<PAGE>
United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
March 27, 1998 (March 19, 1998)
Tier Technologies, Inc.
(Exact Name of Registrant as Specified in Charter)
California 000-23195 94-3145844
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification Number)
1350 Treat Boulevard,
Suite 250
Walnut Creek, California 94596
(Address of Principal
Executive Offices) (Zip Code)
(925) 937-3950
(Registrant's Telephone
Number, Including Area Code)
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On March 19, 1998, Tier Technologies, Inc., a California corporation
(the "REGISTRANT"), through the Registrant's wholly-owned subsidiary, Tier
Technologies (Australia) Pty Limited, a company organized under the laws of the
Commonwealth of Australia, acquired the assets of Sancha Computer Services Pty
Limited and Sancha Software Development Pty Limited, each, a company organized
under the laws of the Commonwealth of Australia and in the business of providing
information technology services (together, "SANCHA"), for a total consideration
of $6,700,000 (Australian dollars) in cash and approximately 51,000 shares of
Class B Common Stock of the Registrant. Upon the achievement of certain
performance targets, Sancha may receive additional consideration in an aggregate
amount not to exceed $2,450,000 (Australian dollars) in calendar years 1998
through 2000. The purchase price was determined by arms-length negotiations
between representatives of the Registrant and Sancha and the funds used and to
be used by the Registrant in connection with the acquisition are from the
Registrant=s working capital. The value of the Class B Common Stock of the
Registrant was determined by dividing the average of the closing price (after
conversion to Australian dollars using the exchange rate quoted by the
Commonwealth Bank of Australia for buying U.S. dollars at the end of trading on
the business day preceding the Purchase Date (as such term is defined in the
acquisition agreement)) of the Class B Common Stock on the NASDAQ Exchange for
each of the three business days preceding the date of the acquisition agreement.
The foregoing description does not purport to be a complete description of the
terms of the acquisition agreement, as amended, copies of which are attached
hereto as exhibits and incorporated herein by reference.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(a) Financial Statements of Business Acquired. It is impracticable at
-----------------------------------------
this time for the Registrant to provide the financial statements of the acquired
business which are required by ITEM 7(A) of this Form 8-K. Such financial
statements will be filed by the Registrant as an amendment to this Form 8-K as
soon as practicable, but in any event not later than sixty (60) days after the
date hereof.
(b) Pro Forma Financial Information. It is impracticable at this time
-------------------------------
for the Registrant to provide the pro forma financial information relative to
the acquired business which is required by ITEM 7(B) of this Form 8-K. Such
pro forma financial information will be filed by the Registrant as an amendment
to this Form 8-K as soon as practicable, but in any event not later than sixty
(60) days after the date hereof.
(c) Exhibits. The following are filed as exhibits to this Form 8-K
--------
and are incorporated herein by reference.
EXHIBIT NUMBER EXHIBIT DESCRIPTION
2.1 Business Purchase Agreement, among Sancha Computer Services
Pty Limited, Sancha Software Development Pty Limited and
Tier Technologies (Australia) Pty Limited, dated as of
February 26, 1998.
2.2 Amendment of Business Purchase Agreement, among Sancha
Computer Services Pty Limited, Sancha Software Development
Pty Limited and Tier Technologies (Australia) Pty Limited.
<PAGE>
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 27, 1998 TIER TECHNOLOGIES, INC.
By: /s/ George K. Ross
-----------------------
Name: George K. Ross
Title: Chief Financial Officer and
Senior Vice President
<PAGE>
EXHIBIT 2.1
BUSINESS PURCHASE AGREEMENT
SANCHA COMPUTER SERVICES PTY LIMITED
ACN 003 067 945
SANCHA SOFTWARE DEVELOPMENT PTY LIMITED
ACN 003 067 936
and
TIER TECHNOLOGIES (AUSTRALIA) PTY LIMITED
ACN 076 287 039
F r e e h i l l
---------------------
H o l l i n g d a l e
---------------------
& P a g e
---------------------
MLC CENTRE MARTIN PLACE SYDNEY NEW SOUTH WALES 2000 AUSTRALIA
TELEPHONE (02) 9225 5000 INT + (61 2) 9225 5000 FACSIMILE (02) 9322 4000 DX 361
SYDNEY
REFERENCE: PC:30B
SYDNEY MELBOURNE PERTH CANBERRA BRISBANE SINGAPORE HANOI HO CHI MINH CITY
CORRESPONDENT OFFICE IN JAKARTA
<PAGE>
- --------------------------------------------------------------------------------
THIS BUSINESS PURCHASE AGREEMENT
is made on the _____ day of February 1998 between the following
parties:
1. SANCHA COMPUTER SERVICES PTY LIMITED
ACN 003 067 945
as trustee of the Sancha Computer Services Unit Trust of 30A
Marlborough Place, St Ives, New South Wales, 2075, Australia
(SELLER)
2. SANCHA SOFTWARE DEVELOPMENT PTY LIMITED
ACN 003 067 936
of 30A Marlborough Place, St Ives, New South Wales, 2075,
Australia
(SSD)
3. TIER TECHNOLOGIES (AUSTRALIA) PTY LIMITED
ACN 076 287 039
of 99 Walker Street, North Sydney, New South Wales, 2060,
Australia
(BUYER)
RECITALS
A. The Seller is the owner of the Business Assets.
B. The Seller agrees to sell and the Buyer agrees to buy the
Business Assets.
C. SSD is the owner of the SSD Business.
D. SSD agrees to sell and the Buyer agrees to buy the SSD Business
and SSD agrees to release the Employees and the Contractors to
permit the Buyer to employ and engage them in conjunction with
the purchase of the Business and the Business Assets from the
Seller.
THE PARTIES AGREE
in consideration of, among other things, the mutual promises contained
in this agreement:
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1 DEFINITIONS AND INTERPRETATION
1.1 DEFINITIONS
In this agreement:
ACCOUNTS means the balance sheet in respect of the Business and the
profit and loss account in respect of the Business for the years
ending 30 June 1995, 1996 and 1997 and attached to this agreement as
annexure D;
ACCOUNTS DATE means 30 June 1997;
ACCOUNTING STANDARDS means the accounting standards and practices
determined under clause 1.4;
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AUTHORISATION includes:
(a) any consent, registration, filing, agreement, notarisation,
certificate, licence, approval, permit, authority or exemption
from, by or with a Governmental Agency; and
(b) any consent or authorisation regarded as given by a Governmental
Agency due to the expiration of the period specified by a statute
within which the Governmental Agency should have acted if it
wished to proscribe or limit anything already lodged, registered
or notified under that statute;
BUSINESS means the business of providing computer services carried on
by the Seller primarily in New South Wales, but also in Victoria and
Western Australia;
BUSINESS ASSETS means the assets situated in New South Wales, Victoria
and Western Australia used in or forming part of the Business and
includes, but is not limited to:
(a) Client Contracts;
(b) Computer Equipment;
(c) the Business Records;
(d) the Contracts;
(e) the Goodwill;
(f) the Property Leases;
(g) the Intellectual Property Rights;
BUSINESS DAY means a day on which banks are open for business in
Sydney;
BUSINESS RECORDS means in relation to the Business:
(a) correspondence with Clients in relation to the Client Contracts;
(b) customer lists;
(c) supplier lists;
(d) records of Contracts and Property Leases;
(e) records of Receivables;
(f) computer programmes, data bases and software;
(g) originals or copies of ledgers, journals and books of account;
(h) information on the marketing of any services provided in the
Business;
(i) results of research carried out and other know-how; and
(j) all other documents and records in respect of the Business or the
Business Assets;
CLIENT CONTRACTS means the contracts between the Seller and the
Clients as described in schedule 2 and forming annexure A.
CLIENT NOVATION AGREEMENTS means agreements in the form of annexure F;
CLIENTS means the clients of the Seller described in Schedule 2;
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COMPUTER EQUIPMENT means all computer equipment used in the Business
as described in schedule 8;
CONTINUING BUSINESS means the business carried on by the Buyer after
the Purchase Date which involves the provision of computer services of
the same or substantially similar type to those provided in the
Business. Without limitation, the Continuing Business will include all
computer services provided to the Sancha Clients and any other
customers in the Financial Services Sector. If Tier acquires any other
business in Australia which offers services partially or wholly in the
Financial Services Sector, then the following business will be
excluded from this definition of Continuing Business:
* Any business forming part of that other business as at the date
when the business was purchased.
* Any business resulting directly from making more sales of the same
services to the same business units within the same clients as that
other business had as at the date when it was purchased.
Also excluded from this definition of Continuing Business is any
business forming part of the Buyer's business as at the Purchase Date
and organic growth thereof within the government sector (other than
government entities which are in any way involved in the provision or
regulation of insurance or related services);
CONTRACTOR CONTRACTS means the contracts between SSD and the
Contractors and forming annexure B;
CONTRACTOR NOVATION AGREEMENTS means the agreements in the form of
annexure G;
CONTRACTORS means the independent contractors of SSD used in the SSD
Business as described in schedule 5;
CONTRACTS means the agreements in respect of the Business to which the
Seller is a party and which are, in whole or in part, executory as at
the Purchase Date but excludes:
(a) the Client Contracts, Contractor Contracts and the contracts with
Employees;
(b) the Property Leases; and
(c) any agreements to the extent they relate to Excluded Assets or
Liabilities which are not otherwise assumed by the Buyer under
this agreement;
COPYRIGHT means the copyright of the Seller described in schedule 7;
DISCLOSURE LETTER means the letter from the Seller and SSD dated the
date of this agreement delivered to the Buyer before the signing of
this agreement and which contains disclosures in respect of the
Warranties;
DOLLARS, A$ and $ means the lawful currency of the Commonwealth of
Australia;
DUTY means any stamp, transaction or registration duty or similar
charge imposed by any Governmental Agency and includes, but is not
limited to, any interest, fine, penalty, charge or other amount
imposed in respect of the above;
EMPLOYEE AND CONTRACTOR RELEASE means the release described in clause
8.10;
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EMPLOYEES means the employees of SSD listed in schedule 4 and any
persons who become employees of SSD between the date of this agreement
and the Purchase Date;
ENCUMBRANCE means an interest or power:
(a) reserved in or over an interest in any asset including, but not
limited to, any retention of title; or
(b) created or otherwise arising in or over any interest in any asset
under a bill of sale, mortgage, charge, lien, pledge, trust or
power,
by way of security for the payment of a debt, any other monetary
obligation or the performance of any other obligation, and includes,
but is not limited to, any agreement to grant or create any of the
above;
ENCUMBER shall mean to create or suffer to exist an Encumbrance;
ESCROW AGENT means Williams Hatchman & Kean Nominees Pty Limited, ACN
001 874 808 of Level 15, 309 Kent Street, Sydney;
ESCROW AGREEMENT means the agreement so styled and forming annexure L;
EXCLUDED ASSETS means the following assets of the Seller used in or
forming part of the Business:
(a) cash, including, but not limited to, funds held with any bank or
financial institution to the credit of the Seller and cash on
hand as at the Payment Date;
(b) the Receivables; and
(c) any other debts owed to the Seller;
EXCLUDED RECORDS means those Business Records or SSD Business Records
which the Seller or SSD is required by law to retain;
FAI means FAI Insurances Limited (ACN 004 304 545) and its Related
Corporations;
FAI PEOPLE means the people listed below as adjusted pursuant to
clause 3.8(f):
Turkel Ahmed
Phillippa Barrett
Joanne Elliott
Jeff Giorguitti
Phillip Golamco
Randall Halligan
John Hepburn
Warren Hillier
James Howison
Toufic Lawand
Mark Midwinter
Tony Mooney
Les Palmer
Hiie Pank
Steve Rapley
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Kate Richardson
Vidya Shastri
Ted Smith
Sam Ton
Karl Tuckfeld
Marina Valugani
Jose Vieira
Bill Watkins
Gary Whitton
Ian Williams
FAI CONTRACT means the contract under which the Seller provides
computer services to FAI, the terms of which are currently set out in
the letter dated 10 September 1997 in annexure A;
FINANCIAL SERVICES SECTOR means all businesses in Australia involving
the provision in Australia of financial, banking or insurance products
or services;
FIRST PERFORMANCE TARGET means the Revenue calculated in accordance
with clause 3.6;
HBF CONTRACT means the agreement for services between the Seller and
Hospital Benefit Fund of W.A. Inc. (HBF) dated 23 September 1997, the
AEGIS Licence Agreement between the Seller and HBF dated 24 November
1997 and the SRP Licence Agreement dated 23 September 1997 between the
Seller and HBF;
INDEPENDENT ACCOUNTANT means a chartered accountant, independent of
the Seller and the Buyer, agreed by them or in default of agreement
within 14 days, nominated by the President for the time being of the
Institute of Chartered Accountants (NSW Branch);
GOODWILL means the goodwill in respect of the Business and includes
the exclusive right for the Buyer to represent itself as carrying on
the Business as the successor of the Seller;
GOVERNMENTAL AGENCY means any government or governmental, semi-
governmental, administrative, fiscal or judicial body, department,
commission, authority, tribunal, agency or entity in any part of the
world;
IMMEDIATELY AVAILABLE FUNDS means cash or bank cheque;
INITIAL PURCHASE PRICE means the amount specified in clause 3.1 (a)
(1);
INTELLECTUAL PROPERTY RIGHTS means the rights and interests of the
Seller:
(a) in respect of confidential information, trade secrets, know-how,
scientific, technical and product information used in or forming
part of the Business;
(b) in any copyright, patent, design or trademark used in or forming
part of the Business; and
(c) to protect the reputation of the services provided under the
Brand Names or the Business Names and against passing off by
others,
and includes, but is not limited to, the Trade Marks and the Copyright
listed in schedule 7;
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<PAGE>
KEY CONTRACTS means the Contracts for the engagement by the Buyer of
the Key Contractors and forming annexure M;
KEY CONTRACTORS means Sancha Pty Limited (ACN 001 405 278), Julian
Midwinter & Associates Pty Limited (ACN 002 118 818), Nordrana Pty
Limited (ACN 002 315 497) and Shatten Pty Limited (ACN 005 825 061);
LIABILITIES means all liabilities of the Seller or any other person in
respect of the Business as at the Purchase Date and includes, but is
not limited to:
(a) a liability of the Seller to an employee or a trade creditor of
the Business;
(b) a liability of the Seller in respect of a breach of warranty or
other term of a Client Contract or any other contract concerning
the Business;
(c) a liability of the Seller to a Related Corporation of the Seller;
(d) a liability of the Seller in respect of a loan, bank overdraft,
trade bill facility, other financial accommodation, guarantee or
indemnity;
(e) a judgment debt, fine, criminal or civil penalty, liability for
damages or compensation or to account for profits or to make
restitution;
(f) a Tax or a Duty;
(g) a fee, charge or expense for legal, accounting or other
professional services for which the Seller is liable,
irrespective of whether the liability:
(h) is actual, prospective, contingent or otherwise;
(i) is at any time ascertained or unascertained;
(j) is owing or incurred by or on account of the Seller alone or
severally or jointly with any other person; or
(k) comprises any combination of the above;
MATERIAL CONTRACT means a Contract which:
(a) is material to the proper and efficient operation of the
Business;
(b) imposes on the Seller, or when assigned or novated under this
agreement will impose on the Buyer, an obligation in respect of
the Business or the Business Assets:
(1) to pay more than $10,000;
(2) which continues for more than 6 months;
(3) which restricts the places or manner in which the Business
may be carried on; or
(4) is onerous in the context of the Business; or
(c) upon ceasing to be executory is more likely than not to result in
a loss to the Seller, or when assigned or novated under this
agreement, the Buyer;
OFFICER means, in relation to a body corporate, a director or
secretary of that body corporate;
PROPERTIES means the properties leased under the Property Leases;
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<PAGE>
PROPERTY LEASES means the leases of the real property at which the
Business is carried on listed in schedule 6;
PURCHASE DATE means 1 March 1998;
PURCHASE PRICE means the purchase price payable for the Business
Assets and the SSD Business calculated under clause 3;
RECEIVABLES means the trade debts acquired in the ordinary course of
ordinary business of the Business owed to the Seller at the Purchase
Date and which are specified in the Settlement Statement;
RELATED CORPORATION means a "related body corporate" as that
expression is defined in the Corporations Law and includes a body
corporate which is at any time after the date of this agreement a
"related body corporate" but ceases to be a "related body corporate"
because of an amendment, consolidation or replacement of the
Corporations Law;
REVENUE means revenue (net of discounts) earned for services and
software (net of any associated licence fees) provided whether or not
paid, invoiced or in respect of which payment or invoicing is the
subject of any contingency but to be adjusted if unpaid after 180 days
from the date of invoice;
SANCHA CLIENTS means each of the clients of the Seller as at the
Purchase Date and any person who was a client of the Seller at any
time during the 2 years preceding the Purchase Date;
SANCHA UNIT TRUST DEED means the Deed of Trust dated 1 February 1987
between Peter Gluyas (as settlor), Seller (as trustee) and Sancha Pty
Limited, Nordrana Pty Limited and Denvale Pty Limited (as original
unitholders), as amended by the Deed of Amendment for the Sancha
Computer Services Unit Trust dated 1 October 1997 between Seller,
Sancha Pty Limited, Nordrana Pty Limited, Shatten Pty Limited, Julian
Midwinter & Associates Pty Limited and Denvale Pty Limited;
SECOND PERFORMANCE TARGET means the Revenue calculated in accordance
with clause 3.7;
SETTLEMENT means completion of the sale and purchase of the Business
Assets;
SETTLEMENT DATE means the date set under clause 11.1 or such other
date as the parties may agree;
SETTLEMENT STATEMENT means the statement to be prepared as at the
Settlement Date under clause 4.1 and in the form of Schedule 9;
SSD BUSINESS means the business carried on by SSD of providing
employee and contractor services to the Seller;
SSD BUSINESS RECORDS means:
(a) records of Transferring Employees and of the amounts referred to
in clause 8.4 and clause 9; and
(b) records of all Contractors;
SUBSCRIPTION MONEY means the $1,000,000 described in clause 3.3(b);
SUBSIDIARY has the same meaning as in the Corporations Law;
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TANGIBLE ASSETS means the Computer Equipment;
TAX means any tax, levy, charge, impost, duty, fee, deduction,
compulsory loan or withholding which is assessed, levied, imposed or
collected by any Governmental Agency and includes, but is not limited
to, any interest, fine, penalty, charge, fee or other amount imposed
in respect of the above;
TIER SHARES AGREEMENT means the agreement dated on or about the date
of this agreement between the Buyer and the Key Contractors under
which the Key Contractors acknowledge certain restrictions on the Tier
Shares imposed under the United States Securities Act;
TIER SHARES means the number of Tier Technologies Class B common stock
equal to $1,000,000 divided by the average of the closing price (each
such closing price to be converted to Australian dollars using the
exchange rate quoted by the Commonwealth Bank of Australia for buying
US Dollars as at the end of trading of the Business Day preceding the
Purchase Date) of Tier Class B Common Stock on the Nasdaq Exchange for
each of the 3 Business Days preceding the date of this agreement;
TIER SHARE CERTIFICATE means the share certificate duly issued by Tier
Technologies in relation to the Tier Shares;
TIER TECHNOLOGIES means Tier Technologies, Inc a company duly
incorporated in the State of California with principal office at 1350
Treat Boulevard, Suite 250, Walnut Creek, California 94596;
TRADE MARKS means the trade marks described in schedule 7;
TRANSFERRING CONTRACTOR means a Contractor who duly executes a
Contactor Novation Agreement under clause 8.6 or 8.9;
TRANSFERRING EMPLOYEE means an Employee who accepts the Buyer's offer
of employment under clause 8.1 or 8.3; and
WARRANTIES means the representations and warranties set out in
schedule 1.
