Document:

Exhibit 10.1

AMENDMENT
TO

AMENDED
AND RESTATED NOTE AND WARRANT PURCHASE AGREEMENT

This Amendment to Amended and Restated Note
and Warrant Purchase Agreement (this “Amendment”) is made effective as
of December 4, 2006, by and among Thomas Group, Inc., a Delaware corporation
(the “Company”), General John T. Chain, Jr., an individual (“Chain”),
and Edward P. Evans, an individual (“Evans,” and collectively with
Chain, “Purchasers” and each individually, a “Purchaser”), to
amend that certain Amended and Restated Note and Warrant Purchase Agreement
dated as of October 17, 2002 (the “Agreement”).

RECITALS

WHEREAS,
as of October 17, 2002, the Company and Purchasers entered into the Agreement;

WHEREAS, Section
5.2 of the Agreement provides for certain terms regarding the size of the Board
of Directors of the Company (the “Board”) and certain rights of the
Purchasers with respect to the nomination or designation of directors for
election to the Board;

WHEREAS, Section
5.9 of the Agreement provides for certain observer rights prior to the
designation and election to the Board of one Purchaser’s designees;

WHEREAS, the
Company and Purchasers desire to (i) amend the circumstances under which the
number of members composing the Board may be changed and (ii) amend and clarify
the rights of Purchasers to designate individuals to be considered as nominees
for election to the Board and the requirements applicable to such designees;

WHEREAS, the
Company and Purchasers acknowledge that Section 5.9 of the Agreement expired at
the first meeting of stockholders of the Company following execution of the
Agreement and therefore desire to delete such Section 5.9;

WHEREAS,
capitalized terms used and not otherwise defined herein shall have the
respective meanings ascribed thereto in the Agreement; and

WHEREAS, Section 7.3 of
the Agreement provides that the rights and obligations of the Company and
Purchasers may be amended with the written consent of the Company and each
Purchaser;

NOW THEREFORE, in
consideration of the premises set forth above and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

1.             Section 5.2 of the Agreement is hereby amended and
restated to read in its entirety as follows:

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“5.2    Board Size; Nomination of Directors.

(a)           Board Size.  As permitted under the Company’s Bylaws, the
Board of Directors of the Company has set the authorized number of members of
the Board at five and the number of members of the Board shall remain at five
until the earlier of (i) the first date on which each  Purchaser is no longer the beneficial owner
of at least ten percent of the outstanding Common Stock of the Company or (ii)
the Company’s annual meeting of stockholders to be held in 2009 (“2009
Annual Meeting”).  Beneficial
ownership shall be determined in accordance with Rule 13d-3 promulgated under
the Securities Exchange Act of 1934 (“Exchange Act”).

(b)           Nominating Rights.  Chain shall have the right to designate
nominees to fill three of the five director positions on the Board until the
earlier of (i) the first date on which Chain is no longer the beneficial owner
of at least ten percent of the outstanding Common Stock of the Company or (ii)
the 2009 Annual Meeting.  Chain agrees
that one of his designated nominees will always be the Company’s then-current
President and Chief Executive Officer and one of his designated nominees will
always be himself.  Evans shall have the
right to designate nominees to fill two of the five director positions on the
Board until the earlier of (i) the first date on which Evans is no longer the
beneficial owner of at least ten percent of the outstanding Common Stock of the
Company or (ii) the 2009 Annual Meeting. Evans agrees that one of his
designated nominees will always be himself.

(c)           Procedure.  Each Purchaser shall inform the Company’s
Compensation and Corporate Governance Committee, in its capacity as the Company’s
nominating committee (or such other committee to which the Board has then
delegated nominating authority, or if none, the Board, as appropriate, referred
to hereinafter as “Committee”), in writing of its recommended nominees
for election to the Board by delivering a written notice thereof not less than
60 days prior to the mailing of the Company’s proxy statement to be distributed
to stockholders in connection with the annual meeting of stockholders.  The notice shall contain such information
relating to such nominees (i) as is required by Article II, Section 10 of the Company’s
Bylaws, (ii) as is required to be disclosed in a proxy statement in connection
with the solicitation of proxies for the election of directors pursuant to
Section 14 of the Exchange Act and the rules promulgated thereunder and (iii)
from which the Committee and the Board can determine that the requirements of
Section 5.2(f) below have been satisfied.

(d)           Vacancies.  Subject to Article III, Section 4 and Article
IV, Section 5 of the Company’s Bylaws, Chain shall have the right to recommend
to the Committee nominees to fill any vacancy on the Board, or any committee
thereof, arising out of the resignation, removal or other departure from the
Board or committee of an individual nominated by Chain pursuant to Section
5.2(b).  Subject to Article III, Section
4 and Article IV, Section 5 of the Company’s Bylaws, Evans shall have the right
to recommend to the Committee nominees to fill any vacancy on the Board, or any
committee thereof, arising out of the 

 2
 

resignation, removal or other departure from the Board
or committee of an individual nominated by Evans pursuant to Section 5.2(b).

(e)           Nominating Committee.  Notwithstanding anything herein to the
contrary, any individual designated by Chain or Evans pursuant to Section
5.2(b) shall be referred to the Committee in its capacity as the Company’s nominating
committee for review and evaluation and, if appropriate, recommendation to the
Board, in accordance with the nominating provisions of the Committee’s charter
and any procedures established by the Committee for review, evaluation and
recommendation to the Board of potential director candidates.

(f)            Qualifications.  Notwithstanding anything herein the contrary,
no designee shall be recommended for election to, or to fill a vacancy on, the
Board unless after giving effect to the election of such nominees or the
filling of such vacancy there would be (i) at least a majority of  independent directors on the Board that meet
the independence criteria required by the Nasdaq Stock Market (or such other
listing standards and rules applicable to the principal securities exchange on
which the Company’s common stock is listed) (each, an “Independent Director”),
(ii) at least three Independent Directors on the Company’s Audit Committee, and
each Audit Committee member meets the criteria for audit committee membership
required by the Nasdaq Stock Market (or such other listing standards and rules
applicable to the principal securities exchange on which the Company’s common
stock is listed) and the Exchange Act and Rule 10A-3 thereunder, (iii) at least
one member of the Company’s Audit Committee who has past employment experience
in finance or accounting, requisite professional certification in accounting,
or any other comparable experience or background which results in the
individual’s financial sophistication, including being or having been a chief
executive officer, chief financial officer or other senior officer with
financial oversight responsibilities and satisfies the criteria for “audit
committee financial expert” contained in Regulation S-K promulgated by the
Securities Exchange Commission and (iv) no more than one director on the
Committee that is not an Independent Director; provided,
however, that unless there are at least three members on the
Committee and the Board has determined that the membership on the Committee of
such director who is not an Independent Director is required by the best
interests of the Company and its stockholders, no directors who are not
Independent Directors shall serve on the Committee.

(g)           Conflict with Nasdaq.  In the event the nomination rights set forth
herein are not permitted by applicable Nasdaq Stock Market rules (or the
comparable requirements of the principal securities exchange on which the
Company’s common stock is listed), the Committee shall have the exclusive
delegated authority of the Board to recommend to the Board nominees for
election and replacements to fill vacancies.”

 3
 

2.             Section 5.9 of the Agreement is
hereby deleted in its entirety.

3.             The parties agree and acknowledge
that the rights granted to Purchasers herein are personal and may not be
transferred or assigned to any third party and that such rights, as to a
particular Purchaser, shall automatically expire upon such Purchaser’s death or
legal disability.

4.             The parties acknowledge that, as of
the date of this Amendment and until Purchasers deliver to the Company the
notices contemplated by Section 5.2(c), David B. Mathis represents a Chain
designee and Dorsey R. Gardner represents an Evans designee.

5.             All other terms and conditions of
the Agreement remain unchanged and in full force and effect.

*      *      *      *      *

 4
 

IN WITNESS WHEREOF, the parties have executed this
Amendment as of the date first above written.

	
  

  	
  THOMAS GROUP, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James T. Taylor

  	
   

  
	
   

  	
  Name: James T. Taylor

  	
   

  
	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL JOHN T. CHAIN, JR.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signed:

  	
  /s/ John T. Chain

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDWARD P. EVANS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signed:

  	
  /s/ Edward P. Evans

  	
   

  
						

 

 5Exhibit
10.2

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
  Underwriting Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Progen Pharmaceuticals Limited

  
	
   

  	
  Emerging Growth Capital Pty Limited

  
	
   

  	
  Bell Potter Securities Limited

  
	
   

  	
   

  

 

Level 12

60 Carrington Street

SYDNEY  NSW 
2000

DX 262  SYDNEY 
NSW

Tel: (02) 8915 1000

Fax: (02) 8916 2000

www.addisonslawyers.com.au

Ref: DPS/EME766/14

197481 3

	
  Table of Contents

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Defined terms and interpretation

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Underwriting and Commitment

  	
  15

  
	
   

  	
   

  	
   

  
	
  3.

  	
  EI Prospectus

  	
  16

  
	
   

  	
   

  	
   

  
	
  4.

  	
  ASX Listing

  	
  17

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Entitlement Issue Period

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Obligations of the Company

  	
  18

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Applications for, and Allotment of, Underwritten
  Shares

  	
  39

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Shortfall

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Payments

  	
  44

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Relief of the Underwriter’s Obligations

  	
  44

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Confidentiality

  	
  49

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Notices

  	
  50

  
	
   

  	
   

  	
   

  
	
  13.

  	
  General

  	
  51

  
	
   

  	
   

  	
   

  
	
  Annexure 1

  	
   

  	
  56

  
	
   

  	
   

  	
   

  
	
  Annexure 2

  	
   

  	
  57

  
	
   

  	
   

  	
   

  
	
  Annexure 3

  	
   

  	
  57

  
				

 

 i

DETAILS

Date: 3 May 2007

Parties

	
  (1)

  	
  Progen Pharmaceuticals Limited (“Company”)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABN

  	
  82 010 975 612

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
  16 Benson Street

  TOOWONG QLD 4066

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention

  	
  Mr Justus Homburg

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
  Emerging Growth Capital Pty Limited (“eG”)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABN

  	
  16 093 677 180

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
  Level 3, 1 Castlereagh Street

  SYDNEY  NSW  2000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention

  	
  Mr Ross Lewin

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
  Bell Potter Securities Limited (“Bell”)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABN

  	
  25 006 390 772

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
  Level 33, Grosvenor Place

  225 George Street,

  SYDNEY NSW 2000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention

  	
  Mr Greg Ward

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Recitals

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  A.

  	
  The current issued capital of the Company is
  46,572,084 Shares and 640,000 Options.

  
	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  The Company proposes to issue and allot:

  	
   

  
	
   

  	
   

  
	
   

  	
  1.

  	
  5,941,343 Shares, together with New Options on a 1
  for 2 basis, each at an Entitlement Issue Price, to raise approximately
  A$34,103,309 (the “Entitlement Issue”);
  and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  6,900,000 Shares, each at an offer price of US$4.75
  to raise approximately US$32,775,000 (the “US Placement”).

  
						

 

 1
 

	
  C.

  	
  The Entitlement Issue will be effected pursuant to
  the issue by the Company of one or more prospectuses and otherwise in
  accordance with the applicable laws of Australia, the United States and the
  rest-of-the-world.

  
	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
  The Company and the Underwriter have agreed that
  each Underwriter will underwrite their respective Agreed Proportion of the
  Entitlement Issue to the extent of the Underwritten Shares in accordance with
  the terms of this agreement and in reliance upon the representations and
  undertakings contained in this agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
  Operative Parts

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Defined terms and interpretation

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined terms

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The following definitions apply unless the context
  requires otherwise.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AEST means Australian Eastern
  Standard time.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Agreed Proportion means in
  respect of both eG and Bell, fifty per cent. (50%).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allotment Date means the date
  specified as such in the Timetable or such other date the Company and the
  Underwriter may agree.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Announcement means the
  announcement referred to in clause 2.3(a)(i).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Announcement Date means 4 May,
  2007 AEST or such later date as the Parties may agree.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Application means a duly
  completed application for Underwritten Shares which is:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  made on an application form attached to or that
  accompanies a copy of an EI Prospectus;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  accompanied by appropriate Application Moneys; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  received by or on behalf of the Company on or before
  the Closing Date,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  or such other application as is acceptable to the
  Underwriter.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Application Moneys means the
  moneys accompanying the Application, being payment in full, in immediately
  available funds, for the Shares subscribed for pursuant to the Entitlement
  Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ASIC means the Australian
  Securities & Investments Commission.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ASX means the ASX Limited ACN
  008 624 691.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Australian EI Prospectus has the  meaning
  set forth below in the definition of “Prospectus”.

  

 

 2
 

	
  

  	
  Australian EI Shares means those Shares that are offered to
  and/or subscribed for by persons other than US Persons, under and as part of
  the Entitlement Issue, and include the New Options to be issued to such
  persons when they subscribe for Australian EI Shares.

  
	
   

  	
   

  
	
   

  	
  Authority means any
  government, governmental, semi-governmental, administrative or judicial
  entity, body, politic or statutory corporation whether federal or state,
  municipal or otherwise and whether located in Australia, the United States or
  elsewhere overseas and for the avoidance of doubt includes ASIC, ASX, the
  Takeovers Panel, the SEC and NASDAQ.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Business Day means:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  for the purpose of sending or receiving a notice, a
  day which is not a Saturday, Sunday, a bank holiday or a public holiday in
  the city where the notice is received; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  for all other purposes, a day which is not a
  Saturday, Sunday, a bank holiday or a public holiday in Sydney.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Business Hours means from 9.00
  am to 5.00 pm AEST on a Business Day.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Certificate means the
  certificate delivered by the Company to both eG and Bell pursuant to clause
  8.1(b) in the event of a Shortfall.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Charges means all fees, costs,
  taxes, charges and expenses payable under this agreement, auditor’s fees,
  investigating accountants fees, share registry fees, legal fees, expert’s
  fees, advertising and publicity fees, printing and typesetting costs,
  postage, any stamp duty on this agreement and the allotment of the
  Underwritten Shares and any other costs, charges and expenses of, in
  connection with or relating (directly or indirectly) to the Entitlement Issue
  or this agreement, the preparation of the Entitlement Issue or this
  agreement, including business class airfares, accommodation and meals.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Closing Date means the 5.00 pm
  on the date specified as the closing date for the submission of Applications
  in each Prospectus, or such other date as the Parties may determine in
  accordance with clause 5.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Completion means the
  completion of the Entitlement Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Compliance Rules means any and
  all relevant or applicable provisions of:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Corporations Act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Corporations Regulations;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the Listing Rules;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  the Constitution;

  	
   

  

 

 3
 

	
  

  	
  (e)

  	
  any practice note, policy statement, class order,
  declaration, guideline, policy or procedure pursuant to the provisions of
  which either ASIC or ASX is authorised or entitled to regulate, implement or
  enforce, either directly or indirectly, the provisions of any of the foregoing
  statutes, regulations, rules, deeds or agreements or any conduct or proposed
  conduct of any person pursuant to any of the abovementioned statutes,
  regulations, rules, deeds or agreements; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  in respect of the US Placement, any US Placement
  Prospectus, US EI Prospectus and the Entitlement Issue, the Securities Act,
  the Exchange Act, all rules, regulations, policies, orders, declarations or
  statements issued, implemented or enforced in connection with any of the
  matters or actions the subject of either of those statutes, and the rules and
  regulations of NASDAQ including, without limitation, the NASDAQ Marketplace
  Rules.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Constitution means  the constitution of the Company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Corporations Act means the
  Corporations Act 2001 (Cth).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Corporations Regulations means
  those regulations issued and to be applied in conjunction with the relevant
  provisions of the Corporations Act.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Despatch Date means in respect
  of the Entitlement Issue, 23 May 2007 or any earlier date that the
  Underwriter selects.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Details means, in relation to
  a party, the details for that party set out in this agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Director means any director of the Company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due Diligence Committee means
  the committee appointed by the Directors to carry out the due diligence
  investigations and procedures in accordance with the Due Diligence Planning
  Memorandum, in connection with the Entitlement Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due Diligence Planning Memorandum means
  the due diligence planning memorandum describing the Due Diligence Programme
  adopted by the Due Diligence Committee in relation to the Entitlement Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due Diligence Programme means
  the due diligence and verification procedures adopted by the Due Diligence
  Committee in accordance with the Due Diligence Planning Memorandum.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due Diligence Report means the
  report of the Due Diligence Committee to the Directors, including all
  supporting documents and other work papers to which the Underwriter is given
  access for the purpose of the conduct of the Due Diligence Programme.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due Diligence Results means
  the results of the Due Diligence Programme.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EI Prospectus has the  meaning
  set forth below in the definition of “Prospectus”.

