Document:

CORVU AUSTRALASIA PTY LTD
                                 ACN 050 043 699
                              ("Approved Borrower")

                                       AND

                             CORVU NORTH AMERICA INC
                                (FIN 41-1819469)

                                  and CORVU PIC
                                 (CRN 03096249)

                              ("Security Provider")

                                       AND

                      INTEGRAL BUSINESS FINANCE PTY LIMITED
                                 ACN 007 559 749
                              ("Integral Business")

                                 LOAN AGREEMENT

                                   ABBOTT TOUT
                                   Solicitors
                              Level 42, MLC Centre
                               19-29 Martin Place
                                   SYDNEY 2000

                                     DX: 129
                                 TEL: 9334 8555
                                 FAX: 9334 8585
                                    REF: RHT

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
1.   INTERPRETATION                                                            1

     1.1     Definitions                                                       1

     1.2     Other expressions                                                 6

2.   LOANS                                                                     6

     2.1     Agreement to make Loans                                           6

     2.2     Purpose                                                           6

     2.3     Amount and maturity date of each Loan                             7

3.   CONDITIONS PRECEDENT                                                      7

     3.1     Things to be received by Integral Business                        7

     3.2     Conditions precedent to each Loan                                 8

     3.3     Other conditions precedent                                        9

     3.4     How a copy must be certified                                      9

4.   DRAWDOWN AND INTEREST                                                     9

     4.1     Drawdown                                                          9

     4.2     Interest Periods                                                  9

     4.3     Calculation of interest on Outstanding Amount                    10

     4.4     Payment of interest on Outstanding Amount                        10

     4.5     Default interest                                                 10

     4.6     Interest following judgment                                      10

5.   FEES                                                                     11

     5.1     Establishment Fee                                                11

     5.2     Line Fee                                                         11

     5.3     Fees not refundable                                              11

6.   REPAYMENT                                                                11

     6.1     Repayment                                                        11

     6.2     Early repayment and redrawing                                    11

     6.3     Repayment of excess over Facility Limit                          12

7.   INDEMNITIES AND COSTS AND EXPENSES                                       12

     7.1     Costs and expenses                                               12

     7.2     Indemnity following Event of Default                             12

     7.3     Indemnity for failed drawing                                     12

     7.4     Indemnity for early or late payment                              13

     7.5     Example of loss                                                  13

8.   GENERAL AND FINANCIAL OBLIGATIONS                                        13

     8.1     Positive obligations                                             13

     8.2     Negative obligations                                             14

     8.3     Insurance Obligations                                            15

     8.4     Security Coverage                                                17

     8.5     Valuation                                                        17

     8.6     Advising of defaults                                             17

     8.7     Procedures on Default                                            18

     8.8     Approved Borrower and Security Provider to comply with directions18

9.   REPORTING OBLIGATIONS AND ACCESS                                         18

     9.1     Notices to Integral Business                                     18

     9.2     Other information                                                18

     9.3     Giving access to records and land                                19

     9.4     Financial statements                                             19

10.  REPRESENTATIONS AND WARRANTIES                                           20

     10.1    Representations and warranties                                   20

     10.2    Representations and warranties repeated                          21

     10.3    Representations and warranties modified                          22

11.  PAYMENTS TO INTEGRAL BUSINESS                                            22

     11.1    Payment to be on Business Day                                    22

     11.2    Manner of payment                                                22

     11.3    Deduction or withholding required                                22

12.  DEFAULT                                                                  23

     12.1    Events of Default                                                23

     12.2    Consequences of Event of Default                                 26

13.  INCREASED COSTS                                                          26

14.  ILLEGALITY                                                               26

15.  PRESERVING INTEGRAL BUSINESS'RIGHTS, POWERS AND REMEDIES                 26

     15.1    Preservation                                                     26

     15.2    Moratorium legislation                                           27

     15.3    Reinstating or replacing rights                                  27

     15.4    Effect of release                                                27

     15.5    Indemnities continuing                                           27

16.  ASSIGNMENT                                                               28

     16.1    By Approved Borrower                                             28

     16.2    By Integral Business                                             28

     16.3    Effect of assignment                                             28

17.  NOTICES                                                                  28

18.  MISCELLANEOUS                                                            29

     18.1    No obligation to exercise rights or give consent                 29

     18.2    Consent must be in writing                                       29

     18.3    Notification from Approved Borrower or Security Provider         30

     18.4    Integral Business may set off                                    30

     18.5    Approved Borrower must not set off                               30

     18.6    Applying receipts                                                30

     18.7    Certain notices or demands                                       30

     18.8    Severability                                                     30

     18.9    Entire agreement                                                 31

     18.10   Variation of agreement                                           31

     18.11   Counterparts                                                     31

     18.12   Integral Business may disclose information                       31

     18.13   Governing law and jurisdiction                                   31

<PAGE>

                                 LOAN AGREEMENT

AGREEMENT dated  26th  day of February, 1998

BETWEEN   CORVU AUSTRALASIA PTY LTD ACN 050 043 699 of Level 4, 1 James Place,
          North Sydney NEW 2060 ("Approved Borrower")

AND       CORVU NORTH AMERICA INC (FIN 41-1819469) and CORVU PIC (Company Number
          03096249) C/- Level 4, l James Place, North Sydney NEW 2060
          (collectively and individually "Security Provider")

AND       INTEGRAL BUSINESS FINANCE PTY LIMITED ACN 077 559 749 of Level 3, 75
          Castlereagh Street, Sydney NSW 2000 ("Integral Business")

1.       INTERPRETATION

1.1      Definitions

         In this document:

         'Accounts' includes:

         (a)      profit and loss accounts and balance sheets; and

         (b)      statements, reports and notes attached to, or intended to be
                  read with, any document referred to in paragraph (a),
                  including auditors' reports and directors' reports.

         'Approved Trade Debtor' means a trade debtor approved by Integral
         Business.

         'Approved Trade Debtor Limit' means at any time in respect of an
         Approved Trade Debtor, the maximum amount of money which Integral
         Business is prepared at that time to provide as Loans to the Approved
         Borrower on the security of Designated Debts, as may be varied from
         time to time in the absolute discretion of Integral Business.

         'Australian Accounting Standards' means:

         (a)      accounting standards as defined in section 9 of the
                  Corporations Law; and

         (b)      the requirements of the Corporations Law for the preparation
                  and content of accounts; and

         (c)      generally accepted accounting principles and practices
                  consistently applied in Australia, except principles and
                  practices that are inconsistent with (a) or (b).

         'Authorised Officer' means a person holding or acting in the office of
         director, chief executive or secretary, or whose title includes the
         word `Manager' or `Director'.

         'Availability Period' means the period commencing on the date of this
         document and expiring on the Termination Date, subject to the
         provisions of Clause 6.3.

         'Base Rate' for a particular Interest Period or other period means the
         sum of the Margin and:

         (a)      the average bid rate (expressed as a percentage yield per
                  annum to maturity) (and rounded upwards if necessary to four
                  decimal places) displayed at or about 10.00 a.m. on the first
                  day of the Interest Period on the Reuters Monitor System on
                  the page designated `BBSY' for Bills having a tenor
                  approximately equal to the Interest Period or other period; or

         (b)      if Integral Business reasonably determines that the rate
                  specified in paragraph (a) cannot be readily determined, the
                  rate Integral Business determines is the appropriate
                  equivalent rate having regard to prevailing market conditions.

         'Book Debts' means:

         (a)      book debts including, without limitation, all of the Approved
                  Borrower's or Security Provider's (as the case requires)
                  right, title and interest in the Invoices and the proceeds of
                  collection or realisation of the Invoices;

         (b)      debts other than book debts; and

         (c)      Collection Proceeds,

         but excludes Cash Assets.

         'Business Day' means a day on which banks (as defined in the Banking
         Act 1959 (Cth)) are open for general banking business in Sydney,
         excluding Saturdays and Sundays and public holidays in that place.

         "Cash Assets" means:

         (a)      Collection Proceeds when credited to or paid into the
                  Designated Bank Account;

         (b)      moneys, funds or sums for the time being standing to the
                  credit of the Designated Bank Account;

         (c)      any indebtedness or liability in respect of any credit balance
                  for the time being in the Designated Bank Account of the bank
                  or financial institution where that account is held; and

         (d)      moneys, funds or assets withdrawn from, debited to or paid out
                  of the Designated Bank Account;

         'Collateral Security' means a Guarantee, Security Interest or
         negotiable instrument held or given, whether before or after this
         document is executed, as security for or otherwise in connection with
         the Money Owing.

         "Collection Proceeds" means the proceeds of collection or realisation
         of book and other debts comprising any form of property, including
         without limitation cash, cheques, payment, money or credit orders,
         transfers or transmissions of any kind by any means, bills of exchange
         or promissory notes but excludes the proceeds of collection or
         realisation of the Invoices.

         'Commencement Date' means the date a Loan is first made to or at the
         request of the Approved Borrower.

         'CorVu Group' means the Approved Borrower, each Security Provider and
         any related Corporation to any of the foregoing, and each of them.

         'Designated Bank Account' means each of the accounts specified in
         Schedule 1 and such other accounts of the Approved Borrower or Security
         Provider with a bank or financial institution as nominated by Integral
         Business and notified to the Approved Borrower and Security Provider
         from time to time.

         'Designated Debt' means any debt in respect of an Invoice which is the
         subject of a Drawdown Notice under this document.

         'Drawdown Notice' means the notice given by the Approved Borrower to
         Integral Business in accordance with Clause 4.

         'Event of Default' means each event listed in Clause 12.1.

         'External Administrator' means an administrator, receiver, receiver and
         manager, trustee, provisional liquidator, liquidator, inspector or any
         other person (however described) holding or appointed to an analogous
         office or acting or purporting to act in an analogous capacity.

         'Facility Limit' means A$1,100,000.00 (one million one hundred thousand
         dollars Australian).

         'Facility Rate' means the aggregate of 5.0% per annum and the Base
         Rate.

         'Guarantee' means a guarantee, indemnity, letter of credit, letter of
         comfort or any other obligation (whatever it is called and whatever its
         nature) by which a person is responsible for another person's
         obligation or debt.

         'Interest Payment Date' means:

         (a)      the following dates:

                  Payment No.  Date of Payment  Payment No.  Date of Payment
                  -----------  ---------------  -----------  ---------------
                  1                             7
                  -----------  ---------------  -----------  ---------------
                  2                             8
                  -----------  ---------------  -----------  ---------------
                  3                             9
                  -----------  ---------------  -----------  ---------------
                  4                             10
                  -----------  ---------------  -----------  ---------------
                  5                             11
                  -----------  ---------------  -----------  ---------------
                  6                             12
                  -----------  ---------------  -----------  ---------------

                  and

         (b)      the Termination Date; and

         (c)      after the Termination Date, the last day of each month.

         'Interest Period' means an interest period determined under Clause 4.2.

         'Invoice' means the invoice (which must be in a form acceptable to
         Integral Business) given by either the Approved Borrower or the
         Security Provider to an Approved Trade Debtor in respect of goods or
         services or both supplied by the Approved Borrower or the Security
         Provider (as the case requires) to the Approved Trade Debtor.

         'Invoice Amount' means the total amount payable by an Approved Trade
         Debtor on an Invoice.

         'Loan' means each cash advance made by Integral Business to the
         Approved Borrower under Clause 2.

         'Loan Amount' means in relation to an Invoice, 80% of the Invoice
         Amount for that Invoice.

         'Margin' means 3.0 % per annum.

         'Money Owing' means the amount determined for any day by Integral
         Business to be the aggregate of all money owing or remaining unpaid by
         the Approved Borrower to Integral Business on that day under this
         document, whether the liability is actual or contingent.

         'Outstanding Amount' means the aggregate amount of all outstanding
         Loans less the aggregate of all principal repaid by the Approved
         Borrower under this document, as calculated by Integral Business for
         any day at 5.00 p.m. on that day.

         'Public Authority' means the Crown, a government, a minister of a
         government, a government department, a statutory corporation, or a
         semi-government or judicial entity.

         'Related Party' means:

         (a)      a person related to the Approved Borrower under section 50 of
                  the Corporations Law, and

         (b)      a person providing Collateral Security.

         'Relevant Agreement' means:

         (a)      this document; and

         (b)      a Collateral Security; and

         (c)      an agreement between Integral Business and the Approved
                  Borrower; and

         (d)      a document (including a letter):

                  (i)      that relates to the Money Owing or another Relevant
                           Agreement (other than a letter from the Approved
                           Borrower); or

                  (ii)     that the Approved Borrower and Integral Business
                           agree is a Relevant Agreement; and

         (e)      the Securities.

         'Securities' means:

         (a)      a first registered fixed and floating charge over all the
                  assets and undertaking of the Approved Borrower including a
                  fixed charge over the present and future Book Debts of the
                  Approved Borrower (encompassing its right and interest to
                  proceeds from invoices given to Approved Trade Creditors) and
                  a fixed charge over the trading bank accounts used to receive
                  deposits being the proceeds of goods and or services sold by
                  the Approved Borrower and any of its subsidiaries; and

         (b)      a first registered fixed and floating charge over all the
                  assets and undertaking of CorVu North America Inc (FIN
                  41-1819469) including a fixed charge over the present and
                  future Book Debts of CorVu Corporation (encompassing its right
                  and interest to proceeds from invoices given to Approved Trade
                  Creditors) and a fixed charge over the trading bank accounts
                  used to receive deposits being the proceeds of goods and or
                  services sold by CorVu North America Inc (FIN 41-1819469) and
                  any of its subsidiaries; and

         (c)      a first registered fixed and floating charge over all the
                  assets and undertaking of CorVu PIC (CRN 03096249) including a
                  fixed charge over the present and future Book Debts of CorVu
                  Plc (encompassing its right and interest to proceeds from
                  invoices given to Approved Trade Creditors) and a fixed charge
                  over the trading bank accounts used to receive deposits being
                  the proceeds of goods and or services sold by CorVu PIC (CRN
                  03096249) and any of its subsidiaries; and

         (d)      guarantees from all existing and future subsidiaries of the
                  Approved Borrower and the Security Provider; and

         (e)      covenants that the proceeds of goods and services sold by the
                  Approved Borrower and the Security Provider and any of their
                  subsidiaries are to be deposited into nominated accounts.

         'Security Interest' means a mortgage, charge, lien, pledge,
         hypothecation, encumbrance, assignment or trust of, over or in respect
         of an asset or any other right by way of security (including, without
         limitation, under any agency, hire purchase, title retention, sale and
         repurchase or `flawed asset' or set-off arrangement) of a creditor to
         have its claims satisfied prior to other creditors with or from the
         proceeds of any asset and includes any agreement or document conferring
         such a right.

         'Security Provider' means CorVu North America Inc (FIN 41-1819469) and
         CorVu PIC (CRN 03096249) and each of them.

         'Security Trustee' means P.T. Limited ACN 004 454 666.

         'Subsidiary' has the meaning given to it in section 46 of the
         Corporations Law.

         'Tax' includes a tax, levy, duty or charge (and associated penalty or
         interest) imposed or withheld by a Public Authority. It does not
         include income tax except tax deducted or withheld from a payment (such
         as withholding tax).

         'Termination Date' means the day three hundred and sixty five (365)
         days after the date of this document or any earlier date on which the
         Money Owing becomes payable under this document.

         'Winding Up' includes:

         (a)      dissolution, liquidation, provisional liquidation and
                  bankruptcy; and

         (b)      a procedure which is equivalent or analogous in any
                  jurisdiction.

1.2      Other expressions

         in this document, unless the contrary intention appears:

         (a)      the singular includes the plural and vice versa;

         (b)      other grammatical forms of defined words or expressions have
                  corresponding meanings;

         (c)      a reference to a party to this document includes that party's
                  successors and permitted assigns;

         (d)      a reference to a document or agreement includes that document
                  or agreement as novated, altered or replaced;

         (e)      when two or more persons are named as Approved Borrower:

                  (i)      the term 'Approved Borrower' is a reference to each
                           of them alone and also to any two or more of them
                           together; and

                  (ii)     this document binds them severally and jointly;

         (f)      a reference to any thing includes the whole or any part of
                  that thing and a reference to a group of things or persons
                  includes each thing or person in that group;

         (g)      'dollars' and '$' refer to Australian currency;

         (h)      words implying natural persons include partnerships, bodies
                  corporate, associations and Public Authorities;

         (i)      a reference to any legislation or statutory instrument or
                  regulation is construed in accordance with the Acts
                  Interpretation Act 1901 (Cth) or the equivalent State
                  legislation, as applicable.

2.       LOANS

2.1      Agreement to make Loans

         Integral Business agrees to make multiple cash advances to the Approved
         Borrower on the first day of each Interest Period during the
         Availability Period.

2.2      Purpose

         The purpose of each Loan is to provide the Approved Borrower with
         working capital for its business as disclosed to Integral Business. A
         Loan must not be used for any other purpose.

2.3      Amount and maturity date of each Loan

         (a)      Each Loan must be for an amount not greater than the Loan
                  Amount.

         (b)      No Loan may be made which has a maturity date later than the
                  Termination Date.

3.       CONDITIONS PRECEDENT

3.1      Things to be received by Integral Business

         Integral Business need not make a Loan unless Integral Business
         receives all of the following things at least two Business Days before
         the Commencement Date, and is satisfied in its absolute discretion with
         both their form and substance:

         (a)      a certified copy of the memorandum and articles of association
                  and the certificate of incorporation of the Approved Borrower
                  and the Security Provider;

         (b)      a certified copy of the resolutions or approvals of the board
                  of directors of the Approved Borrower:

                  (i)      approving the Approved Borrower Entering into and
                           executing each Relevant Agreement to which it is a
                           party; and

                  (ii)     authorising an appropriate person or persons to
                           execute or take any action contemplated by this
                           document;

         (c)      a certified copy of the resolutions or approvals of the board
                  of directors of each Security Provider and each relevant
                  Related Party:

                  (i)      approving the entering into and executing each
                           Security to which it is a party; and

                  (ii)     authorising an appropriate person or persons to
                           execute or take any action contemplated by those
                           Securities;

         (d)      specimen signatures of the authorised signatories referred to
                  in Clauses 3.1(b)(ii) and 3.1 (c)(ii);

         (e)      evidence that any Public Authority approvals which are
                  necessary to authorise the transactions contemplated by ]his
                  document have been obtained;

         (f)      the Approved Borrower's and Security Provider's most recent
                  audited Accounts;

         (g)      each of the Securities properly executed and, if applicable,
                  in registrable form, as prepared by Integral Business or its
                  solicitors and containing the terms required by Integral
                  Business;

         (h)      satisfactory replies to all Integral Business's enquiries
                  about the property subject to the Securities;

         (i)      any documents of title to the property subject to the
                  Securities which Integral Business requests;

         (j)      any document ancillary to this document or the Securities
                  which Integral Business reasonably requests;

         (k)      the other information which Integral Business or its
                  solicitors reasonably request about the Approved Borrower, the
                  Securities or any property subject to the Securities; and

         (l)      a trade credit insurance policy satisfactory to Integral
                  Business in respect of the Facility at the cost and expense of
                  the Approved Borrower, with the interest of Integral Business
                  noted on the policy.

3.2      Conditions precedent to each Loan

         Integral Business need not make available any Loan to the Approved
         Borrower unless:

         (a)      it receives all of the following things in connection with the
                  applicable Approved Trade Debtor and that Loan at least five
                  (5) Business Days before the Commencement Date, and is
                  satisfied in its absolute discretion with both their form and
                  substance:

                  (i)      a certified copy of the ledger of the Approved Trade
                           Debtors of each of the Approved Borrower and the
                           Security Provider and the Invoice (but Integral
                           Business may agree (in its absolute discretion) to
                           waive the requirement for the receipt by it of the
                           Invoice before the Commencement Date if once a
                           request is made by it, the Invoice is delivered to it
                           within two (2) days of the request being made);

                  (ii)     evidence that the insurance cover extends to the
                           Approved Trade Debtor's debt to the Approved Borrower
                           or Security Provider, as the case requires.

