Meeting of Creditors Proxies and Proofs of Debt

Level 10 40 St Georges Terrace Perth WA 6000 PO Box Y3185 Perth WA 6832 +61 8 9220 9333 [email protected] kordamentha.com

Circular to Creditors and Suppliers To the creditors as addressed

25 September 2014

Dear Sir/Madam

Savcor Group Ltd (Administrators Appointed) ACN 127 734 196 (‘the Company’)

Janna Robertson, Scott Kershaw and I, Cliff Rocke were appointed Administrators of the Company on 27 June 2014 pursuant to Section 436A of the Corporations Act (‘the Act’). The records of the Company available to us indicate that you may be a creditor of the Company.

Meeting of creditors

The reconvened second meeting of creditors pursuant to Section 436E of the Act will be held on Friday, 3 October 2014 at 10:00am (AEST) at KordaMentha Sydney Offices, Level 5, Chifley Tower, 2 Chifley Square Sydney NSW 2001. Registration for all creditors and employees will open at 9:45am (AEST). Please find enclosed a Form 529 being the ‘Notice of Second Meeting of Creditors of the Company under Administration’. The purpose of this meeting is to: a. review the report of the Administrators in connection with the business, property, affairs and financial circumstances of the Company b. for the creditors of the Company to resolve: i. that the administration should end, or ii. that the Company be wound up, or iii. that the Company execute a deed of company arrangement (‘DOCA’). d. consider a resolution to approve the Administrators’ remuneration calculated in accordance with rates charged by KordaMentha for the period of the voluntary administration and if the creditors resolve that the Company enter into a liquidation or a DOCA, a resolution will be considered to approve the liquidators or Deed Administrators remuneration. e. Consider any other business properly brought before the meeting.

Arrangements have been made for teleconferencing facilities. Should creditors wish to attend the meeting via teleconferencing, they must notify Kate McLeod via email at [email protected] prior to the meeting and they will be provided teleconferencing details.

Proxies and proofs of debt

Enclosed is a Form 532 – Appointment of Proxy and a Form 535 – Formal Proof of Debt or Claim. Creditors wishing to vote at the meeting, who will not be attending in person, must complete and return a Proxy Form. forensic | investment management | real estate | restructuring

KordaMentha Pty Ltd | ACN 100 169 391 | Liability limited by a scheme approved under Professional Standards Legislation Page 2

If you are representing a Company, please ensure that your proxy is executed pursuant to Section 127 of the Corporations Act or your representative is appointed pursuant to Section 250D of the Corporations Act, otherwise you will not be entitled to vote at the meeting.

A Form 535 – Formal Proof of Debt or Claim is attached for the purpose of the meeting. Creditors should note that proofs of debt lodged for this meeting are for voting purposes only. If you have lodged a POD then it not necessary to relodge.

Proxies and proofs of debt must be received no later than 4.00pm (AEST) on the last business day prior to the meeting, being Thursday, 2 October 2014, failing which creditors or their proxies may be excluded from voting at the meeting. They may be mailed to PO Box Y3185 Perth WA 6832, faxed to (08) 9220 9399 or scanned and emailed to [email protected].

General information regarding the conduct of meetings of creditors and the completion of proxy forms and proof of debt forms can be found on our website www.kordamentha.com in the Creditor Information section.

Section 600G of the Corporations Act permits electronic notification to creditors of certain notices or documents. If you would like to nominate to receive electronic notification, please complete the relevant section on the proof of debt form.

Report to Creditors

Pursuant to Section 439A of the Corporations Act 2001 (Cth), in convening the second meeting, the Administrators are required to prepare a report regarding both the Company’s business, property, affairs and financial circumstances and provide opinions on certain matters.

All creditors should review the Supplementary Report to Creditors prior to attending the forthcoming meeting.

Thank you for your assistance in this matter and should you require any further information, please do not hesitate to contact Kate McLeod (08) 9220 9332 or by email at [email protected].

Yours Sincerely

Cliff Rocke Administrator

Enc. Paragraph 5.6.12(2)(a)

Form 529

Corporations Act 2001

Notice of Second Meeting of Creditors of Company under Administration

Savcor Group Ltd (Administrators Appointed) ACN 127 734 196 (‘the Company’)

Notice is hereby given that the second meeting of creditors of the Company will be held on 3 October 2014 at Level 5, Chifley Tower, 2 Chifley Square Sydney NSW 2001. Registration for all creditors and employees will open at 9:45am (AEST) with the meeting commencing at 10:00am (AEST).

Arrangements have been made for creditors to attend the meeting from 10:00am (AEST) via teleconference. Should creditors wish to attend via teleconference, they must notify Kate McLeod via email at [email protected] prior to the meeting.

Agenda 1. The purpose of the meeting is: a. to review the report of the Administrators in connection with the business, property, affairs and financial circumstances of the Company b. for the creditors of the Company to resolve: i. that the administration should end, or ii. that the Company be wound up, or iii. that the Company execute a deed of company arrangement. 2. A resolution will be considered to approve the Administrators’ remuneration calculated in accordance with rates charged by KordaMentha for the period of the voluntary administration and if the creditors resolve that the Company enter into a liquidation or a DOCA, a resolution will be considered to approve the liquidators or Deed Administrators remuneration. 3. Any other business properly brought before the meeting.

Creditors wishing to vote at the meeting, who will not be attending in person or are a company, must complete and return a Proxy Form by no later than 4.00pm (AEST) on the last business day prior to the meeting, by post to KordaMentha, PO Box Y3185 Perth WA 6832 or by facsimile on (08) 9220 9399. A form of proxy is attached.

Dated: 25 September 2014

Cliff Rocke Administrator Subregulation 5.6.49(2)

Form 535

Corporations Act 2001

Savcor Group Limited (Administrators Appointed) ACN 127 734 196 (‘the Company’)

Formal Proof of Debt or Claim (General Form)

To: The Administrators of Savcor Group Limited

1. This is to state that the Company was on 27 June 2014, and still is, justly and truly indebted:

To ...... (name of creditor) Of ...... (address of creditor) For ...... (amount owed to creditor) And ...... cents (GST inclusive) GST Amount ......

Particulars of the debt are:

Date Consideration Amount ($) Remarks

(insert date when debt arose) (state how the debt arose and (GST inclusive) (include details of voucher attach supporting invoices and substantiating payment) statements of account)

2. To my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any satisfaction or security for the sum or any part of it except for the following: (insert particulars of all securities held. If the securities are on the property of the Company, assess the value of those securities. If any bills or other negotiable securities are held, show them in a schedule in the following form).

Date Drawer Acceptor Amount ($ ₵) Due date

3. *I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied. 4. *I am the creditor's agent authorised in writing to make this statement in writing. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.

Dated ......

Signature ......

Name ......

Address ......

......

Phone ...... [* cross out if not applicable] ☐ I nominate to receive electronic notification of notices or documents in accordance with Section 600G of the Corporations Act at the following email address or fax number:

Email address: ......

Fax number: ...... Appointment of Proxy Form 532 Savcor Group Limited (Administrators Appointed) Regulation 5.6.29 Corporations Act 2001 ACN 127 734 196 (‘the Company’)

1. Insert Full Name and Contact Details (please print)

Given name Surname

Company name Telephone number

Address

2. Appointment of a Proxy (please complete) I/We, a creditor of the Company appoint:

...... of ...... as my/our proxy, or in his/her absence ______, to vote at the meeting of creditors to be held on Friday, 3 October 2014 at the at Level 5, Chifley Tower, 2 Chifley Square Sydney NSW 2001 at 10:00am (AEST) or at any adjournment of that meeting.

3. Voting by your Proxy

Option 1: If appointed as a general proxy, as he/she determines on my/our behalf. ☐ and/or

Option 2: If appointed as a special proxy for some or all resolutions, specifically in the manner set out below (please tick). ☐

Resolution (please specify the particular resolution) For Against Abstain General Proxy to Vote

The Administration should end ☐ ☐ ☐ ☐

The Company be wound up ☐ ☐ ☐ ☐

The company be placed into HC DOCA ☐ ☐ ☐ ☐

The company be placed into BCP DOCA ☐ ☐ ☐ ☐

The company be placed into SCI DOCA ☐ ☐ ☐ ☐

That the remuneration of the Administrators for the period ☐ ☐ ☐ ☐ 1 August 2014 to 21 September 2014 in the amount of $45,044.00, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015 is approved for payment. That the estimated remuneration of the Administrators for ☐ ☐ ☐ ☐ the period 21 September 2014 to 3 October 2014 is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $34,852.50 excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015 That the estimated remuneration of the Administrators for ☐ ☐ ☐ ☐ the period 4 October 2014 to the execution of the DOCA is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $15,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. That the estimated remuneration of the Administrators for ☐ ☐ ☐ ☐ the period 4 October 2014 to the execution of the DOCA is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $30,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015.