  

 

 4
 

	
  

  	
  Encumbrance means any
  mortgage, charge, lien, hypothecation, assignment, security or other
  encumbrance by way of security (other than a lien arising by operation of law
  and a charge arising by statute and in either case in respect of which no
  default has occurred), Security Interest or any title (other than a title
  retention arising in the ordinary course of business as a result of the
  supply of goods and services), preferential right or arrangement or trust
  arrangement the effect of which is the creation of security (howsoever
  ranking) for the payment of indebtedness or any other monetary obligation or
  the observance of any other obligation and any agreement to create any of
  them or allow any of them to exist.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entitlement Issue means the
  offer by the Company of 5,941,343 Shares at the Entitlement Issue Price.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entitlement Issue Period means
  the period specified as the offer period in a Prospectus, subject to any
  variation of the Closing Date as provided in clause 5.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entitlement Issue Price means:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  A$5.74 per Australian EI Share; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  US$4.75 per US EI Share.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entitlement Issue Proceeds means
  the product of:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the Entitlement Issue Price; and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the total number of Entitlement Shares.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Entitlement Shares means all
  Australian EI Shares and US EI Shares that are offered for subscription or
  sale under the provisions of the Entitlement Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exchange Act means the Securities
  Exchange Act of 1934 of the United States of America, as amended.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Group means the Company and
  each of its Related Bodies Corporate.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Group Company means the
  Company and any other company within the Group.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GST or GST Amount means, in
  relation to a Payment, an amount arrived at by multiplying the Payment (or
  the relevant part of a Payment if only part of a Payment is the consideration
  for a taxable supply) by the appropriate rate of tax prescribed under the
  provisions of the GST Law (being 10% when the GST Law commenced).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GST Law has the meaning given
  to that term in the A New Tax System (Goods and Services Tax) Act 1999 (as
  amended) and any regulation made under that Act.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Indemnified Parties means eG,
  Bell and each of their respective officers, employees and agents.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Insolvency Event means the
  happening of any of the following events:

  

 

 5
 

	
  

  	
  (a)

  	
  an application is made to a court for an order or an
  order is made that a body corporate be wound up;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  an application is made to a court for an order
  appointing a liquidator, provisional liquidator, administrator, controller,
  managing controller, receiver, receiver and manager or similar officer in
  respect of a body corporate or one of them is appointed, whether or not under
  an order;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  a receiver, receiver and manager, controller, managing
  controller or administrator is appointed to the property of a body corporate
  or any part or parts of it;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  except to reconstruct or amalgamate while solvent on
  terms approved by the Underwriter, a body corporate enters into, or resolves
  to enter into, a scheme of arrangement, deed of company arrangement or
  composition with, or compromise or assignment for the benefit of all or any
  class of its creditors or members or it proposes a reorganisation, moratorium
  or other administration involving any of them;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  a body corporate resolves to wind itself up or
  otherwise dissolve itself or gives notice of intention to do so, except to
  reconstruct or amalgamate while solvent and on terms approved by the
  Underwriter;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  a body corporate is or states that it is unable to
  pay its debts as and when they fall due;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  a body corporate fails (in accordance with the terms
  of section 459F of the Corporations Act) to comply with any statutory demand
  served pursuant to section 459E of the Corporations Act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (h)

  	
  a body corporate is or makes a statement from which
  it may be reasonably deduced by the Underwriter that the body corporate is,
  the subject of an event described in section 459C(2)(b) or section 585 of the
  Corporations Act;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  a body corporate takes any step to obtain protection
  or is granted protection from its creditors, under any applicable
  legislation;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (j)

  	
  execution or other process issued or a judgment,
  decree or order of a court in favour of a creditor of a body corporate is
  returned wholly or partly unsatisfied;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (k)

  	
  any steps are taken by ASIC to dissolve a body
  corporate or a body corporate is dissolved;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (l)

  	
  a person becomes an insolvent under administration
  as defined in section 9 of the Corporations Act or action is taken which
  could result in that event;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (m)

  	
  a body corporate becomes insolvent as defined in
  section 95A or Regulation 7.5.02(1) of the Corporations Regulations; and

  

 

 6
 

	
  

  	
  (n)

  	
  anything analogous or having a substantially similar
  effect to any of the events specified above happens under the law of any
  applicable jurisdiction.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Intellectual Property means any patent, patent application,
  invention, formulation, trademark, service mark, trade name, trade secret,
  trademark registration, service mark registration, copyright, licence,
  formula, customer list, designs, manufacturing or other processes, computer
  software, systems, data compilation, research results, and know-how and other
  intellectual property (including trade secrets and other unpatented and/or
  unpatentable proprietary or confidential information, systems or procedures)
  necessary or desirable  to conduct any
  business of any Group Company as being conducted or as contemplated to be
  conducted;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Last Accounts Date means 31
  December, 2006.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Last Closing Date means latter
  to occur of the time and date on which the offer of:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the Australian EI Shares under the Australian EI
  Prospectus; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the US EI Shares under the US EI Prospectus,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  closes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Listing Date means:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  in respect of the Australian EI Shares, the date
  upon which the Australian EI Shares are first listed for Quotation by ASX;
  and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in respect of the US EI Shares, the date upon which
  the US EI Shares are first listed for quotation by NASDAQ.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Listing Rules means the
  official listing rules of ASX as amended, modified or replaced from time to
  time.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Loss means any and all losses
  (including loss of profit and loss of expected profit), claims, actions,
  liabilities, damages, expenses, diminutions in value or deficiencies of any
  kind or character including, without limitation, all interest and other
  amounts payable to third parties, all liabilities on account of Taxes and all
  legal (on a full indemnity basis) and other expenses reasonably incurred in
  connection with investigating or defending any claims or actions, whether or
  not resulting in any liability and all amounts paid in settlement of claims
  or actions.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Material Adverse Effect means
  a material diminution in the value of the assets or material increase in the
  value of the liabilities of the Company, or material adverse effect on the
  earnings, business, management, properties, assets, rights, operations, condition
  (financial or otherwise) or prospects of the Company or its Subsidiaries,
  taken together as a whole, which, in any such case in the reasonable opinion
  of the Underwriter, will or is likely to have a material adverse effect on
  the success of the Entitlement Issue.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NASDAQ means the NASDAQ
  Capital Market operated by The Nasdaq Stock Market, Inc.

  

 

 7
 

	
  

  	
  New Options are Options, one
  of which will be issued and allotted to an applicant of Shares the subject of
  the Entitlement Issue, for each two of those Shares that are allotted to that
  applicant, and each with an expiry date of 28 May, 2010 and an exercise price
  of A$8.40.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notice has the meaning given
  in clause 12.1.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Official List means the
  official list of entities that ASX has admitted and not removed.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Operative Date means the date
  of this agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Option means an option to
  acquire a Share.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Participant has the meaning
  given to that term in Section 2.13.1 of the ASTC Settlement Rules.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Party means the parties to
  this agreement and their successors and permitted assigns.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Payment means:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the amount of any monetary consideration (other than
  a GST Amount payable under clause 1.4); or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the GST exclusive market value of any non-monetary
  consideration; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  which is paid or provided by one party to another
  for any supply made under or in connection with this agreement and includes
  any amount payable by way of indemnity, reimbursement, compensation or damages.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Prescribed Occurrence means an
  event referred to in section 652C(1) and (2) of the Corporations Act, in
  reference however to the Company, or any Subsidiary of the Company, rather
  than a “target”.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Prospectus means:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  in respect of the Entitlement Issue:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  a prospectus to be lodged with ASIC and issued in
  accordance with the applicable Compliance Rules, setting out the terms and
  conditions of the Entitlement Issue (“Australian EI
  Prospectus”); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (A)

  	
  (1)

  	
  US Prospectus Supplement; and/or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (2)

  	
  each “free-writing prospectus” (as defined pursuant
  to Rule 405 under the Securities Act), and/or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (3)

  	
  a term sheet providing pricing and other information
  in respect of the Entitlement Issue, which is fully 

  
							

 

 8
 

	
  

  	
   

  	
   

  	
   

  	
   

  	
  compliant with Rule 134 under the Securities Act,
  together with

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (B)

  	
  the US Base Prospectus attached to, or used with,
  the documents listed in sub-paragraph (A) above, each of which will be filed
  with the SEC and issued by the Company in compliance with all applicable
  Compliance Rules and will set out the terms and conditions of the Entitlement
  Issue (collectively, the “US EI Prospectus”);
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in respect of the US Placement, the US Base
  Prospectus together with:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  a prospectus supplement; and/or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  each “free-writing prospectus” (as defined pursuant
  to Rule 405 under the Securities Act); and/or

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  a term sheet providing pricing and other information
  in respect of the US Placement, which is fully compliant with Rule 134 under
  the Securities Act,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  each of which will be filed with the SEC and issued
  by the Company in compliance with all applicable Compliance Rules and will
  set out the terms and conditions of the US Placement (collectively,
  the “US Placement Prospectus”),

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  and reference to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the “EI Prospectus”
  in this agreement will be a reference to both the Australian EI Prospectus
  and the US EI Prospectus; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  “a Prospectus”
  in this agreement will be a reference to any of the Australian EI Prospectus,
  US EI Prospectus or the US Placement Prospectus, as applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Quotation means quotation on
  the Official List.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Related Body Corporate has the
  same meaning as is ascribed to that term in section 50 of the Corporations
  Act.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SEC means the
  United States Securities and Exchange Commission.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Securities has the same
  meaning as is ascribed to that term in section 92 of the Corporations Act.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Securities Act
  means the Securities Act of 1933 of the United States of America, as amended.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Security Interest means an
  interest or power:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  reserved in an interest in property; or

  

 

 9
 

	
  

  	
  (b)

  	
  created or otherwise arising in an interest in
  property under a bill of sale (as defined in any statute), mortgage, charge,
  lien, pledge, hypothecation, trust or power,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  by way of security for the payment of a debt or
  other monetary obligation or the observance of any other obligation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shareholder means a registered
  holder of Shares.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shares means
  fully paid ordinary shares in the capital of the Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shortfall means the existence
  of Shortfall Shares.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shortfall Shares means the
  aggregate number of Underwritten Shares for which Applications:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  are not received, or if received, are not accepted
  by the Company or the Underwriter in accordance with clause 7.3 and clause
  7.4 before the end of the Entitlement Issue Period; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  are received by the Company or the Underwriter
  before the end of the Entitlement Issue Period where the Application Moneys
  are paid by cheques which are not honoured on presentation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subsidiary means a body corporate
  that is or would be taken to be any of a subsidiary, an associate or a
  related body corporate of the Company by virtue of the Corporations Act.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tax means any present or
  future tax, levy, impost, deduction, charge, fee, rate, duty or withholding
  (together with interest, penalties and expenses in connection with them)
  levied or imposed by an Authority except an amount payable as income tax.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  the Underwriter means eG and
  Bell collectively and an Underwriter
  means either eG or Bell.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Timetable means the timetable
  for the Entitlement Issue contained in the EI Prospectus, as varied by any
  written agreement between the Company and the Underwriter.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Trading Day has the meaning
  given to that term in the Listing Rules.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Underwriter’s Application means
  a valid Application by or on behalf of the Underwriter or the Underwriter’s
  nominee in respect of the Shortfall Shores.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Underwriting Commission means
  the aggregate of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  5.85% of the product of the number of Underwritten
  Shares and the Entitlement Issue Price, expressed as an Australian dollar
  equivalent; and

  

 

 10

(b)                                 any
other fees, benefits or payments that the Company has agreed to pay to either
eG or Bell in accordance with the provisions of any mandate letters between the
Underwriter and the Company.

Underwritten
Shares means, in respect of an Underwriter, the number
of Entitlement Shares multiplied by the Agreed Proportion of that Underwriter.

United
States  has the same
meaning as “United States” is given in Rule 902(l) under the Securities Act.

US Base
Prospectus means the base prospectus included in the
US Registration Statement at the effective time of the US Registration
Statement, including all documents incorporated by reference, or deemed to be
incorporated by reference, therein.

US EI
Prospectus has
the  meaning set forth above in the
definition of “Prospectus”.

US
EI Shares means
those Shares that are offered to and/or subscribed for by persons in the United
States and US Persons, under and as part of the Entitlement Issue, and includes
the New Options issued to such persons when they subscribe for US EI Shares.

US
Placement Agency Agreement means the placement agency agreement to be entered into between
the Company and the US Placement Agent in connection with the offer and sale by
the Company through the US Placement Agent, of Shares to investors in the US
Placement.

US
Placement Agent means Thomas Weisel Partners LLC, the placement agent for the US
Placement.

US
Placement Prospectus has the  meaning set forth
above in the definition of “Prospectus”.

US
Prospectus Supplement means the final prospectus supplement,
relating to the US EI Shares, filed by the Company with the SEC pursuant to
Rule 424(b) under the Securities Act on or before such time as required under
the Securities Act.

US
Person  has the same
meaning as “U.S. person” is given in Rule 902(k) under the Securities Act.

US
Placement Shares means Shares or other Securities of the Company that are offered
pursuant to the US Placement in accordance with the terms and conditions set
out in any US Placement Prospectus.

US
Registration Statement means the registration statement (File
No. 333-141489) as amended at the time of such registration statement’s
effectiveness for purposes of Section 11 of the Securities Act, including:

(a)                                  all
documents filed as a part thereof or incorporated or deemed to be incorporated
by reference therein;

 11
 

(b)                                 any
information contained or incorporated by reference in a prospectus filed with
the SEC pursuant to Rule 424(b) under the Securities Act, to the extent such
information is deemed, pursuant to Rule 430B or Rule 430C under the Securities
Act, to be part of the registration statement at the effective time of such
registration statement; and

(c)                                  any
registration statement filed to register the offer and sale of Entitlement
Shares pursuant to Rule 462(b) under the Securities Act.

US
Subscription Agreement means each subscription
agreement to be entered into with investors in connection with the purchase of
Shares by such investors in the US Placement.

Verification
Material means the documents and information that the
Due Diligence Committee accepts as verification of statements made in the EI
Prospectus.

1.2          Interpretation

In this
agreement, except where the context otherwise requires:

(a)                                  the
singular includes the plural and vice versa and a gender includes other
genders;

(b)                                 another
grammatical form of a defined word or expression has a corresponding meaning;

(c)                                  a
reference to a clause, paragraph, schedule or annexure is to a clause or
paragraph of or schedule or annexure to this agreement and a reference to this
agreement includes any schedule and annexure;

(d)                                 a
reference to a document or agreement, includes the document or agreement as
novated, altered, supplemented or replaced from time to time;

(e)                                  a
reference to A$, $A, dollar or $ is to Australian currency;

(f)                                    a
reference to time is to Australian Eastern Standard time;

(g)                                 a
reference to a year (other than a financial year) or a month means a calendar
year or calendar month respectively;

(h)                                 a
reference to a party is to a party to this agreement, and a reference to a
party to a document includes the party’s executors, administrators, successors
and permitted assigns and substitutes;

(i)                                     a
reference to a person includes a natural person, partnership, firm, body
corporate, limited liability company, trust, joint venture, association,
governmental or local authority or agency or other entity;

(j)                                     a
reference to a statute, ordinance, code or other law includes regulations and
other instruments under it and consolidations, amendments, re-enactments or
replacements of any of them;

 12
 

(k)                                  any
authorities, associations, bodies and entities whether statutory or otherwise
will, in the event of such authority, association, body or entity ceasing to
exist or being reconstituted, replaced or the powers or functions thereof being
transferred to or taken over by any other authority, association, body or
entity, be deemed to refer respectively to the authority, association, body or
entity established, constituted or substituted in lieu thereof which exercises
substantially the same powers or functions;

(l)                                     the
meaning of general words is not limited by specific examples introduced by
including, for example or similar expressions;

(m)                               any
agreement, representation, warranty or indemnity by two or more Parties
(including where two or more persons are included in the same defined term)
binds them jointly and severally;

(n)                                 any
agreement, representation, warranty or indemnity in favour of two or more
Parties (including where two or more persons are included in the same defined
term) is for the benefit of them jointly and severally;

(o)                                 a
rule of construction does not apply to the disadvantage of a party because the
party was responsible for the preparation of this agreement or any part of it;
and

(p)                                 if
a day on or by which an obligation must be performed or an event must occur is
not a Business Day, the obligation must be performed or the event must occur on
or by the next Business Day.

1.3          Headings

Headings are
for ease of reference only and do not affect interpretation.

1.4          GST

(a)                                  Expressions
set out in italics in this clause 1.4 bear the same meaning as those
expressions in the GST Law.

(b)                                 All
Payments have been set or determined without regard to the impact of GST.

