwise, the Claim will be taken to be waived or withdrawn and will be barred and
unenforceable.

	16.8	 	Except with regard to Claims for breach of Seller Warranties 2 and 4 and Claims under clause
17, in respect of which the Seller’s liability shall be unlimited, the maximum aggregate
amount that the Purchaser may recover from the Seller for all Claims (including Claims for
breaches of the Seller Warranties) is $23.75 million.

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	16.9	 	The Seller is not liable for any breach of any Seller Warranty:

	 	(1)	 	unless the amount claimed in respect of the breach exceeds $50,000; and

	 	(2)	 	until the total of all amounts claimed in respect of breaches (not counting
any Claims for less than the amount set out in sub-clause (1) above) exceeds $500,000,

	 	 	in which event the Purchaser is entitled to the full amount and not just the excess.

	16.10	 	Clause 16.9 does not limit the liability of the Seller for any breach of any Seller Warranty
to the extent that the breach:

	 	(1)	 	arises by reason of fraud or wilful concealment or dishonesty or deliberate
non-disclosure on the part of the Seller; or

	 	(2)	 	relates to any breach of Seller Warranty 2 or 4 or a Claim under clause 17.

	16.11	 	Any amount (whether by way of damages or otherwise) received by the Purchaser Group as
compensation for any breach by the Seller of any Seller Warranty or under clause 18.2 will be
in reduction and refund of the Purchase Price.

	16.12	 	Any amount (whether by way of damages or otherwise) paid by the Purchaser to the Seller
under this Agreement, other than the payment of the Purchase Price, including as compensation
for any breach by the Purchaser of any Purchaser Warranty, will be an increase of the Purchase
Price.

	16.13	 	Despite anything else in this Agreement:

	 	(1)	 	no Seller Warranty is breached by reason of, and the Seller is not liable to
the Purchaser or any other person for breach of any Seller Warranty or any other
provision in this document or under the indemnity in clause 18.2 in relation to, any
fact, matter or circumstance:

	 	(a)	 	which arises from any change after the date of this Agreement
in any law or in its interpretation or in any administrative practice or
ruling of a Government Agency (even if the change has retrospective effect),
except in the case of a change to a law relating to Tax which is announced and
commences to have effect prior to the date of this Agreement);

	 	(b)	 	to the extent that it is provided for or reserved in the
Completion Accounts, or has been taken into account in determining the value
at which any asset or liability is included in the Completion Accounts; or

	 	(c)	 	to the extent that it is caused by, or contributed to by, any
act, omission, transaction or arrangement:

	 	(i)	 	of or by or on behalf of the Purchaser or any
member of the Purchaser Group unless the act, omission, transaction or
arrangement is required by law;

	 	(ii)	 	of or by or on behalf of the Seller, or any
other person, at the request of or with the consent of the Purchaser;
or

	 	(iii)	 	implementing, or permitted by, the terms of
this Agreement or of any other agreement contemplated by it;

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	 	(2)	 	the Purchaser may only recover once for the same Loss, and the Seller is not
liable to the Purchaser or any other person for Loss to the extent:

	 	(a)	 	that the same Loss has been recovered in another Claim or the
subject of the Claim is made good or is compensated for without cost to the
Purchaser;

	 	(b)	 	of an amount equal to any reduction in present or future Tax,
Tax rebate or Tax credit received or receivable by the Purchaser or by any
member of the Purchaser Group in relation to the amount or the matter the
subject of the Claim; or

	 	(c)	 	that the Purchaser or any member of the Purchaser Group has a
right to recover an amount from a person other than the Seller or a member of
the Seller Group in respect of the Loss (for example, issuing a demand, making
an insurance claim, suing for tort or claiming under an indemnity) and has
recovered such amount (less any costs of recovery);

	 	(3)	 	the Seller is not liable to make any payment (whether by way of damages or
otherwise) to the Purchaser in relation to or for a breach of a Seller Warranty for
any Loss which does not flow directly or naturally from the breach of the Seller
Warranty, however arising; and

	 	(4)	 	no Environmental Warranty is breached if the act, event, matter or
circumstance giving rise to the alleged breach occurred at a time when the relevant
Group Company was not in occupation of the premises the subject of the alleged breach.

	17	 	Indemnity

	17.1	 	The Seller indemnifies the Purchaser and each Group Company against all Loss arising from or
connected with:

	 	(1)	 	VRMT Well Services, Rheochem Limited’s shareholding in VRMT Well Services,
Rheochem Limited being a party to the VRMT Shareholders’ Agreement and the conduct of
operations by the Group in Nigeria prior to Completion;

	 	(2)	 	any remediation required under the Contaminated Sites Act 2003 (WA) in
relation to the Dampier Premises to the extent that the remediation is in respect of
an act, event, matter or circumstance which occurred:

	 	(a)	 	before Completion; and

	 	(b)	 	during the period Rheochem Limited was in occupation of the
Dampier Premises;

	 	(3)	 	the failure of the Seller to deliver any documents required at Completion
under clause 8.2;

	 	(4)	 	a finding by any court, commission, tribunal, directorate, ombudsman,
authority or government department that any Contractor was not a true contractor, to
the extent that the Loss is in respect of a period prior to Completion, or any
settlement made by any member of the Group with any Contractor, arising out of a Claim
by the Contractor that the Contractor was not a true contractor to the extent that the
settlement is in respect of the period of engagement prior to Completion;

	 	(5)	 	the failure by any member of the Group to adequately pay, accrue or make
provision in the Group Financial Statements for annual leave, personal/carer’s leave,
sick leave, long service leave, leave loading, jury leave, public holiday pay,
taxation or superannuation for any Employee or any Contractor to the extent that
the Loss is in respect of the period of employment or engagement prior to
Completion;

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	 	(6)	 	any Claim made by Haydn Gardner or Craig McGuckin for the difference between
benefits or entitlements Haydn Gardner or Craig McGuckin would have been entitled to
receive as an employee under Australian law, and the benefits or entitlements Haydn
Gardner or Craig McGuckin would have been entitled to receive as an employee of a
foreign corporation on secondment to Australia, to the extent that the Loss is in
respect of the period of employment prior to Completion;

	 	(7)	 	if the items in clause 8.2(17) or 8.2(18) are not delivered by the Seller at
Completion, the termination of the Dampier Lease by either Toll or the DPA as a result
of their consent not being granted (as contemplated in clauses 8.2(17) and 8.2(18)),
at or prior to Completion, to the transfer of shares in Rheochem Limited from the
Seller to the Purchaser under this Agreement. The Loss against which the Seller
indemnifies the Purchaser in this clause 17.1(7) includes, but is not limited to:

	 	(a)	 	the cost of finding and securing suitable alternative
premises;

	 	(b)	 	the cost of relocation (including the cost of moving plant
and equipment);

	 	(c)	 	the cost of removing items from the Dampier Premises and
making good the Dampier Premises in accordance with the terms of the Dampier
Lease;

	 	(d)	 	the difference between the rate of rent under the Dampier
Lease as at the date of this Agreement and the rate of rent under the lease
for the new premises (if higher) for the period up to 29 June 2013 (being the
expiry date of the Dampier Lease as at the date of this Agreement);

	 	(e)	 	the cost of fitting out the new premises to an equivalent
specification to the Dampier Lease; and

	 	(f)	 	the cost to the business of Rheochem Limited as a result of
the relocation of the premises, including additional transportation costs of
personnel, product and equipment for the period up to 29 June 2013;

	 	(8)	 	filing irregularities and/or procedural irregularities (including incorrect
share valuations) in relation to the issue or conversion of Rheochem India Pvt
preference shares which occur prior to Completion (Irregularities), including any
fines, penalties or other sanctions (including compounding penalties) imposed by the
Reserve Bank of India whether prior to or post Completion; and

	 	(9)	 	the costs of the Purchaser being required, as a result of the Irregularities,
to subscribe for further ordinary shares of Rheochem India Pvt Ltd in order to
maintain a 70:30 ratio (Purchaser : Prabhu).

	18	 	Tax

	18.1	 	In this clause 18, Tax Claim means any letter, request, advice, notice, demand, notice of
assessment, amended assessment or determination, deemed assessment, other communication,
instrument or document lodged under self-assessment or issued, served or made by or on behalf
of a Revenue Authority, whether before or after the date of this Agreement, as a result of
which any member of the Group is or becomes liable to make a payment of an ascertained amount
for Tax (including Tax primarily chargeable against some other company or person that is
assessed to the member of the Group by reason of the other company or person having been part
of the same group of companies) or is not
entitled to any ascertained amount of credit, rebate, refund, relief, allowance, deduction,
or tax loss.

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	18.2	 	The Seller indemnifies the Purchaser against any amount of Tax payable to the extent that the
Tax arises from:

	 	(1)	 	a Tax Claim, as a result of which any member of the Group is liable to make a
payment of an ascertained amount in respect of Taxes on or in respect of or calculated
by reference to:

	 	(a)	 	income, profit or gain received, accrued or derived prior to
the Completion Date whether by a member of the Group or another entity; or

	 	(b)	 	any event, act, occurrence or omission, on or before the
Completion Date; or

	 	(2)	 	a breach of any Tax Warranty.

	18.3	 	Payments under clause 18.2 must be made to the Purchaser (or, at the Purchaser’s request, to
a member of the Group) by whichever is the later of:

	 	(1)	 	5 Business Days before the latest date on which that payment of Tax may
lawfully be made without incurring any penalty, additional tax, interest or general
interest charge for late payment (allowing for any waivers or deferrals granted by the
Revenue Authority); and

	 	(2)	 	15 Business Days after the Seller receives notice in writing from the
Purchaser providing full and accurate particulars of the Tax Claim (with copies
certified by the Purchaser of all supporting documentation) sufficient for the Seller
to verify the accuracy of the Tax Claim.

	19	 	Goods and services tax

	19.1	 	In this clause 19:

	 	(1)	 	words used which have a particular meaning in the GST Law (as defined in the
GST Act, and also including any applicable legislative determinations and Australian
Taxation Office public rulings) or the Goods and Services Tax Act 1985 (NZ) have the
same meaning, unless the context otherwise requires;

	 	(2)	 	any reference to GST payable by a party or input tax credits to which a party
is entitled includes any corresponding GST payable by, or entitlements to input tax
credits of, the representative member of any GST group of which that party is a
member; and

	 	(3)	 	if the GST Law or the Goods and Services Tax Act 1985 (NZ) treats part of a
supply as a separate supply for the purpose of determining whether GST is payable on
that part of the supply or for the purpose of determining the tax period to which that
part of the supply is attributable, such part of the supply is to be treated as a
separate supply.

	19.2	 	Unless GST is expressly included, the consideration expressed to be payable under any other
clause of this Agreement for any supply made under or in connection with this Agreement does
not include GST.

	19.3	 	Subject to clause 19.4, to the extent that any supply made under or in connection with this
Agreement is a taxable supply, the GST exclusive consideration otherwise payable for that
supply is increased by the amount of GST imposed in respect of the supply, and that
additional amount is payable at the same time and in the same manner as the GST exclusive
consideration.

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	19.4	 	A party will not be required to make a payment for a taxable supply made under or in
connection with this Agreement until it receives a tax invoice (or adjustment note) for the
supply to which the payment relates.

	19.5	 	Each party agrees to do all things, including providing tax invoices and other documentation,
that may be necessary or desirable to enable or assist the other party to claim any input tax
credit, adjustment or refund in relation to any amount of GST paid or payable in respect of
any supply made under or in connection with this Agreement.

	19.6	 	If a payment to a party under this Agreement is a payment by way of reimbursement or
indemnity and is calculated by reference to the GST inclusive amount of a loss, cost or
expense incurred by that party, then the payment is to be reduced by the amount of any input
tax credit to which that party is entitled in respect of that loss, cost or expense before any
adjustment is made for GST pursuant to clause 19.3.

	19.7	 	If a party has a Claim under or in connection with this Agreement whose amount depends on
actual or estimated revenue or which is for a loss of revenue, revenue must be calculated
without including any amount received or receivable as reimbursement for GST (whether that
amount is separate or included as part of a larger amount).

	20	 	Restraint

	20.1	 	In this clause 20:

	 	(1)	 	Restraint Area means:

	 	(a)	 	the Asia/Pacific region;

	 	(b)	 	Australia, New Zealand, India and Indonesia.

	 	(2)	 	Restraint Period means:

	 	(a)	 	the period of six years commencing on the Completion Date;

	 	(b)	 	the period of three years commencing on the Completion Date;

	 	(c)	 	the period of one year commencing on the Completion Date.

	 	(3)	 	Restrained Business means any business that:

	 	(a)	 	is the same as or similar to the Business or that competes
with or is likely to compete with the Business or a substantial part of the
Business; or

	 	(b)	 	involves the manufacture, development or sale of drilling and
related fluids associated with exploration and production activities in the
oil, gas, geothermal or mining industries.

	20.2	 	The Seller must not either directly or indirectly during the Restraint Period:

	 	(1)	 	and in the Restraint Area, operate, participate in, or promote a Restrained
Business in any capacity or manner;

	 	(2)	 	and in the Restraint Area, have any kind of interest in or be concerned with
a Restrained Business;

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	 	(3)	 	and in the Restraint Area, seek or gain the custom of a person who was a
customer of the Business at any time during the period of 12 months before Completion,
in order to carry on a Restrained Business;

	 	(4)	 	approach an employee or contractor of the Group with a view to encouraging
them to leave their employment or engagement;

	 	(5)	 	represent itself as being in any way connected with the Business;

	 	(6)	 	use a logo, mark or name substantially the same or as deceptively similar to
any Intellectual Property Rights owned, used or licensed by the Group; or

	 	(7)	 	disclose the name of any customer of the Business or use that name to the
Seller’s advantage or to the Purchaser’s disadvantage (including through its
Personnel);

	 	 	and must ensure that none of its Related Bodies Corporate does any of the things listed in
clauses 20.2(1) to 20.2(7).

	20.3	 	The restraint in clause 20.2 applies to the Seller acting:

	 	(1)	 	either alone or in partnership or association with another person;

	 	(2)	 	as principal, agent or representative;

	 	(3)	 	as member, shareholder, debenture holder, note holder or holder of any other
security;

	 	(4)	 	as trustee of or as a consultant or adviser to any person; or

	 	(5)	 	in any other capacity.

	20.4	 	The restraints set out above will apply as if they consisted of several separate, independent
and cumulative covenants and restraints consisting of:

	 	(1)	 	each of clauses 20.2(4), 20.2(5), 20.2(6), 20.2(7) and 20.3 combined with
each separate Restraint Period; and

	 	(2)	 	each of clauses 20.2(1), 20.2(2) and 20.2(3) combined with each separate
Restraint Period and of each such separate combination combined with each separate
Restraint Area.

	20.5	 	If any separate covenant and restraint referred to in clause 20.4 is unenforceable, illegal
or void, that covenant and restraint is severed and the other covenants and restraints remain
in force.

	20.6	 	Despite clause 20.2, after Completion the Seller may hold less than 5% of the issued shares
or units of a body corporate or unit trust listed on a stock market operated by the ASX or the
London Stock Exchange, even if that body corporate or unit trust is involved directly or
indirectly in the Restrained Business. This is the only exception to the restraint of trade
the Purchaser accepts under this clause 20.

	20.7	 	The Seller agrees that, given the interests of the parties, each restraint in this clause 20
is necessary to protect the goodwill of the Group and is reasonable.

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	21	 	Purchaser guarantee and indemnity
	 
	21.1	 	The Purchaser Guarantor guarantees to the Seller the due and punctual:

	 	(1)	 	payment by the Purchaser of the Guaranteed Money; and
	 
	 	(2)	 	performance by the Purchaser of the Guaranteed Obligations.

	21.2	 	The Seller agrees not to claim against the Purchaser Guarantor under this Agreement in
relation to any default of the Purchaser until it has given written notice of that default to
the Purchaser. Subject to providing this written notice, the Purchaser Guarantor’s
obligations in this Agreement may be enforced against the Purchaser Guarantor without the
Seller first being required to exhaust any remedy it may have against the Purchaser or enforce
any security it may hold relating to the Guaranteed Obligations.
	 
	21.3	 	The Purchaser Guarantor is entitled to enjoy all the rights and benefits of the Purchaser
arising out of or in connection with the Agreement to the same extent as the Purchaser.
	 
	21.4	 	If the Purchaser is not bound by some or all of the Purchaser’s obligations under this
Agreement, or if for any other reason the guarantee in clause 21.1 is not effective, the
Purchaser Guarantor agrees, by way of indemnity and principal obligation, to pay to the Seller
the amount which would have been payable by the Purchaser Guarantor to the Seller under the
guarantee in clause 21.1 had the guarantee been effective and the Purchaser been bound.
	 