That the estimated remuneration of the Deed Administrators for the period from the execution of the DOCA to the effectuation or termination of the DOCA determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $25,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.

That the estimated remuneration of the Deed Administrators for the period from the execution of the DOCA to the effectuation or termination of the DOCA determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $50,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.

That the estimated remuneration of the Liquidators for the period 4 October 2014 to the finalisation of the Liquidation is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $50,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.

4. Signature Section (in accordance with Sections 127 or 250D of the Corporations Act 2001) Signature of individual or person authorised by The common seal was affixed hereto in the corporate resolution to represent corporation presence of:

Print Name: Director

Dated this ...... Director/Company Secretary

Certificate of Witness

Please Note: This certificate is to be completed only where the person giving the proxy is blind or incapable of writing. The signature of the creditor is not to be attested by the person nominated as proxy.

I, ...... of ...... certify that the above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him before he attached his signature or mark to the instrument.

Signature of witness: ...... Savcor Group Ltd

(Administrators Appointed)

ACN 127 734 196

Supplementary Report by Administrators

25 September 2014 Contents 1 Appointment of Administrators ...... 1 1.1 Progress of Administration ...... 1 1.2 Second meeting of creditors ...... 1 1.3 Reconvened second meeting of creditors ...... 1 2 Events occurred since the adjourned second creditors meeting ...... 2 3 Alternatives available to creditors ...... 3 3.1 Explanation of alternatives available to creditors ...... 3 4 DOCA proposals received ...... 5 4.1 SCI Invest OY (‘SCI’) ...... 5 4.2 Benelong Capital Partners (‘BCP’) ...... 6 4.3 Halcyon Corporate (‘HC’) ...... 6 4.4 Indicative comparison of recapitalisation proposals and liquidation ...... 7 4.6 Recommendation ...... 8 5 Estimated return to creditors ...... 8 6 Remuneration of administrators ...... 8 7 Further information ...... 8 Appendix 1 – Summary of receipts and payments ...... 9 Appendix 2 – Remuneration report ...... 10 Appendix 3 – Schedule of KordaMentha national rates ...... 11 Applicable from 1 July 2013 ...... 11 FY 2014 ...... 11 Applicable from 30 June 2014 ...... 11 FY 2015 ...... 11 KordaMentha disbursement internal rates and allowances ...... 11 KordaMentha disbursement policy...... 12 KordaMentha classifications ...... 12

Liability limited by a scheme approved under Professional Standards Legislation Page i 1 Appointment of Administrators

1.1 Progress of Administration

We, Cliff Rocke, Janna Robertson and Scott Kershaw, were appointed as Administrators of Savcor Group Ltd (‘the Company’) on 27 June 2014 pursuant to Section 436A of the Corporations Act 2001 (Commonwealth) (‘the Act’).

We note that this update report should be read in conjunction with our earlier report (‘earlier report’) dated 23 July 2014.

1.2 Second meeting of creditors

Section 439A of the Act requires us to conduct a meeting of the creditors of the Company to consider the Company’s future.

The second meeting of creditors was held on 1 August 2014 and pursuant to Section 439B(2) of the Act the meeting was adjourned for up to 45 business days to allow the administrators to:  continue to pursue discussions with parties interested in proposing a Deed of Company Arrangement (‘DOCA’) which may result in a greater return to creditors than an immediate winding up  address concerns that had arisen in respect of the process undertaken by the directors in appointing voluntary administrators. Specifically the second meeting of creditors was advised that the administrators would seek an order from the Federal Court ratifying our appointment

1.3 Reconvened second meeting of creditors

We are required to reconvene the second meeting of creditors of the Company in Administration pursuant to Section 439A of the Act (‘Reconvened Meeting’) to consider the future of the Company.

Before the Reconvened Meeting, we must update the creditors on the Company’s external administration and provide opinions on certain matters, which is the purpose of this Supplementary Report. This allows creditors to be in a position to vote at the Reconvened Meeting on the options available to them, being:  the Company to execute a Deed of Company Arrangement (‘DOCA’)  the Administration to end, or  the Company to be wound up.

We advise that the Reconvened Meeting of creditors of the Company will be at Level 5, Chifley Tower, 2 Chifley Square Sydney NSW 2001, on Friday, 3 October 2014 at 10:00am (AEST). Formal notice of the meeting accompanies this Report. Registration for the meeting will commence at 9:30am (AEST).

Creditors who have already lodged a Proof of Debt are not required to lodge a further proof (unless they wish to amend their claim). However we request that creditors re-submit a Form 532 – Appointment of Proxy (which accompanies this Supplementary Report) if you intend to appoint another person to act on your behalf at the Reconvened Meeting, or you are a corporate creditor. Proxy forms may be sent to KordaMentha Perth, PO Box Y3185 Perth WA 6832 or by facsimile (08) 9220 9399 no later than 4:00pm (AEST), 2 October 2014.

If you are representing a company, please ensure that your proxy is executed pursuant to Section 127 of the Act or your representative is appointed pursuant to Section 250A of the Act, otherwise you will not be entitled to vote at the Reconvened Meeting.

Page 1 Creditors who have not previously submitted a proof of debt are required to do so no later than 4:00pm (AEST) on 2 October 2014, failing which they may be excluded from voting at the Reconvened Meeting. A Form 535, Formal Proof of Debt or Claim, accompanies this Supplementary Report. Proofs of Debt may be sent to KordaMentha Perth, PO Box Y3185 Perth WA 6832 or faxed to (08) 9220 9399. Arrangements have been made for creditors to attend the meeting via telephone a conference call facility. Creditors intending to use the conference call facility are required to notify us of their intention and collect conference call details at least 24 hours prior to the Reconvened Meeting. Please contact Kate McLeod on (08) 9220 9332.

A copy of this report together with other information relating to the Company, can be found on the KordaMentha web site at www.kordamentha.com in the Creditor Information section. We expect that we will upload additional information in respect of the DOCA proposals received to date to the KordaMentha website between issuing this Supplementary Report and the date of the Reconvened Meeting. We recommend that creditors monitor the KordaMentha websites for such updates ahead of the Reconvened Meeting.

2 Events occurred since the adjourned second creditors meeting

In addition to preparing this Supplementary Report and addressing various statutory matters, since the meeting on 1 August 2014 we have undertaken the following:

Ratification of the appointment of voluntary administrators to the Company

As discussed during the second creditors meeting, Mr Ikka Savisalo has purported that he did not participate in the meeting at which voluntary administrators were appointed to the Company. This is contrary to the minutes of the meeting which state that both Mr Hannu Savisalo and Mr Ikka Savisalo were present.

Given this critical uncertainty an application was made to the Federal Court on 18 August 2014 seeking orders that, pursuant to section 477A(1) of the Act, that Part 5.3A of the Act is to operate in relation to the Company as if the administrators were validly appointed as joint and several administrators of the Company pursuant to section 436A of the Corporations Act on 27June 2014. The matter was heard and the orders sought made on 10 September 2014.

This matter is now fully concluded.

Marketing a recapitalisation of the Company and negotiations with interested parties

We have advertised for expressions of interest in the recapitalisation of the corporate listed entity and liaised with a range of interested parties in an attempt to procure DOCA proposals. In summary the process resulted in:  16 enquiries by e-mail and phone each of whom received a set of core information

 Five parties being provided with more detailed information

 Two parties expressing conditional interest but at indicative values that were not competitive

 Two parties submitting proposals by email which have been refined through negotiation and summarised in Section 3.1.1

We have made a conscious effort to preserve the ASX listing as a viable asset of the Company. As of 23 September 2014 we were issued with a notice of revocation of approval of a class of financial products due to our extended suspension. This essentially means shareholders do not have online access to their shares. We are currently working with ASX and preparing an appeal of the notice to preserve the corporate shell to enable the Company to be recapitalised.

Page 2 Circulated employee entitlement calculations in preparation for claiming under the Fair Entitlement Guarantee Scheme (‘FEGS’)

We have sent all employees their statement of entitlements and FEGS forms so that, if the Company goes into liquidation, employees will be able to make a claim under FEGS.

Our review of the Company’s records identifies total outstanding employee entitlements of $1,038,610.74 of which we anticipate $112,631.21 is capable of being claimed through FEGS.

Sought and received legal advice in respect of potential insolvent trading and voidable transaction claims

We presented our investigations and analysis to our legal advisors with instructions to comment on the prospects of a substantial claim against the current and former directors. We are unable to comment on the legal advice as:  It is commercially sensitive  This would risk a potential loss of privilege

As always with claims of this nature it is necessary to consider the costs and funding required to run the matter and the director(s) capacity to satisfy any successful claims.

