Document:

Exhibit

	
	
	 

	Morobe Consolidated Goldfields Limited
Harmony Gold (Australia) Pty Ltd
Westpac Bank ‐ PNG ‐ Limited

	 

	Facility Agreement

	 

	 

	Level 6, Mogoru Moto Building
Champion Parade
Port Moresby
Papua New Guinea
T  +675  305 6000
F  +675  320 0588
www.allens.com.au

©  Allens Papua New Guinea 2019

Our associated firm Allens is an independent partnership operating in alliance with Linklaters LLP.

	
		
	Facility Agreement
	

Contents
	
				
	1
	Definitions and interpretation
	1

	 
	1.1
	Definitions
	1

	 
	1.2
	Interpretations
	8

	 
	1.3
	Cancellation of reduction in Facility Limit
	9

	 
	1.4
	Document or agreement
	9

	 
	1.5
	Determination, statement and certificate
	10

	 
	1.6
	Accounting terms
	10

	 
	1.7
	Listing requirements included as law
	10

	 
	1.8
	Trust
	10

	 
	1.9
	Consents and Opinions
	10

	 
	1.10
	Multiple Obligors
	10

	2
	Purpose
	11

	3
	Drawdown Notices and Drawings
	11

	 
	3.1
	Drawdown Notices
	11

	 
	3.2
	Number of Drawings
	11

	4
	Facility
	11

	 
	4.1
	Advance of Drawing
	11

	 
	4.2
	Interest
	11

	5
	Funding Periods
	11

	6
	Fees
	12

	 
	6.1
	Establishment fee
	12

	 
	6.2
	Fees not refundable or rebatable
	12

	7
	Cancellation of Commitment
	12

	8
	Repayment
	12

	 
	8.1
	Repayment of Facility
	12

	 
	8.2
	Repayment
	12

	 
	8.3
	Secured Money
	12

	9
	Prepayments
	12

	 
	9.1
	Voluntary prepayments
	12

	 
	9.2
	Interest and break costs
	13

	 
	9.3
	Limitation on prepayments
	13

	 
	9.4
	Application against repayment instalments
	13

	10
	Payments
	13

	 
	10.1
	Manner
	13

	 
	10.2
	Payment to be made on Business day
	13

	 
	10.3
	Appropriation where insufficient money available
	13

	11
	Taxation
	13

	 
	11.1
	Additional payments
	13

	 
	11.2
	Tax credits
	13

	12
	Change in Law
	14

	 
	12.1
	Illegality
	14

	 
	12.2
	Increased costs
	14

	 
	12.3
	Voluntary prepayment on Change in Law
	14

	 
	12.4
	Minimisation
	15

	 
	12.5
	Change in Law
	15

	
		
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	13
	Market Disruption
	15

	 
	13.1
	Market disruption
	15

	 
	13.2
	Alternative basis of interest or funding
	15

	 
	13.3
	Confidentiality
	16

	14
	Conditions Precedent
	16

	 
	14.1
	Conditions precedent
	16

	 
	14.2
	Further conditions precedent
	16

	15
	Representations and Warranties
	16

	 
	15.1
	Obligor representation and warranties
	16

	 
	15.2
	Borrower representations and warranties
	19

	 
	15.3
	Reliance on representations and warranties
	20

	16
	Undertakings
	20

	 
	16.1
	General undertakings
	20

	 
	16.2
	Undertakings relating to Secured Property
	23

	 
	16.3
	Term of undertakings
	26

	17
	Casualty Event
	26

	18
	Event of Default
	26

	 
	18.1
	Events of Default
	26

	 
	18.2
	Consequences
	29

	19
	Guarantee
	30

	 
	19.1
	Interpretation
	30

	 
	19.2
	Consideration
	30

	 
	19.3
	Guarantee
	30

	 
	19.4
	Indemnity
	30

	 
	19.5
	Payment obligation
	31

	 
	19.6
	Unconditional nature of obligation
	31

	 
	19.7
	Principal and independent obligation
	32

	 
	19.8
	No marshalling
	32

	 
	19.9
	No competition
	32

	 
	19.10
	Suspense account
	32

	 
	19.11
	Rescission of payment
	32

	 
	19.12
	Continuing guarantee and indemnity 
	33

	 
	19.13
	Variations
	33

	 
	19.14
	Judgement
	33

	 
	19.15
	Conditions precedent
	33

	20
	Review of Facility
	33

	 
	20.1
	Review Event
	33

	 
	20.2
	Clause does not affect the Lender's other rights
	34

	21
	Interest on Overdue Amount
	34

	 
	21.1
	Accrual and payment
	34

	 
	21.2
	Rate
	34

	22
	Indemnities and Break Costs
	34

	 
	22.1
	Indemnities
	34

	 
	22.2
	Break costs
	35

	23
	'Know Your Customer' Checks
	35

	 
	 
	 

	
		
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	24
	Currency Indemnity
	35

	 
	24.1
	General
	35

	 
	24.2
	Reimbursement
	36

	25
	Expenses
	36

	26
	Stamp Duties and GST
	36

	 
	26.1
	Stamp duties
	36

	 
	26.2
	GST
	36

	27
	Set-Off
	37

	28
	Waivers, Remedies Cumulative
	37

	29
	Severability of Provisions
	37

	30
	Survival of Obligation
	37

	31
	Personal properties securities law
	38

	 
	31.1
	PPSA security interests
	38

	 
	31.2
	PPSA undertaking
	38

	 
	31.3
	Costs of further steps and undertaking
	38

	 
	31.4
	General PPSA provisions
	38

	32
	Moratorium Legislation
	39

	33
	Assignments
	39

	 
	33.1
	Assignment by Obligor
	39

	 
	33.2
	Assignment by Lender
	39

	 
	33.3
	Securitisation
	39

	 
	33.4
	Disclosure
	39

	 
	33.5
	Non increased costs
	39

	 
	33.6
	Execution of further documentation
	39

	34
	Notices
	40

	 
	34.1
	Notices
	40

	 
	34.2
	Notices sent my email
	40

	 
	34.3
	Receipt of Notices sent by email
	41

	35
	Confidentiality
	41

	 
	35.1
	Confidentiality
	41

	 
	35.2
	Permitted disclosure
	41

	 
	35.3
	Privacy Statement
	42

	 
	35.4
	Survival of obligation
	42

	36
	Authorised Officers
	43

	37
	Governing law and jurisdiction
	43

	38
	Counterparts
	43

	39
	Acknowledgement by each Obligor
	43

	40
	Borrower as agent
	43

	41
	Anti-Money Laundering
	43

	Schedule 1
	 
	44

	 
	 
	Notice Details
	44

	Schedule 2
	 
	45

	 
	 
	Aproved Equipment
	45

	Schedule 3
	 
	48

	 
	 
	Conditions Precedent
	48

	 
	 
	 
	 

	
		
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	Schedule 4
	 
	50

	 
	 
	Drawdown Notice
	50

	Schedule 5
	 
	51

	 
	 
	Verification Certificate
	51

	Schedule 6
	 
	53

	 
	 
	Privacy Statement
	53

	
		
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	This Agreement is made on 9 July 2018

	Parties

	1
	Morobe Consolidated Goldfields Limited (Company No. 1-12047) incorporated in Papua New Guinea with its registered office at c/- Ashurst, Mogoru Moto Building, Level 4, Champion Parade, Port Moresby, National Capital District, 121, Papua New Guinea (the Borrower).

	2
	Harmony Gold (Australia) Pty Ltd (ACN 091 439 333) incorporated in Australia with its registered office at Level 2, 189 Coronation Drive, Milton, Queensland, Australia (the Guarantor). 

	3
	Westpac Bank – PNG – Limited (Company No. 1-5295) incorporated in Papua New Guinea with its registered office at Level 1, Jeffrey Haus, Corner of Champion Parade and Musgrave Street, Port Moresby, National Capital District, Papua New Guinea (the Lender).

	Recitals

	A    
	The Borrower and the Guarantor have requested the Lender to provide the Borrower with a Facility under which financial accommodation may be made available to the Borrower.

	B    
	The Lender has agreed to provide that Facility subject to (amongst other things) the execution of this Agreement and the other Finance Documents.

It is agreed as follows.

		
	1
	Definitions and Interpretation

		
	1.1
	Definitions

The following definitions apply unless the context requires otherwise.
Ancillary Security means any Security or other document or agreement at any time given by the Borrower and created or entered into as security for any Secured Money.
Approved Purpose means to assist with financing, or reimbursement of the Borrower's costs in relation to purchase, of the Approved Equipment.
Approved Equipment means each item of equipment described in Schedule 2 or any other equipment agreed from time to time by the Lender to be Approved Equipment, together with:
		
	(a)
	the appliances, components, accessories, furnishings and other equipment incorporated or installed in, or attached to, the equipment; and

		
	(b)
	the instructions or maintenance manuals for the equipment.

Associate in relation to an entity means:
		
	(a)
	a Related Entity of that entity;

		
	(b)
	an entity, or the trustee or manager of a trust, which has a controlling interest in that entity or a Related Entity of that entity;

		
	(c)
	a Related Entity of an entity included in paragraph (b) or (e);

		
	(d)
	a director of that entity or of an entity included in paragraph (a), (b) or (c) or of the manager or of the trustee of any trust included in paragraph (a), (b) or (c) or a spouse, child, parent or sibling of that director;

		
	(e)
	a corporation, or the trustee or manager of a trust, in which one or more entity or person mentioned in paragraph (a), (b), (c), (d), (e), (f) or (g) alone or together has a controlling interest;

		
	(f)
	the trustee of a discretionary trust of which an entity or person included in paragraph (a), (b), (c), (d), (e), (f) or (g) is a beneficiary (whether or not through one or more other discretionary trusts); or

		
	(g)
	an entity of which a director of that entity or a Related Entity of that entity is also a director.

For the purposes of this definition:

	
		
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	(i)
	where a person is a beneficiary of a discretionary trust, that person will be taken to own, and control, all the assets of that trust;

		
	(ii)
	a person has a controlling interest in a corporation or trust if:

		
	(A)
	the corporation or its directors, or the trustee or manager of the trust or its directors, are accustomed, or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of that person or of that person in concert with others; or

		
	(B)
	the person has a direct or indirect interest in total in more than 20% of the issued or voting shares, units or other interests in the corporation or trust (in number, voting power or value), or would have that relevant interest if any rights were exercised to subscribe for, or acquire or convert into, shares, units or other interests which are issued or unissued.  

Authorisation includes:
		
	(a)
	any consent, authorisation, registration, filing, lodgement, agreement, notarisation, certificate, permission, licence, approval, authority or exemption from, by or with a Government Agency; or

		
	(b)
	in relation to anything which will be fully or partly prohibited or restricted by law if a Government Agency intervenes or acts in any way within a specified period after lodgement, filing, registration or notification, the expiry of that period without intervention or action.

Authorised Officer means:
		
	(a)
	in respect of any Obligor, any director or secretary, or any person from time to time nominated as an Authorised Officer by it by a notice to the Lender:

		
	(i)
	in respect of which the identity of that person has been verified to the Lender's satisfaction in order to manage the Lender's anti money laundering, counter terrorism financing or economic and trade sanctions risk or to comply with any laws or regulations in Papua New Guinea or any other country (and the Lender has not received notice of revocation of the appointment); and

		
	(ii)
	accompanied by certified copies of signatures of all new persons so appointed and identification documents sufficient to satisfy the Lender's 'know your customer' requirements; and

		
	(b)
	in respect of the Lender, any person whose title or acting title includes the word director, head, chief, counsel, executive, manager, attorney or president or cognate expressions, or any secretary or director, or any lawyer acting for the Lender.

Availability Period means the period commencing on the date of this Agreement and ending on the earliest of:
		
	(a)
	the Drawdown Date;

		
	(b)
	the date 30 days after the date of this Agreement; and

		
	(c)
	the date on which the Commitment is cancelled.

Bus means the Approved Equipment specified at item 49, 50, 52, 53, 54, 55 or 56 of Schedule 2.
Bus delivery date means, in relation to a Bus, the earlier of:
		
	(a)
	the date on which that Bus is delivered to the Site; and

		
	(b)
	31 August 2018,

or such later date as the Lender may agree.
Business Day means a weekday on which banks are generally open for commercial banking business in Port Moresby, Papua New Guinea and Sydney, Australia.

	
		
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Casualty Event means:
		
	(a)
	the loss of, or the loss of use of, any Approved Equipment due to destruction, theft or damage beyond repair;

		
	(b)
	the sale of any Approved Equipment by the Borrower;

		
	(c)
	the occurrence of a Compulsory Acquisition Event in relation to any Approved Equipment; or

		
	(d)
	a total loss of any Approved Equipment declared by its insurer under the relevant Insurance Policy, or

		
	(e)
	in relation to a Bus, the Bus Delivery Date for that Bus does not occur by 31 August 2018 (or such later date as the Lender may agree).

Change in Control means, in relation to an Obligor, any event or circumstance where, without the Lender's prior written consent, direct or indirect ownership, management or control of that Obligor is, in the opinion of the Lender, changed in any material respect from that subsisting at the date of this Agreement. For the purposes of this definition, control means, in relation to any entity, the ability of any person to control:
		
	(a)
	the composition of the board of directors of that entity;

		
	(b)
	more than half the voting rights attaching to shares in that entity; or

		
	(c)
	more than half the issued share capital of that entity.

Commitment means the Facility Limit as reduced or cancelled under this Agreement. 
Compulsory Acquisition Event means, in relation to an asset:
		
	(a)
	the asset being compulsorily acquired by or by order of a Government Agency or under law;

		
	(b)
	a Government Agency ordering the sale, vesting or divesting of the asset; or

		
	(c)
	a Government Agency taking a step for the purpose of any of the foregoing or proposing or threatening to do any of the foregoing.

Current Accounting Practice at any time, means accounting principles and practices applying by law or otherwise generally accepted in Papua New Guinea at that time, consistently applied.
Defect means:
		
	(a)
	any defect in the condition, design, construction, performance, operation or fitness for use of any Approved Equipment;

		
	(b)
	any defect in the Borrower's title to any Approved Equipment;

		
	(c)
	any prohibition or interruption of, or other restriction on, the use, operation or possession of any Approved Equipment for any reason;

		
	(d)
	any damage to, or loss or destruction of, any Approved Equipment (including, without limitation, any loss or damage incurred in the course of the delivery of any Approved Equipment to any person); or

		
	(e)
	any requisitioning, confiscation or impounding of any Approved Equipment.

Derivative Transaction means a swap, option, hedge, forward, futures or similar treasury transaction.
Drawdown Date means the date on which any accommodation under this Agreement is or is to be or is deemed to be drawn. 
Drawdown Notice means a notice under clause 3.
Drawing means each portion of the accommodation made available under this Agreement.
Environmental Law means a provision of a law or a law, which relates to an aspect of planning, the environment, heritage, health or safety.

	
		
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Equator Principles means those principles (including minimum applicable environmental and social standards) adopted by the Equator Principles Financial Institutions from time to time , as published by The Equator Principles Association.
Event of Default means any of the events specified in clause 17.
Excluded Tax means a Tax imposed by a jurisdiction on the net income of the Lender because the Lender has a connection with that jurisdiction but not a Tax:
		
	(a)
	calculated by reference to the gross amount of a payment under a Finance Document (without the allowance of a deduction); or

		
	(b)
	imposed because the Lender is taken to be connected with that jurisdiction solely because it is party to a Finance Document or a transaction contemplated by a Finance Document.

Facility means the term loan facility provided to the Borrower under this Agreement in an amount up to the Facility Limit.
Facility Limit means the lesser of:
		
	(a)
	USD25,000,000; or

		
	(b)
	80% of the aggregate value ascribed to the Approved Equipment in the Valuation delivered to the Lender pursuant to clause 14.1 (Conditions precedent),

(or as agreed between the Borrower and the Lender in writing from time to time).
Final Repayment Date means the date four years after the Drawdown Date. 
Finance Debt means indebtedness (whether actual or contingent) in respect of money borrowed or raised or other financial accommodation. It includes indebtedness under or in respect of:
		
	(a)
	a bill of exchange, bond, debenture, note or similar instrument;

		
	(b)
	a Guarantee of Finance Debt or a Guarantee given to a financier;

		
	(c)
	a hire-purchase arrangement;

		
	(d)
	a finance or operating Lease;

		
	(e)
	a Derivative Transaction;

		
	(f)
	an acceptance, endorsement or discounting arrangement;

		
	(g)
	a redeemable share or redeemable stock; or

		
	(h)
	the deferred purchase price (for more than 90 days) of an asset or service,

or an obligation to deliver assets or services paid for in advance by a financier or otherwise relating to a financing transaction.
Finance Document means:
		
	(a)
	this Agreement;

		
	(b)
	a Drawdown Notice; 

		
	(c)
	a Security Document;

		
	(d)
	any other consent deed or tripartite agreement (however called) entered into by the Lender and one or more Obligors with a third party or parties;

		
	(e)
	each priority deed or intercreditor agreement (however called) entered into by the Lender, one or more Obligors and one or more third parties;

		
	(f)
	any Guarantee or Security in respect of any of the Secured Money; 

		
	(g)
	any limit letter between the Lender and the Borrower relating to the Facility;

		
	(h)
	any document or agreement which an Obligor and the Lender agree is a Finance Document; or 

	
		
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	(i)
	any document or agreement entered into or provided under or in connection with, or for the purpose of amending or novating, any of the above. It includes a written undertaking by or to a party or its lawyers under or in relation to any of the above. 