(c)                                  Subject
to clause 1.4(e), if the whole or any part of a Payment by a party (including
amounts referred to in clause 1.4(d)) is the consideration for a taxable supply, the GST Amount in respect of the Payment
must be paid to the supplier of the taxable supply
as an additional amount, at the same time and in the same manner as the Payment
is otherwise payable or as otherwise agreed in writing.

(d)                                 If
a Payment due under this agreement is a reimbursement or indemnification by one
party of an expense, loss or liability incurred or to be incurred by the other
party, the Payment will exclude any GST forming part of the amount to be
reimbursed or indemnified to the extent to which the other party can claim an input tax credit.

 13
 

(e)                                  A
party’s obligation to make payment under clause 1.4(c) is subject to a valid
tax invoice being delivered to the party liable to pay for the taxable supply.

(f)                                    Where
the supplier has become subject to any penalties or interest because of a late
payment by the supplier to the Australian Taxation Office of any GST Amount and
that late payment is a result of the failure of the recipient
to comply with the terms of this clause 1.4, the recipient
must pay to the supplier  an additional
amount on demand equal to the amount of those penalties and interest.

(g)                                 The
recipient must indemnify the supplier  on demand in respect of all loss or damage arising from a
breach by the recipient of its obligations
under this clause 1.4.

1.5          Construction
of clauses 6.1 and 6.2

Each covenant,
warranty and representation set out in clauses 6.1 and 6.2:

(a)                                  is
to be construed separately and the meaning of each is in no way limited by
reference to any other covenant, warranty or representation contained in this
agreement; and

(b)                                 is
to be construed so that each of them continues to have effect despite the
cessation of the Underwriter’s liability under clause 8.6.

1.6          Several
Liability and Rights of eG and Bell

(a)                                  For
the purpose of this agreement, any reference to “Underwriter” will mean a
reference to eG and Bell in their respective Agreed Proportions.

(b)                                 Subject
to the provisions of this agreement:

(i)                                     any
and every liability of the Underwriter under this agreement will be owed and
required to be performed on a several and not a joint basis, by eG and Bell in
their respective Agreed Proportions and only in respect of the Underwritten
Shares of the respective Underwriter; and

(ii)                                  any
and every right or entitlement of eG and Bell under this agreement will be held
and capable of being exercised or enforced on a several and not a joint basis,
by eG and Bell in their respective Agreed Proportions and only in respect of
the Underwritten Shares of the respective Underwriter.

1.7          Interpretation
of reference to time

Unless
expressly provided for otherwise in this agreement, any reference to a time,
will mean:

(a)                                  in
respect or in the context of the offer of Australian EI Shares, or any dealing
with or pursuant to the provisions of the Australian EI Prospectus, AEST; and

 14
 

(b)                                 in
respect or in the context of the offer of US EI Shares or the US Placement
Shares, or any dealing with or pursuant to the provisions of the US EI
Prospectus or the US Placement Prospectus, Eastern Standard Time as that phrase
is commonly used and applied in the United States.

2.             Underwriting
and Commitment

2.1          Appointment

Subject to and
in accordance with the terms contained in this agreement, the Company appoints
each Underwriter to underwrite their respective Agreed Proportion of the
Entitlement Issue and each Underwriter agrees to do so.

2.2          Sub-underwriting

Without
limiting the Underwriter’s liability under clause 2.1, the Underwriter may
appoint sub-underwriters to sub-underwrite the Entitlement Issue, on such terms
and conditions as the Underwriter determines.

2.3          Conditions
Precedent

(a)                                  The
obligation of the Underwriter under this agreement to subscribe for the
Shortfall Shares is subject to satisfaction (on terms, in a manner and in a
form reasonably required by the Underwriter) of each of the following
conditions precedent:

(i)                                     the
announcement made by the Company to:

(A)                              the
SEC and NASDAQ on or before 6.00 am AEST on the Announcement Date; and

(B)                                ASX
on or before 10.00 am AEST on the Announcement Date,

and each being in the form of approved by the Underwriter;

(ii)                                  the
Company not having made any other announcement to the ASX, the SEC, NASDAQ, its
shareholders or the public generally which in any way deviates from, amends,
impacts or relates to the contents of the Announcement;

(iii)                               each
EI Prospectus being approved by the Company (who must notify the Underwriter in
writing of its approval) and despatched on or before the Despatch Date;

(iv)                              the
delivery of the Certificate in accordance with clause 8.1(c);

(v)                                 the
Company notifying the Underwriter of the number of Shortfall Shares in
accordance with the provisions of clause 8.1(a);

(vi)                              the
Underwriter receiving from the Company, a copy of the written confirmation from
the US Placement Agent to the Company, that the 

 15
 

sale of all the US Placement Shares has been
completed in accordance with the terms and conditions of the US Placement
Agency Agreement and each of the US Subscription Agreements; and

(vii)                           the
Company procuring the lodgement of:

(A)                              the
US Placement Prospectus with SEC by no later than 12 noon on 3 May, 2007;

(B)                                the
US EI Prospectus with SEC by no later than 12 noon on 10 May, 2007; and

(C)                                the
Australian EI Prospectus with ASIC by no later than 12 noon on 10 May, 2007,

and in each instance, each such Prospectus being, prior to such
lodgement, in a form and content that has been approved of by the Underwriter.

(b)                                 If
any one or more of the above conditions precedent is or are not satisfied by
5.00 p.m. on the relevant date (if any) specified in respect of that condition
precedent or those condition precedents in this clause 2.3 or elsewhere in this
agreement, the Underwriter in its sole and absolute discretion may terminate
this agreement by notice in writing to the Company.

3.             EI
Prospectus

3.1          Form
of EI Prospectus

Each EI
Prospectus must be issued substantially in the form previously agreed by the
Company and the Underwriter.

3.2          Company’s
Obligations

The Company
will:

(a)                                  due diligence: take all reasonable steps to satisfy the
Underwriter that the Company is able to prove that it took reasonable
precautions and exercised due diligence to ensure that all statements included
in (i)  the Australian EI  Prospectus are true and not misleading and
that there are no material omissions from the Australian EI Prospectus and (ii)
none of the US Registration Statement, the US EI Prospectus nor the US
Placement Prospectus will contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;

(b)                                 compliance: ensure that each of the EI Prospectuses, the US
Registration Statement and the US Placement Prospectus comply with the
applicable Compliance Rules;

 16
 

(c)                                  issue of the EI Prospectuses: authorise the issue of each EI
Prospectus on the Despatch Date;

(d)                                 approval of advertising: ensure that all advertising and publicity
and all material relating to advertising and publicity to be effected,
published or distributed by or on behalf of the Company in respect of or in
relation to the Entitlement Issue or the Company:

(i)                           complies
with the applicable Compliance Rules including, if applicable, filing any such
materials as a “free-writing prospectus” (as defined pursuant to Rule 405 under
the Securities Act) with the SEC in accordance with the Securities Act;

(ii)                        without
limitation to the provisions of paragraph (d)(i):

(A)                                        contains
statements of facts that are true and accurate in all material respects and not
misleading in any material respect in the form and context in which they
appear; and

(B)                                          does not
contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;

(iii)                     is first
submitted to and approved by the Underwriter; and

(iv)                    if the
material refers to the Entitlement Issue or this agreement, unless otherwise
agreed by the Underwriter, includes and bears the name of the Underwriter;

(e)                                  availability of personnel: procure that the Company’s
executive directors and senior executives attend, as requested on reasonable notice,
any briefings for or presentations to brokers and potential subscribers for
Shares that are organised by or on behalf of the Underwriter prior to or during
the Entitlement Issue Period and make presentations the contents of which are
first approved by the Underwriter.

3.3          Advertising

The Underwriter will be entitled to make
announcements, or place advertisements in such financial and other newspapers
and journals outside the United States as it may choose, stating that the
Underwriter has acted as the exclusive underwriter of the Company in connection
with the Entitlement Issue.

4.             ASX
Listing

The Company will:

(a)                                  on
or before the relevant date specified in:

 17
 

(i)                                     the
EI Prospectus, make application for the Quotation of the Australian EI Shares;
and

(ii)                                  the
US EI Prospectus and the US Placement Prospectus, make application for the
official quotation of the US EI Shares and the US Placement Shares that are the
subject of the Entitlement Issue and the US Placement by the body or authority
that operates NASDAQ;

(b)                                 do
and perform all things within its power necessary to ensure that the permission
is granted for the:

(i)                                     Quotation
of the Australian EI Shares; and

(ii)                                  the
official quotation of the Entitlement Shares and the US Placement Shares by the
body or authority that operates NASDAQ;

either unconditionally or upon conditions reasonably acceptable to the
Underwriter;

(c)                                  immediately
deliver to the Underwriter such information and documents as the Underwriter
from time to time reasonably requires in order to assist the Company in
obtaining:

(i)                                     the
Quotation of the Australian EI Shares; and

(ii)                                  the
official quotation of the Entitlement Shares and the US Placement Shares by the
body or authority that operates NASDAQ.

	
  5.

  	
   

  	
  Entitlement Issue Period

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Entitlement Issue remains open during the
  Entitlement Issue Period except that the Closing Date may be varied by
  written agreement between the Company and the Underwriter.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Obligations of the Company

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Warranties

  
	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Without limitation to the provisions of clause 6.2,
  the Company warrants to and for the benefit of the Underwriter that:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  due incorporation: the Company
  is a company limited by shares duly incorporated under the laws of New South
  Wales and has all corporate power and authority necessary to own or hold its
  properties and to conduct the business in which it is engaged;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  power: the Company has the
  power, all approvals (including shareholder approvals) and all authorities
  necessary to permit it to enter into this agreement, lodge the Australian EI
  Prospectus with ASIC, lodge, file and issue the US Registration Statement,
  the US EI Prospectus (including all documents constituting a part thereof and
  incorporated by reference therein) and the US

  

 

 18
 

Placement Prospectus (including
all documents constituting a part thereof and incorporated by reference
therein) and enter into the US Placement Agency Agreement and the US
Subscription Agreements in connection with the US Placement and otherwise
perform all its obligations and duties in connection with the Entitlement Issue
and the US Placement;

(c)                                  approvals: no approval is needed under the Compliance Rules
or otherwise from the Company’s shareholders or financiers, in order to enter
this agreement, lodge the Australian EI Prospectus with ASIC, lodge, file and
issue the US Registration Statement, the US EI Prospectus (including all
documents constituting a part thereof and incorporated by reference therein)
and the US Placement Prospectus (including all documents constituting a part
thereof and incorporated by reference therein) and enter into the US Placement
Agency Agreement and the US Subscription Agreements in connection with the US
Placement and otherwise make the Entitlement Issue or the US Placement, or to
issue and allot the Underwritten Shares or the US Placement Shares;

(d)                                 execution: at a duly constituted meeting of the Company’s
board of directors a resolution was passed agreeing to authorise the execution
and delivery of this agreement, the US Placement Agency Agreement and the US
Subscription Agreements and that such resolution has not been rescinded or
amended to any extent;

(e)                                  binding obligations: this agreement, the US Placement Agency
Agreement and the US Subscription Agreements each constitutes the legal, valid
and binding obligation of the Company and, subject to any necessary stamping
and registration, is enforceable against the Company in accordance with its
terms;

(f)                                    compliance: each Group Company is not in breach of and will
comply with:

(i)                                     its
constituent documents; and

(ii)                                  all
applicable Compliance Rules;

(g)                                 consents: the Company has obtained all necessary consents,
approvals, rectifications and authorisations to enable it to enter into and
comply with the terms of this agreement, the US Placement Agency Agreement and
the US Subscription Agreements, and the issue and allotment of the Entitlement
Shares and the US Placement Shares;

(h)                                 issue of secondary sale notice: the Company is able to issue
a notice under and in accordance with the provisions of clause 708A(6) of the
Corporations Act in respect of the US EI Shares and the US Placement Shares;

(i)                                     related parties: the Company will ensure that no related
party of the Company (as such term is defined in the Listing Rules)
participates in the Entitlement Issue or the US Placement, unless it would not
be unlawful for them to do so;

 19
 

(j)                                     no material adverse change: each Group Company has carried
on business in the ordinary course since the Last Accounts Date without any
material adverse change in their collective or respective financial position,
assets, prospects, general affairs or management;

(k)                                  accuracy of statements made by the Company: all statements
and all information provided by each Group Company or any employees or agents
of any Group Company to any Indemnified Party during the investigations made by
the Company or the Underwriter are complete, true and correct in all material
respects and in making such statements or providing such information nothing material
has been omitted which would make such statements or information misleading in
any respect;

(l)                                     litigation: no Group Company is engaged in or has pending or
threatened against it or them any litigation, arbitration, mediation,
administrative proceedings, claim or dispute of importance to all or any of
Group Company taken as a whole which would be detrimental to:

(i)                                     the
value, utility, title in or other right to use or exploit, the Intellectual
Property of, or claimed by, any Group Company;

(ii)                                  the
ability of the Company to perform any of its obligations under this agreement,
the US Placement Agency Agreement or the US Subscription Agreements;

(iii)                               the
ability of the Company to make the Entitlement Issue or the US Placement; or

(iv)                              the
assets, financial position performance or prospects of any Group Company,

and there are no circumstances known to the said persons who are
directors of any Group Company that are likely to give rise to any such
litigation, arbitration, mediation, administrative proceedings, claim or
dispute;

(m)                               repayment of borrowings: no borrowing of any Group Company
has been declared payable before its stated maturity and no circumstances have
arisen or, so far as the directors of the Company are aware, are likely to
arise such that any person is or would become entitled to require payment of
any indebtedness of any Group Company before its due date;

(n)                                 power to pay fees: the Company has power to pay all amounts
paid or payable and from time to time paid or payable by the Company to the
Underwriter under this agreement and by the Company to the US Placement Agent
under the US Placement Agency Agreement without any further sanction or consent
of members of the Company or any class of them or of any other person;

 

 20

	
  (o)

  	
  constitution: the constitution
  of each Group Company together with any amendments to them provided to the
  Underwriter are complete and up to date and comply with the Compliance Rules;

  
	
   

  	
   

  
	
  (p)

  	
  licences, permissions etc: each
  Group Company holds all licences and approvals necessary to enable it to
  carry on each of its businesses and to own and operate its assets and all
  such licences and approvals are in full force and effect and are not liable
  to be revoked and if renewal is required, the Company is not aware of any
  reason why renewal will or may not be granted or granted upon terms and
  conditions that are, or are likely to be or become, less advantageous to the
  relevant Group Company;

  
	
   

  	
   

  
	
  (q)

  	
  due disclosure: all
  information relating to the Entitlement Issue or the Company material to the
  Underwriter has been fully disclosed in accordance with the Compliance Rules
  or specifically disclosed to the Underwriter and there are no circumstances
  known or which on reasonable enquiry would have been known to the Company or
  any of its directors, proposed directors, officers, employees, agents or
  advisers which have not been fully disclosed in accordance with the
  Compliance Rules or specifically disclosed to the Underwriter;

  
	
   

  	
   

  
	
  (r)

  	
  rights to Underwritten Shares: no
  person has any conflicting right, contingent or otherwise, to purchase or
  subscribe for or to be offered for purchase or subscription, any Shares or
  other Securities in the capital of the Company otherwise than in accordance
  with the Entitlement Issue, the Subscription Agreements entered into in
  connection with the US Placement and this agreement;

  
	
   

  	
   

  
	
  (s)

  	
  information disclosed: the
  Company has disclosed to the Underwriter all information which would be
  required to be disclosed in a notice given under section 708A(6)(e) in
  relation to the issue of the Entitlement Shares;

  
	
   

  	
   

  
	
  (t)

  	
  Encumbrances: except as
  disclosed to the Underwriter:

  
	
   

  
	
   

  	
  (i)

  	
  the assets of each Group Company; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Entitlement Shares,

  
	
   

  
	
   

  	
  are not, and are not intended or proposed to become,
  the subject of any Encumbrances;

  
	
   

  
	
  (u)

  	
  Pari Passu: each Entitlement
  Share will be:

  
	
   

  
	
   

  	
  (i)

  	
  fully paid, rank equally with existing Shares
  (including, without limitation, the US Placement Shares) and will be, upon
  and after Quotation, freely tradeable on the market operated by the ASX or on
  NASDAQ; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  allotted free of any Encumbrance and not subject to
  any pre-emptive or analogous right;

  

 

 21
 

	
  (v)

  	
  no misleading information disclosed: all
  information, announcements, advertisements and publicity made or published by
  any Group Company in relation to the Entitlement Issue or the US Placement
  that:

  
	
   

  
	
   

  	
  (i)

  	
  the Company was required to disclose under the
  Compliance Rules, has been disclosed;

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  was, as of the date it was disclosed, and remains,
  not misleading or deceptive, does not contain any material omission and does
  not involve conduct that is misleading or deceptive; and