1.2 INTERPRETATION
In this agreement, headings and boldings are for convenience only and
do not affect the interpretation of this agreement and, unless the
context otherwise requires:
(a) words importing the singular include the plural and vice versa;
(b) words importing a gender include any gender;
(c) other parts of speech and grammatical forms of a word or phrase
defined in this agreement have a corresponding meaning;
(d) an expression importing a natural person includes any company,
partnership, joint venture, association, corporation or other
body corporate and any Governmental Agency;
(e) a reference to any thing (including, but not limited to, any
right) includes a part of that thing;
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(f) a reference to a part, clause, party, annexure, exhibit or
schedule is a reference to a part and clause of, and a party,
annexure, exhibit and schedule to, this agreement and a reference
to this agreement includes any annexure, exhibit and schedule;
(g) a reference to a statute, regulation, proclamation, ordinance or
by-law includes all statutes, regulations, proclamations,
ordinances or by-laws amending, consolidating or replacing it,
and a reference to a statute includes all regulations,
proclamations, ordinances and by-laws issued under that statute;
(h) a reference to a document includes all amendments or supplements
to, or replacements or novations of, that document;
(i) a reference to a party to a document includes that party's
successors and permitted assigns;
(j) a covenant or agreement on the part of two or more persons binds
them jointly and severally;
(k) a reference to an agreement other than this agreement includes an
undertaking, deed, agreement or legally enforceable arrangement
or understanding, whether or not in writing;
(l) a reference to an asset includes all property of any nature,
including, but not limited to, a business, and all rights,
revenues and benefits;
(m) a reference to a document includes any agreement in writing, or
any certificate, notice, instrument or other document of any
kind; and
(n) a reference to liquidation includes official management,
appointment of an administrator, compromise, arrangement, merger,
amalgamation, reconstruction, winding-up, dissolution, assignment
for the benefit of creditors, scheme, composition or arrangement
with creditors, insolvency, bankruptcy, or any similar procedure
or, where applicable, changes in the constitution of any
partnership or person, or death.
1.3 BUSINESS DAY
Where the day on or by which any thing is to be done is not a Business
Day, that thing must be done on or by the preceding Business Day.
1.4 ACCOUNTING STANDARDS
(a) In respect of any accounting practice relevant to this agreement,
unless otherwise expressly required otherwise the following
accounting standards apply:
(1) the accounting standards required under the Corporations
Law;
(2) if no accounting standard applies under the Corporations Law
in relation to an accounting practice, the standards
acceptable to the Australian Accounting Research Foundation,
including:
(A) the Australian Accounting Concepts;
(B) the Australian Accounting Standards; and
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(C) the Approved Accounting Standards; and
(3) if no accounting standard applies under clause 1.4(a)(1)
the accounting practice agreed between the parties
and, failing agreement, the accounting practice determined
under clause 1.4(b).
(b) If the parties do not agree under clause 1.4(a)(3), the
matter must be referred as soon as practicable to the President
of the Institute of Chartered Accountants in Australia or his
nominee for determination of the appropriate accounting practice.
Any party may make the referral under this clause 1.4(b).
(c) A determination under clause 1.4(b) is final and binding on the
parties.
(d) The parties must bear equally the costs of the referral and
determination under clause 1.4(b).
(e) In making a determination under clause 1.4(b), the President of
the Institute of Chartered Accountants or his nominee acts as an
expert, not as an arbitrator.
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2 SALE AND PURCHASE
2.1 SALE OF BUSINESS ASSETS AND RELEASE OF EMPLOYEES AND CONTRACTORS
With effect on the Purchase Date:
(a) the Seller must sell and the Buyer must buy the Business Assets,
and
(b) subject to the terms of this agreement, SSD must sell and the
Buyer must buy the SSD Business and for this purpose SSD must
release the Transferring Employees and the Transferring
Contractors,
for the Purchase Price free of Encumbrances and other third party
rights.
2.2 CONTROL AND MANAGEMENT OF THE BUSINESS
The Seller, SSD and the Buyer acknowledge and agree that with effect
on and from the Purchase Date, the Buyer shall assume effective
control and management of the Business and the SSD Business.
- --------------------------------------------------------------------------------
3 PURCHASE PRICE
3.1 PURCHASE PRICE
(a) The Purchase Price is the total value of the Business Assets and
the SSD Business which is the total of the following amounts:
(1) $7,238,888; and
(2) subject to the level of services provided to FAI pursuant to
the FAI Contract as described in clause 3.8 an additional
amount calculated under clause 3.8; and
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(3) subject to attainment of the First Performance Target - an
additional amount calculated under clause 3.6; and
(4) subject to attainment of the Second Performance Target - an
additional amount calculated under clause 3.7.
The Purchase Price shall be apportioned among the Business Assets
and the SSD Business under clause 3.2 and clause 4 and as set out
in the Settlement Statement.
(b) The Purchase Price is payable under clauses 3.3, 3.6, 3.7 and
3.8.
3.2 APPORTIONMENT
(a) The Business Assets shall be valued and the Initial Purchase
Price apportioned by the parties on or by the Settlement Date
pursuant to the Settlement Statement. The SSD Business shall be
valued at $1,500,000.
(b) Any amounts payable to the Seller on account of the FAI Contract
described in clause 3.8 shall be apportioned among the Business
Assets as the Buyer thinks fit.
(c) If the Buyer pays the amount described in clauses 3.6 and 3.7 the
additional amounts paid shall be apportioned among the Business
Assets rateably in proportion to the amounts ascribed to the
Business Assets (except Computer Equipment) in the Settlement
Statement.
(d) The Buyer and the Seller must agree the values assigned to all
depreciated and depreciable Tangible Assets under sections 42-90
of the Income Tax Assessment Act 1997 (Cth).
3.3 PAYMENT AT SETTLEMENT
(a) Subject to satisfaction of the condition described in clause
18.2 and the Seller's performance of its obligations under
clauses 11.2, 11.3, 11.4, 11.5 and SSD's performance of its
obligations under 11.6, at Settlement the Buyer must pay to the
Seller and SSD on account of the Purchase Price and in
Immediately Available Funds $7,238,888.
(b) Contemporaneous with the payment of $7,238,888 described in
clause 3.3(a) the Seller shall pay to the Buyer as agent for
Tier Technologies in Immediately Available Funds (which shall
include an endorsed cheque drawn on the Buyer directing payment
to Tier Technologies) $1,000,000. The Buyer must immediately make
such payment to Tier Technologies for the purposes described in
clause 3.4.
(1) The Seller acknowledges and agrees that the $1,000,000 paid
under clause 3.3(b) is at the direction of the Key
Contractors in their capacity as beneficial owners of units
in the trust established by the Sancha Unit Trust Deed. The
Seller represents and warrants to the Buyer and Tier
Technologies that upon receipt of the Initial Purchase Price
it will make a distribution through that trust to the Key
Contractors in an amount equal to $1,000,000 in such
proportions as the Key Contractors direct. The Seller must
produce
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such direction, duly executed by each Key Contractor and the
Seller hereby represents and warrants to the Buyer for
itself and for the benefit of Tier Technology that it has
due power and authority to make such distribution to the Key
Contractors and indemnifies the Buyer and Tier Technologies
for any harm or damage they incur in reliance on such
direction and the action of the Seller as trustee.
3.4 DELIVERY OF TIER SHARE CERTIFICATE
Contemporaneous with the receipt by the Buyer of the Subscription
Money, the Buyer must deliver to the Escrow Agent the Tier Share
Certificate in respect of the Tier Shares. The Buyer must cause Tier
Technology to issue the Tier Shares in sufficient time to facilitate
this transaction.
3.5 TIER SHARES UNENCUMBERED
With the exception of the restrictions referred to in the Tier Shares
Agreement, the Warranties and the Escrow Agreement, the Tier Shares
must be issued as fully paid shares of Class B common stock in Tier
Technologies in accordance with all relevant legal requirements free
from any Encumbrance.
3.6 FIRST PERFORMANCE TARGET - ADDITIONAL CONSIDERATION
(a) The First Performance Target will be achieved if the Revenue of
the Continuing Business for the period from 1 April 1998 to 31
March 1999 is not less than $6,000,000.
(b) If the First Performance Target is achieved, the Buyer must,
within 45 days after 31 March 1999, pay the Seller by bank cheque
issued in Australia by an Australian bank an amount equal to 10%
of the Revenue referred to in clause 3.6(a) but subject to the
maximum amount payable under this clause being $1,000,000.
(c) As soon as possible after 1 April 1999, the Buyer must:
(1) calculate the Revenue of the Continuing Business for the
period from 1 April 1998 to 31 March 1999 in accordance with
the Accounting Standards; and
(2) notify the Seller in writing of such calculation including
particulars of the Revenue included in such calculation. The
Seller or its agent shall have the right on reasonable
notice to inspect (and copy - at its cost and subject to
entering into any agreement reasonably required by the Buyer
to preserve the confidential nature of such information) all
relevant records of the Buyer for the purpose of satisfying
itself as to the accuracy or otherwise of the Buyer's
calculation.
(d) The Seller may, at any time within 30 days of receipt of notice
under clause 3.6(c)(2), dispute the Buyer's calculation of
the Revenue of the Continuing Business for the period from 1
April 1998 to 31 March 1999. In such case, the Seller must notify
the Buyer of the dispute and set out in
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reasonable detail the basis upon which it claims to be in
dispute, including the amount which it believes it is entitled
pursuant to clause 3.6(b). In the event that the Seller
disputes such calculation, the matter must be referred by the
Buyer and the Seller to an Independent Accountant with an
instruction that the Independent Accountant select which of the
Buyer's or the Seller's calculations is the more reasonable. The
parties must co-operate fully with the Independent Accountant and
make available to the Independent Accountant all relevant
information and documents. The Independent Accountant will act as
an expert and not an arbitrator and the decision of the
Independent Accountant will be final and binding. The cost of the
Independent Accountant shall be borne by which of the Buyer or
the Seller was the person whose calculation was not determined
the more reasonable by the Independent Accountant.
3.7 SECOND PERFORMANCE TARGET - ADDITIONAL CONSIDERATION
(a) The Second Performance Target will be achieved if the Revenue of
the Continuing Business for the period from 1 April 1999 to 31
March 2000 is not less than $6,750,000.
(b) If the Second Performance Target is achieved, the Buyer must,
within 45 days after 31 March 2000 pay to the Seller by bank
cheque issued in Australia by an Australian bank an amount equal
to 10% of the Revenue referred to in clause 3.7(a) but subject
to a maximum amount payable under this clause being $1,000,000.
(c) As soon as possible after 1 April 2000, the Buyer must:
(1) calculate the Revenue of the Continuing Business for the
period from 1 April 1999 to 31 March 2000 in accordance with
the Accounting Standards; and
(2) notify the Seller in writing of such calculation including
particulars of the Revenue included in such calculation. The
Seller or its agent shall have the right on reasonable
notice to inspect (and copy - at its cost and subject to
entering into any agreement reasonably required by the Buyer
to preserve the confidential nature of such information) all
relevant records of the Buyer for the purpose of satisfying
itself as to the accuracy or otherwise of the Buyer's
calculation.
(d) The Seller may, at any time within 30 days of receipt of notice
under clause 3.7(c)(2), dispute the Buyer's calculation of
the Revenue of the Continuing Business for the period from 1
April 1999 to 31 March 2000. In such case, the Seller must notify
the Buyer of the dispute and set out in reasonable detail the
basis upon which it claims to be in dispute, including the amount
which it believes it is entitled pursuant to clause 3.7(b). In
the event that the Seller disputes such calculation, the matter
must be referred by the Buyer and the Seller to an Independent
Accountant with an instruction that the Independent Accountant
select which of the Buyer's or the Seller's calculations is the
more reasonable. The parties must co-operate fully with the
Independent Accountant and make available to the
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Independent Accountant all relevant information and documents.
The Independent Accountant will act as an expert and not an
arbitrator and the decision of the Independent Accountant will be
final and binding. The cost of the Independent Accountant shall
be borne by which of the Seller or the Buyer was the person whose
calculation was not determined to be the more reasonable by the
Independent Accountant.
3.8 FAI CONTRACT
(a) The Seller and the Buyer agree that the value of the FAI Contract
at the Purchase Date shall be deemed $911,112.
(b) If the Seller delivers a Client Novation Agreement in respect of
the FAI Contract by Settlement, the Buyer shall add $911,112 to
the Initial Purchase Price and payment shall be made accordingly.
(c) For each of the twelve months commencing the Purchase Date (but
subject to (b) above) the Buyer shall pay the Seller an amount
calculated as follows:
Monthly Amount = P x $82.11 x 26.9%
Where P means the hours worked and billed (whether to FAI or any
other client forming part of the Continuing Business) in respect
of the FAI People during that month.
(d) The amount payable under (c) shall be paid on the first to occur
of:
(1) the payment by FAI or the client in respect of the services
rendered by the FAI People, or
(2) 45 days after the end of the month in respect of which the
FAI People were billed.
Payments received in (1) from different clients at different
times shall cause the monthly payment to be pro-rated
accordingly.
(e) If during the 12 months after the Purchase Date the Seller
delivers to the Buyer a Client Novation Agreement duly executed
by FAI, the Buyer shall pay the Seller an amount equal to
$911,112 less the amount actually received by the Seller for each
month elapsed calculated in accordance with clause 3.8(c).
Payment shall occur only in respect of a complete month and
within 10 Business Days after the end of the month in which the
Client Novation Agreement was delivered to the Buyer.
(f) Until a Client Novation Agreement is duly executed by FAI and
delivered to the Buyer, the Seller agrees that it shall continue
to perform all terms and conditions of the FAI Contract by
procuring that all services to be performed thereunder shall be
performed solely by the Buyer. The Buyer shall provide such of
the FAI People as are either Transferring Employees or
Transferring Contractors. In the event that any of the FAI People
are not either a Transferring Employee or Transferring
Contractor, or in the event of the termination of employment or
contract of any of the FAI People, the Seller and the Buyer shall
identify and employ, engage or reassign (as the case may be)
other mutually satisfactory people to make up the shortfall.
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In the event the Buyer and Seller cannot agree a person, the
Buyer's nomination shall prevail.
(g) The Seller shall invoice FAI for all services rendered in
accordance with the FAI Contract in a timely manner. All monies
paid by FAI shall be payable to the Buyer and shall be paid by
the Seller on the next Business Day after receipt.
(h) Provided that the Buyer receives a Client Novation Agreement duly
executed by FAI the Buyer shall pay interest to the Seller on the
principal outstanding on the $911,112. Interest shall be
calculated at the rate of 5% pa, payable on the monthly balance
outstanding, non compounding and payable 5 Business Days after
the end of the month in which the Seller delivers to the Buyer
the Client Novation Agreement duly executed by FAI.
(i) The Seller shall not communicate with FAI on any aspect of the
FAI Contract and the Seller's performance thereof without the
prior consent of the Buyer. To the extent permitted under the FAI
Contract, the Seller shall allow the Buyer all management and
control of the performance of the FAI Contract.
(j) For the purposes of this clause 3.8, the Buyer shall be deemed to
have received a Client Novation Agreement, duly executed by FAI,
if it enters into a contract with FAI in replacement of the FAI
Contract.
3.9 SALE OF CONTINUING BUSINESS
The Buyer undertakes and agrees that in the event that prior to 1
April 2000 it proposes to sell, transfer or otherwise dispose (Sale)
of the Continuing Business or any part thereof to any person
(Transferee) it may only do so if a term of any such Sale is that the
Transferee must undertake (in terms reasonably satisfactory to the
Seller) the obligation outstanding at the time of such Sale of the
Buyer pursuant to clauses 3.6 and 3.7. This restriction on Sale shall
not apply if either:
(a) at the time of the Sale the Key Contracts of any 3 or more of the
Key Contractors have been terminated; or
(b) at the time of the Sale the then current revenue forecasts and
budgets of the Buyer and the Revenue earned for the relevant
period are such that it is reasonably unlikely that either the
First Performance Target or the Second Performance Target will be
achieved; or
(c) the First Performance Target was not achieved.
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4 SETTLEMENT STATEMENT
4.1 SETTLEMENT STATEMENT
(a) The Seller must prepare a draft of the Settlement Statement
promptly after the Purchase Date and at least 5 Business Days
before the Settlement Date.
(b) The Settlement Statement must set out, as at the Purchase Date:
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(1) the value of the Business Assets; and
(2) the value of the SSD Business at $1,500,000;
(3) the value of the Computer Equipment at its written down
value in the books of the Seller as at the Purchase Date;
and
(4) the Receivables.
(c) The Buyer and the Seller must allocate the Initial Purchase Price
among the Business Assets (excluding Computer Equipment) as soon
as possible and no later than 5 Business Days after receipt of
the first draft by the Buyer. If the Buyer and Seller do not
agree on the value of an item with the period described, the
value shall be determined by an independent accountant agreed by
the Buyer and the Seller. The cost of such accountant shall be
borne equally.
(d) The Settlement Statement will be final and binding on the
parties.
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5 PAYMENTS IN ADVANCE OR ARREARS
5.1 ADVANCE PAYMENTS
On the Settlement Date:
(a) the Buyer must account to the Seller for:
(1) any payments in advance made by the Seller for goods or
services to be supplied to the Business in the ordinary
course of ordinary business after the Purchase Date to the
benefit of the Buyer; and
(2) any other payments in advance made by the Seller in respect
of the Business in the ordinary course of ordinary business,
the benefit of which is received by the Business after the
Purchase Date; and
(b) the Seller must account to the Buyer for any payments in advance
received by the Seller for goods or services to be supplied in
respect of the Business after the Purchase Date.
5.2 ARREARS PAYMENTS
If the Buyer makes:
(a) any payment in arrears for goods or services supplied to the
Business before the Purchase Date; and
(b) any other payment in arrears in respect of the Business where the
benefit was received by the Business before the Purchase Date,
the Seller must reimburse the Buyer within 2 Business Days after the
Seller receives evidence of payment.