Financial Reports means balance sheet, income and cashflow statements together with any statements, reports (including any directors' and auditors' reports) and notes attached to or intended to be read with any of them. 
Funding Period means a period for the fixing of interest rates for the Drawing. The period commences on the Drawdown Date or the last day of the preceding Funding Period (as appropriate) and has a duration determined under clause 5 (Funding Periods).
Government Agency means any government or any governmental, semi-governmental or judicial entity or authority. It also includes any self-regulatory organisation established under statute or any stock exchange.
GST means any goods and services or similar tax, together with any related interest, penalties, fines or other charge.
Guarantee means an obligation or offer to provide funds (including by subscription or purchase) or otherwise be responsible in respect of an obligation or indebtedness, or the financial condition or insolvency, of another person. It includes a guarantee, indemnity, letter of credit or legally binding letter of comfort, or an obligation or offer to purchase an obligation or indebtedness of another person.
IFRS means international accounting standards within the meaning of the IAS Regulation 1606/2002.
Intellectual Property means any intellectual or industrial property including:
		
	(a)
	a patent, trade mark or service mark, copyright, registered design, trade secret or confidential information; or

		
	(b)
	a licence or other right to use or to grant the use of any of the above or to be the registered proprietor or user of any of the above.

Interpolated Screen Rate means, in relation to any Funding Period for the Drawing, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between: 
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Funding Period for the Drawing; and 

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Funding Period for the Drawing, 

each as of 11am London time on the first day of that period for USD. 
Lease means an agreement under which an asset may be used, exploited, operated or managed by a person other than the owner. It includes a lease, licence, charter, hire purchase or hiring arrangement.
LIBOR means, in respect of any Funding Period in respect of the Drawing: 
		
	(a)
	the applicable Screen Rate as of 11am London time on the first day of that period for USD and for a period equal in length to the Funding Period for the Drawing; or 

		
	(b)
	if no Screen Rate is available for LIBOR for that period, the applicable LIBOR shall be the Interpolated Screen Rate for a period equal in length to the Funding Period of the Drawing; or 

		
	(c)
	if no Screen Rate is available for LIBOR for: 

		
	(i)
	USD; or 

		
	(ii)
	a period equal in length to the Funding Period and it is not possible to calculate the Interpolated Screen Rate, 

	
		
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the rate of interest notified to the Borrower to be that which expresses as a percentage rate per annum, the cost to the Lender of funding the Drawing from whatever source it may reasonably select. That rate is to be notified before interest is due to be paid in respect of that period. 
Liquidation includes receivership or other appointment of a controller, deregistration, compromise, deed of arrangement, amalgamation, administration, reconstruction, winding up, dissolution, assignment for the benefit of creditors, arrangement or compromise with creditors, death or bankruptcy.
Margin means 3.20% per annum.
Marketable Security has the meaning given to the term security in the Companies Act 1997, but also includes:
		
	(a)
	an interest in a company that is a share within the meaning of the Companies Act 1997;

		
	(b)
	a unit or other interest in a trust or partnership;

		
	(c)
	a negotiable instrument; and

		
	(d)
	a right or an option in respect of a Marketable Security, whether issued or unissued, including any of the above.

Material Adverse Effect means a material adverse effect on:
		
	(a)
	the business, operation, property or condition (financial or otherwise) of an Obligor;

		
	(b)
	the ability of an Obligor to perform its obligations under a Finance Document;

		
	(c)
	the effectiveness or priority of any Security granted by the Borrower under a Security Document; 

		
	(d)
	the validity or enforceability of the whole or any material part of any Finance Document or any material rights or remedies of the Lender under any Finance Document; or

		
	(e)
	the value of the Secured Property or the security of the Lender (determined as a whole).

Obligor means:
		
	(a)
	the Borrower; or

		
	(b)
	the Guarantor.

Original Value means:
		
	(a)
	in relation to an item of Approved Equipment identified in Schedule 2 and forming part of the Secured Property, the value ascribed to that item of Approved Equipment in the Valuation delivered to the Lender pursuant to clause 14.1; or

		
	(b)
	in relation to an item of Approved Equipment provided as Satisfactory Security pursuant to clause 17.1(a)(ii) (Replacement Approved Equipment), the Original Value of the item of Approved Equipment that such Replacement Approved Equipment replaced (or if that Approved Equipment was replaced by more than one item of Replacement Approved Equipment, the proportion of the Original Value that the value of the relevant Replacement Approved Equipment bears to the aggregate value of all Replacement Approved Equipment for that relevant Approved Equipment as provided in the relevant Valuation for such Replacement Approved Equipment delivered pursuant to clause 17.1(b)).

Papua New Guinea means the Independent State of Papua New Guinea.
Permitted Security means: 
		
	(a)
	a Security Document or any Ancillary Security;

		
	(b)
	any lien created by operation of law in the ordinary course of day‐to‐day trading and not securing Finance Debt, which secures an obligation that is not yet due, or, if due, is being contested in good faith and for which adequate reserves are held for payment;

	
		
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	(c)
	a charge or lien arising in favour of a Government Agency by operation of statute unless there is default in payment of money secured by that charge or lien;

		
	(d)
	any Security subject to a priority arrangement with the Lender on terms (including as to ranking) satisfactory to the Lender; or

		
	(e)
	any Security granted by an Obligor to which the Lender has given its prior written consent.

PGK Equivalent means at any relevant date, in relation to any relevant USD denominated amount, the amount of Kina which, when converted into USD utilising the Lender's spot rate of exchange for the purchase of Kina with USD at or about 11:00am on the relevant date, is equal to the relevant USD denominated amount. 
Potential Event of Default means anything which with notice, time or both would become an Event of Default.
PPSA means the Personal Property Security Act 2011.
Principal Outstanding means, at any time, the total principal amount of all outstanding Drawings at that time.
Privacy Statement means the current version of the Lender's privacy statement, as provided to the Borrower (on behalf of the Obligors) from time to time, being that set out in Schedule 6 as at the date of this Agreement. 
Project means the mining operations conducted by the Borrower in relation to the Hidden Valley Mine in Morobe Province, Papua New Guinea. 
Proportionate Principal Outstanding at any time in relation to an item of Approved Equipment affected by a Casualty Event, means the proportion of the Principal Outstanding at that time equivalent to the proportion that the Original Value of that Approved Equipment is to the aggregate Original Values of all Approved Equipment forming part of the Secured Property.
Related Entity means, in relation to an entity (the first entity):
		
	(a)
	a Subsidiary of the first entity;

		
	(b)
	an entity of which the first entity is a Subsidiary; or

		
	(c)
	a Subsidiary of another entity of which the first entity is also a Subsidiary.

Review Event means any Change in Control of the Guarantor. 
Satisfactory Security means, in respect of any asset, a first ranking Security over that asset to secure the Secured Money where the Lender has received documents or evidence in connection with the Security satisfactory to the Lender (including, where requested, legal opinions).
Screen Rate means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on page LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate). 
Secured Money means all money which the Borrower or the Guarantor (whether alone or not) is or at any time may become actually or contingently liable to pay to or for the account of the Lender (whether alone or not) for any reason whatever under or in connection with a Finance Document, whether or not contemplated at the date of this Agreement.
It includes money by way of principal, interest, fees, costs, indemnity, charges, duties or expenses or payment of liquidated or unliquidated damages under or in connection with any Finance Document, or as a result of a breach of or default under or in connection with any Finance Document.
It also includes money that the Borrower or the Guarantor would have been liable to pay but for its Liquidation, or some other reason.
Secured Property means the property mortgaged, charged or otherwise subject to Security under the Specific Security Deed, any Ancillary Security or any other Finance Document.

	
		
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Security includes any mortgage, pledge, lien or charge or any security or preferential interest or arrangement of any kind. It includes:
		
	(a)
	anything which gives a creditor priority to other creditors with respect to any asset; 

		
	(b)
	retention of title and a deposit of money by way of security; and

		
	(c)
	a security interest under the PPSA.

Security Document means:
		
	(a)
	the Specific Security Deed; or

		
	(b)
	any Ancillary Security.

Site means the site of the Hidden Valley Mine in Morobe Province, Papua New Guinea.
Specific Security Deed means the specific security deed dated on or about the date of this Agreement under which the Borrower creates a Security over the Approved Equipment and related rights. 
Subsidiary means:
		
	(a)
	an entity of which a person has direct or indirect control or owns directly or indirectly more than 50% of the voting capital or similar right of ownership and control for this purpose means the power to direct the management and the policies of the entity whether through the ownership of voting capital, by contract or otherwise; or

		
	(b)
	an entity treated as a subsidiary in the financial statements of any person pursuant to IFRS or Current Accounting Practice as the case may be.

Supplier means any manufacturer, supplier, servicer, dealer or distributor of any Approved Equipment.
Tax includes any tax, levy, impost, deduction, charge, rate, duty, compulsory loan or withholding which is levied or imposed by a Government Agency, and any related interest, penalty, charge, fee or other amount.
Valuation means a valuation of an asset of the Borrower in a form acceptable to the Lender, addressed to or capable of being relied upon by the Lender, prepared by a Valuer acting on the instructions of the Lender, such valuation not being more than three months old at the date it is accepted by the Lender.
Valuer means a licensed, reputable valuer acceptable to the Lender. 

		
	1.2
	Interpretation

		
	(a)
	Headings are for convenience only and do not affect interpretation.

		
	(b)
	The meaning of terms is not limited by specific examples introduced by including, or for example, or similar expressions.

		
	(c)
	Nothing in this Agreement is to be interpreted against a party on the ground that the party put it forward.

		
	(d)
	The following rules apply unless the context requires otherwise:

		
	(i)
	the singular includes the plural and the converse;

		
	(ii)
	a gender includes all genders;

		
	(iii)
	where a word or phrase is defined, its other grammatical forms have a corresponding meaning;

		
	(iv)
	a reference to a person, corporation, trust, partnership, unincorporated body or other entity includes any of them;

	
		
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	(v)
	a reference to a clause, annexure or schedule is a reference to a clause of, or annexure or schedule to, this Agreement;

		
	(vi)
	a reference to a party to this Agreement or another agreement or document includes the party's successors and permitted substitutes or assigns;

		
	(vii)
	a reference to legislation or to a provision of legislation includes a modification or re-enactment of it, a legislative provision substituted for it and a regulation, statutory instrument, code or other thing issued under it;

		
	(viii)
	a reference to writing includes a facsimile transmission and any means of reproducing words in a tangible and permanently visible form;

		
	(ix)
	a reference to conduct includes an omission, statement or undertaking, whether or not in writing;

		
	(x)
	each paragraph of a list is to be construed independently; none limits any other;

		
	(xi)
	the meaning of terms is not limited by specific examples introduced by including, or for example, or similar expressions;

		
	(xii)
	a reference to property or an asset includes any real or personal, present or future, tangible or intangible property or asset (including Intellectual Property) and any right, interest, revenue or benefit in, under or derived from the property or asset;

		
	(xiii)
	a reference to disposal means to enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset;

		
	(xiv)
	an Event of Default continues until it has been waived in writing by the Lender; 

		
	(xv)
	a reference to an amount for which a person is contingently liable includes an amount which that person may become actually or contingently liable to pay if a contingency occurs, whether or not under an existing obligation;

		
	(xvi)
	unless otherwise specified, all references to time are to Port Moresby time;

		
	(xvii)
	a reference to PGK or Kina means a reference to Papua New Guinea Kina (being the lawful currency for the time being of Papua New Guinea); and

		
	(xviii)
	a reference to USD is a reference to United States dollars.

		
	1.3
	Cancellation or reduction in Facility Limit

Any reduction or cancellation of all or any part of the Commitment under this Agreement will automatically result in an equivalent reduction or cancellation of the Facility Limit.

		
	1.4
	Document or agreement

A reference to:
		
	(a)
	an agreement includes a Security, Guarantee, undertaking, deed, agreement or legally enforceable arrangement whether or not in writing; and

		
	(b)
	a document includes an agreement (as so defined) in writing or a certificate, notice, instrument or document.

A reference to a specific agreement or document includes it as amended, novated, supplemented or replaced from time to time, except to the extent prohibited by this Agreement.

	
		
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	1.5
	Determination, statement and certificate

Except where otherwise provided in this Agreement any determination, statement or certificate by the Lender or an Authorised Officer of the Lender provided for in this Agreement is conclusive. It binds the parties in the absence of manifest error. 

		
	1.6
	Accounting terms

		
	(a)
	Accounting terms are to be interpreted according to Current Accounting Practice.

		
	(b)
	The parties acknowledge that changes to Current Accounting Practice on or after the date of this Agreement may make the interpretation of certain defined terms and other clauses of this Agreement which refer to Current Accounting Practice inappropriate or uncertain.

		
	(c)
	If the Borrower or the Lender considers that such a change has occurred, it may notify the other to that effect (the Notification Date) and the Borrower and the Lender each agree to negotiate with each other in good faith to agree appropriate amendments to the affected clauses and/or definitions to take such change into account.

		
	(d)
	If the Borrower and the Lender fail to agree on the appropriate amendments to the affected clauses and/or definitions within 20 Business Days of the Notification Date, then any reference to Current Accounting Practice in this Agreement or in any other Finance Document will be deemed to be a reference to Current Accounting Practice as at the date of this Agreement.

		
	(e)
	Unless and until agreement is reached by the Borrower and the Lender in accordance with this clause, the Borrower will provide all Financial Reports and all other financial information required to be provided in accordance with the Finance Documents together with, in each case, any reconciliation statements (audited, where applicable) necessary to enable the calculation of the financial undertakings and associated definitions based on the Current Accounting Practice prior to the relevant change occurring and those changes will be ignored for the purposes of the financial undertakings and the relevant definitions.

		
	1.7
	Listing requirements included as law

A listing rule, business rule or market integrity rule of a financial market will be regarded as a law.

		
	1.8
	Trust

Unless the context requires otherwise, a reference to a transaction, asset, act or liability of any nature of an Obligor includes its transactions, assets, acts or liabilities as trustee. Where an Obligor incurs an obligation, it incurs that obligation both in its own right and in its capacity as trustee, unless the obligation relates only to an asset which it holds in its own right and not as trustee. A reference to a Related Entity of an Obligor includes a Related Entity of any trust of which it is trustee.

		
	1.9
	Consents and Opinions

Except where expressly stated, the Lender may give or withhold, or give conditionally, approvals and consents, may be satisfied or unsatisfied, may form opinions, and may exercise its rights, powers and remedies, at its absolute discretion.

		
	1.10
	Multiple Obligors

		
	(a)
	Unless the context otherwise requires, a reference to 'the Borrower' or 'a Borrower', 'the Guarantor' or 'a Guarantor' or 'the Obligor' or 'an Obligor' in a Finance Document if there 

	
		
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are more than one, includes a reference to each of them individually and to any two or more of them together.
		
	(b)
	The liability of (or an obligation) on a Guarantor or an Obligor (in those capacities) under a Finance Document if there are more than one is joint and several with each other Guarantor or Obligor (as the case may be).

		
	2
	Purpose

The Borrower shall use the net proceeds of all accommodation provided under this Agreement for the Approved Purpose and for no other purpose.

		
	3
	Drawdown Notices and Drawings

		
	3.1
	Drawdown Notices

		
	(a)
	Whenever the Borrower wishes to make the Drawing it shall give to the Lender an irrevocable Drawdown Notice substantially in the form of the notice set out in Schedule 4.

		
	(b)
	The Drawdown Notice must be received by the Lender by 11.00am (Port Moresby time) three Business Days before the proposed Drawdown Date (which must be a Business Day).

		
	(c)
	The Lender is not obliged to provide the Drawing if as a result:

		
	(i)
	the Principal Outstanding would exceed the Facility Limit; or

		
	(ii)
	any other requirement of this Agreement would not be complied with.

		
	3.2
	Number of Drawings

The Borrower shall ensure that there is no more than one Drawing outstanding at any one time.

		
	4
	Facility

		
	4.1
	Advance of Drawing

Subject to this Agreement, whenever the Borrower requests a Drawing of the Facility, the Lender shall pay the amount of that Drawing to the relevant account specified in the Drawdown Notice on the Drawdown Date.

		
	4.2
	Interest

Interest will accrue from day to day on the outstanding principal amount of the Drawing at the rate determined by the Lender be the aggregate of the Margin and the LIBOR for the relevant Funding Period calculated on the basis of a year of 360 days. The Borrower shall pay accrued interest in arrears on the last day of each Funding Period and on repayment or prepayment of all or the relevant part of the Drawing.

		
	5
	Funding Periods

		
	(a)
	Subject to this clause, each Funding Period will be a period of 90 days. 

		
	(b)
	If a Funding Period ends on a day which is not a Business Day, that Funding Period will be extended to the next Business Day in the same calendar month or, if none, the preceding Business Day.

	
		
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	(c)
	No Funding Period may extend beyond the Final Repayment Date. A Funding Period shall be shortened or lengthened at the election of the Lender to ensure that no Funding Period ends on a date later than the Final Repayment Date.

		
	6
	Fees

		
	6.1
	Establishment fee

On the date of this Agreement the Borrower shall pay to the Lender an establishment fee of the PGK Equivalent of USD275,000 (being 1.10% of the Facility Limit). 

		
	6.2
	Fees not refundable or rebatable

No fee payable by an Obligor under this Agreement is refundable or rebatable.

		
	7
	Cancellation of Commitment

At the close of business Port Moresby time on the last day of the Availability Period, the Commitment will be cancelled. 