Undertook a planning and scoping process with our legal advisors in respect of a potential claim against Freyssinet

We have investigated the prospects of litigating a claim against Freyssinet on their failure to complete under the Share Purchase Deed for the group’s advanced rehabilitation technology operations (or in respect of other related contractual breaches).

As above, are unable to comment on this legal advice as:  It is commercially sensitive  This would risk a potential loss of privilege

3 Alternatives available to creditors

3.1 Explanation of alternatives available to creditors

It is our obligation to make a recommendation to creditors on which alternative is in the best interests of creditors. In this instance, our recommendation is based primarily on what is in the best interests of creditors with regard to repaying their existing debts.

We make the following general comments in respect to each option:

3.1.1 Deed of Company Arrangement

We have received three DOCA proposals (of varying detail) as detailed below. Each of the DOCA assumes the creditors will compromise their claim against the Company in return for participating in a creditors’ trust from where distributions would be made to creditors.

Page 3 Overview of DOCA proposals

Proposer SCI Invest OY (‘SCI’) Halcyon Capital (‘HC’) Benelong Capital Partners (‘BCP’)

Purpose Acquisition of Group’s assets. Recapitalisation of listed shell Recapitalisation of listed shell Facilitates deed administrators separately recapitalising the listed shell Value Headline of $500,000 (plus funds $500,000 $401,000 from the separate recapitalisation of the listed shell) Payment timing On execution of the DOCA $150,000 by the time of shareholder On shareholder approval approval. Remainder over six months (we are expecting to receive a more favourable timing for payments prior to the Reconvened Meeting) Timing of FEGS Shortly after execution of the DOCA Shortly after shareholder approval Shortly after shareholder approval equivalent dividend Form of offer Detailed, but draft, proposal through Email proposal limited to core Email proposal limited to core legal advisor commercial terms commercial terms Ranking 3 1 2

A recapitalisation deal with HC or BCP could be concluded simultaneously with undertaking the SCI DOCA. The HC proposal is at a higher value than the BCP proposal but has an extended payment term and therefore has a greater level of credit risk.

3.1.2 Bringing the Administration to an end

It is possible that creditors may consider ending the Administration and returning the Company to the existing directors. This is not a commercial proposition at this stage given the financial position of the Company and the professional assistance it requires. The Company’s directors would resume control of the assets and be able to deal with them as they deem appropriate. This will not prevent creditors from initiating legal proceedings for the recovery of their debts or petitioning to the Court to have the Company wound up at their own expense.

Should creditors resolve that the Administration be terminated, the Company will be placed in a similar position to that existing prior to our appointment as Administrators but with each of its primary trading subsidiaries being subject to some form of external administration.

3.1.3 Winding up the Company

At the Reconvened Meeting creditors may resolve that the Company be wound up. Should they do so, the Company will be placed into liquidation and the Company is taken to have nominated us as the Administrators to be the Liquidators, if the creditors do not nominate a person to be the Liquidator. The Liquidators are required to realise and distribute the assets in accordance with Section 556 of the Act (subject to Section 545 of the Act) and will also be required to complete a thorough investigation into the Company’s past dealings and affairs, and the past actions of the directors.

The effects of the liquidation of the Company include: 1. the moratorium available under the Voluntary Administration process will cease 2. the Liquidators will be empowered to recover potential voidable transactions, as outlined in Section 4.5.1 of this report 3. the Liquidators will be required to conduct an investigation into the affairs of the Company pursuant to Section 533 of the Act and lodge a report with the ASIC in respect of the same.

The areas of possible further investigations were outlined in our earlier report to creditors.

Page 4 4 DOCA proposals received

4.1 SCI Invest OY (‘SCI’)

We are in receipt of a draft DOCA proposal from SCI - an entity associated with Mr Hannu Savisalo, the chairman of the Company and major shareholder in the wider Savcor group. We have been advised that SCI intends to formalise their DOCA proposal shortly but we expect this will be received between issuing the Supplementary Report and the Reconvened Meeting. We will update creditors of any amendments to the SCI DOCA proposal at the Reconvened Meeting and also lodge updated details on the KordaMentha website.

Key terms and commentary on the SCI proposed DOCA

Term Value driver Commentary

Payment on $500,000 allocate to: Timing advantage for priority creditors: execution of  An amount to pay a dividend to priority  The return to priority creditors is no better than the DOCA creditors equivalent to that available under under a liquidation scenario but the SCI FEGS DOCA would facilitate an accelerated dividend  The balance to acquire various assets process  Whilst the SCI DOCA provides certainty of outcome this is at a significant discount to the face value of the assets being acquired Key assets All shareholdings in subsidiaries – notably the Cencorp Notwithstanding the difficulties in marketing the Cencorp acquired shareholding shares, the quantum of the discount to market makes  ~15% shareholding in this listed Finnish the SCI DOCA sub-optimal. company with a notional market value of As an alternative structure we have suggested SCI ~$2.9m. consider using a portion of the DOCA payment to underwrite the marketing of the Cencorp shares (i.e.  However the share is thinly traded and securing the down-side outcome for creditors but Cencorp, if it completes the announced sale enabling creditors to participate in any upside from a of the electronics automation business, will market sale of the shares). We have not received a be akin to a clean technology start-up. formal response to this suggestion at the time of Discussions with advisors in Finland suggest preparing the Supplementary Report there will be limited investor interest in the shareholding Loans where Savcor Group has funded related parties There is significant doubt as to the borrowers’ capacities / subsidiaries which includes the Cencorp loan of to meet these obligations and therefore the amount that ~€0.5m may be collected by a liquidators if appointed. It is noted that all borrowers are under the control of the Savisalo family 60% of net proceeds from a settlement with Freyssinet The DA would have a first right to seek a settlement with in respect of the failed purchase of the ART business if Freyssinet. If no settlement is achieved the right to settled by the deed administrator. 40% of net proceeds litigate reverts to SCI if SCI are required to litigate the matter Transaction We consider the transaction risk to be high but We note that, despite several requests, SCI has been risk mitigated to some extent by: unable to provide evidence of funding being available in  The provision of a $50,000 non-refundable the sum of $500,000 deposit  A requirement for the balance of $450,000 to be deposited into a solicitors trust account prior to creditors voting at the Reconvened Meeting Key Provides for the deed administrator to pay a FEGS equivalent dividend to priority creditors as well as advantages simultaneously undertake a recapitalisation of the listed entity with HC or BCP SCI DOCA and shell recapitalisation are not mutually exclusive Key concerns Limited valuation ascribed to the Cencorp shares and other assets

Page 5 The alternative to the SCI DOCA proposal would be a DOCA to recapitalise the listed entity with HC or BCP and for the deed administrators to realisethe Cencorp shares, related party loans and pursue the settlement with Freyssinet. A liquidation of the Company is also considered.

4.2 Benelong Capital Partners (‘BCP’)

As discussed above BCP have provided an email proposal on behalf of clients. BCP are experienced in this type of transaction and we believe they have the capacity to complete this transaction. If the proposal is accepted by creditors a formal DOCA proposal will be drawn up by BCP.

Key terms and commentary on the BCP proposed DOCA

Term Value impact Commentary

Payment amount  $112,631.21 to pay FEG equivalent Timing advantage for priority creditors Priority distribution The return to priority creditors is in line with that available under a liquidation scenario  $288,368.79 to acquire the ASX listing Key assets acquired ASX listing Transaction risk  $21,000 deposit upon signing of the  Considered to be a low level of transaction risk /Payment profile DOCA due to being experienced in this type of  $380,000 to be deposited after transaction/recapitalisation shareholder approval  Possibility of not obtaining shareholder and creditor approval

Key advantages This will be a cleaner transaction with less  Considered to be a low risk involvement and fees from the Deed Administrators equating to a higher return out of the available assets Key concerns DOCA is only in relation to the shell and does not separate the other assets for realisation Savisalo family could choose to vote their substantial shareholding against the DOCA. However this would result in the liquidation of the Company and a loss of value (and upside potential) for all shareholders Have not submitted a draft DOCA

As discussed above this is on the higher side of the recapitalisation strategy, while we recommended a recapitalisation strategy there are other more preferable offers.

4.3 Halcyon Corporate (‘HC’)

HC have used the same approach as BCP and have provided a draft proposal for a recapitalisation strategy. They have also completed similar transaction and provide a lower credit risk than SCI. If the proposal is accepted by creditors a formal DOCA proposal will be drawn up by HC.