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6 RECEIVABLES
Collection by Buyer
(a) The Seller is entitled to the Receivables but, subject to clause
6.5, must not attempt to collect them.
(b) The Buyer must use its best endeavours to expedite collection on
behalf of the Seller of those Receivables specified in the
Settlement Statement.
(c) Nothing in clause 6.1(b) requires the Buyer to institute
proceedings to recover any Receivable or to expedite collection
of any receivable not specified in the Settlement Statement.
6.2 ACCOUNTING FOR RECEIVABLES
The Buyer must account to the Seller for payment of the Receivables as
follows:
(a) any amount received by the Buyer in payment of, or which is
readily reconcilable with, specific Receivables or debts to the
Buyer must be treated as a payment of those Receivables or debts
to the Buyer (as the case may be); and
(b) any amount received by the Buyer in payment of amounts which may
include Receivables where:
(1) the debtor owes separate debts to the Buyer; and
(2) where the amount paid is not identified by the debtor as a
payment of, or is not readily reconcilable with, specific
Receivables or specific debts to the Buyer,
must be applied as follows and in the following order:
(3) first, Receivables outstanding for not more than 90 days
before the date of payment and those which have been
outstanding the longest within that 90 day period must be
paid before the others;
(4) second, the debts referred to in clause 6.2(b)(1) and
those which have been outstanding the longest must be paid
before the others; and
(5) third, Receivables which have been owed by the debtor for
more than 90 days before the date of payment and those which
have been outstanding the longest must be paid before the
others.
6.3 WRITTEN ACCOUNT AND PAYMENT
(a) On the first day of the month after the month in which the
Settlement Date falls and after that on the first day of each
month the Buyer must provide to the Seller a written account of
the collection of the Receivables.
(b) Immediately upon receipt by the Buyer of any Receivables payable
to the Seller, the Buyer must pay the amount received to the
Seller.
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6.4 BUYER TO PROVIDE INFORMATION
The Buyer must provide to the Seller any information in relation to
the collection of the Receivables which the Seller reasonably
requests.
6.5 SELLER'S RESPONSIBILITY
The Seller is solely responsible for the collection of any Receivable
not collected within 3 months after the Purchase Date.
6.6 SELLER TO ACCOUNT TO BUYER
Any moneys which the Seller receives from a Client in relation to
services carried out by the Buyer after the Purchase Date (or from any
other person for any other reason) must be immediately paid to the
Buyer.
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7 PROPERTY LEASES
7.1 TRANSFER OF PROPERTY LEASES
(a) On or as soon as possible after the Purchase Date but before the
Settlement Date, the Seller must transfer the Property Leases, at
the Buyer's option either by assignment or by novation in a form
reasonably acceptable to the Buyer.
(b) If the consent of a third party is required for an assignment or
novation under clause 7.1(a), then the Seller must obtain that
consent.
(c) If the method of transfer selected by the Buyer under clause
7.1(a) is not possible, then the Seller must effect the
transfer by the method not selected.
7.2 RIGHT OF OCCUPATION PENDING TRANSFER OF PROPERTY LEASES
(a) If a Property Lease has not been transferred to the Buyer by the
Purchase Date the Seller must:
(1) allow the Buyer to occupy the property the subject of that
Property Lease as licensee from the Purchase Date until the
transfer is completed;
(2) take any action necessary to ensure that the Property Lease
is transferred in accordance with this agreement as soon as
reasonably practicable after the Purchase Date;
(3) indemnify the Buyer in respect of any claim, action, damage,
loss, liability, cost, charge, expense, outgoing or payment
which the Buyer pays, suffers, incurs or is liable for, by
reason of any matter or thing in respect of any of the
following:
(A) any breach of the Property Lease including, but not
limited to, any breach arising from the Buyer being
permitted to use or occupy the property before any
necessary consents have been obtained or formalised; or
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(B) any relocation or disruption to the Buyer's business or
any other consequence suffered because the Buyer has
had to relinquish or vacate the property as a result of
any action on the part of the lessor.
(b) Clause 7.2(a)(3) does not apply if the breach is due to any
act or default of the Buyer in relation to obligations which it
can lawfully perform under the Property Lease.
(c) Subject to clause 7.2(a)(3), the Buyer must:
(1) to the extent it lawfully can, perform at its expense all
the obligations of the Seller under the Property Lease; and
(2) indemnify the Seller against all losses, costs, payments,
liabilities, charges, outgoings and expenses incurred after
the Buyer has taken over performance of the Property Lease
and as a result of any act or default of the Buyer in
discharging the Seller's obligations under the Property
Lease.
7.3 CLAIMS BY THIRD PARTIES
If any person is required to make a payment under a Property Lease the
benefit of which accrues to the Buyer under this agreement and that
person claims or exercises any right of set-off or counterclaim in
respect of anything done or not done by the Seller before the later
of:
(a) the Purchase Date; or
(b) the assignment or novation of that Contract or Property Lease in
accordance with this agreement,
then the Seller must immediately on demand pay as the Buyer directs
the difference between the payment which would have been received had
the right of set-off or counterclaim not been exercised and the
payment actually received.
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8 EMPLOYEES AND CONTRACTORS
8.1 OFFER OF EMPLOYMENT BY BUYER
(a) On or as soon as practicable after the date of this agreement,
but before the Purchase Date, the Buyer must offer in writing in
terms of annexure H to employ the Employees with effect from the
Purchase Date, on terms and conditions of employment as
favourable as those disclosed to the Buyer as their current terms
and conditions.
(b) The Buyer must state in its offer of employment and in any
contract arising from acceptance of that offer that the offer is
to be effective on the Purchase Date.
(c) SSD shall use its best efforts to procure by the Purchase Date
acceptance of the Buyer's offers of employment.
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(d) If an Employee advises SSD that he accepts the Buyer's offer of
employment, SSD must immediately advise the Buyer of the
acceptance.
8.2 TERMINATION BY SSD
(a) On the Purchase Date SSD must:
(1) release the Transferring Employees from employment with SSD,
that release to take effect at the Purchase Date;
(2) pay the Transferring Employees any entitlement to wages,
salaries, remuneration, compensation or benefits arising out
of their employment, due to or accrued by them at the
Purchase Date;
(3) procure that Nordrana Pty Limited releases Renee MacKenzie
and Tiffany Hellyer from employment with Nordrana Pty
Limited, that release to take effect at the Purchase Date;
and
(4) procure that Nordrana Pty Limited pays Renee MacKenzie and
Tiffany Hellyer the entitlements described in (2) above.
(b) Clause 8.2(a)(2) and (4) does not apply to annual leave,
leave loading or long service leave but does apply to sick leave.
8.3 NON-TRANSFERRING EMPLOYEES
SSD is solely responsible for the wages, salaries, annual leave, leave
loading, long service leave, sick leave and any other remuneration,
compensation or benefits (including any entitlement to severance or
redundancy payments) of those Employees who do not accept the Buyer's
offer of employment, arising out of their employment or the
termination of their employment, whether under any agreement, statute,
industrial award or in any other way, provided however, if an Employee
accepts the Buyer's offer of employment after the Purchase Date and
before the Settlement Date, SSD must release that Employee and pay
that Employee as described in clause 8.2 by the Settlement date which
shall be effective as at the Purchase Date. Any such Employee shall be
deemed by the parties as employed by the Buyer as at the Purchase
Date. This provision applies, mutatis mutandis, to the employees
described in (8.2)(a)(3).
8.4 ALLOWANCES
At the Settlement Date, SSD must pay and must procure that Nordrana
Pty Limited pays in the case of Renee MacKenzie and Tiffany Hellyer to
the Buyer by bank cheque an amount equal to the monetary value of:
(a) the annual leave and leave loading accrued by the Transferring
Employees as at the Purchase Date; and
(b) 64% of (being the after tax amount) the long service leave for
periods of service of accrued by, or vested in, the Transferring
Employees as at the Purchase Date.
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8.5 INDEMNITY
The Buyer indemnifies SSD and Nordrana Pty Limited against any
liability to a Transferring Employee for annual leave, leave loading
or long service leave for which SSD or Nordrana Pty Limited has made a
payment to the Buyer under clause 8.4.
8.6 NOVATION OF CONTRACTORS
On or as soon as practicable after the date of this agreement, but
before the Purchase Date, the Buyer must offer in writing to the
Contractors (other than the Key Contractors) to engage the Contractors
with effect from the Purchase Date, on terms and conditions of
contract as favourable as those disclosed to the Buyer as the current
terms and conditions.
8.7 ENGAGEMENT OF CONTRACTORS BY BUYER
(a) The Buyer and SSD agree that the Buyer shall engage the
Contractors (other than the Key Contractors) to be effective on
the Purchase Date pursuant to the Contractor Novation Agreements,
which shall (subject to (b) be duly executed by SSD upon or as
soon as practicable after due execution by the Contractor. SSD
must notify the Buyer immediately a Contractor executes a
Contractor Novation Agreement.
(b) The Seller shall procure that:
(1) Nordrana Pty Limited shall duly execute Contractor Novation
Agreement in respect of the company which engages Turkel
Ahmed and Ted Smith; and
(2) Sancha Research Pty Ltd shall duly execute a Contractor
Novation Agreement in respect of Graeme Hugo;
as soon as practicable after due execution by such companies. The
Seller must notify the Buyer as soon as such execution occurs.
The Seller shall procure and deliver to the Buyer duly executed
Contractor Novation Agreements in respect of Equss People being
the company which provides the services of Hardy Tsang and Janet
Munro as soon as practicable after due execution by such company.
8.8 SSD TO PAY OUT CONTRACTORS
(a) No later than 15 March 1998, subject to (b) SSD must pay each
Transferring Contractor all moneys due or accrued to the
Contractor pursuant to the Contractor Contract as at the Purchase
Date.
(b) No later than 15 March 1998, the Seller must procure that the
company engaging Turkel Ahmed and Ted Smith, Equss People and
Sancha Research Pty Limited (in the case of Graeme Hugo) pays all
moneys due to or accrued to such company Equss People or Sancha
Research Pty Ltd pursuant to the relevant Contractor Contract as
at the Purchase Date.
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8.9 CONTRACTOR NOVATIONS AFTER THE PURCHASE DATE
If a Contractor executes a Contractor Novation Agreement after the
Purchase Date but before the Settlement Date, SSD must duly execute
the Contractor Novation Agreement. Such Contractor shall be paid out
by SSD on or by the Settlement Date as at the Purchase Date. Any such
Contractor shall be deemed by the parties as engaged by the Buyer as
at the Purchase Date. This provision shall apply, mutatis mutandis, in
relation to the Contractors described in 8.8(b).
8.10 CONTRACTORS AND EMPLOYEES VALUE
SSD and the Buyer acknowledge and agree that the acquisition of the
Employees and the Contractors by the Buyer is fundamental to the
success of the acquisition of the Business from the seller. The sale
of the SSD Business and the release by SSD of the Transferring
Employees and the Transferring Contractors pursuant to this agreement
provides the Buyer with valuable rights to employ and engage the
Transferring Employees and Transferring Contractors.
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9 SUPERANNUATION
9.1 SELLER TO MAKE PAYMENTS
Contemporaneous with the payment to Employees described in clauses
8.2 and 8.3, SSD must pay to the fund of each Employee described in
schedule 10, their superannuation entitlement to the Purchase Date.
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10 PERIOD BEFORE SETTLEMENT
10.1 CARRYING ON OF THE BUSINESS - BY THE SELLER AND SSD
(a) Notwithstanding that with effect on and from the Purchase Date
the Buyer shall assume effective control and management of the
Business, but subject to 10.1(c), the Seller hereby warrants to
the Buyer that the profit before Tax for the month of March 1998
shall be at least $300,000 (inclusive of the profit from the FAI
Contract).
(b) For the purposes of determining the profit before Tax from the
Business during March, the Seller and the Buyer agree that they
shall calculate such profit using the same accounting standards
and application as used by the Seller during each of the previous
12 months.
(c) The only derogation to warranty in clause 10.1(a) which may be
claimed by the Seller shall be if such profit is not achieved due
to any act or omission of the Buyer which is not in the ordinary
course of the Business as carried on by the Seller during the
previous 12 months.
(d) Before the Purchase Date the Seller must not:
(1) dispose of any Business Asset other than in the ordinary
course of ordinary business;
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(2) acquire any Business Asset other than in the ordinary course
of ordinary business;
(3) enter into a Material Contract;
(e) Before the Purchase Date, SSD must not employ any new person,
terminate any Employee, change any term of employment or provide
any bonus to any Employee.
(f) Before the Purchase Date the Seller and SSD must not do, or omit
to do, or allow to happen, anything which would make any Warranty
false, misleading or incorrect when made or regarded as made
under this agreement (except to the extent disclosed on the
Disclosure Letter).
(g) An obligation contained in clause 10.1 or a limitation contained
in clause 10.1(d) does not apply if the Buyer has given its
prior written consent to the Seller in respect of a failure to
comply with that obligation or limitation.
10.2 FURTHER PERFORMANCE BY SELLER
Between the Purchase Date and the Settlement Date, until such time as
the Buyer receives a Client Novation Agreement duly executed by a
Client the Seller agrees that it shall continue to perform under the
direction and control of the Buyer all terms and conditions of the
relevant Client Contract in order to preserve the maximum economic
benefit thereunder to the Buyer. The Buyer agrees to provide the
Seller with such Transferring Employees and Transferring Contractors
as the Seller shall reasonably require to perform such terms and
conditions. All expenses incurred in such performance and all revenues
and profit derived therefrom shall be for the account of the Buyer.
10.3 ACCESS
Before the Purchase Date the Seller and SSD must:
(a) allow the Buyer, and any person authorised by the Buyer,
reasonable access during normal business hours to inspect the
Business Assets and the Business Records and SSD Business Records
and the Properties; and
(b) promptly provide the Buyer with all explanations and information
it requests in respect of the Business, the Business Assets, the
Properties and (in the case of SSD) the SSD Business and the
Employees and Contractors.
10.4 CARRYING ON OF THE BUSINESS - BY THE BUYER
Before the Settlement Date the Buyer must not:
(a) dispose of any Business Asset other than in the ordinary course
of ordinary business;
(b) acquire any Business Asset other than in the ordinary course of
ordinary business;
(c) enter into any Material Contract
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without the consent of the Seller.
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11 PURCHASE DATE AND SETTLEMENT
11.1 DATE FOR SETTLEMENT
Subject to clause 18, Settlement must take place at the office of
Messrs Freehill Hollingdale & Page, Level 38, MLC Centre, Martin
Place, Sydney at noon on 31 March 1998 unless the Seller has on not
less than 5 Business Days prior notice notified the Buyer of a
proposed Settlement Date between 15 March and 31 March 1998 in which
case the date so notified shall be the Settlement Date.
11.2 Delivery of documents at Purchase Date
Subject to clause 11.3, on the Purchase Date, the Seller must give to
the Buyer the following documents executed by the Seller:
(a) Client Novation Agreements duly executed by each Client (except
FAI and Telstra Corporation Limited) and the Seller;
(b) assignments or novations of the Property Leases in a form and
substance acceptable to the Buyer;
(c) assignment of the Trade Marks, in the form of annexure J;
(d) assignment of the Copyright in the form of annexure K;
(e) completed forms necessary for the Seller and any Related Body
Corporate of the Seller (other than Sancha Pty Limited) to change
its name in accordance with clause 13.1; and
(f) any other document reasonably required by the Buyer to transfer
the Business Assets to the Buyer and to complete the sale under
this agreement.
11.3 DELIVERY OF DOCUMENTS ON THE SETTLEMENT DATE
At Settlement, the Seller must give to the Buyer those documents
described in clause 11.2(a) which it was unable to deliver as at the
Purchase Date.
11.4 DELIVERY OF TANGIBLE ASSETS
The Seller must deliver the Tangible Assets to the Buyer on the
Purchase Date.
11.5 DELIVERY OF BUSINESS RECORDS AND DOCUMENTS OF TITLE
On the Purchase Date, the Seller must give to the Buyer:
(a) executed and, where applicable, stamped and registered originals
of the Property Leases;
(b) registration certificates and other documents of title for the
Trade Marks;
(c) full and complete Business Records (other than Excluded Records);
and
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(d) any other document reasonably required by the Buyer to evidence
the title of the Seller to the Business Assets.
11.6 DELIVERY OF DOCUMENTS EXECUTED BY SSD
Subject to clause 11.7, on the Purchase Date, SSD must give to the
Buyer the following documents executed by SSD:
(a) all Contractor Novation Agreements duly executed by the
Transferring Contractors;
(b) full and complete SSD Business Records (other than Excluded
Records);
(c) any other document reasonably required by the Buyer to evidence
the terms and conditions of the employment of the Employees or
the engagement of the Contractors.
11.7 FURTHER DELIVERY OF DOCUMENTS
At Settlement, the Seller must deliver to the Buyer those documents
described in clause 11.6(a), which had not been duly executed by the
Transferring Contractors by the Purchase Date.
11.8 BUYER'S OBLIGATIONS AT SETTLEMENT
Subject to the Seller's performance of its obligations under clauses
11.2, 11.3, 11.4 and 11.5 SSD's performance of its obligations under
clauses 11.6 and 11.7 and subject to clause 18, at Settlement the
Buyer must:
(a) deliver to the Seller counterparts, executed by the Buyer, of
those documents listed in clauses 11.2, 11.3, 11.6 and 11.7 that
are to be executed by the Buyer; and
(b) comply with its obligations under clause 3.3 and 3.4.
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12 TITLE AND RISK
12.1 TITLE
Title to the Business Assets passes to the Buyer on Settlement Date.
12.2 RISK
Risk in the Business Assets passes to the Buyer on the Purchase Date.
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13 CHANGE OF NAMES
13.1 CHANGE OF COMPANY NAME
On Settlement or at any time thereafter, if requested by the Buyer,
the Seller must change its name and the name of any Related Body
Corporate other than Sancha Pty Ltd (ACN 001 405 278) to a name that
does not include the word "Sancha" or
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any similar words resembling, or likely to be mistaken for or confused
with, the word "Sancha". Notwithstanding that the Buyer may not have
requested the name change described above, the Seller and any such
Related Body Corporate must not use the word "Sancha" in any business
similar to the Business unless expressly authorised to do so by the
Buyer.
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14 CONTINUING COOPERATION
14.1 CARRYING ON OF BUSINESS
For 3 months after the Purchase Date, the Seller must (at the cost of
the Seller) use its best endeavours to make available to the Buyer the
information necessary to acquaint the Buyer with the manner in which
the Business was conducted in the 3 calendar years preceding the
Purchase Date.
14.2 TRADE CONNECTIONS
For 3 months after the Purchase Date, the Seller must (at the cost of
the Seller) use its best endeavours to introduce representatives of
the Buyer to suppliers and customers of the Business and to encourage
them to maintain their level of trade with the Business.