		
	8
	Repayment

		
	8.1
	Repayment of Facility

Without prejudice to any other term of this Agreement, the Borrower shall repay the Principal Outstanding, together with all accrued interest and any other fees, costs and expenses payable under a Finance Document on the Final Repayment Date.

		
	8.2
	Repayment

		
	(a)
	The Borrower shall repay the Principal Outstanding by instalments on the last day of each Funding Period.

		
	(b)
	Each instalment will be of an amount to be advised by the Lender from time to time,  being calculated on the basis that the Principal Outstanding as at the end of the Availability Period will be fully amortised through equal instalments of principal over the period commencing on the last day of the Availability Period and ending on the Final Repayment Date. 

		
	(c)
	The final instalment will be the Principal Outstanding as at the Final Repayment Date.

		
	8.3
	Secured Money

The Borrower shall pay and repay all other outstanding Secured Money on the Final Repayment Date.

		
	9
	Prepayments

		
	9.1
	Voluntary prepayments

		
	(a)
	Subject to this clause, the Borrower may prepay, on giving at least 10 Business Days’ prior written notice to the Lender, all or any part of the Principal Outstanding under the Facility. That notice is irrevocable. The Borrower shall prepay in accordance with it. 

		
	(b)
	Unless the Lender agrees otherwise, prepayment of part only of a Drawing may only be made in a minimum principal amount of USD500,000.

		
	(c)
	Prepayments under this clause may only be made on the last day of a Funding Period.

	
		
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	9.2
	Interest and break costs

Any prepayment under this Agreement shall be made together with:
		
	(a)
	any interest accrued on that amount; and

		
	(b)
	any break costs with respect to the amount prepaid.

		
	9.3
	Limitation on prepayments

The Borrower may not prepay all or any part of the Principal Outstanding except as set out in this Agreement. 

		
	9.4
	Application against repayment instalments

Prepayments will be applied against repayment instalments (if any) in inverse order of maturity.

		
	10
	Payments

		
	10.1
	Manner

Each Obligor shall make all payments required to be made by it under any Finance Document in immediately available funds by 11.00am (local time) on the due date to the address for service of notices of the Lender, or to the account specified by the Lender in respect of that currency, without set‐off, counterclaim or other deduction except any compulsory deduction for Tax.

		
	10.2
	Payment to be made on Business Day

Whenever any payment becomes due on a day which is not a Business Day, the due date will be the next Business Day in the same calendar month or, if none, the preceding Business Day.

		
	10.3
	Appropriation where insufficient money available

The Lender may appropriate amounts it receives among amounts due as it sees fit. This will override any appropriation made by an Obligor.

		
	11
	Taxation

		
	11.1
	Additional payments

If an Obligor is obliged to make a deduction in respect of Tax from a payment under a Finance Document:
		
	(a)
	(pay deduction) it shall promptly pay the amount deducted to the appropriate Government Agency;

		
	(b)
	(receipt) within 30 days of the end of the month in which the deduction is made, it shall give the Lender the original receipt (or other documents acceptable to the Lender) evidencing the payment; and

		
	(c)
	(gross‐up) unless the Tax is an Excluded Tax, on the due date it shall pay the Lender an additional amount so that the Lender receives a net amount (after allowance for any further deduction and any Tax on the additional amount) equal to the amount it would have received if no deduction had been made. It shall indemnify the Lender against the Tax and any amounts recoverable from the Lender in respect of the Tax.

It waives any statutory or other right to recover from the Lender any amount paid under this clause. 

		
	11.2
	Tax credits

	
		
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	(a)
	(Refund) If the Lender in its absolute discretion decides that it has received any clearly identifiable tax relief in respect of a deduction for which an additional payment has been made, the Lender shall promptly refund the amount of the additional payment, but only:

		
	(i)
	to the extent of the relief received; and

		
	(ii)
	to the extent it determines that the refund can be made without prejudice to the retention of the relief.

		
	(b)
	(Own tax affairs) Nothing in paragraph (a) interferes with the right of the Lender to arrange its tax affairs as it thinks fit. For example, the Lender need not claim any relief in respect of a deduction or disclose any information regarding its tax affairs or tax computations.

		
	12
	Change in Law

		
	12.1
	Illegality

		
	(a)
	If a Change in Law makes it illegal or impracticable for the Lender to provide financial accommodation under the Finance Documents, the Lender may by notice to the Borrower:

		
	(i)
	terminate the Commitment; and

		
	(ii)
	direct the Borrower to prepay any financial accommodation affected, together with all other amounts owing under the Finance Documents.

		
	(b)
	The Borrower shall make the prepayment immediately or, if later, the latest day (in the Lender’s opinion) on which the prepayment can be made without the illegality or impracticability arising.

		
	12.2
	Increased costs

Whenever the Lender determines that as a result of a Change in Law any of the following occurs in connection with its Commitment or financial accommodation provided or to be provided under the Finance Documents:
		
	(a)
	(increased costs) its costs are increased;

		
	(b)
	(reduced receipts) an amount received or receivable by it is reduced;

		
	(c)
	(reduced return) its or its holding company’s return on capital or other effective return is reduced (including because more capital needs to be allocated to the Facility and cannot be used elsewhere),

the Lender may notify the Borrower. The Borrower shall pay the Lender on demand the amounts certified by an Authorised Officer of the Lender to be necessary to compensate the Lender or the relevant holding company for the increase or reduction.
That certificate must give an outline of the calculation of the amount demanded and will be conclusive and bind the Borrower in the absence of manifest error.

		
	12.3
	Voluntary prepayment on Change in Law

If the Borrower becomes aware that as a result of a Change in Law it is or may be obliged to make a payment under clause 11.1(c) (Taxation – additional payments) or 12.2 (Increased costs), the Borrower may notify the Lender that it wishes to prepay any financial accommodation affected. That notice is irrevocable. The Borrower shall prepay in accordance with it on the last day of the Funding Period during which the notice is given.

	
		
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	12.4
	Minimisation

		
	(a)
	(Minimisation) The Lender shall use reasonable endeavours to avoid or minimise the consequences of a Change in Law mentioned in this clause.

		
	(b)
	(No defence) The Borrower may not refuse a demand on the ground that the relevant consequences could have been avoided.

		
	12.5
	Change in Law

In this clause:
		
	(a)
	a Change in Law is the introduction of, or a change in, any law, official directive, ruling or request or a change in its interpretation or application. If it does not have the force of law, it must be one with which responsible banks in Papua New Guinea or Australia would comply. It includes any with respect to capital adequacy, special deposit, liquidity, reserve, prime assets, tax or prudential requirements (except a change in tax on overall net income); and 

		
	(b)
	a Change in Law also includes:

		
	(i)
	an investigation into the Borrower or an Associate of the Borrower by a Government Agency; or

		
	(ii)
	an application for or grant of an injunction or order in respect of any Finance Document or Security granted by an Obligor or account conducted with the Lender made by a Government Agency.

		
	13
	Market Disruption

		
	13.1
	Market disruption

		
	(a)
	If the Lender determines that a Market Disruption Event occurs in relation to a Drawing for any Funding Period, then it shall promptly notify the Borrower, and the rate of interest on that Drawing shall be the rate per annum which is the sum of:

		
	(i)
	the Margin; and

		
	(ii)
	the rate notified by the Lender as soon as practicable and in any event no later than the Business Day before interest is due to be paid in respect of that Funding Period, to be that which expresses as a percentage rate per annum the cost to the Lender of funding its participation in that Drawing from whatever source or sources it may reasonably select.

		
	(b)
	The Lender shall determine the margin and the rate notified by it under paragraph (a)(ii) above in good faith. The rate so notified and any notification under paragraph (c) below, will be conclusive and binding on the parties in the absence of manifest error.

		
	(c)
	In this Agreement, Market Disruption Event means the Lender determines that as a result of market circumstances not limited to it (whether or not those circumstances, or their effect on the Lender’s cost of funds, subsist on the date of this Agreement) the cost to it of funding a Drawing is or would be in excess of LIBOR.

		
	13.2
	Alternative basis of interest or funding

		
	(a)
	If a Market Disruption Event occurs and the Lender or the Borrower so requires, the Lender and the Borrower shall enter into negotiations (for a period of not more than 45 days) with a view to agreeing a substitute basis for determining the rate of interest.

	
		
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	(b)
	Any alternative basis agreed pursuant to paragraph (a) above shall be binding on all parties.

		
	13.3
	Confidentiality

		
	(a)
	Subject to paragraph (b), the Borrower shall keep confidential and not disclose to any other person any information described in this clause 13 (Market disruption).

		
	(b)
	However, the Borrower or its officers or employees may disclose such information:

		
	(i)
	to the extent required by any applicable law or regulation; 

		
	(ii)
	    to the extent it reasonably deems necessary in connection with any actual or contemplated proceedings or a claim with respect to this clause 13; or

		
	(iii)
	any of its Associates (including the Guarantor) and any of its or their officers, directors, employees, professional advisers and auditors if any person to whom that information is to be given pursuant to this paragraph is informed in writing of its confidential nature and that it may be price-sensitive information.

		
	14
	Conditions Precedent

		
	14.1
	Conditions precedent

The right of the Borrower to give a Drawdown Notice and the obligations of the Lender under this Agreement are subject to the condition precedent that the Lender receives all of the items described in Schedule 3 (Conditions Precedent) in form and substance satisfactory to the Lender.

		
	14.2
	Further conditions precedent

The obligations of the Lender to make available financial accommodation under this Agreement are subject to the further conditions precedent that as at the date of the relevant Drawdown Notice and the relevant Drawdown Date:
		
	(a)
	(representations true) the representations and warranties by each Obligor in the Finance Documents are true in all material respects and not misleading as though they had been made at each date in respect of the facts and circumstances then subsisting; and 

		
	(b)
	(no default) no Event of Default or Potential Event of Default continues or will result from the provision of the financial accommodation.

		
	15
	Representations and Warranties

		
	15.1
	Obligor representations and warranties

Each Obligor makes the following representations and warranties on the date of this Agreement, the date of the Drawdown Notice and the first day of each Funding Period. 
		
	(a)
	(Status) It is a corporation validly existing under the laws of the place of its incorporation specified in this Agreement and is capable of suing and being sued.

		
	(b)
	(Power) It has the power to enter into and perform its obligations under the Finance Documents to which it is expressed to be a party, to carry out the transactions contemplated by those documents, to own its assets and to carry on its business as now conducted or contemplated.

	
		
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	(c)
	(Corporate authorisations) It has taken all necessary corporate action to authorise the entry into, delivery (if applicable) and performance of the Finance Documents to which it is expressed to be a party, and to carry out the transactions contemplated by those documents.

		
	(d)
	(Documents binding) Each Finance Document to which it is expressed to be a party is its legal, valid and binding obligation enforceable in accordance with its terms, subject to any necessary stamping and registration and subject to equitable principles. 

		
	(e)
	(Transactions permitted) The execution, delivery (if applicable) and performance by it of the Finance Documents to which it is expressed to be a party and each transaction contemplated under those documents did not and will not violate in any respect a provision of:

		
	(i)
	a law or treaty or a judgment, ruling, order or decree of a Government Agency binding on it;

		
	(ii)
	its constitution or other constituent documents; or

		
	(iii)
	any other document or agreement which is binding on it or its assets, and, except as provided by the Finance Documents, did not and will not:

		
	(iv)
	create or impose a Security on any of its assets; or

		
	(v)
	allow a person to accelerate or cancel an obligation with respect to Finance Debt, or constitute an event of default, cancellation event, prepayment event or similar event (whatever called) under an agreement relating to Finance Debt, whether immediately or after notice or lapse of time or both.

		
	(f)
	(Financial Reports)

		
	(i)
	Its most recent consolidated and unconsolidated audited Financial Reports give a true and fair view of: 

		
	(A)
	its financial position (including actual and contingent liabilities), and where relevant the financial position of any other relevant entities on a consolidated basis, as at the date to which the Financial Reports relate; and

		
	(B)
	its performance, and where relevant the performance of any other relevant entities on a consolidated basis, during the accounting period to which the Financial Reports relate.

		
	(ii)
	There has been no subsequent change in its business or financial condition which may have a Material Adverse Effect.

		
	(iii)
	Those Financial Reports comply with Current Accounting Practice except to the extent disclosed in them and with all applicable laws.

		
	(g)
	(No litigation) No litigation, arbitration, Tax claim, dispute or administrative or other proceeding is current or pending or, to its knowledge, threatened other than proceedings brought against the Borrower in December 2010 by certain landowners seeking unspecified damages relating to alleged release of waste rock and overburden by the operation of the Project, full details of which have been disclosed to the Lender prior to the date of this Agreement.

		
	(h)
	(No default)

	
		
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	(i)
	No Obligor is in default under a document or agreement (including an Authorisation) binding on it or its assets which relates to Finance Debt or is material.

		
	(ii)
	Nothing has occurred which constitutes an event of default, cancellation event, prepayment event or similar event (whatever called) under those documents or agreements, whether immediately or after notice or lapse of time or both.

		
	(i)
	(Authorisations) Each Authorisation which is required in relation to:

		
	(i)
	the execution, delivery and performance by it of the Finance Documents to which it is expressed to be a party and the transactions contemplated by those documents;

		
	(ii)
	the validity and enforceability of those documents; and

		
	(iii)
	its business as now conducted or contemplated and which is material,

has been obtained or effected. Each is in full force and effect. It has complied with each of them.
		
	(j)
	(No misrepresentation)

		
	(i)
	All information (including Financial Reports) in connection with the Finance Documents provided by it to the Lender is true and accurate in all material respects at the date of this Agreement or, if later, when provided. Neither that information nor its conduct and the conduct of anyone on its behalf in relation to the transactions contemplated by the Finance Documents, was or is misleading, by omission or otherwise.

		
	(ii)
	All financial projections provided by an Obligor have been prepared by appropriately qualified persons in good faith and on the basis of the most recently available historical information and on the basis of reasonable assumptions.

		
	(iii)
	It has and each Obligor has disclosed all information and documents relating to it, its assets, each Finance Document to which it is expressed to be a party and the transactions contemplated by each of them, which are material to the Lender's decision to enter into the Finance Documents.

		
	(k)
	(Full disclosure) It has disclosed all material information and documents relating to it, its assets, each Finance Document and the transactions contemplated by each of them.

		
	(l)
	(Copies of documents) All copies of documents (including its latest audited Financial Reports and all Authorisations) given by it or on its behalf to the Lender are true and complete copies. Those documents are in full force and effect.

		
	(m)
	(Law) It and each of its Subsidiaries has complied with all laws binding on it where breach may have a Material Adverse Effect. 

		
	(n)
	(Investigation by agency) No investigation by any agency into all or part of its affairs is current in circumstances material to its business or financial condition.

		
	(o)
	(Environmental Law) No act or omission has occurred and there is no circumstance relating to its assets or its business or the assets or business of any of its Subsidiaries which has given rise or may give rise to: 

		
	(i)
	a substantial claim against it or any of its Subsidiaries;

		
	(ii)
	a requirement of substantial expenditure by it or any of its Subsidiaries; or

	
		
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	(iii)
	a requirement that it or any of its Subsidiaries cease or substantially alters an activity,

under Environmental Law.
Without limitation none of its assets is contaminated, all assets are within applicable environmental standards and all emissions and discharges are within standards or limits imposed by all relevant laws and Authorisations.
		
	(p)
	(Authorised officers) Any person specified as an Authorised Officer of the Borrower is authorised to sign any requests and other notices on its behalf and do all other things contemplated by the Finance Documents.

		
	(q)
	(Benefit) It benefits by entering into and performing its obligations under each Finance Document.

		
	(r)
	(No immunity) It has no immunity from the jurisdiction of a court, or from legal process, in Papua New Guinea.

		
	(s)
	(Pari passu ranking) Its obligations under this Agreement rank at least equally with all of its unsecured and unsubordinated indebtedness (other than liabilities mandatorily preferred by law).

		
	(t)
	(Intellectual Property) It owns, or has the right and license to use, all Intellectual Property necessary for the conduct of its business.

		
	(u)
	(Taxes) It has complied with all laws in relation to Tax in all jurisdictions in which it is subject to Taxes and has paid all Taxes due and payable by it except those for which it has set aside sufficient reserves and which are being contested in good faith (except where failure to pay may have a Material Adverse Effect).

		
	(v)
	(Insurance)

		
	(i)
	All insurances required under the Finance Documents are in effect and current and meet the requirements of the Finance Documents.

		
	(ii)
	It has not made any material misrepresentation or omission to its insurers and is not aware of any reason why any of the insurance policies may be terminated or why any insurers may refuse to pay a claim when made.

		
	(w)
	(Undisclosed relationships) Except as disclosed to and agreed by the Lender, it has not entered into any Finance Document and does not hold any Secured Property:

		
	(i)
	as a trustee of any trust;

		
	(ii)
	as a partner of a partnership;

		
	(iii)
	as a responsible entity of any registered scheme;

		
	(iv)
	as an agent of an undisclosed principal; or

		
	(v)
	in any other capacity for the benefit of any person.

		
	15.2
	Borrower representations and warranties

The Borrower makes the following representations and warranties on the date of this Agreement, the date of the Drawdown Notice and the first day of each Funding Period. 

	
		
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	(a)
	(Title)

		
	(i)
	It is the sole beneficial owner of its Secured Property (if any) free of any other third party right or interest whatever other than as permitted by clause 16.2(c) (Negative pledge).