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  did not, as of the date it was disclosed, and do
  not, contain any untrue statement of a material fact or omit to state a
  material fact necessary in order to make that statements therein, in the
  light of the circumstances under which they were made, not misleading;

  
	
   

  
	
  (w)

  	
  no breach of existing obligations: the
  performance by the Company of any matter or transaction contemplated by this
  agreement, the US Placement Agency Agreement or a Prospectus does not, and
  will not, breach and any provision of any judgement binding on it, the
  Constitution, any law or any document, agreement or other arrangement binding
  on it or its assets;

  
	
   

  	
   

  
	
  (x)

  	
  12 months continuous Quotation: all
  of the Shares have been continuously Quoted for the period of 12 consecutive
  calendar months prior to and ending on the date on which the Entitlement
  Shares are to be issued and allotted (12 Month Period)
  in accordance with the Entitlement Issue;

  
	
   

  	
   

  
	
  (y)

  	
  No trading suspension: trading  in the Shares has not been suspended from NASDAQ or on
  any market operated by ASX on which the Shares have been so Quoted, in each
  case, for more than a total of 5 days throughout the 12 Month Period;

  
	
   

  	
   

  
	
  (z)

  	
  no exemption under Section 111: no
  exemption under section 111AS or Section 111AT, each of the Corporations Act,
  has been issued in relation to the Company or any director or auditor of the
  Company, at any time throughout the 12 Month Period;

  
	
   

  	
   

  
	
  (aa)

  	
  no order under section 340: no
  order under Section 340 or Section 341 of the Corporations Act has been
  issued in relation to the Company or any director or auditor of the Company,
  at any time throughout the 12 Month Period;

  
	
   

  	
   

  
	
  (bb)

  	
  issued capital: as at the
  Operative Date, the complete issued capital of the Company is, but for the
  sake of clarity excludes any Entitlement Shares or US Placement Shares,:

  
	
   

  
	
   

  	
  (i)

  	
  46,572,084 Shares; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  640,000 Options;

  
	
   

  
	
  (cc)

  	
  subsidiaries: except for
  Progen Overseas Pty limited ACN 074 656 509, the Company has no subsidiaries
  within the meaning of Rule 405 under the  

  

 

 22
 

	
  ;

  	
  Securities Act and the Company holds no ownership or
  other interest, legal or beneficial, direct or indirect, in any corporation,
  partnership, joint venture or other business entity

  
	
   

  	
   

  
	
  (dd)

  	
  Underwritten Shares offered: the
  Entitlement Shares have been duly and validly authorised and, when issued and
  delivered against payment therefore, will be duly and validly issued, fully
  paid and non-assessable, and the Entitlement Shares will conform to the
  description thereof contained in the Prospectus and the US Placement
  Prospectus and will be free from all liens, charges and other Encumbrances;

  
	
   

  	
   

  
	
  (ee)

  	
  US Placement Shares offered: the
  US Placement Shares have been duly and validly authorised and, when issued
  and delivered against payment therefore, will be duly and validly issued,
  fully paid and non-assessable, and the US Placement Shares will conform to
  the description thereof in each Prospectus and the US Placement Prospectus
  and will be free from all liens, charges and other Encumbrances;

  
	
   

  	
   

  
	
  (ff)

  	
  no rights or restrictions: except
  as described in each Prospectus, or as has been validly waived, there is no
  pre-emptive or other right to subscribe for or to purchase, nor any
  restriction upon the voting or transfer of, any Entitlement Share or US
  Placement Share pursuant to the Constitution or any agreement or other
  instrument to which any Group Company is a party;

  
	
   

  	
   

  
	
  (gg)

  	
  transaction permitted: except
  as disclosed in each Prospectus and the US Placement Prospectus, the
  execution, delivery and performance by it of this agreement, the US Placement
  Agency Agreement and the US Subscription Agreements, the issue of each
  Prospectus and each of the other documents to be entered into in connection
  with the transactions contemplated in this agreement and the Placement Agency
  Agreement and the undertaking of the Entitlement Issue and the US Placement
  (collectively the “Transactions”)
  and the consummation of the Transactions will not conflict with or result in
  a breach or violation of any of:

  
	
   

  
	
   

  	
  (i)

  	
  the terms or provisions of, or constitute a default
  under, any indenture, mortgage, deed of trust, loan agreement or other
  material agreement or instrument to which any Group Company is a party or by
  which any Group Company is bound or to which any of the property or assets of
  a Group Company is subject; or

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  any provision of the charter or by-laws or
  constitutions of a Group Company or any statute or any order, rule or
  regulation of any court or governmental agency or body having jurisdiction
  over a Group Company or any of its properties or assets or the Listing Rules,

  
	
   

  
	
   

  	
  and except for such consents, approvals,
  authorisations, registrations or qualifications as may be required under the
  Corporations Act (including the filing of a Prospectus), the Securities Act,
  the Exchange Act and applicable United States state securities laws in
  connection with the subscription or purchase and distribution of the
  Entitlement Shares pursuant to the Entitlement 

  

 

 23
 

	
  

  	
  Issue or the US Placement Shares pursuant to the US
  Placement, no consent, approval, authorisation or order of, or filing or
  registration with, any such court or governmental agency or body is required
  for the execution, delivery and performance of this agreement, the US
  Placement Agency Agreement, the US Subscription Agreements or any of the
  other documents to be entered into in connection with any of the Transactions
  by the Company or any other Group Company and the consummation of the
  Transactions, except for such consents, approvals, authorisations, orders,
  filings or registration as have been obtained or made;

  
	
   

  	
   

  
	
  (hh)

  	
  Prospectus and conduct of the Entitlement Issue
  and US Placement: each EI Prospectus, the US Prospectus,
  the US Placement Agency Agreement, the US Subscription Agreements and the
  conduct of the Entitlement Issue and the US Placement will comply, or be
  effected in compliance, with all Compliance Rules and all material agreements
  binding on each Group Company, in all material respects;

  
	
   

  	
   

  
	
  (ii)

  	
  ASIC, ASX, NASDAQ and SEC relief: the
  Company has obtained or will obtain from ASIC, ASX, NASDAQ and SEC prior to
  lodgement of the Australian EI Prospectus and the filing with the SEC of the
  US EI Prospectus and the US Placement Prospectus, as applicable, all relief,
  exemptions, modifications or waivers of the Compliance Rules necessary in
  order to undertake the Entitlement Issue and the US Placement;

  
	
   

  	
   

  
	
  (jj)

  	
  information: all information
  provided by or on behalf of the Company to the Underwriter in respect of the
  Group Companies, the Entitlement Issue and the US Placement:

  
	
   

  
	
   

  	
  (i)

  	
  is true and accurate in all material respects;

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  is not misleading or deceptive nor contains any
  material omission;

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  did not, as of the date it was disclosed, and does
  not, contain any untrue statement of a material fact or omit to state a
  material fact necessary in order to make that statements therein, in the
  light of the circumstances under which they were made, not misleading; and

  
	
   

  	
   

  
	
   

  	
  (iv)

  	
  is sufficiently included in each EI Prospectus and
  the US Placement Prospectus in order to satisfy the content and disclosure
  requirements of applicable Compliance Rules;

  
	
   

  
	
   

  	
  and the Company has not omitted to give to the
  Underwriter any information that is or is likely to be material to the making
  of an informed investment decision in relation to underwriting the offer of
  the Underwritten Shares pursuant to the Entitlement Issue or in relation to
  applying for US Placement Shares under the US Placement;

  
	
   

  	
   

  
	
  (kk)

  	
  no winding up: no action or
  proceeding has been taken which is likely to lead to the winding up or
  liquidation of any Group Company or its assets coming under the control of a
  controller, and no Group Company has:

  

 

 24
 

	
  (i)

  	
  voluntarily commenced any proceeding or filed any
  petition seeking relief under Title 11 of the United States Code or any other
  federal or state bankruptcy, insolvency or similar law;

  
	
   

  	
   

  
	
  (ii)

  	
  consented to the institution of, or failed to
  controvert in a timely and appropriate manner, any such proceeding or the
  filing of any such petition;

  
	
   

  	
   

  
	
  (iii)

  	
  applied for or consented to the appointment of a
  receiver, trustee, custodian, sequestrator or similar official for the
  corporation or for any part of its property;

  
	
   

  	
   

  
	
  (iv)

  	
  filed an answer admitting the material allegations
  of a petition filed against it in any such proceeding;

  
	
   

  	
   

  
	
  (v)

  	
  made or proposed to make a general arrangement,
  composition or assignment with or for the benefit of creditors or declares or
  proposes to declare a general moratorium on the payment of its debts;

  
	
   

  	
   

  
	
  (vi)

  	
  become unable, admitted in writing, its inability or
  failed generally to pay its debts as they become due; or

  
	
   

  	
   

  
	
  (vii)

  	
  taken corporate action for the purpose of effecting
  any of the foregoing;

  
	
   

  
	
   

  	
  and an involuntary proceeding in relation to a Group
  Company has not been commenced or an involuntary petition filed in a court of
  competent jurisdiction seeking:

  
	
   

  
	
   

  	
  (viii)

  	
  relief in respect of an entity, or of a substantial
  part of its property, under Title 11 of the United States Code or any other
  federal or state bankruptcy, insolvency or similar law;

  
	
   

  	
   

  
	
   

  	
  (ix)

  	
  the appointment of a receiver, trustee, custodian,
  sequestrator or similar official to the corporation or for any part of its
  property; or

  
	
   

  	
   

  
	
   

  	
  (x)

  	
  the winding-up or liquidation of the corporation;

  
	
   

  
	
   

  	
  where such proceeding or petition has continued
  undismissed for 90 days or an order or decree approving or ordering any of
  the foregoing has continued unstayed and in effect for ninety 90 days, or
  anything analogous to or something having a substantially similar effect to, anything
  referred to in this paragraph (jj) happens in connection with that person
  under any applicable overseas law or any law that commences or is amended
  after the date of this agreement;

  
	
   

  	
   

  
	
  (ll)

  	
  no registration statement
  required: except
  as described in each EI Prospectus, or that has been validly waived, there are no contracts, agreements or
  understandings between the Company and any person, granting such person the
  right to require the Company to file a registration statement under the
  Securities Act with respect to any Securities owned or to be owned by such  

  

 

 25
 

	
  

  	
  person or to require the
  Company to include such Securities in US Registration Statement related to
  the Entitlement Issue or the US Placement or with any other Securities being
  registered pursuant to any registration statement filed by the Company under
  the Securities Act;

  
	
   

  	
   

  
	
  (mm)

  	
  no other sale or issue: except for the grant of Options and the
  issue of any Shares upon the exercise of those Options, or as otherwise disclosed
  in each EI Prospectus and the US Placement Prospectus, or the details of which have been
  disclosed in writing to the Underwriter or the ASX prior to the date of this
  agreement, the Company has not sold or issued any Securities during the
  12-month period preceding the date of the Prospectus, including any sales
  pursuant to Rule 144A, Regulation D or Regulation S under the Securities Act;

  
	
   

  	
   

  
	
  (nn)

  	
  financial statements: the financial statements (including the
  related notes and supporting schedules) included in each EI Prospectus
  and the US Placement Prospectus present
  fairly, in all material respects, the financial condition and results of
  operations of the Group, at the dates and for the periods indicated, and have
  been prepared in conformity with applicable accounting principles;

  
	
   

  	
   

  
	
  (oo)

  	
  due diligence: the Due Diligence Programme has been
  properly implemented and carried out in all material respects in accordance
  with the Due Diligence Planning Memorandum (unless otherwise altered in the
  Due Diligence Report), the statements contained in each EI Prospectus
  and the US Placement Prospectus have
  been verified by appropriately qualified persons, the Due Diligence Results
  are the results of the investigations described in the Due Diligence Planning
  Memorandum, the Verification Material contains the material collected to
  verify the statements made in each EI Prospectus and the US Placement
  Prospectus and the Company has a
  reasonable basis to believe that the Verification Material is accurate in all
  material respects;

  
	
   

  	
   

  
	
  (pp)

  	
  Intellectual Property: each Group Company:

  
	
   

  
	
   

  	
  (i)

  	
  owns or possesses the
  right to use all Intellectual Property as described in each EI
  Prospectus and the US Placement Prospectus;

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  conducts its business or
  businesses in a manner that does not or will not violate or otherwise
  conflict with, and has not received any notice of any claim of any such
  violation of or conflict with, any right of others to any of the Intellectual
  Property; and

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  has not granted or
  assigned to any other person or entity (which is not a Group Company) any
  right to use, manufacture, have manufactured, assemble, offer to sell or sell
  the current products, processes, systems and services of a Group Company or
  those products, processes, systems and services described in each EI
  Prospectus and the US Placement Prospectus;

  
	
   

  
	
  (qq)

  	
  no other relationships: no relationship or circumstances, direct
  or indirect, exists, between or among any Group Company on the one hand, and
  the  

  

 

 26
 

	
  

  	
   

  	
  directors, officers,
  shareholders, customers or suppliers of any Group Company on the other hand,
  which is required to be disclosed in each EI Prospectus and the US
  Placement Prospectus, and
  which is not so disclosed;

  
	
   

  	
   

  	
   

  
	
  (rr)

  	
   

  	
  Investment Company Act: the Company is not and, after giving
  effect to the Transactions and the application of the net proceeds therefrom
  as described in each EI Prospectus and the US Placement Prospectus, will not be, an “investment company” as
  defined in the United States Investment Company Act of 1940, as amended, and
  the rules and regulations of the SEC thereunder;

  
	
   

  	
   

  	
   

  
	
  (ss)

  	
   

  	
  US Registration Statement effectiveness:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  the US Registration Statement has heretofore become
  effective under the Securities Act or, with respect to any registration
  statement to be filed to register the offer and sale of US EI Shares pursuant
  to Rule 462(b) under the Securities Act, will be filed with the SEC and
  become effective under the Securities Act in accordance with the rules under
  the Securities Act; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  no stop order of the SEC preventing or suspending
  the use of the US Registration Statement, the US EI Prospectus or the US
  Placement Prospectus, or the effectiveness of the US Registration Statement,
  has been issued, and no proceedings for such purpose pursuant to Section 8A
  of the Securities Act against the Company or related to the Entitlement Issue
  or the US Placement have been instituted or, to the Company’s knowledge, are
  contemplated by the SEC;

  
	
   

  	
   

  	
   

  
	
  (tt)

  	
   

  	
  US EI Prospectus:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  the US EI Prospectus, at the time when sales of US
  EI Shares are being made, and at Completion, will not contain any untrue
  statement of a material fact or omit to state a material fact necessary in
  order to make the statements therein, in the light of the circumstances under
  which they were made, not misleading; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  no statement of material fact included in the US EI
  Prospectus has been omitted from the US EI Prospectus at the time when sales
  of US EI Shares are being made and no statement of material fact included in
  the US EI Prospectus at the time when sales of US EI Shares are being made
  that is required to be included in the US EI Prospectus has been omitted
  therefrom;

  
	
   

  	
   

  	
   

  
	
  (uu)

  	
   

  	
  Issuer Free Writing Prospectus: other
  than the US Base Prospectus and the US Prospectus Supplement, the Company
  (including its agents and representatives) has not made, used, prepared,
  authorised, approved or referred to and will not prepare, make, use,
  authorise, approve or refer to any “written communication” (as defined in
  Rule 405 under the Securities Act) that constitutes an offer to sell or
  solicitation of an offer to buy the US EI Shares (each such communication by
  the Company or its agents and representatives  

  
					

 

 27
 

(other than a communication
referred to in clause (i) below) an “Issuer Free Writing
Prospectus”) other than:

(i)                                     any
document not constituting a prospectus pursuant to Section 2(a)(10)(a) of the
Securities Act or Rule 134 under the Securities Act; or

(ii)                                  the
documents and other written communications approved in writing in advance by
the Underwriter.

Each such Issuer Free Writing Prospectus, if
any, has been filed in accordance with the Securities Act (to the extent
required thereby) and, when taken together with the US Base Prospectus, the US
Prospectus Supplement and any other information included in the US EI
Prospectus at the time when sales of US EI Shares are being made accompanying,
or delivered prior to delivery of, such Issuer Free Writing Prospectus, and at
Completion, will not, contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

No Issuer Free Writing Prospectus, if any, at
the time of the filing, conflicted with or will conflict with the information
contained in the US Registration Statement on file at such time.

The Company has not distributed and will not
distribute in the United States or to US Persons, prior to the completion of
the distribution of the Shares, any offering material in connection with the
offering and sale of the Shares other than the US EI Prospectus or the US
Registration Statement, including copies of the documents incorporated by
reference therein.