	21.5	 	The Purchaser Guarantor remains liable under this clause 21 even if:

	 	(1)	 	the Purchaser or the Purchaser Guarantor:

	 	(a)	 	enters into any composition or scheme or deed of arrangement
with creditors; or
	 
	 	(b)	 	enters into receivership, administration or liquidation or is
wound up or dissolved;

	 	(2)	 	the Seller cannot for any reason enforce this Agreement against the
Purchaser;
	 
	 	(3)	 	the Seller, for any reason, has not exercised or does not exercise all or any
1 or more of the Seller’s rights or powers:

	 	(a)	 	against the Purchaser; or
	 
	 	(b)	 	respecting any other security or surety against which the
Seller may claim to satisfy any liability of the Purchaser;

	 	(4)	 	the Seller grants any time or other indulgence or concession to the
Purchaser; or
	 
	 	(5)	 	there is any variation (including a variation which increases, or extends the
duration of, the Guaranteed Money or the Guaranteed Obligations), replacement,
extinguishment, unenforceability, failure, loss, abandonment or transfer of any
document or agreement relating to the Guaranteed Obligations (including this Agreement
and any other guarantee or Encumbrance held by the Seller from any person at any
time).

	21.6	 	Until the Purchaser has performed its obligations under this Agreement:

	 	(1)	 	this clause 21 continues to bind the Purchaser Guarantor; and

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	 	(2)	 	the Purchaser Guarantor is not entitled to prove in the liquidation of the
Purchaser in competition with the Seller.

	21.7	 	The Purchaser Guarantor acknowledges that it has not been induced to enter into this
Agreement by virtue of any representation by or on behalf of the Seller, but acts entirely on
its own responsibility.
	 
	22	 	Termination by Purchaser or Seller
	 
	22.1	 	If, at any time prior to Completion, a Termination Event (as described in clause 22.2)
occurs, the Purchaser may, by written notice to the Seller, terminate this Agreement with
immediate effect without any liability on the Purchaser’s part.
	 
	22.2	 	For the purposes of this clause 22.1, a Termination Event means:

	 	(1)	 	a breach of any of the Exclusivity Undertakings;
	 
	 	(2)	 	a Material Adverse Change;
	 
	 	(3)	 	the Board of the Seller withdrawing or changing its recommendation to
shareholders to vote in favour of the Resolution;
	 
	 	(4)	 	a termination for breach of a Fundamental Warranty under clause 6.8; or
	 
	 	(5)	 	a termination as specified in clause 8.8.

	22.3	 	If the Purchaser does not comply with its obligations under clause 8.5(1), 8.5(2) or 8.5(3),
the Seller may, by written notice to the Purchaser, terminate this Agreement with immediate
effect without any liability on the Seller’s part.
	 
	22.4	 	If the Purchaser terminates this Agreement under clause 22.1 or the Seller terminates this
Agreement under clause 22.3, then, in addition to any other rights, powers or remedies
provided by law or in equity:

	 	(1)	 	subject to clause 22.4(2), each party is released from its obligations and
liabilities under or in connection with this Agreement and this Agreement will have no
further force or effect, other than under this clause 22.4, clause 1, clause 23,
clause 25, clause 27, clause 35, clause 36, clause 37, clause 38 and clause 39; and
	 
	 	(2)	 	each party retains the rights, remedies and powers it has in connection with
any past breach or any claim that has arisen before termination.

	22.5	 	After Completion, the Purchaser may not terminate or rescind this Agreement for a breach of
any Seller Warranty.
	 
	22.6	 	The Seller undertakes to give notice to the Purchaser of any Termination Event of which it
becomes aware as soon as possible and before Completion.
	 
	23	 	Break Fee
	 
	23.1	 	The parties acknowledge that each party will suffer significant costs and losses if this
Agreement is terminated and Completion does not occur. These costs include:

	 	(1)	 	advisory costs, legal costs and costs of management and directors’ time;
	 
	 	(2)	 	costs of not pursuing alternative transactions;

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	 	(3)	 	reputational costs associated with a failed action and the implications of
those costs in the event either party seeks to execute alternative transactions in the
future; and
	 
	 	(4)	 	costs of the uncertainty and possible long-term harm to the trading price of
the party’s securities.

	23.2	 	Each party acknowledges that the costs outlined in clause 23.1 are difficult to calculate and
that the specified break fees in clauses 23.3 and 23.4 represent a fair and reasonable
estimate of those costs. Each party acknowledges that it requested the inclusion of this
clause 23 and that the parties would not otherwise have entered into this Agreement. Each
party believes that the Transaction will provide significant benefits to that party and its
shareholders and that it is appropriate to agree to inclusion of this clause 23 in order to
secure the benefits.
	 
	23.3	 	If, prior to Completion, the Purchaser terminates this Agreement under clause 22.1 by reason
of the occurrence of a Termination Event set out in:

	 	(1)	 	clause 22.2(1);
	 
	 	(2)	 	clause 22.2(3); or
	 
	 	(3)	 	clause 22.2(5),

	 	 	the Purchaser may demand payment by the Seller of $2,500,000, which the Seller will pay
promptly on demand.
	 
	23.4	 	If the Seller terminates this Agreement under clause 22.3, the Seller may demand payment by
the Purchaser of $2,500,000, which the Purchaser will pay promptly on demand.
	 
	23.5	 	The payments under clauses 23.3 and 23.4 (if and when made) represent the sole and absolute
liability of the payee under or in connection with this Agreement and no further damages,
fees, expenses or reimbursements of any kind will be payable. For the avoidance of doubt, if
the Seller does not exercise its rights under clause 23.4, it is entitled to claim all rights,
powers or remedies available to it at law or in equity or otherwise and if the Purchaser does
not exercise its rights under clause 23.3, it is entitled to claim all rights, powers or
remedies available to it at law or in equity or otherwise.
	 
	24	 	Power of attorney
	 
	24.1	 	The Seller irrevocably appoints the Purchaser to be its attorney to execute all rights of the
Seller in respect of the Shares from the Completion Date until the Shares are registered in
the name of the Purchaser.
	 
	24.2	 	The Purchaser may do in the name of the Seller and on its behalf everything necessary or
expedient, in the Purchaser’s sole discretion, to:

	 	(1)	 	transfer the Shares and register the Purchaser as the holder of the Shares;
	 
	 	(2)	 	exercise any rights attaching to the Shares, including rights to appoint a
proxy or representative, rights to attend and speak at meetings of members of the
Group and agree to them being called on short notice, and voting rights;
	 
	 	(3)	 	exercise any powers the Seller has in its capacity as the registered holder
of the Shares;
	 
	 	(4)	 	receive any dividend or other entitlement paid or credited to a Seller in
respect of the Shares; and

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	 	(5)	 	do any other act or thing in respect of the Shares or the Group.

	24.3	 	The Purchaser may:

	 	(1)	 	appoint or remove any substitute, delegate or sub-attorney at any time; and
	 
	 	(2)	 	exercise its powers under this clause 24:

	 	(a)	 	in its own name or in the name of the Seller; and
	 
	 	(b)	 	even if it benefits from the exercise of the power.

	24.4	 	The Seller declares that all acts and things done by the Purchaser and its substitutes,
delegates and sub-attorneys in exercising powers under this clause 24 will be as good and
valid as if they had been done by the Seller and agrees to ratify and confirm whatever the
Purchaser and its substitutes, delegates and sub-attorneys do in exercising their powers under
this clause 24.
	 
	24.5	 	If the Purchaser requests, the Seller must execute a power of attorney to give effect to the
appointment under this clause 24, appointing the Purchaser as the Seller’s attorney and
conferring on the Purchaser the rights and powers set out in this clause 24.
	 
	24.6	 	The appointment under this clause 24 is exclusive and the Purchaser has authority to
represent the Seller in respect of the Shares to the exclusion of the Seller. The Seller is
not permitted to interfere with the Purchaser’s exercise of its rights as attorney (whether by
casting a vote, attending meetings itself or otherwise).
	 
	24.7	 	The Seller declares that the powers granted to the Purchaser under this clause 24 are given
for valuable consideration and are irrevocable from the date of this Agreement until the
Shares are registered in the name of the Purchaser.
	 
	25	 	Resolving Disputes
	 
	25.1	 	No party may proceed to arbitration in relation to any Dispute unless the steps in clauses
25.3 and 25.4 have been followed.
	 
	 	 	However, this limitation does not apply:

	 	(1)	 	to a party in relation to a Dispute where the party wants to apply for urgent
interlocutory relief (and clauses 25.3 and 25.4 do not apply in those circumstances);
or
	 
	 	(2)	 	to a party who attempts in good faith to comply with clauses 25.3 and 25.4
but cannot because the other party to the Dispute does not comply with those clauses.

	25.2	 	The parties nominate the following as their negotiators for the purposes of this clause (or
any other person last notified by the relevant party for this purpose):

	 	 	 	 	 
	 	 	1st level negotiator	 	2nd level negotiator
	Seller

	 	Haydn Gardner
	 	Lincoln McCrabb
	Purchaser

	 	James Braun
	 	Paul Howes

	 	 	The negotiators have the authority to bind the party they represent.

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	25.3	 	If a Dispute arises, the parties shall first seek to resolve it in accordance with this clause:

	 	(1)	 	A party may notify the other party to the Dispute. The notice must specify
the Dispute and indicate that the notifying party wants the Dispute to be referred to
the first level negotiators.
	 
	 	(2)	 	The first level negotiators must meet (in person, by telephone or otherwise)
within 6 Business Days after a notice under clause 25.3(1) is received (or as they
otherwise agree), and negotiate in good faith to try to resolve the dispute.
	 
	 	(3)	 	If the first level negotiators do not resolve the Dispute by the
6th Business Day after their first meeting, the Dispute must be referred to
the second level negotiators by the original notifying party by service of a further
notice within 12 Business Days of that first meeting.
	 
	 	(4)	 	The second level negotiators must meet within 6 Business Days after a notice
under clause 25.3(3) is received and negotiate in good faith to try to resolve the
Dispute.
	 
	 	(5)	 	Each party to the Dispute is bound by any settlement agreed to in writing by
their negotiator and must implement the settlement promptly.

	25.4	 	If the Dispute is not resolved under clause 25.3 within 10 Business Days of the first meeting
of the second level negotiators (or such other period as the parties may agree in writing), it
shall be finally settled by arbitration in accordance with the UNCITRAL Arbitration rules then
in force.
	 
	25.5	 	In any arbitration: 

	 	(1)	 	the appointing institution shall be the Institute of Arbitrators and
Mediators Australia;
	 
	 	(2)	 	the administering authority shall be the Institute of Arbitrators and
Mediators Australia;
	 
	 	(3)	 	in the event that the Dispute between the parties involves claims from either
or both parties totalling $2 million or less, the number of arbitrators shall be 1;
	 
	 	(4)	 	in the event that the Dispute between the parties involves claims from either
or both parties totalling more than $2 million, the number of arbitrators shall be 3;
	 
	 	(5)	 	for the purpose of clauses 25.5(3) and 25.5(4), the value of any claim shall
be the value attributed to it by the party making that claim acting reasonably and in
good faith;
	 
	 	(6)	 	where a sole arbitrator is to be appointed, that arbitrator shall be a legal
professional of at least 10 years’ standing and qualified in Western Australia;
	 
	 	(7)	 	where three arbitrators are to be appointed, the presiding arbitrator shall
be a legal professional of at least 10 years’ standing and qualified in Western
Australia;
	 
	 	(8)	 	the place of arbitration shall be Perth, Australia; and
	 
	 	(9)	 	the language used in the arbitral proceedings shall be English.

	25.6	 	The parties, any arbitrator(s), and their agents, shall keep confidential and not disclose to
any non-party the existence the Dispute, the arbitration, all non-public materials and
information provided by another party in the course of and in preparation for meetings of the
first and second level negotiators and/or any arbitration, and orders or awards made in the
arbitration (together, the “Confidential Information”).

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	25.7	 	If a party wishes to involve in the arbitration a non-party (including a fact or expert
witness, stenographer, translator or any other person), the party shall make reasonable
efforts to secure the non-party’s advance agreement to preserve the confidentiality of the
Confidential Information.
	 
	25.8	 	Notwithstanding the foregoing, a party may disclose Confidential Information to the extent
necessary to:

	 	(1)	 	prosecute or defend the arbitration or proceedings related to it (including
enforcement or annulment proceedings), or to pursue a legal right;
	 
	 	(2)	 	respond to legitimate subpoena, governmental request for information or other
compulsory process;
	 
	 	(3)	 	make disclosure required by law or rules of a securities exchange; or
	 
	 	(4)	 	seek legal, accounting or other professional services, or satisfy information
requests of potential acquirers, investors or lenders, provided that in each case that
the recipient agrees in advance to preserve the confidentiality of the Confidential
Information.

	25.9	 	This confidentiality provision survives termination of the contract and of any arbitration
brought pursuant to the contract. This confidentiality provision may be enforced by an
arbitral tribunal or any court of competent jurisdiction and an application to a court to
enforce this provision shall not waive or in any way derogate from the agreement to arbitrate.
	 
	26	 	Announcements
	 
	26.1	 	Subject to clause 26.2 and clause 26.3, no announcement, circular or communication (each an
Announcement) concerning the existence or content of this Agreement shall be made by the
Seller (or any member of the Seller’s Group) or the Purchaser (or any member of the
Purchaser’s Group) without the prior written approval of the other party (such approval not to
be unreasonably withheld or delayed).
	 
	26.2	 	Notwithstanding clause 26.1, on execution of this Agreement and on or following Completion
the Purchaser may make an announcement in relation to the Transaction to the New York Stock
Exchange and the Seller may make an announcement in relation to the Transaction to AIM and
ASX. Each party shall allow the other party reasonable opportunity to review and comment on
the proposed announcement before its release.
	 
	26.3	 	Clause 26.1 does not apply to any Announcement if, and to the extent that, it is required to
be made by the rules of any stock exchange or any governmental, regulatory or supervisory body
or court of competent jurisdiction (Relevant Authority) to which the party making the
Announcement is subject, whether or not any of the same has the force of law, provided that
any Announcement shall, so far as is practicable, be made after consultation with the other
party and after taking into account its reasonable requirements regarding the content, timing
and manner of despatch of the Announcement in question.
	 
	27	 	Confidentiality
	 
	27.1	 	This clause shall be without prejudice to the clauses 25.6 and 25.9 which shall continue to
be effective notwithstanding Completion.

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	27.2	 	Each party shall treat as strictly confidential all information received or obtained as a
result of entering into or performing this Agreement which relates to:

	 	(1)	 	the existence and terms of this Agreement and the Transaction Documents (and
any drafts of those agreements); and
	 
	 	(2)	 	all negotiations in connection with the Transaction;

	 	 	and must ensure that its respective Personnel do likewise.
	 
	27.3	 	Notwithstanding clause 27.2, a party may disclose information:

	 	(1)	 	required by the law of any relevant jurisdiction;
	 
	 	(2)	 	on a confidential basis to its advisers (including bankers) to enable them to
advise in connection with this Agreement (including its administration or
enforcement);
	 
	 	(3)	 	if that information is in the public domain (other than because the party has
disclosed it);
	 
	 	(4)	 	if the party lawfully had the information before it was disclosed to them in
connection with this Agreement;
	 
	 	(5)	 	if required by existing contractual obligations;
	 
	 	(6)	 	to a permitted assignee in accordance clause 37;
	 
	 	(7)	 	with the consent of each other party;
	 
	 	(8)	 	required to vest the full benefit of this Agreement in either party;
	 
	 	(9)	 	in connection with legal or other proceedings relating to this Agreement;
	 
	 	(10)	 	if required by any Relevant Authority to which the party making the
disclosure is subject, whether or not such requirement has the force of law; or
	 
	 	(11)	 	if this Agreement expressly requires or permits a party to disclose
information.

	27.4	 	A party disclosing under clause 27.3(10) must, as far as practical, consult with each other
party beforehand as to the content and timing of the disclosure.
	 
	27.5	 	Without limiting clause 27.2, the Seller must keep confidential all information concerning
the Group and the Business which is in its knowledge, possession or control and must ensure
that its Personnel do likewise. However, the Seller may disclose information where permitted
to do so under clause 27.3 .
	 
	27.6	 	This clause continues to bind the parties after Completion and after the parties’ other
obligations under this Agreement terminate.
	 
	27.7	 	The parties agree that the Confidentiality Agreement shall terminate automatically upon
Completion.
	 
	28	 	Time of the essence
	 
	28.1	 	Time is of the essence in respect of obligations to pay money under this Agreement.

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	29	 	Further assurance
	 
	29.1	 	Each party must at its own cost from time to time do all things (including executing or
producing documents, getting documents executed or produced by others and obtaining consents)
necessary or desirable to give full effect to this Agreement (including the transactions
contemplated by this Agreement).
	 