14.3 CUSTOMER ENQUIRIES
After the Purchase Date the Seller must:
(a) promptly and at its own cost refer to the Buyer any enquiry made
to it in respect of the Business; and
(b) not refer any enquiry referred to in clause 14.3(a) to any
person other than the Buyer.
14.4 DOCUMENTS TO BE AVAILABLE AFTER THE PURCHASE DATE
As soon as possible after the Purchase Date the Seller and SSD (in the
case of the Contractor Contracts) must notify the Buyer of:
(a) any assignments, novations or consents to the assignment or
novation of the Client Contracts, Contractor Contracts and the
Property Leases obtained by the Seller or SSD, when they become
available to the Seller or SSD;
(b) access to invoice originals and detailed debtors' statements in
respect of the Receivables reasonably necessary for the Buyer to
collect them and account under clause 6; and
(c) all other documents in respect of the Business which the Buyer
requests and will reasonably need in order to carry on the
Business or to comply with its obligations under this agreement.
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14.5 CONTINUING ACCESS TO EXCLUDED RECORDS
After Settlement the Seller and SSD must, after reasonable notice from
the Buyer, give the Buyer access to the Excluded Records. The Seller
and SSD shall on the Purchase Date deliver a copy of all Excluded
Records to the Buyer.
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15 AFTER SALES SERVICE
15.1 SUPPLY OF AFTER-SALES SERVICE
(a) After the Purchase Date, the Buyer may, but is not obliged to:
(1) remedy any defect in the services supplied by the Seller in
the Business before the Purchase Date;
(2) supply after-sales service which the Seller undertook to
perform in respect of services supplied by the Seller in the
Business before the Purchase Date; and
(3) perform the obligations which the Seller undertook to
perform under any guarantee or warranty given in respect of
services supplied by the Seller in the Business before
Settlement.
(b) If the Buyer chooses to remedy any defect or supply any service
or perform any obligation referred to in clause 15.1(a)
provided:
(1) the Buyer has first consulted with the Seller regarding the
matter including the Buyer's proposed action in the matter;
(2) the Buyer only provides such remedy, supply or performance
which the Seller undertook to perform to the customer;
(3) the proposed remedy, supply or performance is to commence
within 12 months after the Purchase Date; and
(4) the payment sought by the Buyer will not exceed (when
aggregated with all prior payments under this clause
15.1(b)) $100,000,
the Seller must (unless the Buyer has been paid by the customer
for such remedy, supply or performance) pay the Buyer for the
cost of remedying the defect or supplying the service or
performing the obligation within 10 Business Days after a demand
by the Buyer for payment.
(c) Clause 15.1(b) shall not apply in relation to the HBF Contract
unless the amount retained thereunder by the Client (including
any amounts still owing to the Seller by the Client for software
licence fees) is less than the amount which the Seller would be
liable to pay to the Seller under 15.1(b) if that clause
applied.
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16 COMPETITION
16.1 UNDERTAKINGS
The Seller must not do, and must ensure that none of its Related
Corporations does, any of the following without first obtaining the
written consent of the Buyer:
(a) directly or indirectly carry on (whether alone or in partnership
or joint venture with anyone else) or otherwise be concerned with
or interested in (whether as trustee, principal, agent,
shareholder, unit holder or in any other capacity) any business
similar to or competitive with the Business:
(1) in New South Wales, Victoria or Western Australia for 3
years after Completion;
(2) in New South Wales, Victoria or Western Australia for 2
years after Completion;
(3) in New South Wales, Victoria or Western Australia for 1 year
after Completion;
(b) solicit or persuade any person or corporation which is a customer
or client of the Buyer, or who was in the 12 month period before
the Purchase Date a customer or client of or in respect of the
Business, to cease doing business with the Buyer as purchaser of
the Business or reduce the amount of business which the customer
or client would normally do in respect of the Business:
(1) for 3 years after the Purchase Date;
(2) for 2 years after the Purchase Date;
(3) for 1 year after the Purchase Date;
(c) accept from a customer or client referred to in clause 16.1(b)
any business of the kind ordinarily forming part of the Business:
(1) for 3 years after the Purchase Date;
(2) for 2 years after the Purchase Date;
(3) for 1 year after the Purchase Date;
(d) at any time use or disclose to any third party any trade secrets,
product information or confidential information of the Business
which is not generally known or available in the market place or
which but for a breach of this clause 16.1(d) would not be
generally known or available in the market place; or
(e) at any time induce or attempt to induce any person who is at the
time of Completion or who later becomes an employee of the Buyer
in the Business to terminate his or her employment with the
Buyer.
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16.2 SEPARATE UNDERTAKINGS
If any part of an undertaking in clause 16.1 is unenforceable, it may
be severed without affecting the remaining enforceability of that or
the other undertakings.
16.3 VALUE OF THE BUSINESS
The Seller agrees that:
(a) any failure to comply with clause 16.1 would diminish the value
of the Business Assets; and
(b) the restrictive undertakings in clause 16.1 are reasonable and
necessary for the protection of the Business Assets and must be
given full effect.
16.4 LEGAL ADVICE
The Seller and SSD acknowledge that in relation to this agreement and
in particular this clause 16 they have received legal advice.
16.5 INJUNCTION
The Seller and SSD acknowledge that monetary damages alone would not
be adequate compensation to the Buyer for the Seller's or SSD's breach
of clause 16.1 and that the Buyer is entitled to seek an injunction
from a court of competent jurisdiction if:
(a) the Seller fails to comply or threatens to fail to comply with
clause 16.1; or
(b) the Buyer has reason to believe the Seller and SSD will not
comply with clause 16.1.
16.6 SURVIVAL OF OBLIGATIONS
The Seller's and SSD's obligations under this clause 16 survive the
Settlement of this agreement.
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17 WARRANTIES AND GENERAL INDEMNITIES
17.1 GIVING OF WARRANTIES
(a) Subject only to clear and specific qualifications made in the
Disclosure Letter, the Seller and SSD gives the Warranties in
favour of the Buyer:
(1) as at the date of this agreement;
(2) as at the Purchase Date;
(3) for each day up to Settlement; and
(4) as at Settlement.
(b) In entering this agreement, the Buyer has relied on the
Warranties given by the Seller and SSD.
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17.2 BUYER'S INVESTIGATION
Any investigation (whether before or after the date of this agreement)
made by or for the Buyer in respect of the Business or a Business
Asset or the Employees or Contractors does not affect either:
(a) the Warranties; or
(b) the rights, powers, authorities or discretions of the Buyer if a
Warranty is not true or correct or is misleading.
17.3 INDEPENDENT WARRANTIES
Each Warranty is to be construed independently and is not limited by
reference to any other Warranty.
17.4 INDEMNITY
The Seller indemnifies the Buyer in respect of any claim, action,
damage, loss, liability, cost, charge, expense, outgoing or payment
which the Buyer pays, suffers, incurs or is liable for, by reason of
any matter or thing in respect of any of the following:
(a) any matter or thing in respect of the Business being other than
as represented or warranted in this agreement; and
(b) any breach by the Seller of this agreement.
17.5 MINIMUM CLAIM UNDER WARRANTIES
The Buyer shall not be entitled to claim any compensation for any
breach of Warranty unless the amount claimed for a breach of a
Warranty exceeds $10,000.
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18 RESCISSION AND DAMAGES
18.1 RIGHT OF BUYER TO RESCIND
(a) If at any time up to Settlement:
(1) the Seller materially breaches this agreement; or
(2) any Warranty is or becomes false, misleading or incorrect
when made or regarded as made under this agreement (except
to the extent disclosed in the Disclosure Letter) and the
damage reasonably foreseeable from such fact may exceed
$10,000; or
(3) a material adverse change occurs affecting the Business, the
Business Assets or the financial or trading position or
prospects of the Business;
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then the Buyer may, by giving written notice to the Seller before
or at Settlement, elect to:
(4) complete this agreement but without prejudice to any rights
and remedies it may have as a result of any matter described
in 18.1(a)(1) and (2); or
(5) delay for a period of one month Settlement to determine
whether any of the matters referred to in clauses
18.1(a)(1), (2) or (3), are remedied or cured within
that period (in which case the Settlement Date shall be
deemed to mean the expiry of that one month period); or
(6) terminate this agreement and the Business, the Business
Assets, the Employees and Contractors and all other
incidents of the property, people and things acquired by the
Buyer pursuant to this agreement to the Seller or SSD (as
the case may be, according to the Business and the SSD
Business) shall revert to the Seller and SSD as an offset
against the Buyer's payment and any other obligations on
Settlement. Any such reversion shall be a complete discharge
of all liabilities between the parties arising from this
agreement, as if the acquisition on the Purchase Date had
never taken place.
(b) In the event that Settlement has not taken place by 30 April 1998
the Seller or the Buyer may make the election described in clause
18.1(a)(6).
18.2 CONDITION - FOREIGN INVESTMENT REVIEW BOARD APPROVAL
Settlement will not proceed unless:
(a) a notice in writing is issued by or on behalf of the Treasurer of
the Commonwealth of Australia stating that the Commonwealth
Government does not object to the Buyer and the Sellers entering
into and completing this agreement, either unconditionally or on
terms reasonably acceptable to the Buyer; or
(b) the Treasurer of the Commonwealth of Australia becomes precluded
from making an order in respect of the acquisition of the
Business and the Business Assets under the Foreign Acquisitions
and Takeovers Act 1975 (Cth).
18.3 WAIVER
The condition for Settlement in clause 18.2 may be waived only by the
Buyer.
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19 DUTIES, COSTS AND EXPENSES
19.1 DUTIES
The Buyer must pay any Duty in respect of the execution, delivery and
performance of:
(a) this agreement; and
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(b) any agreement or document entered into or signed under this
agreement,
except that the Seller must pay any Duty in respect of the transfer
described in clause 18.1(a)(6).
19.2 COSTS AND EXPENSES
Subject to clause 19.1, each party must pay its own costs and expenses
in respect of the negotiation, preparation, execution, delivery,
stamping and registration of this agreement and any other agreement or
document described in clause 19.1(b).
19.3 COSTS OF PERFORMANCE
Any action to be taken by the Buyer or the Seller in performing its
obligations under this agreement must be taken at its own cost and
expense unless otherwise provided in this agreement.
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20 GENERAL
20.1 NOTICES
(a) Any notice or other communication including, but not limited to,
any request, demand, consent or approval, to or by a party to
this agreement:
(1) must be in legible writing and in English addressed as shown
below:
(A) if to the Seller or SSD:
Address: 30A Marlborough Place
St Ives, New South Wales
Attention: Mr C Shuetrim
Facsimile: 9488 7862;
(B) if to the Buyer:
Address: 99 Walker Street
North Sydney, 2060
Attention: Mr J Bildner
Facsimile: 9510 0061;
with a copy to: Tier Technologies, Inc
Address: 1350 Treat Boulevard
Suite 250
Walnut Creek
California 94596
Attention: Chief Executive Officer
Facsimile: (510) 937 3752;
(2) where the sender is a company, must be signed by an Officer
or under the common seal of the sender;
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(3) is regarded as being given by the sender and received by the
addressee:
(A) if by delivery in person, when delivered to the
addressee;
(B) if by post, 3 Business Days from and including the date
of postage; or
(C) if by facsimile transmission, whether or not legibly
received, when transmitted to the addressee,
but if the delivery or receipt is on a day which is not a
Business Day or is after 4:00 pm (addressee's time) it is
regarded as received at 9:00 am on the following Business
Day; and
(b) A facsimile transmission is regarded as legible unless the
addressee telephones the sender within 2 hours after the
transmission is received or regarded as received under clause
20.1(a)(3) and informs the sender that it is not legible.
(c) In this clause 20.1, a reference to an addressee includes a
reference to an addressee's Officers, agents or employees.
20.2 GOVERNING LAW AND JURISDICTION
(a) This agreement is governed by the laws of New South Wales.
(b) Each party irrevocably submits to the exclusive jurisdiction of
the courts of New South Wales.
20.3 WAIVERS
(a) Waiver of any right, power, authority, discretion or remedy
arising upon a breach of or default under this agreement must be
in writing and signed by the party granting the waiver.
(b) A failure or delay in exercise, or partial exercise, of a right,
power, authority, discretion or remedy arising from a breach of
or default under this agreement, does not result in a waiver of
that right, power, authority, discretion or remedy.
(c) A party is not entitled to rely on a delay in the exercise or
non-exercise of a right, power, authority, discretion or remedy
arising from a breach of this agreement or default under this
agreement as constituting a waiver of that right, power,
authority, discretion or remedy.
(d) A party may not rely on any conduct of another party as a defence
to exercise of a right, power, authority, discretion or remedy by
that other party.
(e) This clause may not itself be waived except in writing.
20.4 VARIATION
A variation of any term of this agreement must be in writing and
signed by the parties.
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20.5 CUMULATIVE RIGHTS
The rights, powers, authorities, discretions and remedies of a party
under this agreement do not exclude any other right, power, authority,
discretion or remedy.
20.6 NON-MERGER AND SURVIVAL OF WARRANTIES
(a) Neither the Warranties nor any other provision of this agreement
merges on Settlement.
(b) The Warranties survive Settlement of this agreement.
20.7 CONTINUING INDEMNITIES AND SURVIVAL OF INDEMNITIES
(a) Each indemnity of the Seller contained in this agreement is a
continuing obligation of the Seller despite:
(1) any settlement of account; or
(2) the occurrence of any other thing,
and remains in full force and effect until all money owing,
contingently or otherwise, under any indemnity has been paid in
full.
(b) Each indemnity of the Seller contained in this agreement:
(1) is an additional, separate and independent obligation of the
Seller and no one indemnity limits the generality of any
other indemnity; and
(2) survives the termination of this agreement.
20.8 FURTHER ASSURANCES
Each party must do all things necessary to give full effect to this
agreement and the transactions contemplated by this agreement.
20.9 SPECIFIC PERFORMANCE
The Seller acknowledges that monetary damages alone would not be
adequate compensation to the Buyer for the Seller's breach of its
obligations under this agreement and that accordingly specific
performance of those obligations is an appropriate remedy.
20.10 ENTIRE AGREEMENT
(a) This agreement supersedes all previous agreements in respect of
its subject matter and embodies the entire agreement between the
parties.
(b) The Buyer acknowledges that no representations or warranties in
connection with the sale of the Business or the Business Assets
have been made by the Seller or anyone on behalf of the Seller
other than the Warranties.
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20.11 THIRD PARTY RIGHTS
No person (including, but not limited to, an Employee or Contractor)
other than the Buyer, the Seller and SSD has or is intended to have
any right, power or remedy or derives or is intended to derive any
benefit under this agreement.
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SCHEDULE 1- WARRANTIES
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PART A
Warranties of the Seller
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1 CLIENT CONTRACTS
1.1 The Seller will provide Client Novation Agreements duly executed by
the Seller and each applicable Client by the Settlement Date in
respect of all Client Contracts other than the FAI Contract and the
Client Contract with Telstra Corporation Limited.
1.2 The Client Contracts are all duly executed, enforceable and valid and
binding in accordance with their terms.
1.3 The terms and conditions of each Client Contract is wholly contained
in the Client Contracts comprising annexure A.
1.4 No event has occurred, and the Seller is unaware of any act, matter or
thing (including non performance thereof) which might reasonably be
expected to cause a Client Contract to be varied or terminated.
1.5 All Clients are properly described in schedule 2.
1.6 There are no Client Contracts or other contracts, arrangements or
understandings which, if performed by the Buyer in accordance with
their terms, will result in the costs associated with such performance
exceeding the revenue generated therefrom.
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2 EMPLOYEES, CONTRACTORS AND KEY CONTRACTORS
2.1 EMPLOYEES AND CONTRACTORS
The Seller will procure that substantially all:
(a) the Employees will accept the offers of employment described in
clause 8.1; and
(b) the Contractors (excluding the Key Contractors) will duly execute
Contractor Novation Agreements as described in clause 8.6,
by the Settlement Date.
2.2 KEY CONTRACTORS
The Seller will procure that the Key Contractors will duly execute
their respective Key Contracts by the Settlement Date.
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3 AUTHORITY
3.1 SELLER AUTHORISED
The Seller has taken all necessary action to authorise the execution,
delivery and performance of this agreement in accordance with its
terms.
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3.2 POWER TO SELL
The Seller has full power to enter into and perform its obligations under
this agreement (including, but not limited to, selling the Business
Assets) and can do so without the consent of any other person (except
for consents required under the Contracts, the Assets Leases and the
Property Leases) and free of any pre-emptive rights or rights of first
refusal.
3.3 NO LEGAL IMPEDIMENT
The execution, delivery and performance by the Seller of this agreement
comply with:
(a) each law, regulation, Authorisation, ruling, judgment, order or
decree of any Governmental Agency;
(b) the memorandum and articles of association or other constituent
documents of the Seller;
(c) any Encumbrance or document which is binding on the Seller or any
of the Business Assets; and
(d) the Sancha Unit Trust Deed.
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4 ACCURACY OF INFORMATION
4.1 INFORMATION ACCURATE
All information given by or on behalf of the Seller or its advisers to the
Buyer or its advisers in respect of the sale of the Business is
accurate and complete and not misleading.
4.2 SCHEDULES AND DISCLOSURE LETTER
The information in the schedules and the Disclosure Letter is accurate and
complete and not misleading.
4.3 FORECASTS REASONABLE
All forecasts and projections in respect of the Business given by or on
behalf of the Seller or its advisers to the Buyer or its advisers are
reasonable and have been prepared with due care and on a reasonable
basis.
4.4 MATERIAL INFORMATION DISCLOSED
All information which is material to a buyer for value of the Business has
been fully and specifically disclosed in writing to the Buyer.
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5 CONDUCT OF BUSINESS
5.1 LOCATION
The Business is carried on only at the Properties.
5.2 COMPLIANCE WITH LAW
The conduct of the Business and the ownership and use of the Business
Assets by the Seller complies with all applicable laws.
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5.3 CONDUCT AND PRACTICES
The Seller only engages in conduct or practices in respect of the Business
which comply with all applicable laws (including, but not limited to,
any consumer protection, fair trading, restrictive trade practices or
anti-trust legislation).
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6 ACCOUNTS
6.1 BASIS OF PREPARATION
The Accounts:
(a) have been prepared in accordance with the Accounting Standards;
(b) show a true and fair view of the financial position and the
assets and liabilities of the Business at the accounts Date and
of the income, expenses and results of the operations of the
Business for the financial period ended on the Accounts date;
(c) are not affected by any unusual or non-recurring item;
(d) take account of all gains or losses, whether realised or
unrealised, arising from foreign currency transactions;
(e) including all liabilities of the Business at the Accounts Date;
and
(f) set out all contingent liabilities of the Business at the
Accounts Date.