(vv)                          US Registration Statement compliance: the US Registration
Statement complied when it became effective, complies as of the date hereof
and, as amended or supplemented, at each time when sales of US EI Shares are
made and at all times during which a prospectus is required by the Securities
Act to be delivered (whether physically or through compliance with Rule 172
under the Securities Act or any similar rule) in connection with any sale of
Entitlement Shares, will comply, in all material respects, with the
requirements of the Securities Act.

The conditions to the use of Form F-3 in
connection with the offering and sale of the Entitlement Shares as contemplated
hereby have been satisfied.

The US Registration Statement meets, and the
offering and sale of the Entitlement Shares as contemplated by the US EI
Prospectus complies with, the applicable requirements of Rule 415 under the
Securities Act (including, without limitation, Rule 415(a)(5)).

The US Registration Statement did not, as of
the time of the US Registration Statement’s effectiveness for purposes of
Section 11 of the Securities Act, contain an untrue statement of a material
fact or omit to state a material fact 

 28
 

	
  

  	
  required to be stated therein or necessary to make
  the statements therein not misleading.

  
	
   

  	
   

  
	
   

  	
  The US EI Prospectus will comply, as of the date
  that it is filed with the SEC, the date of its delivery to Shareholders in
  the United States or that are US Persons, at each time when sales of US EI
  Shares are made and at all times during which a prospectus is required by the
  Securities Act to be delivered (whether physically or through compliance with
  Rule 172 under the Securities Act or any similar rule) in connection with any
  sale of Entitlement Shares, in all material respects, with the requirements
  of the Securities Act (including, without limitation, Section 10(a) of the
  Securities Act, as applicable).

  
	
   

  	
   

  
	
   

  	
  At no time during the period that begins on the date
  the US Prospectus Supplement together with the US Base Prospectus is filed
  with the SEC and ends at the later of the last time that a sale of US EI
  Shares has been made and the end of the period during which a prospectus is
  required by the Securities Act to be delivered (whether physically or through
  compliance with Rule 172 under the Securities Act or any similar rule) in
  connection with any sale of Entitlement Shares, did or will the US Base
  Prospectus or the US Prospectus Supplement, as then amended or supplemented,
  include an untrue statement of a material fact or omit to state a material
  fact necessary in order to make the statements therein, in the light of the
  circumstances under which they were made, not misleading.

  
	
   

  	
   

  
	
   

  	
  Each of the documents incorporated by reference into
  the US Base Prospectus, at the time such document was filed with the SEC or
  at the time such document became effective, as applicable, complied, in all
  material respects, with the requirements of the Exchange Act and did not
  include an untrue statement of a material fact or omit to state a material
  fact necessary in order to make the statements therein, in the light of the
  circumstances under which they were made, not misleading;

  
	
   

  	
   

  
	
  (ww)

  	
  “foreign private issuer”: the
  Company qualifies as a “foreign private issuer” as such term is defined in
  the Exchange Act;

  
	
   

  	
   

  
	
  (xx)

  	
  not “ineligible issuer”: the
  Company is not, and will not become, an “ineligible issuer” as of the
  eligibility determination date set forth in Rule 164(h) under the Securities
  Act in connection with the offering pursuant to Rules 164, 405 and 433 under
  the Act.

  
	
   

  	
   

  
	
   

  	
  All parts of the US EI Prospectus that the Company
  is required to file pursuant to Rule 433(d) under the Securities Act have
  been, or will be, filed with the SEC in accordance with the requirements of
  the Securities Act.

  
	
   

  	
   

  
	
   

  	
  The parts of the US EI Prospectus that the Company
  has filed, or is required to file, pursuant to Rule 433(d) under the
  Securities Act or that was prepared by or on behalf of or used or referred to
  by the Company comply or will comply in all material respects with the
  requirements of the Securities Act and the applicable rules and regulations
  of the SEC thereunder.

  

 

 29
 

	
  (yy)

  	
  independent auditors: Ernst
  & Young LLP, who has certified certain financial statements of the Company
  and delivered its report with respect to the audited consolidated financial
  statements and schedules included in the US Registration Statement and the US
  EI Prospectus, or incorporated by reference therein, is an independent
  registered public accountant with respect to the Company as required by the
  Securities Act, and the applicable published rules and regulations
  thereunder;

  
	
   

  	
   

  
	
  (zz)

  	
  “margin securities”: neither
  the Company nor any of its Subsidiaries own any “margin securities” as that
  term is defined in Regulation U of the Board of Governors of the US Federal
  Reserve System, and none of the proceeds of the sale of the Entitlement
  Shares or US Placement Shares will be used, directly or indirectly, for the
  purpose of purchasing or carrying any margin security, for the purpose of
  reducing or retiring any indebtedness which was originally incurred to
  purchase or carry any margin security or for any other purpose which might
  cause any of the securities to be considered a “purpose credit” within the
  meanings of Regulations T, U or X of the Board of Governors of the US Federal
  Reserve System;

  
	
   

  	
   

  
	
  (aaa)

  	
  “forward looking statements”: no
  forward-looking statement (within the meaning of Section 27A of the
  Securities Act and Section 21E of the Exchange Act) contained in the US
  Registration Statement and the US EI Prospectus, has been made or reaffirmed
  without a reasonable basis or has been disclosed other than in good faith;

  
	
   

  	
   

  
	
  (bbb)

  	
  no integrated offers: neither the Company nor any
  affiliate (as defined in Rule 501(b) of Regulation D under the Securities
  Act):

  
	
   

  
	
   

  	
  (i)

  	
  sold, offered for sale, solicited offers to buy or
  otherwise negotiated in respect of, any security (as defined in the
  Securities Act) which is or would be integrated with the sale of the
  Entitlement Shares; or

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  offered, solicited offers to buy or sold the
  Entitlement Shares by any form of general solicitation or general advertising
  (as those terms are used in Regulation D under the Securities Act) or in any
  manner involving a public offering within the meaning of Section 4(2) of the
  Securities Act.

  
	
   

  
	
   

  	
  The Company will take
  reasonable precautions designed to ensure that neither it nor any person
  acting on its behalf will, within six months of the date Completion, directly
  or indirectly, offer or sell in the United States or to any US Person any
  Shares or any other Security of any Group Company which would be integrated
  with the sale of the Entitlement Shares in a manner that would require the
  offer and sale of any Entitlement Share under the Entitlement Issue or the US
  Placement Shares under the US Placement, to be registered under the
  Securities Act;

  
	
   

  
	
  (ccc)

  	
  no stabilisation: neither the
  Company nor its Related Bodies Corporate nor any of their officers or
  directors, or to the Company’s knowledge, any of their affiliates (as such
  term is defined in Rule 405 under the Securities Act), has

  
				

 

 30

	
  

  	
  taken or will take, directly or indirectly, any
  action designed or intended to stabilize or manipulate the price of any
  security of the Company, or which caused or resulted in, or which might in
  the future reasonably be expected to cause or result in, stabilization or
  manipulation of the price of any security of the Company;

  
	
   

  	
   

  
	
  (ddd)

  	
  Form F-3 eligibility: the
  Company is subject to the reporting requirements of Section 13 or 15(d) of
  the Exchange Act and is currently eligible to use Form F-3 of the SEC;

  
	
   

  	
   

  
	
  (eee)

  	
  Exchange Act registration and NASDAQ quotation:
  the Shares, including the Entitlement Shares, are registered pursuant to
  Section 12(g) of the Exchange Act and are accepted for quotation on NASDAQ,
  and the Company has taken no action designed to, or likely to have the effect
  of, terminating the registration of the Shares under the Exchange Act or
  delisting the Shares from NASDAQ, nor has the Company received any
  notification that the SEC or NASDAQ is contemplating terminating such
  registration or listing;

  
	
   

  	
   

  
	
  (fff)

  	
  no registration rights: except
  as described or incorporated by reference in the US Registration Statement
  and the US EI Prospectus, there are no contracts, agreements or
  understandings between the Company and any person granting such person the
  right to require the Company to register any securities with the SEC;

  
	
   

  	
   

  
	
  (ggg)

  	
  internal accounting controls: the
  Company and its Subsidiaries maintain a system of internal accounting
  controls sufficient to provide reasonable assurance that:

  
	
   

  
	
   

  	
  (i)

  	
  transactions are executed in accordance with
  management’s general or specific authorizations;

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  transactions are recorded as necessary to permit
  preparation of financial statements in conformity with US generally accepted accounting
  principles and to maintain accountability of assets;

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  access to assets is permitted only in accordance
  with management’s general or specific authorization; and

  
	
   

  	
   

  
	
   

  	
  (iv)

  	
  the recorded accountability for assets is compared
  with the existing assets at reasonable intervals and appropriate action is
  taken with respect to any differences;

  
	
   

  
	
  (hhh)

  	
  “disclosure controls and procedures”: the
  Company maintains “disclosure controls and procedures” (as defined in Rule
  13a-15(e) under the Exchange Act), and as of the end of the period covered by
  the Company’s Annual Report on Form 20-F for the fiscal year ended 30 June,
  2006, such disclosure controls and procedures were effective to perform the
  functions for which they were established.

  

 

 31
 

	
  

  	
  The Company’s auditors and the Audit Committee of
  the Board of Directors have been advised, based on the Company’s assessment
  of internal control over financial reporting, as of the fiscal year ended
  June 30, 2006, of:

  
	
   

  
	
   

  	
  (i)

  	
  any significant deficiencies and material weaknesses
  in the design or operation of internal control over financial reporting which
  could adversely affect the Company’s ability to record, process, summarize,
  and report financial data; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  any fraud, whether or not material, that involves
  management or other employees who have a role in the Company’s internal
  control over financial reporting.

  
	
   

  
	
   

  	
  Any material weakness in internal controls as of
  June 30, 2006 has been identified for the Company’s auditors and, in
  connection with the Company’s assessment of internal controls described
  above, there were no significant changes in internal controls or in other
  factors that have materially affected or are reasonable likely to affect the
  Company’s internal control over financial reporting;

  
	
   

  	
   

  
	
  (iii)

  	
  compliance practices: the
  Company has established and administers compliance practices applicable to
  the Company, to assist the Company and the directors, officers and employees
  of the Company in complying, to the extent required, with applicable
  regulatory guidelines under the US Sarbanes-Oxley Act of 2002 and the ASX
  Corporate Governance Council Principles of Good Corporate Governance and Best
  Practice Recommendations;

  
	
   

  	
   

  
	
  (jjj)

  	
  compliance with US Sarbanes-Oxley Act of 2002: there
  is and has been no failure on the part of the Company or any of the Company’s
  directors or officers, in their capacities as such, to comply in all material
  respects with any applicable provision of the US Sarbanes-Oxley Act of 2002,
  as in effect at the applicable time, and the rules and regulations
  promulgated in connection therewith, including Section 402 related to loans
  and Sections 302 and 906 related to certifications;

  
	
   

  	
   

  
	
  (kkk)

  	
  statistical and market-related data: any
  statistical and market-related data included or incorporated by reference in
  the US Registration Statement and the US EI Prospectus are based on or
  derived from sources that the Company reasonably and in good faith believes
  to be reliable and accurate, and such data agree, in all material respects,
  with the sources from which they are derived;

  
	
   

  	
   

  
	
  (lll)

  	
  impermissible political donations: neither
  the Company nor any of its Subsidiaries nor, to the Company’s knowledge, any
  employee of the Company or any Subsidiary, has made any contribution or other
  payment to any official of, or candidate for, any federal, state or foreign
  office in violation of any law necessary to be disclosed in the US
  Registration Statement and the US EI Prospectus in order to make the
  statements therein not misleading;

  
	
   

  	
   

  
	
  (mmm)

  	
  Money Laundering Laws: the
  operations of the Company and its Subsidiaries are and have been conducted at
  all times in compliance with  

  

 

 32
 

	
  

  	
  applicable financial recordkeeping and reporting
  requirements of the US Currency and Foreign Transactions Reporting Act of
  1970, as amended, applicable money laundering statutes of all relevant
  jurisdictions and applicable rules and regulations thereunder (collectively,
  the “Money Laundering Laws”), and no action, suit or proceeding by or before
  any court or governmental agency, authority or body or any arbitrator
  involving the Company or any of its Subsidiaries with respect to the Money
  Laundering Laws is pending, or to the knowledge of the Company, threatened;

  
	
   

  	
   

  
	
   

  	
  (nnn)

  	
  OFAC Sanctions: neither the
  Company nor any of its Subsidiaries nor, to the knowledge of the Company, any
  director, officer, agent, employee or affiliate of the Company or any of its
  Subsidiaries is currently subject to any United States sanctions administered
  by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) and the Company will not directly or indirectly
  use the proceeds of the Entitlement Issue or the US Placement, or lend,
  contribute or otherwise make available such proceeds to any Subsidiary, joint
  venture partner or other person or entity, for the purpose of financing the
  activities of any person currently subject to any United States sanctions
  administered by OFAC;

  
	
   

  	
   

  
	
   

  	
  (ooo)

  	
  payment of registration fee: the
  Company has paid the registration fee for the Entitlement Issue pursuant to
  Rule 456(b)(1) under the Securities Act or will pay such fee within the time
  period required by such rule (without giving effect to the proviso therein)
  and in any event prior to Completion;

  
	
   

  	
   

  
	
   

  	
  (ppp)

  	
  no approval of Shareholders: except
  as described in the US EI Prospectus, no approval of Shareholders under the
  rules and regulations of any trading market (including Rule 4350 of the
  NASDAQ Marketplace Rules), and no approval of the Shareholders thereunder is
  required for the Company to issue and deliver to Shareholders and other
  investors, the Entitlement Shares and the US Placement Shares, including such
  as may be required pursuant to Rule 4350 of the NASDAQ  Marketplace
  Rules;

  
	
   

  	
   

  
	
   

  	
  (qqq)

  	
  NASDAQ compliance: the Company
  is in compliance with applicable NASDAQ continued listing requirements and
  the Entitlement Issue complies and will continue to comply with all NASDAQ
  requirements, including the NASDAQ Marketplace Rules; there are no
  proceedings pending or, to the Company’s knowledge, threatened against the
  Company relating to the continued listing of the Shares on ASX or NASDAQ;

  
	
   

  	
   

  
	
   

  	
  (rrr)

  	
  good faith: all expressions of opinion, intention or
  expectation expressed in the EI Prospectus or the US Placement
  Prospectus are, in all material
  respects, made in good faith, after full and complete inquiry, objectively
  determined and are fairly and honestly held.