		
	(ii)
	There are no third party rights or interests (including Security) in or over any place where any Approved Equipment forming part of the Secured Property is or is to be located other than those disclosed in writing to the Lender before the date of this Agreement or, if they arise after that date, before the first date on which the representations and warranties in this clause are repeated after they arise.

		
	(b)
	(Location) As at the date of this Agreement, each Approved Equipment (other than, until the Bus Delivery Date for a Bus, each such Bus) is located at the Site. 

		
	15.3
	Reliance on representations and warranties

Each Obligor acknowledges that the Lender has entered the Finance Documents in reliance on the representations and warranties in this clause.

		
	16
	Undertakings

		
	16.1
	General undertakings

Each Obligor (or where expressly provided, the Borrower) undertakes to the Lender as follows, except to the extent that the Lender consents.
		
	(a)
	(Corporate reporting and information): 

		
	(i)
	(annual Financial Reports) it will provide to the Lender as soon as practicable (but within 120 days) after the close of each of its financial years or (if earlier) within 5 Business Days after any earlier date on which it is required to file its consolidated Financial Reports with any Government Agency, copies of its consolidated audited Financial Reports in respect of that financial year; 

		
	(ii)
	(management accounts) it will provide to the Lender as soon as practicable (but within 60 days) after the end of each of its financial half-years or (if earlier) within 5 Business Days after any earlier date on which it is required to file its consolidated half-yearly management accounts with any Government Agency,  copies of its consolidated management accounts in respect of that half-year, the financial year to date and for the 12 month period ending at the end of that half year (including, but not limited to, a statement of financial position, statement of financial performance, cash flow statement and performance against forecasts); 

		
	(iii)
	(documents issued to shareholders) the Borrower will provide to the Lender promptly, all documents provided by it to a stock exchange or holders of Marketable Securities issued by it;

		
	(iv)
	(litigation) it will provide to the Lender promptly, written particulars of any litigation, arbitration, Tax claim, dispute or administrative or other proceeding in relation to it or its Subsidiaries other than a claim for worker's compensation; 

		
	(v)
	(Government Agency) it will provide to the Lender promptly, any notice, order or material correspondence from or with a Government Agency relating to its or its Subsidiaries' business or assets which may have a Material Adverse Effect; and

	
		
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	(vi)
	(other information) it will provide to the Lender promptly, any other information in relation to its (or in relation to the Borrower, its Subsidiaries') financial condition or business which the Lender may request.

		
	(b)
	(Accounting principles) It will ensure that the Financial Reports provided to the Lender under paragraph (a):

		
	(i)
	comply with Current Accounting Practice except to the extent disclosed in them and with all applicable laws; and

		
	(ii)
	give a true and fair view of the matters with which they deal.

		
	(c)
	(Authorisations) It will ensure that each Authorisation required for:

		
	(i)
	the execution, delivery and performance by it of the Finance Documents to which it is expressed to be a party and the transactions contemplated by those documents;

		
	(ii)
	the validity and enforceability of those documents; and

		
	(iii)
	the carrying on by it and its Subsidiaries of its and their business as now conducted or contemplated, 

is obtained and promptly renewed and maintained in full force and effect. It will provide copies promptly to the Lender when they are obtained or renewed.
		
	(d)
	(Notice to Lender) It will notify the Lender as soon as it becomes aware of:

		
	(i)
	any Event of Default, Review Event or Potential Event of Default;

		
	(ii)
	(in relation to the Borrower only) any Defect or Casualty Event;

		
	(iii)
	(in relation to the Borrower only) any substantial dispute between it or any of its Subsidiaries and a Government Agency; 

		
	(iv)
	any change in its Authorised Officers, giving specimen signatures of any new Authorised Officer appointed, and, where requested by the Lender, evidence satisfactory to the Lender of the authority of any Authorised Officer together with documents evidencing the new Authorised Officer's identity verified to the Lender's satisfaction;

		
	(v)
	any Change in Control;

		
	(vi)
	any liability under an Environmental Law; and

		
	(vii)
	any material litigation, asset write down or other actual or potential material enterprise diminishing event.

		
	(e)
	(Corporate existence) It will do everything necessary to maintain its corporate existence in good standing. It will not transfer its jurisdiction of incorporation or enter any merger or consolidation without the Lender's prior written consent (such consent not to be unreasonably withheld).

		
	(f)
	(Compliance with law) It will comply with all laws binding on it or its assets in all material respects.

		
	(g)
	(Pay Taxes) It will pay all Taxes payable by it when due, but:

		
	(i)
	it need not pay Taxes for which it has set aside sufficient reserves and which are being contested in good faith, except where failure to pay may have a Material Adverse Effect; and

	
		
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	(ii)
	to the extent liable, it will pay those Taxes on the final determination or settlement of the contest.

		
	(h)
	(Commercial dealings)

		
	(i)
	It will not deal in any way with any person except at arm's length in the ordinary course of business for valuable commercial consideration.

		
	(ii)
	It may only deal with an Associate if a person satisfactory to the Lender verifies the adequacy of the consideration or otherwise verifies compliance with sub‐paragraph (i).

		
	(i)
	(Ratification) As holder of shares, units or any other direct or indirect interest in any Obligor, it ratifies and confirms the execution, delivery and performance by each Obligor of each Finance Document. It will be taken to have ratified and confirmed the execution, delivery and performance of each Finance Document to which any entity in which it has such an interest is at any time expressed to be party.

		
	(j)
	(Inspection) 

		
	(i)
	Subject to sub-paragraph (iii) below, the Lender or persons authorised by it may at any time inspect and require the provision of copies of the records, and inspect the premises, of the Borrower. The Borrower will do everything in its power to assist that inspection and provide those copies and will ensure that its employees and officers do the same.

		
	(ii)
	Without limitation, the Borrower shall permit and enable the Lender and its representatives (including any experts appointed by it), whenever the Lender reasonably requires, to:

		
	(A)
	inspect or test any Approved Equipment forming part of the Secured Property;

		
	(B)
	examine, make copies of or take extracts from, the books of account, records, reports and other documents relating to the Approved Equipment forming part of the Secured Property; and

		
	(C)
	discuss with the officers, accountants and auditors of the Borrower its affairs, finances and accounts relating to the Approved Equipment forming part of the Secured Property,

and, for those purposes, to have access to any place where any Approved Equipment forming part of the Secured Property is located, the documents and the relevant officers, accountants and auditors.
		
	(iii)
	The Lender (or persons authorised by it) shall not exercise its rights under this paragraph (j):

		
	(A)
	without providing reasonable notice to the Borrower and complying with all reasonable workplace health and safety and security protocols of the Borrower; and

		
	(B)
	more frequently than once per calendar year, unless an Event or Default or Potential Event of Default continues.

		
	(k)
	(Books and records) It will ensure that it maintains appropriate books and records at all times.

	
		
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	(l)
	(Environmental Law)

		
	(i)
	It will maintain procedures which, in the reasonable opinion of the Lender, are adequate to monitor its compliance with Environmental Law and Authorisations.

		
	(ii)
	Where the Lender reasonably suspects that the Borrower is not complying in a material respect with an Environmental Law or Authorisation and, after consultation with the Borrower, the Lender reasonably continues to do so, the Lender may have an audit conducted of the procedures maintained and of compliance. It will do everything reasonably necessary to facilitate that audit.

		
	(iii)
	Where the procedures or the audit referred to in this paragraph reveal any non-compliance with Environmental Law or Authorisations, it will promptly remedy them.

		
	(iv)
	Without limitation, it will comply and ensure that the Project complies at all times with applicable Equator Principles.

		
	16.2
	Undertakings relating to Secured Property

The Borrower undertakes to the Lender as follows, except to the extent that the Lender consents. 
		
	(a)
	(Approved Equipment) 

		
	(i)
	It will ensure that at all times the Principal Outstanding is equal to or less than

(A)    until the earlier of the date on which each Bus has been delivered to the Site and 31 August 2018, 85%; and 
(B)    at any other time, 80% 
of the aggregate value of the Approved Equipment forming part of the Secured Property (other than Approved Equipment that has been subject to a Casualty Event and any Bus which has not been delivered to the Site) as recorded in the most recent Valuation accepted by the Lender at that time.
		
	(ii)
	It shall, within 10 Business Days of becoming aware that it is not in compliance with its obligation under sub-paragraph (i) above, prepay in accordance with clause 9 (Voluntary prepayments) such minimum amount of the Principal Outstanding (together with interest and (if such payment is not made on the last day of a Funding Period) break costs) so as to ensure that immediately upon payment, the Principal Outstanding is equal to or less than 80% of the aggregate value of the Approved Equipment forming part of the Secured Property (other than Approved Equipment that has been subject to a Casualty Event) as recorded in the most recent Valuation accepted by the Lender at that time.

		
	(iii)
	The Borrower will not be in breach of its obligation under  sub-paragraph (i) above if the failure is a direct result of a Casualty Event affecting one or more items of Approved Equipment forming part of the Secured Property and the Borrower complies with its obligations under clause 17 in respect of that Approved Equipment.

		
	(b)
	(Disposal of assets) It will not sell or otherwise dispose of, part with possession of, or create an interest in any Secured Property or agree or attempt to do so (whether in one or more related or unrelated transactions) except in accordance with clause 17 (Casualty Event).

	
		
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	(c)
	(Negative pledge) It will not create or allow to exist a Security Interest over the Secured Property other than a Permitted Security.

		
	(d)
	(Mortgaged or leased premises) 

		
	(i)
	It shall not install, use or store any Approved Equipment forming part of the Secured Property (other than, until the Bus Delivery Date for a Bus, each such Bus) in any place that it does not own or that is subject to a Security, Lease or other similar interest unless the Lessor has received an acknowledgement executed by each person who has any interest in that place.

		
	(ii)
	The acknowledgement is to confirm that the Approved Equipment:

		
	(A)
	is and will remain the Borrower's property;

		
	(B)
	    if affixed to any land or building, will not become a fixture of the land or building and that that person will not acquire an interest in the Approved Equipment;

		
	(C)
	    will not be subject to the Security (if any) over the place; and

		
	(D)
	    may be removed by the Lender from the place without the Lender incurring any liability.

		
	(iii)
	It shall not create any Security over the place where any Approved Equipment forming part of the Secured Property is located unless the Borrower first obtains an acknowledgement from the security holder in the form described in paragraph (ii).

		
	(e)
	(Sale and Lease back) It will not sell or otherwise dispose of any Secured Property to a person where, under the terms of that sale or disposal, or under a related transaction, that asset is or may be Leased to the Guarantor or its Associate.

		
	(f)
	(Maintenance)

		
	(i)
	It will maintain, or procure that any relevant operator maintain, the Approved Equipment forming part of the Secured Property in:

		
	(A)
	proper working order and condition in accordance with the Supplier's specifications and the requirements (if any) of any insurer of any Approved Equipment forming part of the Secured Property; and

		
	(B)
	good and substantial repair, with due allowance for normal wear and tear,

or otherwise in accordance with the practice of a prudent and reasonable owner of property similar to the Approved Equipment so that the Approved Equipment forming part of the Secured Property is always capable of being operated fully and efficiently for the purpose for which it was designed.
		
	(ii)
	It will promptly, or procure that any relevant tenant will promptly, remedy every material defect in the repair and condition of the Approved Equipment forming part of the Secured Property (fair wear and tear excepted).

		
	(g)
	(Insurance) It will, in addition to any requirement of any other Finance Document:

		
	(i)
	take out and maintain insurance over and in relation to the Approved Equipment forming part of the Secured Property (including fire, loss of rent and public liability insurance) with independent and reputable insurers for amounts, against risks and upon terms and conditions reasonably stipulated by the Lender, or if no such requirements are stipulated, for amounts, against risks and upon terms and 

	
		
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conditions that a prudent and reasonable owner of property similar to that of the Borrower would effect and maintain;
		
	(ii)
	note the interest of the Lender as mortgagee and loss payee on each policy of insurance over the Approved Equipment forming part of the Secured Property;

		
	(iii)
	disclose to each insurer all facts which are material to the insurer's risk and comply with its obligations of utmost good faith to the insurer;

		
	(iv)
	give to the Lender on demand a certificate in form and substance satisfactory to the Lender from the insurer to the effect that the required insurance is current and no premiums or other moneys are due for payment to the insurer;

		
	(v)
	pay when due all premiums, commissions, levies, stamp duties, charges and other expenses necessary for taking out those insurance policies and keeping them in force;

		
	(vi)
	except with the Lender's prior written consent, ensure that no material alteration is made to any insurance policy; and

		
	(vii)
	as soon as practicable notify the Lender if an event occurs which permits an insurance claim to be made, or if an insurance claim is made or refused.

		
	(h)
	(Insurance proceeds) To the extent permitted at law, proceeds of each insurance policy in relation to the Approved Equipment forming part of the Secured Property must be applied as follows, unless the Lender otherwise consents:

		
	(i)
	if no Event of Default or Potential Event of Default subsists:

		
	(A)
	in the case of a policy covering destruction, damage or loss of Approved Equipment, in replacing, reinstating, rebuilding or repairing that Approved Equipment; and

		
	(B)
	in any other case, in discharging the liability or making good the loss covered by the policy,

with any surplus being applied to reduce the Secured Money whether or not due; or
		
	(ii)
	if an Event of Default or Potential Event of Default subsists, to reduce the Secured Money whether or not due.

		
	(i)
	(Alterations) It will not materially alter, or permit any person to materially alter, the Approved Equipment forming part of the Secured Property.

		
	(j)
	(Preservation and protection of security) It will promptly do everything in its power necessary or reasonably required by the Lender:

		
	(i)
	to preserve and protect the value of the Approved Equipment forming part of the Secured Property; and

		
	(ii)
	to protect and enforce its title and the title of the Lender as mortgagee or secured party in respect of the Approved Equipment forming part of the Secured Property.

		
	(k)
	(Other Security) It will comply with all Security affecting the Approved Equipment forming part of the Secured Property and with its obligations secured by that Security.

		
	(l)
	(Location) It will not remove, or allow to be removed, any Approved Equipment forming part of the Secured Property (other than, until the Bus Delvery date for a Bus, each such Bus) from the location corresponding to that Approved Equipment as set out in 

	
		
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Schedule 2 or the location of that Secured Property otherwise agreed by the Lender except when necessary for repair of the relevant Approved Equipment.

		
	16.3
	Term of undertakings

Each undertaking in this clause 16 continues from the date of this Agreement until the Secured Money is fully and finally paid.

		
	17
	Casualty Event 

		
	(a)
	On the occurrence of any Casualty Event, the Borrower shall promptly (and in any event, within 20 Business Days or such longer period the Lender might agree):

		
	(i)
	prepay in accordance with clause 9 (Voluntary prepayments) an amount of the Principal Outstanding equal to or greater than the amount calculated by the Lender to be the Proportionate Principal Outstanding at that time together with interest and (if such payment is not made on the last day of a Funding Period) break costs; or

		
	(ii)
	provide Satisfactory Security in respect of one or more items of Approved Equipment (not already forming part of the Secured Property) of a value equal to or greater than 125% of the Proportionate Principal Outstanding at that time. 

		
	(b)
	The Borrower shall at its cost promptly procure any Valuation required by the Lender to satisfy itself of any determination required under this clause 17, including without limitation the Proportionate Principal Outstanding or the value of any asset proposed to be subject of any Satisfactory Security to be given in accordance with paragraph (a)(ii) above.

		
	(c)
	Subject to clause 16.2(h), the Borrower may set-off any insurance proceeds received by the Lender as a result of any Casualty Event that are applied by the Lender in reduction of the Secured Money against its obligation to prepay under clause17.1(a)(i).

		
	18
	Events of Default

		
	18.1
	Events of Default

Each of the following is an Event of Default (whether or not it is in the control of any Obligor). 
		
	(a)
	(Obligations under Finance Documents) An Obligor fails:

		
	(i)
	to pay an amount payable by it under a Finance Document when due (other than where the failure is caused solely by an administrative or technical error in the transmission of funds outside the control of the Obligors and such failure is remedied within two Business Days); 

		
	(ii)
	to comply with an undertaking under clause 16.2(c) (Negative pledge), 16.2(l) (Location), 16.2(g) (Insurance), 17 (Casualty Event) or 31 (Personal properties securities law);

		
	(iii)
	to comply with any of its other obligations under a Finance Document except, where in the opinion of the Lender that failure can be remedied within 10 Business Days, if it remedies the failure within that period; or 

		
	(iv)
	to satisfy within the time stipulated anything which the Lender made a condition of its waiving compliance with a condition precedent or undertaking in a Finance Document.

	
		
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	(b)
	(Misrepresentation) A representation, warranty or statement by or on behalf of an Obligor in a Finance Document, or in a document provided under or in connection with a Finance Document, is not true in a material respect or is misleading when made or repeated.

		
	(c)
	(Cross default)

		
	(i)
	Finance Debt of an Obligor:

		
	(A)
	is not paid when due (or within an applicable grace period); or

		
	(B)
	becomes due and payable or capable of being declared due and payable before its stated maturity or expiry; or

		
	(ii)
	a facility or obligation granted or owed by a person to an Obligor to provide financial accommodation or to acquire or underwrite Finance Debt is prematurely terminated; or

		
	(iii)
	an event of default (however called or defined) occurs under any agreement documenting Finance Debt or a Security to which an Obligor is a party.