	30	 	Severability
	 
	30.1	 	If anything in this Agreement is unenforceable, illegal or void or contravenes the law, then
it is severed and the rest of this Agreement remains in force.
	 
	30.2	 	The rights and obligations of each party are not affected by any law that, but for this
clause 30.2, would affect those rights and obligations.
	 
	31	 	Entire agreement
	 
	31.1	 	The Transaction Documents:

	 	(1)	 	contain the entire agreement, arrangement and understanding between the
parties on everything connected with the subject matter of this Agreement, including
the sale and purchase of the Shares; and
	 
	 	(2)	 	supersede any prior agreement, arrangement or understanding on anything
connected with that subject matter.

	 	 	Accordingly, any thing (such as correspondence, negotiations or representations before this
Agreement is executed or an arrangement or understanding) not reflected in the Transaction
Documents does not bind the parties and may not be relied on by them.
	 
	31.2	 	Each party has entered into this Agreement without relying on any representation (whether or
not negligently) by any other party or any person purporting to represent that party.
	 
	31.3	 	The parties agree that the Letter of Intent shall terminate automatically upon execution of
this Agreement.
	 
	32	 	Variation
	 
	32.1	 	An amendment or variation to this Agreement is not effective unless it is in writing and
signed by the parties.
	 
	32.2	 	A provision of this Agreement (including a condition precedent) may only be waived if the
waiver is in writing and signed by the person who has the benefit of the provision and who is
therefore to be bound by the waiver.
	 
	33	 	Rights, powers and remedies
	 
	33.1	 	The rights, powers and remedies of each party are additional to other rights, powers and
remedies independently given by law.
	 
	33.2	 	The failure of a party to exercise or enforce, or a delay by a party in exercising or
enforcing, a right, power or remedy does not operate as a waiver of the exercise or
enforcement by that party of that or any other right, power or remedy.

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	33.3	 	The exercise or enforcement by a party of a right, power or remedy does not preclude the
further exercise or enforcement by that party of that right, power or remedy or the exercise
or enforcement by that party of any other right, power or remedy.
	 
	33.4	 	A party may exercise or enforce a right, power or remedy (including giving or withholding its
approval or consent) entirely at its discretion (including by imposing conditions).
	 
	33.5	 	In exercising or enforcing, or deciding not to exercise or enforce, a right, power or remedy,
a party is not required to take into account any adverse effect on another party.
	 
	33.6	 	Each party agrees to comply with the conditions of any approval, consent or waiver given by
another party.
	 
	33.7	 	Waiver of a right, power or remedy is effective only in respect of the specific instance to
which it relates and for the specific purpose for which it is given.
	 
	34	 	Continuing obligations
	 
	34.1	 	The rights and obligations of the parties do not merge on the completion of any transaction
contemplated by this Agreement. They also survive the execution and delivery of any
conveyance, assignment, transfer or other document entered into for the purpose of
implementing any transaction contemplated by this Agreement.
	 
	34.2	 	Each indemnity in this Agreement survives the expiry or termination of this Agreement. A
party may enforce a right of indemnity at any time, including before it has suffered Loss.
	 
	35	 	Costs
	 
	35.1	 	Each party must pay its own costs in connection with the negotiation, preparation and
execution of this Agreement.
	 
	35.2	 	The Purchaser must pay all Stamp Duty (including all fines, penalties and interest) and other
government imposts payable on or in connection with this Agreement and any transaction
contemplated by this Agreement, and all instruments of transfer and other documents or
instruments executed under or in connection with this Agreement or any transaction
contemplated by this Agreement, when due.
	 
	36	 	Notices
	 
	36.1	 	Each communication in connection with this Agreement (including a notice, consent, request,
waiver or demand) (Notice) has no legal effect unless it is in writing.
	 
	36.2	 	In addition to any other method of service provided by law, the Notice may be:

	 	(1)	 	sent by prepaid ordinary post to the address for service of the addressee, if
the address is in Australia and the Notice is sent from within Australia;
	 
	 	(2)	 	sent by prepaid airmail to the address for service of the addressee, if the
address is outside Australia or if the Notice is sent from outside Australia;
	 
	 	(3)	 	sent by facsimile to the facsimile number of the addressee; or
	 
	 	(4)	 	delivered at the address for service of the addressee.

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	36.3	 	A certificate signed by a party giving a Notice or by an officer or employee of that party
stating the date on which that Notice was sent or delivered under clause 36.2 is prima facie
evidence of the date on which that Notice was sent or delivered.
	 
	36.4	 	If the Notice is sent or delivered in a manner provided by clause 36.2, it must be treated as
given to and received by the party to which it is addressed:

	 	(1)	 	if sent by post from within Australia to an address in Australia, on the
2nd Business Day (at the address to which it is posted) after posting;
	 
	 	(2)	 	if sent by post to an address outside Australia or sent by post from outside
Australia, on the 5th Business Day (at the address to which it is posted)
after posting;
	 
	 	(3)	 	if sent by facsimile before 5pm on a Business Day at the place of receipt, on
the day it is sent and otherwise on the next Business Day at the place of receipt; and
	 
	 	(4)	 	if otherwise delivered before 5pm on a Business Day at the place of delivery,
upon delivery, and otherwise on the next Business Day at the place of delivery.

	36.5	 	Despite clause 36.4, a facsimile is not treated as given or received:

	 	(1)	 	if at the end of the transmission the sender’s facsimile machine fails to
issue a report confirming the transmission of the number of pages in the Notice; or
	 
	 	(2)	 	if it is not received in full and in legible form and the addressee notifies
the sender of that fact within 3 hours after the transmission ends or by 12 noon on
the Business Day on which it would otherwise be treated as given and received,
whichever is later.

	36.6	 	If a Notice is served by a method which is provided by law but is not provided by
clause 36.2, and the service takes place after 5pm on a Business Day, or on a day which is not
a Business Day, it must be treated as taking place on the next Business Day.
	 
	36.7	 	A Notice sent or delivered in a manner provided by clause 36.2 must be treated as validly
given to and received by the party to which it is addressed even if:

	 	(1)	 	the addressee has been liquidated or deregistered or is absent from the place
at which the Notice is delivered or to which it is sent; or
	 
	 	(2)	 	the Notice is returned unclaimed.

	36.8	 	The Seller’s address for service and facsimile number are:

	 	 	 	 	 
	Name

	 	:
	 	Rheochem Plc
	Attention

	 	:
	 	Haydn Gardner
	Address

	 	:
	 	15 Appold Street, London EC2A 2HB
	Facsimile no

	 	:
	 	+44 20-7814-8141

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	36.9	 	The Purchaser’s and Purchaser Guarantor’s addresses for service and facsimile numbers are:

	 	 	 	 	 
	Name

	 	:
	 	Newpark Resources, Inc.
	Attention

	 	:
	 	General Counsel
	Address

	 	:
	 	2700 Research Forest Drive, Suite 100, The Woodlands, Texas 77381
	Facsimile no

	 	:
	 	+1 281-362-6801

	36.10	 	A party may change its address for service or facsimile number by giving Notice of that
change to each other party.
	 
	36.11	 	If the party to which a Notice is intended to be given consists of more than 1 person, then
the Notice must be treated as given to that party if given to any of those persons.
	 
	36.12	 	Any Notice by a party may be given and may be signed by its solicitor.
	 
	37	 	Assignment
	 
	37.1	 	Subject to clause 37.3, neither party may assign or deal with or purport to assign or deal
with its rights under this Agreement, or create or allow to exist any third party interest
over them, without the prior written consent of the other party (which consent may not be
unreasonably withheld or delayed). Any act or omission in contravention of this clause 37.1
is ineffective.
	 
	37.2	 	This Agreement shall be binding on and shall inure for the benefit of the successors and
assigns of the parties.
	 
	37.3	 	The benefit of this Agreement shall be freely assignable by the Purchaser to a member of the
Purchaser Group by giving written notice to the Seller.
	 
	38	 	Governing law and jurisdiction
	 
	38.1	 	The law of Western Australia governs this Agreement.
	 
	38.2	 	The parties submit to the non-exclusive jurisdiction of the courts of Western Australia and
of the Commonwealth of Australia.
	 
	39	 	Service of process
	 
	39.1	 	Without preventing any other mode of service, a document in an action or administrative or
arbitral proceeding connected with this Agreement (including the originating process and a
third party notice) may be served on a party by any method permitted by clause 36 for the
service of a notice of demand.
	 
	39.2	 	The Purchaser and Purchaser Guarantor each appoints James Stewart of Norton Rose Australia
(Level 39, BankWest Tower, 108 St Georges Terrace, Perth WA 6000) as its agent to receive on
its behalf service of process in Western Australia in any action or proceeding connected with
this Agreement (Relevant Action).
	 
	39.3	 	The Purchaser Guarantor consents to service of process upon it out of the courts of Western
Australia in a Relevant Action by posting copies of the process by international registered
post to the Purchaser Guarantor at its address for service specified in this Agreement.

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	39.4	 	The Seller appoints Roger Davies of Blake Dawson (Level 32, Exchange Plaza, 2 The Esplanade,
Perth WA 6000) as its agent to receive on its behalf service of process in Western Australia
in any Relevant Action.
	 
	39.5	 	The Seller consents to service of process upon it out of the courts of Western Australia in a
Relevant Action by posting copies of the process by international registered post to the
Seller at its address for service specified in this Agreement.
	 
	40	 	Execution by attorney
	 
	40.1	 	Where this Agreement is executed by an attorney, that attorney, by executing, declares that
it has no notice of revocation, termination or suspension of the power of attorney under which
it executes this Agreement.
	 
	41	 	Counterparts
	 
	41.1	 	This Agreement may be executed in any number of counterparts. Each counterpart is an
original but the counterparts together are one and the same agreement.
	 
	41.2	 	This Agreement is binding on the parties on the exchange of counterparts. A copy of a
counterpart sent by facsimile machine or as a pdf attachment to an email:

	 	(1)	 	must be treated as an original counterpart;
	 
	 	(2)	 	is sufficient evidence of the execution of the original; and
	 
	 	(3)	 	may be produced in evidence for all purposes in place of the original.

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Schedule 1 – The Shares

clause 1.1(127)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Allocation of	 
	Group	 	Class of Shares	 	 	Number of Shares	 	 	Purchase Price	 
	Rheochem Limited
	 	Ordinary	 	 	60,681,291	 	 	 	80	%
	Rheochem Pacific Limited
	 	Ordinary	 	 	100	 	 	 	10	%
	Rheochem India Pvt Ltd
	 	Ordinary	 	 	70,000	 	 	 	10	%
	 
	 	Redeemable preference	 	 	100,600	 	 	 	 	 
	 
	 	Convertible preference	 	 	112,550	 	 	 	 	 
	Rheochem Indonesia
	 	Ordinary	 	 	 356	 	 	 	0	%

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Schedule 2 – Seller Warranties

Clause 1.1(125)

	1	 	Definitions
	 
	1.1	 	In this Schedule 2:

	 	(1)	 	Assets means all assets that are owned by the Group, including:

	 	(a)	 	the Business Records;
	 
	 	(b)	 	the rights under the Contracts;
	 
	 	(c)	 	the Freehold Property;
	 
	 	(d)	 	the Goodwill;
	 
	 	(e)	 	the IP Rights;
	 
	 	(f)	 	the rights under the IP Licences;
	 
	 	(g)	 	the Permits;
	 
	 	(h)	 	the Plant and Equipment;
	 
	 	(i)	 	the rights under the Plant and Equipment Leases;
	 
	 	(j)	 	the rights under the Property Leases;
	 
	 	(k)	 	the Receivables; and
	 
	 	(l)	 	the Stock;

	 	(2)	 	Business Name means each business name used in connection with the Business,
as set out in the Disclosure Letter;
	 
	 	(3)	 	Business Records means all documents and information relating to the Assets,
the Leased Property, the Leased Plant and Equipment, the Licensed IP Rights, the
Employees or the Business, in whatever form and wherever situated. It includes books,
files, correspondence, manuals, registers (such as asset registers) and records,
documents of title, books of account, lists of suppliers to the Business and its
customers, data, processes and systems;
	 
	 	(4)	 	Confidential Information means all information relating to the Assets, the
Leased Property, the Leased Plant and Equipment, the Licensed IP Rights, the Employees
or the Business in whatever form (including verbal, or recorded on paper or by
electronic means). It includes all financial, operational and technical information,
trade secrets, ideas, concepts, know-how, processes and knowledge. However, it
excludes information which is or becomes known or generally available to the public –
except if this happens because of a breach of any obligation of confidence (in which
case it remains Confidential Information);
	 
	 	(5)	 	Contaminant has the meaning given in the Resource Management Act 1991 (New
Zealand);

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	 	(6)	 	Contamination means the presence in the Environment of a substance or
Contaminant at a concentration:

	 	(a)	 	above the concentration at which the substance is normally
present in the Environment in the same locality; and
	 
	 	(b)	 	which presents or has the potential to present a risk of harm
to human health or to any aspect of the Environment,

	 	 	 	except where the contamination is prescribed for the purposes of section 4(2) of
the Contaminated Site Act 2003 (WA);
	 
	 	(7)	 	Contracts means all contracts and commitments entered into by any member of
the Group which are wholly or partly unperformed at Completion, including those set
out in the Disclosure Letter;
	 
	 	(8)	 	Domain Names means each internet domain name used in connection with the
Business, as listed in the Disclosure Letter;
	 
	 	(9)	 	Employee means each employee of each member of the Group;
	 
	 	(10)	 	Environment means components of the earth, including:

	 	(a)	 	land, air and water;
	 
	 	(b)	 	any layer of the atmosphere;
	 
	 	(c)	 	any organic or inorganic matter and any living organism;
	 
	 	(d)	 	human-made or modified structures or areas; and
	 
	 	(e)	 	the amenity values of an area,

	 	 	 	and includes interacting natural ecosystems that include components referred to in
Seller Warranties 1.1(10)(a) to 1.1(10)(e);
	 
	 	(11)	 	Environmental Law means any law (whether statute, regulation or common law),
policy guideline, statutory plan, standard, or official communication by a
Governmental Agency concerning the Environment or the health and safety of human
beings, and includes any law relating to the use of land, water or any part of the
Environment;
	 
	 	(12)	 	Environmental Notice means a lawful direction, order, demand or other
requirement from a Governmental Agency to take any action or refrain from taking any
action or to comply with any Environmental Law, or to remedy any breach of an
Environmental Law;
	 
	 	(13)	 	Environmental Permit means a Permit under any Environmental Law;
	 
	 	(14)	 	FDI Laws mean the Foreign Exchange Management Act, 1999 and the rules and
regulations thereunder, read with the Consolidated FDI Policy issued by the Department
of Industrial Policy and Promotion vide Circular 2 of 2010 dated September 30, 2010
and earlier versions thereof and earlier press notes, press releases, clarifications
and circulars relating to foreign investment in India, issued by the Department of
Industrial Policy and Promotion;

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	 	(15)	 	Freehold Property means all land, and all buildings, fixtures and other
improvements on that land, owned by any member of the Group, as described in the
Disclosure Letter;
	 
	 	(16)	 	Goodwill means the goodwill of the Business;
	 
	 	(17)	 	Group Financial Statements means:

	 	(a)	 	the audited financial statements (including income statement,
balance sheet, statement of cash flows, directors’ report, auditors’ report
and notes attached to or intended to be read with the financial statements) of
Rheochem Limited for the financial year ended on 30 June 2010 and as at 30
June 2010 (as disclosed as document number 3.3.1 of the 2010 Data Room Index);
	 
	 	(b)	 	the audited financial statements (including income statement,
balance sheet, statement of cash flows, directors’ report, auditors’ report
and notes attached to or intended to be read with the financial statements) of
Rheochem Pacific Limited for the financial year ended on 30 June 2010 and as
at 30 June 2010 (as disclosed as document number 3.3.2 of the 2010 Data Room
Index);
	 
	 	(c)	 	the audited financial statements (including income statement,
balance sheet, statement of cash flows, directors’ report, auditors’ report
and notes attached to or intended to be read with the financial statements) of
Rheochem India Pvt Limited for the financial year ended on 30 June 2010 and as
at 30 June 2010 (as disclosed as document number 3.3.3 of the 2010 Data Room
Index);
	 
	 	(d)	 	the audited financial statements (including income statement,
balance sheet, statement of cash flows, directors’ report, auditors’ report
and notes attached to or intended to be read with the financial statements) of
Rheochem Indonesia for the financial year ended on 30 June 2010 and as at 30
June 2010 (as disclosed as document number Item DDD of the schedule of the
Answers to Purchaser’s Questions set out in Annexure C of the Agreement);