  
	
   

   

  
	
  6.2

  	
  Company covenants

  
	
   

  	
   

  
	
   

  	
  The Company covenants to and for the benefit of the
  Underwriter that:

  

 

 33
 

(a)                                  no breach: during the continuance of this agreement, the
Company and each other Group Company will not do or permit or acquiesce in any
activity which involves a material breach by the Company or that other Group
Company of any Compliance Rules;

(b)                                 other jurisdictions: the Entitlement Issue will not be made
in any jurisdiction where it would be unlawful to do so;

(c)                                  compliance: the Entitlement Issue will be made by the
Company, and the Entitlement Shares will be issued and allotted by the Company,
in accordance with all applicable requirements of the Compliance Rules;

(d)                                 no issue of securities: for the period expiring 90 days
after the Listing Date, the Company will not without the prior written consent
of the Underwriter, offer for subscription or purchase, issue invitations to
subscribe for or buy or issue any Securities of the Company or of any other
Group Company whatsoever or agree to do so except as provided for under this
agreement, the EI Prospectus, the US Placement Prospectus and the agreement to
terminate the Agreement for Strategic Alliance with Medigen Biotechnology
Corporation, as that agreement is disclosed in the US Placement Prospectus;

(e)                                  agreed form of Prospectus: the Company will not issue or
permit the issue of the Australian EI Prospectus or the US EI Prospectus, in a
form or with content that the Underwriter has not first seen and agreed to;

(f)                                    no disposals outside ordinary course: until Quotation of the
Entitlement Shares has occurred, the Company, and the Company will procure that
each other Group Company, will not dispose, or agree to dispose, of any part of
their business or property otherwise than in the ordinary course of their
ordinary business, without the prior written consent of the Underwriter;

(g)                                 assistance to the Underwriter: until all of the Underwritten
Shares have been issued and allotted in accordance with the Entitlement Issue
or the provisions of this agreement, the Company will, and the Company will
cause its officers and employees, to assist the Underwriter and its employees
or agents to make such examination and enquiries of and concerning the
business, assets, liabilities, books and accounts of the Company and each other
Group Company as the Underwriter may require for the purpose of conducting  all investigations which the Underwriter considers
necessary or desirable in relation to the Entitlement Issue, the Prospectus or
observance of the Compliance Rules;

(h)                                 no statements to ASX, NASDAQ or SEC: in the period
commencing from the Operative Date and ending on the day immediately after the
Listing Date, the Company will not make, and the Company will cause each other
Group Company and each of its and their directors, officers, employees, agents
and advisers not to make, to ASX, NASDAQ, SEC or otherwise in the public
domain, any statements or announcements or issue any press releases directly or
indirectly in respect of the Entitlement Issue or the US Placement without the
prior written consent of the Underwriter (except any announcement 

 34
 

	
  

  	
  required by the Compliance Rules, in which event
  consent of the Underwriter is not required);

  
	
   

  	
   

  
	
  (i)

  	
  procure approvals, etc: the
  Company will procure that all consents, approvals and authorities required to
  be obtained from any Authority, person or body of persons directly concerning
  or in respect of or relating to the Entitlement Issue are so obtained
  unconditionally (or if on a conditional basis, on such conditions as are
  reasonably acceptable to the Underwriter) and, once obtained, are not withdrawn,
  suspended, withheld, varied or revoked;

  
	
   

  	
   

  
	
  (j)

  	
  no acquisition outside ordinary course: until
  the Listing Date, the Company, and the Company will procure that each other
  Group Company, will not acquire any asset or enter into any other expenditure
  or borrowing other than in the ordinary course of their ordinary business
  without the prior written consent of the Underwriter;

  
	
   

  	
   

  
	
  (k)

  	
  notification of termination event: the
  Company will immediately advise the Underwriter in writing on becoming aware
  of any of the circumstances referred to in Clause 10.1 and will provide full
  details of those circumstances;

  
	
   

  	
   

  
	
  (l)

  	
  no representations on behalf of the Underwriter:
  none of the Group Companies nor any of their directors or
  employees, representatives or agents, will make any representations
  whatsoever, whether by implication or otherwise, on behalf of the Underwriter
  in the course of discussing or marketing the Entitlement Issue or the US
  Placement;

  
	
   

  	
   

  
	
  (m)

  	
  enforcement of rights: the
  Company will enforce its rights, take all such actions and do all such things
  as may be necessary or desirable for the Company to obtain the full benefit
  of each of the material contracts to which it is, or becomes, a party on or
  before the Listing Date;

  
	
   

  	
   

  
	
  (n)

  	
  major investments: until the
  Listing Date, the Company will keep the Underwriter informed of all
  negotiations, discussions and decisions in relation to any proposed major
  investment by the Company or any other Group Company;

  
	
   

  	
   

  
	
  (o)

  	
  Encumbrances: the Company, and
  the Company will procure that each other Group Company, will not without the
  prior written approval of the Underwriter, enter into, or agree to enter
  into, any Encumbrance in respect of its or their assets other than those
  Encumbrances proposed to be entered into and disclosed to the Underwriter
  prior to the Listing Date;

  
	
   

  	
   

  
	
  (p)

  	
  no Related Body Corporate to participate in
  Entitlement Issue: the Company, in co-operation with the
  Underwriter, will ensure that no other Group Company, participates in the
  Entitlement Issue or the US Placement;

  
	
   

  	
   

  
	
  (q)

  	
  ordinary course of
  business: from the
  date of this agreement until the issue of the Entitlement Shares, each Group Company will conduct
  its business in the ordinary course of business, except as specifically
  contemplated by the EI Prospectus;

  

 

 35
 

 

	
  (r)

  	
  ongoing due diligence: the Company will continue until Completion
  to conduct the Due Diligence Programme in accordance with the Due Diligence
  Planning Memorandum to ensure there are reasonable grounds to believe that
  there are no material omissions from the EI Prospectus or the US Placement
  Prospectus and that any statement included in the EI Prospectus or the US
  Placement Prospectus (i) is true and not misleading or deceptive in any
  material respect, and does not become misleading or deceptive in any material
  respect and does not constitute conduct by any person which is misleading or
  deceptive in any material respect and (ii) does not contain any untrue
  statement of a material fact or omit to state a material fact necessary in
  order to make the statements therein, in the light of the circumstances under
  which they were made, not misleading;

  
	
   

  	
   

  
	
  (s)

  	
  prejudicial to prospects
  of Entitlement Issue
  or US Placement: the
  Company will not, and will use its best endeavours to ensure that its
  officers do not, do or omit to do anything which is, or is likely to be,
  prejudicial to the prospects of the Entitlement Issue or the US Placement, except as required
  by any Compliance Rules;

  
	
   

  	
   

  
	
  (t)

  	
  filing of US EI Prospectus: the
  Company shall file:

  
	
   

  
	
   

  	
  (i)

  	
  the US EI Prospectus with the SEC within the time
  periods specified by Rule 424(b) and Rules 430A, 430B or 430C under the
  Securities Act, to file any Issuer Free Writing Prospectus to the extent
  required by Rule 433 under the Securities Act, if applicable; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  promptly, all reports and any definitive proxy or
  information statements required to be filed by the Company with the SEC
  pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent
  to the date of the US EI Prospectus and for so long as the delivery of a
  prospectus is required in connection with the offering or sale of the Shares;

  
	
   

  
	
  (u)

  	
  US state securities or
  “blue sky” laws: the Company shall:

  
	
   

  
	
   

  	
  (i)

  	
  furnish such information as may be required and
  otherwise to co-operate in qualifying the Shares for offering and sale under
  the securities or blue sky laws of the states or other jurisdictions of the
  United States as necessary to offer and sell the US EI Shares to Shareholders
  in the United States or that are US Persons and to maintain such
  qualifications in effect so long as the distribution of the Shares is ongoing
  provided, however, that the Company shall not be required to qualify as a
  foreign corporation or to consent to the service of process under the laws of
  any such jurisdiction (except service of process with respect to the offering
  and sale of the Shares); and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  promptly advise the Underwriter of the receipt by
  the Company of any notification with respect to the suspension of the
  qualification of the Shares for offer or sale in any state or other
  jurisdiction of the United

  

 

 36
 

	
  

  	
  States or the initiation or threatening of any
  proceeding for such purpose;

  
	
   

  
	
  (v)

  	
  post-effective amendment or Rule 462 registration
  statement: if, at the time this agreement is executed and
  delivered, it is necessary for a post-effective amendment to the US
  Registration Statement, or a registration statement under Rule 462(b) under
  the Securities Act, to be filed with the SEC and become effective before the
  US EI Shares or the US Placement Shares may be sold, the Company shall use
  its reasonable best efforts to cause such post-effective amendment or such
  registration statement to be filed and become effective as soon as possible, and
  the Company will advise the Underwriter promptly and, if requested by the
  Underwriter, will confirm such advice in writing:

  
	
   

  
	
   

  	
  (i)

  	
  when such post-effective amendment or such
  registration statement has become effective; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  if Rule 430A under the Securities Act is used, when
  the US EI Prospectus is filed with the SEC pursuant to Rule 424(b) under the
  Securities Act (which the Company agrees to file in a timely manner in
  accordance with such rules under the Securities Act);

  
	
   

  
	
  (w)

  	
  SEC comments or correspondence: the
  Company shall advise the Underwriter promptly:

  
	
   

  
	
   

  	
  (i)

  	
  confirming such advice in writing, of any request by
  the SEC for amendments or supplements to the US Registration Statement or the
  US EI Prospectus, or for additional information with respect thereto, or of
  notice of institution of proceedings for, or the entry of a stop order,
  suspending the effectiveness of the US Registration Statement and, if the SEC
  should enter a stop order suspending the effectiveness of the US Registration
  Statement, the Company shall use its reasonable best efforts to obtain the
  lifting or removal of such order as soon as possible; and

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Company shall advise the Underwriter promptly of
  any proposal to amend or supplement the US Registration Statement or the US
  EI Prospectus, and to provide the Underwriter copies of any such documents
  for review and comment a reasonable amount of time prior to any proposed
  filing and to file no such amendment or supplement to which the Underwriter
  shall object in writing, which objection shall not be unreasonable;

  
	
   

  
	
  (x)

  	
  amendments to US EI Prospectus: the
  Company shall advise the Underwriter promptly of the happening of any event
  within the period during which a prospectus is required by the Securities Act
  to be delivered (whether physically or through compliance with Rule 172 under
  the Securities Act or any similar rule) in connection with any sale of
  Shares, which event could require the making of any change in the US EI
  Prospectus then being used so that the US EI Prospectus would not include an
  untrue statement of material

  

 

 37
 

	
  

  	
  fact or omit to state a material fact necessary in
  order to make the statements therein, in the light of the circumstances under
  which they are made, not misleading;

  
	
   

  	
   

  
	
   

  	
  (y)

  	
  retention of “free writing prospectuses”: the
  Company shall comply with Rule 433(g) under the Act; and

  
	
   

  	
   

  
	
   

  	
  (z)

  	
  use of prospectus: the Company
  shall not, at any time at or after the execution of this agreement, offer or
  sell any Shares by means of any “prospectus” (within the meaning of the
  Securities Act), or use any “prospectus” (within the meaning of the Act) in
  connection with the offer or sale of the Shares in the United States or to US
  Persons, in each case other than the US EI Prospectus or the US Placement
  Prospectus in connection with the US Placement.

  
	
   

  
	
  6.3

  	
  Warranties and covenants to remain true

  
	
   

  	
   

  
	
   

  	
  It is a condition of this agreement, including
  without limitation, any liability of the Underwriter under this agreement,
  that each of the covenants, warranties and representations set out in clauses
  6.1 and 6.2 is as at the Operative Date and remains continuously until the
  date of cessation of the liability of the Underwriter under clause 8.6, true
  and correct in every material respect.

  
	
   

  	
   

  
	
  6.4

  	
  Company’s indemnity

  
	
   

  	
   

  
	
   

  	
  The Company indemnifies the Indemnified Parties
  against all Losses, except those arising to the Underwriter from its
  subscription for the Shortfall under clause 8.4, in respect of or in
  connection with or arising out of, whether directly or indirectly:

  
	
   

  
	
   

  	
  (a)

  	
  the Entitlement Issue or the Prospectus;

  
	
   

  	
   

  
	
   

  	
  (b)

  	
  being named in, or otherwise referred to in, any one
  or more of the Australian EI Prospectus, the US EI Prospectus, the US
  Placement Prospectus or any notice, advertisement or other information
  published by, or with the approval of, any Group Company in relation to any
  Group Company;

  
	
   

  	
   

  
	
   

  	
  (c)

  	
  a breach of any of the provisions of this agreement,
  including:

  
	
   

  
	
   

  	
  (i)

  	
  any non-compliance by any Group Company with the
  Compliance Rules or any other legal obligations in relation to the
  Entitlement Issue;

  
	
   

  
	
   

  	
  (ii)

  	
  any breach of the covenants, warranties and
  representations set out in clauses 6.1, 6.2 , 6.3 or the undertaking in
  clause 6.8;

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  any notice, advertisement, report or other
  information published by an Indemnified Party in relation to any Group
  Company, the Entitlement Issue, the US Placement, the EI Prospectus, the US
  Prospectus or the US Placement Prospectus with the approval of the Company;
  and

  
	
   

  	
   

  
	
   

  	
  (iv)

  	
  any notice, advertisement or other information
  published by any Group Company in relation to any Group Company, the
  Entitlement Issue, the 

  

 

 38
 

	
  

  	
  US Placement, the EI Prospectus, the US Prospectus
  or the US Placement Prospectus whether or not with the approval of any other
  Indemnified Party.

  
	
  6.5

  	
  No waiver

  
	
   

  	
   

  
	
   

  	
  Any approval or consent given by any Indemnified
  Party to any act, matter or thing (whether relating to the contents of the
  Prospectus or otherwise) does not constitute a waiver of or in any way
  prejudice the right of that Indemnified Party or any other Indemnified Party
  to exercise its rights under the indemnity contained in clause 6.4.

  
	
   

  	
   

  
	
  6.6

  	
  Negligence

  
	
   

  	
   

  
	
   

  	
  Notwithstanding anything express or implied in this
  agreement, the right of the Indemnified Parties to be indemnified under this
  agreement will not apply to the extent that the Loss in question arises as a
  result of negligence or wilful misconduct of any Indemnified Party.

  
	
   

  	
   

  
	
  6.7

  	
  Underwriter’s obligation to notify

  
	
   

  	
   

  
	
   

  	
  If the Underwriter:

  
	
   

  
	
   

  	
  (a)

  	
  receives notice of any act, matter or thing which
  may give rise to a claim, action, demand, suit, proceeding, damage, loss,
  liability, cost or expense, in relation to which the Company would be
  required to indemnify it under clause 6.4; and

  
	
   

  	
   

  
	
   

  	
  (b)

  	
  is aware that that act, matter or thing would be
  likely to give rise to a claim by an Indemnified Party under the Indemnity in
  clause 6.4,

  
	
   

  
	
   

  	
  then the Underwriter must notify the Company of that
  act, matter or thing, giving such details as it is practicable to give within
  2 Business Days of it coming to its attention.

  
	
   

  	
   

  
	
  6.8

  	
  Cleansing Notice

  
	
   

  	
   

  
	
   

  	
  The Company hereby undertakes to and in favour of
  the Underwriter that it will, in accordance with section 708A(6) of the
  Corporations Act, issue a notice to the ASX within 5 Business Days of the
  date on which the Entitlement Shares are issued and allotted, in respect of
  all the Entitlement Shares.

  
	
   

  	
   

  
	
  7.

  	
  Applications for, and Allotment of, Underwritten
  Shares

  
	
   

  	
   

  
	
  7.1

  	
  Applications

  
	
   

  	
   

  
	
   

  	
  On and after the Despatch Date:

  
	
   

  
	
   

  	
  (a)

  	
  each Underwriter will use all reasonable endeavours
  to procure Applications for all of the Underwritten Shares of that
  Underwriter; and

  
					

 

 39
 

	
  

  	
  (b)

  	
  the Company will provide all reasonable assistance
  requested by the Underwriter to assist the Underwriter in procuring
  Applications for all of the Underwritten Shares of each Underwriter.

  
	
   

   

  
	
  7.2

  	
  Opening and Closing of Offer Period

  
	
   

  	
   

  
	
   

  	
  The Company must cause the Entitlement Issue to open
  at 9.00 am AEST on the first day of the Entitlement Issue Period and close at
  5.00 pm AEST on the Closing Date.

  
	
   

  	
   

  
	
  7.3

  	
  Acceptance of Applications

  
	
   

  
	
   

  	
  (a)

  	
  Subject to clause 7.4, the Company will not accept
  any applications for Underwritten Shares which are not Applications, and any
  allotment made pursuant to an Application will be in accordance with the
  Prospectus and the Compliance Rules.

  
	
   

  	
   

  
	
   

  	
  (b)

  	
  The Company will use every reasonable endeavour to
  have invalid applications corrected and made into Applications prior to the
  Closing Date.

  
	
   

  	
   

  
	
   

  	
  (c)

  	
  Without limitation to the provisions of paragraph
  (a) of this clause 7.3, the Company will ensure that, for the purpose of
  determining the existence and number of the Shortfall Shares, all Application
  Moneys will be banked, cleared and maintained in immediately available form,
  on or before providing the notification referred to in clause 8.1(a).

  
	
   

  	
   

  
	
   

  	
  (d)

  	
  By no later than 7.00 pm on the Closing Date, the
  Company will provide to the Underwriter, a written summary of:

  
	
   

  
	
   

  	
  (i)

  	
  all Applications received by or on behalf of the
  Company, prior to that time and date;

  
	
   

  	
   

  
	
   

  	
  (ii)

  	
  all other applications actually or purportedly for
  Australian EI Shares or US EI Shares, that are received by or on behalf of
  the Company, prior to that time and date; and

  
	
   

  	
   

  
	
   

  	
  (iii)

  	
  all actions, if any, taken or purported to be taken,
  and the corresponding time and dates on which such actions were, or are
  intended to be, taken in order to convert each application referred to in
  sub-paragraph (ii) into an Application.

  
	
   

  
	
  7.4

  	
  Rejection of Applications

  
	
   

  	
   

  
	
   

  	
  Except as required by any relevant law or
  regulation, the Company will not refuse or reject any Application without the
  prior consent of the Underwriter.

  
	
   

  	
   

  
	
  7.5

  	
  Calculation of Shortfall

  
	
   

  	
   

  
	
   

  	
  All Applications received by or on behalf of the
  Company during the Entitlement Issue Period, other than those not accepted by
  the Company in accordance with clause 7.3 or clause 7.4, are to be taken into
  account when calculating any Shortfall.

  

 

 40

	
  7.6

  	
  Daily Update of Applications

  
	
   

  	
   

  
	
   

  	
  The Company will ensure that the Underwriter will be
  provided, at least once each Business Day and by no later than 10.00 am
  Sydney time, with written confirmation of the cumulative number of
  Underwritten Shares in respect of which the Company, or any person acting on
  behalf of the Company, has received Applications by close of business on the
  immediately preceding day, and any other material particulars relating to the
  Applications that an Underwriter reasonably requests.