For the purpose of this paragraph, if a person is required to provide cash cover for Finance Debt as a result of an actual, likely or threatened default or an event of default or termination, cancellation, special prepayment or similar event, whatever called, that Finance Debt will be taken to be due and payable.  
No Event of Default will occur under this clause 18.1(c) if the aggregate amount of Finance Debt or commitment to provide financial accommodation falling within sub-paragraphs (i) to (iii) is:
		
	(iv)
	in relation to the Guarantor, less than USD5,000,000 (or its equivalent in other currency or currencies); and

		
	(v)
	in relation to the Borrower, less than USD1,000,000 (or its equivalent in other currency or currencies).

		
	(d)
	(Administration, winding up, arrangements, insolvency etc)

		
	(i)
	An administrator of an Obligor is appointed.

		
	(ii)
	Except for the purpose of a solvent reconstruction or amalgamation previously approved by the Lender:

		
	(A)
	an application or an order is made, proceedings are commenced, a resolution is passed or proposed in a notice of meeting, an application to a court or other steps are taken for:

		
	(1)
	the winding up, dissolution or administration of an Obligor; or

		
	(2)
	an Obligor entering into an arrangement, compromise or composition with or assignment for the benefit of its creditors or a class of them,

(other than frivolous or vexatious applications, proceedings, notices and steps or where such application or proceedings are disputed by an Obligor acting diligently and in good faith and dismissed or discontinued with 10 Business Days); or

	
		
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	(B)
	an Obligor ceases, suspends or threatens to cease or suspend the conduct of all or a substantial part of its business or disposes of or threatens to dispose of a substantial part of its assets.

		
	(iii)
	An Obligor:

		
	(A)
	is, or under legislation is presumed or taken to be, insolvent (other than as the result of a failure to pay a debt or claim the subject of a good faith dispute); or

		
	(B)
	stops or suspends or threatens to stop or suspend payment of all or a class of its debts.

		
	(e)
	(Enforcement against assets)

		
	(i)
	A receiver, receiver and manager, administrative receiver or similar officer is appointed to;

		
	(ii)
	a Security becomes enforceable or is enforced over; or

		
	(iii)
	a distress, attachment or other execution is levied or enforced or applied for over,

all or any of the assets and undertaking of an Obligor (and in relation to sub-paragraph (iii), is not discharged within 10 Business Days).
		
	(f)
	(Reduction of capital) Without the prior consent of the Lender, the Borrower:

		
	(i)
	reduces its capital (including a purchase of its shares);

		
	(ii)
	passes a resolution to reduce its capital or to authorise it to purchase its shares, or calls a meeting to consider such a resolution;

		
	(iii)
	applies to a court to call any such meeting or to sanction any such resolution or reduction; or

		
	(iv)
	enters into any amalgamation, merger, demerger or corporate reconstruction.

		
	(g)
	(Investigation) An investigation into all or part of the affairs of an Obligor commences under companies legislation in circumstances material to its financial condition.

		
	(h)
	(Analogous process) Anything analogous to anything referred to in paragraphs (d) to (g) inclusive, or which has substantially similar effect, occurs with respect to any Obligor under any law.

		
	(i)
	(Vitiation of documents)

		
	(i)
	All or any part of a Finance Document is terminated or is or becomes void, illegal, invalid, unenforceable or of limited force and effect;

		
	(ii)
	a party becomes entitled to terminate, rescind or avoid all or part of a Finance Document; or

		
	(iii)
	a party other than the Lender alleges or claims that an event described in sub‐paragraph (i) has occurred or that it is entitled as described in sub‐paragraph (ii).

		
	(j)
	(Revocation of Authorisation) An Authorisation which is material to the performance by any Obligor of a Finance Document, or to the validity and enforceability of a Finance Document or to the security of the Lender, is repealed, revoked or terminated or expires, or is modified or amended or conditions are attached to it in a manner unacceptable to the Lender, and is not replaced by another Authorisation acceptable to the Lender.

	
		
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	(k)
	(Control of Borrower) There is a Change in Control of the Borrower.

		
	(l)
	(Compulsory acquisition) The occurrence of any Compulsory Acquisition Event in relation to all or any substantial part of the Secured Property.  

		
	(m)
	(Governmental interference) A law or anything done by a Government Agency wholly or partially to a material extent renders illegal, prevents or restricts the performance or effectiveness of a Finance Document or otherwise has a Material Adverse Effect.

		
	(n)
	(Environmental event)

		
	(i)
	(A)    Any person takes action;

		
	(B)
	there is a claim; or

		
	(C)
	there is a requirement of expenditure or of cessation or alteration of activity,

under Environmental Law, which in the opinion of the Lender may have a Material Adverse Effect; or
		
	(ii)
	a circumstance arises which in the opinion of the Lender may give rise to an action, claim or requirement within sub‐paragraph (i).

		
	(o)
	(Project)

		
	(i)
	A Compulsory Acquisition Event occurs in relation to all or a material part of the Project.

		
	(ii)
	All or a material part of the Project is abandoned.

		
	(iii)
	The Project breaches any applicable Equator Principles and that breach is not remedied to the satisfaction of the Lender within six months. 

		
	(p)
	(Material damage or destruction) The occurrence of material damage to or destruction of all or a material part of the Secured Property provided that no Event of Default will occur under this clause if the affected Secured Property is the subject of a Casualty Event and the Borrower complies with its obligations under clause 17. 

		
	(q)
	(Material adverse change) Any other event or series of events, whether related or not, occurs (including a material adverse change in the business, assets, prospects or financial condition of any Obligor or the value of the Secured Property), which in the opinion of the Lender may have a Material Adverse Effect.

		
	18.2
	Consequences

In addition to any other rights provided by law or any Finance Document, at any time after an Event of Default (whether or not it is continuing) the Lender may do all or any of the following:
		
	(a)
	by notice to the Borrower declare the Secured Money immediately due and payable, and the Borrower shall immediately pay the Principal Outstanding and together with all other Secured Money (including accrued interest, fees and other costs and expenses);

		
	(b)
	by notice to the Borrower cancel all or any part of the Commitment;

		
	(c)
	take any step to enforce any Security or any Security Document, or exercise any rights of the Lender, under one or more Finance Documents;

		
	(d)
	(with immediate effect) change some or all of the conditions on which one or more of the Facility is made available to the Borrower (in particular the Lender may adjust any fees, interest rates, discount fees and margins payable under this Agreement or any other 

	
		
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Finance Document to reflect the changed credit terms and conditions consequent upon the Event of Default); and
		
	(e)
	at the cost of the Borrower:

		
	(i)
	appoint a firm of independent accountants or other experts to review and report to the Lender on the affairs, financial condition and business of any Obligor; and

		
	(ii)
	obtain a Valuation of all or any part of the Approved Equipment forming party of the Secured Property.

Each Obligor shall do everything in its power to ensure the review, report and Valuation can be carried out promptly, completely and accurately. Without limitation, it shall co-operate fully with the review and Valuation and ensure that the accountants and experts and Valuers are given access to all Approved Equipment and premises and records of each Obligor and are given all information concerning any Obligor or Approved Equipment which they require from time to time. It shall ensure that all officers and employees of each Obligor do the same.

		
	19
	Guarantee

		
	19.1
	Interpretation

Unless the context requires otherwise, in this clause 19 and in the last sentence of the definition of Secured Money a reference to:
		
	(a)
	any person includes the Borrower;

		
	(b)
	any document or agreement includes this Agreement or any other Finance Document; and

		
	(c)
	any reason or some reason includes:

		
	(i)
	any legal limitation, disability, Liquidation, incapacity or thing affecting any person or the operation of any law, including any law relating to Liquidation, fiduciary or other duties or obligations or the protection of creditors;

		
	(ii)
	any release, discharge, termination, rescission, repudiation, extinguishment, abandonment or disclaimer;

		
	(iii)
	    any failure by any person to execute, or to execute properly, an agreement or document or to comply with some requirement; or

		
	(iv)
	    an agreement, document, obligation or transaction being or becoming illegal, invalid, void, voidable or unenforceable in any respect.

This applies whether or not the reason was or ought to have been within the knowledge of the Lender.
Each of clauses 19.2, 19.3, 19.4 and 19.5 is independent of each other.

		
	19.2
	Consideration

The Guarantor enters into this Agreement for valuable consideration which includes the Lender entering into the Finance Documents at its request. The Guarantor's obligations are unconditional and irrevocable.

		
	19.3
	Guarantee

The Guarantor guarantees the due and punctual payment of the Secured Money.

		
	19.4
	Indemnity

	
		
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If any Secured Money is not owing by or recoverable from an Obligor for any reason the Guarantor shall indemnify the Lender against any loss. The amount of that loss will equal the amount the Lender would otherwise have been entitled to recover.

		
	19.5
	Payment obligation

		
	(a)
	On demand from time to time the Guarantor shall pay an amount equal to the Secured Money which is then due and payable or would have been due and payable but for some reason. Subject to paragraph (b), the Guarantor shall pay that amount in the same manner and currency which the relevant Obligor is, or would have been, required to pay the Secured Money. A demand need only specify the amount owing. It need not specify the basis of calculation of that amount. 

		
	(b)
	In relation to any payment obligation of the Borrower expressed to be payable in the PGK Equivalent of an amount denominated in USD, the Guarantor shall pay the relevant amount in USD.

		
	19.6
	Unconditional nature of obligation

Neither this Agreement nor the obligations of the Guarantor under it will be affected by anything which but for this provision might operate to release, prejudicially affect or discharge them or in any way relieve the Guarantor from any obligation. This includes:
		
	(a)
	the grant to any person of any time, waiver or other indulgence, or the discharge or release of any person;

		
	(b)
	any transaction or arrangement between the Lender and any person;

		
	(c)
	the Lender becoming a party to or bound by any compromise, moratorium, assignment of property, scheme of arrangement, deed of company arrangement, composition of debts or scheme of reconstruction by or relating to any person;

		
	(d)
	the Lender exercising or delaying or refraining from exercising or enforcing any document or agreement or any right, power or remedy conferred on it by law or by any document or agreement;

		
	(e)
	all or any part of any document or agreement held by the Lender at any time or of any right, obligation, power or remedy changing, ceasing or being transferred (this includes amendment, variation, novation, replacement, rescission, invalidity, extinguishment, repudiation, avoidance, unenforceability, frustration, failure, expiry, termination, loss, release, discharge, abandonment or assignment);

		
	(f)
	the taking or perfection of any document or agreement or failure to take or perfect any document or agreement;

		
	(g)
	the failure by any person or the Lender to notify the Guarantor of any default by any person under any document or agreement or other circumstance;

		
	(h)
	the Lender obtaining a judgment against any person for the payment of any Secured Money;

		
	(i)
	any change in any circumstance (including in the members or constitution of any person);

		
	(j)
	any increase in the Secured Money for any reason (including as a result of anything referred to above); or

		
	(k)
	any reason,

	
		
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whether with or without the consent or knowledge of the Guarantor. None of the paragraphs above or in clause 19.1(c) limit the generality of any other.

		
	19.7
	Principal and independent obligation

This clause is a principal and independent obligation. Except for stamp duty purposes, it is not ancillary or collateral to another document, agreement, right or obligation. 

		
	19.8
	No marshalling

The Lender is not obliged to marshal or appropriate in favour of the Guarantor or to exercise, apply or recover:
		
	(a)
	any Security, Guarantee, document or agreement held by the Lender at any time; or

		
	(b)
	any of the funds or assets that the Lender is entitled to receive or has a claim on.

		
	19.9
	No competition

Until the Secured Money has been irrevocably paid and discharged in full the Guarantor is not entitled to and shall not:
		
	(a)
	be subrogated to the Lender or any person who has any rights against the Borrower or claim the benefit of any Security or Guarantee held by the Lender or any such person or any such at any time;

		
	(b)
	either directly or indirectly prove in, claim or receive the benefit of, any distribution, dividend or payment arising out of or relating to the Liquidation of the Borrower; or

		
	(c)
	have or claim any right of contribution or indemnity for any reason (whether or not relating to this Agreement) from the Borrower,

except as directed by the Lender.
The receipt of any distribution, dividend or other payment by the Lender out of or relating to any Liquidation will not prejudice the right of the Lender to recover the Secured Money by enforcement of this Agreement.
The Guarantor shall comply with any direction under this clause.
If the Guarantor receives any proceeds from the Liquidation of the Borrower (whether following a direction of the Lender or otherwise) it shall immediately pay those proceeds to the Lender in reduction of the Secured Money.
Until it makes that payment, those proceeds will be held in trust for the Lender. 

		
	19.10
	Suspense account

Until the Secured Money has been paid in full the Lender may:
		
	(a)
	(b)    credit to a suspense account (without applying it); and

		
	(i)
	appropriate at the discretion of the Lender,

any money received in respect of the Secured Money, including any dividend in a Liquidation or amount received under this Agreement; and
		
	(b)
	prove in any Liquidation of any person in respect of the full amount of the Secured Money disregarding any sums in the suspense account.

		
	19.11
	Rescission of payment

Whenever any of the following occurs for any reason:

	
		
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	(a)
	all or part of any transaction of any nature (including any payment or transfer) made during the term of this Agreement which affects or relates in any way to the Secured Money is void, set aside or voidable;

		
	(b)
	any claim of a nature contemplated by paragraph (a) is upheld, conceded or compromised; or

		
	(c)
	the Lender is required to return or repay any money or asset received by it under any such transaction or the equivalent in value of that money or asset,

the Lender will again have all rights against the Guarantor in respect of the Secured Money and the Secured Property which it would have had if all or the relevant part of the transaction or receipt had not taken place. The Guarantor shall indemnify the Lender against any resulting loss, cost or expense. This clause continues after this Agreement is discharged.

		
	19.12
	Continuing guarantee and indemnity

This clause:
		
	(a)
	is a continuing guarantee and indemnity;

		
	(b)
	will not be taken to be wholly or partially discharged by the payment at any time of any Secured Money or by any settlement of account or other matter or thing; and

		
	(c)
	remains in full force until the Secured Money has been paid in full and the Guarantor has completely performed its obligations under this Agreement.

		
	19.13
	Variations

This clause covers the Secured Money as varied from time to time including as a result of:
		
	(a)
	any amendment to, or waiver under, any Finance Document; or

		
	(b)
	the provision of further accommodation to the Borrower,

and whether or not with the consent of or notice to the Guarantor. This does not limit any other provision.

		
	19.14
	Judgment

A judgment obtained against any Obligor will, in the absence of manifest error, be conclusive against the Guarantor.

		
	19.15
	Conditions precedent

Any condition or condition precedent to the provision of financial accommodation is for the benefit of the Lender and not the Guarantor. Any waiver of or failure to satisfy such a condition or condition precedent will be disregarded in determining whether an amount is part of the Secured Money.

		
	20
	Review of Facility

		
	20.1
	Review Event

If a Review Event occurs:
		
	(a)
	at the request of the Lender, the Borrower and the Lender shall meet promptly (and in any event within 3 Business Days of either party receiving notice of the occurrence of a Review Event) to discuss the Review Event and, if required by the Lender, agree a strategy for the Borrower to rectify the circumstances giving rise to the Review Event; and

	
		
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	(b)
	if the Borrower and the Lender cannot reach an agreement within 30 days of the occurrence of the Review Event as to ongoing terms and conditions (including but not limited to, pricing) of the Facility, the Lender may give notice to the Borrower requiring repayments of the Principal Outstanding within 60 days of the date of that notice (or such later date as the Lender may, in its absolute discretion, specify).

		
	20.2
	Clause does not affect the Lender's other rights

This clause does not affect:
		
	(a)
	the Lender's rights if an Event of Default or Potential Event of Default has occurred; or

		
	(b)
	the Lender's right at any time to terminate a Facility which is ‘on demand’, by making a demand for payment in full.

		
	21
	Interest on Overdue Amounts

		
	21.1
	Accrual and payment

		
	(a)
	(Accrual) Interest accrues on each unpaid amount which is due and payable by an Obligor under or in respect of any Finance Document (including interest under this clause):

		
	(i)
	on a daily basis up to the date of actual payment from (and including) the due date or, in the case of an amount payable by way of reimbursement or indemnity, the date of disbursement or loss, if earlier;

		
	(ii)
	both before and after judgment (as a separate and independent obligation); and

		
	(iii)
	at the rate provided in clause 21.2 (Rate),

except where the relevant Finance Document provides otherwise.
		
	(b)
	(Payment) Each Obligor shall pay interest accrued under this clause on demand and on the last Business Day of each calendar quarter. That interest is payable in the currency of the unpaid amount on which it accrues.

		
	21.2
	Rate

The rate applicable under this clause is the sum of 2% pa plus the following, each as determined by the Lender: 
		
	(a)
	the rate (if any) applicable to the unpaid amount immediately before the due date; or

		
	(b)
	the sum of the Margin and the Lender’s cost of funds,

in each case calculated on the basis of a year of 360 days. 

		
	22
	Indemnities and Break Costs

		
	22.1
	Indemnities

The Borrower shall indemnify the Lender on demand against any loss, cost, liability or expense (including legal costs on a full indemnity basis) which the Lender (or any officer or employee of the Lender) incurs as a result of or in connection with:
		
	(a)
	any Event of Default or breach of a Finance Document;

		
	(b)
	any Defect or Casualty Event;

		
	(c)
	any exercise or attempted exercise of any right, power or remedy under any Finance Document or any failure to exercise any right, power or remedy;

	
		
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	(d)
	the Secured Property or the existence of any interest in or control, right, power or remedy with respect to the Secured Property;

		
	(e)
	a Drawing requested in a Drawdown Notice not being provided for any reason (including failure to fulfil a condition precedent but excluding default by the Lender);

		
	(f)
	the Lender receiving payments of principal in respect of any Drawing before the end of the relevant Funding Period or the last day of any period under clause 22.2 (Interest on overdue amounts) for any reason, including prepayment in accordance with this Agreement; or

		
	(g)
	the Lender acting in connection with a Finance Document in good faith on email or facsimile instructions purporting to originate from the offices of the Borrower or to be given by an Authorised Officer of the Borrower.