         (b)      it is satisfied in its discretion that:

                  (i)      the applicable Approved Trade Debtor Limit will not
                           be exceeded by Integral Business providing the Loan;
                           and

                  (ii)     the Approved Borrower has a 'Dynamic Risk Score' from
                           Dunn & Bradstreet (Australia) Pty Limited of 64 or
                           higher;

                  (iii)    the Facility Limit will not be exceeded by Integral
                           Business providing the Loan;

                  (iv)     the Loan, if drawn down, would not and would not be
                           likely in the opinion of Integral Business to cause
                           the Approved Borrower or the Security Provider to
                           breach the undertakings given under Clauses 8.4 (a),
                           (b), (c) or (d); and

                  (v)      no event has occurred which in the opinion of
                           Integral Business may have a material adverse effect
                           on the Approved Borrower or the Security Provider; or

         (c)      it is satisfied with the trade credit arrangements and
                  documents used or to be used by the Approved Borrower and the
                  Security Provider in connection with the Loan and the
                  applicable Approved Trade Debtor.

3.3      Other conditions precedent

         Integral Business need not make available any Loan unless it is
         satisfied that:

         (a)      the representations and warranties made and given by the
                  Approved Borrower and the Security Provider in Clause 10 are
                  correct and not misleading by omission or otherwise, as if
                  they had been made and given on the Commencement Date about
                  the facts existing at that time;

         (b)      no Event of Default has occurred (that has not been remedied
                  or waived) nor has any event occurred which with the giving of
                  notice, lapse of time or any determination could constitute an
                  Event of Default;

         (c)      Integral Business has received the fees due to it under Clause
                  5; and

         (d)      Integral Business has obtained an amount of money equivalent
                  to the amount of the Loan pursuant to its funding
                  arrangements.

3.4      How a copy must be certified

         Where Clause 3.1 requires a copy of a document to be certified, the
         certification must:

         (a)      be by a director or secretary of the relevant company;

         (b)      confirm that the copy is a true and complete copy;

         (c)      confirm that the document has not been amended or revoked; and

         (d)      unless Integral Business otherwise agrees, be given no earlier
                  than the date of this document.

4.       DRAWDOWN AND INTEREST

4.1      Drawdown

         Subject to this document, the Approved Borrower may draw down the first
         Loan on any Business Day during the Availability Period and may draw
         down subsequent Loans on any Interest Payment Date, in each case by
         giving Integral Business at least 5 Business Days' notice of its
         intention to draw down in the form set out in Schedule 2.

4.2      Interest Periods

         (a)      Interest for a Loan is calculated by reference to successive
                  Interest Periods. The first Interest Period for that Loan
                  starts on this Commencement Date for that Loan. Each other
                  Interest Period starts on the day after the last day of the
                  preceding Interest Period. Interest shall be payable in
                  arrears on the day three (3) days prior to the last day of
                  each Interest Period.

         (b)      The duration of all of the Interest Periods for a Loan will be
                  one (1) month.

                  However, after the Termination Date or the occurrence of an
                  Event of Default, the term of each Interest Period may be
                  determined by Integral Business in its absolute discretion. If
                  Integral Business fails to make a determination, the term of
                  any new Interest Period will be seven days unless Integral
                  Business otherwise agrees.

         (c)      Integral Business may, without the consent of the Approved
                  Borrower, adjust the term of any Interest Period to ensure
                  that:

                  (i)      the first and last days of the Interest Period are
                           Business Days; and

                  (ii)     the Interest Period does not end after the
                           Termination Date.

4.3      Calculation of interest on Outstanding Amount

         Interest accrues daily on each Outstanding Amount at the Facility Rate
         reducing to the Base Rate if interest is paid when due and there is no
         subsisting Event of Default. Interest is calculated on a 365 day year
         and the number of days elapsed since the Commencement Date or the last
         date (as the case may be) for the applicable Loan.

4.4      Payment of interest on Outstanding Amount

         The Approved Borrower must pay to Integral Business all accrued but
         unpaid interest on each Outstanding Amount in arrears on each Interest
         Payment Date for that Loan until the Money Owing in respect of that
         Loan has been fully paid.

5.5      Default interest

         If the Approved Borrower does not pay any amount payable under this
         document (`Unpaid Amount') on the day on which it is due and as
         required by Clause 12.2:

         (a)      the Approved Borrower must pay on demand interest on the
                  Unpaid Amount at the Facility Rate for each day the Unpaid
                  Amount remains unpaid and based on a 365 day year and an
                  Interest Period of 30 days; and

         (b)      any interest under paragraph (a) which has not been paid is
                  capitalised on each Interest Payment Date (or such other dates
                  as Integral Business determines). It then bears interest
                  itself under this Clause at the Facility Rate.

5.6      Interest following judgment

         If the Approved Borrower's liability under this document is the subject
         of a judgment or order:

         (a)      the Approved Borrower must pay interest to Integral Business
                  at the higher of the rate payable under that judgment or order
                  and the Facility Rate;

         (b)      the obligation to pay interest under this Clause is an
                  obligation separate from the judgment or order and will apply
                  despite the making of the judgment or order; and

         (c)      the interest which accrues under this Clause may be
                  capitalised on each Interest Payment Date (or such other dates
                  as Integral Business determines). It then bears interest
                  itself under this Clause at the Facility Rate.

5.       FEES

5.1      Establishment Fee

         The Approved Borrower must pay an establishment fee of $11,000.00 (and
         disbursements incurred by Integral Business' legal representatives in
         the preparation, signature and registration of this deed arid ancillary
         documents) to Integral Business on or before the first Commencement
         I)ate under this document.

5.2      Line Fee

         The Approved Borrower must pay to Integral Business a line fee
         calculated on a daily basis on the amount of the Facility Limit on each
         day, at the rate of one point two five percent (1.25%) per annum. The
         line fee applies whether or not a Loan has been drawn down. The first
         line fee payment must t)e made on the date of this document. Subsequent
         line fees must be paid in advance quarterly thereafter for the duration
         of the Facility.

5.2      Fees not refundable

         None of the fees referred to in this Clause is refundable or
         rebateable.

6.       REPAYMENT

6.1      Repayment

         The Approved Borrower must pay the Money Owing in full to Integral
         Business on the Termination Date, unless required earlier under Clauses
         6.3 or 12.2.

6.2      Early repayment and redrawing

         The Approved Borrower may repay all or part of a Loan before the
         Repayment Date for that Loan only if:

         (a)      the Approved Borrower gives Integral Business at least 5
                  Business Days' notice in writing that it intends to repay, and
                  specifies the amount of the repayment and the date for
                  repayment.
                  That date must be the first day of the next Interest Period;

         (b)      it. repays the Loan in full, or the amount the Approved
                  Borrower wants to pay is:

                  (i)      at least $20,000; and

                  (ii)     a whole number multiple of $10,000;

         (c)      the Approved Borrower pays on the day specified in the notice.

         If the Approved Borrower gives a notice contemplated by paragraph (a),
         the Approved Borrower must make the payment specified in that notice
         and must not revoke or purport to revoke that notice. A repayment made
         under this Clause 6.2 does not reduce the Facility Limit and any amount
         so repaid is available to be redrawn as a Loan subject to the terms of
         this document.

6.3      Repayment of excess over Facility Limit

         The Approved Borrower must upon demand in writing by Integral Business
         repay to Integral Business the amount by which the Outstanding Amount
         exceeds the Facility Limit at any time.

7.       INDEMNITIES AND COSTS AND EXPENSES

7.1      Costs and expenses

         The Approved Borrower indemnities Integral Business against, and must
         pay on demand to Integral Business, all Taxes, costs and expenses
         (including, but not limited to, legal costs and expenses on a full
         indemnity basis) which Integral Business pays, or is liable to pay, in
         connection with:

         (a)      a Relevant Agreement, or negotiating, preparing, completing,
                  registering or stamping a Relevant Agreement; or

         (b)      obtaining payment of the Money Owing; or

         (c)      protecting, enforcing or exercising a right, power or remedy
                  of Integral Business or a receiver or an attorney appointed
                  under a Relevant Agreement; or

         (d)      an Event of Default; or

         (e)      obtaining advice (including, but not limited to, legal advice)
                  from a professional person or consultant about any matter of
                  concern to Integral Business in connection with a Relevant
                  Agreement; or

         (f)      Integral Business providing financial accommodation to or at
                  the request of the Approved Borrower; or

         (g)      a receipt or payment of money under, or a transaction
                  contemplated by, a Relevant Agreement,

         whether or not a Loan is drawn or Integral Business's obligations are
         cancelled.

7.2      Indemnity following Event of Default

         The Approved Borrower indemnities Integral Business against any loss,
         foregone profit or expense Integral Business incurs or suffers as et
         result of the occurrence of an Event of Default.

7.3      Indemnity for failed drawing

         The Approved Borrower indemnities Integral Business against any loss,
         foregone profit or expense that Integral Business incurs or suffer,,;
         as a result of a drawdown not proceeding for any reason (except default
         by Integral Business) following the issue of a drawdown notice under
         Clause 4.

7.4      Indemnity for early or late payment

         The Approved Borrower indemnities Integral Business against any loss,
         foregone profit or expense Integral Business incurs or suffers as a
         result of the Money Owing or any part of the Money Owing:

         (a)      being paid or repaid to Integral Business before the
                  Termination Date; or

         (b)      being paid or repaid to Integral Business after the date on
                  which it is due; or

         (c)      becoming payable to Integral Business early as a result of an
                  Event of Default.

7.5      Example of loss

         The indemnity in Clause 7.4 includes loss, foregone profit and expense
         incurred or suffered:

         (a)      in connection with Integral Business:

                  (i)      changing, rearranging or ending any financial
                           arrangements entered into by it in connection with
                           the Money Owing (even if the financial arrangements
                           were entered into for a large pool of funds); or

                  (ii)     redeploying or reinvesting the money paid or repaid
                           to Integral Business; and

         (b)      because Integral Business has lost the benefit of the
                  agreement that the Money Owing should be at a fixed rate or
                  outstanding for a fixed time or both. In this case, the amount
                  of the loss, foregone profit and expense is to be determined
                  by comparison with an available replacement loan at the time
                  of the payment or repayment.

8.       GENERAL AND FINANCIAL OBLIGATIONS

8.1      Positive obligations

         From the date of this document until the Money Owing is paid in full
         the Approved Borrower and the Security Provider must:

         (a)      carry on its business in a proper and efficient way and
                  obtain, renew and maintain all licences, consents and
                  approvals advisable in connection with the Approved Borrower's
                  or Security Provider's business, as the case requires;

         (b)      maintain proper and adequate books and records in accordance
                  with applicable accounting standards;

         (c)      pay when due the Taxes assessed, levied or imposed on the
                  Approved Borrower or Security Provider (as the case requires)
                  or on assets held by it in any capacity;

         (d)      comply with the terms of each lease and mater al contract to
                  which it is a party;

         (e)      comply with all laws and with the mandatory requirements of
                  any Public Authority;

         (f)      do everything necessary to ensure that no Event of Default
                  occurs;

         (g)      ensure that no Loan made in connection with an Approved Trade
                  Debtor exceeds the Approved Trade Debtor Limit for that
                  Approved Trade Debtor; and

         (h)      promptly give notice to Integral Business of the occurrence of
                  any dispute in connection with an Approved Trade Debtor or any
                  event which would or would be likely to have a material
                  adverse effect on the business or financial condition of an
                  Approved Trade Debtor of which the Approved Borrower or the
                  Security Provider (as the case requires) is aware; and

         (i)      keep or cause to be kept proper books of account, in which it
                  will make true and perfect entries of all dealings and
                  transactions now or in the future conducted by it, including,
                  in respect of its business; and .

         (j)      credit or pay all Collection Proceeds immediately following
                  receipt by the Approved Borrower or the Security Provider (as
                  the case requires), or cause the Collection Proceeds to be
                  credited or paid directly, to or into the Designated Bank
                  Account, except where Integral Business has previously
                  directed or consented to a contrary arrangement.

8.2      Negative obligations

         The Approved Borrower and the Security Provider must not, without
         Integral Business's consent:

         (a)      materially change the nature of its business from the way it
                  is at the Commencement Date; or

         (b)      allow anything to be done to lessen Integral Business's
                  rights, powers or remedies under a Relevant Agreement; or

         (c)      provide financial accommodation to or at the request of a
                  Related Party or any person who would be a `related party' of
                  the Approved Borrower under section 243F of the Corporations
                  Law (as if that section applies to all companies and not just
                  public companies); or

         (d)      declare or pay a dividend if:

                  (i)      it would have a material adverse effect on the
                           ability of the Approved Borrower or the Security
                           Provider, as the case requires to meet its
                           obligations under a Relevant Agreement; or

                  (ii)     an Event of Default has occurred and has not been
                           remedied; or

         (e)      permit a Security Interest to affect any of the property or
                  assets of the Approved Borrower or the Security Provider, as
                  the case requires, except in favour of Integral Business; or

         (f)      acquire or dispose of an asset, or incur a liability, except
                  in the ordinary course of the Approved Borrower's or the
                  Security Provider's ( as the case requires) ordinary business
                  and on `arm's length' terms; or

         (g)      dispose of any of its book debts, monetary claims or revenue,
                  except to Integral Business.

8.3      Insurance Obligations

         (a)      Positive obligations

                  The Approved Borrower and the Security Provider must:

                  (i)      maintain, with underwriters and on terms acceptable
                           to Integral Business:

                           (A)      insurance over each Designated Debt for such
                                    amount as Integral Business specified
                                    against the risks Integral Business
                                    specifies;

                           (B)      worker's compensation, public risk, business
                                    interruption, loss of rent insurance and the
                                    other insurance which a prudent person would
                                    have if involved in a business similar to
                                    the Approved Borrower's or the Security
                                    Provider's, as the case requires; and

                           (C)      the other insurance which Integral Business
                                    specifies;

                  (ii)     ensure that this insurance:

                           (A)      has the interest of Integral Business as
                                    chargee or mortgagee endorsed on the policy;
                                    or

                           (B)      if Integral Business directs, is in both the
                                    names of the Approved Borrower or the
                                    Security Provider (as the case requires) and
                                    Integral Business for their respective
                                    rights and interests;

                           and, in the case of insurance in respect of
                           Designated Debts, has Integral Business and the
                           Security Trustee named as loss payee.

                  (iii)    deliver to Integral Business:

                           (A)      the insurance policies relating to this
                                    insurance (`Insurance Policies'); and

                           (B)      all alterations and additions to the
                                    Insurance Policies, immediately after they
                                    are issued; and

                  (iv)     on request, give Integral Business Certificates of
                           currency for the Insurance Policies;

                  (v)      punctually pay the sums (including stamp duty)
                           necessary to maintain every Insurance Policy arid
                           give Integral Business promptly on request the
                           receipt for this premium sum paid; and

                  (vi)     notify Integral Business immediately of anything
                           which might give rise to a claim or right to claim
                           under an Insurance Policy.

         (b)      Negative obligations

                  The Approved Borrower and the Security Provider must not:

                  (i)      do or allow anything to be done which might cause an
                           Insurance Policy to be prejudiced; or

                  (ii)     without the consent of Integral Business, take steps
                           to bring about a material change to the cover under
                           an Insurance Policy; or

                  (iii)    implement insurance other than as specified in Clause
                           8.3(a); or

                  (iv)     make, enforce, settle or compromise a claim or do
                           anything inconsistent with the powers of Integral
                           Business under Clause 8.3(c).

         (c)      Insurance claims

                  Integral Business alone may:

                  (i)      make, enforce, settle and compromise insurance or
                           compensation claims in connection with any property
                           which is the subject of a Security (including without
                           limitation any Designated Debt); and

                  (ii)     sue for, recover, receive and give discharges for
                           money payable in connection with the Insurance
                           Policies.

         (d)      Insurance proceeds

                  (i)      Integral Business may apply money payable under an
                           Insurance Policy either:

                           (A)      in or towards payment of the Money Owing,
                                    whether due or not; or

                           (B)      in replacing, rebuilding or repairing, under
                                    the supervision of Integral Business, or
                                    Integral Business's builder or architect,
                                    the property destroyed or damaged.

                  (ii)     If the Approved Borrower or the Security Provider (
                           as the case requires) receives money payable under an
                           Insurance Policy before all the Money Owing has been
                           repaid and this document comes to an end, the
                           Approved Borrower or the Security Provider (as the
                           case requires) must pay it to Integral Business
                           immediately.

         (e)      Insurance cover for Debts

                  The Approved Borrower or the Security Provider (as the case
                  requires) must on demand by Integral Business irrevocably
                  direct the insurer in respect of an Insurance Policy for
                  Designated Debts to pay all money payable under any such
                  policy direct to the Designated Bank Account, or as Integral
                  Business otherwise specifies from time to time.

8.4      Security Coverage

         The Approved Borrower and the Security Provider undertakes to Integral
         Business that:

         (a)      where the Securities do not include a real property mortgage
                  in favour of Integral Business, the Outstanding Amount will
                  not at any time exceed 80% of the aggregate Face Value of all
                  outstanding Designated Debts from Approved Trade Debtors held
                  by Integral Business;

         (b)      subject to paragraph (c), where the Securities include a real
                  property mortgage given in favour of Integral Business, the
                  Outstanding Amount will not at any time exceed the amount
                  which is the aggregate of:

                  (i)      75% of the aggregate Face Value of all outstanding
                           Designated Debts from Approved Trade Debtors held by
                           Integral Business, plus

                  (ii)     67% of the Agreed Value of the real property
                           mortgaged in favour of Integral Business;

         (c)      where the Securities include a real property mortgage given in
                  favour of Integral Business, that amount which is 75% of the
                  Face Value of all outstanding Designated Debts from Approved
                  Trade Debtors held by Integral Business will be not less than
                  70% of the Outstanding Amount; and

         (d)      the Approved Borrower and the Security Provider will ensure
                  that at all times sufficient outstanding Designated Debts from
                  Approved Trade Debtors are held by Integral Business to ensure
                  that no breach of paragraphs (a), (b) or (c) of this clause
                  ever occurs.

8.5      Valuation

         Integral Business may, in its absolute discretion, at any time appoint
         and instruct a valuer to provide a valuation of all or part of the
         Property.

         The Approved Borrower indemnities Integral Business against, and must
         pay on demand to Integral Business, all costs and expenses which
         Integral Business pays, or is liable to pay, in connection with
         obtaining valuations under this Clause.

8.6      Advising of defaults

         The Approved Borrower and the Security Provider must promptly give
         notice to Integral Business upon becoming aware of:

         (a)      the failure by an Approved Trade Debtor to pay any moneys due
                  under an Invoice the subject of a Designated Debt; or

         (b)      the occurrence of any other event which would be likely to
                  cause (a) to happen.

         The events referred to in (a) and (b) are called "Non-Payment Events".

8.7      Procedures on Default

         The Approved Borrower and the Security Provider must take such action
         following the occurrence of a Non-Payment Event that Integral Business
         requires it to take so as to:

         (a)      cause that Non-Payment Event to be remedied;

         (b)      recover the money the subject of the Non-Payment Event; and

         (c)      protect and preserve all of the rights of Integral Business in
                  respect of any applicable Invoice or Designated Debt.