Term Value impact Commentary

Payment amount  $112,631.21 to pay FEG equivalent Timing advantage for priority creditors, however not Priority distribution as soon as BCP due to the below transaction risks The return to priority creditors is in line with that available under a liquidation scenario  $387,368.79 to acquire the ASX listing Amount payable would depend on approval of creditors and shareholders of the recapitalisation Key assets acquired ASX listing Transaction risk  $75,000 upon signing the DOCA  Considered to be a low level of transaction risk /Payment profile due to being experienced in this type of transaction/recapitalisation

Page 6  $75,000 upon shareholder approval for the  Possibility of not obtaining shareholder and issue of new shares creditor approval  $150,000 in 3 months from deed  More frequent and smaller payments which is a effectuation higher risk than the proposed timing of BCP,  $200,000 in 6 months from deed however we are expecting to receive a more effectuation favourable timing for payments prior to the Reconvened Meeting.

Key advantages This will be a cleaner transaction with less  Considered to be a low risk involvement and fees from the Deed Administrators  Have not submitted a draft DOCA equating to a higher return out of the available assets Key concerns DOCA is only in relation to the shell and does not separate the other assets for realisation Savisalo family could choose to vote their substantial shareholding against the DOCA. However this would result in the liquidation of the Company and a loss of value (and upside potential) for all shareholders Have not submitted a draft DOCA

As discussed above this is on the higher side of the recapitalisation strategy. This is the highest offer for the shell and we have recommended below to accept this offer.

4.4 Indicative comparison of recapitalisation proposals and liquidation

SCI DOCA proposal BCP and HC proposal Liquidation

Low case High case Low case High case Low case High case Total funds available from 500 500 401 500 0 0 proposal Other asset realisation 400 500 300 1,000 300 1,241 (for DOCA)1 FEG realisation 112 112 Funds available to priority 900 1,000 701 1,500 412 1,353 creditors Priority creditors (112) (112) (112) (112) (112) (112) Total available funds to 788 888 589 1,388 300 1,241 costs and secured creditors Legal fees (33) (33) (33) (33) (33) (33) Consultant fees2 (82) (174) (82) (174) Previously approved (82) (82) (82) (82) (82) (82) administrators fees3 Future (80) (70) (60) (50) (60) (50) administrators/liquidators fees4 Funds available to 593 703 332 1,049 43 902 secured creditors Net funds available to 0 0 0 0 0 0 unsecured creditors

1. Due to the uncertainty and commercially sensitive information of the other assets we have provided the figures on the Cencorp share sale. Intercompany loans, potential Freyssinet claim have been ommited as they could considerably vary. In a liquidation scenario we have included a figure for the insolvent trading claim, we cannot guarantee this figure as the quantum is unknown.

2. The consultant fees are in relation to the sale of the Freyssinet shares.

3. The fees were previously approved in the original second creditors report

Page 7 4. The breakdown for these fees are specified in Appendix 2

The SCI DOCA proposal is only marginally better than proceeding with a recapitalisation proposal in a low case scenario but provides a notably lower outcome than under a recapitalisation proposal in an upside scenario.

4.6 Recommendation

It is our opinion that it would be in creditors interests for the Company to execute a DOCA. It is not in creditors interests to wind up the Company or to bring the Administration to an end. As detailed in the financial analysis of the alternatives (see Section 5.4), the DOCA is expected to result in a definite higher return to creditors than if the Company was liquidated.

We recommend accepting the HC DOCA proposal.

4.6.1 Reasons for recommendation

The reasons for our recommendation are as follows: 1. Notwithstanding there is a risk that the Savisalo family could vote their shareholding against a recapitalisation proposal, there appears to be reasonable prospects of completing a recapitalisation DOCA. Whilst payment under the HC DOCA proposal is over a six month period it is for a higher total quantum than the BCP DOCA proposal. 2. Bringing the Administration to an end will return the Company to the control of the director in circumstances which will not have materially changed from the point at which those same director resolved to appoint voluntary administrators.

We anticipate that placing the Company into liquidation will result in a lower return to creditors than proceeding with a recapitalisation DOCA proposal.

5 Estimated return to creditors

We do not anticipate that a dividend to creditors will be made to unsecured creditors in liquidation.

6 Remuneration of administrators

In accordance with Section 449E of the Act, the Administrators’ remuneration report is attached as Appendix 2. We are seeking approval of our remuneration on a time basis in accordance with the KordaMentha National FY2015 Schedules of Hourly Rates, which are included in the remuneration report. Also included in the remuneration report are details in relation to disbursements.

7 Further information

Creditors requiring further information regarding the administration can contact Ms Kate McLeod on (08) 9220 9333.

Dated: 25 September 2014

Cliff Rocke Administrator

Page 8

Appendix 1 – Summary of receipts and payments

A summary of the receipts and payments for the period from 20 July 2014 to 24 September 2014.

Item ($)

Receipts Bank Interest 35.45 Reimbursement of insurances/stamp duty 3,267.00 Reimbursement of product sale costs 139,578.50 Total receipts 142,880.92

Payments Consultants Fees (126,500.00) Insurance (2,970.00) Legal fees (12,625.80) Search Fees (22.00) Stamp Duty (297.00) Total payments (142,414.8) Net Receipts/Payments 466.12

Page 9

Appendix 2 – Remuneration report

Page 10

Savcor Group Ltd

(Administrators Appointed)

(ACN 127 734 196)

Remuneration Report by Administrators

25 September 2014

Contents 1 Remuneration...... 1 1.1 Remuneration of Administrators ...... 1 1.2 Other relevant information re remuneration ...... 2 2 Disbursements ...... 2 3 Other information ...... 3 Appendix 1 – Summary of work completed ...... 4 Appendix 2 – Calculation of actual fees ...... 6 Appendix 4 – Summary of tasks to be undertaken ...... 7 Appendix 5 – Summary of tasks to be undertaken ...... 9 Appendix 6 – Summary of future tasks to be undertaken ...... 11 Appendix 7 – Summary of future tasks to be undertaken ...... 14 Appendix 8 – Remuneration approved ...... 17 Appendix 9 – Remuneration resolutions...... 18 Appendix 10 – Disbursements ...... 19

Liability limited by a scheme approved under Professional Standards Legislation Page i

1 Remuneration

In accordance with Section 449E of the Corporations Act 2001 and the Australian Restructuring Insolvency and Turnaround Association’s Code of Professional Practice, we provide the following information in respect of the Administrators’ remuneration for the period from 1 August 2014 to 21 September 2014 and for future remuneration from this date.

The following information is provided to assist creditors consider the appropriateness of the remuneration claims that are being made. Your approval of this remuneration will be sought at the second meeting of creditors to be held on 3 October 2014.

Declaration

We, Cliff Rocke, Janna Robertson and Scott Kershaw of KordaMentha, have undertaken a proper assessment of this remuneration and disbursements claim for our appointment as Voluntary Administrators of the Company in accordance with the law and applicable professional standards. We are satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the administration. We are satisfied that the disbursements claimed are necessary and proper.

1.1 Remuneration of Administrators

Period of remuneration Amount Appendix (ex GST) reference

Remuneration previously approved: 27 June 2014 to 1 August 2014 $82,417.50 8 Remuneration to be approved at meeting on 3 October 2014: Voluntary Administration Resolution 1: 1 August 2014 to 21 September 2014 $45,044.00 2 Resolution 2: 22 September 2014 to 3 October 2014 $34,852.50 4 Resolution 3: 4 October 2014 to execution of DOCA –BCP and HC $15,000.00 Resolution 3: 4 October 2014 to execution of DOCA –SCI $30,000.00 5 Deed of Company Arrangement Resolution 4: execution of the DOCA to the effectuation or termination of the DOCA – BCP and HC $25,000.00 Resolution 4: execution of the DOCA to the effectuation or termination of the DOCA – SCI $50,000.00 6 Creditors’ Voluntary Liquidation Resolution 5: 4 October 2014 to the finalisation of the Liquidation $50,000.00 7

Approval for the future remuneration sought for the period of the DOCA or the liquidation is based on an estimate of the tasks necessary to be completed. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.

Attached as appendices for each resolution period are schedule of tasks undertaken or to be undertaken and calculation of remuneration by person for the period of actual remuneration. Information on the main activities in those relevant task areas is summarised in the schedules to enable creditors to understand the type and purpose of work being undertaken.

Resolutions to be proposed to creditors in respect of remuneration are detailed in Appendix 9.

Page 1

1.2 Other relevant information re remuneration

ASIC has produced an Information Sheet entitled ‘Approving fees: a guide for creditors’ that may be found on our website at Creditor Information – Australia, the ASIC website at Approving fees – a guide for creditors or alternatively, a copy can be obtained from KordaMentha on request.

2 Disbursements

Disbursements incurred for the period 20 July 2014 to 21 September 2014 are detailed in Appendix 10. Where amounts have been paid to KordaMentha from funds in the administration of the Company for externally provided goods or services, these are reimbursements to KordaMentha for amounts paid by KordaMentha either because KordaMentha was invoiced directly or because funds were not available at the time in the administration. Disbursements detailed in Appendix 10 that have been paid to date are included in the receipts and payments at Appendix 2 in the Supplementary Report as ‘Appointee Disbursements’. However, the disbursements in Appendix 10 may also include disbursements that have been incurred by KordaMentha but not yet reimbursed. Where payments to third parties have been paid directly by the Company, these are only included in the receipts and payments at Appendix 2 in the Supplementary Report.