	 	(18)	 	Indian Shareholders’ Agreement means the shareholders’ agreement between
Prabhu Marketing Services PBT Limited and Rheochem India Pvt Limited dated 20
September 2005 and disclosed at document number 5.1.1 of the 2010 Data Room Index;
	 
	 	(19)	 	Indonesian Law means any and all statues, rules, regulations, ordinances,
decrees, requirements, codes, announcements, orders or other binding actions or
requirements of any Authority including, without limitation, the prevailing laws of
the Republic of Indonesia or any political subdivision or Authority thereof, whether
national, provincial or regional;
	 
	 	(20)	 	IP Rights means:

	 	(a)	 	the Confidential Information;
	 
	 	(b)	 	the Business Names; and
	 
	 	(c)	 	all other Intellectual Property Rights owned by any member of
the Group, as set out in the Disclosure Letter,

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	 	 	 	excluding the Licensed IP Rights;
	 
	 	(21)	 	IP Licence means the contracts and commitments under which any member of the
Group is licensed to exercise a Licensed IP Right, as listed in the Disclosure Letter;
	 
	 	(22)	 	Leased Plant and Equipment means the items (including plant, equipment,
machinery, tools, furniture, removable fixtures, fittings and motor vehicles) which
are subject to a Plant and Equipment Lease, as described in the Disclosure Letter;
	 
	 	(23)	 	Leased Property means all land, and all buildings, fixtures and other
improvements on that land, which are subject to a Property Lease, as described in the
Disclosure Letter;
	 
	 	(24)	 	Licensed IP Right means a right to use intellectual property that any member
of the Group uses but which the member of the Group does not own, as listed in the
Disclosure Letter;
	 
	 	(25)	 	Permits means the permits, licences, consents, planning permissions,
certifications or authorisations issued by a Governmental Agency:

	 	(a)	 	held by any member of the Group or for which any member of
the Group has applied, as set out in the Disclosure Letter; or
	 
	 	(b)	 	which are required to own, use or occupy the Assets, use the
Leased Plant and Equipment or the Licensed IP Rights, occupy the Leased
Property, employ the Employees or carry on the Business;

	 	(26)	 	Plant and Equipment means all plant, equipment, machinery, tools, furniture,
removable fixtures, fittings and motor vehicles which are owned by any member of the
Group, as listed in the Disclosure Letter;
	 
	 	(27)	 	Plant and Equipment Leases means the hiring arrangements, including leases,
hire purchase agreements and conditional purchase agreements, entered into by any
member of the Group and under which it has the right to use the Leased Plant and
Equipment, as described in the Disclosure Letter;
	 
	 	(28)	 	Property means the Freehold Property and the Leased Property;
	 
	 	(29)	 	Property Leases means each lease, sublease or licence of land, and the
buildings, fixtures and other improvements on that land, entered into by any member of
the Group, as described in the Disclosure Letter;
	 
	 	(30)	 	Receivables means the trade debts owing to any member of the Group;
	 
	 	(31)	 	Security Interest has the meaning given in the Personal Property Securities
Act 1999 (New Zealand);
	 
	 	(32)	 	Stock means all inventory used or intended for use in connection with the
Business which is owned by any member of the Group (including raw materials,
components, work-in-progress, finished goods, packaging, advertising and marketing
materials, catalogues, stationery and spare parts and including items in transit from
a supplier or to a customer or on consignment with a customer); and
	 
	 	(33)	 	Superannuation Guarantee Charge has the meaning given in the Superannuation
Guarantee (Administration) Act 1992 (Cth).

	2	 	The Seller
	 
	2.1	 	The Seller is duly incorporated and validly exists under the law of its place of
incorporation.

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	2.2	 	The Seller has full corporate power and authority to enter into this Agreement, and each
document in connection with this Agreement to be executed by it at or before Completion, and
perform its obligations under this Agreement and to carry out the transactions contemplated by
this Agreement.
	 
	2.3	 	The entry into and performance of this Agreement has been properly authorised by all
necessary corporate action of the Seller.
	 
	2.4	 	This Agreement and each document in connection with this Agreement to be executed by the
Seller at or before Completion constitute legal, valid and binding obligations of the Seller,
enforceable against the Seller in accordance with their terms, except that:

	 	(1)	 	their enforcement are subject to any necessary stamping or registration;
	 
	 	(2)	 	their enforceability may be limited by applicable bankruptcy, insolvency,
reorganisation, moratorium or similar laws affecting the enforcement of creditors’
rights generally; and
	 
	 	(3)	 	their enforceability are subject to the principles of equity (regardless of
whether its enforcement is considered in a proceeding in equity or at law), including
	 
	 	 	 	the possible unavailability of specific performance, injunctive relief or any other
equitable remedy.

	2.5	 	The Seller is entitled to sell and transfer or procure the sale and transfer of the full
legal and beneficial ownership in the Shares to the Purchaser on the terms set out in this
Agreement.
	 
	2.6	 	The entry into and performance of this Agreement and each transaction contemplated by this
Agreement does not and will not (with or without the giving of notice or the lapse of time or
both):

	 	(1)	 	contravene or conflict with or result in a breach of or default under:

	 	(a)	 	a law or treaty or a judgment, ruling, order or decree of a
Governmental Agency binding on the Seller;
	 
	 	(b)	 	any Authorisation;
	 
	 	(c)	 	the Seller’s articles of association or other constituent
documents; or
	 
	 	(d)	 	any other contract, instrument or commitment which is binding
on the Seller;

	 	(2)	 	permit the termination of any Authorisation, or any contract or commitment,
in accordance with their terms; or
	 
	 	(3)	 	require an Authorisation or any other consent, approval, authorisation,
qualification, acknowledgment or license of a third party (save for the shareholder
approval referred to in clause 2.1(1) of the Agreement).

	2.7	 	The Seller:

	 	(1)	 	is not wound up, no resolution for its winding up has been passed and no
meeting of members or (so far as the Seller is aware) creditors has been convened for
that purpose;

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	 	(2)	 	is not the subject of a winding up application which has been made to a court
and notified to the Seller, and (so far as the Seller is aware) no event has occurred
which would entitle any person to apply to a court to wind up the Seller;
	 
	 	(3)	 	has not proposed or taken any steps to implement a scheme of arrangement or
other compromise or arrangement with any of its creditors;
	 
	 	(4)	 	is not the recipient of a statutory demand under section 123(1)(a) of the UK
Insolvency Act 1986;
	 
	 	(5)	 	is not in receivership and none of its assets are in the possession of or
under the control of a mortgagee or chargee;
	 
	 	(6)	 	is not subject to administration under Schedule B1 to the UK Insolvency Act
1986 and Part 2 of the UK Insolvency Riles 1986 (SI 1986/1925); or
	 
	 	(7)	 	is not insolvent or unable to pay its debts (as defined in section 123 of the
UK Insolvency Act 1986).

	2.8	 	No property or assets of the Seller have been seized in the course of a dispute, or by way of
distress, execution or similar process. No distress, execution or other similar order or
process has been levied on any of the property or assets of the Seller.
	 
	2.9	 	No legal proceedings, arbitration, mediation or other dispute resolution process is taking
place, pending or threatened, the outcome of which is likely to have a material and adverse
affect on the ability of the Seller to perform its obligations under this Agreement.
	 
	2.10	 	The Seller is not entering into this Agreement as trustee of any trust or settlement.
	 
	3	 	Information
	 
	3.1	 	As at the date of this Agreement, the Seller is not aware of any materially adverse
information relating to the Business that has not been made available (including, without
limitation by including the information in the Data Room) to the Purchaser before the date of
this Agreement.
	 
	4	 	The Shares
	 
	4.1	 	The Seller is the registered holder and beneficial owner of the Shares. The register of
members of each Group Company are, in all material respects, accurate, complete and up to
date.
	 
	4.2	 	The Shares are free from any Encumbrance. No person has provided notice to the Seller or any
Group Company claiming an interest of that kind in respect of the Shares.
	 
	4.3	 	The Shares of Rheochem Limited comprise the whole of the issued capital of Rheochem Limited
and are fully paid.
	 
	4.4	 	The Shares of Rheochem Pacific Limited comprise the whole of the issued capital of Rheochem
Pacific Limited and are fully paid and without limiting clause 4.2 above are free from any
Security Interest
	 
	4.5	 	The Shares of Rheochem Indonesia comprise 94.93 per cent of the whole of the issued capital
of Rheochem Indonesia and are fully paid. The current shareholder structure of Rheochem
Indonesia has been notified to the Ministry of Law and Human Rights but has not been
registered with the Department of Trade of the Republic of Indonesia.

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	4.6	 	The Shares of Rheochem India Pvt Limited comprise 70 per cent of the whole of the issued
capital of Rheochem India Pvt Limited and are fully paid. The Shares of Rheochem India Pvt
Limited are held by the Seller in compliance with applicable laws, including but not limited
to the Foreign Exchange Management Act, 1999 and rules and regulations thereunder and the
Foreign Direct Investment Policy, issued by the Government of India from time to time, and all
applicable filings and reporting requirements in relation to such Shares have been duly
complied with.
	 
	4.7	 	Except for Rheochem Indonesia, there is no restriction on the sale or transfer of the Shares
to the Purchaser, save that the approval of the directors of each Group Company may be
required in order to register the transfer of the Shares to the Purchaser.
	 
	4.8	 	No member of the Group has granted to any person a right to subscribe for or otherwise
acquire any shares or other securities in its capital.
	 
	4.9	 	No person has any right, including a contractual right, an option, a right of first refusal,
a right of pre-emption or other right, to acquire or to restrain any person from acquiring any
of the Shares.
	 
	4.10	 	No person is entitled to recover from any member of the Group any finder’s fee, success fee
or similar fee in connection with the sale and purchase of any of the Shares.
	 
	5	 	The Group
	 
	5.1	 	Each member of the Group is duly incorporated and validly exists under the law of its place
of incorporation.
	 
	5.2	 	The copy of the constitution or memorandum of association or articles of association of each
member of the Group and provided to the Purchaser prior to executing this Agreement is a true
and accurate copy and includes all modifications approved by special resolution (if required)
passed on or before the date of this Agreement. No resolution to repeal the current
constitution of any member of the Group has been passed.
	 
	5.3	 	There has not been any breach of or default by any member of the Group of any term or
provision of its constitution and, so far as the Seller is aware, there has not occurred any
event which, with the passage of time or giving of notice, would constitute a breach or
default of that kind.
	 
	5.4	 	No member of the Group:

	 	(1)	 	is wound up, no resolution for its winding up has been passed and no meeting
of members or (so far as the Seller is aware) creditors has been convened for that
purpose;
	 
	 	(2)	 	is the subject of a winding up application which has been made to a court and
notified to the relevant member of the Group or the Seller, and (so far as the Seller
is aware) no event has occurred which would entitle any person to apply to a court to
wind up any member of the Group;
	 
	 	(3)	 	has proposed or taken any steps to implement a scheme of arrangement or other
compromise or arrangement with any of its creditors; or
	 
	 	(4)	 	is in receivership and none of its assets are in the possession of or under
the control of a mortgagee or charge.

	5.5	 	Rheochem Limited:

	 	(1)	 	has not received a demand under section 459E of the Corporations Act;

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	 	(2)	 	is not subject to administration under Part 5.3A of the Corporations Act; or
	 
	 	(3)	 	is not insolvent (as defined in section 95A of the Corporations Act).

	5.6	 	Rheochem Pacific Limited:

	 	(1)	 	has not received a statutory demand under the Companies Act 1993 (New
Zealand);
	 
	 	(2)	 	is solvent and able to satisfy the solvency test set out in section 4 of the
Companies Act 1993 (New Zealand).

	5.7	 	No receiver, receiver and manager, liquidator, interim liquidator, administrator, statutory
manager, trustee or similar officer has been or is appointed in respect of Rheochem Pacific
Limited or any of its assets and, so far as the Seller is aware, no event has occurred that
gives any person the right to seek such appointment or to declare Rheochem Pacific Limited at
risk pursuant to the Corporations (Investment & Management) Act 1989 (New Zealand) or to place
Rheochem Pacific Limited under statutory management pursuant to that Act.
	 
	5.8	 	No person in whose favour Rheochem Pacific Limited has granted any Security Interest has
become entitled to enforce any security under that Security Interest.
	 
	5.9	 	Rheochem Indonesia:

	 	(1)	 	is not subject to any proceeding nor have (so far as the Seller is aware) any
actions been taken in respect of its bankruptcy or for suspension of payment of debts
or in respect of its dissolution or liquidation pursuant to applicable provisions of
Indonesian Law; and
	 
	 	(2)	 	has not taken any corporate action, taken any steps, nor has there been any
legal proceedings by any third party against it that would result in bankruptcy,
winding up or dissolution.

	5.10	 	Rheochem Limited has not received from ASIC any notice warning of possible cancellation of
its registration.
	 
	5.11	 	Rheochem Pacific Limited has not received any notice warning that it may be removed from the
New Zealand Companies Register.
	 
	5.12	 	Rheochem Indonesia has not applied for a Business Licence (Ijin Usaha), which is issued by
the Capital Investment Coordinating Board (Badan Kordinasi Penanaman Modal), as it has not
commenced business activities in Indonesia.
	 
	5.13	 	No member of the Group:

	 	(1)	 	has any legal or beneficial interest in any shares or other securities in the
capital of any body corporate or other entity;
	 
	 	(2)	 	has had any legal or beneficial interest in any shares or other securities in
the capital of any body corporate or other entity (except for the shares in VMRT held
by Rheochem Limited prior to Completion);
	 
	 	(3)	 	is or has been a member of any partnership, joint venture, society or other
unincorporated association (except for the Indian Shareholders’ Agreement entered into
by Rheochem India Pvt Limited and the Indonesian shareholders’ agreement dated 20
September 2005 entered into by Rheochem Indonesia and PT Bunga Mas Nusantara which has
been terminated); and

	 	(4)	 	is or ever has been a trustee or beneficiary of any trust estate or fund.

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	5.14	 	The Group has or never had a place of business, branch or permanent establishment (as that
expression is defined in any relevant double taxation agreement) outside Australia, New
Zealand, India and Indonesia.
	 
	5.15	 	Each member of the Group is and has always been duly recognised or registered and authorised
to conduct the Business in every country or other jurisdiction in which it operates.
	 
	5.16	 	No member of the Group has allowed or consented to:

	 	(1)	 	the use by any other person; or
	 
	 	(2)	 	the registration as a business name,

	 	 	of a name similar to its name.
	 
	5.17	 	No member of the Group has given to any person any power of attorney or other authority to
act on behalf of any member of the Group.
	 
	5.18	 	No member of the Group or (so far as the Seller is aware) any person acting on behalf of the
Group has made or offered any payment to any government official which would violate the
Criminal Code Amendment (Bribery of Foreign Public Officials) Act 1999, the Criminal Code of
the Republic of Indonesia (Criminal Code), Law No 31 of 1999 concerning the Eradication of the
Criminal Act of Corruption (as amended) (Anti-Corruption Law) or any equivalent legislation in
each jurisdiction where the Group operates.
	 
	6	 	Financial position, performance and prospects
	 
	6.1	 	The Group Financial Statements were prepared:

	 	(1)	 	in accordance with all applicable laws (including International Financial
Reporting Standards);
	 
	 	(2)	 	in the manner described in the notes to them and the accompanying auditor’s
report; and
	 
	 	(3)	 	on a basis consistent with the audited accounts for the prior financial year.

	6.2	 	The Group Financial Statements give a true and fair view of the financial position and
performance of each member of the Group as at and for the period ending on the Balance Date.
	 
	6.3	 	The monthly management accounts of each Group Company for the period between 1 July 2010 and
31 January 2011 were prepared with due care and attention and accurately, in all material
respects, show the financial position and performance of each respective Group Company as at
the end of and for each period they were prepared.
	 
	6.4	 	The Business Records:

	 	(1)	 	have been disclosed to the Purchaser; and
	 
	 	(2)	 	are, in all material respects, accurate and complete.

	6.5	 	The originals of all Business Records which ought to be in the possession or under the
control of each member of the Group are in its possession or under its control.

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	6.6	 	No member of the Group is directly or indirectly obliged in any way to guarantee, assume or
provide funds to satisfy any obligation of any person who is not a member of the Group. No
letter of comfort or similar assurance has been given by any member of the Group.
	 
	6.7	 	So far as the Seller is aware, no person who is not a member of the Group has entered into
any guarantee, indemnity or letter of comfort relating to any obligations of any member of the
Group or which is necessary to carry on the Business.
	 
	6.8	 	No debts are owing to any member of the Group other than trade debts incurred in the ordinary
and normal course of the Business, all of which will be good and collectable in the ordinary
and normal course of business.
	 
	6.9	 	No Group member has any liability under any bills of exchange, promissory notes and other
negotiable or transferable instruments entered into other than in the ordinary course of
business.
	 