8.8      Approved Borrower and Security Provider to comply with directions

         Integral Business may (but is not obliged to) give directions and
         instructions to the Approved Borrower or the Security Provider (as the
         case requires) as to:

         (a)      the action to be taken pursuant to Clause 8.7;

         (b)      any other matter which Integral Business (acting reasonably)
                  believes may affect its rights under this document or the
                  Securities,

         and the Approved Borrower or the Security Provider (as the case
         requires) must comply with any such directions and instructions.

9.       REPORTING OBLIGATIONS AND ACCESS

9.1      Notices to Integral Business

         The Approved Borrower or the Security Provider (as the case requires)
         must notify Integral Business as soon as it becomes aware of:

         (a)      an Event of Default or any other circumstance which could
                  become an Event of Default which with the giving of notice,
                  lapse of time or any determination could constitute an Event
                  of Default; or

         (b)      a representation or warranty in Clause 10, or in another
                  Relevant Agreement, becoming false or misleading (giving full
                  details); or

         (c)      the Approved Borrower or the Security Provide, acquiring or
                  intending to acquire a Subsidiary.

9.2      Other information

         The Approved Borrower and the Security Provider must:

         (a)      give Integral Business copies of:

                  (i)      its consolidated audited annual Accounts and those of
                           its Subsidiaries as soon as possible after its annual
                           balance date (and, at the latest, 120 days after that
                           date);

                  (ii)     its consolidated semi-annual Accounts and those of
                           its Subsidiaries as soon as possible after six months
                           expires after its annual balance date (and, at the
                           latest, 90 days after that six months expires);

                  (iii)    monthly management accounts including whatever
                           information Integral Business requires (in its
                           absolute discretion) within 30 days after the end of
                           each month;

                  (iv)     monthly cashflow statements profit and loss accounts
                           and balance sheets and projections by geographic
                           location and business division within 30 days after
                           the end of each month; and

                  (v)      aged debtors reports in the form and containing the
                           information required by Integral Business within 20
                           days after the end of each month;

         (b)      give Integral Business copies of the reports, accounts,
                  notices and circulars which the Approved Borrower or the
                  Security Provider (as the case requires) issues to its
                  members, as soon as they are issued;

         (c)      give Integral Business, in writing, promptly on request,
                  whatever other information it requires;

         (d)      as and when required by Integral Business, furnish Integral
                  Business with a statutory declaration made by two of its
                  director stating to the best of the knowledge of such
                  directors whether or not an Event of Default has occurred and,
                  if it has, setting out the details and the steps (if any)
                  taken to remedy or cure the same; and

         (e)      make available for inspection by Integral Business or any
                  person authorised by it, during normal business hours and upon
                  reasonable notice all books, board papers, board minutes and
                  records maintained by it under or for the purposes of this
                  document including, without limitation, all Invoices and other
                  documents in connection with Approved Trade Debtors.

9.3      Giving access to records and land

         The Approved Borrower and the Security Provider must:

         (a)      ensure that its business and financial records arid those of
                  its Subsidiaries are available for inspection at reasonable
                  times by Integral Business and persons acting on Integral
                  Business's behalf; and

         (b)      allow Integral Business and persons acting on Integral
                  Business's behalf to inspect and to take copies of or extracts
                  from it and its Subsidiaries' business and financial records
                  and give reasonable assistance to them; and

         (c)      allow, or obtain for Integral Business and persons acting on
                  Integral Business's behalf, full access at all times to any
                  land or building occupied by it or its Subsidiaries.

9.4      Financial statements

         All financial statements given to Integral Business must be:

         (a)      prepared and, if relevant, audited in accordance with
                  Australian Accounting Standards; and

         (b)      certified by two directors of the relevant company as an
                  accurate and complete statement of the financial position of
                  that company.

10.      REPRESENTATIONS AND WARRANTIES

10.1     Representations and warranties

         The Approved Borrower and the Security Provider each represent and
         warrant to Integral Business that:

         (a)      the Approved Borrower, each Subsidiary of the Approved
                  Borrower and each Related Party that is a corporation was
                  properly incorporated and validly exists;

         (b)      the Approved Borrower and each Related Party has the power to
                  enter into each Relevant Agreement to which it is a party and
                  to carry out any transaction or obligation contemplated by it;

         (c)      all necessary action has been taken to make each Relevant
                  Agreement to which it is a party valid and binding on the
                  Approved Borrower or the Security Provider (as the case
                  requires) and to enable the Approved Borrower and the Security
                  Provider (as the case requires) to carry out any transaction
                  or obligation contemplated by them;

         (d)      the Approved Borrower and the Related Parties have observed
                  and performed the requirements of all laws, documents and
                  arrangements, where failure to do so may have a material
                  adverse effect on the Approved Borrower or a Related Party;

         (e)      executing and performing this document and the other Relevant
                  Agreements to which the Approved Borrower or a Related Party
                  is a party does not:

                  (i)      conflict with any document or arrangement that binds
                           the Approved Borrower or a Related Party; or

                  (ii)     result in a Security Interest (other than under a
                           Relevant Agreement) being created on, or a charge
                           crystallising over, an asset of the Approved Borrower
                           or a Related Party;

         (f)      neither the Approved Borrower nor any Relevant Party is a
                  trustee of any trust or settlement;

         (g)      the assets of the Approved Borrower and Related Parties are
                  free of any Security Interest other than the Collateral
                  Securities;

         (h)      no Event of Default has occurred;

         (i)      no other circumstance exists which could become an Event of
                  Default if a notice is given, a period of time lapses or
                  another requirement is fulfilled;

         (j)      the Accounts of the Approved Borrower and the :Security
                  Provider and their Subsidiaries which have been given to
                  Integral Business:

                  (i)      are an accurate statement of their respective
                           financial positions for the period ending on the date
                           to which they are prepared;

                  (ii)     disclose all actual and contingent liabilities; and

                  (iii)    have been prepared in accordance with Australian
                           Accounting Standards, except for any departures from
                           those standards which are disclosed in the Accounts;

         (k)      there has been no change in the financial position of the
                  Approved Borrower, the Security Provider or their Subsidiaries
                  since the date to which the last Accounts given to Integral
                  Business were prepared, which could have a material adverse
                  effect on them or their Subsidiaries;

         (1)      all information provided to Integral Business by or on behalf
                  of the Approved Borrower or a Related Party is accurate and
                  not misleading by omission or otherwise (including, but not
                  limited to, information in a financial statement);

         (m)      all information contained in the Drawdown Notice is correct
                  and accurate;

         (n)      neither the Approved Borrower nor any Related Party has
                  entered into a Relevant Agreement because of any promise,
                  representation, statement or information given or offered by
                  or on behalf of Integral Business, even if in answer to an
                  enquiry by or for the Approved Borrower or Related Party;

         (o)      the Approved Borrower and each Related Party has relied on its
                  own investigations and enquiries regarding the nature of the
                  transactions contemplated by the Relevant Agreements and has
                  not relied on any information, advice or opinion (including
                  information, advice or opinions regarding interest rates or
                  currency exchanges) given or offered by or on behalf of
                  Integral Business, even if in answer to any enquiry by or for
                  the Approved Borrower or Related Party; and

         (p)      there is no dispute between the Approved Borrower or the
                  Security Provider (as the case requires) and an Approved Trade
                  Debtor in respect of an Invoice or Designated Debt that
                  relates to the supply of goods or services by the Approved
                  Borrower or the Security Provider (as the case requires) to
                  the Approved Trade Debtor, when the applicable Designated Debt
                  is endorsed in favour of Integral Business; and

         (q)      the Approved Borrower and the Security Provider are solvent
                  and there are no grounds to suspect that, on execution of each
                  Relevant Agreement to which the Approved Borrower is a party,
                  the Approved Borrower or the Security Provider (as the case
                  requires) will not be able to pay all its debts as and when
                  they become due and payable; and

         (r)      no Approved Trade Debtor is resident or incorporated in
                  Tasmania.

10.2     Representations and warranties repeated

         The representations and warranties in this Clause are repeated on the
         Commencement Date and on the last day of each Interest Period:

         (a)      with reference to the facts and circumstances at the time; and

         (b)      reading the Accounts referred to in Clause 10.1(j) as a
                  reference to the most recent financial statements given to
                  Integral Business under Clause 9.2.

10.3     Representations and warranties modified

         The representations and warranties in this Clause apply unless:

         (a)      the Approved Borrower or the Security Provider (as the case
                  requires) makes a contrary written statement to Integral
                  Business in the seven days before they are made or repeated;
                  and

         (b)      Integral Business accepts the statement in writing.

11.      PAYMENTS TO INTEGRAL BUSINESS

11.1     Payment to be on Business Day

         If a payment under this document falls due on a day that is not a
         Business Day, it must be paid on the previous Business Day.

11.2     Manner of payment

         Payments must be made:

         (a)      to Integral Business, or as directed by it;

         (b)      to the credit of such account as notified by Integral Business
                  to the Approved Borrower);

         (c)      at or before 12 noon on the due date in the place where the
                  payment is to be made;

         (d)      in immediately available funds; and

         (e)      free of any set-off, deduction or counterclaim.

11.3     Deduction or withholding required

         If the Approved Borrower must deduct or withhold Taxes from a payment
         to Integral Business it must:

         (a)      make those deductions or withholdings (or both);

         (b)      pay the full amount deducted or withheld as required by the
                  relevant law;

         (c)      give Integral Business a receipt for each payment; and

         (d)      increase its payment to Integral Business to an amount which
                  will result in Integral Business receiving the full amount
                  which would have been received if no deduction or withholding
                  had been required.

12.      DEFAULT

12.1     Events of Default

         An Event of Default occurs if:

         (a)      (non-payment) the Approved Borrower does not pay the whole or
                  any part of the Money Owing when due; or

         (b)      (obligation not compiled with) the Approved Borrower or a
                  Related Party does not comply with an obligation (other than
                  an obligation to pay money referred to in Clause 12.1 (a))
                  under a Relevant Agreement or an event of default (however
                  described) occurs under a Relevant Agreement; or

         (c)      (security coverage) the Approved Borrower or the Security
                  Provider (or both) does not comply with clause 8.4; or

         (d)      (incorrect statement or representation) a statement or
                  representation:

                  (i)      made to Integral Business by or on behalf of the
                           Approved Borrower or a Related Party; or

                  (ii)     made in a certificate, report or opinion given to
                           Integral Business,

                  proves to be incorrect or misleading in any way which Integral
                  Business considers material; or

         (e)      (undertaking not complied with) an undertaking given to
                  Integral Business or Integral Business's solicitors by or on
                  behalf of the Approved Borrower or any Related Party is not
                  complied with promptly and, unless otherwise specified, within
                  30 days of giving the undertaking; or

         (f)      (funding applied for other purpose) a Loan is applied for a
                  purpose other than the purpose specified in Clause 2.2; or

         (g)      (cross default - repayment) indebtedness of the Approved
                  Borrower or a Related Party:

                  (i)      becomes payable before its normal maturity because of
                           actual or potential default, or an event of default
                           (however described); or

                  (ii)     is not paid when due after taking into account any
                           applicable grace period; or

         (h)      (cross default - cancellation) as a result of actual or
                  potential default, or an event of default (however described):

                  (i)      a facility available to the Approved Borrower or a
                           Related Party is cancelled or terminated before its
                           normal expiry date; or

                  (ii)     the Approved Borrower or a Related Party ceases to be
                           entitled to use a facility or undrawn financial
                           accommodation which was previously available; or

         (i)      (creditors) the Approved Borrower or a Related Party stops
                  payment to creditors generally or enters into an arrangement,
                  assignment or composition with its creditors (except with the
                  consent of Integral Business) or proposes to do so; or

         (j)      (business stopped) without the consent of Integral Business
                  the Approved Borrower or a Related Party stops or threatens to
                  stop carrying on its business; or

         (k)      (External Administrator):

                  (i)      an External Administrator is appointed; or

                  (ii)     the Approved Borrower, its liquidator, a secured
                           creditor, a Related Party or any person on their
                           behalf requests the appointment of an External
                           Administrator, `

                  to the Approved Borrower, a Related Party or any of their
                  assets; or

         (l)      (enforcement proceedings) execution or distress takes place or
                  is attempted or an order to execute a judgment (however
                  described) is made against the Approved Borrower or a Related
                  Party or any of their assets; or

         (m)      (Security Interest enforceable) a Collateral Security or a
                  Security Interest created or entered into by the Approved
                  Borrower or a Related Party becomes enforceable and any step
                  is taken to enforce it; or

         (n)      (prior trust not disclosed) the Approved Borrower did not
                  disclose to Integral Business in writing, before or at the
                  time this document was executed, the fact that:

                  (i)      it was entering into the transactions contemplated by
                           this document as a trustee or in a trust capacity; or

                  (ii)     all or any part of the assets held by it are held in
                           trust for or on behalf of any other person; or

         (o)      (Winding Up):

                  (i)      an order is made for the Winding Up of the Approved
                           Borrower or a Related Party; or

                  (ii)     proceedings are commenced or an application is made
                           for the Winding Up of the Approved Borrower or a
                           Related Party and not withdrawn or dismissed within
                           seven days; or

                  (iii)    an effective resolution is passed or a meeting is
                           summoned or convened to consider a resolution for the
                           Winding Up of the Approved Borrower or a Related
                           Party, except with the consent of Integral Business
                           and for the purpose of amalgamation or
                           reconstruction; or

         (p)      (grounds for Winding Up) a circumstance specified in section
                  461 of the Corporations Law occurs to the Approved Borrower or
                  a Related Party; or

         (q)      (deregistration) a step is taken under section 572 or 574 of
                  the Corporations Law to cancel the registration of the
                  Approved Borrower or a Related Party; or

         (r)      (change in constituent documents) the Approved Borrower or a
                  Related Party alters its memorandum or articles of association
                  or other constituent documents without the consent of Integral
                  Business; or

         (s)      (business changed) the Approved Borrower or a Related Party
                  substantially changes the nature of its business without the
                  consent of Integral Business; or

         (t)      (capital reduction) the Approved Borrower or a Related Party:

                  (i)      attempts to redeem its shares, to reduce its share
                           capital or to buy or to acquire shares in itself; or

                  (ii)     passes a resolution of the type referred to in
                           section 188(2) of the Corporations Law,

                  without the consent of Integral Business; or

         (u)      (financial assistance) the Approved Borrower or a Related
                  Party passes a resolution under section 205(10) of the
                  Corporations Law without the consent of Integral Business; or

         (v)      (change in control) the control of the Approved Borrower or a
                  Related Party or the composition of the board of directors of
                  the Approved Borrower or a Related Party changes in any way
                  which Integral Business thinks is detrimental to its interests
                  under a Relevant Agreement, without the consent of Integral
                  Business; or

         (w)      (power of attorney) an Approved Trade Debtor or the Approved
                  Borrower or the Security Provider (or all) or any person on
                  their behalf for any reason claims that a power of attorney
                  under which it purports to execute any document did not give
                  full authority for the applicable attorney to sign that
                  document for and on behalf of the Approved Trade Debtor or
                  Approved Borrower or the Security Provider (as the case may
                  be); or

         (x)      (unenforceability) anyone finds, or the Approved Borrower or a
                  Related Party says that, a Relevant Agreement or a provision
                  of a Relevant Agreement is void, voidable or unenforceable, or
                  anyone becomes entitled to terminate or rescind all or any
                  part of a Relevant Agreement; or

         (y)      (creating Security Interest) the Approved Borrower or a
                  Related Party attempts to create a Security Interest on or in
                  connection with its assets or undertaking without the consent
                  of Integral Business; or

         (z)      (material adverse change) an event occurs which, in the
                  opinion of Integral Business, has a material adverse effect on
                  the Approved Borrower, a Related Party or property the subject
                  of a Collateral Security.

12.2     Consequences of Event of Default

         After an Event of Default Integral Business may:

         (a)      declare the Money Owing payable. If so, the Money Owing
                  becomes immediately payable; or

         (b)      give notice to the Approved Borrower that the facility under
                  this document is cancelled. If so, all the obligations of
                  Integral Business under this document are immediately at an
                  end; or

         (c)      do both (a) and (b).

13.      INCREASED COSTS

         If Integral Business decides that:

         (a)      the cost to it of providing, funding or maintaining a Loan is
                  increased; or

         (b)      an amount payable or the effective return to it under this
                  document is reduced; or

         (c)      it must pay money (other than income tax on its overall net
                  income) or forgo interest or any other benefit in connection
                  with a Relevant Agreement,

         because of any law or regulation or Public Authority directive or
         request (including, but not limited to, those relating to taxation,
         capital adequacy or reserve requirements or banking or monetary
         controls) or any change in the way they are interpreted or applied,
         then the Approved Borrower:

         (d)      indemnities Integral Business against that increased cost,
                  reduction, payment, foregone interest or other benefit; and

         (e)      must pay to Integral Business on demand whatever amount
                  Integral Business certifies is necessary to indemnify it.

14.      ILLEGALITY

         If Integral Business decides that it is unlawful to allow the
         Outstanding Amount to remain outstanding:

         (a)      Integral Business must notify the Approved Borrower of that
                  decision promptly; and

         (b)      if Integral Business requires it, the Approved Borrower must
                  pay the Money Owing in full to Integral Business on the date
                  specified by Integral Business.

15.      PRESERVING INTEGRAL BUSINESS' RIGHTS, POWERS AND REMEDIES

15.1     Preservation

         (a)      The fact that Integral Business does not exercise, or delays
                  the exercise of, any right, power or remedy does not affect
                  any of its other rights, powers or remedies.

         (b)      The fact that Integral Business delays the exercise of any
                  right, power or remedy does not constitute a waiver of that
                  right, power or remedy.

         (c)      The fact that Integral Business exercises a right, power or
                  remedy does not prevent Integral Business from exercising that
                  right, power or remedy again.

         (d)      This document does not operate to extinguish or prejudice any
                  right, power or remedy of Integral Business under a Relevant
                  Agreement or a negotiable instrument.

15.2     Moratorium legislation

         A moratorium does not apply to a Relevant Agreement or the recovery of
         the Money Owing except if:

         (a)      Integral Business agrees in writing that it does; or

         (b)      it cannot be excluded by law.

15.3     Reinstating or replacing rights

         If any payment made to Integral Business in reduction of the Money
         Owing is repaid or conceded to be void, voidable or repayable for any
         reason, then, despite any release, settlement or discharge in
         connection with the Money Owing:

         (a)      that payment has not discharged the relevant liability;

         (b)      Integral Business may recover the amount of that payment from
                  the Approved Borrower; and

         (c)      the Approved Borrower must:

                  (i)      immediately do all acts and things Integral Business
                           requires to replace or reinstate this document and
                           any Collateral Security which has been released in
                           connection with that payment; and

                  (ii)     indemnify Integral Business against and pay on demand
                           all costs and expenses in connection with replacing
                           or reinstating this document and any Collateral
                           Securities.

15.4     Effect of release

         A full or partial release of this document by Integral Business does
         not release the Approved Borrower from personal liability under this
         document until Integral Business receives the Money Owing, regardless
         of any:

         (a)      receipt given, payout figure quoted or other form of account
                  stated; or

         (b)      error or miscalculation by Integral Business.

15.5     Indemnities continuing

         Each indemnity given by the Approved Borrower to Integral Business
         under this document is a continuing indemnity. A full or partial
         release of this document does not release the Approved Borrower from
         liability under an indemnity unless the release is specifically of that
         indemnity.

16.      ASSIGNMENT

16.1     By Approved Borrower

         The Approved Borrower may not assign or otherwise deal with its rights
         under this document without Integral Business's consent.

16.2     By Integral Business

         Integral Business may assign or otherwise deal with its rights and
         benefits under this document.