It is not necessary for the Lender to incur expense or make payment before enforcing a right of indemnity conferred by a Finance Document.

		
	22.2
	Break costs

		
	(a)
	If the Lender receives or recovers all or part (the Received Amount) of any Drawing or overdue amount before the last day of its Funding Period, on demand the Borrower shall pay the Lender the PGK Equivalent amount (if any) by which:

		
	(i)
	the interest which the Lender should have received on the Received Amount for the period from the date of receipt or recovery of the Received Amount to the last day of its current Funding Period, had it not been paid until that last day;

exceeds:
		
	(ii)
	the interest which the Lender determines that it would obtain by placing an amount equal to the Received Amount on deposit with a leading bank for a period starting on the Business Day following receipt or recovery and ending on that last day. 

		
	(b)
	If for any reason the Borrower revokes, or fails to draw in accordance with, a notice given by it, then on demand it must pay the amount which would have been payable under paragraph (a) if the Drawing had been drawn down and prepaid on the specified drawdown day.

		
	(c)
	Without limitation the indemnity under clause 22.1 will cover any amount determined by the Lender to be incurred by reason of the liquidation or re-employment of deposits or other funds acquired or contracted for by the Lender to fund or maintain any amount (including loss of margin) and by reason of the termination or reversing of any agreement or arrangement entered into by the Lender to fix, hedge or limit its effective cost of funding or maintaining any accommodation under this Agreement or any amount.

		
	23
	'Know Your Customer' Checks

Each Obligor shall supply promptly all documents and other evidence reasonably requested by the Lender in order for the Lender or a proposed Lender under clause 33 (Assignments) to carry out all 'know your customer' or other similar checks it regards as necessary in relation to each Obligor under all applicable laws and regulations and not already available to the recipient.

		
	24
	Currency Indemnity

		
	24.1
	General

	
		
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Each Obligor shall indemnify the Lender against any deficiency which arises whenever for any reason (including as a result of a judgment or order):
		
	(a)
	the Lender receives or recovers an amount in one currency (the Payment Currency) in respect of an amount denominated under a Finance Document in another currency (the Due Currency); and

		
	(b)
	the amount actually received or recovered by the Lender in accordance with its normal practice when it converts the Payment Currency into the Due Currency is less than the relevant amount of the Due Currency.

		
	24.2
	Reimbursement

Where an amount to be reimbursed or indemnified against under a Finance Document is denominated in a currency other than Kina, if the Lender so requests, the Borrower shall reimburse or indemnify it against the amount of Kina which the Lender certifies that it used to buy the relevant amount of the other currency in accordance with its normal procedures. If the Lender does not so request, the Borrower shall reimburse or indemnify it in that other currency.

		
	25
	Expenses

Each Obligor shall reimburse the Lender on demand for:
		
	(a)
	its reasonable expenses  in relation to the preparation, execution and completion of the Finance Documents and any subsequent consent, agreement, approval, waiver or amendment; and

		
	(b)
	its expenses in relation to:

		
	(i)
	any actual or contemplated enforcement of the Finance Documents, or the actual or contemplated exercise, preservation or consideration of any rights, powers or remedies under the Finance Documents or in relation to the Secured Property; and

		
	(ii)
	any enquiry by a Government Agency concerning any Obligor or the Secured Property or a transaction or activity the subject of the Finance Documents or in connection with which, financial accommodation or funds raised under a Finance Document are used or provided.

This includes legal costs and expenses on a full indemnity basis, expenses incurred in retaining consultants to evaluate matters of material concern to the Lender and administrative costs.

		
	26
	Stamp Duties and GST

		
	26.1
	Stamp duties

		
	(a)
	Each Obligor shall pay or reimburse the Lender on demand for all stamp, transaction, registration and similar Taxes (including fines and penalties) on or in relation to the execution, delivery, performance or enforcement of any Finance Document or any payment, receipt or other transaction contemplated by any Finance Document.

		
	(b)
	Each Obligor shall indemnify the Lender on demand against any liability resulting from delay or omission to pay those Taxes except to the extent the liability results from failure by the Lender to pay any Tax after having been put in funds (with all necessary documents) to do so by an Obligor.

		
	26.2
	GST

	
		
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All payments to be made by an Obligor under or in connection with this Agreement and any other Finance Document have been calculated without regard to GST.
		
	(a)
	If all or part of any such payment is the consideration for a taxable supply for GST purposes then, when an Obligor makes the payment:

		
	(i)
	it must pay to the Lender an additional amount equal to that payment (or part) multiplied by the appropriate rate of GST (currently 10%); and

		
	(ii)
	the Lender will promptly provide to an Obligor a tax invoice complying with the relevant GST legislation.

		
	(b)
	Where under this Agreement or any other Finance Document an Obligor is required to reimburse or indemnify for an amount, the Obligor will pay the relevant amount (including any sum in respect of GST) less any GST input tax credit the Lender determines that it is entitled to claim in respect of that amount.

		
	27
	Set‐Off

		
	(a)
	The Lender may apply at any time any credit balance in any currency (whether or not matured) in any account of an Obligor with any branch of the Lender towards satisfaction of any sum then due and payable by it to the Lender under or in relation to any Finance Document. The Lender need not make the application.

		
	(b)
	The Lender may exchange currencies to make that application.

		
	28
	Waivers, Remedies Cumulative

		
	(a)
	No failure to exercise and no delay in exercising any right, power or remedy under any Finance Document operates as a waiver, nor does any single or partial exercise of any right, power or remedy preclude any other or further exercise of that or any other right, power or remedy.

		
	(b)
	The rights, powers and remedies provided to the Lender in the Finance Documents are in addition to, and do not exclude or limit, any right, power or remedy provided by law.

		
	29
	Severability of Provisions

Any provision of any Finance Document which is prohibited or unenforceable in any jurisdiction is ineffective as to that jurisdiction to the extent of the prohibition or unenforceability. That does not invalidate the remaining provisions of that Finance Document nor affect the validity or enforceability of that provision in any other jurisdiction.

		
	30
	Survival of Obligations

		
	(a)
	(Representations and warranties) Each representation or warranty in a Finance Document survives the execution and delivery of the Finance Documents and the provision of financial accommodation.

		
	(b)
	(Indemnity) Each indemnity, reimbursement or similar obligation in a Finance Document (including clause 11 (Taxation) and 12 (Change in Law):

		
	(i)
	is a continuing, separate and independent obligation;

		
	(ii)
	is payable on demand; and

		
	(iii)
	survives termination or discharge of the relevant Finance Document and repayment of financial accommodation.

	
		
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Where a party is obliged to indemnify another party against a loss, cost, charge, liability, expense, deficiency or other amount, it shall pay on demand from time to time the amount stated by the other party to be the amount indemnified against.

		
	31
	Personal properties securities law

		
	31.1
	PPSA security interests

		
	(a)
	If a Finance Document (or a transaction in connection with it) is or contains a security interest for the purposes of the PPSA, each Obligor agrees that to the extent the law permits them to be excluded or waived:

		
	(i)
	any provision of the PPSA may be excluded by the relevant secured party giving notice to the grantor that that provision is excluded; and

		
	(ii)
	the Lender need not give any notice required under any provision of the PPSA.

		
	(b)
	If the Lender determines that a Finance Document (or a transaction in connection with it) is or contains a security interest, each Obligor agrees to do anything (such as obtaining consents, signing and producing documents, getting documents completed and signed and supplying information) which the Lender asks and considers necessary for the purposes of:

		
	(i)
	ensuring that the security interest is enforceable, perfected (including, where possible, by control in addition to registration) and otherwise effective; or

		
	(ii)
	enabling the Lender to apply for any registration, or give any notification, in connection with the security interest so that the security interest has the priority required by the Lender; or

		
	(iii)
	enabling the Lender to exercise rights in connection with the security interest.

		
	31.2
	PPSA undertaking 

If an Obligor holds any security interests and if a failure by the Obligor to perfect some or all of those security interests would materially adversely affect the business, operation, property, condition (financial or otherwise), or prospects of that Obligor or the Obligors (taken as a whole), the Obligor agrees to implement, maintain and comply in all material respects with, procedures for the perfection of those security interests. These procedures must include procedures designed to ensure that the Obligor takes all reasonable steps under the PPSA to perfect any such security interest with the highest ranking priority reasonably possible (such as perfecting a purchase money security interest, perfecting a security interest by control or including the serial number in a financing statement for personal property that may or must be described by a serial number).
If the Lender asks, the Obligor agrees to arrange at its expense an audit of the PPSA procedures. The Lender may only ask the Obligor to do this if it reasonably suspects that an Obligor is not complying with this clause.

		
	31.3
	Costs of further steps and undertaking

Everything an Obligor is required to do under this clause 31 is at the Obligor's expense. The Obligor agrees to pay or reimburse the costs and expenses of the Lender in connection with anything the Obligor is required to do under this clause.

		
	31.4
	General PPSA provisions

	
		
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	(a)
	In this clause 31, security interest has the meaning given to it in the PPSA.

		
	(b)
	This clause 31 applies despite any other clause in a Finance Document.

		
	32
	Moratorium Legislation

To the full extent permitted by law all legislation which at any time directly or indirectly:
		
	(a)
	lessens, varies or affects in favour of an Obligor any obligation under a Finance Document; or

		
	(b)
	delays, prevents or prejudicially affects the exercise by the Lender of any right, power or remedy conferred by a Finance Document,

is excluded from the Finance Documents.

		
	33
	Assignments

		
	33.1
	Assignment by Obligor

An Obligor may only assign or transfer any of its rights or obligations under this Agreement with the prior written consent of the Lender.

		
	33.2
	Assignment by Lender

The Lender may assign or transfer by novation all or any of its rights or obligations under this Agreement or any other Finance Document at any time.

		
	33.3
	Securitisation

The Lender may, without the consent of any Obligor, assign, transfer, sub‐participate or otherwise deal with all or any part of its rights and benefits under the Finance Documents to a securitisation vehicle.

		
	33.4
	Disclosure

The Lender may:
		
	(a)
	without the consent of any Obligor, disclose to any ratings agency or Government Agency; or

		
	(b)
	with the prior consent of the Borrower (who shall not unreasonably withhold that consent) disclose to a proposed assignee, transferee or sub‐Lender,

any information which relates to any Obligor or Finance Document or was furnished in connection with the Finance Documents.

		
	33.5
	No increased costs

Despite anything to the contrary in this Agreement, if the Lender assigns its rights under this Agreement, the Borrower will not be required to pay any net increase in the total amount of costs, Taxes, fees or charges which is a direct result of the assignment and of which the Lender or its assignee was aware or ought reasonably to have been aware on the date of the assignment.

		
	33.6
	Execution of further documentation

Where the Lender exercises its rights under clause 33.2, each Obligor must execute such documents and do all things necessary to assist the Lender to assign, novate, transfer, sub-participate or otherwise dispose of or deal with any part of its rights or obligations under the Facility and this Agreement, including by way of syndication or securitisation.

	
		
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	34
	Notices

		
	34.1
	Notices

		
	(a)
	All notices, requests, demands, consents, approvals, agreements or other communications to or by a party to this Agreement (each a Notice) (whether being given under this Agreement or under another Finance Document):

		
	(i)
	must be in writing signed by an Authorised Officer of the sender (or in the case of an email message, sent from the email address of an Authorised Officer of the sender); and

		
	(ii)
	will be conclusively taken to be given or made when delivered, received or left at the address, fax number or email address of the recipient shown in Schedule 1 (Notice Details) or to any other address or fax number which it may have notified the sender.

		
	(b)
	A Notice is given and received:

		
	(i)
	if it is hand delivered:

		
	(A)
	by 4.00pm (local time in the place of receipt) on a Business Day – on that day; or

		
	(B)
	after 4.00pm (local time in the place of receipt) on a Business Day, or on a day that is not a Business Day – on the next Business Day; and

		
	(ii)
	if it is sent by fax:

		
	(A)
	by 4.00pm (local time in the place of receipt, equivalent to the time shown on the transmission confirmation report produced by the fax machine from which it was sent) on a Business Day – on that day; or

		
	(B)
	after 4.00pm (local time in the place of receipt, equivalent to the time shown on the transmission confirmation report produced by the fax machine from which it was sent) on a Business Day, or on a day that is not a Business Day – on the next Business Day; and

		
	(iii)
	if it is sent by post:

		
	(A)
	within Papua New Guinea – three Business Days after posting; or

		
	(B)
	to or from a place outside Papua New Guinea – seven Business Days after posting. 

		
	34.2
	Notices sent by email

		
	(a)
	Any Notice which may be given or made under this Agreement or any other Finance Document may instead be sent by email if:

		
	(i)
	the Notice is purported to be sent by an Authorised Officer of the sender;

		
	(ii)
	the Notice is sent to the email address last notified by the intended recipient to the sender: and

		
	(iii)
	the sender keeps an electronic copy of the Notice sent.

The recipient of a Notice sent under this clause 34.2 must promptly acknowledge receipt of a Notice sent under this clause and must keep an electronic copy of the Notice.

	
		
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	(b)
	Where a Notice required to be provided by an Obligor under this Agreement or a Finance Document has been given by email in accordance with this clause, the sender must promptly provide:

		
	(i)
	the original of any Drawdown Notice to the Lender; and

		
	(ii)
	for any other Notice, the original of that Notice to the Lender and any other relevant person upon request. 

		
	34.3
	Receipt of Notices sent by email

A Notice sent under clause 34.2 (whether for the purposes of giving Notice under this Agreement or under any other Finance Document) will be conclusively taken to be duly given or made on the first to occur of:
		
	(a)
	receipt by the sender of an email acknowledgement from the recipient’s information system showing that the Notice has been delivered to the email address stated above;

		
	(b)
	the time that the Notice enters an information system which is under the control of the recipient; and

		
	(c)
	the time that the Notice is first opened or read by an employee or officer of the recipient,

but if the result is that a Notice would be taken to be given or made on a day that is not a Business Day in the place to which the Notice is sent or is later than 4.00pm (local time) it will be conclusively taken to have been duly given or made at the start of business on the next Business Day in that place.

		
	35
	Confidentiality

		
	35.1
	Confidentiality

The parties must keep confidential the terms of the Facility, each Finance Document and any information which either of them may provide to each other.

		
	35.2
	Permitted disclosure

Clause 35.1 does not prevent disclosure:
		
	(a)
	if allowed or required by law;

		
	(b)
	if required by any securities exchange or any rating agency;

		
	(c)
	if required under a binding order of a Government Agency;

		
	(d)
	by the Lender in enforcing a Finance Document or in a proceeding arising out of or in connection with a Finance Document or to the extent that disclosure is regarded by the Lender as necessary to protect its interests;

		
	(e)
	if the information is in the public domain;

		
	(f)
	by the Lender to its agents, auditors, employees and officers or to any controller appointed by the Lender to an Obligor;

		
	(g)
	to the professional advisers or consultants of any party involved in connection with the Finance Documents who are bound by a duty or obligation of confidence;

		
	(h)
	to an Associate of the Lender, Borrower or Guarantor in which case this clause 35.2 will apply to that Associate;

	
		
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	(i)
	to an entity whom the Lender assigns, transfers, novates, sub-participates or sells-down by whatever form (or may potentially assign, transfer, novate, sub-participate or sell-down) all or any of its rights and/or obligations under any Finance Document;

		
	(j)
	with the prior written consent of the party providing the information; or

		
	(k)
	as expressly required or permitted by any Finance Document.

		
	35.3
	Privacy Statement

If an Obligor gives the Lender personal information about someone else, or directs someone else to give their personal information to the Lender the Borrower shall ensure that the relevant Obligor must show that person a copy of the Privacy Statement so that they understand the manner in which their personal information may be used or disclosed.

		
	35.4
	Survival of obligation

This clause survives the termination of this Agreement.

	
		
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	36
	Authorised Officers

Each Obligor irrevocably authorises the Lender to rely on a certificate by a person purporting to be its director or secretary as to the identity and signatures of its Authorised Officers. Each Obligor warrants that those persons have been authorised to give notices and communications under or relating to the Finance Documents.

		
	37
	Governing law and jurisdiction

This Agreement is governed by the laws of Papua New Guinea. Each Obligor submits to the non‐exclusive jurisdiction of courts exercising jurisdiction there.

		
	38
	Counterparts

This Agreement may be executed in any number of counterparts, each executed by one or more parties. A party may do this by executing and electronically transmitting a copy to one or more others or their representative.

		
	39
	Acknowledgement by each Obligor

Each Obligor confirms that:
		
	(a)
	it has not entered into any Finance Document in reliance on, or as a result of, any conduct of any kind of or on behalf of the Lender or any Related Entity of the Lender (including any advice, warranty, representation or undertaking); and

		
	(b)
	neither the Lender nor any Related Entity of the Lender is obliged to do anything (including disclose anything or give advice),

except as expressly set out in the Finance Documents.