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7 POSITION SINCE ACCOUNTS DATE
Since the Accounts Date:
(a) the Business has been conducted in the ordinary course of
ordinary business and in a proper and efficient manner;
(b) the Seller has not disposed of any Business Assets except in the
ordinary course of ordinary business;
(c) the Seller has not acquired any Business Asset except in the
ordinary course of ordinary business; and
(d) there has been no material adverse change affecting the Business,
the Business Assets or the financial or trading position or
prosects of the Business.
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8 TITLE
8.1 SELLER'S TITLE
The Seller is the legal owner, as sole trustee of the Sancha Computer
Services Unit Trust, of the Business Assets free of Encumbrances and
other third party interests or rights.
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8.2 BUSINESS ASSETS
The Business Assets are:
(a) fully paid for;
(b) in the possession of the Seller;
(c) used solely for the purposes of the Business;
(d) the only assets used in the Business;
(e) the only assets required for the proper and efficient conduct of
the Business; and
(f) not surplus to the requirements of the Business;
8.3 ENCUMBRANCES
The Seller has not granted or created, or agreed to grant or create, any
Encumbrances in respect of the Business Assets.
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9 TANGIBLE ASSETS
9.1 TANGIBLE ASSETS
The Tangible Assets are:
(a) in good repair and condition having regard to their age;
(b) in satisfactory working order;
(c) capable of doing the work for which they are designed; and
(d) recorded in the books of the Business.
9.2 CONFORMITY WITH DESCRIPTION
The Tangible Assets conform with all applicable descriptions,
specifications and standards.
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10 INTELLECTUAL PROPERTY RIGHTS
10.1 OWNERSHIP
The Seller owns or has a lawful right to use all the Intellectual Property
Rights.
10.2 NO THIRD PARTY RIGHTS
No person other than the Seller has any right to, or may benefit from, any
Intellectual Property Right.
10.3 NO INFRINGEMENT
No Intellectual Property Right breaches or may breach, infringes or may
infringe against, any industrial or intellectual or other property
right of any other person.
10.4 REGISTRATION
All Intellectual Property Rights which are either capable of registration
or required to be registered in the Seller's name are registered in
the Seller's name.
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10.5 DISCLOSURE
Any disclosure made to any person of any industrial know-how or financial
or trade secrets of the Business was made in the ordinary course of
ordinary business and subject to a binding confidentiality undertaking
in favour of the Seller, details of which have been disclosed to the
Buyer.
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11 BUSINESS NAMES
11.1 NO THIRD PARTY RIGHTS
The Seller does not conduct the Business under any name other than its
corporate name.
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12 PROPERTY LEASES
12.1 NATURE
The Property Leases:
(a) are within the ordinary course of ordinary business of the
Business; and
(b) are on arm's length terms.
12.2 FOREIGN CURRENCY TRANSACTIONS
No Property Lease requires a payment in or calculated by reference to an
amount of foreign currency.
12.3 NO RESTRICTIVE COVENANTS
No Property Lease restricts the freedom of the Seller, or when assigned or
novated under this agreement will restrict the freedom of the Buyer,
to engage in any activity or business in any area.
12.4 CHANGE OF CONTROL
No party to any Property Lease is entitled or likely, as a result of a
change in ownership of the Business or the Business Assets:
(a) to terminate the Property Lease;
(b) to refuse to consent to the assignment or novation of the
Property Lease to the Buyer; or
(c) to require the adoption of terms which are less favourable to the
Buyer than the current terms.
12.5 NO DEFAULT
No party to any Property Lease is in breach of or default under it or would
be in breach or default but for a requirement of notice or lapse of
time, or both.
12.6 NO NOTICES
The Seller has not received any notice which might affect any rights of the
Buyer or the exercise of any rights by the Buyer in respect of any
Property Lease after it is transferred to the Buyer.
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13 MATERIAL CONTRACTS
Schedule 11 contains a list of all Material Contracts in respect of the
Business.
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14 OFFERS OUTSTANDING
14.1 OFFERS OUTSTANDING
Any offer, tender or quotation made by the Seller in respect of the
Business which is outstanding and capable of acceptance by a third
party, was made in the ordinary course of ordinary business of the
Business.
14.2 MATERIAL OFFERS
Any outstanding offer, tender or quotation which, if accepted, could give
rise to a Material Contract is listed in schedule 11.
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15 SHAREHOLDINGS AND MEMBERSHIPS
15.1 SHAREHOLDINGS
The Seller is not the holder or beneficial owner of any shares or other
securities in any company in respect of the Business or which forms or
carries on any part of the Business.
15.2 MEMBERSHIPS
The Seller is not a member of any joint venture, partnership or
unincorporated association (other than a recognised trade association)
in respect of the Business.
15.3 SANCHA GROUP
No company which is a Related Body Corporate of the Seller or in which a
Director or shareholder of Seller is an Officer or shareholder carries
on any business competitive with the Business.
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16 EMPLOYEES
16.1 NO EMPLOYEES
The Seller does not employ any people in the Business or engage any
consultants for the provision of services to the Business other than
the procurement of people and Contractors from SSD.
16.2 PEOPLE FROM SSD
None of the people or Contractors procured from SSD are employees of the
Seller (for any purpose).
page 41
<PAGE>
- --------------------------------------------------------------------------------
17 SUPERANNUATION
The Seller has no obligations to make any payments in the nature of or
associated with superannuation.
- --------------------------------------------------------------------------------
18 AUTHORISATIONS
18.1 AUTHORISATIONS OBTAINED
There are no Authorisations required to conduct the Business and to own and
operate the Business Assets.
- --------------------------------------------------------------------------------
19 LITIGATION
19.1 SELLER NOT A PARTY TO ANY LITIGATION
The Seller is not, nor has it in the last two years been:
(a) a party to any prosecution, litigation or arbitration proceedings
in respect of the Business, the Business Assets or the
Properties; or
(b) subject to any administrative or governmental investigation in
respect of the Business, the Business Assets or the Properties.
19.2 NO LITIGATION PENDING OR THREATENED
No prosecution, litigation, proceeding or investigation referred to in
Warranty 19.1 is pending or threatened.
19.3 NO CIRCUMSTANCES
There are no circumstances which might give rise to any prosecution,
litigation, proceeding or investigation referred to in Warranty 19.1.
- --------------------------------------------------------------------------------
20 SOLVENCY
20.1 NO LIQUIDATION OR WINDING-UP
The Seller has not gone into liquidation nor passed a winding-up resolution
nor received a notice under sections 572 or 573 of the Corporations
Law.
20.2 NO PETITION
No petition or other process for winding-up has been presented or
threatened against the Seller and there are no circumstances
justifying such a petition or other process.
20.3 NO WRIT OF EXECUTION
No writ of execution has issued against the Seller or any property of the
Seller and there are no circumstances justifying such a writ.
page 42
<PAGE>
20.4 NO RECEIVER
No receiver or receiver and manager of any part of the undertaking or
assets of the Seller has been appointed or is threatened or expected
to be appointed and there are no circumstances justifying such an
appointment.
- --------------------------------------------------------------------------------
21 RECORDS
All the Business Records:
(a) are up-to-date;
(b) have been fully and accurately maintained;
(c) comply with all legal requirements; and
(d) are in the possession or under the control of the Seller and
located at the Properties.
- --------------------------------------------------------------------------------
22 TAXES AND DUTIES
Any Tax or Duty payable in respect of any Business Asset including, but not
limited to, each Client Contract and Property Lease has been paid.
- --------------------------------------------------------------------------------
PART B
Warranties of SSD
- --------------------------------------------------------------------------------
1 EMPLOYEES
1.1 LIST OF EMPLOYEES COMPLETE
Schedule 4 contains a complete list of the employees of SSD employed in the
SSD Business and an accurate statement of their entitlement at the
date of this agreement to wages, salaries, annual leave and leave
loading, long service leave, sick leave and any other remuneration,
compensation or benefits.
1.2 EXCLUSIVE EMPLOYMENT
Each Employee is employed exclusively in the SSD Business.
1.3 PAYMENTS MADE
SSD has paid all amounts due to the Employees.
1.4 NO INCREASES PROMISED
SSD has not given any commitment (whether legally binding or not) to
increase or supplement the wages, salaries, annual leave and leave
loading, long service leave, sick leave or any other remuneration,
compensation or benefits of any Employee beyond the amounts and
entitlements listed in schedule 4.
page 43
<PAGE>
1.5 TERMINATION
The employment of each Employee can be lawfully terminated on 3 months'
notice or less without payment of any damages or compensation,
including any severance or redundancy payments.
1.6 INCENTIVE SCHEMES
SSD has not agreed to any share incentive scheme, share option scheme,
bonus scheme, profit-sharing scheme or other employee incentive scheme
in respect of the Business or with any Employee.
1.7 SERVICE AGREEMENTS
SSD is not a party to any written employment or service agreement with any
Employee.
1.8 MANAGEMENT AGREEMENTS
SSD does not have any agreement, arrangement or understanding with any
person for the provision of consulting or management services in
respect of the Business other than the Contractors.
1.9 INDUSTRIAL DISPUTES
SSD has not been involved in any material industrial dispute with any
Employees at any time within the 5 years preceding the date of this
agreement and the Seller does not know of any circumstances likely to
give rise to any material industrial dispute.
1.10 COMPLIANCE
SSD has complied with its obligations under any agreement, statute,
industrial award or code of conduct in respect of the Employees.
1.11 EMPLOYEE RECORDS
SSD has maintained adequate and suitable records regarding the service of
each Employee.
- --------------------------------------------------------------------------------
2 CONTRACTORS
2.1 LIST OF CONTRACTORS COMPLETE
Schedule 5 contains a complete list of the Contractors of SSD engaged in
the SSD Business and an accurate statement of their entitlement at the
date of this agreement to their compensation or benefits.
2.2 EXCLUSIVE EMPLOYMENT
Each Contractor is employed exclusively in the SSD Business.
2.3 PAYMENTS MADE
SSD has paid all amounts due to the Contractors.
page 44
<PAGE>
2.4 NO INCREASES PROMISES
SSD has not given any commitment (whether legally binding or not) to
increase of supplement the compensation or benefits of any Contractor
beyond the amounts and entitlements listed in schedule 5.
2.5 TERMINATION
The engagement of each Contractor can be lawfully terminated in accordance
with the term of the Contractor Contract.
2.6 INCENTIVE SCHEMES
SSD has not agreed to any share incentive scheme, share option scheme,
bonus scheme, profit-sharing scheme or other incentive scheme in
respect of the Business or with any Contractor.
2.7 MANAGEMENT AGREEMENTS
SSD does not have any agreement, arrangement or understanding with any
person for the provision of consulting or management services in
respect of the Business other than the Contractors.
2.8 CONTRACTOR RECORDS
SSD has maintained adequate and suitable records regarding the service of
each Contractor.
2.9 The terms and conditions upon which each of the Contractors is engaged
by SSD is as described in their respective Contractor Contracts.
2.10 Each of the Contractor Contracts is duly executed, valid, binding and
enforceable in accordance with its terms.
2.11 The Contractors are all the Contractors used by SSD for the provision
of services to the Seller.
2.12 Each of the Contractors is an independent contractor and not an
employee (for any purpose) of SSD or the Seller.
- --------------------------------------------------------------------------------
3 SUPERANNUATION
3.1 SSD does not own, control or maintain any fund to which superannuation
contributions are made on behalf of any Employees.
3.2 All Superannuation contributions made on behalf of Employees are to
the funds described in schedule 10.
3.3 SSD has satisfied its obligations described in 3.2 on a timely basis.
3.4 Except for the obligations described in 3.2 and pursuant to the
Superannuation Guarantee (Administration) Act, 1992, SSD is not under
any present legal liability or voluntary commitment (whether or not
legally binding) to pay to any person, any pension, superannuation,
allowance, retirement, gratuity or like benefits or any damages or
compensation for loss of office or employment or for unfair or
wrongful dismissal.
page 45
<PAGE>
4 UNIONS
4.1 AGREEMENTS
SSD is not a party to any agreement with a union or industrial organisation
in respect of the Employees.
4.2 AWARDS
No industrial awards or agreements apply to any Employee.
- --------------------------------------------------------------------------------
5 LITIGATION
5.1 SSD NOT A PARTY TO ANY LITIGATION
SSD is not, nor has it in the last two years been:
(a) a party to any prosecution, litigation or arbitration proceedings
in respect of the SSD Business (including the status of Employees
and Contractors); or
(b) subject to any administrative or governmental investigation in
respect of the SSD Business.
5.2 NO LITIGATION PENDING OR THREATENED
No prosecution, litigation, proceeding or investigation referred to in
Warranty 5.1 is pending or threatened.
5.3 NO CIRCUMSTANCES
There are no circumstances which might give rise to any prosecution,
litigation, proceeding or investigation referred to in Warranty 5.1.
- --------------------------------------------------------------------------------
6 RECORDS
All the SSD Business Records:
(a) are up-to-date;
(b) have been fully and accurately maintained;
(c) comply with all legal requirements; and
(d) are in the possession or under the control of the Seller and
located at the Properties.
page 46
<PAGE>
SCHEDULE 2 - CLIENT CONTRACTS
<TABLE>
<CAPTION>
CUSTOMER PROJECT CONTRACT/ CONTRACT NAME
WO NUMBER
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Australian Unity Gen. Insurance Sys N/A Proposal
- -----------------------------------------------------------------------------------------
FAI Interim Agreement
- -----------------------------------------------------------------------------------------
Fortis Professional Services N/A Agreement
- -----------------------------------------------------------------------------------------
FORGE Projects WO#10 Work Order
- -----------------------------------------------------------------------------------------
FORGE Projects WO#11 Work Order
- -----------------------------------------------------------------------------------------
Year 2000 Rectification WO#12 Work Order
- -----------------------------------------------------------------------------------------
Year 2000 Rectification WO#13 Work Order
- -----------------------------------------------------------------------------------------
SRP Licence Agreement N/A Agreement
- -----------------------------------------------------------------------------------------
General & Cologne RE App, Dev, Maint etc N/A Prof. Serv.