16.3     Effect of assignment

         If the rights and benefits of Integral Business under this document are
         assigned, a reference in this document to:

         (a)      a rate of interest quoted or published by or for Integral
                  Business is a reference to whatever rate the person taking the
                  assignment decides is an approximately equivalent quoted or
                  published rate; and

         (b)      an increase in the cost to Integral Business of providing a
                  Loan is a reference to the increased cost to the person taking
                  the assignment of providing a Loan,

         even if the interest rate or the cost to the person taking the
         assignment is higher than it was before.

17.      NOTICES

         A notice, approval, consent or other communication in connection with
         this agreement:

         (a)      must be given by an Authorised Officer of the relevant party;

         (b)      must be in writing; and

         (c)      must be left at the address of the addressee, or sent by
                  prepaid ordinary post (airmail if posted to or from a place
                  outside Australia) to the address of the addressee or sent by
                  facsimile to the facsimile number of the addressee at:

                  (i)      in the case of the Approved Borrower and the Security
                           Provider

                           Address:    Level 4, 1 James Place
                                       NORTH SYDNEY NSW 2060

                           Attention:  Justin Macintosh

                           Facsimile:  1 02 9959 3583

                  (ii)     in the case of Integral Business:

                           Address:    Level 3
                                       75 Castlereagh Street
                                       SYDNEY NSW 2000

                           Attention:  Philip Carden

                           Facsimile:  02 9231 6200

                  or if the addressee notifies another address or facsimile
                  number, then to that address or facsimile number.

17.2     Unless a later time is specified in it, a notice, approval, consent or
         other communication takes effect from the time it is received.

17.3     A letter or facsimile is taken to be received:

         (a)      in the case of personal delivery, when delivered to the
                  addressee;

         (b)      in the case of a posted letter, on the third Business Day
                  after posting; and

         (c)      in the case of facsimile, on production of a transmission
                  report by the machine from which the facsimile was sent which
                  indicates that the facsimile was sent in its entirety to the
                  facsimile number of the recipient notified for the purpose of
                  this Clause,

         but if the delivery or receipt is on a day which is not a Business Day
         or is after 4:00 p.m. (addressee's time), it is taken to be received at
         the commencement of business on the next Business Day.

18.      MISCELLANEOUS

18.1     No obligation to exercise rights or give consent

         Integral Business may:

         (a)      exercise or not exercise any right, power or remedy;

         (b)      give or not give consent; and

         (c)      make or not make a decision,

         under this document, in its absolute discretion without giving a reason
         and without being liable or accountable for the consequences.

18.2     Consent must be in writing

         A consent given or a right, power or remedy waived by Integral Business
         is effective only if given or waived in writing.

18.3     Notification from Approved Borrower or Security Provider

         If the Approved Borrower or the Security Provider is required under
         this document to notify Integral Business about anything, the Approved
         Borrower or the Security Provider (as the case requires) must do so in
         writing.

18.4     Integral Business may set off

         Without any demand or notice, Integral Business may set off and apply
         indebtedness it owes to the Approved Borrower (whatever the currency)
         against the Money Owing:

         (a)      whether or not the indebtedness is owed alone or with any
                  other person; and

         (b)      whether or not the Money Owing is immediately payable.

18.5     Approved Borrower must not set off

         The Approved Borrower must not claim, exercise or attempt to exercise a
         right of set-off or any other right which might reduce or discharge the
         Money Owing.

18.6     Applying receipts

         Integral Business may apply or appropriate money received to reduce the
         Money Owing in the order, and to satisfy whatever part of the Money
         Owing, Integral Business sees fit.

18.7     Certain notices or demands

         A notice from or demand by Integral Business stating:

         (a)      that a specified sum of money is owing or payable (or both)
                  under a Relevant Agreement; or

         (b)      that an Event of Default has occurred; or

         (c)      something relevant to the rights or obligations of Integral
                  Business or the Approved Borrower under a Relevant Agreement,

         is admissible in proceedings and is conclusive evidence of the matters
         stated except if there is manifest error.

18.8     Severability

         (a)      A construction of this document that results in all provisions
                  being enforceable is to be preferred to a construction that
                  does not so result.

         (b)      If, despite the application of paragraph (a), a provision of
                  this document is illegal or unenforceable:

                  (i)      and it would be legal and enforceable if a word or
                           words were omitted, that word or those words are
                           severed; and

                  (ii)     in any other case, the whole provision is severed,

         and the remainder of this document continues in force.

18.9     Entire agreement

         This document and the Collateral Security contain all the terms on
         which a Loan is or will be provided and remain outstanding and
         supersedes all prior communications about any Loan. If the terms of
         this document conflict with the Collateral Security, the terms of this
         document prevail.

18.10    Variation of agreement

         A variation of this document must be in writing and signed by or for
         Integral Business and by or for the Approved Borrower or the Security
         Provider.

18.11    Counterparts

         This document may be executed in any number of counterparts.

18.12    Integral Business may disclose information Integral Business may
         disclose to:

         (a)      a potential assignee or participant; or

         (b)      a person contemplating entering into an agreement with
                  integral Business in connection with the Approved Borrower, a
                  Related Party or a Relevant Agreement,

         any information about the Approved Borrower, a Related Party or a
         Relevant Agreement which it considers appropriate.

18.13    Governing law and jurisdiction

         This document is governed by the law applicable in New South Wales and
         the Approved Borrower and the Security Provider submit to the
         non-exclusive jurisdiction of the courts of New South Wales and courts
         of appeal from them.

<PAGE>

                                   SCHEDULE 1

                            DESIGNATED BANK ACCOUNTS

<PAGE>

                                   SCHEDULE 2

                                 DRAWDOWN NOTICE

To:      Integral Business Finance Pty Limited
         ACN 077 559 749
         Level 3
         75 Castlereagh Street
         SYDNEY NSW 2000

         We refer to the Loan Agreement dated August 1997 (the `Loan
         Agreement;).

1.       We give you irrevocable notice that CorVu Australasia Pty Ltd wishes to
         draw down a Loan under the Loan Agreement as follows:

         (a)      the drawdown date is                      1998;
         (b)      the amount of the Loan is $

2.       We provide the following details:

------------ ------------- ------------- -------- ----------- ------------
Name of      Approved      Invoice Date  Invoice  Repayment   Other
Approved     Trade                       Amount   Date        Information
Trade        Debtor Limit
Debtor       (including
             this Loan)
------------ ------------- ------------- -------- ----------- ------------

------------ ------------- ------------- -------- ----------- ------------

3.       Please confirm the Base Rate for the Loan in due course.

4.       Please pay the Loan to the credit of [account details].

5.       We confirm that the representations and warranties in Clause 10 of the
         Loan Agreement will be true on the date specified above.

6.       Attached is:

         (a)      a certified copy of the ledger of Approved Trade Debtors of
                  the Approved Borrower; and

         (b)      the Invoice to which the Drawdown Notice relates.

DATED                        1998

SIGNED for and on behalf of                        )
CORVU AUSTRALASIA PTY LTD                          )
ACN 050 043 699 by an authorised signatory in the  )
presence of:

 ..............................         ...................................
Signature of witness                   Signature of authorised signatory

 ..............................         ...................................
Name in full (print)                   Name in full (print)

<PAGE>

EXECUTED as an agreement.

THE COMMON SEAL of                                 )
CORVU AUSTRALASIA PTY LTD                          )
ACN 050 043 699 is affixed in accordance           )
with its articles of association in the            )
presence of:

/s/ Justin M. MacIntosh
 ..............................          ..................................
Secretary/Director                      Director

Justin M. MacIntosh
 ..............................          ..................................
Full name (please print)                Full name (please print)

THE COMMON SEAL of CORVU PIC                       )
(Company Number 03096249)                          )
is affixed in accordance with its articles of      )
association in the presence of:                    )
/s/ Ode Longue                           /s/ John Bornholt
 ..............................          ...................................
Secretary                               Director
Ode Longue                               John Bornholt
 ..............................          ...................................
Full name (please print)                Full name (please print)

SIGNED for and on behalf of CORVU                  )
NORTH AMERICA INC (FIN 41-1819469)                 )
by an authorised signatory in the                  )
presence of:                                       )

                                         /s/ David Carlson
 ..............................          ...................................
Signature of Witness                    Signature of authorised signatory

                                         David Carlson
 ..............................          ...................................
Name in full (print)                    Name in full (print)

<PAGE>

SIGNED for and on behalf of INTEGRAL               )
BUSINESS FINANCE PTY LIMITED                       )
ACN 077 559 749 - by an authorised                 )
signatory in the presence of:                      )

 ..............................         ....................................
Signature of Witness                   Signature of authorised signatory

 ..............................         ....................................
Name in full (print)                   Name in full (print)CORVU AUSTRALASIA PTY LTD
                                 ACN 050 043 699

                                    (Chargor)

                                       and

                      INTEGRAL BUSINESS FINANCE PTY LIMITED
                                 ACN 077 559 749

                                    (Chargee)

                          SPECIFIC AND FLOATING CHARGE

                                   ABBOTT TOUT
                                   Solicitors
                              Level 42, MLC Centre
                               19-29 Martin Place
                                   SYDNEY 2000

                                 DX: 129 SYDNEY
                                 TEL: 9334 8555
                                 FAX: 9334 8585
                                    REF: RHT

<PAGE>

                                    CONTENTS

Clause                                                                  Page No.

1     INTERPRETATION...........................................................1
   1.1   Definitions...........................................................1
   1.2   General...............................................................7
   1.3   Statutory Covenants..................................................10
2     CHARGE..................................................................10
   2.1   Charging Clause......................................................10
   2.2   Priority Ranking.....................................................10
   2.3   Representations and Warranties.......................................10
   2.4   Further Assurance....................................................11
   2.5   Collection Proceeds..................................................12
3     SECURED MONEYS..........................................................12
   3.1   Payment..............................................................12
   3.2   Costs................................................................12
   3.3   Judgments............................................................13
   3.4   Certificates.........................................................14
   3.5   Specified Maximum Amount.............................................14
4     POSITIVE COVENANTS......................................................14
5     INSURANCE COVENANTS.....................................................16
   5.1   Security Insurances..................................................16
   5.2   Insurance Policy Contents............................................17
   5.3   Chargee Rectification................................................18
   5.4   Insurance Proceeds...................................................18
6     NEGATIVE COVENANTS......................................................18
7     EXPRESS CRYSTALLISATION.................................................20
   7.1   Crystallisation Circumstances........................................20
   7.2   Implicit Crystallisation.............................................20
   7.3   De-crystallisation...................................................20
   7.4   Crystallised Assets..................................................20
8     DEFAULT.................................................................21
   8.1   Events of Default....................................................21
   8.2   Enforcement..........................................................24
   8.3   Default Rectification................................................24
9     ENFORCEMENT.............................................................24
   9.1   Appointment of Receiver..............................................24
   9.2   Powers...............................................................24
   9.3   Agency...............................................................27
   9.4   Chargee Powers.......................................................28
   9.5   Receivership Termination.............................................28
   9.6   Sale Proceeds........................................................28
   9.7   Involuntary Loss.....................................................28
   9.8   Purchaser Protection.................................................28
10    MONEY RECOVERY..........................................................30
   10.1     Compensation Claims...............................................30
   10.2     Insurance Claims..................................................30
   10.3     Enforcement Proceeds..............................................30
   10.4     Receipts..........................................................30
   10.5     Surplus...........................................................31
11    STATUTORY PROVISIONS....................................................31
   11.1     Additional Statutory Powers.......................................31
   11.2     Statutory Power Modification......................................31
   11.3     Leasing Exclusion.................................................31
   11.4     Statutory Notice Exclusion........................................31
12    ATTORNEY................................................................32
   12.1     Appointment.......................................................32
   12.2     Functions.........................................................32
13    COLLATERAL SECURITY.....................................................32
   13.1     Merger Exclusion..................................................32
   13.2     Collateral Remedies...............................................32
14    CONTINUING SECURITY.....................................................32
   14.1     Continuing Account................................................32
   14.2     Contingent Liabilities............................................33
15    INDEMNITY...............................................................33
   15.1     Defaults..........................................................33
   15.2     Investigations....................................................33
16    STAMP DUTIES............................................................33
   16.1     Liability.........................................................33
   16.2     Financial Institutions Duty.......................................34
   16.3     Indemnity.........................................................34
17    ASSIGNMENT..............................................................34
   17.1     Chargee Assignment................................................34
   17.2     Assignee Secured Moneys...........................................34
18    NOTICES.................................................................34
19    GOVERNING LAW AND JURISDICTION..........................................35
   19.1     Governing Law.....................................................35
   19.2     Jurisdiction......................................................35
20    WAIVERS AND REMEDIES....................................................35
   20.1     Waivers...........................................................35
   20.2     Remedies..........................................................35
21    SEVERABILITY............................................................35
22    SURVIVAL................................................................36
   22.1     Representations...................................................36
   22.2     Indemnities.......................................................36
23    MORATORIUM LEGISLATION..................................................36
24    THIRD PARTY SECURITY....................................................36
   24.1     Guarantee.........................................................36
   24.2     Demand Payment....................................................36
   24.3     Separate Obligation...............................................37
   24.4     Continuing Guarantee..............................................37
   24.5     Future Dealings...................................................37
   24.6     Guarantee Protection..............................................37
   24.7     Marshalling Exclusion.............................................40
   24.8     Recovery Receipts.................................................40
   24.9     Subrogation Exclusion.............................................40
   24.10    Suspense Account..................................................41
   24.11    Insolvency Clawbacks..............................................41
   24.12    Principal Indemnity...............................................42
   24.13    Representation Exclusion..........................................42
   24.14    Disclosure Exclusion..............................................42
   24.15    Guarantee Interpretation..........................................42
25    COUNTERPARTS............................................................43
26    ATTORNEYS...............................................................43

<PAGE>

SPECIFIC AND FLOATING CHARGE

DEED OF CHARGE dated  26th   day of February, 1998.

PARTIES

1        CORVU AUSTRALASIA PTY LTD (ACN 050 043 699) of Level 4, 1 James Place,
         North Sydney, NSW, 2060 ("Chargor"); and

2        INTEGRAL BUSINESS FINANCE PTY LIMITED ACN 077 559749 of Level 3, 75
         Castlereagh Street, Sydney NSW 2000 ("Chargee").

RECITALS

A        The Chargee may in its discretion make or extend loans, advances,
         credit facilities or other financial accommodation to the Debtor
         defined below and/or the Chargor from time to time in the future.

B        The Chargee also forbears to demand payment or sue for any loans,
         advances, credit facilities or other financial accommodation previously
         made or extended to the Debtor and/or the Chargor.

C        This consideration is provided by the Chargee at the request of each of
         the Debtor and the Chargor.

D        The Chargor wishes to execute this Charge for the purpose of securing
         payment to the Chargee of the loans, advances, credit facilities or
         other financial accommodation.

OPERATIVE CLAUSES

THIS DEED WITNESSES as follows:

1        INTERPRETATION

1.1      Definitions

         The following meanings apply to capitalised terms used in this Charge
         unless the context otherwise requires:

         "Attorney" means an attorney of the Chargor appointed pursuant to this
         Charge;

         "Authorisation" includes:

         (a)      any consent, authorisation, registration, filing, lodgment,
                  agreement, notorisation, certificate, permission, licence,
                  approval, authority or exemption from, by or with a
                  Governmental Agency; or

         (b)      in relation to any act, matter or thing which would be legally
                  prohibited or restricted in whole or in part if a Governmental
                  Agency intervenes or acts in any manner within a specified
                  period after its lodgment, filing, registration or
                  notification, the expiry of that period without intervention
                  or action;

         "Authorised Officer" means:

         (a)      in relation to the Chargor, any director, secretary or person
                  for the time being notified in that capacity by the Chargor to
                  the Chargee; and

         (b)      in relation to the Chargee, any director, secretary, manager
                  or acting or assistant manager of the Chargee;

         "Book Debts" means:

         (a)      book debts;

         (b)      debts other than book debts; and

         (c)      Collection Proceeds,

         but excludes Cash Assets;

         "Cash Assets" means:

         (a)      Collection Proceeds when credited to or paid into the
                  Designated Bank Account;

         (b)      moneys, funds or sums for the time being standing to the
                  credit of the Designated Bank Account;

         (c)      any indebtedness or liability in respect of any credit balance
                  for the time being in the Designated Bank Account of the bank
                  or financial institution where that account is held; and

         (d)      moneys, funds or assets withdrawn from, debited to or paid out
                  of the Designated Bank Account;

         "Charged Property" means all the present and future undertaking,
         property, rights and assets of the Chargor of any nature situated
         anywhere in Australia or overseas, including without limitation
         Intangible Assets;

         "Collateral Security" means any present or future Security Interest,
         Guarantee or other document or agreement in favour of the Chargee,
         entered into by way of further assurance or intended to be primary or
         collateral security for payment of the Secured Moneys, whether given,
         created or permitted to subsist by any Security Party or any other
         person and whether alone or jointly and/or severally;

         "Collection Proceeds" means the proceeds of collection or realisation
         of book and other debts comprising any form of property, including
         without limitation cash, cheques, payment, money or credit orders,
         transfers or transmissions of any kind by any means, bills of exchange
         or promissory notes;

         "Co-surety" means any person liable to the Chargee for payment of the
         Secured Moneys, whether as principal or surety, jointly, severally or
         jointly and severally;

         "Credit Agreement" means each agreement entered into at any time
         between the Debtor and/or the Chargor and the Chargee providing for or
         relating to the making or extension of loans, advances, credit
         facilities of other financial accommodation by the Chargee to the
         Debtor and/or the Chargor or any other person at the express or implied
         request of the Debtor and/or the Chargor;

         "Crown" includes the Crown in right of the Commonwealth of Australia
         and any State of the Commonwealth of Australia;

         "Crystallisation Event" means any of the following events:

         (a)      any breach of or default under paragraphs (a) to (g) inclusive
                  of Clause 6 by or in relation to the Chargor;

         (b)      any Event of Default specified in paragraphs (e) to (m)
                  inclusive of Clause 8.1; or

         (c)      the preparation of or attempt to issue or effect any notice,
                  requisition or direction by or on behalf of the Commissioner
                  of Taxation pursuant to section 218 or 255 of the Income Tax
                  Assessment Act 1936, section 74 of the Sales Tax Assessment
                  Act 1992 or any similar legislation;

         "Debtor" means:

         (a)      CorVu Australasia Pty Ltd (ACN 050 043 699) and

         (b)      when two or more persons are named above as the Debtor, each
                  Debtor separately and all Debtors collectively;

         "Designated Bank Account" means a nominated account of the Chargor with
         a bank or financial institution as notified at any time by the Chargee
         to the Chargor;

         "Environmental Law" means any statute or legislative provision relating
         to any aspect of safety, health or the environment or any activity or
         use of substances which is potentially hazardous or harmful to the
         environment;

         "Event of Default" means an event specified in Clause 8.1;

         "Financial Indebtedness" means any indebtedness, present or future,
         actual or contingent, in respect of:

         (a)      moneys borrowed or raised;

         (b)      any financial accommodation of any kind, including without
                  limitation indebtedness under or in relation to any:

                  (i)      bill of exchange or acceptance credit;

                  (ii)     Guarantee;

                  (iii)    convertible note or redeemable share;

                  (iv)     discounting or factoring arrangement, hire purchase
                           arrangement or finance or capital lease; or

                  (v)      deferred purchase price for a period exceeding 90
                           days of any asset or service or any obligation to
                           deliver goods or provide services paid for in advance
                           by any financing party;