	6.10	 	The Disclosure Letter lists the BSB and account number and the name and location of each
account at each financial institution operated by any member of the Group, together with the
name of each person authorised to sign on each account.
	 
	7	 	Business
	 
	7.1	 	The Group is the sole legal and beneficial owner of the Assets.
	 
	7.2	 	The Assets are free from all Encumbrances. No person has claimed an interest of that kind in
respect of an Asset. To the extent that Assets are owned by Rheochem Pacific Limited, they
will additionally be free from any Security Interests.
	 
	7.3	 	The Assets, Leased Property, Leased Plant and Equipment and Licensed IP Rights are all of the
assets used in the operation of the Business.
	 
	7.4	 	No member of the Group has entered into any contract or commitment to dispose of any of the
Assets other than in the ordinary and normal course of the Business.
	 
	7.5	 	No person uses or, so far as the Seller is aware, has a right to use or occupy any of the
Assets, the Leased Property, the Leased Plant and Equipment or the Licensed IP Rights other
than the Group.
	 
	7.6	 	No member of the Group has received a notice from a Government Agency which might interfere
in a material respect with the rights of any member of the Group to own, use or occupy the
Assets, use the Leased Plant and Equipment or Licensed IP Rights, occupy the Leased Property,
employ the Employees or carry on the Business, and (so far as the Seller is aware) there are
no facts or circumstances that may reasonably give rise to any such notice being received by
any member of the Group.
	 
	7.7	 	The Group carries on the Business at the date of this Agreement and will continue to do so
until Completion.
	 
	7.8	 	So far as the Seller is aware, no customer of the Business has been dissatisfied with goods
or services received from the Group within the 12 months preceding the date of this Agreement.
	 
	7.9	 	No existing customer or supplier of any member of the Group has given notice to the Seller
or any member of the Group that it will or is likely to:

	 	(1)	 	cease trading with any member of the Group; or

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	 	(2)	 	materially reduce its trading with any member of the Group,

	 	 	as a result of the acquisition of the Shares by the Purchaser.
	 
	7.10	 	The information technology computer systems and the software and hardware owned and licensed
by the Group as set out in the Disclosure Letter are all such systems currently used in the
operation of the Business.
	 
	8	 	Changes since the Balance Date
	 
	8.1	 	Since the Balance Date:

	 	(1)	 	the Business has been carried on in the ordinary and normal course and no
contracts or commitments differing from those ordinarily necessitated by the nature of
the Business have been entered into or incurred; and
	 
	 	(2)	 	there has been no material change in the assets or liabilities, or the
financial position or performance of any member of the Group, except changes in the
ordinary and normal course of the Business, and none of these individually or together
is materially adverse to the Group or to the Business.

	8.2	 	Since the Balance Date, no member of the Group has:

	 	(1)	 	redeemed, bought back, reduced or cancelled any shares or other securities in
its capital; or
	 
	 	(2)	 	declared, decided to pay or paid a dividend, made a distribution or revalued
any assets.

	9	 	Plant and Equipment
	 
	9.1	 	The Disclosure Letter contains a list of all items of Plant and Equipment and Leased Plant
and Equipment and accurately describes those items in all material respects.
	 
	9.2	 	Each item of Plant and Equipment and Leased Plant and Equipment is in the physical possession
or under the control of the Group.
	 
	9.3	 	Each item of Plant and Equipment and Leased Plant and Equipment which is currently being used
in the ordinary course of the Business is in good working order (subject to fair wear and
tear) and adequate for the purpose for which it is currently being used in the Business.
	 
	9.4	 	Each item of Plant and Equipment and Leased Plant and Equipment is erected, installed or
positioned in accordance with all applicable laws and has been operated by the Group without
contravening any laws or occupational health and safety standards.
	 
	9.5	 	There is no claim outstanding against any supplier of or maintenance service provider for the
Plant and Equipment or the Leased Plant and Equipment in connection with a defect.
	 
	10	 	Stock
	 
	10.1	 	The Stock is of merchantable quality and adequate for its intended purpose.
	 
	10.2	 	All the Stock is in the physical possession or control of the Group.
	 
	10.3	 	No Stock (including raw materials and containers) has been delivered to the Group on terms to
the effect that the seller of the Stock retains title in the relevant goods until the Group
pays for the goods in full or all the Group’s indebtedness to the seller is discharged.

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	11	 	Property
	 
	11.1	 	The Disclosure Letter contains a list of the Freehold Property and the Leased Property,
together with a list of the Property Leases.
	 
	11.2	 	The Freehold Property and Leased Property are the only land and buildings used or occupied by
the Group in connection with the Business.
	 
	11.3	 	The Group has exclusive occupation and the right of quiet enjoyment of the Property. The
Group has not granted to any person, other than a member of the Group, any sublease, tenancy
or right of occupation in respect of the Property.
	 
	11.4	 	The current occupation and use of the Property does not contravene any applicable law in a
material respect.
	 
	11.5	 	Each written consent (including lessor’s consent) and each Permit which is required in
connection with:

	 	(1)	 	any development or building work of, on or for any Property; or
	 
	 	(2)	 	the occupation or use of any Property,

	 	 	has been properly obtained and each condition or restriction imposed under each such
consent and Permit is currently being complied with.
	 
	11.6	 	The Group enjoys the benefit of all agreements, covenants, encumbrances, restrictions,
grants, easements or rights currently used for carrying on the Business on the Property.
	 
	11.7	 	There are no agreements, covenants, encumbrances, restrictions, grants, easements or rights
affecting the Property or the current use of the Property other than the Property Leases and
any interests registered on the title of the Property.
	 
	11.8	 	The Group is not in material breach of any agreements, covenants, encumbrances, restrictions,
grants, easements or rights affecting the Property.
	 
	11.9	 	The Group has not received any written notice, demand or claim from any person in relation to
any matter in respect of any of the Properties, or any part of any of the Properties, which
has not:

	 	(1)	 	been disclosed to the Purchaser; or
	 
	 	(2)	 	been otherwise concluded to the satisfaction of the person who gave the
notice, demand or claim.

	11.10	 	Each Property is connected to power, water, gas, telecommunications and waste disposal
services and, so far as the Seller is aware, there is no imminent or likely interruption of
those services.
	 
	11.11	 	There are no current or, so far as the Seller is aware, threatened disputes or claims
relating to any of the Properties or any Property Lease.
	 
	11.12	 	In respect of each Property Lease:

	 	(1)	 	the Property Lease is enforceable in accordance with its terms;
	 
	 	(2)	 	all required duty has been paid by the relevant member of the Group;

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	 	(3)	 	the Group is not in arrears of any rent or other payments due and owing to
the lessor under the Property Lease;
	 
	 	(4)	 	the relevant member of the Group is not in material breach of or material
default under the terms of the Property Lease;
	 
	 	(5)	 	the Group will not breach the terms of the Property Lease by entering into,
or completing, this Agreement and, where necessary, has obtained all consents required
under the Property Lease;
	 
	 	(6)	 	so far as the Seller is aware, there are no outstanding notices or other
requirement given by the lessor under the Property Lease; and
	 
	 	(7)	 	the relevant member of the Group has not received any notice of termination,
rescission, avoidance or repudiation of the Property Leases to which it is a party.

	11.13	 	The option to renew the sublease of part of Toll Yard 4, Mermaid Road, Dampier (being part
Lot 471 on Deposited Plan 220595) which commenced on 19 January 2004 was validly exercised by
the Group.
	 
	11.14	 	All agreements and conveyance deeds which relate to Freehold Properties owned by Rheochem
India Private Limited, and/or all leases / lease deeds or other agreements entered into by
Rheochem India Private Limited in relation to Leased Properties, have been duly stamped in
accordance with applicable Indian laws, and, where required by applicable law, registered in
accordance with the (Indian) Registration Act, 1908 (including in each case, within the time
limits prescribed).
	 
	12	 	Contracts
	 
	12.1	 	The Material Contracts constitute all of the material or significant contracts relating to
the Business.
	 
	12.2	 	Each Material Contract is valid, binding and enforceable against the parties in accordance
with its terms, except that its enforceability may be limited by applicable bankruptcy,
insolvency, reorganisation, moratorium or similar laws affecting the enforcement of creditors’
rights generally.
	 
	12.3	 	Each Group Company has complied with the material terms of each Contract to which it is a
party and has maintained at all times insurances, licences and permits required under the
terms of such contracts.
	 
	12.4	 	So far as the Seller is aware, nothing has occurred and no party to a Material Contract has
done or failed to do anything which:

	 	(1)	 	is a breach of or a default under a Material Contract; or
	 
	 	(2)	 	could, with the lapse of time, the giving of notice, or at the election of
any person other than the Seller/a Group Company (or any combination of the 3), become
a breach of or a default under a Material Contract, or constitutes an event which
causes or enables the acceleration of any payment to be made under, or the
enforcement, termination or rescission of, any Material Contract or any material
rights under any Material Contract.

	12.5	 	No material rights under any Material Contract are reasonably likely to lapse by reason of
any act, omission or neglect on the part of any member of the Group.
	 
	12.6	 	No member of the Group has made an offer, tender or quotation which is still outstanding and
is capable of giving rise to a contract by the act of a third party (except in the ordinary
and normal course of the Business).

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	12.7	 	No Contract:

	 	(1)	 	is outside the ordinary and normal course of the Business; or
	 
	 	(2)	 	is incapable of being fulfilled or performed on time without using money,
time or effort outside the ordinary and normal course of the Business; or
	 
	 	(3)	 	provides that any member of the Group (or any other person) is to distribute
goods or services as agent for another person; or
	 
	 	(4)	 	is with an Associate of any member of the Group; or
	 
	 	(5)	 	prohibits or limits the freedom of any member of the Group (or its employees)
to be involved in any activity or business; or
	 
	 	(6)	 	requires any member of the Group to:

	 	(a)	 	share its profits; or
	 
	 	(b)	 	pay any royalties; or
	 
	 	(c)	 	waive or abandon any rights to which it is entitled; or
	 
	 	(d)	 	pay commission, remuneration or payment of any nature (except
in relation to Tax) calculated by reference to the whole or part of its
turnover, profits or sales other than sales agents in the ordinary and normal
course of the Business and any employee bonus arrangements; or
	 
	 	(e)	 	is not on arm’s length terms.

	12.8	 	Other than the Consent Contracts, no member of the Group has entered into an agreement which
could be affected by the sale of the Shares (or any other term of this Agreement) in such a
way as to entitle another party to the agreement, in accordance with the terms of the
agreement, to:

	 	(1)	 	terminate the agreement early; or
	 
	 	(2)	 	change the terms of the agreement to be less favourable to the Group.

	12.9	 	There is no agreement or understanding involving the Group which requires the Group to
acquire goods or services from another person or supply goods or services to another person
(including a person who purchases goods or services from or supplies goods or services to the
Group), as a condition of the supply of goods or services to or by the Group.

	12.10	 	Each Contract complies with all laws in the jurisdiction which applies to it in all material
respects.

	12.11	 	So far as the Seller is aware, nothing has happened which may constitute reasonable grounds
for variation, rescission, avoidance, repudiation or termination of a Material Contract and
the Group has not given or received any notice of an intention to terminate a Material
Contract.

	12.12	 	There is no legal proceeding pending nor has the Group received a threat of a legal
proceeding, in either case in connection with a Material Contract.

	12.13	 	There are no current or, so far as the Seller is aware, threatened disputes or claims made
or against a member of the Group relating to a Material Contract.

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	12.14	 	The Seller has given the Purchaser written particulars or copies of all Material Contracts
and those particulars and copies are, in all material respects, complete and accurate.

	12.15	 	A bond from a bank or financial institution, acceptable to HOEC has been delivered by
Rheochem India Pvt. Ltd to HOEC, for the performance of services under the HOEC Deed.

	13	 	Intellectual Property Rights

	13.1	 	The IP Rights, and the Licensed IP Rights the subject of the IP Licences, are the only
Intellectual Property Rights used in the Business.

	13.2	 	The Group owns all right and title to and interest in the IP Rights throughout Australia, New
Zealand, India and Indonesia. The Seller has provided to the Purchaser complete and accurate
copies (in all material respects) of all IP Licences.

	13.3	 	The Group has not licensed, assigned or in any way disposed of any IP Right (or any interest
in any of them).

	13.4	 	Neither the Seller nor any member of the Group has disclosed any Confidential Information
except in the ordinary and normal course of the Business and on a confidential basis.

	13.5	 	The IP Rights are valid, binding and enforceable by the relevant member of the Group
throughout the jurisdiction of that Group member. The Group has taken all necessary steps to
obtain and maintain appropriate registrations for the IP Rights.

	13.6	 	So far as the Seller is aware, the Group’s use of the IP Rights and the Licensed IP Rights
does not:

	 	(1)	 	infringe the intellectual property rights (including business names, internet
domain names, trade marks, patents, designs, copyright and rights to confidential
information) of any third party in a material way, and is not alleged to infringe them
in a material way; or
	 
	 	(2)	 	breach any obligation of confidentiality owed to anyone else, and is not
alleged to breach a confidentiality obligation.

	13.7	 	So far as the Seller is aware, there has been no infringement of any IP Right by a third
party nor is any IP Right the subject of any dispute, proceedings, opposition, claim or
expungement application.
	 
	13.8	 	So far as the Seller is aware, no other person uses any Business Name or Domain Name.

	13.9	 	The Group holds a valid licence to use, and has paid in full all licence fees due in respect
of, each Domain Name.

	13.10	 	The Group does not pay any royalty or other payment to any third party in relation to the
ownership or use of the IP Rights.

	14	 	Employees and officers

	14.1	 	The Seller has provided to the Purchaser a list of the Employees (a copy of which is in the
Disclosure Letter), which contains, in all material respects, complete and accurate details of
each Employee’s:

	 	(1)	 	name, job description, date of birth, whether they are part-time, full-time,
fixed-term or casual (and in the case of Rheochem Indonesia, whether they are
permanent or contract employees) and date of commencement of employment;

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	 	(2)	 	coverage under any applicable industrial award, industrial agreement or
contract of employment;
	 
	 	(3)	 	entitlement at the date of this Agreement to wages, salaries and leave
(including annual leave and leave loading, long service leave, personal/carer’s/sick
leave, rostered days off, leisure time, or time off in lieu of overtime worked); and
	 
	 	(4)	 	entitlement at the date of this Agreement to any other remuneration,
compensation or benefits, under any applicable industrial awards, industrial
agreement, and other agreement, scheme or arrangement (including any bonus, profit
share, option scheme or employee incentive plan or scheme) whether oral or in writing.

	14.2	 	No member of the Group has given any commitment (whether legally binding or not) to increase
or supplement the remuneration, compensation or benefits of any Employee beyond the
entitlements set out in the list referred to in Seller Warranty 14.1

	14.3	 	No member of the Group is a party to any agreement, arrangement or understanding with a union
or industrial organisation in respect of any Employee or group of Employees, except as set out
in the list referred to in Seller Warranty 14.1.

	14.4	 	The Seller has provided to the Purchaser a copy of all written agreements, arrangements and
understandings with each Employee or group of Employees in relation to their employment and
has identified the award and industrial agreement that applies to each Employee.

	14.5	 	No member of the Group has made any loans to any Employee, officer or former employee or
officer which are still outstanding or due for repayment.

	14.6	 	Except as set out in the list referred to in Seller Warranty14.1, no member of the Group
operates a bonus, option, profit share or employee incentive plan or scheme for its employees
or officers.

	14.7	 	Except as set out in the list referred to in Seller Warranty 14.1, no member of the Group is
party to any agreement, arrangement or understanding with respect to retirement, death or
disability benefits for Employees or officers or directors (or former employees or officers or
directors) of the Group.

	14.8	 	Each Employee is employed by a member of the Group. So far as the Seller is aware, no
employee is engaged in any business other than the Business. There are no persons engaged in
the Business or providing services to any member of the Group other than the Employees.

	14.9	 	Accurate details of all agreements, arrangements or understandings with any person for the
provision of consulting or management services to any member of the Group are set out in the
Disclosure Letter and the Seller is not aware of any grounds on which such person could
successfully claim to be an employee of the Group.

	14.10	 	No casual employees engaged by any member of the Group are engaged on a regular and
systematic basis.

	14.11	 	All fixed terms employees engaged by any member of the Group are employed on fixed term
arrangements which comply with relevant legislation.

	14.12	 	Each member of the Group has paid all amounts due and payable to each Employee and officer
(and each former employee and officer) of each member of the Group up to the date of
Completion, or will pay these amounts by the date of Completion.

	14.13	 	No member of the Group has any existing service or other agreements with any Employees which
cannot be fairly terminated by the provision of 6 months’ notice or less,
without giving rise to a claim for damages or compensation in accordance with the terms of
such agreement.