- -----------------------------------------------------------------------------------------
HBF Gap Analysis WO#1A Work Order
- -----------------------------------------------------------------------------------------
MQ Series Construct WO#2A Work Order
- -----------------------------------------------------------------------------------------
Data Conversion WO#3 Work Order
- -----------------------------------------------------------------------------------------
Interim Construct WO#4 Work Order
- -----------------------------------------------------------------------------------------
Interim DB2 WO#5 Work Order
- -----------------------------------------------------------------------------------------
WO#6 - #26 Services Agree
- -----------------------------------------------------------------------------------------
Licence Agreement #977001 Lic Agree
- -----------------------------------------------------------------------------------------
AEGIS Lic Agreement N/A Lic Agree
- -----------------------------------------------------------------------------------------
HIH Winterthur Brokerlink HIH:01 Work Order
- -----------------------------------------------------------------------------------------
Services Agreement N/A Agreement
- -----------------------------------------------------------------------------------------
INS Consulting Services N/A Proposals
- -----------------------------------------------------------------------------------------
Mercantile Mutual Polisy & Brokerlink MERC:01 Work Order
- -----------------------------------------------------------------------------------------
Policy & Brokerlink MERC:02 Work Order
- -----------------------------------------------------------------------------------------
MMI Brokerlink N/A Proposal
- -----------------------------------------------------------------------------------------
IDEAS Conversion Proj
- -----------------------------------------------------------------------------------------
WCPS #6 Work Order
- -----------------------------------------------------------------------------------------
WCPS #7 Work Order
- -----------------------------------------------------------------------------------------
RSA LMI
- -----------------------------------------------------------------------------------------
Claims: Sys Dev N/A Proposal
- -----------------------------------------------------------------------------------------
FIX2000
- -----------------------------------------------------------------------------------------
FIX2000 Project Mngt N/A Proposal
- -----------------------------------------------------------------------------------------
Testing Methodology N/A Proposal
- -----------------------------------------------------------------------------------------
Broker Division DW N/A Proposal
- -----------------------------------------------------------------------------------------
Telstra C&C FOH SISP N/A Proposal
- -----------------------------------------------------------------------------------------
C&C FOH SISP #301848 T&M RFP
- -----------------------------------------------------------------------------------------
3M MQ Series & Pilot N/A Proposal
- -----------------------------------------------------------------------------------------
</TABLE>
page 47
<PAGE>
- -------------------------------------------------------------------------------
SCHEDULE 3 - CONTRACTS
page 48
<PAGE>
SCHEDULE 4 - EMPLOYEES
<TABLE>
<CAPTION>
NAME POSITION COMMENCEMENT WAGES/SALARY ACCRUED ACCRUED ACCRUED SICK LEAVE OTHER REMUNERATION,
DATE ANNUAL LONG AND LEAVE LOADING COMPENSATION OR
LEAVE SERVICE SERVICE LEAVE
<S> <C> <C> <C> <C> <C> <C> <C>
BENEFITS
- -----------------------------------------------------------------------------------------------------------------------------------
Susan Aburrow
- -----------------------------------------------------------------------------------------------------------------------------------
Margaret Cullity
- -----------------------------------------------------------------------------------------------------------------------------------
Bernard Cunningham
- -----------------------------------------------------------------------------------------------------------------------------------
Ross Edwards
- -----------------------------------------------------------------------------------------------------------------------------------
Jeff Giorgiutti 09/02/98
- -----------------------------------------------------------------------------------------------------------------------------------
Greg Halliday
- -----------------------------------------------------------------------------------------------------------------------------------
Randal Halligan
- -----------------------------------------------------------------------------------------------------------------------------------
John Hepburn
- -----------------------------------------------------------------------------------------------------------------------------------
Warren Hillier 09/02/98
- -----------------------------------------------------------------------------------------------------------------------------------
Dean Jones
- -----------------------------------------------------------------------------------------------------------------------------------
Vivian Kershaw
- -----------------------------------------------------------------------------------------------------------------------------------
Ben Lo
- -----------------------------------------------------------------------------------------------------------------------------------
Eugene McKay
- -----------------------------------------------------------------------------------------------------------------------------------
Les Palmer
- -----------------------------------------------------------------------------------------------------------------------------------
Hiie Pank
- -----------------------------------------------------------------------------------------------------------------------------------
Andrew Peattie
- -----------------------------------------------------------------------------------------------------------------------------------
Kate Richardson
- -----------------------------------------------------------------------------------------------------------------------------------
Christopher Sang
- -----------------------------------------------------------------------------------------------------------------------------------
Vidya Shastri
- -----------------------------------------------------------------------------------------------------------------------------------
Louise Smith
- -----------------------------------------------------------------------------------------------------------------------------------
Ross Stephens
- -----------------------------------------------------------------------------------------------------------------------------------
Michael Stephens 02/03/98
- -----------------------------------------------------------------------------------------------------------------------------------
Janice Stokes
- -----------------------------------------------------------------------------------------------------------------------------------
James Stormon
- -----------------------------------------------------------------------------------------------------------------------------------
Sam Ton
- -----------------------------------------------------------------------------------------------------------------------------------
Ute Veling
- -----------------------------------------------------------------------------------------------------------------------------------
Gary Whitton
- -----------------------------------------------------------------------------------------------------------------------------------
Patrick Ian Whormsley 11/08/97
- -----------------------------------------------------------------------------------------------------------------------------------
Ian Williams
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
page 49
<PAGE>
SCHEDULE 5 - Contractors
<TABLE>
<CAPTION>
NAME PRIMARY CONTACT COMMENCEMENT DATE TERM (MONTHS) COMMENTS
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nordrana P/L John Rozier
- ------------------------------------------------------------------------------------------------------
Shatten P/L Allen Shatten
- ------------------------------------------------------------------------------------------------------
Sancha P/L Charlie Shuetrim
- ------------------------------------------------------------------------------------------------------
Julian Midwinter & Associates P/L Mark Midwinter
- ------------------------------------------------------------------------------------------------------
Canson P/L (via Nordrana) Turkel Ahmed
- ------------------------------------------------------------------------------------------------------
L Bamber Systems P/L Liz Bamber
- ------------------------------------------------------------------------------------------------------
Marcham Consulting P/L Philippa Barrett
- ------------------------------------------------------------------------------------------------------
Rob Beaumont Consulting P/L Rob Beaumont
- ------------------------------------------------------------------------------------------------------
Diamondcast P/L Paul Blackburn
- ------------------------------------------------------------------------------------------------------
Hismar Holdings P/L June Bradley
- ------------------------------------------------------------------------------------------------------
Alange P/L Alan Colborne
- ------------------------------------------------------------------------------------------------------
Farvel Holdings P/L Janice Eldershaw
- ------------------------------------------------------------------------------------------------------
Data Processing Recruitment (Agency) Joanne Elliot
- ------------------------------------------------------------------------------------------------------
Sherlock Software (Agency) David Evans
- ------------------------------------------------------------------------------------------------------
MDG Software P/L Michael Gardner
- ------------------------------------------------------------------------------------------------------
Infocraft P/L Judy Ginsburg
- ------------------------------------------------------------------------------------------------------
Nibobo P/L Philip Golamco
- ------------------------------------------------------------------------------------------------------
Hoistcourt P/L Roslyn Harris
- ------------------------------------------------------------------------------------------------------
Morliss - Umber Contracts Ltd Stephen Henshaw
- ------------------------------------------------------------------------------------------------------
Geoffrey Howard Consulting P/L Geoff Howard
- ------------------------------------------------------------------------------------------------------
John Galt P/L (Agency) James Howison
- ------------------------------------------------------------------------------------------------------
Lansvale P/L David Huang
- ------------------------------------------------------------------------------------------------------
Austcorp No 270 P/L Graeme Hugo
- ------------------------------------------------------------------------------------------------------
Lawand Holdings P/L Michelle Lawand
- ------------------------------------------------------------------------------------------------------
Lawand Holdings P/L Toufic Lawand
- ------------------------------------------------------------------------------------------------------
Tilmara P/L Shaheen Malik
- ------------------------------------------------------------------------------------------------------
Idoweb P/L Jim Mewes
- ------------------------------------------------------------------------------------------------------
MH Systems P/L Tony Mooney
- ------------------------------------------------------------------------------------------------------
Equss People Janet Munro
- ------------------------------------------------------------------------------------------------------
Coffsoft P/L Garry Nelson
- ------------------------------------------------------------------------------------------------------
IT Resources (Agency) Cindy Noe
- ------------------------------------------------------------------------------------------------------
Anlon P/L Zoran Novicic
- ------------------------------------------------------------------------------------------------------
Hamerfand P/L John Pratt
- ------------------------------------------------------------------------------------------------------
Pegasus Computing Services P/L Steve Rapley
- ------------------------------------------------------------------------------------------------------
DC/DB Information Systems P/L Alain Ruffin
- ------------------------------------------------------------------------------------------------------
HADP Consulting P/L Paul Sloan
- ------------------------------------------------------------------------------------------------------
Triffid Systems P/L (Via Nordrana) Ted Smith
- ------------------------------------------------------------------------------------------------------
Unigaze P/L Helge Solberg
- ------------------------------------------------------------------------------------------------------
Candle Australia (Agency) Dennis Thomas
- ------------------------------------------------------------------------------------------------------
John Galt P/L (Agency) Hau Tran
- ------------------------------------------------------------------------------------------------------
Equus People (Agency) Hardy Tsang
- ------------------------------------------------------------------------------------------------------
Huddleston P/L Karl Tuckfeld
- ------------------------------------------------------------------------------------------------------
Hasspan P/L John Urruzmendi
- ------------------------------------------------------------------------------------------------------
Martins Vieira Int Trade P/L Jose Vieira
- ------------------------------------------------------------------------------------------------------
Wise People P/L Marina Valugani
- ------------------------------------------------------------------------------------------------------
Bengem P/L Bill Watkins
- ------------------------------------------------------------------------------------------------------
Brolga Consulting Australia Pty Limited Janet Healey
- ------------------------------------------------------------------------------------------------------
</TABLE>
page 50
<PAGE>
SCHEDULE 6 - LEASEHOLD PROPERTIES
CLAUSE 0 (DEFINITIONS)
<TABLE>
<CAPTION>
PROPERTY LEASES
- ----------------------------------------------------------------------------------------------------------------------
Office DATE LESSOR ANNUAL RENT OUTGOINGS EXPIRY DATE RENEWAL OPTIONS
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Suite 4 09/10/97 Business Executive Suites 08/04/98
Level 20 Pty Limited, ACN 003 961 760
99 Walker Street
North Sydney
- ----------------------------------------------------------------------------------------------------------------------
2. Suite 5 01/01/98 Business Executive Suites 31/12/98
Level 20 Pty Limited, ACN 003 961 760
99 Walker Street
North Sydney
- ----------------------------------------------------------------------------------------------------------------------
3. Suite 2 14/01/98 Business Executive Suites 13/04/98
Level 5 Pty Limited, ACN 003 961 760
99 Walker Street and Rancham Pty Limited, ACN
North Sydney 054 755 387
- ----------------------------------------------------------------------------------------------------------------------
4. Residential 31.12.97 K. Dupays $1,300 p.m. 16/12/98
31A Robinson
Terrace
- -----------------------
Dalglish
- -----------------------
Perth, WA
- -----------------------
</TABLE>
page 51
<PAGE>
- --------------------------------------------------------------------------------
SCHEDULE 7 - INTELLECTUAL PROPERTY RIGHTS
<TABLE>
<CAPTION>
CLAUSE 1.1 (DEFINITIONS)
<S> <C> <C>
1. Trade Marks
Number Class Trade Mark
727,695 42 SANCHA
727,686 42 THE WAY AHEAD
728,849 42 SANCHA - THE WAY AHEAD & Device
</TABLE>
2. COPYRIGHT
SRP Assembler Subroutine programs:
<TABLE>
<CAPTION>
PROGRAM Comment
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPBEGN SRP Driver Environment Setup Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPCMEX SRP data compression Routine
- -----------------------------------------------------------------------------------------------------------------
SRPCMRD SRP Compare Routine (SRPCMPR) Generic File I/O Routine
- -----------------------------------------------------------------------------------------------------------------
SRPDBU1 SRPDBMS Utility Module
- -----------------------------------------------------------------------------------------------------------------
SRPDBU2 SRPDBMS Utility Module
- -----------------------------------------------------------------------------------------------------------------
SRPEASY SRP Easytrieve Exit - Calls SRPCMEX to Decompress Data
- -----------------------------------------------------------------------------------------------------------------
SRPJINS Assemble SRP JCL Parameter Insertion Module
- -----------------------------------------------------------------------------------------------------------------
SRPPARS Assemble SRP Parse Routine
- -----------------------------------------------------------------------------------------------------------------
SRPPNCO SRP Terminal Data Stream Compression Routine
- -----------------------------------------------------------------------------------------------------------------
SRPPOST SRP ECB Posting Routine
- -----------------------------------------------------------------------------------------------------------------
SRPPPTD Update CICS PPT Entries Routine
- -----------------------------------------------------------------------------------------------------------------
SRPPRT SRP Generic Batch Print I/O Routine
- -----------------------------------------------------------------------------------------------------------------
SRPSADR SRP Set Address Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSPDS Assemble SRP PDS Access Routine
- -----------------------------------------------------------------------------------------------------------------
SRPSTCK SRP Store Clock Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSTRT SRP Application Program Environment Setup Stub
- -----------------------------------------------------------------------------------------------------------------
SRPSUTL Assemble SRP Utility Functions Module
- -----------------------------------------------------------------------------------------------------------------
SRPSWLD SRP Wild Search Utility
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
SRP Cobol Subroutine programs:
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPPARM Unstring Parameter Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSDAT Date Edit and Format Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSEDT Cobol Numeric Edit Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSLDAT Date Search Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSLTRV Travelling Search Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSLVAL Value Search Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPSWRD Password Algorithm Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPUCMP Name and Address Compression Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPXFRM Convert Data to Comma Delimited Format
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 52
<PAGE>
SRP Assembler Service Module programs:
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPDBMS SRP Database Management System I/O Routine (online)
- -----------------------------------------------------------------------------------------------------------------
SRPDBM1 SRP Database Management System I/O Routine (online)
- -----------------------------------------------------------------------------------------------------------------
SRPBDBS SRP Database Management System I/O Routine (batch)
- -----------------------------------------------------------------------------------------------------------------
SRPBDB1 SRP Database Management System I/O Routine (batch)
- -----------------------------------------------------------------------------------------------------------------
SRPTABL SRP in Memory Data Table
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
SRP Batch Cobol Utility programs:
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPARC1 Source Archive Program
- -----------------------------------------------------------------------------------------------------------------
SRPARC5 Source Archive Program
- -----------------------------------------------------------------------------------------------------------------
SRPBR14 Null Program
- -----------------------------------------------------------------------------------------------------------------
SRPCMPR File Compare Batch Utility
- -----------------------------------------------------------------------------------------------------------------
SRPCOMP Compile SRP Bulk Compile JCL Generator
- -----------------------------------------------------------------------------------------------------------------
SRPCON4 Cobol Source Conversion - FUJITSU Cobol 85 to Cobol II
- -----------------------------------------------------------------------------------------------------------------
SRPCON5 Cobol Source Conversion - SRP 3.0 to SRP 4.0
- -----------------------------------------------------------------------------------------------------------------
SRPLSPL List Program Lists
- -----------------------------------------------------------------------------------------------------------------
SRPPP01 Compile Cobol Pre-Processor
- -----------------------------------------------------------------------------------------------------------------
SRPPP6 Compile Cobol Go to Program Checker
- -----------------------------------------------------------------------------------------------------------------
SRPSCMP Source Compare
- -----------------------------------------------------------------------------------------------------------------
SRPTFLD Generate SRP Field Definitions From Cobol Copybook
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Stub Modules For SRP Cobol Utility Routines (Cobol II Only):
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPDATE Date Edit and Format Stub
- -----------------------------------------------------------------------------------------------------------------
SRPNEDT Cobol Numeric Edit Stub
- -----------------------------------------------------------------------------------------------------------------
SRPSELV Value Search Stub
- -----------------------------------------------------------------------------------------------------------------
SRPSELD Date Search Stub
- -----------------------------------------------------------------------------------------------------------------
SRPSELT Travelling Search Stub
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Environment Interface Modules (drivers) and Cobol Service Module programs:
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPBDRV SRP Batch Driver
- -----------------------------------------------------------------------------------------------------------------
SRPCICI SRP Online Driver for CICS
- -----------------------------------------------------------------------------------------------------------------
SRPCIC1 SRP Terminal I/O Module
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Online/Batch Programs Using Standard SRP Compile Procedure:
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
SRPABT1 Abend Testing Routine
- -----------------------------------------------------------------------------------------------------------------
SRPABT2 Abend Testing Routine
- -----------------------------------------------------------------------------------------------------------------
SRPALFA Alpha Key Manipulation Subroutine
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 53
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPAUD1 Audit Data Detail Screen
- -----------------------------------------------------------------------------------------------------------------
SRPAUL1 Audit Data List Screen
- -----------------------------------------------------------------------------------------------------------------
SRPAUL2 Audit Data List - Batch
- -----------------------------------------------------------------------------------------------------------------
SRPAUL3 Audit Data List - Batch
- -----------------------------------------------------------------------------------------------------------------
SRPAUTH Authorisation Lookup Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPBINT Date Rollover Routine
- -----------------------------------------------------------------------------------------------------------------
SRPBMSG Send an IUCS Message - Batch
- -----------------------------------------------------------------------------------------------------------------
SRPBPRG Batch Print Purge Routine
- -----------------------------------------------------------------------------------------------------------------
SRPBPRT Batch Print Routine
- -----------------------------------------------------------------------------------------------------------------
SRPCK01 Check SRTTFLD Record Integrity
- -----------------------------------------------------------------------------------------------------------------
SRPCK02 Check SRTDATA Record Integrity
- -----------------------------------------------------------------------------------------------------------------
SRPCK03 Check SRTTFLD Record Integrity
- -----------------------------------------------------------------------------------------------------------------
SRPDK04 Check SRFWORK Record Integrity
- -----------------------------------------------------------------------------------------------------------------
SRPCM10 Check Digit Routine
- -----------------------------------------------------------------------------------------------------------------
SRPCMPQ Logical SRP Record Compare
- -----------------------------------------------------------------------------------------------------------------
SRPD01A Display Details Of Selected Terminal Stack Records
- -----------------------------------------------------------------------------------------------------------------
SRPD01B Display Details Of I-O Trace Records
- -----------------------------------------------------------------------------------------------------------------
SRPD01C Display Details Of CICS PPT Entries
- -----------------------------------------------------------------------------------------------------------------
SRPD01D Display Details Of Absolute Memory Addresses
- -----------------------------------------------------------------------------------------------------------------
SRPD01E Set the Status of SRP I-O Trace
- -----------------------------------------------------------------------------------------------------------------
SRPD02A Display Details Of SRP Screen Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD02B Display Details Of SRP Authorisation Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD02E Display Details Of SRP Screen Selection Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD02F Display Details Of SRP Error Message Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD02G Display Details Of SRP Abend Information Records
- -----------------------------------------------------------------------------------------------------------------
SRPD02H Display Details Of SRP Print Queue Control Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD02K Replicate Help Screen Utility
- -----------------------------------------------------------------------------------------------------------------
SRPD03A Display Details Of SRP User Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD04A Display Details Of SRP SRFERROR Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD04B Set the Status of SRP Trace and Breakpoint
- -----------------------------------------------------------------------------------------------------------------
SRPD04C Display Details Of SRP SRFOMSG Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD06B Display Details Of SRP Record Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD06C Display Details Of SRP Records in Character and Hexadecimal
- -----------------------------------------------------------------------------------------------------------------
SRPD06D Display Details Of SRP in Memory DBMS Statistics
- -----------------------------------------------------------------------------------------------------------------
SRPD06E Display Details Of SRP File Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD06F Display Details from SRP in Memory Table (SRPTABL)
- -----------------------------------------------------------------------------------------------------------------
SRPD06G Set the Status of SRP Statistics History Recording
- -----------------------------------------------------------------------------------------------------------------
SRPD07A Display Details Of SRP Print Queue Header Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD07B Display Details Of SRP Printer Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD08A Display Details Of SRP Print Items
- -----------------------------------------------------------------------------------------------------------------
SRPD08B Display Details Of SRP Print Items
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 54
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPD10A Display Details Of SRP Number Allocation Definitions
- -----------------------------------------------------------------------------------------------------------------
SRPD11A I.U.C.S. Message Details
- -----------------------------------------------------------------------------------------------------------------
SRPD11B I.U.C.S. Message Receiver Information
- -----------------------------------------------------------------------------------------------------------------
SRPD11C I.U.C.S. Address List Maintenance
- -----------------------------------------------------------------------------------------------------------------
SRPD11E Alpha Index Inquiry
- -----------------------------------------------------------------------------------------------------------------
SRPD13A S.L. Element Definition
- -----------------------------------------------------------------------------------------------------------------
SRPD14B S.L. Letter Fields
- -----------------------------------------------------------------------------------------------------------------
SRPD15A S.L. Summary Screen
- -----------------------------------------------------------------------------------------------------------------
SRPDATT SRP Date Routine Test Driver
- -----------------------------------------------------------------------------------------------------------------
SRPDBMT SRPDBMS Routine Test Driver
- -----------------------------------------------------------------------------------------------------------------
SRPDBST Write DBMS Statistics Record
- -----------------------------------------------------------------------------------------------------------------
SRPDEMO SRP Map Test Display
- -----------------------------------------------------------------------------------------------------------------
SRPDNAM Inquiry/Update On Name & Address Records
- -----------------------------------------------------------------------------------------------------------------
SRPDSEL List The Selections Available To a Screen
- -----------------------------------------------------------------------------------------------------------------
SRPDSL2 List The Selections Available To a Screen
- -----------------------------------------------------------------------------------------------------------------
SRPEDIT Generalised Edit Routine
- -----------------------------------------------------------------------------------------------------------------
SRPEMSG Error Message Lookup Routine
- -----------------------------------------------------------------------------------------------------------------
SRPGBOK Copybook Generator
- -----------------------------------------------------------------------------------------------------------------
SRPGINT Generic Online Application Driver
- -----------------------------------------------------------------------------------------------------------------
SRPHEDT Edit Help Screens
- -----------------------------------------------------------------------------------------------------------------
SRPHELP Display Help Screen
- -----------------------------------------------------------------------------------------------------------------
SRPHIR1 Report On Transaction History Records
- -----------------------------------------------------------------------------------------------------------------
SRPHLP2 Display Help Screen - with Search Facility
- -----------------------------------------------------------------------------------------------------------------
SRPINIT SRP Online Initialisation Program
- -----------------------------------------------------------------------------------------------------------------
SRPITRC Initiate Screen Trace Facility
- -----------------------------------------------------------------------------------------------------------------
SRPIUC1 Utility Functions For I.U.C.S.