         (c)      any financial, gold or currency exchange agreement or
                  arrangement of any kind, including without limitation any
                  currency, principal or interest rate swap or futures agreement
                  or arrangement or hedging transaction; or

         (d)      any financing transaction of any kind,

         but excludes liability for payment for goods and services incurred in
         the ordinary course of business;

         "Governmental Agency" means the Crown, any government, any governmental
         ministry or department, or any Crown, governmental, semi-governmental,
         statutory, parliamentary, administrative, fiscal, public, municipal,
         local, judicial or regulatory entity, agency, instrumentality,
         authority, court, commission or tribunal, and in relation to Charged
         Property situated in a country or jurisdiction outside Australia
         includes the equivalent in that foreign country or jurisdiction;

         "Guarantee" in relation to a person, means any guarantee, indemnity,
         undertaking, covenant, letter of credit, legally binding letter of
         comfort, suretyship document, irrevocable offer, put option or other
         legal obligation of any nature or description:

         (a)      to pay or purchase;

         (b)      to provide funds, whether by the advance of money, the
                  purchase of or subscription for Marketable Securities, the
                  purchase of assets, rights or services, or otherwise, for the
                  payment or discharge of;

         (c)      to indemnify against the consequences of default in the
                  payment of; or

         (d)      to be responsible for,

         any indebtedness, liability or obligation or the financial condition or
         the solvency or insolvency of any other person;

         "Intangible Assets" means:

         (a)      the goodwill of a business;

         (b)      any business franchise or trade name; and

         (c)      any uncalled and called but unpaid capital and premiums on the
                  shares of the Chargor;

         "Intellectual Property" means any intellectual or industrial property,
         including without limitation:

         (a)      a patent, trade mark, service mark, copyright, registered
                  design, trade secret or confidential information; or

         (b)      a licence or other right to use or to grant the use, or to be
                  the registered proprietor or user, of any of the foregoing;

         "Marketable Securities" means:

         (a)      debentures, stocks, shares, bonds or promissory notes created
                  or issued by any Governmental Agency or any company or other
                  corporate body, association or society;

         (b)      a prescribed interest as defined in the Corporations Law,
                  including without limitation an interest in a unit trust;

         (c)      an interest or share in a partnership or joint venture; or

         (d)      a right or option in relation to any of the foregoing,

         but excludes cheques, payment orders and bills of exchange, other than
         promissory notes;

         "Material Adverse Effect" means, in the reasonable opinion of the
         Chargee, a material adverse effect on:

         (a)      the ability of any Security Party to perform its obligations
                  under a Security Agreement to which it is a party;

         (b)      the financial condition or business of any Security Party; or

         (c)      the Security Agreements or the Charged Property, in each case
                  taken as a whole;

         "Permitted Security Interest" means:

         (a)      any Collateral Security;

         (b)      any Security Interest arising in favour of any Governmental
                  Agency by operation of statute, where there is no default in
                  payment of any moneys due to that Governmental Agency or where
                  payment is disputed in good faith and in the opinion of the
                  Chargee on reasonable and substantial grounds; or

         (c)      any possessory lien arising by operation of law, where that
                  lien arises in the ordinary course of business and where there
                  is no default in payment of any moneys due to the lien
                  creditor;

         "Receiver" means a receiver and/or manager appointed by or on behalf of
         the Chargee under this Charge, and when two or more persons are so
         appointed refers to each person severally as well as any two or greater
         number of them jointly;

         "Secured Moneys" means all moneys, liabilities, indebtedness and
         obligations due and/or payable, whether actually or contingently and
         whether alone, severally and/or jointly, from or by any Security Party
         at the present or any future time to the Chargee on any account or
         under any circumstances of any kind, including indebtedness of any
         Security Party assigned to the Chargee, or under or in relation to or
         in connection with any agreement, including without limitation any
         Security Agreement, for the time being made or in force and effect
         between any Security Party and the Chargee, including without
         limitation by way of principal, interest, fees, costs, indemnities,
         charges, taxes, expenses or payment of damages under or in relation or
         in connection with, or as a result of any breach of or default under or
         in relation to, that agreement;

         "Security Agreement" means each of the following:

         (a)      each Credit Agreement;

         (b)      this Charge; and

         (c)      each Collateral Security;

         "Security Insurances" means:

         a)       all the right, title and interest whether at law or in equity
                  of the Chargor in and to any policies or certificates of
                  insurance effected at any time by the Chargor for the purposes
                  of this Charge or in relation to any Charged Property or its
                  use or enjoyment, including insurances and compensation under
                  any law relating to workers' compensation;

         (b)      all moneys, benefits, sums, funds or other payments at any
                  time assured by, or to become payable to the Chargor under or
                  in connection with, the insurances;

         (c)      all claims, demands, actions, proceedings and remedies which
                  the Chargor may at any time have or assert against any insurer
                  or other person or to which the Chargor may at any time be
                  entitled under the insurances; and

         (d)      all certificates, policies or other documents evidencing the
                  right, title and interest of the Chargor in and to the
                  insurances;

         "Security Interest" includes:

         (a)      any mortgage, charge, pledge, lien, trust or power created or
                  conferred in relation to an asset;

         (b)      any proprietary title or interest retained or reserved in an
                  asset;

         (c)      the deposit of money under any set-off or flawed asset
                  agreement;

         (d)      any other right conferred on, or an arrangement made with, any
                  creditor to be paid in priority or preference to other
                  creditors by recourse to an asset or its proceeds; or

         (e)      any agreement or arrangement to achieve or effect any of the
                  foregoing,

         by way of security for the payment or performance of any debt or other
         liability, but excludes any Permitted Security Interest;

         "Security Licences" means all the right, title and interest, to the
         extent assignable, of the Chargor in all or any licences or
         Authorisations granted or issued to or otherwise held by the Chargor in
         relation to or in correction with the Charged Property;

         "Security Party" means each of:

         (a)      the Chargor;

         (b)      the Debtor; and

         (c)      each Co-surety;

         "Subsidiary" in relation to:

         (a)      a body corporate, means a subsidiary within the meaning of
                  Division 6 of Part 1.2 of the Corporations Law;

         (b)      a trust, means a trust that would be a subsidiary within that
                  meaning if it were a company equating for this purpose:

                  (i)      shares with the beneficial interests or units held in
                           the trust; and

                  (ii)     the board of directors with the trustees; and

         (c)      a body corporate or subtrust owned or held as an asset of a
                  trust, means a subsidiary within any of the foregoing meanings
                  which would be applicable if the trust were a body corporate.

1.2      General

         The following rules of interpretation apply in this Charge unless the
         context otherwise requires:

         (a)      (headings): headings and subheadings are for convenience only
                  and shall not affect interpretation;

         (b)      (plurality): words denoting the singular number include the
                  plural, and the converse also applies;

         (c)      (gender):  words denoting any gender include all genders;

         (d)      (cross-references): a reference to a clause, schedule,
                  annexure or exhibit is a reference to a clause of, or
                  schedule, annexure or exhibit to, this Charge;

         (e)      (legal personality): a reference to a person includes a
                  natural person, company, corporation, trust, partnership,
                  joint venture, or any other incorporated or unincorporated
                  body, society, association or entity;

         (f)      (writing): a reference to "writing" and cognate expressions
                  includes a facsimile transmission and any other means of
                  reproducing words in a tangible and permanently visible form;

         (g)      (document parties): a reference to a party to any document or
                  agreement includes its executors, administrators, successors
                  and permitted assigns and substitutes by way of assignment or
                  novation;

         (h)      (document amendment): a reference to any agreement or document
                  includes that agreement or document as amended, varied,
                  novated, supplemented or replaced from time to time;

         (i)      (agreements): the word "agreement" includes any Security
                  Interest, Guarantee, contract, deed, covenant, undertaking,
                  condition, provision or legally enforceable agreement or
                  arrangement, whether or not in writing, and the word
                  "document" includes any agreement as so defined in writing or
                  any certificate, consent, notice, instrument, certificate or
                  document of title or document of any kind;

         (j)      (legislation): a reference to legislation, including any
                  statute, enactment, ordinance, code or other legislation, or a
                  section or provision of that legislation, includes any order,
                  regulation, rule, bylaw, proclamation or statutory instrument
                  made or issued under that legislation and any amendment,
                  modification, consolidation, reenactment or replacement of, or
                  substitution for, that legislation from time to time;

         (k)      (legal rules): a reference to "judgment" includes a judgment,
                  order, decree, declaration or ruling of a court of competent
                  jurisdiction or Governmental Agency binding on a person or the
                  assets of that person, and a reference to any "law" or
                  anything being "legal" includes legislation, the rules of the
                  general law, including common law and equity, and any
                  judgment;

         (l)      (notices): a reference to any notice, claim, demand, consent,
                  agreement, approval, permission, authorisation, specification,
                  direction, disclosure, notification, request, requisition,
                  certificate, receipt, acknowledgment, communication,
                  appointment, waiver, acquiescence or indulgence being given or
                  made by a party to this Charge is a reference to its being
                  given or made in writing, and the expression "written notice"
                  includes any of the foregoing;

         (m)      (payment): the word "payment" and cognate expressions include
                  repayment;

         (n)      (rights): the word "right" or "power" includes right, power,
                  remedy, authority, discretion or option or right to make or
                  give any request, requisition, notice or demand, and the word
                  "consent" includes approval, agreement, permission or
                  authorisation;

         (o)      (assets): a reference to any "property" or "asset" includes
                  money, goods, things in action, land and every other
                  description of any real or personal property or asset, whether
                  present or future, tangible or intangible, vested or
                  contingent, including without limitation Intellectual
                  Property, and any legal or equitable right, title, estate,
                  interest, revenue or benefit in or under or derived from or
                  incidental to that property or asset;

         (p)      (real property): a reference to land or real property includes
                  any freehold, leasehold, strata title or strata leasehold
                  estate or interest in real property;

         (q)      (events of default): a reference to an Event of Default
                  "subsisting" at any time is an Event of Default that has not
                  been remedied by the Chargor or waived by the Chargee or where
                  the Chargor is not in full compliance with the terms and
                  conditions of any waiver as at that time;

         (r)      (partial references): a reference to moneys, agreements,
                  rights, powers, undertaking, business, property, assets,
                  things, indebtedness, liabilities, obligations, duties,
                  covenants or undertakings, including without limitation the
                  Secured Moneys and the Charged Property, includes all or any
                  part or lesser number of any of them;

         (s)      (time references): a reference to an act being done or capable
                  of being done or a right or power being exercised or capable
                  of being exercised "at any time" includes both present and
                  future time and its being done or exercised from time to time;

         (t)      (dollars references): a reference to "dollars" or "$" means
                  the lawful currency of the Commonwealth of Australia;

         (u)      (taxation): a reference to "taxes" includes taxes, levies,
                  imposts, deductions, charges, rates, duties, compulsory loans
                  and withholdings levied or imposed by any Governmental Agency,
                  including without limitation income, land, rating, stamp and
                  transaction taxes, duties and charges, together with
                  associated interest, penalties, charges, fees or other
                  amounts;

         (v)      (costs): a reference to "costs" includes costs, charges,
                  expenses, disbursements, fees, commissions, insurance premium
                  payments, levies, taxes and duties; and

         (w)      (liquidation): a reference to "liquidation", as applicable to
                  any person, includes receivership, management, administration,
                  compromise, arrangement, merger, amalgamation, reconstruction,
                  winding up, dissolution, assignment for the benefit of
                  creditors, scheme of arrangement or compromise with creditors,
                  bankruptcy or death.

1.3      Statutory Covenants

         A reference in this Charge to an agreement contained in or arising
         under this Charge includes an agreement implied in this Charge by
         virtue of any legislation.

2        CHARGE

2.1      Charging Clause

         The Chargor charges by way of equitable mortgage the Charged Property
         to and in favour of the Chargee as a continuing security for payment by
         the Chargor of the Secured Moneys as follows:

         (a)      (specific charge):  by way of specific charge, all its:

                  (i)      real property;

                  (ii)     Security Licences;

                  (iii)    Security Insurances;

                  (iv)     fixed or moveable plant, machinery and equipment,
                           excluding any stock-in-trade or work-in-progress);

                  (v)      Intellectual Property;

                  (vi)     Intangible Assets;

                  (vii)    Marketable Securities; and

                  (viii)   Book Debts; and

         (b)      (floating charge): by way of floating charge, all its other
                  Charged Property, including without limitation stock-in-trade,
                  work-in-progress and cash in hand and at the bank.

2.2      Priority Ranking

         This Charge shall rank first in point of priority in relation to the
         Charged Property as against any other Security Interest at any time
         created or arising over or in relation to the Charged Property.

2.3      Representations and Warranties

         The Chargor represents and warrants to and in favour of the Chargee
         that at all times during continuance of this Charge:

         (a)      (validity): the execution or performance of this Charge does
                  not contravene any provision of the memorandum or articles of
                  association of the Chargor or any agreement, law, judgment or
                  Authorisation of any Governmental Agency binding upon the
                  Chargor or its assets;

         (b)      (power): the Chargor is fully empowered to execute and perform
                  this Charge, which has been executed in accordance with its
                  memorandum and articles of association;

         (c)      (priority):  this Charge ranks first in point of priority;

         (d)      (beneficial ownership): the Chargor holds the Charged Property
                  in its beneficial ownership and not as trustee or fiduciary
                  for any third party, except where the Chargor is trustee of a
                  trust which has been expressly disclosed in the terms of this
                  Charge or to the Chargee prior to its execution by the
                  Chargor; and

         (e)      (adverse interests): the Charged Property is not subject to
                  any Security Interest, whether ranking in priority to, equally
                  with or subsequent to this Charge, or any other adverse right
                  or interest of any third party, except:

                  (i)      any Permitted Security Interest;

                  (ii)     as notified by the Chargor to the Chargee prior to
                           the date of this Charge; or

                  (iii)    in relation to real property, any adverse encumbrance
                           or interest, other than a Security Interest,
                           specified in a public register prior to the date of
                           this Charge.

2.4      Further Assurance

         The Chargor must at any time, whether before or after the occurrence of
         an Event of Default or demand for payment of the Secured Moneys, upon
         request by the Chargee but at the full cost of the Chargor:

         (a)      (title documents): deposit with the Chargee documents of title
                  relating to the Charged Property in relation to which this
                  Charge ranks first in point of priority and, upon request, any
                  agreement relating to the Charged Property;

         (b)      (legal perfection): execute all legal or statutory mortgages
                  and assurances and other instruments, including written
                  acknowledgments or confirmations as to liability to the
                  Chargee in relation to the Secured Moneys in a form and
                  substance satisfactory to the Chargee and perform all acts
                  reasonably required for further or more effectually securing
                  to the Chargee the Charged Property or the rights of the
                  Chargee under this Charge or any other agreement between the
                  Chargor and the Chargee;

         (c)      (registration): use its best endeavours to ensure that any
                  document executed pursuant to this provision is duly stamped
                  and registered as required by the Chargee;

         (d)      (document completion): permit the Chargee, any Authorised
                  Officer of the Chargee, Receiver or Attorney, without
                  necessity for any further authority than this provision, to
                  complete any document or blank provision in any document
                  executed in favour or at the request of the Chargee, including
                  in any relevant case the insertion of the name of the Chargee,
                  its nominee or appointee or other person as holder,
                  proprietor, purchaser or transferee; and

         (e)      (subsidiaries): procure where applicable that each Subsidiary
                  for itself and in relation to its property complies with and
                  effectuates the foregoing.

2.5      Collection Proceeds

         The Chargor must at all times during the continuance of this Charge,
         whether prior or subsequent to the occurrence of an Event of Default,
         credit or pay all Collection Proceeds immediately following receipt by
         the Chargor, or cause the Collection Proceeds to be credited or paid
         directly, to or into the Designated Bank Account, except where the
         Chargee has previously directed or consented to a contrary arrangement.

3        SECURED MONEYS

3.1      Payment

         (a)      (Specific agreement): Where there is a Credit Agreement
                  between the Chargor and the Chargee which contains terms
                  contrary to payment of the Secured Moneys upon demand, the
                  Chargor must, subject to paragraph (c), pay the Secured Moneys
                  at the times and in the manner required by that Credit
                  Agreement.

         (b)      (Demand payment): In any other case, the Chargor must pay the
                  Secured Moneys to the Chargee upon demand by the Chargee,
                  which may be made at any time.

         (c)      (Default acceleration): If the Chargee has declared the
                  Secured Moneys to be immediately due and payable following the
                  occurrence of an Event of Default pursuant to paragraph (a) of
                  Clause 8.2, the Chargor must pay the Secured Moneys to the
                  Chargee upon demand by the Chargee, which may be made by the
                  Chargee at any time following that declaration.

3.2      Costs

         The Chargor must indemnify the Chargee upon demand against, and the
         Chargee shall be entitled by the authority of this provision at any
         time to debit or charge to the Chargor or any account of the Chargor,
         all costs, whether legally due or otherwise, which the Chargee or any
         Receiver or Attorney may at any time incur in connection with:

         (a)      (secured moneys): the Secured Moneys, any Security Agreement
                  or any account of the Debtor and/or the Chargor;

         (b)      (security agreements): the preparation, negotiation,
                  execution, or completion of any Security Agreement, any
                  amendment or discharge of any Security Agreement or any
                  consent, approval, request, demand or waiver given or made
                  pursuant to a Security Agreement;

         (c)      (rectification): any actual, attempted or contemplated remedy
                  or rectification of any breach of or default under any
                  Security Agreement by any Security Party;

         (d)      (enforcement): any actual, attempted or contemplated
                  enforcement of the Security Agreements or demand for or
                  enforcement of payment of the Secured Moneys;

         (e)      (security rights): any actual, attempted or contemplated
                  exercise of any right conferred on the Chargee or any Receiver
                  or Attorney under any Security Agreement or by law;

         (f)      (security protection): any actual, attempted or contemplated
                  protection or preservation of, or defence or assertion of
                  title of the Chargor or the Chargee to, any Security Agreement
                  and/or the Charged Property;

         (g)      (insurances): any insurance indemnities or compensation
                  concerning the Charged Property or its use and enjoyment,
                  including without limitation insurances and compensation under
                  any law relating to workers' compensation;

         (h)      (reports): the survey, valuation, inspection, preservation,
                  maintenance or protection of or any report, review, audit or
                  environmental assessment relating to the Charged Property;

         (i)      (governmental inquiries): any inquiry or investigation by any
                  Governmental Agency concerning the Chargor or any transaction
                  or activity effected or carried on by the Chargor connected
                  with or capable of adversely affecting the Security
                  Agreements, the Charged Property or any transaction
                  contemplated by or effected or funded as a result of the
                  Security Agreements;

         (j)      (consultants): the engagement or retainer of solicitors,
                  counsel, advisers, experts and consultants for any of the
                  foregoing purposes or in relation to any matter of material
                  concern to the Chargee in connection with the Security
                  Agreements or the Charged Property, and in the case of
                  internal or external solicitors and counsel of the Chargee on
                  a full solicitor and own client indemnity basis; and/or

         (k)      (receipts/payments): the receipt or payment of any moneys
                  under or pursuant to, or under any transaction contemplated
                  by, any Security Agreement, including any moneys paid by the
                  Chargee by way of reimbursement to any third party.

3.3      Judgments

         In the event of any liability of the Chargor under this Charge becoming
         merged in any judgment the Chargor shall pay interest on the amount due
         for the time being under the judgment at the rate charged or chargeable
         by the Chargee in respect of the Secured Moneys to which the judgment
         relates immediately prior to the entry or making of the judgment.

3.4      Certificates

         A certificate signed by an Authorised Officer of the Chargee stating
         the amount of the Secured Moneys at a date specified in the certificate
         shall in the absence of manifest error constitute conclusive evidence
         as against the Chargor that the amount so stated is the amount of the
         Secured Moneys due from the Chargor under this Charge as at that date.