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	14.14	 	There is no policy, practice or obligation regarding redundancy payments to Employees which
is more generous than the applicable award(s) or legislation, other than as disclosed in the
list referred to in Seller Warranty 14.1. The transfer of the Shares will not create any
redundancies or entitle any Employee of the Group to resign and be paid a payment in the
nature of a redundancy payment.

	14.15	 	Since the Balance Date, the Group has not terminated or given notice to terminate the
employment or engagement of any Employee or officer (or former employee or officer) of any
member of the Group for any reason and no such employee or officer has given notice of their
resignation to any member of the Group.

	14.16	 	No member of the Group has any knowledge of grounds for dismissal of any Employee, nor is
under or reasonably likely to be under any obligation to reinstate or reemploy any former
employee.

	14.17	 	During the 2 year period immediately before the date of this Agreement, there have not been
any Claims by any Employee or officer (or former employee or officer) of any member of the
Group relating to their employment with the Group, including any Claims for compensation or
reinstatement as a consequence of termination of employment or loss of office or by any union
on behalf of any Employee. No Claims of this nature are pending or have been threatened.

	14.18	 	No member of the Group is involved in and, so far as the Seller is aware, there are no facts
or circumstances that may reasonably give rise to any dispute or grievance involving any
Employee or officer (or former employee or officer) of any member of the Group, or any
employee organisation or union representing any such employee or officer, and no such dispute
or grievance is pending or threatened.

	14.19	 	There has not been any dispute or grievance with or involving any Employee or officer (or
former employee or officer) of any member of the Group or employee organisation or union
representing any such employee or officer during the 2 year period immediately before the date
of this Agreement.

	14.20	 	Each member of the Group has complied with its obligations under applicable agreements,
statutes, industrial awards, company policies and codes of conduct in respect of each Employee
and officer (and each former employee and officer) of each member of the Group.

	14.21	 	Each member of the Group has maintained and maintains in accordance with all applicable laws
complete and accurate records, in all material respects, in respect of each Employee and
former employee.

	14.22	 	No member of the Group has been investigated or prosecuted by the Workplace Ombudsman or the
Fair Work Ombudsman or any similar officer (including, without limitation, the Department of
Labour (New Zealand) or any other government department), and, so far as the Seller is aware,
no investigation or prosecution of this nature is pending or has been threatened.

	14.23	 	Fair Work Australia has not notified any member of the Group that any industrial agreement
does not meet the better off overall test in the Fair Work Act 2009 (Cth).

	14.24	 	The remuneration and other emoluments (as defined in the Corporations Act) or benefits and
the terms of engagement of each of the directors of each member of the Group are set out in
the Disclosure Letter. No member of the Group has agreed to give any remuneration or other
emoluments or benefits to its current directors in excess of the amount permitted by law.

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	14.25	 	So far as the Seller is aware, no member of the Group is the subject of investigation, or is
aware of any circumstances that could reasonably give rise to an investigation, by any
statutory occupational health and safety body or government department.

	14.26	 	So far as the Seller is aware, no circumstances have arisen involving any Employee that have
triggered, or should have triggered, any notification requirements under any applicable
occupational health and safety legislation.
	 
	14.27	 	Rheochem Indonesia does not have any employees.

	14.28	 	Rheochem India Pvt Limited has obtained, to the extent applicable, all material
registrations, licences, permissions and approvals required under, and complied in all
material respects with, all applicable laws relating to the employment of labour, including
provisions relating to payment of wages and bonus, hours of work, equal opportunity, maternity
benefits, collective bargaining, contract labour, employment of foreign employees and the
payment of taxes including under the Minimum Wages Act, 1948, Contract Labour (Regulation and
Abolition) Act, 1970, the Employees Provident Funds & Miscellaneous Provisions Act, 1952, the
Payment of Gratuity Act, 1972, Employees State Insurance Act, 1948, Maternity Benefits Act,
1961, Equal Remuneration Act, 1976, Payment of Bonus Act, 1965, state specific professions tax
legislations and state specific shops and establishment legislations.

	14.29	 	Each Group Company has at all times complied with its obligations under all applicable
immigration laws.

	15	 	Superannuation

	15.1	 	Any superannuation funds set out in the Disclosure Letter are the only superannuation schemes
or other pension arrangements to which any member of the Group contributes in relation to the
Employees.

	15.2	 	Each superannuation fund to which Rheochem Limited contributes to, as contemplated by Seller
Warranty 15.1, is a “complying superannuation fund” for the purposes of the Superannuation
Industry (Supervision) Act 1993 (Cth).
	 
	15.3	 	With respect to each Employee and former employee of Rheochem Limited:

	 	(1)	 	Rheochem Limited has provided, if required, at least the prescribed minimum
level of superannuation support for that Employee or former employee so as not to
incur a liability for the Superannuation Guarantee Charge and proper provision has
been made for contributions payable in the current quarter, for that period up to and
including the date of Completion;
	 
	 	(2)	 	there are no outstanding or unpaid superannuation contributions on the part
of Rheochem Limited for that Employee or former employee however arising (including
under statute, award or agreement);
	 
	 	(3)	 	they have been properly offered, where required, a choice of superannuation
fund to receive employer contributions payable, in accordance with the provisions of
Part 3A of the Superannuation Guarantee (Administration) Act 1993 (Cth);
	 
	 	(4)	 	Rheochem Limited has complied with any obligations in relation to
superannuation as prescribed in any applicable industrial award or agreement;
	 
	 	(5)	 	except to the extent provided for in the Group Financial Statements of
Rheochem Limited, there are no outstanding or unpaid benefits currently due to
Employee’s or former employee’s dependants or beneficiaries; and
	 
	 	(6)	 	there are no complaints or outstanding claims for unpaid superannuation
contributions.

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	16	 	Proceedings

	16.1	 	No member of the Group is the subject of or involved in and, so far as the Seller is aware,
there are no facts or circumstances that may reasonably give rise to any prosecution,
enforcement action (including the issue of an infringement notice), legal proceedings,
arbitration, mediation or other dispute resolution procedure involving any member of the Group
or any person for whose acts or omissions any member of the Group may legally be liable, and
no such prosecution, enforcement action, legal proceedings, arbitration, mediation or other
dispute resolution procedure is pending or has been threatened.

	16.2	 	No member of the Group is the subject of or involved in and, so far as the Seller is aware,
there are no facts or circumstances that may reasonably give rise to any proceedings before or
investigation by a Government Agency, and no such proceeding or investigation is pending or
has been threatened.

	16.3	 	So far as the Seller is aware, there is no deficiency or defect in any of the products or
services sold or supplied or being sold or supplied in the conduct of the Business which is
reasonably likely to result in a Claim against any member of the Group or for which any member
of the Group becomes or is reasonably likely to become liable or responsible.

	16.4	 	So far as the Seller is aware, no action or claim that any member of the Group may be
entitled to bring has become or, within 12 months after Completion, may become barred or
impaired by reason of time or delay (whether by contract, statute or otherwise). So far as
the Seller is aware, no action or claim that any member of the Group was entitled to defend,
resist or claim set-off against has been or, within 12 months after Completion, may be
advanced against any member of the Group for want of action by any member of the Group in due
time.

	16.5	 	No member of the Group is the subject of an unsatisfied judgment, order, award or decision
handed down in legal proceedings, arbitration, mediation or other dispute resolution
procedure, nor is party to any undertaking or assurance given to any court, arbitrator,
tribunal or other Government Agency which is still in force.

	16.6	 	There has not been any breach of or material default by any member of the Group of any term
or provision of any judgment, order, award or decision handed down in legal proceedings,
arbitration, mediation or other dispute resolution procedure and, so far as the Seller is
aware, there has not occurred any event which, with the passage of time or giving of notice,
would constitute a breach or default of that kind.

	17	 	Compliance

	17.1	 	The Assets are owned, used and occupied, the Leased Plant and Equipment and Licensed IP
Rights are used, the Leased Property is occupied and the Business is carried on in accordance
with all applicable laws in all material respects. No member of the Group, nor (so far as the
Seller is aware) any of their employees, officers or agents, has committed or omitted to do
any act or thing the commission or omission of which is or may be in contravention of any such
law in a material respect.

	17.2	 	The Group holds all licences, consents, registrations, permissions, authorisations and
permits necessary to own the Assets and carry on the Business in all material respects.

	17.3	 	So far as the Seller is aware, each licence, consent, registration, permission, authorisation
and permit referred to in Seller Warranty 17.2:

	 	(1)	 	is paid up;

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	 	(2)	 	has been complied with in all material respects;
	 
	 	(3)	 	is in full force and effect;
	 
	 	(4)	 	is not liable to be revoked or not renewed; and
	 
	 	(5)	 	is not subject to any conditions which adversely affect any member of the
Group or the Business.

	17.4	 	So far as the Seller is aware, there is no circumstance or fact involving the Business which
may reasonably result in the breach, revocation or variation in any material respect, of any
licence, consent, registration, permission, authorisation or permit referred to in Seller
Warranty 17.2 or which would materially hinder or prevent its renewal by the Group.

	17.5	 	Rheochem India Pvt. Ltd. has not been engaged in the activity of test marketing after18
August 2006. All test marketing activities of Rheochem India Pvt. Ltd. carried out before 18
August 2006, were carried out in compliance with all applicable laws, including the FDI Laws
and the approval of the Foreign Investment and Promotion Board dated 13 July 2005 (“FIPB
Approval”). Since 18 August 2006, Rheochem India Pvt. Ltd. has solely been engaged in the
business of providing engineering services and whole-sale trading, which are and have been in
compliance with all applicable laws, including the FDI Laws and the FIPB Approval.

	17.6	 	Rheochem India Pvt. Ltd. has not received any adverse notice from any Indian regulatory
authority, including the Foreign Investment Promotion Board and Reserve Bank of India, under
the FDI Laws in relation to the business activities referred to in Seller Warranty 17.5.

	17.7	 	Each member of the Group has completed and lodged (within the required timeframes) all
returns and statements, documents, accounts and forms required to be lodged by law with any
Governmental Agency and the returns and statements so lodged were correct in every material
particular.

	17.8	 	The books, records and registers of each member of the Group have been kept, in all material
respects, in accordance with all laws.

	18	 	Insurance

	18.1	 	All insurances in respect of the Business and the Assets are set out in the Disclosure
Letter. There are no outstanding claims under any of these insurances.
	 
	18.2	 	All current premiums on the insurance policies of the Group have been paid.

	18.3	 	So far as the Seller is aware, there is nothing that would lead to any contract for any of
the insurance, or any claim under any contract for any of the insurance, being avoided,
repudiated or denied.

	18.4	 	All insurance required by law and Material Contracts to be effected by each member of the
Group has been effected and is current.

	18.5	 	Each member of the Group has made all disclosure and notifications to and claims on insurers
in the form required and within the times required in accordance with the terms of the
insurance contracts.

	19	 	Environmental

	19.1	 	The Business is conducted in compliance with Environmental Law.

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	19.2	 	Each Environmental Permit held by the Group:

	 	(1)	 	is current; and
	 
	 	(2)	 	has been complied with in all material respects.

	19.3	 	So far as the Seller is aware, there is no proposal to revoke, suspend, modify or not renew
any Environmental Permit held by the Group, or to serve an Environmental Notice on any member
of the Group.
	 
	19.4	 	In connection with the Business, the Group has not:

	 	(1)	 	breached an Environmental Law or an Environmental Permit; or
	 
	 	(2)	 	caused any Contamination.

	19.5	 	So far as the Seller is aware, there is no substance located at any property owned or
occupied by the Group (including in an underground container or pipe) which has caused or
could reasonably cause:

	 	(1)	 	nuisance, serious injury or death to any person; or
	 
	 	(2)	 	material damage to any such property; or
	 
	 	(3)	 	Contamination,

	 	 	except for substances in containers which are in good operating condition and are
leak-proof and comply with all Environmental Law and Environmental Permits.
	 
	20	 	Tax — Rheochem Limited

	20.1	 	All Tax returns required by law to be lodged or filed by Rheochem Limited have been lodged or
filed and no Tax return contains a statement that is false or misleading in any material
particular or omits to refer to any relevant matter that is required to be included or without
which the statement is false or misleading.

	20.2	 	All records relating to Tax returns or to the preparation of those returns required by law to
be maintained by Rheochem Limited have been duly maintained in accordance with the Tax Act
including, but not limited to, all records required in relation to the franking account
balance of Rheochem Limited and records necessary to permit the ascertainment of all
information required in relation to capital gains and capital losses (including net capital
gains and net capital losses), capital allowances and capital works under the Tax Act.

	20.3	 	All Tax for which Rheochem Limited is liable in relation to the period up to and including
Completion, including any penalty, fine or interest, has been paid or, in the case of Tax that
is not yet due and payable, fully provided for in the Group Financial Statement of Rheochem
Limited.

	20.4	 	There is no current dispute between Rheochem Limited and any Revenue Authority and Rheochem
Limited is not the subject of a Tax audit or investigation by a Revenue Authority and there
are no facts or circumstances that might reasonably give rise to such a dispute, audit or
investigation.

	20.5	 	All amounts of Tax required by law to be deducted or withheld from payments by Rheochem
Limited have been deducted or withheld and paid to the appropriate authority.

	20.6	 	Rheochem Plc is an Australian tax resident for the purposes of the Tax Act.

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	20.7	 	Rheochem Limited has always had a public officer appointed in accordance with the
requirements of the Tax Act.

	20.8	 	No change has occurred in the Business which would prevent any revenue loss being carried
forward and deducted from assessable income in a subsequent year or which would prevent any
capital loss being carried forward to offset capital gains in a subsequent year.

	20.9	 	Rheochem Limited has not taken any action which does or might reasonably adversely affect an
agreement with a Revenue Authority or a tax ruling from a Revenue Authority.

	20.10	 	No dividend has been paid by Rheochem Limited in respect of which the required franking
amount has exceeded the franked amount of the dividend, or which has been franked in excess of
the required franking amount, which would result in Rheochem Limited being liable to pay
franking deficit tax or any additional tax.

	20.11	 	The share capital account of each Rheochem Limited is not “tainted” for the purposes of the
Tax Act.

	20.12	 	Except for this Agreement (and the Transaction Documents), all applicable Stamp Duty has
been paid in connection with every document or transaction:

	 	(1)	 	which relates to the Assets or the Business (including the Contracts and
Permits); or
	 
	 	(2)	 	by which any Rheochem Limited received, receives or will or may receive a
material benefit.

	20.13	 	So far as the Seller is aware, nothing has happened to make payable any Tax which Rheochem
Limited has been released from paying.

	20.14	 	There are no assets that have been rolled over by Rheochem Limited under any rollover
provisions, including those in Parts 3-1 to 3-3 of the Tax Act, that may be the subject of a
CGT event or treated as having been disposed of for the purposes of the Tax Act as a result of
this Agreement.

	20.15	 	Rheochem Limited has lodged or retained on file, as required, all returns, information,
declarations, elections, notices and statements with respect to Taxes as required by law for
the five previous financial years which ended on or prior to 30 June 2010, has retained copies
of same, and will continue to do so until the Completion Date and has made and will make a
full and true disclosure of all information it is obliged to disclose to all Revenue
Authorities.

	20.16	 	So far as the Seller is aware, no transaction or event has occurred or arrangement been
entered into other than in the ordinary course of business or under this Agreement and the
Transaction Documents as a consequence of which Rheochem Limited:

	 	(1)	 	has or may be deprived of any relief otherwise available to it; or
	 
	 	(2)	 	is or may be held liable for any Tax, including Tax primarily chargeable
against some other company or person whether by reason of the other company or person
being or having been a member of the same group of companies (including a tax
consolidated group, GST group or pay-roll tax group) or otherwise;

for which provision or reserve has not been made in the Group Financial Statement of
Rheochem Limited , or which if occurring or entered into after 30 June 2011 has not been
disclosed to the Purchaser.

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	20.17	 	Rheochem Limited has not been involved in any forgiveness, or action that could be treated
as forgiveness, of any commercial debt that could result in a net forgiven amount arising for
Rheochem Limited under Schedule 2C of the Tax Act.

	20.18	 	Rheochem Limited has not issued or created a non-share equity interest or a non-equity share
as those terms are defined in section 995-1 of the Tax Act.

	20.19	 	All documents, the enforcement of which Rheochem Limited may be interested, have been duly
stamped and no document belonging to or transaction involving Rheochem Limited that is subject
to Stamp Duty is unstamped or insufficiently stamped or is liable to have additional duty
assessed.

	20.20	 	Rheochem Limited, if required by law to be registered for GST, is properly registered, has
an Australian Business Number and any GST net amount has been paid or claimed in respect of
Tax periods until Completion.

	20.21	 	All transactions and other dealings by Rheochem Limited with other members of the Group and
with any third party have been conducted at arm’s length and such arm’s length dealings are
evidenced by documentation retained by Rheochem Limited.