Disbursements have been categorised as follows:  Externally provided professional services – these are recovered at cost. An example of an externally provided professional service disbursement is legal fees.  Externally provided non-professional disbursements – these are recovered at cost. Examples of externally provided professional service disbursements are travel, accommodation, search fees and lodgement fees.  Internal disbursements – these are recovered on a reasonable commercial basis. These disbursements are generally charged a cost, though some may be charged at a rate which recoups both variable and fixed costs. Examples of internal disbursements include printing and postage costs, travel allowance and data room hosting. Details of our disbursement policy are included with the attached KordaMentha Rates National FY 15.

Page 2

3 Other information

This remuneration report should be read in conjunction with the Report to Creditors dated 25 July 2014 and the Supplementary Report to Creditors. A summary of the administrators’ receipts and payments from the commencement of the voluntary administration to 24 July 2014 can be found in the Report to Creditors dated 25 September 2014.

If you have any queries in relation to the information provided for remuneration or a particular disbursement incurred, please contact Kate McLeod on (08) 9220 9333 or by email at [email protected].

Dated: 25 September 2014

Cliff Rocke Janna Robertson Scott Kershaw Administrator Administrator Administrator

KordaMentha KordaMentha KordaMentha Level 10, 40 St Georges Tce Level 5, 2 Chifley Tower Level 24, 333 Collins Street Perth WA 6000 Sydney NSW 2000 Melbourne VIC 3001

Page 3

Appendix 1 – Summary of work completed

Detailed below is a summary of work completed by task area for the period from 1 August 2014 to 21 September 2014.

Task area General description Details of tasks

Assets Sale of assets  Liaising with purchasers 38.1 hours  Assessment of offers and negotiation with purchasers $21,748.50 Intangible assets  Review of intangible assets  Sale of intangible assets  Correspondence regarding ASX listing

Creditors Creditor enquiries  Receive and follow up creditor enquiries via telephone 0.2 hours  Correspondence to creditors via mail, email and facsimile $60.00  Correspondence with committee of creditors

Secured creditor  Correspondence with secured creditor, including notification of appointment and update reports  Meetings with secured creditors

Shareholders  Correspondence and discussions with shareholders

Reports to creditors  Preparation of reports to creditors

Proofs of debts  Receipt of proofs of debt

Employees Employee enquiries  Receive and follow up employee enquiries via telephone and in 1.1 hours person $467.50  Correspondence to employees via mail, email and facsimile

Fair Entitlement Guarantee  Correspondence re FEG

Entitlements  Calculation of employee entitlements  Review of employee records, employee agreements and awards  Reconciliation of superannuation accounts  Legal advice re entitlements  Correspondence with employees re entitlements and any queries

Workers compensation  Review insurance policies

Other employee issues  Correspondence with Centrelink, Child Support and other bodies  Correspondence with superannuation funds, ATO and state revenue offices

Statutory compliance Books and records  Administration in relation to storage 9.7 hours ATO and other statutory  Correspondence $3,018.50 reporting

Meeting of creditors  Preparation of meeting notices, proxies and advertisements  Correspondence to creditors, including mail distribution  Preparation of meeting documents, including agenda, attendance register, list of creditors etc  Preparation and lodgement of minutes of meeting with ASIC

Litigation/recoveries  Review of potential recoveries  Preparation of brief for solicitor  Liaising with solicitor re recovery actions

Trading Trade on management  Liaising with suppliers, management and employees 5 hours  Implementation of controls $2,875.00  Preparation and authorisations of receipt and payment forms  Payroll issues  Liaising with other parties, such as superannuation funds, ATO, state revenue offices, insurance brokers etc.

Page 4

Task area General description Details of tasks

Budgeting and financial reporting  Review of company’s budgets, management reports and financial statements  Preparation of budgets  Preparation of weekly financial reports  Review of trading strategy

Administration and risk Correspondence  Calls and emails about recapitalisation strategy mitigation Planning/review  Engagement planning 24.8 hours $11,904.50  Discussions re status of administration, strategy and outstanding issues

Document maintenance, file  Filing of documents review, checklist  Update of work programs  File review

Insurance  Correspondence with insurance brokers re initial and ongoing insurance requirements  Review of insurance policies

Bank account administration  Opening and closing accounts  Preparation of transactions  Bank account reconciliations  Correspondence with bank re specific transactions  Banking of deposits

Process of receipts and  Process of receipts, payments and journal entries into accounting payments system

ATO and other statutory  Preparation of BAS reporting

General administration  Risk assessment  Word processing

Remuneration  Recording of time, including details  Preparation of remuneration schedules  Invoice preparation

Litigation  General correspondence in relation to litigation  Appearing at court for appointment ratification

Page 5

Appendix 2 – Calculation of actual fees

Page 6

Savcor Group Limited (Administrators Appointed)

Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 4 August 2014 to 10 August 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 1.20 780.00 ------1.20 780.00 Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 6.50 3,867.50 1.00 595.00 - - 0.50 297.50 - - 5.00 2,975.00 - - Julian Derrick Director 595 1.30 773.50 ------1.30 773.50 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 0.50 162.50 ------0.50 162.50 Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 0.50 75.00 ------0.50 75.00 Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------

Total Hours and Fees 10.00 5,658.50 1.00 595.00 - - 0.50 297.50 - - 5.00 2,975.00 3.50 1,791.00 GST 565.85 Total Hours and Fees (including GST) 6,224.35

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 1.20 780.00 0.80 520.00 0.40 260.00 - - Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 6.50 3,867.50 5.50 3,272.50 1.00 595.00 - - Julian Derrick Director 595 1.30 773.50 - - 1.30 773.50 - - Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 0.50 162.50 0.50 162.50 - - - - Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 0.50 75.00 0.50 75.00 - - - - Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 10.00 5,658.50 7.30 4,030.00 2.70 1,628.50 - - GST 565.85 Total Hours and Fees (including GST) 6,224.35 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 11 August 2014 to 17 August 2014

Name Total Assets Creditors Employees Statutory Compliance Trading Mitigation Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke 1.30 845.00 0.30 195.00 - - - - 0.70 455.00 - - 0.30 195.00 Janna Robertson 0.30 195.00 ------0.30 195.00 Bronwyn Kettle ------Julian Derrick 3.90 2,320.50 ------3.90 2,320.50 Natalie Buckby 2.00 800.00 ------2.00 800.00 Kate Mcleod ------Melissa Galletta ------Kate Williams ------Amy Gibbons 1.20 180.00 ------1.20 180.00 Claire Dickinson ------Diana D'Amato ------Janine Morice ------James Sprivulis ------Tracey Crawford ------Total Hours and Fees 8.70 4,340.50 0.30 195.00 - - - - 0.70 455.00 - - 7.70 3,690.50 GST 434.05 Total Hours and Fees (including GST) 4,774.55

Name Total Circulating Non-Circulating Mixed Hours $ Hours $ Hours $ Hours $ Cliff Rocke 1.30 845.00 - - 0.60 390.00 0.70 455.00 Janna Robertson 0.30 195.00 - - - - 0.30 195.00 Bronwyn Kettle ------Julian Derrick 3.90 2,320.50 - - - - 3.90 2,320.50 Natalie Buckby 2.00 800.00 - - - - 2.00 800.00 Kate Mcleod ------Melissa Galletta ------Kate Williams ------Amy Gibbons 1.20 180.00 - - - - 1.20 180.00 Claire Dickinson ------Diana D'Amato ------Janine Morice ------James Sprivulis ------Tracey Crawford ------Total Hours and Fees 8.70 4,340.50 - - 0.60 390.00 8.10 3,950.50 GST 434.05 Total Hours and Fees (including GST) 4,774.55 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 18 August 2014 to 24 August 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 1.50 975.00 ------1.50 975.00 Janna Robertson Partner 650 0.20 130.00 ------0.20 130.00 Bronwyn Kettle Director 595 3.00 1,785.00 3.00 1,785.00 ------Julian Derrick Director 595 0.50 297.50 ------0.50 297.50 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 1.30 422.50 0.20 65.00 - - - - 1.10 357.50 - - - - Melissa Galletta Senior Client Accounting Admin 275 0.50 137.50 ------0.50 137.50 - - - - Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 0.20 30.00 ------0.20 30.00 - - - - Diana D'Amato DFD Co-ordinator 150 0.80 120.00 ------0.80 120.00 Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 8.00 3,897.50 3.20 1,850.00 - - - - 1.80 525.00 - - 3.00 1,522.50 GST 389.75 Total Hours and Fees (including GST) 4,287.25