3.5      Specified Maximum Amount

         (a)      (Maximum specified amount): For the purposes of Section 282(3)
                  of the Corporations Law, this Charge shall in relation to, and
                  for the purpose of prior ranking in priority as against, any
                  other Security Interest secure prospective liabilities, as
                  defined in the Corporations Law, comprised within the Secured
                  Moneys for the time being up to a specified maximum amount of
                  $10 million.

         (b)      (Security preservation): If at any time the Secured Moneys
                  exceed the specified maximum amount referred to in paragraph
                  (a) all the Secured Moneys shall be and remain secured by this
                  Charge.

         (c)      (Full recovery): The specified maximum amount shall not limit
                  the right of the Chargee to enforce this Charge to recover the
                  full amount of the Secured Moneys, except and only to the
                  extent necessarily determined by the operation of the
                  provisions of Section 282(3) of the Corporations Law.

4        POSITIVE COVENANTS

         The Chargor must as from the date and at all times during the
         continuance of this Charge:

         (a)      (business practice): carry on its business in a proper and
                  efficient manner;

         (b)      (accounting records): keep accounting records as defined in
                  and required by the Corporations Law;

         (c)      (outgoings): duly and punctually pay and indemnify the Chargee
                  upon demand against all rents, charges and outgoings, and
                  rates, assessments and-taxes imposed by any Governmental
                  Agency, chargeable or payable at any time upon or in respect
                  of the Charged Property or upon or by the owner or occupier or
                  the Chargee if in possession as mortgagee and immediately upon
                  request deliver to the Chargee all notices received and
                  receipts for payments in relation to the foregoing;

         (d)      (governmental notices): immediately upon request by the
                  Chargee deliver to the Chargee any notice, order or other
                  document received by the Chargor from any Governmental Agency
                  in connection with the Charged Property;

         (e)      (security licence performance): perform and observe all
                  material terms and conditions of each Security Licence and
                  generally take all necessary action as to keep it valid,
                  subsisting and enforceable;

         (f)      (legal compliance): duly and punctually comply with and
                  observe all present and future legislation and all
                  requirements, orders and Authorisations of any Governmental
                  Agency in all cases where noncompliance or non-observance
                  would in the reasonable opinion of the Chargee be likely to
                  impose some charge or liability or disqualification upon any
                  material part of the Charged Property or would have a Material
                  Adverse Effect;

         (g)      (legal action): take or defend all legal proceedings at the
                  direction of the Chargee but at the full cost of the Chargor
                  that the Chargee may consider necessary or advisable for the
                  preservation, protection or recovery of the Charged Property;

         (h)      (security interest compliance): duly and punctually comply
                  with and observe all agreements and obligations binding on the
                  Chargor and contained or implied in any Security Interest,
                  charge, claim, interest or restriction on user relating to a
                  material part of the Charged Property;

         (i)      (good condition): keep the Charged Property in good repair,
                  working order and condition and from time to time make all
                  necessary and proper repairs, renewals, replacements and
                  improvements relating to the Charged Property;

         (j)      (intangible rights): preserve the currency and effectiveness
                  of its Intangible Assets, Intellectual Property and similar
                  assets material to its business at all times during any
                  applicable term, including all extensions or renewals;

         (k)      (compensation rights): diligently pursue all its rights to
                  compensation arising as a result of any legal action by a
                  Government Agency preventing or impeding the performance of
                  any Security Agreement or requiring the compulsory acquisition
                  or divestment of any Charged Property;

         (1)      (land acquisition): immediately notify the Chargee upon the
                  acquisition of any real property and, upon request by the
                  Chargee, execute pursuant to Clause 2.4 a legal or statutory
                  mortgage over that real property in favour of the Chargee;

         (m)      (subsidiary acquisition): immediately notify the Chargee upon
                  the acquisition, formation or incorporation by the Chargor of
                  any Subsidiary whether through purchase or subscription of
                  shares or by any other means and, upon request by the Chargee,
                  procure that Subsidiary to execute pursuant to Clause 2.4 a
                  specific and floating charge over all its present and future
                  assets, property and undertaking including its uncalled or
                  unpaid capital and share premiums in favour of the Chargee;

         (n)      (inspection): permit and procure any Subsidiary to permit the
                  Chargee, or any Authorised Officer, agent, adviser or
                  consultant of or other person authorised by the Chargee, upon
                  reasonable notice at any time to enter upon its land or
                  premises, inspect the Charged Property and take copies or
                  extracts from all accounting records, financial statements,
                  business, property or other records, statements, vouchers and
                  valuations and all other documents relating to the Chargor,
                  its Subsidiaries, the Charged Property or the Security
                  Agreements; and

         (o)      (assistance): for any purpose relating to this Charge do
                  everything within its power and control to provide and procure
                  that the officers, employees, agents and advisers of the
                  Chargor and its Subsidiaries provide all necessary information
                  and assistance to the Chargee or any Authorised Officer, agent
                  advisor, consultant of or other person authorised by the
                  Chargee.

5        INSURANCE COVENANTS

5.1      Security Insurances

         The Chargor must as from the date and at all times during the
         continuance of this Charge:

         (a)      (insurances):  in the name of the Chargor and the Chargee:

                  (i)      insure the Charged Property of an insurable nature to
                           its full replacement or reinstatement value or a
                           lesser amount approved by the Chargee; and

                  (ii)     take out public risk, worker's compensation, product
                           liability and business interruption insurance and any
                           other insurance which the Chargee may reasonably
                           request or approve with respect to the Charged
                           Property,

                  in the manner and to the extent that is reasonable and
                  customary for property of the nature of the Charged Property;

         (b)      (premium payments): duly and punctually pay all premiums and
                  other costs necessary for effecting and maintaining in force
                  each insurance policy;

         (c)      (insurers): take out each insurance policy with an independent
                  and reputable insurer approved by the Chargee;

         (d)      (information): deliver to the Chargee certificates of currency
                  and other details reasonably requested by the Chargee in
                  relation to the insurances;

         (e)      (annual report): upon request by the Chargee, provide to the
                  Chargee within 90 days after the end of the financial year of
                  the Chargor in each year a report as to the insurances as at
                  the date of the report and claims and other material events
                  with respect to the insurances during the previous 12 months;

         (f)      (non-prejudice): not do, permit or omit anything which may
                  prejudice any insurance policy or any potential claim under
                  the insurance policy;

         (g)      (chargee collection): do all things and provide all documents,
                  evidence and information necessary to enable the Chargee to
                  collect or recover any moneys due or to become due in respect
                  of any insurance policy;

         (h)      (claim notification):  notify the Chargee of:

                  (i)      the occurrence of any event giving rise to any claim
                           under an insurance policy in excess of $5,000; and

                  (ii)     any material variation of any insurance policy,

                  as soon as possible after it becomes aware of that event or
                  variation; and

         (i)      (non-cancellation): without the prior consent of the Chargee,
                  not do, permit or omit anything to cause the cancellation of,
                  or a material change or reduction in, any insurance policy.

5.2      Insurance Policy Contents

         The Chargor must, to the extent reasonably and commercially
         practicable, procure that each insurance policy effected pursuant to
         this Charge contains terms and conditions reasonably satisfactory to
         the Chargee and, without, limitation, provides that:

         (a)      (loss payee):  the Chargee is named as loss payee;

         (b)      (deductibles): the amount of any excess or deductible payable
                  by the insured in respect of any claim shall not exceed the
                  customary amount for policies of a similar kind;

         (c)      (set-off waiver): the insurer waives its right to set off or
                  counter claim or make any other deduction or withholding as
                  against the Chargee;

         (d)      (premium waiver): the insurer waives all claims for insurance
                  premiums or costs against the Chargee;

         (e)      (termination restriction): if any premiums or other amounts in
                  respect of any insurance policy are not paid, the insurer must
                  not terminate the policy unless it has given prior notice of
                  not less than 15 days to the Chargee and the premiums or other
                  amounts have not been paid by the Chargor or any other person
                  prior to the expiry of the period of that notice; and

         (f)      (cancellation restriction): the insurer must not refuse or
                  reduce a claim or cancel or avoid the insurance policy in
                  relation to the interest of the Chargee by reason of the
                  fraud, action, neglect or other prejudicial conduct of, or
                  breach of any term, warranty, declaration or condition of the
                  insurance policy by, any other person.

5.3      Chargee Rectification

         If any default is made by the Chargor in effecting or maintaining any
         insurance policy required by this Charge or if any insurance policy
         becomes void or voidable for any reason, the Chargee may without
         obligation effect or maintain that insurance policy at the full cost of
         the Chargor.

5.4      Insurance Proceeds

         The Chargor must use the proceeds of the insurance policies received in
         respect of any Charged Property which has been destroyed, lost or
         damaged to the extent necessary in the replacement, repair or
         reinstatement of the Charged Property, except that:

         (a)      (excess proceeds): where the proceeds exceed the cost of
                  replacement, repair or reinstatement, the excess must be paid
                  to the Chargee to be applied to that extent in satisfaction of
                  the Secured Moneys; and

         (b)      (debt repayment): where the proceeds are received directly by
                  the Chargee, if:

                  (i)      an Event of Default is subsisting; or

                  (ii)     replacement, repair or reinstatement of the Charged
                           Property by the Chargor is precluded,

                  the Chargee must apply the proceeds together with all accrued
                  interest to that extent in satisfaction of the Secured Moneys,
                  whether due or payable or not, but otherwise the Chargee must
                  account for the proceeds to the Chargor.

6        NEGATIVE COVENANTS

         The Chargor must not at any time during the continuance of this Charge
         without the prior consent of the Chargee:

         (a)      (security interests): execute or create, or attempt to execute
                  or create, any Security Interest over or affecting the Charged
                  Property;

         (b)      (assignments): convey, transfer, assign, deal with, dispose of
                  or make any bailment of the Charged Property in relation to
                  which this Charge operates as a specific charge;

         (c)      (leases): lease the Charged Property or accept any surrender
                  of lease or surrender or forfeit any lease comprising the
                  Charged Property in relation to which this Charge operates as
                  a specific charge;

         (d)      (book debts): assign factor, discount or otherwise deal with
                  or dispose of any Book Debts in relation to which this Charge
                  operates as a specific charge, except for:

                  (i)      collection and realisation in the usual course of
                           business; and

                  (ii)     the credit or payment of the Collection Proceeds to
                           or into the Designated Bank Account or otherwise in
                           accordance with any direction or consent of the
                           Chargee at any time;

         (e)      (consignments, trusts): enter into any agreement, arrangement
                  or course of dealing whereby it agrees specifically to account
                  to or hold upon trust for any person the proceeds of sale,
                  including cash, book and other debts and negotiable and
                  similar instruments, arising out of or in connection with any
                  goods in its possession sold by the Chargor, whether or not in
                  the ordinary course of its business, with the express or
                  implied authority of their owner, being a person other than
                  the Chargor, and must not attempt to enter into any such
                  agreement, arrangement or course of dealing;

         (f)      (sale and lease-back): convey, transfer, assign, deliver, deal
                  with or dispose of the Charged Property in relation to which
                  this Charge for the time being operates as a floating charge
                  with the intention or for the purpose directly or indirectly
                  of retaining or accepting delivery of possession of the
                  Charged Property under or pursuant to any agreement or
                  arrangement, whether or not containing an option for the
                  Chargor to purchase, and must not attempt to make any such
                  conveyance, transfer, assignment, delivery, dealing or
                  disposition;

         (g)      (deposits): deposit, or attempt to deposit, any funds or
                  moneys with any person, other than the Chargee, or pursuant to
                  any Security Agreement, upon terms or in circumstances where:

                  (i)      those funds or moneys are repayable to or
                           withdrawable by the Chargor upon condition that the
                           Chargor shall pay or discharge any other
                           indebtedness, whether present or future, actual or
                           contingent, or perform or observe any other
                           obligation or agreement due to or made with that
                           person or any other person; or

                  (ii)     in relation to the deposit that person stipulates for
                           or would otherwise for the time being be entitled
                           pursuant to any express agreement with the Chargor to
                           claim or assert any right or equity of set-off or
                           counterclaim, excluding any such right or equity
                           arising by operation or implication of any law or by
                           virtue of Chargee's custom or usage;

         (h)      (charge protection): do or suffer any act, omission or thing
                  which might cause this Charge to be prejudicially affected or
                  any material part of the Charged Property to become liable to
                  surrender, forfeiture, cancellation or prejudice in any manner
                  or subject to any charge or liability imposed by any
                  Government Agency;

         (i)      (alterations): except as required by the terms of any lease
                  existing as at the date of this Charge, pull down, alter,
                  extend or remove the Charged Property in relation to which
                  this Charge operates as a specific charge or erect any further
                  improvements on the Charged Property;

         (j)      (statutory protection): take any steps to obtain protection
                  under any legislation or take any steps pursuant to any
                  legislation which provides for the curtailment, postponement,
                  defeat, extinguishment or suspension of the rights of the
                  Chargee in relation to the Charged Property without giving to
                  the Chargee prior notice of its intention to do so; or

         (k)      (surrenders): surrender the Charged Property to, or exchange
                  the Charged Property for other land of any tenure or estate
                  with, any Governmental Agency or other person, whether or not
                  the Chargor gives or receives any money or other consideration
                  for doing so.

7        EXPRESS CRYSTALLISATION

7.1      Crystallisation Circumstances

         The floating charge created by this Charge shall automatically
         crystallise and subsequently operate as a specific charge instantly and
         immediately:

         (a)      (crystallisation notice): upon receipt by the Chargor of a
                  notice given by the Chargee at any time, whether prior or
                  subsequent to the occurrence of an Event of Default, that this
                  Charge shall crystallise, in relation to all or any part of
                  the Charged Property as specified in the notice; and

         (b)      (crystallisation event): upon the occurrence of a
                  Crystallisation Event, in relation to all the Charged
                  Property.

7.2      Implicit Crystallisation

         The floating charge created by this Charge shall crystallise upon the
         occurrence of any act, event or circumstance in accordance with any
         term implied by law into this Charge, in addition to any express term
         contained in this Charge.

7.3      De-crystallisation

         The Chargee may by notice to the Chargor waive the crystallisation of
         the floating charge created by this Charge for any reason, whether
         pursuant to an express or implied term, to operate with retrospective
         or prospective effect as specified in the notice.

7.4      Crystallised Assets

         The Chargor must at all times subsequent to the crystallisation of the
         floating charge created by this Charge in relation to any Charged
         Property, including without limitation Cash Assets, pay, apply or
         otherwise deal with that Charged Property in accordance with any
         direction from the Chargee to the Chargor at any time.

8        DEFAULT

8.1      Events of Default

         The occurrence of any of the following events shall constitute an Event
         of Default:

         (a)      (money payments): any Security Party fails to make, in the
                  manner and currency required, any payment on the due date of
                  any moneys due under any Security Agreement;

         (b)      (non-monetary obligations): any Security Party fails to
                  perform or observe any other obligation under any Security
                  Agreement and, if in the opinion of the Chargee the failure is
                  capable of remedy, within 14 days following notice by the
                  Chargee requiring that Security Party to remedy the failure;

         (c)      (misrepresentation): any representation, warranty, undertaking
                  or statement made or deemed to be made or repeated by any
                  Security Party in any Security Agreement, or in any document
                  delivered to the Chargee under, pursuant to or in connection
                  with any Security Agreement, is not complied with or proves to
                  be untrue in any respect which would have a Material Adverse
                  Effect;

         (d)      (cross-default):

                  (i)      any Financial Indebtedness of any Security Party in
                           excess of $5,000 or its equivalent in other
                           currencies becomes due and payable or capable of
                           being declared due and payable prior to its stated
                           maturity after the expiration of any applicable
                           period of grace;

                  (ii)     any Security Party fails to pay when due after the
                           expiration of any applicable period of grace any
                           Financial Indebtedness in excess of $5,000 or its
                           equivalent in other currencies; or;

                  (iii)    any Security Interest over any assets of any Security
                           Party securing an amount in excess of $5,000 or its
                           equivalent in other currencies is or becomes
                           enforceable in consequence of any breach or event of
                           default under the terms of that Security Interest;

         (e)      (receiver): or a receiver and/or manager is appointed over, or
                  a secured creditor takes possession of, any assets of any
                  Security Party;

         (f)      (administrator): an administrator of any Security Party is
                  appointed;

         (g)      (execution): a distress, attachment or other execution is
                  levied or enforced against any assets of any Security Party
                  for any amount exceeding $5,000 or its equivalent in other
                  currencies;

         (h)      (winding up):

                  (i)      an application for the winding up or dissolution of
                           any Security Party, not being frivolous or vexatious
                           or wholly disputed in good faith and in the opinion
                           of the Chargee on reasonable and substantial grounds,
                           is filed;

                  (ii)     an order is made for the winding up or dissolution of
                           any Security Party; or

                  (iii)    a resolution is passed for the winding up or
                           dissolution of any Security Party, except with the
                           prior consent of the Chargee for the purposes of a
                           solvent reconstruction or amalgamation;

         (i)      (arrangement/composition): without the prior consent of the
                  Chargee, any Security Party enters into any scheme of
                  arrangement or composition with its creditors generally or any
                  class of creditors;

         (j)      (insolvency): any Security Party stops payment generally or is
                  unable to pay its debts when they fall due or within the
                  meaning of Section 460(2) of the Corporations Law;

         (k)      (business cessation): any Security Party ceases or threatens
                  to cease to carry on its business without the prior consent of
                  the Chargee;

         (1)      (uncalled capital release): any Security Party passes a
                  resolution rendering any of its uncalled share capital
                  incapable of being called up except in its winding up;

         (m)      (capital reduction): without the prior consent of the Chargee,
                  any Security Party:

                  (i)      reduces its capital or purchases its own shares,
                           excluding the redemption of redeemable preference
                           shares;

                  (ii)     passes, or calls of a meeting to consider, a
                           resolution to reduce its capital, to authorise the
                           purchase of its own shares or under section 188(2) or
                           205(10) of the Corporations Law or any equivalent
                           provision; or

                  (iii)    applies to a court to call any such meeting or to
                           sanction any such resolution, reduction or purchase;

         (n)      (inspector): any inspector is appointed pursuant to the
                  Corporations Law to investigate all or any part of the affairs
                  of any Security Party in relation to a possible contravention
                  of the Corporations Law, where the appointment would have a
                  Material Adverse Effect;

         (o)      (memorandum/articles amendment): without the prior consent of
                  the Chargee, the memorandum or articles of association of any
                  Security Party are amended in any manner which would have a
                  Material Adverse Effect;

         (p)      (control change):  without the prior consent of the Chargee:

                  (i)      any Security Party becomes a Subsidiary of another
                           person subsequent to the date of this Charge; or

                  (ii)     any person becomes entitled to hold, exercise or
                           control, directly or indirectly, beneficially or
                           otherwise, more than 50 per centum of the issued
                           share capital or voting power at meetings of
                           directors or shareholders of any Security Party, not
                           being a person so entitled at the date of this
                           Charge;

         (q)      (authorisation revocation): any Authorisation expires or is
                  repealed, revoked, terminated, cancelled or withheld without
                  replacement or renewal or is amended or modified, which would
                  have a Material Adverse Effect;

         (r)      (security vitiation):

                  (i)      any provision of a Security Agreement is terminated
                           or is or becomes void, illegal, invalid,
                           unenforceable or of limited force and effect;

                  (ii)     any person other than the Chargee becomes entitled to
                           terminate or rescind any provision of a Security
                           Agreement; or

                  (iii) any person makes any claim or allegation to that effect,

                  which would have a Material Adverse Effect;

         (s)      (compulsory acquisition): any Governmental Agency compulsorily
                  acquires or requires the sale or divestment of all or a
                  material part of the Charged Property;

         (t)      (governmental interference): any appropriation, restraint,
                  restriction, prohibition, intervention or law made or imposed
                  by any Governmental Agency prevents or impedes the performance
                  of any Security Agreement;

         (u)      (litigation): any Security Party is affected by any
                  litigation, arbitration, tax claim, dispute or administrative
                  proceeding, not being frivolous or vexatious or wholly
                  disputed in good faith and in the opinion of the Chargee on
                  reasonable and substantial grounds, the final adverse outcome
                  of which would have a Material Adverse Effect; or

         (v)      (environmental event):

                  (i)      any Government Agency or other person takes any
                           action, or makes or imposes any claim or requirement
                           for substantial expenditure or cessation or
                           alteration of activity, under any Environmental Law,
                           which would have a Material Adverse Effect; or

                  (ii)     any circumstance arises which in the reasonable
                           opinion of the Chargee acting on the advice of an
                           independent expert may give rise to any such action,
                           claim or requirement.