		
	40
	Borrower as agent

The Guarantor irrevocably and unconditionally appoints the Borrower to act as its agent in relation to this Agreement and each other Finance Document and irrevocably authorises:
		
	(a)
	the Borrower on its behalf to:

		
	(i)
	supply all information concerning itself contemplated by this Agreement and the other Finance Documents to the Lender;

		
	(ii)
	give all notices, certificates, instructions or other communications to the Lender; and

		
	(iii)
	execute on its behalf any notice or other agreement or deed or to effect any relevant consents, waivers, amendments or variations arising out of, under or in connection with any Finance Document, notwithstanding that they may affect the Guarantor, without further reference to or the consent of the Guarantor; and

		
	(b)
	the Lender to give any notice, demand or other communication to it pursuant to this Agreement or any other Finance Document to the Borrower,

and in each case the Guarantor will be bound as though it has given the notice or instructions or executed or made the agreements or deeds, or effected the amendments or variations, or received the relevant notice, demand or other communication.

41    Anti-Money Laundering

	
		
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	(a)
	Each Obligor agrees that the Lender may delay, block or refuse to process any transaction without incurring any liability if the Lender suspects that:

		
	(i)
	the transaction may breach any law in Papua New Guinea or any other country; or

		
	(ii)
	the transaction may directly or indirectly involve the proceeds of, or be applied for the purposes of, unlawful conduct.

		
	(b)
	Each Obligor must provide all information to the Lender which the Lender reasonably requires in order to manage anti-money laundering or counter-terrorism financing risk or to comply with any laws in Papua New Guinea or any other country. Each Obligor agrees that the Lender may disclose any information concerning the Obligors to:

		
	(i)
	any law enforcement, regulatory agency or court where required by an such law, in Papua New Guinea or elsewhere; or

		
	(ii)
	any correspondent or agent the Lender uses to make the payment for the purpose of compliance with any such law.

		
	(c)
	Each Obligor warrants that it is acting on its own behalf in entering into the Finance Documents. Each Obligor declares and undertakes to the Lender that the payment of money by the Lender in accordance with its (or any other Obligor's) instructions will not breach any anti-money laundering or counter-terrorism financing laws in Papua New Guinea or any other country where the Facility (or amounts drawn under the Facility) may be used.

	
		
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Schedule 1

Notice Details 

Borrower
Morobe Consolidated Goldfields Limited
Address:    C/- Ashurst, P.O. Box 850, Port Moresby
Fax number:    +617 3320 3740
Email:        Aubrey.Testa@harmonyseasia.com
Attention:    Aubrey Testa

Guarantor
Harmony Gold (Australia) Pty Ltd
Address:    P.O. Box 1562, Milton, Queensland 4064, Australia
Fax number:    +617 3320 3740
Email:        David.Lightfoot@harmonyseasia.com
Attention:    David Lightfoot

Lender
Westpac Bank – PNG – Limited (Company No. 1-5295) 
Address:    PO Box 706, Port Moresby
Fax number:    +675 3127434
Email:        Rohan.Arora@westpac.com.au
Attention:    Rohan Arora

	
		
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	Facility Agreement
	

Schedule 2    

Approved Equipment
	
									
	Item
	Description
	Make
	Model
	YOM
	Serial Number
	VIN
	Engine Number
	Unit
Number

	1
	Komatsu HM400-3 Truck
	KOMATSU
	HM400-3
	2015
	3824
	 
	 
	AT542

	2
	Komatsu HM400-3 Truck
	KOMATSU
	HM400-3
	2015
	3827
	 
	 
	AT543

	3
	Komatsu HM400-3 Truck
	KOMATSU
	HM400-3
	2015
	3825
	 
	 
	AT544

	4
	Komatsu HM400-3 Truck
	KOMATSU
	HM400-3
	2015
	3807
	 
	 
	AT545

	5
	Komatsu HM400-3 Truck
	KOMATSU
	HM400-3
	2015
	3805
	 
	 
	AT546

	6
	Komatsu HD785-7 Dump Truck
	KOMATSU
	1-10785-7
	2011
	9436
	 
	 
	DT332

	7
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2013
	30703
	 
	 
	DT336

	8
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2013
	30623
	 
	 
	DT335

	9
	Komatsu 10785-7 Dump Truck
	KOMATSU
	HD785-7
	2011
	9642
	 
	 
	DT334

	10
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2011
	9610
	 
	 
	DT333

	11
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2012
	30311
	 
	 
	DT337

	12
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2012
	30252
	 
	 
	DT338

	13
	Komatsu HD785-7 Dump Truck
	KOMATSU
	HD785-7
	2012
	30307
	 
	 
	DT339

	14
	Komatsu 10785-7 Dump Truck
	KOMATSU
	HD785-7
	2012
	30257
	 
	 
	DT340

	15
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2014
	29009996
	 
	 
	DT341

	16
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2014
	29030397
	 
	 
	DT342

	17
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2014
	29030420
	 
	 
	DT343

	18
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2014
	29009982
	 
	 
	DT344

	19
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2014
	29009988
	 
	 
	DT345

	20
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2012
	8962
	 
	 
	DT346

	21
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2012
	9287
	 
	 
	DT347

	22
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2012
	8944
	 
	 
	DT348

	23
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2011
	8863
	 
	 
	DT349

	24
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2012
	9349
	 
	 
	DT350

	25
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2012
	9284
	 
	 
	DT351

	26
	Komatsu PC 1250-8R
	KOMATSU
	PC 1250-8R
	2017
	EX653
(35795
	 
	 
	EX653

	27
	Komatsu PC 1250-8R
	KOMATSU
	PC 1250-8R
	2017
	EX654
35819
	 
	 
	EX654

	28
	Komatsu PC2000
Excavator
	KOMATSU
	PC2000-8
	2014
	20515
	 
	 
	EX706

	29
	Komatsu GD825 Grader SG404
	KOMATSU
	GD825-2
	2013
	i2913
	 
	 
	SG404

	30
	Service Truck HD465-7E
	KOMATSU
	HD465-7E1
	 
	20016
	 
	 
	ST504

	
		
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	Facility Agreement
	

	
									
	Item
	Description
	Make
	Model
	YOM
	Serial Number
	VIN
	Engine Number
	Unit
Number

	31
	Service Truck
HD465-7E
	KOMATSU
	HD465-7E1
	2013
	20010
	 
	 
	ST503

	32
	Komatsu D275A-5R
	KOMATSU
	D275A-5R
	2014
	TD607
45070
	 
	 
	TD607

	33
	Komatsu D275A-5R
	KOMATSU
	D275A-5R
	2014
	TD606
45094
	 
	 
	TD606

	34
	Komatsu D275A-5R
	KOMATSU
	D275A-5R
	2017
	TD608
(45188
	 
	 
	TD608

	35
	Komatsu D375A-6R
	KOMATSU
	D375A-6R
	2014
	TD707
65559
	 
	 
	TD707

	36
	Wheel Excavator R210W-9
	HYUNDAI
	ROBEX210W9
	 
	ROBEX210W
_9 0442
	 
	 
	WE-201

	37
	Komatsu WA900 Wheel Loader
	KOMATSU
	WA900-3
	2012
	60217
	 
	 
	WL604

	38
	Komatsu 10785-7 Truck
	KOMATSU
	HD785-7
	2013
	30581
	 
	 
	 

	39
	Komatsu HD785-7 Truck
	KOMATSU
	HD785-7
	2013
	30582
	 
	 
	 

	40
	All Terrain Crane
	GROVE
	Grove5250L (250T)
	2018
	52506015
	W09250560JWG12015
	 
	CN07

	41
	25T Terrex
Franna Crane
	TERRE-X
	MAC 25T
(25T Franna
Crane
	2018
	251164
	 
	 
	CN06

	42
	D65 Drill
	ATLAS
COPCO
	D65 Drill
	2018
	TMG17SEDO
506
	 
	 
	SD503

	43
	D65 Drill
	ATLAS
COPCO
	065 Drill
	2018
	TMG17SEDO
509
	 
	 
	SD504

	44
	Cat Excavatar
6030
	Cat
	6030
	2015
	 
	 
	 
	EX801

	45
	Prime Movers (Iveco Astra)
	Iveco
	ASTRA
HD9EU3
66.48T Truck-Tractors-6x6-H2166
	2018
	ZCNH96639F PC04762
	 
	F3BE0681E**B191-240332
	 

	46
	Prime Movers (Iveco Astra)
	Iveco
	ASTRA
HD9EU3
66.48T Truck-Tractors-6x6-H2165
	2018
	ZCNH96637F PC04761
	 
	F3BE0681**B191-240300
	 

	47
	Prime Movers (Iveco Astra)
	Iveco
	HD9EU3
66.48T Truck-Tractors-6x6-H2167
	2018
	ZCNH96630F PC04763
	 
	F3BE0681E**B191-240323
	 

	48
	Prime Movers (Iveco Astra)
	Iveco
	ASTRA
HD9EU3
66.48T Truck-Tractors-6x6-H2168
	2018
	ZCNH96632F PC04764
	 
	F3BE0681E**B191-240273
	 

	49
	Bus Enduro 4 x 4 Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728106600222
	N04CUH21673
	 

	50
	Bus Enduro 4 x 4 Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728X06600235
	N04CUH21781
	 

	51
	Bus Enduro 4 x 4
Toyota
	Toyota
	4x4 16
Coaster
	2018
	 
	JTGFP728106600267
	N04CUH21859
	 

	52
	Bus Enduro 4 x 4 Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728606600247
	N04CUH21810
	 

	53
	Bus Enduro 4 x 4 Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728906600260
	N04CUH21830
	 

	54
	Bus Enduro 4 x 4
Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728406600179
	N04CUH21397
	 

	55
	Bus Endur04 x 4
Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728206600245
	N04CUH21806
	 

	56
	Bus Enduro 4 x 4 Toyota
	Toyota
	4x4 16 Seater
Coaster
	2018
	 
	JTGFP728406600134
	8155695
	 

	
		
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Schedule 3    

Conditions Precedent
		
	1
	Executed Finance Documents

Duly executed counterparts of each Finance Document (in registrable form, where relevant).
		
	2
	Verification Certificate

A certificate in relation to each Obligor given by a director and a secretary of that entity substantially in the form of Schedule 5 (Verification Certificate) with the attachments referred to and dated not earlier than the date of this Agreement. 
		
	3
	Consents and BPNG Authorisation

		
	(a)
	Authority of the Bank of Papua New Guinea, for the Borrower to enter into the Facility Agreement (being an agreement which creates an obligation in favour of the Lender, in a foreign currency).

		
	(b)
	The consent of each relevant Government Agency to the entry into and performance of (and if relevant, registration of) each Finance Document that is required by law or considered necessary or desirable by the Lender.  

		
	4
	Registration of Securities

		
	(a)
	Evidence that each security interest created under the Specific Security Deed has been registered on each relevant register in Papua New Guinea.

		
	(b)
	Evidence that all registered Securities over the Secured Property (other than in favour of the Lender) have been or will be released on or before the first Drawdown Date except any Security permitted by clause 16.2(c) (Negative pledge). 

		
	(c)
	Each document necessary to register:

		
	(i)
	each Ancillary Security in an appropriate register; and

		
	(ii)
	any other Finance Document with each relevant Government Agency, 

is duly executed and completed.
		
	5
	Stamping

Either:
		
	(a)
	evidence that no Finance Document is liable to stamp duty; or

		
	(b)
	for each Finance Document which is liable to duty and has not been duly stamped for the full amount of all advances which may be made under this Agreement, evidence that it has been or will be lodged for stamping with the appropriate relevant Government Agency with a cheque or other appropriate remittance for the full amount of duty payable. 

		
	6
	Secured Property

Results of searches, requisitions and enquiries and in relation to the Secured Property.
		
	7
	Title Documents

All documents and evidence of title to the Secured Property and any other documents necessary to register each Security Document on each relevant register in Papua New Guinea.

	
		
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	8
	Opinions

		
	(a)
	An Australian law opinion of Allens, legal advisers to the Lender, in relation to the Finance Documents.

		
	(b)
	A Papua New Guinea law opinion of Allens, legal advisers to the Lender, in relation to the Finance Documents. 

		
	9
	Valuation

A Valuation of the Approved Equipment as required by the Lender addressed to or capable of being relied upon by the Lender.
		
	10
	Insurance

Evidence that appropriate policies of insurance covering all usual insurable risks (including fire, loss of rent and public liability insurance) have been effected and remain current in respect of the Secured Property, noting the Lender's interest as mortgagee and loss payee.
		
	11
	Fees and expenses

Payment of all fees and expenses payable in connection with the Facility that this Agreement requires to be paid on or prior to the first Drawdown Date.
		
	12
	Anti-money laundering – 'Know Your Customer' Requirements

All documents and other evidence reasonably requested by the Lender in order for the Lender to carry out all necessary 'know your customer' or other similar checks in relation to each Obligor under all applicable laws and regulations.
		
	13
	Major transaction

Evidence that the Borrower's entry into each Finance Document to which it is a party has been duly approved by its shareholders for the purposes of sections 89 and 110 of the Companies Act 1997. 
		
	14
	Foreign enterprise

Evidence that the entry by the Borrower into each Finance Document to which it is a party is authorised to the extent necessary under a certificate issued under the Investment Promotion Act 1992.
		
	15
	Other information

Such other items or information which the Lender reasonably requests in connection with the Facility.

	
		
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Schedule 4    

Drawdown Notice
Morobe Consolidated Goldfields Limited – Drawdown Notice
This is an irrevocable notice under clause 3 of the Facility Agreement dated [*] (the Facility Agreement).
		
	1
	We wish to draw under the Facility on [*] (the Drawdown Date).

Note: Date is to be a business day.
		
	2
	The total principal amount to be drawn is USD[*].

Note: Amount to comply with the limits in clause 3.
		
	3
	Please remit the proceeds to account number [*] at [*].

		
	4
	We represent and warrant on behalf of the Borrower and the Guarantor as follows.

		
	(a)
	[Except as disclosed in paragraph (c)] the representations and warranties in the Facility Agreement are true as though they had been made at the date of this Drawdown Notice in respect of the facts and circumstances then subsisting.

		
	(b)
	[Except as disclosed in paragraph (c)] no Event of Default [or Potential Event of Default] continues or will result from the drawing.

		
	(c)
	[Details of the exceptions to paragraphs (a) and (b) are as follows: [*], and we [have taken/propose] the following remedial action [*].]

Note: Inclusion of a statement under paragraph (c) will not prejudice the conditions precedent in the agreement.

Definitions in the Facility Agreement apply in this Drawdown Notice.

On behalf of Morobe Consolidated Goldfields Limited
By:        [Authorised Officer]
Dated [*]
Note: LEAVE THE NOTES IN THE DOCUMENTS.

	
		
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Schedule 5    

Verification Certificate
Note: To be signed by two directors of the Obligor.

TO:    [*]
[*]
[*]

Dear [insert name]
Facility for Morobe Consolidated Goldfields Limited
We, [*] and [*], are both directors of [*] (the Company).
We refer to the Facility Agreement dated [*] (the Facility Agreement) between the Company, [Morobe Consolidated Goldfields Limited/ Harmony Gold (Australia) Limited] and Westpac Bank ‐ PNG ‐ Limited.
Definitions in the Facility Agreement apply in this Certificate.
Attached are true, up‐to‐date and complete copies of the following.
		
	1
	[In relation to the Borrower] Extracts of minutes of a meeting of directors of the Company authorising the execution and delivery of, and performance of the Company's obligations under, each Finance Document to which it is expressed to be a party explaining why the directors believe it is in the best interests and commercial benefit of, the Company. 

		
	2
	[In relation to the Borrower] Extracts of minutes of a meeting of all members of the Company authorising execution of any Finance Document to which it is expressed to be a party relating to the above facility. Such resolutions have not been amended, modified or revoked and are in full force and effect. 

		
	3
	[In relation to the Borrower] A certificate of incorporation and constituent documents for the Company, if they are not already held by the Lender.

		
	4
	Specimen signatures of all those authorised to give [drawdown and other] notices for the Company[ or to sign the Finance Documents], if they are not already held by the Lender.

		
	5
	[The following Authorisations:

		
	(a)
	[*];

		
	(b)
	[*]

		
	6
	][[*]

]If any of the documents in paragraph 3 or 4 are already held by the Lender, we each confirm they are complete and up‐to‐date.
We each certify that:
		
	1
	[In relation to the Borrower] [the Company does not have a constitution;

		
	2
	]the Company is solvent and will not become insolvent as a result of the entry into and performance of the Facility Agreement;

		
	3
	[In relation to the Borrower] no Security is registered against Approved Equipment under the PPSA on the date of this certificate;

	
		
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	4
	no Event of Default or Potential Event of Default has occurred; 

		
	5
	the Company and the Project is in compliance with all applicable Environmental Laws and Equator Principles; and

		
	6
	nothing has occurred that might reasonably be expected to give rise to a Material Adverse Effect.

	
			
	 
	 
	 

	Director Signature
	 
	Director Signature

	 
	 

	Print Name
	Print Name

Date:

	
		
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Schedule 6    

Privacy Statement

Westpac is committed to protecting the confidentiality of customer information. You can find out how Westpac is committed to protecting the privacy and security of the personal information you provide to it at the website under the heading Privacy.

In addition to Westpac’s duties under legislation, it has a general duty of confidentiality towards you, except in the following circumstances where:
•    Disclosure is compelled by law
•    There is a duty to the public to disclose
•    The interests of Westpac require disclosure
•    Disclosure is made with your express or implied consent.

If you:
(i)    Hold an account with someone else (for example a joint account)
(ii)    Have permitted someone else to view your accounts as a Nominee;
you consent to your personal details being disclosed to that other person when that other person views a statement of the account. This may include your address details.

Definitions

"We", "our", "us", "Westpac" means Westpac Bank – PNG – Limited. 