  
	
   

  	
   

  
	
  7.7

  	
  Allocation policy

  
	
   

  	
   

  
	
   

  	
  Subject to the provisions of clause 7.8, the Company
  and the Underwriter will be entitled to nominate the allottees of the
  Underwritten Shares in accordance with the allocation policy agreed by the
  Parties from time to time.

  
	
   

  	
   

  
	
  7.8

  	
  Time to nominate

  
	
   

  	
   

  
	
   

  	
  Any nominations of applicants by the Underwriter for
  the Underwritten Shares in accordance with the provisions of clause 7.7 must
  be made within 7 days after the Closing Date or failing that, the Company may
  allot the Underwritten Shares to such applicants as determined by the Company
  from the Applications.

  
	
   

  	
   

  
	
  7.9

  	
  Time to allot

  
	
   

  	
   

  
	
   

  	
  Immediately after all applicants who are to be
  nominated as allottees of the Underwritten Shares are nominated under the
  provisions of clause 7.7 or clause 7.8 and the amount stated in the
  Prospectus as the minimum subscription or minimum application (if any) has
  been received, the Company will issue and allot the Underwritten Shares to
  those nominees and dispatch Share holding statements in accordance with the
  Compliance Rules and the Prospectus.

  
	
   

  	
   

  
	
  8.

  	
  Shortfall

  
	
   

  	
   

  
	
  8.1

  	
  Procedure in the event of a Shortfall

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  If, at the Last Closing Date, Applications have not
  been received for all the Underwritten Shares, the Company will within 2
  Business Days after the Closing Date, notify the Underwriter of the number of
  Shortfall Shares (if any).

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  The number of Shortfall Shares referred to in any
  such notification will be conclusive for all purposes against the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  At the same time that the Company delivers the
  notification of a Shortfall in accordance with the provisions of clause
  8.1(a), the Company will also deliver to the Underwriter a Certificate
  certifying that:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  all the conditions precedent set out in clause 2.3
  of this agreement have been satisfied;

  

 

 41
 

	
   

  	
  (ii)

  	
  the Company has, and will, at the time of making the
  Entitlement Issue and issuing the Entitlement Shares, have observed,
  performed and complied in all material respects with all the obligations,
  covenants and terms on its part to be observed, performed and complied with
  in respect of, whether directly or indirectly, the Entitlement Issue, whether
  arising out of this agreement, the Compliance Rules or the EI Prospectus;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  none of the events referred to in clause 10.1 has
  occurred other than an event or opinion the effect of which has been waived
  in writing by the Underwriter pursuant to clause 10.3; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  there has been no breach of any of the covenants,
  warranties or representations contained in this agreement.

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Certificate taken to be accurate

  
	
   

  	
   

  
	
   

  	
  A certification in terms of clause 8.1(b)(iv)
  contained in a Certificate delivered in accordance with clause 8.1(b) is
  taken to be accurate if, before the Certificate was delivered, there was a
  breach of the provisions of clause 6, but:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the Company had disclosed in writing full
  particulars of the breach to the Underwriter; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Underwriter had formed the opinion, as notified
  in writing to the Company, that the breach was unlikely to have a Material
  Adverse Effect.

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Certificate Warranty

  
	
   

  	
   

  
	
   

  	
  The Company warrants the truth, completeness and
  accuracy of the Certificate as at the date of delivery of the Certificate to
  the Underwriter and at all times before the Listing Date.

  
	
   

  	
   

  
	
  8.4

  	
  Time for delivery of the Underwriter’s
  Application

  
	
   

  	
   

  
	
   

  	
  Within 6 Business Days of receipt of both the
  notification of the Shortfall and the Certificate, the Underwriter will, in
  reliance upon the Certificate, lodge or cause to be lodged the Underwriter’s
  Application together with payment in full of the Entitlement Issue Price
  multiplied by the number of Shortfall Shares. The Underwriter’s Application
  will not be withdrawn prior to allocation of the Underwritten Shares by the
  Company, except if the Underwriter validly terminates this agreement prior to
  allotment.

  
	
   

  	
   

  
	
  8.5

  	
  Time for allotment after Underwriter’s
  Application

  
	
   

  	
   

  
	
   

  	
  If the Underwriter is required to lodge or cause to
  be lodged an Underwriter’s Application with the Company in accordance with
  the provisions of clause 8.4:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  not later than 2 Business Days after lodgement of
  the Underwriter’s Application and payment of the amount described in clause
  8.4, the Company 

  

 

 42
 

	
  

  	
  will allot Shortfall Shares to the relevant
  applicant or applicants in accordance with the Underwriter’s Application; and

  
	
   

  	
   

  
	
   

  	
  (b)

  	
  the Company acknowledges that immediately on
  lodgement of the Underwriter’s Application:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  the Underwriter has satisfied in full the
  Underwriter’s obligations under clause 8.4; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Underwriter is not required to pay any further
  amounts to the Company in respect of the Underwriter’s obligations under this
  agreement.

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Cessation of Underwriter’s obligations

  
	
   

  	
   

  
	
   

  	
  Upon the first to occur of:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the Company receiving Applications, other than
  applications or Applications for Underwritten Shares refused or rejected by
  the Underwriter or by the Company with the prior consent of the Underwriter
  in accordance with either clause 7.3 or clause 7.4, for all the Underwritten
  Shares;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Underwriter discharging its obligations under
  clause 8.4; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the date upon which the Underwriter validly
  terminates this agreement under clause 10,

  
	
   

  	
   

  	
   

  
	
   

  	
  all liability of the Underwriter under the
  provisions of this agreement, including clause 8.5, ceases.

  
	
   

  	
   

  
	
  8.7

  	
  Underwriter’s Election

  
	
   

  	
   

  
	
   

  	
  In the event that:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  an Underwriter (“Terminating
  Underwriter”) terminates or otherwise is released from its
  underwriting obligations under, and in accordance with, the provisions of
  this agreement; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the other Underwriter (“Non
  Terminating Underwriter”) elects not to exercise its rights of
  termination as contemplated in the provisions of clause 10.1(h) of this
  agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
  the Non Terminating Underwriter will:

  
	
   

  	
   

  
	
   

  	
  (c)

  	
  have the exclusive right to elect to assume all or
  any part of the Terminating Underwriter’s rights and obligations under this
  agreement, including those referred to in this clause 8, by providing both
  the Company and the Terminating Underwriter with written notice to the effect
  that it has so elected and the material details of such election; but

  

 

 43
 

	
  

  	
  (d)

  	
  otherwise will remain obliged to carry out and
  perform its several obligations as set out in, and in accordance with, the
  provisions of this agreement.

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Payments

  
	
   

  	
   

  
	
  9.1

  	
  Underwriting Commission

  
	
   

  	
   

  
	
   

  	
  Subject to the Corporations Act, as soon as
  practicable after the allotment of all of the Underwritten Shares, the
  Company will pay to each Underwriter their respective Agreed Proportion of
  the Underwriting Commission, in accordance with the provisions of clause 9.3,
  unless directed in writing otherwise by each Underwriter.

  
	
   

  	
   

  
	
  9.2

  	
  Charges and time for payment

  
	
   

  	
   

  
	
   

  	
  All Charges not previously paid (including legal
  fees (excluding GST and disbursements) of the Underwriter up to a maximum
  amount of A$40,000) are to be paid by the Company to the Underwriter on the
  date the Underwriting Commission becomes payable (providing the relevant
  accounts have been submitted to the Company by this date and if not then
  within 5 Business Days of the submission of such accounts) and the Company
  indemnifies and holds the Underwriter harmless from and against any Charges.

  
	
   

  	
   

  
	
  9.3

  	
  Set-off

  
	
   

  	
   

  
	
   

  	
  The Company hereby directs the Underwriter to deduct
  and retain from any Application Moneys held on trust by the Underwriter for
  the Company, the Underwriting Commission and any other amounts which are owed
  by the Company to the Underwriter under clause 9.1 or clause 9.2 provided
  that such deduction and retention of the Application Moneys does not occur
  until such time as the Underwritten Shares have been issued and allotted by
  the Company in accordance with the Compliance Rules.

  
	
   

  	
   

  
	
  10.

  	
  Relief of the Underwriter’s Obligations

  
	
   

  	
   

  
	
  10.1

  	
  Events entitling Underwriter to terminate

  
	
   

  	
   

  
	
   

  	
  Notwithstanding any other provision, whether express
  or implied, of this agreement (except clause 10.5), an Underwriter may,
  without cost or liability, by notice in writing to the Company (and without
  prejudice to any accrued rights of the Underwriter under this agreement)
  immediately terminate this agreement (and the Underwriter is relieved
  immediately of all of its obligations under this agreement) at any time
  during the period commencing on the Operative Date and ending on the date of
  cessation of the liability of the Underwriter under clause 8.6, upon the
  occurrence of any one or more of the following events:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  issue agreed form: the Company
  issues an EI Prospectus in a form not previously agreed by the Underwriter;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  changes of law: any law, bill
  or other measure is introduced or announced by the Government of Australia,
  the Government of any Australian State or  

  

 

 44
 

	
  

  	
  Territory, or any responsible Minister of any such
  Government, or by the Government of the United States of America which has or
  is likely to have a Material Adverse Effect on the prospects of the
  Entitlement Issue being fully subscribed prior to the Closing Date;

  
	
   

  	
   

  
	
   

  	
  (c)

  	
  directors: any director or
  proposed director of the Company is charged with or convicted of any
  indictable criminal offence;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  breach of agreement: the
  Company commits or permits any breach or default of any provisions of this
  agreement, including under the provisions of clause 6.1 or clause 6.2, and
  that breach or default has, or is likely to have, a Material Adverse Effect;

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  breach of Compliance Rules: the
  Company or any Subsidiary or any director or proposed director, in their
  capacity as a director of the Company or any Subsidiary contravenes any
  provision of the Compliance Rules;

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  misstatement in the Prospectus or US
  Registration Statement: there is a misstatement, inaccuracy
  in or omission from the Australian EI Prospectus, including but not limited
  to any representation with respect to any future matter, is or becomes false
  or misleading, or the US EI Prospectus or the US Registration Statement
  contains an untrue statement of a material fact or omits to state a material
  fact required to be stated therein or necessary to make the statements
  therein not misleading;

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  supplementary prospectus: any
  event or circumstance occurs that results in the Company being, becoming or
  likely to become obliged to:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  repay any money received from any Applications,

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  give the applicants who have submitted any
  Applications:

  
	
   

  	
   

  	
   

  
	
   

  	
  (A)

  	
  any document prescribed in section 724(3) of the
  Corporations Act; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (B)

  	
  1 month to withdraw their Application; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  issue or transfer any Shares to any such applicant
  and give them:

  
	
   

  	
   

  	
   

  
	
   

  	
  (A)

  	
  any document prescribed in section 724(3) of the
  Corporations Act; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (B)

  	
  1 month to withdraw their Application,

  
	
   

  	
   

  	
   

  
	
   

  	
  in accordance with the provisions of section 724(2)
  of the Corporations Act;

  
	
   

  	
   

  
	
   

  	
  (h)

  	
  insolvency event: an
  Insolvency Event occurs with respect to any Group Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  termination by Underwriter: either
  of eG or Bell, acting in accordance with, the provisions of this agreement,
  terminates or otherwise is released from its  

  

 

 45
 

	
  

  	
  underwriting obligations under, and in accordance
  with, the provisions of this agreement, other than as a result of either eG
  or Bell performing their respective obligations under clause 8.4 or as
  contemplated in clause 8.6(a) or 8.6(b) of this agreement;

  
	
   

  	
   

  
	
   

  	
  (j)

  	
  Quotation by ASX: the
  Australian EI Shares are not approved for Quotation before the date on which
  the Entitlement Shares are to be issued or, if the approval is granted, the
  approval is subsequently withdrawn, qualified on a basis or made the subject
  of conditions not acceptable to the Underwriter or the Company or withheld;

  
	
   

  	
   

  	
   

  
	
   

  	
  (k)

  	
  Quotation by NASDAQ: the US EI
  Shares are not approved for quotation by NASDAQ before the date on which the
  Entitlement Shares are to be issued, the US Placement Shares are not approved
  for quotation by NASDAQ before the date on which the US Placement Shares are
  to be issued or, in either or both instances, if the approval is granted, the
  approval is subsequently withdrawn, qualified on a basis or made the subject
  of conditions not acceptable to the Underwriter or the Company or withheld;

  
	
   

  	
   

  	
   

  
	
   

  	
  (l)

  	
  movement in the All Ordinaries Index: at
  any time after the Operative Date and before the Listing Date, either or both
  the All Ordinaries Index of ASX or the Composite Index of NASDAQ falls to a
  level that is 7.5% or more below the level attained at the close of trading
  on the Business Day immediately preceding the Operative Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  (m)

  	
  US$/A$currency movement: at
  any time after the Operative Date and before the Listing Date, there is a
  cumulative movement during or at any point of time in that period, of 7.5% or
  more in United States Dollar Representative Rate per Australian Dollar,
  sourced from the Reserve Bank of Australia and as published in the Australian
  Financial Review;

  
	
   

  	
   

  	
   

  
	
   

  	
  (n)

  	
  adverse change (financial position): in
  the opinion of the Underwriter there is an adverse change or a development
  involving a prospective adverse change occurs in the financial or trading
  position of any Group Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (o)

  	
  commencement or escalation
  of hostilities: hostilities
  are commenced or escalated (whether war is declared or not) or acts of
  terrorism occur involving all or any of the Commonwealth of Australia, New
  Zealand, the United Kingdom, the United States of America, the Republic of
  Indonesia, Taiwan (Republic of China), the Commonwealth of Independent States
  (or any successor union or if there is not such successor union, then the
  Republic of Russia), any former members of the USSR, the Peoples Republic of
  China or Japan or hostilities are renewed in the Persian Gulf between
  sovereign nations, other than hostilities between members of the Commonwealth
  of Independent States;

  
	
   

  	
   

  	
   

  
	
   

  	
  (p)

  	
  breach of constitution: any
  Group Company contravenes any of the provisions of their respective
  constitutions;

  

 

 46
 

	
   

  	
  (q)

  	
  unapproved alteration: any
  Group Company alters its board of directors or its capital structure or its
  constitution without the prior written consent of the Underwriter;

  
	
   

  	
   

  	
   

  
	
   

  	
  (r)

  	
  adverse change (business activities): in
  the opinion of the Underwriter there is an adverse change in relation to the
  principal business activities of any Group Company or in any of the principal
  projects or businesses of any Group Company including, without limiting the
  generality of the foregoing, if any adverse order is made by an environmental
  agency in relation to any Group Company or any site occupied by any Group
  Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (s)

  	
  certificate: the Certificate
  (if required) is not given in accordance with clause 8.1(b) or, if so given,
  is or becomes incorrect in whole or in part;

  
	
   

  	
   

  	
   

  
	
   

  	
  (t)

  	
  material contract: without the
  prior written consent of the Underwriter, a material contract (other than
  this agreement) to which any Group Company is a party, is terminated (whether
  by breach or otherwise), rescinded, altered or materially amended or if any
  such contract is rendered void or voidable or liable to be terminated;

  
	
   

  	
   

  	
   

  
	
   

  	
  (u)

  	
  interest rate: after the
  Operative Date and before the Listing Date there is a change in the
  Australian Cash Rate as determined by the Reserve Bank of Australia or the US
  Federal Funds Rate, by 50 basis points or more from either or both of those
  rates, as published in the Australian Financial Review on the Business Day
  immediately preceding the Operative Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  Encumbrances: other than
  Encumbrances created with the prior written approval of the Underwriter or
  created in the ordinary course of the business of any Group Company, an
  Encumbrance over all or any of the assets of any Group Company is created or
  comes into existence;

  
	
   

  	
   

  	
   

  
	
   

  	
  (w)

  	
  false or misleading information given to the
  Underwriter: any information supplied by any Group Company
  or any person on its behalf to the Underwriter or its employees or agents in
  respect of the Entitlement Issue or the EI Prospectus is or becomes false or
  misleading, which has, or is likely to have, a Material Adverse Effect;

  
	
   

  	
   

  	
   

  
	
   

  	
  (x)

  	
  ASIC hearing: any application
  is made by ASIC for any order under section 1324A or section 1324B of the
  Corporations Act in relation to the EI Prospectus;

  
	
   

  	
   

  	
   

  
	
   

  	
  (y)

  	
  ASIC or SEC Prosecution: ASIC
  or the SEC give written notice of an intention to prosecute the Company, any
  director or employee of the Company, or any Subsidiary of the Company or any
  of its Related Bodies Corporate, unless ASIC or the SEC, as applicable,
  withdraw that intention in writing on or before the Closing Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  (z)

  	
  Court Order: an order is made
  in connection with an EI Prospectus, including under section 1324 and section
  1325 of the Corporations Act;