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 1.50 975.00 0.80 520.00 0.70 455.00 - - Janna Robertson Partner 650 0.20 130.00 - - 0.20 130.00 - - Bronwyn Kettle Director 595 3.00 1,785.00 - - 3.00 1,785.00 - - Julian Derrick Director 595 0.50 297.50 - - 0.50 297.50 - - Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 1.30 422.50 0.20 65.00 0.30 97.50 0.80 260.00 Melissa Galletta Senior Client Accounting Admin 275 0.50 137.50 0.20 55.00 - - 0.30 82.50 Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 0.20 30.00 0.20 30.00 - - - Diana D'Amato DFD Co-ordinator 150 0.80 120.00 - - 0.80 120.00 - - Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 8.00 3,897.50 1.40 670.00 5.50 2,885.00 1.10 342.50 GST 389.75 Total Hours and Fees (including GST) 4,287.25 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 25 August 2014 to 31 August 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 0.30 195.00 ------0.30 195.00 Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 2.50 1,487.50 2.50 1,487.50 ------Julian Derrick Director 595 3.00 1,785.00 2.70 1,606.50 ------0.30 178.50 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 0.40 130.00 - - 0.20 65.00 - - 0.20 65.00 - - - - Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 0.30 45.00 ------0.30 45.00 Janine Morice Document Formatting Design Mgr 150 0.70 105.00 ------0.70 105.00 James Sprivulis Business Analyst 150 0.20 30.00 ------0.20 30.00 Tracey Crawford Administration 150 ------Total Hours and Fees 7.40 3,777.50 5.20 3,094.00 - 65.00 - - 0.20 65.00 - - 1.80 553.50 GST 377.75 Total Hours and Fees (including GST) 4,155.25

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 0.30 195.00 - - 0.30 195.00 - - Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 2.50 1,487.50 - - 2.50 1,487.50 - - Julian Derrick Director 595 3.00 1,785.00 - - 3.00 1,785.00 - - Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 0.40 130.00 0.20 65.00 0.20 65.00 - - Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 0.30 45.00 - - - - 0.30 45.00 Janine Morice Document Formatting Design Mgr 150 0.70 105.00 - - - - 0.70 105.00 James Sprivulis Business Analyst 150 0.20 30.00 - - - - 0.20 30.00 Tracey Crawford Administration 150 ------Total Hours and Fees 7.40 3,777.50 0.20 65.00 6.00 3,532.50 1.20 180.00 GST 377.75 Total Hours and Fees (including GST) 4,155.25 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 1 September 2014 to 7 Septmber 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 ------Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 3.00 1,785.00 3.00 1,785.00 ------Julian Derrick Director 595 4.60 2,737.00 4.60 2,737.00 ------Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 ------Melissa Galletta Senior Client Accounting Admin 275 0.40 110.00 ------0.40 110.00 - - - - Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 0.10 15.00 ------0.10 15.00 - - - - Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 8.10 4,647.00 7.60 4,522.00 - - - - 0.50 125.00 - - - - GST 464.70 Total Hours and Fees (including GST) 5,111.70

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 ------Janna Robertson Partner 650 ------Bronwyn Kettle Director 595 3.00 1,785.00 - - 3.00 1,785.00 - - Julian Derrick Director 595 4.60 2,737.00 - - - - 4.60 2,737.00 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 ------Melissa Galletta Senior Client Accounting Admin 275 0.40 110.00 0.10 27.50 - - 0.30 82.50 Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 0.10 15.00 - - - - 0.10 15.00 Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 8.10 4,647.00 0.10 27.50 3.00 1,785.00 5.00 2,834.50 GST 464.70 Total Hours and Fees (including GST) 5,111.70 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 8 September 2014 to 14 Septmber 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 2.60 1,690.00 ------2.60 1,690.00 Janna Robertson Partner 650 0.30 195.00 ------0.30 195.00 Bronwyn Kettle Director 595 3.00 1,785.00 3.00 1,785.00 ------Julian Derrick Director 595 11.30 6,723.50 8.30 4,938.50 ------3.00 1,785.00 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 2.10 682.50 0.40 130.00 - - - - 1.10 357.50 - - 0.60 195.00 Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 0.30 45.00 ------0.30 45.00 Total Hours and Fees 19.60 11,121.00 11.70 6,853.50 - - - - 1.10 357.50 - - 6.80 3,910.00 GST 1,112.10 Total Hours and Fees (including GST) 12,233.10

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 2.60 1,690.00 1.10 715.00 1.50 975.00 - - Janna Robertson Partner 650 0.30 195.00 - - - - 0.30 195.00 Bronwyn Kettle Director 595 3.00 1,785.00 - - 3.00 1,785.00 - - Julian Derrick Director 595 11.30 6,723.50 1.00 595.00 9.80 5,831.00 0.50 297.50 Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 2.10 682.50 0.60 195.00 0.40 130.00 1.10 357.50 Melissa Galletta Senior Client Accounting Admin 275 ------Kate Williams Business Analyst 150 ------Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 ------Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 0.30 45.00 - - - - 0.30 45.00 Total Hours and Fees 19.60 11,121.00 2.70 1,505.00 14.70 8,721.00 2.20 895.00 GST 1,112.10 Total Hours and Fees (including GST) 12,233.10 Savcor Group Limited (Administrators Appointed) Voluntary Administrators' Remuneration Remuneration Summary By Person, Office and Circulation For the Period 15 September 2014 to 21 September 2014

Name Classification Hourly Total Assets Creditors Employees Statutory Compliance Trading Mitigation Rate Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 0.30 195.00 ------0.30 195.00 Janna Robertson Partner 650 1.80 1,170.00 ------1.80 1,170.00 Bronwyn Kettle Director 595 1.50 892.50 1.50 892.50 ------Julian Derrick Director 595 7.10 4,224.50 7.10 4,224.50 ------Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 5.90 1,917.50 - - - - 0.10 32.50 5.00 1,625.00 - - 0.80 260.00 Melissa Galletta Senior Client Accounting Admin 275 0.10 27.50 ------0.10 27.50 - - - - Sarah Hill Senior Client Accounting Admin 150 0.20 30.00 ------0.20 30.00 Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 0.20 30.00 ------0.20 30.00 - - - - Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 17.10 8,487.00 8.60 5,117.00 - - 0.10 32.50 5.30 1,682.50 - - 3.10 1,655.00 GST 848.70 Total Hours and Fees (including GST) 9,335.70

Name Classification Hourly Total Circulating Non-Circulating Mixed Rate Hours $ Hours $ Hours $ Hours $ Cliff Rocke Partner 650 0.30 195.00 - - 0.30 195.00 - - Janna Robertson Partner 650 1.80 1,170.00 0.60 390.00 1.20 780.00 - - Bronwyn Kettle Director 595 1.50 892.50 - - 1.50 892.50 - - Julian Derrick Director 595 7.10 4,224.50 - - 7.10 4,224.50 - - Natalie Buckby Senior Executive Analyst 400 ------Kate Mcleod Senior Business Analyst 325 5.90 1,917.50 0.80 260.00 - - 5.10 1,657.50 Melissa Galletta Senior Client Accounting Admin 275 0.10 27.50 - - - - 0.10 27.50 Sarah Hill Senior Client Accounting Admin 275 0.20 55.00 - - - - 0.20 55.00 Amy Gibbons Receptionist 150 ------Claire Dickinson Office Support Assistant 150 0.20 30.00 - - - - 0.20 30.00 Diana D'Amato DFD Co-ordinator 150 ------Janine Morice Document Formatting Design Mgr 150 ------James Sprivulis Business Analyst 150 ------Tracey Crawford Administration 150 ------Total Hours and Fees 17.10 8,512.00 1.40 650.00 10.10 6,092.00 5.60 1,770.00 GST 851.20 Total Hours and Fees (including GST) 9,363.20

Appendix 4 – Summary of tasks to be undertaken

Detailed below is a summary of work expected to be undertaken by task area for the period from 22 September 2014 to 3 October 2014.