- -----------------------------------------------------------------------------------------------------------------
SRPIUC1 Build an I.U.C.S. Message
- -----------------------------------------------------------------------------------------------------------------
SRPJCRD Edit Online Submitted JCL
- -----------------------------------------------------------------------------------------------------------------
SRPJFRM Inquiry/Update Facility On The Parameters For JCL Submission
- -----------------------------------------------------------------------------------------------------------------
SRPJSUB Submit Online JCL
- -----------------------------------------------------------------------------------------------------------------
SRPL01A List Stack Records
- -----------------------------------------------------------------------------------------------------------------
SRPL01B List Of I-O Trace Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02A List Of Screen Definition Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02B List Of SRFAUTH Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02D List Of File SRFHELP Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02E List Of SRFSCSEL Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02F List Of SRFERMSG Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02G List Of SRFABCDE Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02H List Of Form Type - Queue Control Records
- -----------------------------------------------------------------------------------------------------------------
SRPL02J List Of Available Numbers For Addition Of SRFERMSG Records
- -----------------------------------------------------------------------------------------------------------------
SRPL03A List Of All User Records - SRFUSER
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 55
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPL04A List Of Error Description Records
- -----------------------------------------------------------------------------------------------------------------
SRPL04B List Of Cobol Program Trace Records
- -----------------------------------------------------------------------------------------------------------------
SRPL04C List Of Output Message Records
- -----------------------------------------------------------------------------------------------------------------
SRPL06B List Of SRFDBDES Records
- -----------------------------------------------------------------------------------------------------------------
SRPL06C Generalised LIST OF SRP RECORDS (Unformatted)
- -----------------------------------------------------------------------------------------------------------------
SRPL06D List Database Descriptors With A Summary Of Their Activity
- -----------------------------------------------------------------------------------------------------------------
SRPL06E List Of File SRFFILE Records
- -----------------------------------------------------------------------------------------------------------------
SRPL07A List Of Queue Header Records
- -----------------------------------------------------------------------------------------------------------------
SRPL07B List Of Printer Definition Records
- -----------------------------------------------------------------------------------------------------------------
SRPL08A List Of Item Header Records
- -----------------------------------------------------------------------------------------------------------------
SRPL08B List the Print User / Form Records
- -----------------------------------------------------------------------------------------------------------------
SRPL09B LIST PRINT Items
- -----------------------------------------------------------------------------------------------------------------
SRPL10A List Number Allocation Records
- -----------------------------------------------------------------------------------------------------------------
SRPL11A List Of I.U.C.S. Message Records
- -----------------------------------------------------------------------------------------------------------------
SRPL11B List Of Addressees For A Given I.U.C.S. Message
- -----------------------------------------------------------------------------------------------------------------
SRPL11C List Of I.U.C.S. User's Listnames
- -----------------------------------------------------------------------------------------------------------------
SRPL11E Alpha Search List For Name / Name & Address Sub-System
- -----------------------------------------------------------------------------------------------------------------
SRPL14A Standard Letters - Display Letter List
- -----------------------------------------------------------------------------------------------------------------
SRPLIST General List Of SRP Records (Formatted)
- -----------------------------------------------------------------------------------------------------------------
SRPLTSK List Tasks Currently Active With A Summary Of Their Activity
- -----------------------------------------------------------------------------------------------------------------
SRPMAIN SRP Sign On Screen
- -----------------------------------------------------------------------------------------------------------------
SRPMENU Standard SRP Menu Program
- -----------------------------------------------------------------------------------------------------------------
SRPNACT SRP Null Activity Program
- -----------------------------------------------------------------------------------------------------------------
SRPNAME Name / Name & Address Utility
- -----------------------------------------------------------------------------------------------------------------
SRPNPTR Name-Pointer List For Owner Record
- -----------------------------------------------------------------------------------------------------------------
SRPNUMB Allocates Next Available Number For A Number Type
- -----------------------------------------------------------------------------------------------------------------
SRPNUMT Inquiry/Update On Number Allocation - Test Driver
- -----------------------------------------------------------------------------------------------------------------
SRPOMSG Output Message Handler
- -----------------------------------------------------------------------------------------------------------------
SRPOPRG Purge Of Requested Print Queues
- -----------------------------------------------------------------------------------------------------------------
SRPOPTR List of All Owner Keys Related To A Single Name-Id
- -----------------------------------------------------------------------------------------------------------------
SRPP01B Print I-O Trace Records For A Particular Selection Criteria
- -----------------------------------------------------------------------------------------------------------------
SRPPER1 Purge Old Performance Records
- -----------------------------------------------------------------------------------------------------------------
SRPPER2 List The Records Generated By SRPSTAT In The Online Environment
- -----------------------------------------------------------------------------------------------------------------
SRPPNC4 Convert PSAM Format Definitions To SRP Maps
- -----------------------------------------------------------------------------------------------------------------
SRPPND1 Inquiry/Update Facility On The SRFMAP Record (Header Part)
- -----------------------------------------------------------------------------------------------------------------
SRPPND2 Inquiry/Update On Screen Painter Records
- -----------------------------------------------------------------------------------------------------------------
SRPPND3 Test A Screen Created Using The SRP Painter
- -----------------------------------------------------------------------------------------------------------------
SRPPND4 Down Link to a Screen For Field Level Help - Where `?' has been Entered.
- -----------------------------------------------------------------------------------------------------------------
SRPPNL1 List of SRP Map Records
- -----------------------------------------------------------------------------------------------------------------
SRPPNT Screen Painter
- -----------------------------------------------------------------------------------------------------------------
SRPPNUT Screen Painter Utility - Decode, Encode Map
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 56
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPPRNT Build Print Q Interface
- -----------------------------------------------------------------------------------------------------------------
SRPPRT1 Print Request Screen
- -----------------------------------------------------------------------------------------------------------------
SRPPRT2 Print Of Requested Queues And/Or Items
- -----------------------------------------------------------------------------------------------------------------
SRPPRT4 Asynch Interface To SPRPRINT
- -----------------------------------------------------------------------------------------------------------------
SRPPRT5 Reads In A Sysout Print File And Rites The Printout To The SRP Print File
- -----------------------------------------------------------------------------------------------------------------
SRPPTRC SRP Program Trace/Debugging Utility Program
- -----------------------------------------------------------------------------------------------------------------
SRPRLIS Run List Program
- -----------------------------------------------------------------------------------------------------------------
SRPRUTA Record Manipulation Utility Program
- -----------------------------------------------------------------------------------------------------------------
SRPS13A Standard Letters - Field Validation
- -----------------------------------------------------------------------------------------------------------------
SRPS13B Standard Letters - DBDES/Table Validation
- -----------------------------------------------------------------------------------------------------------------
SRPS15A Standard Letters - Compose Letter And Build Document Data Stream
- -----------------------------------------------------------------------------------------------------------------
SRPS15B Standard Letters - Utility Processor
- -----------------------------------------------------------------------------------------------------------------
SRPS15C Standard Letters - Utility Processor
- -----------------------------------------------------------------------------------------------------------------
SRPS15D Standard Letters - Foreign Key Element-Name Handler
- -----------------------------------------------------------------------------------------------------------------
SRPS15E Standard Letters - Diary Handler
- -----------------------------------------------------------------------------------------------------------------
SRPSDEL Shutdown Record Delete Utility
- -----------------------------------------------------------------------------------------------------------------
SRPSHNM Alpha Search List For Name / Name & Address Sub-System
- -----------------------------------------------------------------------------------------------------------------
SRPSHRT Generate Short Alpha Keys From A Given Character String
- -----------------------------------------------------------------------------------------------------------------
SRPSTAT Report On SRP Statistics
- -----------------------------------------------------------------------------------------------------------------
SRPSTRC Screen Trace Utility Module
- -----------------------------------------------------------------------------------------------------------------
SRPTASK Initiate a Background Task
- -----------------------------------------------------------------------------------------------------------------
SRPTBLD Load Tables Into The SRPTABL Area In Memory
- -----------------------------------------------------------------------------------------------------------------
SRPTBST Save SRPTABL Statistics
- -----------------------------------------------------------------------------------------------------------------
SRPTFAM Table File Management Services
- -----------------------------------------------------------------------------------------------------------------
SRPTFD1 Inquiry/Update On TFAM Table Header Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFD2 Inquiry/Update On Field Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFD3 Inquiry/Update On Table Data Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFD4 Inquiry/Update On Table Field Rules
- -----------------------------------------------------------------------------------------------------------------
SRPTFD5 Generic Table Lookup
- -----------------------------------------------------------------------------------------------------------------
SRPTFD6 Inquiry Facility On The TFMS Activity Statistics
- -----------------------------------------------------------------------------------------------------------------
SRPTFD7 List/Maintenance Of List Screen Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFD7X List/Maintenance Of List Screen Records Subroutine
- -----------------------------------------------------------------------------------------------------------------
SRPTFD8 Validation Module
- -----------------------------------------------------------------------------------------------------------------
SRPTFD9 Field Records Utility Module
- -----------------------------------------------------------------------------------------------------------------
SRPTFDA Utility Functions For Programs That Access Field Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFDB Inquiry/Update On Field Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFL1 List Of TFAM Table Header Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFL2 General List Of Table Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFL6 List Of TFMS Table Activity
- -----------------------------------------------------------------------------------------------------------------
SRPTFL7 List Of STFLSCR Records
- -----------------------------------------------------------------------------------------------------------------
SRPTFMT Inquiry/Update On General Records
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
page 57
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
SRPTFST Save TFMS Activity Statistics
- -----------------------------------------------------------------------------------------------------------------
SRPTMD1 Inquiry/Update On SRFTMLN Template Line Records
- -----------------------------------------------------------------------------------------------------------------
SRPTMD2 Inquiry/Update On SRFTMVA Template Variables
- -----------------------------------------------------------------------------------------------------------------
SRPTMD3 Inquiry/Update Facility Document Header
- -----------------------------------------------------------------------------------------------------------------
SRPTML1 List of Document Headers
- -----------------------------------------------------------------------------------------------------------------
SRPTMUT Document Templates And Set Up Document Coordinate Records
- -----------------------------------------------------------------------------------------------------------------
SRPTRAN SRP Transaction Table Interface Module
- -----------------------------------------------------------------------------------------------------------------
SRPTRNA Inquiry/Update On SRFSYS Type `01' Records
- -----------------------------------------------------------------------------------------------------------------
SRPTRNB Inquiry/Update On SRFSYS Type `01' Records
- -----------------------------------------------------------------------------------------------------------------
SRPTRNL List Of File SRFSYS/Rectype `01'
- -----------------------------------------------------------------------------------------------------------------
SRPVDTL This Program Adds Versions
- -----------------------------------------------------------------------------------------------------------------
SRPVERS Functions Of Business Date Version Maintenance
- -----------------------------------------------------------------------------------------------------------------
SRPVLST List Business Date Versions
- -----------------------------------------------------------------------------------------------------------------
SRPWHO Where Do I Come From? - System Information
- -----------------------------------------------------------------------------------------------------------------
SRPXTRC SRP Generalised Batch Extract Program
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Diary Infrastructure Programs - Standard SRP Compile Procedure:
<TABLE>
<CAPTION>
PROGRAM COMMENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
EBP0000 Batch Loan/Reload Of Diaries
- -----------------------------------------------------------------------------------------------------------------
EBP9999 Batch Diary Driver
- -----------------------------------------------------------------------------------------------------------------
EMP0210 List Owner To Diary Pointers
- -----------------------------------------------------------------------------------------------------------------
EMP0240 Inquiry/Update On Diary Text Records
- -----------------------------------------------------------------------------------------------------------------
EMP0250 List Diary Text Records
- -----------------------------------------------------------------------------------------------------------------
EMP0260 List Diary Records
- -----------------------------------------------------------------------------------------------------------------
EMP0270 Maintain Diary Records
- -----------------------------------------------------------------------------------------------------------------
EMP0280 List Work Group To Diary Pointers
- -----------------------------------------------------------------------------------------------------------------
EMP0290 Rebuild Diaries
- -----------------------------------------------------------------------------------------------------------------
EMS0000 Diary Manager Module
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
SRP Documentation:
<TABLE>
<CAPTION>
<S> <C>
MANUAL COMMENT
- ------------------------------------------------------------------------------------------------------------------
SRP Programmers' Reference Manual SRP Version 4.0
- ------------------------------------------------------------------------------------------------------------------
SRP Programmers' Guide SRP Version 4.0 - Draft
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
SCHEDULE 8 - COMPUTER EQUIPMENT
page 58
<PAGE>
A. COMPUTER EQUIPMENT LOCATED AT NORTH SYDNEY (SUITE 4, LEVEL 20)
<TABLE>
<S> <C> <C>
1. Teco VIA Intel Pentium 166MMX, Teco Monitor, Keyboard and Mouse
(SN 9710008) ASSET NO 5
Monitor - SN: E871330670 ASSET NO 1
Mouse - SN: 74257543 ASSET NO 3
Keyboard - SN: 7DO55503386 ASSET NO 4
2. Teco VIA Intel Pentium 166MMX, Teco Monitor, Keyboard and Mouse
(SN: 9710009) ASSET NO 9
Monitor - SN: E871330677 ASSET NO 10
Mouse - SN: 74281313 ASSET NO 11
Keyboard - SN: SD055503389 ASSET NO 12
3. Teco VIA Intel Pentium 166MMX, Teco Monitor, Keyboard and Mouse
(SN: 97100010) ASSET NO 13
Monitor - SN: E871330685 ASSET NO 14
Mouse - SN: 74281549 ASSET NO 15
Keyboard - SN: SD055503382 ASSET NO 16
4. Datastar 120 MHz Pentium 100 and NEC C500 15" Colour Monitor
(SN: DS0130) ASSET NO 17
Monitor - SN: 7052700634 ASSET NO 18
Mouse - SN: LTC53203985 ASSET NO 19
Keyboard - SN: 026746 ASSET NO 20
5. Iomega 100mb Zipdrive Parallel Port
(SN: RBCH15M3LL) ASSET NO 21
6. Hewlett Packard Laserjet 4P
(SN: NLBB013560) ASSET NO 22
</TABLE>
B. COMPUTER EQUIPMENT LOCATED AT NORTH SYDNEY (SUITE 2, LEVEL 5)
<TABLE>
<S> <C> <C>
1. Datastar Pentium 166, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021756) ASSET NO 23
Monitor - SN: 7052700370 ASSET NO 24
Mouse - SN: LZA7130195 ASSET NO 25
Keyboard - SN: K6575011799S ASSET NO 26
2. Datastar Pentium 166, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021757) ASSET NO 27
Monitor - SN: 7052700097 ASSET NO 28
Mouse - SN: LZA71301981 ASSET NO 29
Keyboard - SN: K6575011794S ASSET NO 30
</TABLE>
page 59
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
3. Datastar Pentium 166, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021758) ASSET NO 31
Monitor - SN: 6043500872 ASSET NO 32
Mouse - SN: LZA71301986 ASSET NO 33
Keyboard - SN: K6575011800S ASSET NO 34
4. Datastar Pentium 166MMX, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021844) ASSET NO 35
Monitor - SN: 7062500853 ASSET NO 36
Mouse - SN: LZA64004176 ASSET NO 37
Keyboard - SN: K65761630325S ASSET NO 38
5. Datastar Pentium 166MMX, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021845) ASSET NO 39
Monitor - SN: 7062501019 ASSET NO 40
Mouse - SN: LZA64004104 ASSET NO 41
Keyboard - SN: K65761630330S ASSET NO 42
6. Datastar Pentium 166MMX, NEC C500 Monitor, Keyboard and Mouse
(SN: DS021846) ASSET NO 43
Monitor - SN: 7062500856 ASSET NO 44
Mouse - SN: LZ864004144 ASSET NO 45
Keyboard - SN: K65761630329S ASSET NO 46
7. HP Laserjet 6P Printer with HP Jet Direct Internal Combo (10 Base T Only) Multi Protocol
J2550A
(SN: SGC000641) ASSET NO 47
</TABLE>
C. COMPUTER EQUIPMENT LOCATED AT NORTH SYDNEY (SUITE 5, LEVEL 20)
<TABLE>
<C> <S> <C>
1. Hewlett Packard Laserjet 4L
(SN: USBB137124 ASSET NO 48
2. Hewlett Packard Laserjet 5P
(SN: SGFBO13920) ASSET NO 49
3. Datastar Pentium 166
(SN: DS021544) ASSET NO 50
Monitor - ACER 15" colour monitor ASSET NO 51
Mouse - SN: 92121490 ASSET NO 52
Keyboard - SN: 70530027 ASSET NO 53