8.2      Enforcement

         At any time following the occurrence of any Event of Default, whether
         or not within the control of the Chargor, which is subsisting the
         Chargee may:

         (a)      (debt acceleration): declare the Secured Moneys to be
                  immediately due and payable, in which case the Secured Moneys
                  shall become immediately due and payable; and/or

         (b)      (security enforcement): enforce this Charge and/or any
                  Collateral Security and exercise all its rights arising
                  consequent upon default, whether conferred or arising pursuant
                  to this Charge and/or any other Collateral Security or
                  otherwise.

8.3      Default Rectification

         If the Chargor defaults in the due performance or observance of any
         agreement or obligation or commits a breach of any representation or
         warranty contained in this Charge, the Chargee shall be entitled,
         without obligation and without prejudice to its other rights, to do or
         procure all things and to pay or procure payment of all moneys
         necessary to rectify that default or breach to the satisfaction of the
         Chargee at the full cost of the Chargor.

9        ENFORCEMENT

9.1      Appointment of Receiver

         At any time after the Secured Moneys shall have become payable and/or
         this Charge become enforceable the Chargee or its Authorised Officer
         may:

         (a)      (appointment): appoint any person or persons to be a Receiver
                  of the whole or any part of the Charged Property; and

         (b)      (replacement): remove any Receiver and in case of the removal,
                  retirement or death of any Receiver appoint a replacement.

9.2      Powers

         A Receiver shall, without need for the consent of the Chargor, have the
         following powers unless specifically excluded by the terms of his
         appointment:

         (a)      (possession): to take possession of, collect, get in and enter
                  into receipt of the rents and profits of the Charged Property;

         (b)      (collection): to convert, liquidate or reduce the Charged
                  Property into money or immediately available funds;

         (c)      (contracts): to enter into any contract, agreement,
                  arrangement or obligation with any person for any purpose
                  connected with this Charge, or the Charged Property or the
                  powers and functions of the Receiver upon and subject to such
                  terms and conditions as the Receiver thinks fit;

         (d)      (contractual performance): to perform, observe, carry out and
                  enforce specific performance of, exercise or refrain from
                  exercising the Chargor's rights and powers under, or otherwise
                  obtain the benefit of, vary or rescind any contracts, rights,
                  instruments and arrangements comprising the Charged Property
                  entered into or held by the Chargor or the Receiver in the
                  exercise of his powers and functions, in the name of the
                  Chargor or otherwise;

         (e)      (employees): to engage or employ managers, solicitors,
                  officers, auctioneers or other employees or agents for or in
                  relation to the performance of any rights of the Chargee or
                  the powers and functions of the Receiver conferred by this
                  Charge at such salaries or remuneration as the Receiver thinks
                  fit;

         (f)      (investment):

                  (i)      to invest, deposit or hold the Charged Property and
                           its proceeds of sale or realisation in such form or
                           mode of investment for the time being as the Receiver
                           in his absolute discretion thinks fit;

                  (ii)     with similar power to vary, transpose or re-invest
                           the investments or deposits at any time; and

                  (iii)    if any Secured Moneys for the time being remain
                           contingent, to exercise the foregoing powers until
                           the Secured Moneys shall cease to be contingent;

         (g)      (bank accounts): to operate to the exclusion of the Chargor on
                  any Chargee account in the name of the Chargor relating to the
                  Charged Property, whether alone or jointly, and withdraw any
                  moneys to the credit of the account;

         (h)      (cheques): to sign and endorse or authorise any person to sign
                  and endorse cheques, promissory notes, bills of exchange and
                  other negotiable instruments, in the name of the Chargor or
                  otherwise-

         (i)      (business): to carry on or concur in carrying on the business
                  of the Chargor and make and effect all repairs, purchases and
                  insurances;

         (j)      (borrowing):  with the prior consent of the Chargee:

                  (i)      to borrow moneys or raise financial accommodation
                           from the Chargee or any other person at any time for
                           the purposes of the powers or functions of the
                           Receiver, whether in the name of the Chargor or
                           otherwise;

                  (ii)     to secure moneys or accommodation borrowed or raised
                           by Security Interest over the Charged Property,
                           whether ranking in priority to, equally with or
                           subsequent to this Charge,

                  without the Chargee being bound to inquire as to the necessity
                  for or propriety of that borrowing or raising of financial
                  accommodation or being responsible for the misapplication or
                  non-application of any moneys so borrowed or raised;

         (k)      (property management): to erect, pull down, alter, rebuild
                  and/or add to any new or existing building or improvement on
                  the Charged Property comprising land and do all acts which the
                  Chargor might do in the ordinary conduct of its business for
                  the protection or improvement of, or obtaining income or
                  returns from, the Charged Property;

         (1)      (leasing): to lease, let, sublease or sublet the Charged
                  Property:

                  (i)      whether or not the Receiver shall have taken
                           possession;

                  (ii)     whether or not preparatory to sale;

                  (iii)    whether in the name of the Chargor or otherwise;

                  (iv)     for any term of years, from year to year, or for a
                           term less than a year;

                  (v)      with or without an option to purchase or taking a
                           premium; and

                  (vi)     at such rent and generally upon and subject to such
                           terms and conditions as the Receiver thinks fit;

         (m)      (sale):  to sell or concur in selling the Charged Property:

                  (i)      whether or not the Receiver shall have taken
                           possession;

                  (ii)     by public auction, private treaty, tender or any
                           combination of those methods;

                  (iii)    for cash or on credit;

                  (iv)     in one lot or in parcels;

                  (v)      with or without special conditions or stipulations as
                           to title or time or manner of payment of purchase
                           moneys or otherwise;

                  (vi)     with power to permit time for payment of the purchase
                           moneys, with or without interest, secured by mortgage
                           on the property sold or upon other security or
                           without security; and

                  (vii)    generally upon and subject to such terms and
                           conditions as the Receiver thinks fit, without
                           responsibility for consequential loss;

         (n)      (resale): to buy in and rescind or vary any contract for sale
                  of the Charged Property and resell the Charged Property
                  without responsibility for loss;

         (o)      (transfers): to execute transfers, assignments, deeds and
                  assurances of the Charged Property, in the name and on behalf
                  of the Chargor or otherwise;

         (p)      (options): to grant or accept options to or exercisable by or
                  on behalf of the Chargor or any person for the purpose of or
                  in connection with the sale, purchase, leasing or hiring of
                  the Charged Property or other assets owned or possessed by the
                  Chargor or that other person;

         (q)      (fixtures): to sever fixtures belonging to the Chargor and
                  sell them separately from the other Charged Property;

         (r)      (realisation): to sell, lease or sublease the Charged Property
                  together with assets subject to any Collateral Security by one
                  contract, at one price or rent or in any manner the Receiver
                  thinks fit, and apportion all costs, purchase moneys or rents
                  between the assets sold, leased or subleased;

         (s)      (receipts): to give notices of this Charge and effectual
                  receipts for all moneys and other assets which come into the
                  hands of the Receiver in the exercise of the powers and
                  functions of the Receiver;

         (t)      (compromises): to make any arrangement or compromise which the
                  Receiver thinks expedient in the interests of the Chargee;

         (u)      (legal actions): to take proceedings at law or in equity or
                  bankruptcy, in the name of the Chargor or otherwise, for the
                  purposes of the powers and functions of the Receiver;

         (v)      (liquidations): to make debtors bankrupt, wind up companies
                  and to do all things in connection with any bankruptcy or
                  winding up which the Receiver thinks necessary for the
                  recovery or protection of the Charged Property or the security
                  of the Chargee;

         (w)      (delegation): with the prior consent of the Chargee, to
                  delegate to any person the powers or functions of the
                  Receiver;

         (x)      (supplemental): to do all things necessary or convenient to
                  perform or observe the obligations of the Chargor contained in
                  this Charge; and

         (y)      (incidental): to do all other acts and things without
                  limitation as the Receiver thinks expedient in the interests
                  of the Chargee or for the purposes of the powers or functions
                  of the Receiver.

9.3      Agency

         (a)      (Pre-liquidation): A Receiver shall be the agent of the
                  Chargor who shall alone be responsible for the acts and
                  defaults of the Receiver.

         (b)      (Post-liquidation): The Receiver shall be or continue as agent
                  of the Chargor subsequent to the commencement of the winding
                  up of the Chargor to the fullest extent permitted by law but
                  otherwise shall be the agent of the Chargee.

9.4      Chargee Powers

         The Chargee may without notice exercise the powers conferred on a
         Receiver pursuant to this Charge at any time subsequent to the
         occurrence of an Event of Default which is subsisting, whether or not a
         Receiver has been previously appointed.

9.5      Receivership Termination

         The Chargee may at any time terminate the receivership or give up
         possession in relation to the Charged Property.

9.6      Sale Proceeds

         (a)      (Purchase money receipts): The Chargee or Receiver shall
                  account only for the amount of purchase moneys actually
                  received by the Chargee or Receiver for the sale, transfer or
                  assignment of the Charged Property, including without
                  limitation where the Charged Property is transferred subject
                  to a Security Interest back to secure unpaid purchase moneys.

         (b)      (Sale shortfall): The Chargor remains liable to the Chargee to
                  pay the Secured Moneys in excess of the amount of purchase
                  moneys actually received.

9.7      Involuntary Loss

         (a)      (Debt recovery): The Chargee or Receiver shall not be bound
                  to:

                  (i)      give notice of this Charge to any debtor of the
                           Chargor or other person;

                  (ii)     enforce payment of any moneys or debts payable to the
                           Chargor comprising the Charged Property; or

                  (iii) take any steps or proceedings for that purpose,

                  unless the Chargee or Receiver thinks fit.

         (b)      (Enforcement conduct): The Chargee or Receiver shall not be
                  answerable for any omission, delay, involuntary loss or
                  irregularity occurring in connection with the exercise or
                  non-exercise of the powers conferred by this Charge on the
                  Chargee or Receiver.

9.8      Purchaser Protection

         (a)      (Protected parties): This Charge shall benefit and protect any
                  person ("protected party") being:

                  (i)      a purchaser, lessee, sublessee or other person having
                           dealings with or paying moneys to;

                  (ii)     a public official responsible for the administration
                           of any public register relating to the title to
                           property or Security Interests affecting property or
                           created by any debtor or any officer acting on behalf
                           of that official in relation to the tender for
                           registration of any document executed by; or

                  (iii)    any person claiming title or interest under any act
                           or document effected or executed by,

                  the Chargee or any Receiver or Attorney in the exercise or
                  purported exercise of powers conferred by this Charge.

         (b)      (Defects): The benefit and protection of this Charge shall
                  apply to or in relation to any fact, matter, thing or
                  circumstance prejudicially affecting the validity,
                  effectiveness, propriety and regularity of the exercise of
                  powers conferred by this Charge on the Chargee or Receiver or
                  Attorney ("defect"), including without limitation that:

                  (i)      the Secured Moneys are not legally due or payable or
                           have been fully paid;

                  (ii)     no Event of Default has occurred or is subsisting;

                  (iii)    the Receiver or Attorney has not been validly
                           appointed;

                  (iv)     any preliminary or other condition for the exercise
                           of powers has not been fulfilled;

                  (v)      any exercise or purported exercise of powers is
                           improper or irregular;

                  (vi)     any document has not been duly executed; or

                  (vii)    any moneys received have been or may be misapplied or
                           improperly accounted for.

         (c)      (Defect inquiry exclusion): A protected party shall not be
                  required to inquire into the actual or potential occurrence or
                  existence of any defect.

         (d)      (Defect notice exclusion): A protected party shall not be
                  affected by notice, express, implied, imputed or constructive,
                  of the occurrence or existence of any actual or potential
                  defect.

         (e)      (Document conclusiveness): A protected party shall be entitled
                  to treat an act or document effected or executed by the
                  Chargee or Receiver or Attorney as conclusive evidence of its
                  validity and effectiveness, without necessity for proof of any
                  other fact, matter, thing or circumstance to exclude the
                  occurrence or existence of any actual or potential defect or
                  any objection to its registration in any public register by
                  reason of any defect.

10       MONEY RECOVERY

10.1     Compensation Claims

         (a)      (Chargee receipt): The Chargee shall receive all moneys which
                  may become payable, subsequent to an Event of Default which is
                  subsisting, by way of purchase moneys, compensation or
                  otherwise in respect of the Charged Property.

         (b)      (Claims): The Chargee shall have full power to claim,
                  compromise, agree, settle and execute releases for the
                  purchase, compensation or other moneys payable, for both the
                  Chargee and the Chargor without incurring liability to the
                  Chargor, whether or not the moneys are in any circumstances
                  potentially or contingently refundable or repayable.

10.2     Insurance Claims

         The Chargee shall have full power, subsequent to an Event of Default
         which is subsisting, to make, enforce, compromise and settle all claims
         in the event of loss or damage to the Charged Property arising under
         any Security Insurance, whether in the name of the Chargee, the Chargor
         or both, and sue for, recover and give discharges for the money
         proceeds.

10.3     Enforcement Proceeds

         The Chargee or Receiver shall apply all moneys received by or on behalf
         of the Chargee, subsequent to enforcement of this Charge, in the
         following order:

         (a)      (costs): in payment of the costs of and incidental to the
                  appointment of the Receiver, if any, and the exercise of the
                  powers of, and all outgoings indebtedness and liabilities paid
                  or incurred by the Chargee or Receiver;

         (b)      (remuneration): in payment of remuneration to the Receiver, if
                  any, at such rate as may be agreed between the Receiver and
                  the Chargee at the time of or following his appointment;

         (c)      (secured moneys): in or towards the satisfaction of the
                  Secured Moneys in such order as the Chargee may at any time
                  require; and

         (d)      (surplus): the surplus, if any, shall be paid to the Chargor
                  or any other person entitled.

10.4     Receipts

         The Chargee in applying enforcement proceeds in or towards the
         satisfaction of the Secured Moneys shall credit the Chargor only with
         the amount of moneys actually received by the Chargee in cash as from
         the date of receipt.

10.5     Surplus

         (a)      (Interest exclusion): Surplus moneys in the hands of the
                  Chargee payable to the Chargor after satisfaction of the
                  Secured Moneys shall not carry interest.

         (b)      (Final credit): The Chargee may pay the surplus moneys to the
                  credit of an account in the name of the Chargor in the books
                  of the Chargee or any other bank or other financial
                  institution without the Chargee being under any further
                  liability in respect of the surplus moneys.

11       STATUTORY PROVISIONS

11.1     Additional Statutory Powers

         The powers conferred on a mortgagee or a receiver and/or manager by law
         shall be additional to the express powers conferred by this Charge or
         any Collateral Security on the Chargee or any Receiver or Attorney but
         by virtue of this provision shall also be deemed to be conferred by and
         contained in this Charge.

11.2     Statutory Power Modification

         To the fullest extent permitted by law, additional legal powers are
         exercisable immediately following the occurrence of an Event of Default
         which is subsisting, without any notice or expiration of time being
         necessary, and are excluded or varied only to the extent that they are
         inconsistent with the express terms of this Charge or any Collateral
         Security.

11.3     Leasing Exclusion

         The Chargor is not entitled to surrender any lease, accept any
         surrender of lease or exercise any power of leasing conferred on the
         Chargor by law, except as expressly permitted or contemplated by any
         Security Agreement.

11.4     Statutory Notice Exclusion

         To the fullest extent permitted by law, the requirement for notice or
         lapse of time or compliance with any procedure under any legislation,
         including without limitation Section 57 of the Real Property Act 1900
         or Section Ill of the Conveyancing Act 1919 of New South Wales or any
         equivalent statutory provision in force in any State or Territory,
         prior to enforcement or exercise of any power under this Charge or any
         Collateral Security by the Chargee is dispensed with and excluded.

12       ATTORNEY

12.1     Appointment

         The Chargor under and by virtue of this Charge irrevocably appoints the
         Chargee, every Authorised Officer of the Chargee and any Receiver
         severally the Attorney of the Chargor, without rendering the Chargee
         liable as mortgagee in possession and with full power for the Chargee
         at any time to appoint a substitute and revoke any appointment.

12.2     Functions

         An Attorney may prior or subsequent to the occurrence of an Event of
         Default perform and effect all acts and things which:

         (a)      (chargor obligations): the Chargor should perform or effect
                  under its agreements contained or implied in this Charge;

         (b)      (chargee powers): the Chargee may perform or effect under the
                  powers conferred by this Charge or by law; or

         (c)      (security protection): the Chargee in its discretion considers
                  necessary or desirable for the effectiveness of the security
                  of this Charge or the protection or sale of the Charged
                  Property,

         whether in the name of the Chargor or the Chargee or Attorney, at the
         full cost of the Chargor.

13       COLLATERAL SECURITY

13.1     Merger Exclusion

         This Charge because of its creation or provisions or any other reason
         shall not merge with, discharge, postpone or otherwise affect
         prejudicially any Collateral Security nor affect any or demand of the
         Chargee at any time against any person, whether as surety or otherwise.

13.2     Collateral Remedies

         A Collateral Security shall not in any way prejudicially affect the
         provisions and rights of the Chargee contained or implied in this
         Charge.

14       CONTINUING SECURITY

14.1     Continuing Account

         This Charge shall be a continuing security and not be wholly or
         partially discharged by the payment at any time of any Secured Moneys,
         settlement of account or other matter or thing and apply to the balance
         of the Secured Moneys at any time until a final discharge of this
         Charge has been given to the Chargor.

14.2     Contingent Liabilities

         The Chargor shall not be entitled to a final discharge of this Charge
         so long as there is any actual or contingent liability of the Chargor
         to the Chargee, or the Chargee for or on behalf of or in respect of the
         Chargor, comprising part of the Secured Moneys, whether or not in any
         case any contingent liability in existence at any time is at that time
         presently capable of being ascertained.

15       INDEMNITY

15.1     Defaults

         The Chargor must at any time indemnify the Chargee upon demand against
         any loss or cost which the Chargee may incur as a consequence of any
         default in payment of any amount due by the Chargor under any Security
         Agreement, including without limitation principal, interest and costs,
         or the occurrence of an Event of Default.

15.2     Investigations

         The Chargor must also at any time indemnify the Chargee upon demand
         against any loss or cost, including without limitation legal costs,
         which the Chargee may incur in investigating any act, omission or event
         which with the giving of notice and/or expiry of time would become an
         Event of Default.