  

 

 47
 

	
   

  	
  (aa)

  	
  action by Authority: the
  performance of the obligations of the Underwriter under this agreement, or
  the completion of the Entitlement Issue by the Company, is prevented or
  restrained by order of or notice by an Authority;

  
	
   

  	
   

  	
   

  
	
   

  	
  (bb)

  	
  withdrawal of consent: any
  person who has previously consented to the inclusion of his, her or its name
  in any of the Australian EI Prospectus, the US EI Prospectus or the US
  Placement Prospectus (other than the Underwriter, if applicable) withdraws
  that consent;

  
	
   

  	
   

  	
   

  
	
   

  	
  (cc)

  	
  Prescribed Occurrence: a
  Prescribed Occurrence occurs in relation to the any Group Company, other than
  in relation to the Underwritten Shares;

  
	
   

  	
   

  	
   

  
	
   

  	
  (dd)

  	
  natural disaster: before the
  Listing Date there is a natural disaster which, in the reasonable opinion of
  the Underwriter, is likely to have a material adverse affect on the
  operations of any Group Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ee)

  	
  public statements: otherwise
  than in accordance with this agreement, a public statement is made by any
  Group Company, or any current or proposed director, officer, employee, agent
  or adviser of any of the foregoing in relation to any Group Company, the
  Entitlement Issue or any Security issued by any Group Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ff)

  	
  ASIC or SEC proceedings: ASIC
  or the SEC issues or threatens to issue, proceedings in relation to the
  issue, allotment or placement of Entitlement Shares or commences any inquiry
  or investigation into the issue, allotment or placement of any Shares;

  
	
   

  	
   

  	
   

  
	
   

  	
  (gg)

  	
  government proceedings: any
  Authority commences or threatens to commence any action or proceedings
  against any Group Company or any of the directors of any Group Company in
  their capacity as a director or announces that it intends to take such
  action;

  
	
   

  	
   

  	
   

  
	
   

  	
  (hh)

  	
  disqualification of a director: any
  director of any Group Company is disqualified from managing a corporation
  under the Corporations Act or under applicable US securities laws;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  suspension in quotation: any
  Securities issued by the Company and that have been the subject of Quotation,
  are suspended from Quotation or there is a material limitation in their
  trading, or ability to be traded on any market conducted by ASX, for more
  than 5 days or there has been a suspension or material limitation in trading
  of the Shares on NASDAQ;

  
	
   

  	
   

  	
   

  
	
   

  	
  (jj)

  	
  SEC stop order: no stop order
  with respect to the effectiveness of the US Registration Statement shall have
  been issued under the Securities Act or proceedings initiated under Section
  8(d) or 8(e) of the Securities Act; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (kk)

  	
  no suspension or moratorium: there
  shall not have occurred (i) any suspension of trading generally on the New
  York Stock Exchange, NASDAQ or the ASX or establishment of minimum or maximum
  prices or maximum ranges for prices on any such exchange or such market by
  the SEC, such  

  

 

 48
 

	
  

  	
  exchange or by any other regulatory body or
  governmental authority having jurisdiction or (ii) any declaration of a
  banking moratorium by US Federal or state authorities or other applicable
  governmental authorities in commercial banking or securities settlement or
  clearance services in the United States or Australia.

  
	
   

  	
   

  
	
  10.2

  	
  Obligation to pay fees and Charges
  notwithstanding termination

  
	
   

  	
   

  
	
   

  	
  Subject to the provisions of clause 10.6, if the
  Underwriter terminates this agreement pursuant to the provisions of clause
  10.1, the Company is not obliged to pay to the Underwriter the Underwriting
  Commission, but the Company remains liable to pay to the Underwriter all
  fees, expenses and Charges payable under the provisions of clauses 9.1 and
  9.2 or otherwise with those fees, expenses and Charges being payable within
  10 Business Days of the date of termination.

  
	
   

  	
   

  
	
  10.3

  	
  Effect of waiver

  
	
   

  	
   

  
	
   

  	
  The Underwriter may by written notice to the Company
  waive any of its rights. Any such waiver only affects the Underwriter’s
  rights in respect of the matter and breach expressly referred to in the
  waiver notice.

  
	
   

  	
   

  
	
  10.4

  	
  Material Adverse Effect

  
	
   

  	
   

  
	
   

  	
  Notwithstanding anything expressed or implied in
  this agreement, the occurrence of any of the events listed in clause 10.1
  does not entitle the Underwriter to exercise its rights under this clause 10
  unless such event has or is likely to have a Material Adverse Effect or in
  the reasonable opinion of the Underwriter, could give rise to a liability on
  the part of the Underwriter under any applicable Compliance Rules.

  
	
   

  	
   

  
	
  10.5

  	
  Survival of termination

  
	
   

  	
   

  
	
   

  	
  The rights and entitlements and the obligations and
  liabilities, as each are set out in each of clauses 6, 8.3, 8.6, 9 and 10,
  will survive termination of this agreement.

  
	
   

  	
   

  
	
  10.6

  	
  Damages

  
	
   

  	
   

  
	
   

  	
  Termination of this agreement under the provisions
  of clause 10.1, save as provided in clause 10.2, will not extinguish any
  claim for damages which the Underwriter may otherwise have arising from a
  breach of this agreement by the Company.

  
	
   

  	
   

  
	
  11.

  	
  Confidentiality

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  The Underwriter agrees to keep confidential any
  information concerning the Company and its Subsidiaries which it may receive
  in its capacity as Underwriter under this agreement. All information given by
  the Company and its Subsidiaries to the Underwriter must not be disclosed to
  any person except:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  to employees, legal advisers, auditors and other
  consultants of the Underwriter requiring the information for proper purposes
  in connection with this agreement, the Entitlement Issue or the EI
  Prospectus;

  

 

 49
 

	
   

  	
  (ii)

  	
  with the consent of the Company;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  if required by any Compliance Rules, law, ASX, SEC
  or NASDAQ provided the Underwriter promptly notifies the Company of this
  requirement and consults with the Company as to the form and content of
  disclosure and uses its best endeavours to minimise any such disclosure and
  to ensure the information disclosed is treated confidentially; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  if the information is publicly available other than
  as a result of breach of confidence by any person receiving the information.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  If this agreement is terminated for any reason the
  Underwriter must at the direction of the Company either return or destroy all
  such information within its possession or control.

  
	
   

  	
   

  
	
  12.

  	
  Notices

  
	
   

  	
   

  
	
  12.1

  	
  Service of notices

  
	
   

  	
   

  
	
   

  	
  A notice, demand, consent, approval or communication
  under this agreement (Notice):

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  must be in writing and in English directed to the
  recipient’s address for notices specified in the Details (as varied by any
  Notice);

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  must be hand delivered, left at or sent by prepaid
  post or facsimile to the recipient’s address for notices specified in the
  Details (as varied by any Notice); and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  may be given by an agent of the sender.

  
	
   

  	
   

  
	
  12.2

  	
  Effective on receipt

  
	
   

  	
   

  
	
   

  	
  A Notice given in accordance with clause 12.1 takes
  effect when received (or at a later time specified in it), and is taken to be
  received:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  if hand delivered or left at the recipient’s
  address, on delivery;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if sent by prepaid post, the third Business Day
  after the date of posting, or the seventh Business Day after the date of
  posting if posted to or from outside Australia; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  if sent by facsimile, when the sender’s facsimile
  system generates a message confirming successful transmission of the entire
  Notice unless, within one Business Day after the transmission, the recipient
  informs the sender that it has not received the entire Notice,

  
	
   

  	
   

  	
   

  
	
   

  	
  but if the delivery or transmission under paragraph
  (a) or (c) is outside Business Hours, the Notice is taken to be received at
  the commencement of Business Hours after that delivery, receipt or transmission.

  

 

 50

	
  12.3

  	
  Process service

  
	
   

  	
   

  
	
   

  	
  Any process or other document relating to
  litigation, administrative or arbitral proceedings in relation to this
  agreement may be served by any method contemplated by this clause in addition
  to any means authorised by law.

  
	
   

  	
   

  
	
  12.4

  	
  Notice to Underwriter

  
	
   

  	
   

  
	
   

  	
  Notwithstanding any other provision of this clause
  12, any Notice required to be given under the provisions of this agreement to
  the Underwriter must be given as close as possible to simultaneously, to both
  eG and Bell, unless the abovementioned intended recipient agrees otherwise
  with the sender.

  
	
   

  	
   

  
	
  13.

  	
  General

  
	
   

  	
   

  
	
  13.1

  	
  Alterations

  
	
   

  	
   

  
	
   

  	
  This agreement may be altered only in writing signed
  by each party.

  
	
   

  	
   

  
	
  13.2

  	
  Approvals and consents

  
	
   

  	
   

  
	
   

  	
  Except where this agreement expressly states
  otherwise, a party may, in its discretion, give conditionally or
  unconditionally or withhold any approval or consent under this agreement.

  
	
   

  	
   

  
	
  13.3

  	
  Assignment

  
	
   

  	
   

  
	
   

  	
  A party may only assign a right under this agreement
  with the prior written consent of each other party.

  
	
   

  	
   

  
	
  13.4

  	
  Counterparts

  
	
   

  	
   

  
	
   

  	
  This agreement may be executed in counterparts. All
  executed counterparts constitute one document. This agreement may be executed
  by any of the Parties by duly executing a counterpart and forwarding a copy
  of the signed counterpart to the other party.

  
	
   

  	
   

  
	
  13.5

  	
  Stamp Duty

  
	
   

  	
   

  
	
   

  	
  The Parties agree that any stamp duty assessed on
  this agreement will be paid by the Company.

  
	
   

  	
   

  
	
  13.6

  	
  No merger

  
	
   

  	
   

  
	
   

  	
  Except where this agreement expressly states
  otherwise, the rights and obligations of the Parties under this agreement do
  not merge on completion of any transaction contemplated by this agreement.

  

 

 51
 

	
  13.7

  	
  Entire agreement

  
	
   

  	
   

  
	
   

  	
  This agreement constitutes the entire agreement
  between the Parties in connection with its subject matter and supersedes all
  previous agreements or understandings between the Parties in connection with
  its subject matter.

  
	
   

  	
   

  
	
  13.8

  	
  Further action

  
	
   

  	
   

  
	
   

  	
  Each party must do, at its own expense, everything
  reasonably necessary to give full effect to this agreement and the
  transactions contemplated by it (including executing documents) and to use
  all reasonable endeavours to cause relevant third parties to do likewise.

  
	
   

  	
   

  
	
  13.9

  	
  Severability

  
	
   

  	
   

  
	
   

  	
  If the whole or any part of a provision of this
  agreement is invalid or unenforceable in a jurisdiction it must, if possible,
  be read down for the purposes of that jurisdiction so as to be valid and
  enforceable. If however, the whole or any part of a provision of this
  agreement is not capable of being read down, it is severed to the extent of
  the invalidity or unenforceability without affecting the remaining provisions
  of this agreement or affecting the validity or enforceability of that
  provision in any other jurisdiction.

  
	
   

  	
   

  
	
  13.10

  	
  Enforcement of indemnities

  
	
   

  	
   

  
	
   

  	
  It is not necessary for a party to incur expense or
  make payment before enforcing a right of indemnity conferred by this
  agreement.

  
	
   

  	
   

  
	
  13.11

  	
  Survival

  
	
   

  	
   

  
	
   

  	
  Any indemnity or obligation of confidentiality in this
  agreement is independent and survives termination of this agreement. Any
  other term which by its nature is intended to survive termination of this
  agreement survives termination of this agreement.

  
	
   

  	
   

  
	
  13.12

  	
  Attorneys

  
	
   

  	
   

  
	
   

  	
  Each person who executed this agreement on behalf of
  a party declares that he or she has no notice of the revocation or suspension
  by the grantor or in any other manner of the power of attorney under the
  authority of which he or she executes this agreement.

  
	
   

  	
   

  
	
  13.13

  	
  Waiver

  
	
   

  	
   

  
	
   

  	
  A party does not waive a right, power or remedy if
  it fails to exercise or delays in exercising the right, power or remedy. A
  single or partial exercise by a party of a right, power or remedy does not
  prevent another or further exercise of that or another right, power or
  remedy. A waiver of a right, power or remedy must be in writing and signed by
  the party giving the waiver.

  

 

 52
 

	
  13.14

  	
  Relationship

  
	
   

  	
   

  
	
   

  	
  Except where this agreement expressly states
  otherwise, this agreement does not create a relationship of employment,
  trust, agency or partnership between the Parties. Notwithstanding the
  foregoing, the Company acknowledges and agrees that the Underwriter has been
  retained by the Company solely to act as underwriter in connection with the Entitlement
  Issue and no fiduciary, advisory or agency relationship between the Company
  and the Underwriter has been created in respect of any of the transactions
  contemplated by this agreement, irrespective of whether such Underwriter has
  advised or is advising the Company on other matters. The Company waives, to
  the fullest extent permitted by law, any claims it may have against the
  Underwriter for breach of fiduciary duty or alleged breach of fiduciary duty
  and agrees that the Underwriter shall have no liability (whether direct or
  indirect) to the Company in respect of such a fiduciary duty claim or to any
  person asserting a fiduciary duty claim on behalf of or in right of the
  Company, including Shareholders, employees or creditors of the Company.

  
	
   

  	
   

  
	
  13.15

  	
  Remedies cumulative

  
	
   

  	
   

  
	
   

  	
  The rights provided in this agreement are cumulative
  with and not exclusive of the rights, powers or remedies provided by law
  independently of this agreement.

  
	
   

  	
   

  
	
  13.16

  	
  Governing law

  
	
   

  	
   

  
	
   

  	
  This agreement will be governed by and construed in
  accordance with the law for the time being in force in New South Wales and
  the Parties, by entering into this agreement, are deemed to have submitted to
  the non-exclusive jurisdiction of the courts of that State.

  
	
   

  	
   

  
	
  13.17

  	
  Exercise of rights

  
	
   

  	
   

  
	
   

  	
  A party may exercise a right, at its discretion and
  separately or concurrently with another right.

  

 

 53
 

Executed
as an agreement

	
  Executed by Progen Pharmaceuticals

  	
  )

  
	
  Limited (ABN 82 010 975 612) in  

  	
  )

  
	
  accordance with Section 127 of the 

  	
  )

  
	
  Corporations Act 2001 (Cth)

  	
   

  
			

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ T. Justus Homburg

  	
   

  	
  /s/ Stephen Chang

  
	
  Signature of authorised person

  	
   

  	
  Signature of authorised person

  
	
   

  	
   

  	
   

  
	
  Chief Executive Officer

  	
   

  	
  Chairman

  
	
  Office held

  	
   

  	
  Office held

  
	
   

  	
   

  	
   

  
	
  T. JUSTUS HOMBURG

  	
   

  	
  STEPHEN CHANG

  
	
  Name of authorised person

  (BLOCK LETTERS)

  	
   

  	
  Name of authorised person

  (BLOCK LETTERS)

  

 

	
  Executed by Emerging Growth Capital
  

  	
  )

  
	
  Pty Limited (ABN 16 093 677 180) in 

  	
  )

  
	
  accordance with Section 127 of the 

  	
  )

  
	
  Corporations Act 2001 (Cth)

  	
   

  

 

	
  

  	
   

  
	
   

  	
   

  
	
  /s/ Peter Forbes

  	
   

  	
  /s/ Ross M. Lewin

  
	
  Signature of authorised person

  	
   

  	
  Signature of authorised person

  
	
   

  	
   

  	
   

  
	
  Chairman

  	
   

  	
  Director

  
	
  Office held

  	
   

  	
  Office held

  
	
   

  	
   

  	
   

  
	
  PETER FORBES

  	
   

  	
  ROSS M. LEWIN

  
	
  Name of authorised person

  (BLOCK LETTERS)

  	
   

  	
  Name of authorised person

  (BLOCK LETTERS)

  

 

 54
 

	
  Executed by Bell Potter Securities 

  	
  )

  
	
  Limited (ABN 25 006 390 772) 

  	
  )

  
	
  in accordance with Section 127 of the

  	
  )

  
	
  Corporations Act 2001 (Cth)

  	
   

  

 

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Alastair Provan

  	
   

  	
  /s/ Colin Bell

  
	
  Signature of authorised person

  	
   

  	
  Signature of authorised person

  
	
   

  	
   

  	
   

  
	
  MD

  	
   

  	
  CEO

  
	
  Office held

  	
   

  	
  Office held

  
	
   

  	
   

  	
   

  
	
  ALASTAIR PROVAN

  	
   

  	
  COLIN BELL

  
	
  Name of authorised person

  (BLOCK LETTERS)

  	
   

  	
  Name of authorised person

  (BLOCK LETTERS)

  

 

 

 55

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]