	20.22	 	Rheochem Limited has not been involved in any dividend stripping or dividend or capital
streaming or franking credit trading schemes or any scheme that may result in a declaration by
the Commissioner pursuant to Division 165 of the GST Act or a determination pursuant to Part
IVA of the Tax Act.
	 
	20.23	 	Rheochem Limited has never been a member of a GST group or a pay-roll tax group.
	 
	20.24	 	Rheochem Limited is not a party to:

	 	(1)	 	any indirect tax sharing agreement that satisfies all the requirements in
section 444-90(1A) in Schedule 1 of the Taxation Administration Act 1953 (Cth); or
	 
	 	(2)	 	any indirect tax funding agreement to fund or contribute to the payment of
indirect tax by another entity.

	20.25	 	Rheochem Limited has never been a member of a tax consolidated group and no election has or
will be made by the Seller or any member of the Seller Group which would cause Rheochem
Limited to become a member of such a group.
	 
	20.26	 	Rheochem Limited is not a party to:

	 	(1)	 	any tax sharing agreement that satisfies all the requirements in section
721-25 of the Tax Act; or
	 
	 	(2)	 	any tax funding agreement to fund or contribute to the payment of tax by
another entity.

	21	 	Tax — Rheochem Pacific Limited

	21.1	 	All Tax for which Rheochem Pacific Limited is liable in relation to the period up to and
including Completion, including:

	 	(1)	 	where that liability arises in respect of, or by reference to, any profits,
gains or income (including deemed profits, gains or income) for any period or part
period ending on or before the Completion Date;
	 
	 	(2)	 	where that liability arises in respect of any distribution, payment,
transaction, act, omission or event occurring on or before the Completion Date;

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	 	(3)	 	any penalty, fine or interest,

	 	 	has been paid prior to Completion.
	 
	21.2	 	Rheochem Pacific Limited has accurately, and within the requisite legislative timeframes:

	 	(1)	 	given all relevant notices and made all necessary elections and choices for
the purposes of ensuring the accuracy of all Tax returns required to be filed;
	 
	 	(2)	 	supplied all required information, and made all necessary disclosures; and
	 
	 	(3)	 	duly filed all Tax returns, (such returns being prepared in accordance with
the relevant provisions of any applicable Tax law) required to be filed,

	 	 	with or to the relevant Revenue Authority. Rheochem Pacific Limited has prepared and kept
any elections, notices or other documents required to be prepared under a Tax law or in
fact prepared for the purposes of complying with Tax obligations.

	21.3	 	All payments of Tax required to be made by Rheochem Pacific Limited on or before the
Completion Date have been made. Any provisional Tax payment already paid by Rheochem Pacific
Limited in the current income year constituted a reasonable estimate of the amount of
provisional Tax payable on the applicable date.

	21.4	 	All deductions or withholdings of Tax required to be made from distributions or payments (of
any description or nature), including payments of dividends, interest, royalties, salaries,
wages, other remuneration made by Rheochem Pacific Limited, have been made, and:

	 	(1)	 	Rheochem Pacific Limited has accounted to the relevant Revenue Authority for
any Tax so deducted or withheld, by the relevant due dates under the relevant Tax law;
or
	 
	 	(2)	 	the amounts that were deducted or withheld have been retained in full by, and
are available to, Rheochem Pacific Limited pending their future payment by the
applicable due date (where such due date is after Completion) to the relevant Revenue
Authority.

	21.5	 	For the purposes of New Zealand goods and services tax as defined in the Goods and Services
Tax Act 1985 (New Zealand) (“NZ GST”):

	 	(1)	 	Rheochem Pacific Limited has complied with all of the requirements of the
applicable Tax law;
	 
	 	(2)	 	all NZ GST for which Rheochem Pacific Limited was liable to account in
respect of any taxable supply made (or deemed to be made) on or before the day before
the Completion Date, after taking account of any available input tax credits:

	 	(a)	 	has been properly accounted for, within the relevant
legislative timeframe; or
	 
	 	(b)	 	has, if required, been retained in full by, and is available
to, Rheochem Pacific Limited pending payment to the relevant Revenue Authority
by the applicable due date (where such due date is after Completion); and

	 	(3)	 	no tax credit has been incorrectly claimed by Rheochem Pacific Limited.

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	21.6	 	Tax Accounts:

	 	(1)	 	To the extent that any memorandum accounts (as defined in the Income Tax Act
2007 (New Zealand)) are required to be maintained by Rheochem Pacific Limited, those
accounts have been correctly maintained as required by the applicable Tax law.
	 
	 	(2)	 	No memorandum account of Rheochem Pacific Limited has a balance that would
result in an amount of Tax being payable.
	 
	 	(3)	 	Rheochem Pacific Limited is not liable for any payment of Tax as a result of
a previous balance in any memorandum account.

	21.7	 	No assessable income would arise to Rheochem Pacific Limited if any capital asset of Rheochem
Pacific Limited as at the Completion Date were treated as having been sold, disposed of or
distributed on the Completion Date for its market value, except any depreciation recovery
income.

	21.8	 	No transaction or event has occurred or arrangement has been entered into in consequence of
which Rheochem Pacific Limited has or may become deprived of Tax relief otherwise available to
it.

	21.9	 	Rheochem Pacific Limited does not make supplies for New Zealand goods and services tax
purposes under a contract, agreement or arrangement in circumstances where there is no express
entitlement in writing to recover or be paid an amount equal to the NZ GST charged on the
supply, unless the consideration for the supply is expressly described in the contract or
agreement as including NZ GST.

	21.10	 	Rheochem Pacific Limited does not have an unsatisfied liability in respect of a dutiable
gift.

	21.11	 	Rheochem Pacific Limited is not party to, or otherwise affected by, any transaction, payment
or arrangement which, following inquiry or review by a Revenue Authority, may directly or
indirectly lead to an increase in Rheochem Pacific Limited’s liability to Tax for any period
ending on or before the Completion Date by reason of a:

	 	(1)	 	transfer pricing adjustment; or
	 
	 	(2)	 	thin capitalisation adjustment; or
	 
	 	(3)	 	conduit relief adjustment.

	21.12	 	Rheochem Pacific Limited has not at any time been a qualifying company as defined in section
YA 1 of the Income Tax Act 2007 (New Zealand).

	21.13	 	If Rheochem Pacific Limited has or has ever had, a place of business, branch, or fixed
establishment outside the jurisdiction in which it is incorporated, the correct amount of Tax
in respect of the activities of that place of business has been paid by Rheochem Pacific
Limited.

	21.14	 	Rheochem Pacific Limited has never been resident in a jurisdiction other than New Zealand
for income tax purposes.

	21.15	 	Neither the signature nor the performance of this Agreement will render Rheochem Pacific
Limited or any of its shareholders (except the Seller) liable to any, or to any additional,
Tax.

	21.16	 	Rheochem Pacific Limited has not taken any action that does, or might reasonably, cause an
arrangement or agreement in respect of Taxes entered into with a Revenue Authority,
or a ruling or determination from a Revenue Authority (other than a public ruling or
determination) to cease to be binding on the Revenue Authority.

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	21.17	 	Rheochem Pacific Limited has not been, or is a party to, an arrangement in respect of which
a Revenue Authority:

	 	(1)	 	could invoke a general or specific anti-avoidance provision of any Tax Law,
or any provision of any Tax law relating to the standards expected of taxpayers in
filing or providing tax returns; or
	 
	 	(2)	 	could apply any common law principle such as fiscal nullity,

	 	 	in each case where such invocation or application could give rise to a liability for Tax
for, or on the part of, Rheochem Pacific Limited.

	21.18	 	No Revenue Authority has issued to Rheochem Pacific Limited a Tax claim or other written
advice regarding or relating to the payment of or liability for any Tax or the reduction in
any Tax relief (other than as set out in the Disclosure Letter), and no Tax audit, review or
investigation by any Revenue Authority is, so far as the Seller is aware, being undertaken or
pending, against or involving Rheochem Pacific Limited.

	21.19	 	Rheochem Pacific Limited has kept those records and documents which it has been required by
applicable Tax law to keep.

	21.20	 	Rheochem Pacific Limited has not entered into any agreement or arrangement with another
person under which Rheochem Pacific Limited is liable or may become liable to pay, reimburse
or indemnify that person in respect of any Tax that is or may become at some future stage
payable by that person or its affiliates.
	 
	21.21	 	No dividend has been paid by Rheochem Pacific Limited:

	 	(1)	 	in respect of which attached imputation or dividend withholding payment
credits or conduit Tax relief credits has exceeded the ratio of credits allocated to
the benchmark dividend and for which no ratio change declaration has been provided to
and not rejected by the Revenue Authority; or
	 
	 	(2)	 	to which has been attached such credits in excess of the permitted maximum
amount; or
	 
	 	(3)	 	which would for any reason result in Rheochem Pacific Limited being liable to
pay imputation penalty tax or additional Tax under Tax Law.

	21.22	 	Rheochem Pacific Limited does not have any interest in any controlled foreign company or in
any foreign investment fund and is not a settlor of any foreign trust or any non-qualifying
trust.

	21.23	 	Rheochem Pacific Limited has not granted any extension or waiver of the time bar contained
in the applicable Tax law, or agreed to any extension of time with respect to a Tax claim,
which period (after giving effect to such extension or waiver) has not yet expired.

	21.24	 	All other obligations imposed by any provision of a Tax law on Rheochem Pacific Limited or
any officer of Rheochem Pacific Limited have been complied with in accordance with the terms
of that Tax law or alternatively in accordance with the requirements of the relevant Revenue
Authority.

	21.25	 	The available subscribed capital of Rheochem Pacific Limited is not less than the amount of
the paid up share capital of Rheochem Pacific Limited as shown in the relevant Group Financial
Statements.

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	21.26	 	Rheochem Pacific Limited has properly claimed depreciation on all of its depreciable
property, and the adjusted tax values and cost prices of all such depreciable property are as
stated in Rheochem Pacific Limited’s asset register.

	22	 	Tax — Rheochem Indonesia
	 
	22.1	 	With respect to Rheochem Indonesia:

	 	(1)	 	Rheochem Indonesia has, within the time and in the manner prescribed by Law,
filed all annual Tax returns which the Seller is required to file pursuant to
Indonesian Law, has paid or provided for all Taxes shown thereon to be due and owing
by it and has paid or provided for all deficiencies or other assessments of Taxes,
interest or penalties owed by it, and no Tax Authority has given written notice to it
of any claim for the assessment of any additional Taxes of any nature with respect to
any periods covered by any such Tax returns.
	 
	 	(2)	 	except as set out in the Disclosure Letter, Rheochem Indonesia has no
liabilities, whether actual or contingent, accrued or unaccrued, for Taxes;
	 
	 	(3)	 	no audit of any Tax return of the Seller is in progress or threatened in
writing and Rheochem Indonesia has not received any written notice of any deficiencies
having been assessed or asserted, proposed or threatened against it as a result of any
audit by any national or local taxing Authority;
	 
	 	(4)	 	no extension of time with respect to any date on which any Tax Return was or
is to be filed by Rheochem Indonesia is in force; and
	 
	 	(5)	 	no issues have been notified in writing to Rheochem Indonesia by any Tax
Authority which is currently pending in connection with any Tax Returns. No material
issues have been raised in any examination by any Tax Authority with respect to
Rheochem Indonesia, which, by application of similar principles, reasonably could be
expected to result in a proposed deficiency for any other period not so examined.
There are no unresolved issues or unpaid deficiencies relating to any such
examination. There are no examinations in progress, and Rheochem Indonesia has not
received any written notice of claim for any Taxes.

	23	 	Tax — Rheochem India Pvt Limited

	23.1	 	Rheochem India Pvt Limited is a resident of India for Tax purposes. Rheochem India Pvt
Limited has filed all Tax returns required pursuant to applicable Law, all such Tax returns
are complete and correct in all material respects, and (so far as the Seller is aware) none of
such returns is disputed by any Governmental Agency and/or Revenue Authority concerned.

	23.2	 	Rheochem India Pvt Limited has paid all Taxes (including advance taxes) due and payable. All
material registrations on account of Taxes required under applicable Law have been duly met.

	23.3	 	Rheochem India Pvt Limited has made appropriate provisions or reserves in the relevant Group
Financial Statements for all Taxes liable to be assessed on Rheochem India Pvt Limited or for
which it is or may become accountable in respect of profits, gains or income (as computed for
Tax purposes) arising, accruing or otherwise recognised or deemed to arise, accrue or be
otherwise recognised on or before the Balance Date. Adequate provisions for deferred taxation
have been made in the relevant Group Financial Statements of Rheochem India Pvt Limited in
accordance with accounting principles, standards and practices generally accepted at the date
of this Agreement in India.

	23.4	 	All Taxes required to be deducted by Rheochem India Pvt Limited, from any payments made or
deemed to be or treated as made by any of them or on any of their behalf, have
been duly deducted and filings with respect to the same have been done and completed as per
the terms of applicable Law, and advance payments paid as are required by Law.

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	23.5	 	So far as the Seller is aware, there are no Claims or any notice of any Claim relating to
Taxes or any Tax returns of Rheochem India Pvt Limited, and Rheochem India Pvt Limited
otherwise has no knowledge of any threatened or proposed Tax audit, examination or Claim.
Rheochem India Pvt Limited is not and does not expect to be involved in a dispute in relation
to Tax.

	23.6	 	Rheochem India Pvt Limited does not have any liability (including potential liability) for
any Tax or any portion of a Tax (or any amount calculated with reference to any portion of a
Tax) of any Person as transferee or successor, by contract, inter-company account system or
otherwise.

	23.7	 	Rheochem India Pvt Limited has sufficient records to determine the Tax consequences which
would arise on a disposal or on the realization of each material asset owned by it at the
Balance Date, or acquired since the Balance Date but before the date of this Agreement.

	23.8	 	No relief (whether by way of deduction, reduction, set-off, exemption, postponement,
roll-over, hold-over, repayment or allowance or otherwise) from, against or in respect of any
taxation has been claimed and/or given to Rheochem India Pvt Limited which could be
effectively withdrawn, postponed, restricted, clawed back or otherwise be lost.

	23.9	 	Rheochem India Pvt Limited has complied with Indian transfer pricing regulations and has
maintained the prescribed documentation in connection with transactions undertaken with its
associated enterprises. All transactions or arrangements involving Rheochem India Pvt Limited
have been entered into on arm’s length terms and Rheochem India Pvt Limited has maintained all
relevant documentation to be able to substantiate the same. Rheochem India Pvt Limited has
submitted to the concerned Revenue Authorities, all of the requisite transfer pricing
documentation including certificates obtained from independent chartered accountants within
the prescribed time and has kept documentary evidence to substantiate the same.

	23.10	 	Rheochem India Pvt Limited has accurately carried forward, as applicable, all losses, tax
credits (including for the purposes of Indian Tax minimum alternate tax credits, CENVAT
credits, etc.) and other benefits that are available as a set off against profits/tax
liabilities of subsequent years and/or has claimed refund of such Taxes and all requisite
documents have been filed in a complete and accurate manner and within the prescribed time
period.

	23.11	 	So far as the Seller is aware, Rheochem India Pvt Limited has not taken any action, which
has had, or might reasonably have, the result of prejudicing or disturbing any special
arrangement or concession in relation to it (including, without limitation, any arrangements
and concessions relating to the taxation of foreign exchange gains and losses and / or
financial instruments and / or loan relationships).

	23.12	 	Rheochem India Pvt Limited has not at any time entered into or been party to any
transactions, schemes or arrangements which either:

	 	(1)	 	were entered into solely or wholly or mainly with a view to avoiding,
reducing, postponing or extinguishing any actual or potential liability to Tax;
	 
	 	(2)	 	contain steps inserted without any commercial or business purpose; or
	 
	 	(3)	 	could be reclassified for the purposes of Tax under any legislation,
enactment or other law or otherwise by any Revenue Authority.

	23.13	 	Rheochem India Pvt Limited is not a party to any arrangement or transaction, whereby it has
agreed to fund or contribute to the payment of any indirect tax by another entity.

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Schedule 3 — Purchaser Warranties

Clause 1.1(106)

	1.1	 	The Purchaser is duly incorporated and validly exists under the law of its place of
incorporation.

	1.2	 	The Purchaser has full corporate power and authority to enter into this Agreement, and each
document in connection with this Agreement to be executed by it at or before Completion, and
perform its obligations under this Agreement, to carry out the transactions contemplated by
this Agreement, and to own its property and assets and carry on its business.

	1.3	 	The entry into and performance of this Agreement has been properly authorised by all
necessary corporate action of the Purchaser.