16       STAMP DUTIES

16.1     Liability

         The Chargor must promptly within the applicable period prescribed by
         law and in any event immediately pay to the Chargee upon demand an
         amount equal to all stamp, transaction, registration and similar taxes,
         including fines and penalties, which may be determined to be payable in
         respect of or in connection with:

         (a)      (security agreements): the execution, delivery, performance or
                  enforcement of any Security Agreement;

         (b)      (funding increases): the funding or further or additional
                  funding of or any increase in financial accommodation by the
                  Chargee to the Chargor at any time pursuant to or secured by
                  any Security Agreement;

         (c)      (asset situs): the situs or change of situs at any present or
                  future date of the or any Charged Property; or

         (d)      (receipts/payments): the receipt or payment of any moneys
                  under any transaction contemplated by any Security Agreement,
                  including moneys paid by the Chargee by way of reimbursement
                  to any third party.

16.2     Financial Institutions Duty

         Taxes shall include any financial institutions duty, bank debits tax or
         other duties or taxes payable by return and duties or taxes passed on
         to the Chargee by any bank or financial institution.

16.3     Indemnity

         The Chargor shall indemnify the Chargee upon demand against all
         liability with respect to or resulting from delay or omission to pay
         taxes.

17       ASSIGNMENT

17.1     Chargee Assignment

         The Chargee may at any time assign its rights under this Charge and any
         Collateral Security, subject to the provisions of any other Security
         Agreement.

17.2     Assignee Secured Moneys

         In the event of the assignment of this Charge by the Chargee, the
         Secured Moneys shall include all liabilities, indebtedness and
         obligations, present or future, actual or contingent, due from or
         payable by the Chargor to the assignee, whether or not incurred prior
         to or in contemplation of that assignment.

18       NOTICES

         All written notices to or by a party to this Charge shall:

         (a)      (authorised signatory): be signed by an Authorised Officer of
                  the sender; and

         (b)      (service):  be deemed to be duly given or made:

                  (i)      in the case of delivery in person or by post or
                           transmission by facsimile, transmission, when
                           delivered, left or received to or at the address or
                           number of the recipient specified in this Charge or
                           most recently notified to the sender; or

                  (ii)     in the case of telex, on receipt by the sender of the
                           answerback code of the recipient at the end of
                           transmission,

                  but if delivery or receipt does not occur, or occurs later
                  than 4 p.m. local time, on a day on which business is
                  generally carried on in the place to which the written notice
                  is sent, it shall be deemed to have been duly given or made at
                  the commencement of the next business day in that place.

19       GOVERNING LAW AND JURISDICTION

19.1     Governing Law

         This Charge shall be governed by and construed in accordance with the
         laws of the State of New South Wales.

19.2     Jurisdiction

         Any legal action or proceedings with respect to this Charge against the
         Chargor or any of its property and assets may be brought in the courts
         of the State of New South Wales ("State Courts") and, by execution and
         delivery of this Charge, the Chargor:

         (a)      (submission): accepts, for itself and in respect of its
                  property and assets, generally and unconditionally the
                  non-exclusive jurisdiction of the State Courts;

         (b)      (convenient forum): in relation to any action or proceedings
                  in the State Courts at any present or future time, the Chargor
                  irrevocably waives any claim or objection as to venue or
                  inconvenience of forum; and

         (c)      (service): consents to service of process out of the State
                  Courts in any action or proceedings, effective upon receipt,
                  by the mailing of copies of process by registered or certified
                  airmail postage prepaid to it at its address for service of
                  written notices for the purposes of this Charge.

20       WAIVERS AND REMEDIES

20.1     Waivers

         The failure to exercise or delay in exercising by the Chargee of any
         right conferred by Charge shall not operate as a waiver and the single
         or partial exercise of any right by the Chargee shall not preclude any
         other or further exercise of that or any other right by the Chargee.

20.2     Remedies

         The rights of the Chargee conferred by this Charge are cumulative and
         are not exclusive of any rights provided by law.

21       SEVERABILITY

         Any provision of this Charge which is prohibited or unenforceable in
         any jurisdiction shall, as to that jurisdiction, be ineffective to the
         extent of that prohibition or unenforceability, without invalidating
         the remaining provisions of this Charge or affecting the validity or
         enforceability of that provision in any other jurisdiction.

22       SURVIVAL

22.1     Representations

         All representations and warranties in this Charge shall survive the
         execution and delivery of any Security Agreement and the funding or
         securing of financial accommodation under any Credit Agreement and
         continue until a final discharge of the Security Agreements by the
         Chargee.

22.2     Indemnities

         Each indemnity in this Charge shall:

         (a)      (separate obligation): constitute an obligation of the Chargor
                  separate and independent from its other obligations under any
                  other agreement;

         (b)      (payment survival): survive the payment of the Secured Moneys
                  or the termination of any Security Agreement; and

         (c)      (final discharge): continue until a final discharge of the
                  Security Agreements by the Chargee.

23       MORATORIUM LEGISLATION

         To the fullest extent permitted by law, the provisions of any present
         or future legislation operating directly or indirectly to lessen or
         otherwise vary or affect in favour of the Chargor any of its
         obligations under this Charge or delay or otherwise prevent or
         prejudicially affect the exercise by the Chargee or any Receiver of any
         rights are negatived and excluded from this Charge.

24       THIRD PARTY SECURITY

24.1     Guarantee

         The Chargor unconditionally and irrevocably and jointly and severally
         with each Co-surety guarantees to the Chargee the due and punctual
         payment by each other Security Party of the Secured Moneys due from
         that Security Party to the Chargee ("Chargor Guarantee").

24.2     Demand Payment

         The Chargor must pay to the Chargee upon demand at any time by the
         Chargee the amount of the Secured Moneys due and payable from the
         Debtor to the Chargee at that time under any Security Agreement and in
         the manner and currency as provided in that Security Agreement.

24.3     Separate Obligation

         The Chargor Guarantee shall:

         (a)      (principal obligation): be a principal and independent
                  obligation and not be treated as ancillary or collateral to
                  any other obligation created or arising in any manner or
                  circumstances;

         (b)      (collateral security): not be affected by any present or
                  future agreement or any present or future indebtedness,
                  liability or obligation, whether direct or contingent, joint
                  or several, due from any person to the Chargee;

         (c)      (preservation): be enforceable in spite of the extinguishment
                  or unenforceability for any reason of any obligation arising
                  under any agreement until full and final satisfaction in
                  accordance with this Charge; and

         (d)      (maturing instruments): be enforceable in spite of any
                  negotiable or other instrument or document being or remaining
                  in circulation or understandings prior to maturity or
                  otherwise.

24.4     Continuing Guarantee

         The Chargor Guarantee shall be a continuing guarantee and not be wholly
         or partially discharged by the payment at any time of any Secured
         Moneys, settlement of account or other matter or thing and apply to the
         balance of the Secured Moneys at any time until full and final
         satisfaction in accordance with this Charge.

24.5     Future Dealings

         The Chargee may at any time in its absolute discretion without
         necessity for any consent by the Chargor:

         (a)      (funding increase): increase or otherwise vary the amount of
                  any present or future loans, advances, credit facilities or
                  other financial accommodation made or extended to the Debtor
                  or any other person;

         (b)      (document amendment): amend or vary any agreement in effect
                  between the Chargee and any person;

         (c)      (business transactions): transact any business with any person
                  or for or on account of any person at the request of any other
                  person.

24.6     Guarantee Protection

         The Chargor Guarantee and the obligations of the Chargor under the
         Chargor Guarantee shall not be affected at any time by:

         (a)      (waiver): the granting to any person by the Chargee of any
                  time, waiver or other indulgence or any agreement by the
                  Chargee to restrict any right of legal action or enforcement;

         (b)      (arrangement): any transaction, agreement or arrangement
                  effected between the Chargee and any person;

         (c)      (secured moneys): any increase or variation in the amount of
                  the Secured Moneys occurring for any reason;

         (d)      (document amendment): any amendment, variation, alteration,
                  supplement, renewal, replacement, substitution, assumption,
                  assignment or novation, whether for or without consideration,
                  of any agreement, or any right or obligation of any person
                  under any agreement;

         (e)      (document termination): any termination, expiry, rescission,
                  cancellation, extinguishment, avoidance or abandonment of any
                  agreement, or any right or obligation of any person under any
                  agreement;

         (f)      (document breach): any breach or repudiation of, or default
                  under, any agreement or obligation under any agreement by any
                  person;

         (g)      (document release): any total or partial release or discharge
                  by the Chargee of any agreement or right or obligation of the
                  Chargee or any person under any agreement;

         (h)      (security release): any total or partial release or discharge
                  by the Chargee of any right or asset from the effect of any
                  agreement, or any disclaimer, surrender, forfeiture,
                  extinguishment, resumption or determination by or in relation
                  to the Chargee or any person of any agreement or right or
                  asset subject to the effect of any agreement;

         (i)      (document perfection): the Chargee taking, completing or
                  perfecting, or any failure, delay or neglect in or refraining
                  from the taking, completion or perfection of, any agreement or
                  any right under any agreement;

         (j)      (document execution): any failure, refusal, neglect or delay
                  by any person concerning, or by the Chargee in requesting or
                  requiring, the execution or effective execution of any
                  agreement at any time by any person;

         (k)      (enforcement decisions): any exercise or enforcement or any
                  failure, delay or neglect in or refraining from, or lack of
                  ability or entitlement in, the exercise or enforcement by the
                  Chargee of any right conferred on the Chargee by any agreement
                  or by law;

         (1)      (enforcement realisation): any recovery or realisation or any
                  failure, delay or neglect in or refraining from, or lack of
                  ability or entitlement in, the recovery or realisation by the
                  Chargee of the Secured Moneys or any assets from any person or
                  of any assets subject to any agreement in total or partial
                  satisfaction of the Secured Moneys, including giving notice to
                  or taking legal action against any debtor of any person;

         (m)      (notification failure): the failure, delay or neglect in or
                  refraining from the notification by the Chargee or any person
                  to any other person of any breach of or default under any
                  agreement by any person or the Chargee or of any other act,
                  omission, fact or circumstance;

         (n)      (judgments): the Chargee obtaining judgment against any person
                  for or in relation to the payment or satisfaction of the
                  Secured Moneys;

         (o)      (distributions): the proof of debt or the receipt of any
                  dividend, distribution or other payment by the Chargee in or
                  out of the liquidation of any person;

         (p)      (liquidation):  the liquidation of any person;

         (q)      (compromises): the Chargee becoming a party to or bound or
                  affected by any administration, compromise, moratorium,
                  suspension of payments or rights, restriction on rights or
                  enforcement, assignment of property, company arrangement, deed
                  of company arrangement, debt composition or scheme of
                  arrangement or reconstruction by any person or in relation to
                  any person or agreement;

         (r)      (document invalidity): the total or partial invalidity,
                  avoidance, unenforceability, liability to invalidation or
                  avoidance, illegality, frustration, failure, impairment or
                  limitation of force and effect of any agreement or its
                  execution by any person for any reason;

         (s)      (payment invalidity): the invalidity, avoidance,
                  unenforceability, liability to invalidation or avoidance,
                  illegality or irrecoverability for any reason of any payment
                  made or due to the Chargee, whether at the due or actual
                  payment date or at any subsequent time;

         (t)      (incapacity): any total or partial legal incapacity,
                  limitation, disability or other circumstance, or change in
                  circumstance, of or in relation to any person, including
                  without limitation any change in the constitution or
                  membership of any person;

         (u)      (powers): any total or partial deficiency, irregularity or
                  failure of authorisation in the powers of, or the conferral or
                  delegation of powers to, any person, whether in its own right
                  or any other purported capacity, to enter into or execute, or
                  perform or observe its obligations under, any agreement;

         (v)      (consents): any failure, delay or neglect in or refraining
                  from obtaining the consent of any person by the Chargee in
                  connection with any of the foregoing or for any purpose or
                  reason relating to the Chargor Guarantee or otherwise; or

         (w)      (residual): any other act, omission, laches, default, fact,
                  circumstance or thing which but for this provision might
                  legally operate:

                  (i)      to release, discharge, terminate or prejudicially
                           affect the Chargor Guarantee or the obligations of
                           the Chargor under or in relation to the Chargor
                           Guarantee; or

                  (ii)     in any manner to relieve or excuse the Chargor from
                           performance of or compliance with, or limit or
                           provide a defence to any legal action or proceedings
                           to enforce, the obligations of the Chargor under or
                           in relation to the Chargor Guarantee.

24.7     Marshalling Exclusion

         (a)      (Collateral security): The Chargee shall not be obliged to
                  marshall in favour of the Chargor any Collateral Security held
                  by the Chargee or assets that the Chargee may be entitled to
                  claim or receive.

         (b)      (Speciality security): The Chargee may in its absolute
                  discretion vary, exchange, renew, modify or release, or refuse
                  to complete, enforce or assign, any judgment, guarantee,
                  security, speciality or negotiable or other instrument held by
                  the Chargee, whether or not paid in satisfaction.

24.8     Recovery Receipts

         (a)      (Payments): All moneys received by the Chargee on account of
                  the Secured Moneys or from any person, including without
                  limitation any dividends following the liquidation of any
                  person, shall be payments in gross.

         (b)      (Distributions): The receipt by the Chargee of any
                  distribution, dividend or other payment out of or relating to
                  the liquidation of any person shall not prejudice the right of
                  the Chargee to recover the whole of the Secured Moneys from
                  any other person.

24.9     Subrogation Exclusion

         The Chargor must not on any grounds, directly or indirectly, until full
         payment of the Secured Moneys and final discharge of this Charge:

         (a)      (security agreements): claim the benefit of or any right of
                  subrogation to any Security Agreement held by the Chargee;

         (b)      (distributions): claim or receive the benefit of any
                  distribution, dividend or payment arising out of or relating
                  to the liquidation of any person;

         (c)      (proof): prove or claim in the liquidation of any person in
                  competition with the Chargee, so as to diminish any
                  distribution, dividend or payment which the Chargee would be
                  entitled to receive arising out of or relating to that
                  liquidation in the absence of that proof or claim; or

         (d)      (contribution): claim any right of contribution or indemnity
                  from any person in relation to any liability for payment of
                  the Secured Moneys;

24.10    Suspense Account

         The Chargee shall be entitled to:

         (a)      (proof): prove in the liquidation of any person for the whole
                  of the Secured Moneys, including the amount of all payments
                  received from the Chargor pursuant to this Charge in respect
                  of the Secured Moneys;

         (b)      (suspense account credit): credit all payments from the
                  Chargor, whether received prior or subsequent to the
                  liquidation, to a suspense account in the name of the Chargor,
                  without obligation to apply the payments in or towards
                  satisfaction of the Secured Moneys;

         (c)      (appropriation): in the discretion of the Chargee at any time
                  appropriate the payments in or towards satisfaction of the
                  Secured Moneys; and

         (d)      (security retention): hold the payments prior to appropriation
                  as security for payment of the Secured Moneys;

         until the Chargee has received full payment of the Secured Moneys with
         the assistance of the payments.

24.11    Insolvency Clawbacks

         (a)      (Clawback liability): This provision shall apply in any case
                  where the Chargee is or becomes liable ("clawback liability")
                  under any law relating to liquidation or the protection of
                  creditors to repay, refund, restore or transfer to any person
                  moneys or assets or their equivalent money value.

         (b)      (Invalidated transaction): A clawback liability of the Chargee
                  for the purposes of this provision shall arise where a court
                  orders or the Chargee concedes or compromises a claim that the
                  payment or transaction ("invalidated transaction") pursuant to
                  which the Chargee received or recovered moneys or assets shall
                  be totally or partially invalidated or set aside.

         (c)      (Rights revival): In the case of a clawback liability, the
                  Chargee shall have all the same rights against any person in
                  relation to the Secured Moneys to the extent of the
                  invalidated transaction held by the Chargee immediately prior
                  to the occurrence of the invalidated transaction.

         (d)      (Security reinstatement): The Chargor must take all steps and
                  execute all documents necessary or convenient to restore to
                  the Chargee any Security Agreement held by the Chargee from
                  the Chargor immediately prior to the occurrence of an
                  invalidated transaction.

         (e)      (Indemnity): The Chargor must indemnify the Chargee upon
                  demand against all costs, including without limitation legal
                  costs on a full solicitor and own client indemnity basis,
                  incurred by the Chargee in connection with any negotiations or
                  proceedings relating to an invalidated transaction, despite
                  any other provision of this Charge.

24.12    Principal Indemnity

         (a)      (Indemnity liability): The Chargor must, despite any other
                  provision in this Charge, indemnify the Chargee against, and
                  pay to the Chargee upon demand by the Chargee an amount equal
                  to, all Secured Moneys that are or may be irrecoverable by the
                  Chargee from the Chargor as a surety ("principal indemnity").

         (b)      (Principal debtor liability): The principal indemnity shall be
                  a separate and additional liability of the Chargor as a
                  principal debtor, and not as a surety.

         (c)      (Irrecoverable moneys): The principal indemnity of the Chargor
                  shall apply in relation to Secured Moneys that are
                  irrecoverable for any reason, including without limitation any
                  legal incapacity, disability or limitation of or affecting any
                  person acting in its own right or any other purported capacity
                  or any other fact, matter, thing or circumstance.

         (d)      (Indemnity transactions): The principal indemnity of the
                  Chargor shall apply regardless of whether any transaction
                  relating to irrecoverable Secured Moneys was initially void or
                  voidable or subsequently avoided and regardless of whether the
                  Chargee had or ought to have had knowledge of any fact,
                  matter, thing or circumstance relating to that transaction.

24.13    Representation Exclusion

         The Chargor acknowledges that this Charge has not been executed by the
         Chargor as a result of or in reliance on any promise, representation,
         warranty, statement, advice or information of any kind or nature given
         or made to the Chargor by or on behalf of the Chargee, whether in
         response to any inquiry by or on behalf of the Chargor or otherwise.

24.14    Disclosure Exclusion

         The Chargor acknowledges that the Chargee was not prior to the
         execution of this Charge by the Chargor and is not subsequently under
         any duty to disclose to the Chargor, or perform, anything relating to
         the business, affairs or financial condition of any Security Party or
         its transactions with the Chargee.

24.15    Guarantee Interpretation

         The following meanings apply to words and expressions used in this
         Clause 24 relating to third party security:

         (a)      (chargor guarantee): the Chargor Guarantee has the meaning
                  defined in clause 24.1;

         (b)      (chargee): reference to the Chargee includes any Receiver or
                  Attorney;

         (c)      (person): reference to any person includes the Chargor, the
                  Debtor, any person named as a Chargor or a Debtor, any
                  Co-surety or any other person; and

         (d)      (agreement): reference to any agreement includes any Security
                  Agreement, Security Interest, Guarantee or other agreement
                  made or in force and effect at any time between the Chargee
                  and any person.

25       COUNTERPARTS

         This Charge may be executed in any number of counterparts, all of which
         taken together shall be deemed to constitute one and the same document.

26       ATTORNEYS

         Each attorney executing this Charge respectively certifies that the
         attorney has at the time of executing this Charge no notice of the
         revocation of the power of attorney pursuant to which the attorney
         executes this Charge.

<PAGE>

EXECUTION CLAUSE

Executed as a deed.

CHARGOR:

THE COMMON SEAL of                                   )
CORVU AUSTRALASIA PTY LTD                            )
(ACN 050 043 699)                                    )
was affixed in accordance with                       )
its Articles of Association                          )
in the presence of:                                  )

Director

Full Name:

Director/Secretary

Full Name:  Justin M. MacIntosh

CHARGEE:

THE COMMON SEAL of                                   )
INTEGRAL BUSINESS FINANCE PTY                        )
LIMITED ACN 077 559 749                              )
was affixed in accordance with                       )
its Articles of Association                          )
in the presence of:                                  )

Director

Full Name:

Director/Secretary

Full Name:

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