1MC 0.00% 3.4¢ morella corporation limited

In the event that Applications for New Securities under the SPP...

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    In the event that Applications for New Securities under the SPP exceed the total amount ofthe New Securities offered under the plan, then Applications will be scaled back. TheDirectors propose to allocate New Securities to Eligible Shareholders equally up to $5,000,and thereafter to scale back on an equal basis.The Company cannot guarantee that all Eligible Shareholders to the SPP will receive thenumber of New Securities applied for. If an Eligible Shareholder does not receive any or allof the New Securities applied for, the excess Application Monies will be returned to theEligible Shareholder without interest.

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