	1.4	 	This Agreement and each document in connection with this Agreement to be executed by the
Purchaser at or before Completion constitute legal, valid and binding obligations of the
Purchaser, enforceable against the Purchaser in accordance with their terms, except that:

	 	(1)	 	its enforcement is subject to any necessary stamping or registration;
	 
	 	(2)	 	its enforceability may be limited by applicable bankruptcy, insolvency,
reorganisation, moratorium or similar laws affecting the enforcement of creditors’
rights generally; and
	 
	 	(3)	 	its enforceability is subject to the principles of equity (regardless of
whether its enforcement is considered in a proceeding in equity or at law), including
the possible unavailability of specific performance, injunctive relief or any other
equitable remedy.

	1.5	 	The entry into and performance of this Agreement and each transaction contemplated by this
Agreement did not and will not (with or without the giving of notice or the lapse of time or
both):

	 	(1)	 	contravene or conflict with or result in a breach of or default under:

	 	(a)	 	a law or treaty or a judgment, ruling, order or decree of a
Government Agency binding on the Purchaser;
	 
	 	(b)	 	any Authorisation;
	 
	 	(c)	 	the Purchaser’s constitution or other constituent documents;
or
	 
	 	(d)	 	any other contract or commitment which is binding on the
Purchaser;

	 	(2)	 	permit the termination of any Authorisation, or any contract or commitment;
or
	 
	 	(3)	 	require an Authorisation or any other consent, approval, authorisation,
qualification, acknowledgment or license of a third party.

	1.6	 	The Purchaser:

	 	(1)	 	is not wound up, no resolution for its winding up has been passed and no
meeting of members or creditors has been convened for that purpose;

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	 	(2)	 	is not the subject of a winding up application which has been made to a
court, and no event has occurred which would entitle any person to apply to a court to
wind up the Purchaser;
	 
	 	(3)	 	has not proposed or taken any steps to implement a scheme of arrangement or
other compromise or arrangement with any of its creditors;
	 
	 	(4)	 	is not the recipient of a demand under section 459E of the Corporations Act
or any corresponding or analogous provision governing the Purchaser in a jurisdiction
outside Australia;
	 
	 	(5)	 	is not in receivership and none of its assets are in the possession of or
under the control of a mortgagee or chargee;
	 
	 	(6)	 	is not subject to administration under Part 5.3 of the Corporations Act or
any corresponding or analogous provision governing the Purchaser in a jurisdiction
outside Australia; or
	 
	 	(7)	 	is not insolvent (as defined in section 95A of the Corporations Act or any
corresponding or analogous provision governing the Purchaser in a jurisdiction outside
Australia).

	1.7	 	No property or assets of the Purchaser have been seized in the course of a dispute, or by way
of distress, execution or similar process. No distress, execution or other similar order or
process has been levied on any of the property or assets of the Purchaser.

	1.8	 	The Purchaser has not received from ASIC or any corresponding or analogous Governmental
Agency in a jurisdiction outside Australia any notice warning of possible cancellation of
registration of the Purchaser.

	1.9	 	No legal proceedings, arbitration, mediation or other dispute resolution process is taking
place, pending or threatened, the outcome of which is likely to have a material and adverse
effect on the ability of the Purchaser to perform its obligations under this Agreement.

1.10 The Purchaser is not entering into this Agreement as trustee of any trust or settlement.

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Schedule 4 — Purchaser Guarantor Warranties

Clause 1.1(105)

	1.1	 	The Purchaser Guarantor is duly incorporated and validly exists under the law of its place of
incorporation.

	1.2	 	The Purchaser Guarantor has full corporate power and authority to enter into this Agreement
and perform its obligations under this Agreement, to carry out the transactions contemplated
by this Agreement, and to own its property and assets and carry on its business.

	1.3	 	The entry into and performance of this Agreement has been properly authorised by all
necessary corporate action of the Purchaser Guarantor.

	1.4	 	This Agreement constitutes a valid and binding obligation of the Purchaser Guarantor,
enforceable against the Purchaser Guarantor in accordance with its terms, except that:

	 	(1)	 	its enforcement is subject to any necessary stamping or registration;
	 
	 	(2)	 	its enforceability may be limited by applicable bankruptcy, insolvency,
reorganisation, moratorium or similar laws affecting the enforcement of creditors’
rights generally; and
	 
	 	(3)	 	its enforceability is subject to the principles of equity (regardless of
whether its enforcement is considered in a proceeding in equity or at law), including
the possible unavailability of specific performance, injunctive relief or any other
equitable remedy.

	1.5	 	The entry into and performance of this Agreement and each transaction contemplated by this
Agreement did not and will not (with or without the giving of notice or the lapse of time or
both):

	 	(1)	 	contravene or conflict with or result in a breach of or default under:

	 	(a)	 	a law or treaty or a judgment, ruling, order or decree of a
Governmental Agency binding on the Purchaser Guarantor;
	 
	 	(b)	 	any Authorisation;
	 
	 	(c)	 	the Purchaser Guarantor’s constitution or other constituent
documents; or
	 
	 	(d)	 	any other contract or commitment which is binding on the
Purchaser Guarantor;

	 	(2)	 	permit the termination of any Authorisation, or any contract or commitment;
or

	 	(3)	 	require an Authorisation or any other consent, approval, authorisation,
qualification, acknowledgment or license of a third party.

	1.6	 	The Purchaser Guarantor:

	 	(1)	 	is not wound up, no resolution for its winding up has been passed and no
meeting of members or creditors has been convened for that purpose;
	 
	 	(2)	 	is not the subject of a winding up application which has been made to a
court, and no event has occurred which would entitle any person to apply to a court to
wind up the Purchaser Guarantor;

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	 	(3)	 	has not proposed or taken any steps to implement a scheme of arrangement or
other compromise or arrangement with any of its creditors;
	 
	 	(4)	 	is not the recipient of a demand under section 459E of the Corporations Act
or any corresponding or analogous provision governing the Purchaser Guarantor in a
jurisdiction outside Australia;
	 
	 	(5)	 	is not in receivership and none of its assets are in the possession of or
under the control of a mortgagee or chargee;
	 
	 	(6)	 	is not subject to administration under Part 5.3 of the Corporations Act or
any corresponding or analogous provision governing the Purchaser Guarantor in a
jurisdiction outside Australia; or
	 
	 	(7)	 	is not insolvent (as defined in section 95A of the Corporations Act) or any
corresponding or analogous provision governing the Purchaser Guarantor in a
jurisdiction outside of Australia.

	1.7	 	No property or assets of the Purchaser Guarantor have been seized in the course of a dispute,
or by way of distress, execution or similar process. No distress, execution or other similar
order or process has been levied on any of the property or assets of the Purchaser Guarantor.

	1.8	 	The Purchaser Guarantor has not received from ASIC or any corresponding or analogous
Governmental Agency in a jurisdiction outside Australia any notice warning of possible
cancellation of registration of the Purchaser Guarantor.

	1.9	 	No legal proceedings, arbitration, mediation or other dispute resolution process is taking
place, pending or threatened, the outcome of which is likely to have a material and adverse
effect on the ability of the Purchaser Guarantor to perform its obligations under this
Agreement.

	1.10	 	The Purchaser Guarantor is not entering into this Agreement as trustee of any trust or
settlement.

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Schedule 5 — EBITDA

Clause 1.1(53)

Part A

EBITDA will specifically include the following items:

	 	(1)	 	revenue less cost of goods sold (COG) and operating expenses for Rheochem
Ltd;
	 
	 	(2)	 	revenue less COG and operating expenses for Rheochem Pacific Ltd;
	 
	 	(3)	 	revenue less COG and operating expenses for Rheochem India Pvt Ltd; and
	 
	 	(4)	 	revenue less COG and operating expenses for PT Rheochem Indonesia.

Part B

EBITDA will specifically exclude the following items:

	 	(1)	 	share based amortisation;
	 
	 	(2)	 	the amount by which the insurance premiums for the Group in respect of the
period following Completion exceed the insurance premiums for the Group in the year
prior to Completion;
	 
	 	(3)	 	the amount by which the insurance premiums for the Group in respect of the
period following Completion are less than the insurance premiums for the Group in the
year prior to Completion;
	 
	 	(4)	 	the amount by which accounting and/or legal fees of the Group increase (as
compared to accounting and/or legal fees incurred in the year prior to Completion) due
to it being part of a group of companies domiciled in the USA;
	 
	 	(5)	 	the amount by which accounting and/or legal fees of the Group decrease (as
compared to accounting and/or legal fees incurred in the year prior to Completion) due
to it being part of a group of companies domiciled in the USA;
	 
	 	(6)	 	additional accounting and legal fees the Group may incur due to it being part
of a group of companies domiciled in the USA;
	 
	 	(7)	 	the cost of wages, superannuation, travel, accommodation and Tax the Group
may incur for or on behalf of an Associate of the Purchaser, in particular those costs
associated with any extra employees seconded by the Group, which exceed $120,000
(being the charges payable to the Seller prior to Completion in respect of Craig
McGuckin);
	 
	 	(8)	 	any bonus or pay rise above the increase in the Consumer Price Index,
Australia for the corresponding period, provided to employees of the Group, other than
bonuses and pay rises contemplated in the transaction documents;
	 
	 	(9)	 	any costs incurred by the Group outside the normal course of business which
are within the Purchaser’s or in the any member of the Group’s control;

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	 	(10)	 	any income or gain of the Group attributable to an event outside the normal
course of business;
	 
	 	(11)	 	any write down of stock which is in a saleable condition, except where such
stock is recorded in the books of the Group at a value in excess of fair value;
	 
	 	(12)	 	any write down of property, plant and equipment, except where such property,
plant and equipment are recorded in the books of the Group at a value in excess of
fair value;
	 
	 	(13)	 	any loss suffered as a result of an insurance policy of the Group which has
been put in place by the Purchaser providing less insurance coverage than under the
insurance policy for the Group prior to Completion;
	 
	 	(14)	 	any foreign exchange gain or loss;
	 
	 	(15)	 	any expenses associated with upgrading any plant and equipment at the Dampier
Premises;
	 
	 	(16)	 	any Loss relating to litigation arising as a result of events occurring after
Completion;
	 
	 	(17)	 	any gain relating to litigation arising as a result of events occurring after
Completion; and
	 
	 	(18)	 	all extraordinary items (as defined under International Financial Reporting
Standards (IFRS)).

Part C

	1	 	The Purchaser shall procure that, by no later than: (i) 30 days after the end of the First
Accounts Period; and (ii) 90 days after the end of the Second Accounts Period, the Purchaser
shall prepare and supply to the Seller the Accounts. The Accounts must be accompanied by a
statement by an officer of the Purchaser stating:

	 	(1)	 	that the Accounts have been prepared in accordance with the provisions of
this Agreement; and
	 
	 	(2)	 	the EBITDA for the Accounts Period and the amount of the First Conditional
Payment or Second Conditional Payment (as applicable).

	2	 	The Seller must provide the Purchaser and the Purchaser’s Accountants with all necessary
assistance and support to prepare the Accounts.
	 
	3	 	The Accounts shall each be prepared:

	 	(1)	 	in the form set out in Part D of this Schedule 5; and
	 
	 	(2)	 	in accordance with the accounting policies, principles and requirements set
out in Part E of this Schedule 5.

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	4	 	The provisions of clauses 9.4 and 9.6 of the Agreement shall apply in respect of the
agreement or determination of the Accounts as if the words “Completion Accounts” in those
clauses were replaced with the word “Accounts” except that, in respect of the First Accounts,
a period of “30 Business Days” in clause 9.4 is replaced with “10 Business Days”.

Part D

Form of Accounts

	 	 	 	 	 	 	 	 	 
	 	 	Six	 	 	 	 
	 	 	months	 	 	12 months	 
	 	 	ended	 	 	ended	 
	 	 	A$000’s	 	 	A$000’s	 
	Continuing operations
	 	 	 	 	 	 	 	 
	Revenue on trading operations
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Revenue
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Cost of sales on trading operations
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Cost of Sales
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Gross profit
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Administrative expenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EBITDA
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Depreciation and amortisation and items excluded from EBITDA
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Operating (loss)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Finance income
	 	 	 	 	 	 	 	 
	Finance expense
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(Loss)/profit before tax
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Income tax credit/(expense)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(Loss)/profit for the period
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attributable to:
	 	 	 	 	 	 	 	 
	Equity holders of the parent
	 	 	 	 	 	 	 	 
	Non-controlling interests
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 

© Norton Rose Australia

 

92

 

Consolidated statement of financial position

	 	 	 	 	 	 	 	 	 
	 	 	Six	 	 	 	 
	 	 	months	 	 	12 months	 
	 	 	A$000’s	 	 	A$000’s	 
	ASSETS
	 	 	 	 	 	 	 	 
	Current Assets
	 	 	 	 	 	 	 	 
	Cash and cash equivalents
	 	 	 	 	 	 	 	 
	Trade and other receivables
	 	 	 	 	 	 	 	 
	Inventories
	 	 	 	 	 	 	 	 
	Other financial assets
	 	 	 	 	 	 	 	 
	Non-interest bearing loans
	 	 	 	 	 	 	 	 
	Interest bearing loans
	 	 	 	 	 	 	 	 
	Current tax assets
	 	 	 	 	 	 	 	 
	Prepayments
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Current Assets
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Non-current Assets
	 	 	 	 	 	 	 	 
	Property, plant and equipment
	 	 	 	 	 	 	 	 
	Other financial assets
	 	 	 	 	 	 	 	 
	Deferred tax assets
	 	 	 	 	 	 	 	 
	Prepayments
	 	 	 	 	 	 	 	 
	Other intangible assets and goodwill
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Non-current Assets
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TOTAL ASSETS
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	LIABILITIES
	 	 	 	 	 	 	 	 
	Current Liabilities
	 	 	 	 	 	 	 	 
	Trade and other payables
	 	 	 	 	 	 	 	 
	Interest-bearing loans and borrowings
	 	 	 	 	 	 	 	 
	Other financial liabilities
	 	 	 	 	 	 	 	 
	Income tax payable
	 	 	 	 	 	 	 	 
	Employee benefits
	 	 	 	 	 	 	 	 
	Provisions
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Current Liabilities
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Non-current Liabilities
	 	 	 	 	 	 	 	 
	Interest-bearing loans and borrowings
	 	 	 	 	 	 	 	 
	Employee benefits
	 	 	 	 	 	 	 	 
	Provisions
	 	 	 	 	 	 	 	 
	Deferred tax liabilities
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Non-current Liabilities
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TOTAL LIABILITIES
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	NET ASSETS
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 

© Norton Rose Australia

 

93

 

Part E

Specific accounting policies to be adopted.

	 	1.	 	Consolidated Income Statement and Consolidated Statement of Financial Position to be
prepared in accordance with IFRS in Australian dollars.

	 
	 	2.	 	EBITDA to be prepared in Australian dollars.

	 
	 	3.	 	Translation of foreign currencies in accordance with IFRS.

	 
	 	4.	 	Consistent application of Group accounting policies in accordance with the principles
applied in respect of the Completion Accounts.

© Norton Rose Australia

 

94

 

Executed as a deed.

	 	 	 

	Executed by Rheochem Plc (ARBN 127 927 495) in
accordance with section 127 of the Corporations Act
2001 (Cth):
	 	 
	 
	 	 
	/s/ Haydn Gardner

	 	/s/ Craig McGuckin
	 

	 	 
	Director

	 	Director
	 
	 	 
	Haydn Gardner

	 	Craig McGuckin
	 
	 	 
	Executed by Newpark Australia Pty Ltd (ACN 149 642 875)
in accordance with section 127 of the Corporations Act
2001 (Cth):
	 	 
	 
	 	 
	/s/ Mark Airola

	 	/s/ William Moss
	 

	 	 
	Director

	 	Director
	 
	 	 
	Mark Airola

	 	William Moss
	 
	 	 
	Executed on behalf of
Newpark Resources, Inc.
(ID# 72-1123385) by the
following authorised
executive officers:
	 	 
	 
	 	 
	/s/ Mark Airola

	 	/s/ William Moss
	 

	 	 
	Corporate Secretary

	 	Vice President, Corporate Strategy and Development
	 
	 	 
	Mark Airola

	 	William Moss

© Norton Rose Australia

 

95

 

Annexure A— Disclosure Letter

Clause 1.1(49)

© Norton Rose Australia

 

i

 

Annexure B— Data Room Index

Clause 1.1(46)

© Norton Rose Australia

 

ii

 

Annexure C— Answers to Purchaser’s Questions

Clause 1.1(50)(b)

© Norton Rose Australia

 

iii

 

Annexure D— Group Financial Statements

Clause 1.1(70)

© Norton Rose Australia

 

iv

 

Annexure E— Agreed Tenders

Clause 1.1(6)

© Norton Rose Australia

 

v

 

Annexure F— Pro-Forma Working Capital Register

Clause 1.1(101)

© Norton Rose Australia

 

vi

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