Task area General description Details of tasks

Assets Reopening of listed entity  Preparation of information memorandum 11.5 hours  Liaising with interested parties $6,842.50  Assessment of offers and negotiation with purchasers

Assets subject to specific charges  Liaising with chargeholder  Sale of asset  Return of asset

Debtors (pre and post  Correspondence with debtors appointment)  Review and assessment of debtors ledgers

Creditors Creditor enquiries  Receive and follow up creditor enquiries via telephone 0.2 hours  Correspondence to creditors via mail, email and facsimile $65.00  Correspondence with committee of creditors

Secured creditor  Correspondence with secured creditor, including notification of appointment and update reports  Meetings with secured creditors

Shareholders  Correspondence and discussions with shareholders

Reports to creditors  Preparation of reports to creditors

Proofs of debts  Receipt of proofs of debt

Employees Employee enquiries  Receive and follow up employee enquiries via telephone and in person 0.5 hours  Correspondence to employees via mail, email and facsimile $162.50 Entitlements  Calculation of employee entitlements  Review of employee records, employee agreements and awards  Reconciliation of superannuation accounts  Legal advice re entitlements  Correspondence with employees re entitlements and any queries

Other employee issues  Correspondence with Centrelink, Child Support and other bodies  Correspondence with superannuation funds, ATO and state revenue offices

Statutory Books and records  Administration in relation to storage compliance 54.1 hours Books and records  Administration in relation to storage $27,522.50 ATO and other statutory reporting  Correspondence

Trading Trade on management  General trading 0.2 hours $65.00

Administration Correspondence  Calls and emails about recapitalisation strategy and risk mitigation Planning/review  Engagement planning 0.6 hours  Discussions re status of administration, strategy and outstanding issues $195.00 Document maintenance, file  Filing of documents review, checklist  Update of work programs

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Task area General description Details of tasks  File review

Insurance  Correspondence with insurance brokers re initial and ongoing insurance requirements  Review of insurance policies

Process of receipts and payments  Process of receipts, payments and journal entries into accounting system

ATO and other statutory reporting  Preparation of BAS

General administration  Risk assessment  Word processing

Remuneration  Recording of time, including details  Preparation of remuneration schedules  Invoice preparation

Litigation  General correspondence in relation to litigation  Appearing at court for appointment ratification

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Appendix 5 – Summary of tasks to be undertaken

Detailed below is a summary of work expected to be undertaken by task area for the period from 4 October 2014 to the execution of the DOCA.

Task area General description Details of tasks

Assets Listed corporate entity  Liaising with chargeholder 21 hours  Sale of asset $12,665.00  Return of asset

Debtors (pre and post appointment)  Correspondence with debtors  Review and assessment of debtors ledgers  Liaising with debt collectors and solicitors

Creditors Creditor enquiries  Receive and follow up creditor enquiries via telephone 1.5 hours  Correspondence to creditors via mail, email and facsimile $487.50 Secured creditor  Correspondence with secured creditor, including notification of appointment and update reports  Meetings with secured creditor

Shareholders  Correspondence and discussions with shareholders

Reports to creditors  Preparation of reports to creditors

Proofs of debts  Receipt of proofs of debt  Correspondence with ATO re proofs of debt  Adjudication of proofs of debt  Request further substantiation  Correspondence re outcome of adjudication

Employees Employee enquiries  Receive and follow up employee enquiries via telephone and in person 4 hours  Correspondence to employees via mail, email and facsimile $2,165.00 Entitlements  Calculation of employee entitlements  Review of employee records, employee agreements and awards  Legal advice re entitlements  Correspondence with employees re entitlements and any queries

Statutory Books and records  Receipt of books and records compliance  Retrieval of books and records from storage 32. hours $14,395.00  Administration in relation to storage ASIC  Notifications to ASIC  Correspondence with ASIC

ATO and other statutory reporting  Notification of appointment  Correspondence

Directors  Correspondence and meetings with directors

Investigation  Collection and review of books and records  Review and preparation of company nature and history  Conduct and summarise statutory searches  Preparation of comparative financial statements and deficiency statements  Review of specific transactions and liaising with directors re transactions  Preparation of investigation file  Preparation of statutory investigation report and lodgement with ASIC  Preparation and lodgement of any supplementary report  Liaising with ASIC

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Task area General description Details of tasks

Legal matters  Preparation of brief for solicitor  Liaising with solicitors

Litigation/recoveries  Review of potential recoveries  Preparation of brief for solicitor  Liaising with solicitor re recovery actions  Attendance to negotiations  Attendance to settlement matters

Trading Trade on management  Preparation and authorisations of receipt and payment forms 0.3 hours $92.50

Administration Correspondence  Emails and call with relevant parties and risk mitigation Planning/review  Engagement planning 0.6 hours  Discussions re status of administration, strategy and outstanding issues $195.00 Document maintenance, file review,  Review of administration – during first month, then 6 monthly checklist  Filing of documents  Update of work programs  File review

Insurance  Correspondence with insurance brokers re initial and ongoing insurance requirements  Review of insurance policies  Correspondence with previous brokers

Process of receipts and payments  Process of receipts, payments and journal entries into accounting system

ASIC reporting  Preparation and lodgement of ASIC forms, including 6 monthly accounts  Correspondence with ASIC regarding statutory forms

ATO and other statutory reporting  Preparation of BAS

General administration  Risk assessment  Set up of client  Processing in relation to client accounting  Word processing

Remuneration  Recording of time, including details  Preparation of remuneration schedules  Invoice preparation

Page 10

Appendix 6 – Summary of future tasks to be undertaken

Detailed below is a summary of work expected to be undertaken by task area for the period from the execution of the DOCA to the effectuation or termination of the DOCA.

Task area General description Details of tasks

Assets Assets subject to specific charges  Liaising with chargeholder 45.7 hours Corporate listed entity  Sale of asset $26,452.50  Return of asset

Debtors (pre and post appointment)  Correspondence with debtors  Review and assessment of debtors ledgers  Liaising with debt collectors and solicitors

Other preferential creditors  Correspondence and discussions with creditors holding liens, pledges and other encumbrances

Shareholders  Correspondence and discussions with shareholders  Response to any legal claims

Reports to creditors  Preparation of reports to creditors

Dividend distribution  Correspondence re intention to declare dividend  Compliance with regulations re distributions  Obtain clearance from ATO for distribution  Preparation of dividend, including calculation and payment Correspondence re dividend declaration

Employees Employee enquiries  Receive and follow up employee enquiries via telephone and in person 23 hours  Correspondence to employees via mail, email and facsimile $8,340.00 Entitlements  Calculation of employee entitlements  Review of employee records, employee agreements and awards  Reconciliation of superannuation accounts  Legal advice re entitlements  Correspondence with employees re entitlements and any queries

Employee dividend distribution  Correspondence with employees re dividend  Correspondence with ATO re SGC proof of debt  Correspondence with any other eligible employee creditor  Compliance with regulations re distributions  Adjudication of proofs of debt  Preparation of dividend, including calculation and payment  Correspondence re dividend declaration

Other employee issues  Correspondence with Centrelink, Child Support and other bodies  Correspondence with superannuation funds, ATO and state revenue offices

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Task area General description Details of tasks  Completion of PAYG Summaries

Statutory Books and records  Receipt of books and records compliance  Retrieval of books and records from storage 32.1 hours $14,432.50  Administration in relation to storage ASIC  Notifications to ASIC  Correspondence with ASIC

ATO and other statutory reporting  Notification of appointment  Correspondence

Directors  Correspondence and meetings with directors  Requests for Report as to Affairs and books and records  Preparation of affidavits seeking assistance from ASIC

Meeting of creditors  Preparation of meeting notices, proxies and advertisements  Correspondence to creditors, including mail distribution  Preparation of meeting documents, including agenda, attendance register, list of creditors etc.  Preparation and lodgement of minutes of meeting with ASIC

Committee of inspection  Preparation for committee meetings  Preparation and lodgement of minutes of meeting with ASIC

Examinations  Preparation of brief for solicitor  Liaising with solicitor re examinations  Attendance at examination  Review of examination transcripts  Liaising with solicitor re outcome of examinations and further actions available

Trading Trade on management  Preparation and authorisations of receipt and payment forms 0.3 hours  Payroll issues $92.50  Liaising with other parties, such as superannuation funds, ATO, state revenue offices, insurance brokers etc.

Budgeting and financial reporting  Review of company’s budgets, management reports and financial statements

Administration Correspondence  Emails and call with relevant parties and risk mitigation Planning/review  Engagement planning  Discussions re status of administration, strategy and outstanding issues

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Task area General description Details of tasks

0.6 hours Document maintenance, file review,  Review of administration – during first month, then 6 monthly $195.00 checklist  Filing of documents  Update of work programs  File review

Insurance  Correspondence with insurance brokers re initial and ongoing insurance requirements  Review of insurance policies  Correspondence with previous brokers

Process of receipts and payments  Process of receipts, payments and journal entries into accounting system

ASIC reporting  Preparation and lodgement of ASIC forms, including 6 monthly accounts  Correspondence with ASIC regarding statutory forms

ATO and other statutory reporting  Preparation of BAS

General administration  Risk assessment  Set up of client  Processing in relation to client accounting  Word processing

Remuneration  Recording of time, including details  Preparation of remuneration schedules  Invoice preparation

Finalisation  Notification to creditors and statutory authorities of finalisation  Cancellation of registrations, such as ABN  Completion of checklists

Page 13

Appendix 7 – Summary of future tasks to be undertaken

Detailed below is a summary of work expected to be undertaken by task area for the liquidation period from 4 October 2014 to completion.

