VECTION TECHNOLOGIES LTD — Capital/Financing Update 2018

May 6, 2018

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ASX and Market Release

7 May 2018 | Perth Australia

ServTech secures IT Development Agreement for International eSports Platform

Highlights:

• ServTech has been awarded an IT development support contract for leading eSports Tournament platform Arcade X

• Execution of the contract formalises a successful 2-month ad-hoc trial. The contract has a commitment of circa $500,000 (ex GST) over a 2-year period

• The eSports platform is being customised and developed to integrate International Telecommunications companies across the globe

• The initial integration is for the launch of the Arcade X Mobi eSports platform for the MTN Group, Africa’s largest mobile network operator

ServTech Global Holdings Ltd (ASX: SVT) (“ServTech” or “the Company”) is pleased to announce that its wholly owned development division Technobrave Pty Ltd has been awarded a 2-year Services Contract Agreement (“Agreement”) with Emerge Gaming Solutions Pty Ltd (“Emerge”) to offer strategic insights and manage the development and maintenance of Emerge’s cutting-edge eSports platform Arcade X.

Initially, ServTech will assist Emerge with IT development support to customise their platform for a launch with MTN Group Ltd, Africa’s largest mobile network operator. The award of this contract follows a successful 2-month trial and highlights the quality and performance of ServTech’s comprehensive service offering of developers, experienced in complex languages including React with Redux, HTML5/CSS3, SaaS CSSS, Bootstrap 4 Symphony, Node.js, RabbitMQ and PostgreSQL.

Agreement Details

Commencing from 1 May 2018 this Agreement commits Emerge to a minimum spend of circa $500,000 (ex GST) with ServTech over the next 24 months.

Detailed terms of the Agreement are set out in the annexure to this announcement.

The Agreement with Emerge is the largest development contract the Company has secured since its inception. Together with the current REIWA app development project and several other contracts in the pipeline, the Agreement will ensure the development division of ServTech Global will become a profitable business unit.

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Commenting on the Agreement Simon Ingleson, ServTech General Manager noted:

"We are pleased to secure this long-term agreement with Emerge Gaming following the successful two-month trial to assist with their MTN customisation. The team exceeded all expectations and key deliverables and I am confident this contract will showcase the talent, capabilities and professionalism of the ServTech development team and assist in securing similar large-scale development projects contracts both locally and internationally, in the months ahead. I look forward to working with the team at Emerge Gaming to deliver outstanding technology outcomes over the next 24 months.”

This Agreement will be fundamental in positioning ServTech as a technology solutions provider, attracting more quality development over the coming months and positions the Company for profitable growth and expansion.

For more information:

ServTech Global Holdings Limited +61 8 6380 2555 servtechglobal.com.au

About ServTech Global Holdings Limited

ServTech Global is an ASX listed public company (ASX: SVT) specialising in outsourced office, custom software development and Software as a Service (‘SaaS’) solutions that aim to reduce the cost and administrative burdens of running a business.

These solutions allow business owners, franchisees and small to medium sized business operators to spend more time growing their business, servicing the needs of their customers and increasing their profitability by removing the time and cost burden of recording and reporting transactions, administrative tasks and back office functions.

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Annexure – Agreement Terms and Conditions

The material terms and conditions of the Agreement are set out below:

• a) The parties are Emerge Gaming Solutions Pty Ltd (“the Company”) and Technobrave Pty Ltd (“the Supplier”.)

• b) Commencement date is 1 May 2018.

• c) ( Term ): Twenty-four (24) months from Commencement date.

• d) ( Termination by Notice ): either the Company or the Supplier may terminate the Agreement by providing three (3) months’ notice to the other party.

• e) ( Termination with Immediate effect ): The Company may terminate the Agreement by notice with immediate effect if:

• a. the Supplier does not provide the Services within the time, or at the standard, required or otherwise breaches a provision of this document and that failure or breach:

  • i. is incapable of remedy; or

  • ii. if capable of remedy, continues for 7 days after the Company gives the Supplier a notice requiring the breach to be remedied;

• b. the Supplier:

  • i. disobeys any lawful order, directive or policy of the Company;

  • ii. repeatedly breaches or fails to observe any of the terms and conditions contained in this document;

  • iii. engage in any of the following activities:

    1. stealing from the Company;

    2. falsifying documents of the Company;

    3. destroying property belonging to the Company;

    4. committing the Company to liabilities beyond the Supplier’s authority; or

    5. engaging in conduct of a kind which, in the reasonable opinion of the Company, is likely to bring the Company into disrepute;

  • iv. becomes of unsound mind or permanently incapacitated by reason of accident or illness; or

• c. a conflict of interest is notified to the Company.

• f) ( Services ): The Supplier will manage the development and maintenance of the eSports platform of the Company or any of its related body corporate, in a timely and professional manner, as agreed by the Supplier and the Company from time to time.

• g) ( Fees ):

• a. The parties acknowledge that for the period commencing on 1 March 2018 and ending 31 March 2018, a fee of $51,590 (ex GST) is due and payable, for the provision of services;

• b. The parties acknowledge that for the period commencing on 1 April 2018 and ending 30 April 2018, a fee of $30,000 (ex GST) for the provision of the Services is due;

• c. For the period commencing on 1 May 2018 and ending 30 June 2018, a monthly fee of $30,000 (ex GST) for the provision of the Services is payable monthly in advance; and

• d. For the period commencing on 1 July 2018 and ending on 30 April 2020, a monthly fee of $19,500 (ex GST), for the provision of the Services, is payable monthly in advance.

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