Ann: Trading Halt, page-7

"
The agreement constitutes:

1. i. a zero interest rate convertible security in the amount of between AU$500,000 to AU$1,000,000 (with a maximum face value of AU$1,060,000), to be called on at the Company’s discretion within the first six months following execution of the agreement;
2. ii. equity purchases of up to AU$700,000 per month through the issue of ordinary fully paid shares at an issue price of 90% of the volume weighted average price of the company’s shares during a predetermined pricing period. For one monthly tranche only, the share price may be equal to 130% of the average of the daily volume weighted average price of the company’s shares for the 20 trading days prior to the execution. Further, the Company will retain the ability to refuse to issue shares in a particular month if the share price falls below the floor price protection level of AU$0.04;
3. iii. the amounts funded under the agreement will bear no interest and will be unsecured against the company’s assets except for 3,000,000 shares, which will be issued as a security;
4. iv. a commitment fee of AU$100,000 each, in shares, at execution and on the date that the Company elects to receive the funding;
5. v. 7,000,000 unlisted options, which will be issued as follows:
   • o 3,500,000 options, issued on execution and exercisable at 120% of the average of the daily VWAPs for the 20 trading days immediately prior to the date of the execution
   • o 3,500,000 options, issued on date of first funding and exercisable at 120% of the average of the daily VWAPs for the 20 trading days immediately prior to the date of the funding