Task area General description Details of tasks

Assets Assets subject to specific charges  Liaising with chargeholder 45.7 hours  Sale of asset $26,452.50  Return of asset

Debtors (pre and post appointment)  Correspondence with debtors  Review and assessment of debtors ledgers  Liaising with debt collectors and solicitors

Other preferential creditors  Correspondence and discussions with creditors holding liens, pledges and other encumbrances

Shareholders  Correspondence and discussions with shareholders  Response to any legal claims

Reports to creditors  Preparation of reports to creditors

Employees Employee enquiries  Receive and follow up employee enquiries via telephone and in person 23 hours  Correspondence to employees via mail, email and facsimile $8,340.00 Fair Entitlement Guarantee  Correspondence re FEG  Preparation of notification spreadsheet  Preparation of FEG quotations  Preparation of FEG distributions

Other employee issues  Correspondence with Centrelink, Child Support and other bodies  Correspondence with superannuation funds, ATO and state revenue offices  Completion of PAYG Summaries

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Task area General description Details of tasks

ATO and other statutory reporting  Correspondence

Directors  Correspondence and meetings with directors  Requests for Report as to Affairs and books and records  Preparation of affidavits seeking assistance from ASIC

Meeting of creditors  Preparation of meeting notices, proxies and advertisements  Correspondence to creditors, including mail distribution  Preparation of meeting documents, including agenda, attendance register, list of creditors etc.  Preparation and lodgement of minutes of meeting with ASIC

Ceasing to act  Notification to ASIC

Budgeting and financial reporting  Review of company’s budgets, management reports and financial statements  Planning of trading strategy  Preparation of budgets  Preparation of weekly financial reports  Review of trading strategy

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Task area General description Details of tasks

Insurance  Correspondence with insurance brokers re initial and ongoing insurance requirements  Review of insurance policies  Correspondence with previous brokers

Process of receipts and payments  Process of receipts, payments and journal entries into accounting system

ASIC reporting  Preparation and lodgement of ASIC forms, including 6 monthly accounts  Correspondence with ASIC regarding statutory forms

ATO and other statutory reporting  Preparation of BAS

General administration  Risk assessment  Set up of client  Processing in relation to client accounting  Word processing

Remuneration  Recording of time, including details  Preparation of remuneration schedules  Invoice preparation

Finalisation  Notification to creditors and statutory authorities of finalisation  Cancellation of registrations, such as ABN  Completion of checklists

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Appendix 8 – Remuneration approved

The remuneration detailed in the table below has previously been approved by the creditors.

Remuneration previously approved Amount (ex GST)

27 June 2014 to 1 August 2014 $82,417.50 Total remuneration $82,417.50

Page 17 Appendix 9 – Remuneration resolutions

At the Second Meetings of Creditors to be held on 3 October 2014, creditors of the Company will be asked to consider the following resolutions:

In respect of the period 1 August 2014 to 21 September 2014:

“That the remuneration of the Administrators for the period 1 August 2014 to 21 September 2014 in the amount of $45,044.00, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015 is approved for payment.”

In respect of the period 21 September 2014 to 3 October 2014:

“That the estimated remuneration of the Administrators for the period 21 September 2014 to 3 October 2014 is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $34,852.50 excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015.”

In respect of the period 4 October 2014 to the execution of the DOCA if BCP or HC proposal is accepted:

“That the estimated remuneration of the Administrators for the period 4 October 2014 to the execution of the DOCA is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $15,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015.”

In respect of the period 4 October 2014 to the execution of the DOCA if SCI proposal is accepted:

“That the estimated remuneration of the Administrators for the period 4 October 2014 to the execution of the DOCA is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $30,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015.

In respect of the period from the execution of the DOCA to the effectuation or termination of the DOCA if BCP or HC proposal is accepted:

“That the estimated remuneration of the Deed Administrators for the period from the execution of the DOCA to the effectuation or termination of the DOCA determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $25,000 excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.”

In respect of the period from the execution of the DOCA to the effectuation or termination of the DOCA if SCI proposal is accepted:

“That the estimated remuneration of the Deed Administrators for the period from the execution of the DOCA to the effectuation or termination of the DOCA determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $50,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.”

In respect of the period 4 October 2014 to the finalisation of the Liquidation:

“That the estimated remuneration of the Liquidators for the period 4 October 2014 to the finalisation of the Liquidation is determined and approved for payment on a monthly basis in arrears or as required, up to a maximum of $50,000, excluding GST, calculated on the basis of time at the rates as set out in the schedule titled KordaMentha Rates National FY2015. However, if the value of the work performed exceeds the capped amount, then we reserve the right to seek further approval of fees from creditors.”

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Appendix 10 – Disbursements

Disbursements paid or incurred during the period Basis Actual $ 1 August 2014 to 21 September 2014 (excluding GST)

Externally provided non-professional disbursements At cost Travel 336.68 Advertisements 4,039.56 Meals 24.09 Document storage 1,093.38 External mailhouse 904.41 Search fees 38.16 Total – Externally provided non-professional disbursements 6,436.28 Internal disbursements Per diem travel allowance 5 up to $91.05 per day 455.25 Total – Internal disbursements 455.25 Total disbursements 6,891.53

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Appendix 3 – Schedule of KordaMentha national rates

Applicable from 1 July 2013

FY 2014 Classification $ per hour*

Principal Appointee/Partner/Executive Director 625 Director 575 Associate Director 1 525 Associate Director 2 475 Manager 450 Senior Executive Analyst 375 Executive Analyst 350 Senior Business Analyst 300 Business Analyst 275 Administration 130 *Exclusive of GST

Applicable from 30 June 2014

FY 2015 Classification $ per hour*

Principal Appointee/Partner/Executive Director 650 Director 595 Associate Director 1 550 Associate Director 2 500 Manager 475 Senior Executive Analyst 400 Executive Analyst 375 Senior Business Analyst 325 Business Analyst 275 Administration 150 *Exclusive of GST

KordaMentha disbursement internal rates and allowances Description Charge*

Photocopying, printing (general) $0.02 per page Envelopes and postage (varies due to size and weight) $0.76 to $1.86 per envelope Travel Reimbursement $0.60 per kilometer Meal per diem, etc. Up to $91.05 per day per staff member (unless other arrangements made) Dataroom fee (varies based on MB size) $1,000 to $5,000 per month *Exclusive of GST

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KordaMentha disbursement policy

Disbursements incurred from third party suppliers are charged at the cost invoiced. KordaMentha does not add any margin to disbursements incurred through third parties.

There are no charges for internal KordaMentha disbursements, such as internal photocopy use, telephone calls or facsimiles, except for bulk printing and postage that is performed internally, which are calculated on a variable cost recovery basis.

In relation to any employee allowances, being kilometre allowance and reasonable travel allowance, the rate of the allowance set by KordaMentha is at or below the rate set by the Australian Taxation Office.

If a KordaMentha data room is utilised, the fee will comprise an initial setup fee and then a fee based on the duration and size of the data room.

Certain services provided by Forensic Technology may require the processing of electronically stored information into specialist review platforms. Where these specific Forensic Technology resources are utilised, the fee will be based on units (e.g. number of laptops), size (e.g. per gigabyte) and/or period of time (e.g. period of hosting).

GST is applied to disbursements as required by law.

KordaMentha classifications

Classification Guide to level of experience

Principal Appointee/Partner/Executive Director Registered/Official Liquidator/Trustee, his or her Partners. Specialist skills brought to the administration. Generally in excess of 10 years’ experience. Director More than eight years’ experience and more than three years as a Manager. Answerable to the appointee, but otherwise responsible for all aspects of an administration. Controls staffing and their training. Associate Director 1 Six to eight years’ experience with well developed technical and commercial skills. Will have conduct of minor administrations and experience in control of a small to medium team of staff. Assists with the planning and control of medium to large administrations. Associate Director 2 Five to seven years’ experience with well developed technical and commercial skills. Will have conduct of minor administrations and experience in control of a small to medium team of staff. Assists with the planning and control of medium to large administrations. Manager Four to six years’ experience. Will have had conduct of minor administrations and experience in control of one to three staff. Assists with the planning control of medium to large administrations. Senior Executive Analyst Three to four years’ experience. Assists planning and control of small to medium administrations as well as performing some of the more difficult tasks on larger administrations. Executive Analyst Two to three years’ experience. Required to control the tasks on small administrations and is responsible for assisting tasks on medium to large administrations. Senior Business Analyst Graduate with one to two years’ experience. Required to assist in day-to-day tasks under supervision of more senior staff. Business Analyst Undergraduate or graduate with up to one year experience. Required to assist in day-to-day tasks under supervision of more senior staff. Administration Appropriate skills, including books and records management and accounts processing particular to the administration.

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