4. Datastar Pentium 166 (SN: DS021545)
ASSET NO 54
Monitor - : 03C00245 ASSET NO 55
Mouse - : LZA51306184 ASSET NO 56
Keyboard - : 728141258-AT ASSET NO 57
</TABLE>
page 60
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
5. Tandberg Data Back-up Drive ASSET NO 58
6. NEC Multispin CD-ROM Reader ASSET NO 59
7. Orbit 486 33 MHz Computer (Unused Server) ASSET NO 60
8. Austin 133 MHz Pentium 133 (Unused Server) ASSET NO 61
9. Compucon 486 33 MHz Computer (Unused Server) RETURNED
10. Compaq 133 Pentium Server (Notes Server) ASSET NO 63
Monitor - 15" colour monitor ASSET NO 64
Mouse - Compaq ASSET NO 65
Keyboard - CTIGE62DJP6ZQ ASSET NO 66
11. CY Pentium 120 Server (Novell Server) ASSET NO 67
Monitor - CTX 15" colour monitor ASSET NO 68
Keyboard - 6DO0162459 ASSET NO 69
12. Teco VIA Intel Pentium 166MMX, Teco Monitor, Keyboard and Mouse
(SN: 9710007) ASSET NO 2
Monitor - SN: E871330681 ASSET NO 6
Mouse - SN: 74257552 ASSET NO 7
Keyboard - SN: 7D055503392 ASSET NO 8
</TABLE>
D. COMPUTER EQUIPMENT LOCATED AT NORTH SYDNEY (SUITE 5B, LEVEL 20)
<TABLE>
<C> <S> <C>
1. Datastar Pentium 166 (SN: DS09597)
ASSET NO 70
Monitor - Compucon 15" colour monitor ASSET NO 71
Mouse - C3K7PN9937 ASSET NO 72
Keyboard - 20261394 ASSET NO 73
2. Datastar Pentium 166 (SN: DS021622)
ASSET NO 74
Monitor - Phillips 15" colour monitor ASSET NO 75
Mouse - LTA53403542 ASSET NO 76
Keyboard - DO318 ASSET NO 77
3. Datastar Pentium 166 (SN: DS021694)
ASSET NO 78
Monitor - Tatung 15" colour monitor (SN: ASSET NO 79
62461482)
Mouse - 7066552 ASSET NO 80
Keyboard - 6B19900420 ASSET NO 81
</TABLE>
page 61
<PAGE>
<TABLE>
<CAPTION>
<C> <S> <C>
4. Pentium 133 (Window Facing, closest to the ASSET NO 82
Door) ASSET NO 83
Monitor - MTC 15" colour monitor ASSET NO 84
Mouse - ASSET NO 85
Keyboard -
5. Micton Millenia Transport XPE Laptop
(SN: 861330-0002) ASSET NO 86
(Allocated to Paul Sloan as at 24/06/97)
</TABLE>
page 62
<PAGE>
- ------------------------------------------------------------------------------
Schedule 9 - Settlement Statement
<TABLE>
<CAPTION>
<S> <C>
VALUE
- -----------------------------------------------------------------------------------
Client Contracts: New South Wales
Victoria
Western Australia
- -----------------------------------------------------------------------------------
Computer Equipment (WDV)
- -----------------------------------------------------------------------------------
Business Records
- -----------------------------------------------------------------------------------
Contracts
- -----------------------------------------------------------------------------------
Goodwill: New South Wales
Victoria
Western Australia
- -----------------------------------------------------------------------------------
Property Leases
- -----------------------------------------------------------------------------------
Trade Marks
- -----------------------------------------------------------------------------------
Copyright
- -----------------------------------------------------------------------------------
$6,650,000
- -----------------------------------------------------------------------------------
Less FAI Contract $ 911,112
- -----------------------------------------------------------------------------------
Plus SSD Business $1,500,000
- -----------------------------------------------------------------------------------
Total $7,238,888
- -----------------------------------------------------------------------------------
</TABLE>
page 63
<PAGE>
- -------------------------------------------------------------------------------
Schedule 10 - Superannuation
<TABLE>
<CAPTION>
STAFF MEMBER SUPERANNUATION FUND SALARY SACRIFICE P/A SUPER 6% P/A
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aburrow, Susan Aburrow Computer Services $3,420.00
Pty Ltd Super Fund
- -----------------------------------------------------------------------------------------------------------
Cullity, Margaret Zurich $ 1,011.96 $4,980.00
- -----------------------------------------------------------------------------------------------------------
Cunningham, Bernard Zurich $ 1,156.32 $4,920.00
- -----------------------------------------------------------------------------------------------------------
Edwards, Ross to be advised $6,390.00
- -----------------------------------------------------------------------------------------------------------
Giorguitti, Jeff AMP Multifund Super Bond $4,350.00
Personal Super
- -----------------------------------------------------------------------------------------------------------
Halliday, Greg Zurich $ 278.00 $7,500.00
- -----------------------------------------------------------------------------------------------------------
Halligan, Randal Zurich $ 3,500.04 $6,300.00
- -----------------------------------------------------------------------------------------------------------
Hepburn, John Hepburn Retirement Fund $3,960.00
- -----------------------------------------------------------------------------------------------------------
Hillier, Warren Zurich $4,350.00
- -----------------------------------------------------------------------------------------------------------
Jones, Dean Zurich $4,920.00
- -----------------------------------------------------------------------------------------------------------
Kershaw, Vivian The Kershaw NO1 $18,000.00 $3,660.00
Superannuation Fund
- -----------------------------------------------------------------------------------------------------------
Lo, Ben FAI Life $4,800.00
- -----------------------------------------------------------------------------------------------------------
McKay, Eugene Colonial Masterfund $4,530.00
- -----------------------------------------------------------------------------------------------------------
Palmer, Les AMP Society $4,260.00
- -----------------------------------------------------------------------------------------------------------
Pank, Hiie Zurich $4,200.00
- -----------------------------------------------------------------------------------------------------------
Peattie, Andrew Zurich $6,000.00
- -----------------------------------------------------------------------------------------------------------
Richardson, Kate Zurich $4,200.00
- -----------------------------------------------------------------------------------------------------------
Sang, Christopher FAI Life $5,400.00
- -----------------------------------------------------------------------------------------------------------
Shastri, Vidya AMP Society $ 1,112.50 $4,076.00
- -----------------------------------------------------------------------------------------------------------
Smith, Louise Zurich $4,500.00
- -----------------------------------------------------------------------------------------------------------
Stephens, Michael Zurich $3,000.00
- -----------------------------------------------------------------------------------------------------------
Stephens, Ross Zurich $ 6,540.00 $6,390.00
- -----------------------------------------------------------------------------------------------------------
Stokes, Janice National Flexisuper $3,060.00
- -----------------------------------------------------------------------------------------------------------
Stormon, James Zurich Australia $4,530.00
- -----------------------------------------------------------------------------------------------------------
Ton, Hoan Sam Macquarie Investment $3,420.00
Management
- -----------------------------------------------------------------------------------------------------------
Veling, Ute Zurich $ 897.60 $4,800.00
- -----------------------------------------------------------------------------------------------------------
Whitton, Gary BT Funds Management $6,000.00
- -----------------------------------------------------------------------------------------------------------
Whormsley, Ian Zurich $3,000.00
- -----------------------------------------------------------------------------------------------------------
</TABLE>
page 64
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Williams, Ian Zurich $ 650.64 $6,180.00
- -----------------------------------------------------------------------------------------------------------
</TABLE>
page 65
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- -----------------------------------------------------------------------------------
Schedule 11 - Material Contracts
The AEGIS licence agreement from FAI to the Seller
- -----------------------------------------------------------------------------------
</TABLE>
Executed as an agreement:
THE COMMON SEAL of
SANCHA COMPUTER SERVICES PTY LIMITED
is affixed to this
document:
- --------------------------- --------------------------
Secretary/Director Director
- --------------------------- ---------------------------
Name (please print) Name (please print)
THE COMMON SEAL of
SANCHA SOFTWARE DEVELOPMENT
is affixed to this
document:
- --------------------------- ---------------------------
Secretary/Director Director
- --------------------------- ---------------------------
Name (please print) Name (please print)
THE COMMON SEAL of
TIER TECHNOLOGIES (AUSTRALIA) PTY LIMITED
is affixed to this
document:
- --------------------------- ---------------------------
Secretary/Director Director
- --------------------------- ---------------------------
Name (please print) Name (please print)
page 66
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- -----------------------------------------------------------------------------------
ANNEXURE A - Client Contracts
- -----------------------------------------------------------------------------------
ANNEXURE B - Contractor Contracts
- -----------------------------------------------------------------------------------
ANNEXURE C - Employee Contracts
- -----------------------------------------------------------------------------------
ANNEXURE D - ACCOUNTS
CLAUSE 1.1 (DEFINITIONS)
- -----------------------------------------------------------------------------------
ANNEXURE E - LEASES OF FREEHOLD PROPERTIES
- -----------------------------------------------------------------------------------
ANNEXURE F - Client Novation Agreements
</TABLE>
[ON SANCHA LETTERHEAD]
Dear [NAME OF CLIENT]
As a valued client of Sancha Computer Services Pty Limited, I am writing on
behalf of Sancha to inform you that Tier Technologies (Australia) Pty Limited,
the Australian wholly owned subsidiary of Tier Technologies Inc., a listed US
technology company, has entered into an agreement to purchase Sancha's business.
This purchase is to be effective 1 March, 1998.
Tier Australia will continue to operate the business and most of Sancha's staff
and contractors will continue to be part of the business. Accordingly, there
should be little change in the way in which the services are delivered to you.
As part of the purchase, Tier Australia will, if you agree, assume all
obligations of Sancha under the Contract (described below) and perform all the
services. If you agree, as of 1 March 1998, the entire contractual relationship
shall be between you and Tier Australia. Services as of that date will be
regarded as performed by Tier Australia and you should pay Tier Australia for
all work from March 1st onwards. All work prior to March 1st will remain payable
to Sancha.
page 67
<PAGE>
If you agree to this change, would you please sign the attached copy of this
letter as indicated. Sancha will return to you a copy signed by Tier Australia
on receipt.
[DESCRIPTION OF CONTRACT]
Yours faithfully
AGREEMENT
- ---------
Agreed for and on behalf of [NAME OF CLIENT]:
_________________ ______________________ _______________
Print name Position Date
Agreed for and on behalf of Tier Technologies (Australia) Pty Limited:
_________________ ______________________ _______________
Print name Position Date
- --------------------------------------------------------------------------------
ANNEXURE G - Contractor Novation Agreements
[ON SANCHA LETTERHEAD]
Dear [NAME OF CONTRACTOR]
As a valued contractor of Sancha Software Development Pty Limited, I am writing
on behalf of Sancha to inform you that Tier Technologies (Australia) Pty
Limited, the Australian wholly owned subsidiary of Tier Technologies Inc., a
listed US technology company, has entered into an agreement to purchase Sancha's
business. This purchase is to be effective 1 March, 1998.
Tier Australia will continue to operate the business and most of Sancha's staff
and clients will continue to be part of the business. Accordingly, there should
be little change in the way in which the services are required from you.
As part of the purchase, Tier Australia will, if you agree, assume all
obligations of Sancha under the Contract (described below). If you agree, as of
1 March 1998, the entire contractual relationship shall be between you and Tier
Australia. Services provided to clients as of that date will be regarded as
performed for Tier Australia and Tier Australia will pay you for all work from
March 1st onwards. All work prior to March 1st will remain payable by Sancha.
page 2
<PAGE>
If you agree to this change, would you please sign the attached copy of this
letter as indicated. Sancha will return to you a copy signed by Tier Australia
on receipt.
[DESCRIPTION OF CONTRACT]
Yours faithfully
AGREEMENT
- ---------
Agreed for and on behalf of [NAME OF CONTRACTOR]:
_________________ ______________________ _______________
Print name Position Date
Agreed for and on behalf of Tier Technologies (Australia) Pty Limited:
_________________ ______________________ _______________
Print name Position Date
- --------------------------------------------------------------------------------
ANNEXURE H - Offer of Employment by Buyer
(CLAUSE 18.1(a))
- --------------------------------------------------------------------------------
ANNEXURE I - Assignment of Property Leases
CLAUSE 7.1 (TRANSFER OF PROPERTY LEASES)
- --------------------------------------------------------------------------------
ANNEXURE J - Assignment of Trade Marks
- --------------------------------------------------------------------------------
ANNEXURE K - ASSIGNMENT OF COPYRIGHT
- --------------------------------------------------------------------------------
ANNEXURE L - Escrow Agreement
- --------------------------------------------------------------------------------
ANNEXURE M - Key Contracts
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Clause Page
1 DEFINITIONS AND INTERPRETATION 1
1.1 Definitions 1
1.2 Interpretation 8
1.3 Business Day 9
1.4 Accounting Standards 10
2 SALE AND PURCHASE 10
2.1 Sale of Business Assets and Release of Employees and Contractors 10
2.2 Control and Management of the Business 11
3 PURCHASE PRICE 11
3.1 Purchase Price 11
3.2 Apportionment 11
3.3 Payment at Settlement 12
3.4 Delivery of Tier Share Certificate 12
3.5 Tier Shares Unencumbered 12
3.6 First Performance Target - Additional Consideration 13
3.7 Second Performance Target - Additional Consideration 13
3.8 FAI Contract 14
3.9 Sale of Continuing Business 16
4 SETTLEMENT STATEMENT 16
4.1 Settlement Statement 16
5 PAYMENTS IN ADVANCE OR ARREARS 17
5.1 Advance payments 17
5.2 Arrears payments 17
6 RECEIVABLES 17
6.1 Collection by Buyer 17
6.2 Accounting for Receivables 18
6.3 Written account and payment 18
6.4 Buyer to provide information 18
6.5 Seller's responsibility 18
6.6 Seller to Account to Buyer 18
7 PROPERTY LEASES 19
7.1 Transfer of Property Leases 19
7.2 Right of occupation pending transfer of Property Leases 19
7.3 Claims by third parties 20
8 EMPLOYEES AND CONTRACTORS 20
8.1 Offer of employment by Buyer 20
<PAGE>
8.2 Termination by SSD 20
8.3 Non-transferring Employees 21
8.4 Allowances 21
8.5 Indemnity 21
8.6 Novation of Contractors 21
8.7 Engagement of Contractors by Buyer 22
8.8 SSD to Pay Out contractors 22
8.9 Contractor Novations after the Purchase Date 22
8.10 Contractors and Employees Value 23
9 SUPERANNUATION 23
9.1 Seller to Make Payments 23
10 PERIOD BEFORE SETTLEMENT 23
10.1 Carrying on of the Business - by the Seller and SSD 23
10.2 Further Performance by Seller 24
10.3 Access 24
10.4 Carrying on of the Business - by the Buyer 24
11 PURCHASE DATE AND SETTLEMENT 25
11.1 Date for Settlement 25
11.2 Delivery of documents at Purchase Date 25
11.3 Delivery of documents on the Settlement Date 25
11.4 Delivery of Tangible Assets 25
11.5 Delivery of Business Records and documents of title 25
11.6 Delivery of Documents executed by SSD 26
11.7 Further Delivery of Documents 26
11.8 Buyer's obligations at Settlement 26
12 TITLE AND RISK 26
12.1 Title 26
12.2 Risk 26
13 CHANGE OF NAMES 26
13.1 Change of company name 26
14 CONTINUING COOPERATION 27
14.1 Carrying on of Business 27
14.2 Trade connections 27
14.3 Customer enquiries 27
14.4 Documents to be available after the Purchase Date 27
14.5 Continuing access to Excluded Records 28
15 AFTER SALES SERVICE 28
15.1 Supply of after-sales service 28
<PAGE>
16 COMPETITION 29
16.1 Undertakings 29
16.2 Separate undertakings 30
16.3 Value of the Business 30
16.4 Legal advice 30
16.5 Injunction 30
16.6 Survival of obligations 30
17 WARRANTIES AND GENERAL INDEMNITIES 30
17.1 Giving of Warranties 30
17.2 Buyer's investigation 31
17.3 Independent Warranties 31
17.4 Indemnity 31
17.5 Minimum Claim under Warranties 31
18 RESCISSION AND DAMAGES 31
18.1 Right of Buyer to rescind 31
18.2 Condition - Foreign Investment Review Board approval 32
18.3 Waiver 32
19 DUTIES, COSTS AND EXPENSES 33
19.1 Duties 33
19.2 Costs and expenses 33
19.3 Costs of performance 33
20 GENERAL 33
20.1 Notices 33
20.2 Governing law and jurisdiction 34
20.3 Waivers 34
20.4 Variation 35
20.5 Cumulative rights 35
20.6 Non-merger and survival of Warranties 35
20.7 Continuing indemnities and survival of indemnities 35
20.8 Further assurances 35
20.9 Specific performance 35
20.10 Entire agreement 36
20.11 Third party rights 36
SCHEDULE 1- WARRANTIES 37
SCHEDULE 2 - CLIENT CONTRACTS 48
SCHEDULE 3 - CONTRACTS 49
SCHEDULE 4 - EMPLOYEES 50
SCHEDULE 5 - CONTRACTORS 51
SCHEDULE 6 - LEASEHOLD PROPERTIES 52
SCHEDULE 7 - INTELLECTUAL PROPERTY RIGHTS 53
SCHEDULE 8 - COMPUTER EQUIPMENT 59
<PAGE>
SCHEDULE 9 - SETTLEMENT STATEMENT 64
SCHEDULE 10 - SUPERANNUATION 65
SCHEDULE 11 - MATERIAL CONTRACTS 67
ANNEXURE A - CLIENT CONTRACTS
ANNEXURE B - CONTRACTOR CONTRACTS
ANNEXURE C - EMPLOYEE CONTRACTS
ANNEXURE D - ACCOUNTS
ANNEXURE E - LEASES OF FREEHOLD PROPERTIES
ANNEXURE F - CLIENT NOVATION AGREEMENTS
ANNEXURE G - CONTRACTOR NOVATION AGREEMENTS
ANNEXURE H - OFFER OF EMPLOYMENT BY BUYER
ANNEXURE I - ASSIGNMENT OF PROPERTY LEASES
ANNEXURE J - ASSIGNMENT OF TRADE MARKS
ANNEXURE K - ASSIGNMENT OF COPYRIGHT
ANNEXURE L - ESCROW AGREEMENT
ANNEXURE M - KEY CONTRACTS
<PAGE>
SANCHA COMPUTER SERVICES PTY LIMITED
ACN 003 067 945
SANCHA SOFTWARE DEVELOPMENT PTY LIMITED
ACN 003 067 936
and
TIER TECHNOLOGIES (AUSTRALIA) PTY LIMITED
ACN 076 287 039
F r e e h i l l
---------------------
H o l l i n g d a l e
---------------------
& P a g e
---------------------
MLC CENTRE MARTIN PLACE SYDNEY NEW SOUTH WALES 2000 AUSTRALIA
TELEPHONE (02) 9225 5000 INT + (61 2) 9225 5000 FACSIMILE (02) 9322 4000 DX 361
SYDNEY
REFERENCE: PC:30B
SYDNEY MELBOURNE PERTH CANBERRA BRISBANE SINGAPORE HANOI HO CHI MINH CITY
CORRESPONDENT OFFICE IN JAKARTA
<PAGE>
Exhibit 2.2
[TIER AUSTRALIA LETTERHEAD]
Charlie Shuetrim
Sancha Computer Services Pty Limited
30A Marlborough Place
St. Ives, NSW, 2075, Australia
Dear Charlie:
AMENDMENT OF BUSINESS PURCHASE AGREEMENT
This agreement constitutes the first amendment of the Business Purchase
Agreement dated 26 February 1998 between Sancha Computer Services Pty Limited
("SANCHA"), Sancha Software Development Pty Limited and Tier Technologies
(Australia) Pty Limited ("TIER"). This agreement is entered into to address
Tier's concern that the description of the contracts with FAI Insurances Limited
contained in the Novation Agreement signed by Mr. Tim Mainprize on behalf of FAI
is not a complete description of the contractual relationship between Sancha and
FAI. For the purposes of clause 3.8(b) of the Business Purchase Agreement, on
the basis of the agreement below, Tier agrees that Sancha has delivered at the
date of this letter, a Client Novation Agreement in respect of the FAI Contract.
It is agreed that clause 3.8(b) of the Business Purchase Agreement is hereby
amended, to the effect that there will be a withholding of $450,000 from the
cash consideration of $911,112 otherwise payable by Tier to Sancha at
settlement. The balance of $461,112 will be paid by Tier to Sancha at
Settlement. This $450,000 will be released as follows:
1. $150,000 will be released on 7 May 1998, contingent upon FAI Insurances
Limited and its related companies (FAI) continuing to use Tier=s services
during the month of April 1998 at the substantially same level;
2. $150,000 will be released on 7 June 1998, contingent upon FAI continuing to
use Tier's Services during the month of May 1998 at the substantially same
level;
3. $150,000 will be released on 7 July 1998, contingent upon FAI continuing to
use Tier's Services during the month of June 1998 at the substantially same
level.
In this agreement, the expression "substantially same level" means that in
respect of each of the months of April, May and June, Tier recorded for billing
purposes (but not necessarily invoiced) at least 2000 hours to FAI.
<PAGE>
Please acknowledge that you are in agreement with this amendment by signing and
dating below.
Kind regards
/s/ John Starkey
John Starkey
for and on behalf of
Tier Technologies (Australia) Pty Limited
AGREED
/s/ Charlie Shuetrim
_______________________________________
Charlie Shuetrim
for and on behalf of
Sancha Computer Services Pty Limited
as trustee of the Sancha Computer Services Unit Trust
/s/ Charlie Shuetrim
_______________________________________
Charlie Shuetrim
for and on behalf of
Sancha Software Development Pty Limited