	
		
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EXECUTED as an agreement.
Each attorney executing this Agreement states that he has no notice of revocation or suspension of his power of attorney.

	
			
	The Common Seal of Morobe Consolidated Goldfields Limited was affixed in the presence of:
	 
	 

	/s/ JJ van Heerden
	 
	/s/ Aubrey Testa

	Director Signature
	 
	Director Signature

	JJ van Heerder
	Aubrey Testa

	Print Name
	Print Name

	
			
	Executed in accordance with section 127 of the Corporations Act 2001 by Harmony Gold (Australia) Pty Ltd:
	 
	 

	/s/ JJ van Heerden
	 
	/s/ D Lightfoot

	Director Signature
	 
	Director/Secretary Signature

	JJ van Heerden
	D Lightfoot

	Print Name
	Print Name

	
			
	Signed for Westpac Bank – PNG – Limited by its attorneys under power of attorney in the presence of:
	 
	 

	/s/ Kenneth Bali
	 
	/s/ Yangung Meraudje

	Witness Signature
	 
	Attorney Signature

	Kenneth Bali
	Yangung Meraudje

	Print Name
	Print Name

	

	 
	/s/ Adrian Huges

	 
	 
	Attorney Signature

	 
	Adrian Huges

	 
	Print Name

	
		
	atsb A0142794850v8 120769650   18.10.2019
	55Exhibit

HARMONY GOLD MINING COMPANY LIMITED DEFERRED SHARE PLAN 2018
SCHEME RULES
                                                                                                                                                                                                           
PART 1 – INTRODUCTION 
		
	1.
	DEFINITIONS AND INTERPRETATION 

		
	1.1
	In the DSP, unless the context indicates otherwise, the following words and expressions will have the meanings assigned thereto:

		
	1.1.1
	Administrator means a service provider appointed by an Employer Company to act on behalf of that Employer Company in performing the obligations of that Employer Company in terms of the DSP;

		
	1.1.2
	Applicable Laws in relation to any person or entity, all and any statutes, subordinate legislation and common law; regulations; ordinances and by‐laws; accounting standards; directives, codes of practice, circulars, guidance notices, judgments and decisions of any competent authority, compliance with which is mandatory for that person or entity;

		
	1.1.3
	Award means the award to an Eligible Employee of Deferred Shares in terms of clause 12 and the word “awarded” shall be construed accordingly;

		
	1.1.4
	Award Date means the date on which Remco resolves to make an Award to an Eligible Employee;

		
	1.1.5
	Award Letter means the letter delivered by an Employer Company to an Eligible Employee in terms of clause 12.2, notifying such Eligible Employee of an Award and setting out the terms of the Award;

		
	1.1.6
	Award Price means a value that is determined by using the volume weighted average share price of a Share on the JSE over the five Business Days immediately prior to the Award Date;

		
	1.1.7
	Award Value means the ZAR value of that portion of the incentive that will take the form of Deferred Shares in accordance with the provisions of the DSP;

		
	1.1.8
	Auditors means the registered auditors of the Company from time to time;

		
	1.1.9
	Board means the board of directors of the Company or any committee thereof to whom the powers of the board of directors of the Company in respect of the Total Incentive Plan are delegated;

		
	1.1.10
	Broker means the financial intermediary appointed by the Company or the Employer Company to perform the services specified in the DSP on behalf of the Participants;

		
	1.1.11
	Business Day means any day on which the JSE is open for the transaction of business;

		
	1.1.12
	Change of Control means all circumstances where a party (or parties acting in concert), directly or indirectly, obtains ‐

		
	1.1.12.1
	beneficial ownership of the specified percentage or more of the Company's issued Shares; or

		
	1.1.12.2
	control of the specified percentage or more of the voting rights at meetings of the Company; or

		
	1.1.12.3
	the right to control the management of the Company or the composition of the Board; or

		
	1.1.12.4
	the right to appoint or remove directors holding a majority of voting rights at Board meetings; or

		
	1.1.12.5
	the approval by the Company's shareholders of, or the consummation of, a merger or consolidation of the Company with any other business or entity, or upon a sale of the whole or a major part of the Company's assets or undertaking.

For the purposes of this 1.1.12 the expression "specified percentage" shall bear the meaning assigned to it from time to time in the Takeover Regulations read with the Companies Act, presently being 35%;

1

		
	1.1.13
	Companies Act means the South African Companies Act, 71 of 2008;

		
	1.1.14
	Company means Harmony Gold Mining Company Limited, a public company duly incorporated and registered in accordance with the laws of the Republic of South Africa under registration number 1950/038232/06;

		
	1.1.15
	Deferred Shares means a conditional right to receive Shares, the Vesting of which is subject to continued employment, as specified in an Award Letter;

		
	1.1.16
	DSP means the Harmony Gold Mining Company Limited Deferred Share Plan 2018, established in terms of these Rules;

		
	1.1.17
	Date of Termination of Employment means the date upon which a Participant is no longer employed by, or ceases to hold salaried office in, any Employer Company; provided that, where a Participant's employment is terminated without notice or on terms in lieu of notice, the Date of Termination of Employment shall be deemed to occur on the date on which the termination takes effect, and where such employment is terminated with notice, the Date of Termination of Employment shall be deemed to occur upon the date on which that notice expires;

		
	1.1.18
	Dismissal based on Operational Requirements means the Retrenchment of a Participant based on the Employer Company’s economic, technological, structural or similar needs;

		
	1.1.19
	Eligible Employee means an Employee eligible for participation in the Total Incentive Plan, namely a Prescribed Officer, Executive Manager or Manager of any member of the Group;  [Sch 14.1(a)]

		
	1.1.20
	Employee means any person holding full-time salaried employment or office (including any executive director but excluding a non-executive director) with any Employer Company;   [Sch 14.1(a)]

		
	1.1.21
	Employer Company means the specific entity (which includes both local and foreign entities) within the Group that is the employer of a particular Participant;

		
	1.1.22
	Executive Manager means an Employee identified and disclosed as an executive manager by the Remco for purposes of the Total Incentive Plan;

		
	1.1.23
	Fault Termination means the termination of employment of a Participant by the Group by reason of-

		
	1.1.23.1
	misconduct;

		
	1.1.23.2
	poor performance; or

		
	1.1.23.3
	resignation by the Participant; [Sch 14.1(h)]

		
	1.1.24
	Financial Markets Act means the Financial Markets Act, 19 of 2012;

		
	1.1.25
	Financial Year means the Company’s financial year, which runs from 1 July to 30 June;

		
	1.1.26
	Group means the Company and any other company, body corporate or other undertaking which is or would be deemed to be a subsidiary of the Company in terms of the Companies Act, and the expression "member of the Group" shall be construed accordingly; [Sch 14.1(a)]

		
	1.1.27
	Ill-health means a physical, mental or psychological condition, including a disability or a condition caused by an injury, diagnosed by a Company approved Medical Practitioner, which renders the Employee incapable of performing his duties in terms of his employment contract;

		
	1.1.28
	Implementation Date in relation to a Change of Control, the date upon which such Change of Control becomes effective;

		
	1.1.29
	Income Tax Act means the South African Income Tax Act, 58 of 1962 or a similar Act promulgated in countries outside of South Africa;

2
Final DSP - as approved by the JSE

		
	1.1.30
	JSE means the JSE Limited, a public company incorporated in accordance with the laws of the Republic of South Africa under registration number 2005/022939/06, which is licensed as an exchange in terms of the Financial Markets Act;

		
	1.1.31
	Listings Requirements means the JSE Limited Listings Requirements;

		
	1.1.32
	LRA means the Labour Relations Act, 66 of 1995, as amended or substituted;

		
	1.1.33
	Manager means an Employee identified and disclosed as a manager by the Remco for purposes of the Total Incentive Plan;

		
	1.1.34
	Medical Practitioner means a person who is certified to diagnose and treat patients and who is registered with a professional council established by an Act of the South African Parliament or its equivalent in countries outside of South Africa;

		
	1.1.35
	No Fault Termination means the termination of employment of a Participant by the Group by reason of -

		
	1.1.35.1
	death;

		
	1.1.35.2
	injury, disability or Ill‐health, in each case as certified by a qualified Medical Practitioner nominated by the relevant Employer Company;

		
	1.1.35.3
	dismissal based on Operational Requirements as contemplated in the LRA;

		
	1.1.35.4
	retirement on or after his Retirement Date;

		
	1.1.35.5
	the company by which he is employed ceasing to be a member of the Group; 

		
	1.1.35.6
	the undertaking in which he is employed being transferred to a transferee which is not a member of the Group; [Sch 14.1(h)]

		
	1.1.36
	Notice means the notice contemplated in clause 14;

		
	1.1.37
	Participant means an Eligible Employee that receives an Award in terms of clause 12 and thereby becomes subject to the terms and conditions of the DSP;

		
	1.1.38
	Personal Information means personal information as defined in section 1 of the Protection of Personal Information Act, 4 of 2013;

		
	1.1.39
	Policy means the Harmony Total Incentive Plan Policy made in terms of clause 4, as amended by Remco from time to time;

		
	1.1.40
	Prescribed Officer means an Employee identified and disclosed as a prescribed officer by the Remco for purposes of the Total Incentive Plan, including the executive directors;

		
	1.1.41
	Remco means the Remuneration Committee of the Board or any person(s) to whom the powers of Remco in respect of the Total Incentive Plan have been delegated (but then only in accordance with the terms of such delegation), which persons do not hold any executive office within the Group; [Sch 14.4][Sch 14.5] 

		
	1.1.42
	Retirement Date means the earliest date on which, or age at which, an Eligible Employee can be required to retire by any Employer Company;

		
	1.1.43
	Retrenchment means the termination of the employment of an Employee by virtue of the operational requirements of the Employer Company concerned;

		
	1.1.44
	Rules means these Rules, as amended from time to time;

		
	1.1.45
	Secretary means the company secretary for the time being of the Company;

		
	1.1.46
	Settle means delivery to the Participant of:

		
	1.1.46.1
	Shares:

3
Final DSP - as approved by the JSE

(a) purchased on the JSE; [Sch 14.9(c)]
(b) held by the Group (treasury Shares); or 
(c) that are allotted and newly issued to the Participant by the Company in accordance with these Rules; or
		
	1.1.46.2
	a cash amount if a Participant fails to deliver a Notice in accordance with the provisions of clause 14.2, and the words "Settlement" and "Settled" shall be construed accordingly.  It is recorded that any Shares which have been Settled to a Participant in terms of this DSP shall rank pari passu with Shares in all respects; [Sch 14.1(e)]

		
	1.1.47
	Shares means ordinary shares in the capital of the Company (or such other class of shares as may represent the same as a result of any reorganisation, reconstruction or other variation of the share capital of the Company to which the provisions of the DSP may apply from time to time);

		
	1.1.48
	Tax means any present or future tax or other charge of any kind or nature whatsoever imposed, levied, collected, withheld or assessed by any competent authority, and includes all income tax (whether based on or measured by income/revenue or profit or gain of any nature or kind or otherwise and whether levied under the Income Tax Act or otherwise), capital gains tax, value‐added tax and any charge in the nature of taxation, and any interest, penalty, fine or other payment on, or in respect thereof but specifically excluding issue duty, stamp duty, marketable securities tax and uncertificated securities tax;

		
	1.1.49
	Total Incentive Plan means the combined short-term and long-term incentive as set out in the Policy read with the Rules; 

		
	1.1.50
	Trading Day means any day on which the Shares are capable of being traded on the JSE;

		
	1.1.51
	Vest means the moment when a Participant is entitled to Settlement in accordance with clause 14 and “Vested” and “Vesting” shall have equivalent meanings;

		
	1.1.52
	Vesting Date subject to clauses 12, 16.5 and 16; means the date on which a Participant is entitled to Settlement in accordance with clause 14 and the Policy; provided that if the date falls on a date which, or during a period which:

		
	1.1.52.1
	by virtue of any Applicable Law or any policy of the Group (including any corporate governance policy) it is not permissible to Settle Shares to a Participant; or

		
	1.1.52.2
	by virtue of any Applicable Law or any policy of the Group (including any corporate governance policy) it is not permissible for a Participant to receive or otherwise deal/trade in Shares, the Vesting Date shall be the fifth Trading Day after the date on which it becomes permissible to Settle Shares to a Participant and/or for the Participant to receive or deal/trade in Shares (as the case may be);

		
	1.1.53
	Vesting Period means the period which commences on the Award Date and terminates on the Vesting Date; and

		
	1.1.54
	ZAR means South African Rands, the lawful currency of the Republic of South Africa.

		
	1.2
	General Interpretation

In these Rules ‐
		
	1.2.1
	clause headings are used for convenience only and shall be ignored in its interpretation;

		
	1.2.2
	unless the context clearly indicates a contrary intention, an expression which denotes ‐

		
	1.2.2.1
	any gender includes the other genders;

		
	1.2.2.2
	a natural person includes an artificial person (whether corporate or unincorporate) and vice versa;

		
	1.2.2.3
	the singular includes the plural and vice versa;

4
Final DSP - as approved by the JSE

		
	1.2.3
	The DSP will be given effect to in accordance with:

		
	1.2.3.1
	the Companies Act;

		
	1.2.3.2
	the Listings Requirements, including paragraphs 3.63 to 3.74 and 3.92 to the extent applicable; and [Sch 14.9(d)]

		
	1.2.4
	unless the context clearly indicates a contrary intention, words and expressions defined in the Companies Act shall bear the meanings therein assigned to them;

		
	1.2.5
	all references to a statute and the Listings Requirements shall be to such statute and the Listings Requirements (as the case may be) as at the date of adoption of the DSP by the Company and as amended, replaced or superseded from time to time thereafter. References to “Sch” in the Rules are to Schedule 14 of the Listings Requirements;

		
	1.2.6
	the use of the word "including" or "includes" or "include" followed by a specific example shall not be construed as limiting the meaning of the general wording preceding it and the eiusdem generis rule shall not be applied in the interpretation of such general wording or such specific example/s;

		
	1.2.7
	the word "reacquired" when used in relation to an Award (or a portion of an Award) shall mean the acquisition and/or cancellation of such Award (or a portion of an Award) from a Participant by or on behalf of the Company for, where applicable, a total consideration at no par value where the such Award (or a portion of an Award) has been forfeited (in terms of clause 16) or lapsed (in accordance with clause 17) prior to Vesting;

		
	1.2.8
	a Participant who ceases to be employed by an Employer Company on the basis that he is ‐ 

		
	1.2.8.1
	immediately thereafter employed by another Employer Company; or

		
	1.2.8.2
	thereafter re‐employed by such Employer Company pursuant to it being determined that his employment was terminated on a basis which was not lawful in terms of the LRA; shall be deemed not to have terminated his employment for the purposes of the DSP and his rights shall be deemed to be unaffected; [Sch 14.1(h)]

		
	1.2.9
	a Participant who is a director of any Employer Company who retires and/or resigns on the basis that he is immediately re‐elected in accordance with the articles of association or other constitutional documents of that Employer Company shall be deemed not to have terminated his employment with that Employer Company. [Sch 14.1(h)]

		
	1.3
	If any provision in a definition is a substantive provision conferring any right or imposing any obligation on anyone then, notwithstanding that it is only in a definition, effect shall be given to it as if it were a substantive provision in the body of these Rules.

		
	1.4
	When any number of days is prescribed in these Rules, same shall be reckoned exclusively of the first and inclusively of the last day unless the last day falls on a Saturday, Sunday or official public holiday, in which case the last day shall be the next succeeding day which is not a Saturday, Sunday or official public holiday.

		
	2.
	OBJECT

		
	2.1
	The DSP forms part of the Group’s Total Incentive Plan. 

		
	2.2
	These Rules regulate the Share-Settled portion of the long-term component of the Total Incentive Plan. The short-term component of the Total Incentive Plan will take the form of a cash bonus. 

		
	2.3
	These Rules should be read in conjunction with the Policy (which sets out the details of both the short-term and the long-term incentives), in order to gain a full understanding of the operation of the Total Incentive Plan. 

		
	2.4
	The object and purpose of the DSP is to:

5
Final DSP - as approved by the JSE

		
	2.4.1
	incentivise the Group’s Eligible Employees to meet strategic short-, medium- and long term objectives that will help deliver value to shareholders;

		
	2.4.2
	achieve alignment between the Participants’ remuneration and the interests of the Company’s shareholders; and

		
	2.4.3
	act as a retention mechanism in a market where highly skilled people are in high demand. 

6
Final DSP - as approved by the JSE

PART 2 – ADMINISTRATION OF THE DSP 
		
	3.
	THE DSP

The DSP is hereby constituted, which DSP shall be administered for the purpose and in the manner set out in these Rules.
		
	4.
	ADMINISTRATION OF THE DSP

		
	4.1
	Remco is responsible for the operation and administration of the DSP, and has discretion to decide whether and on what basis the DSP shall be operated. 

		
	4.2
	Where the DSP refers to the discretion of Remco, such discretion shall be sole, absolute and unrestricted unless the contrary is expressed, provided that if Remco delegates the authority to exercise discretion, the discretion should be exercised in terms of the Policy.

		
	4.3
	Subject to the provisions of the DSP and to the approval of the Board, Remco shall be entitled to make and establish such rules and regulations, and to amend the same from time to time, as they may deem necessary or expedient for the proper implementation and administration of the DSP.

		
	5.
	ADMINISTRATOR

An Employer Company may appoint an Administrator to act on its behalf in performing its obligations as an Employer Company under the DSP. For purposes of the DSP, references to “Employer Company” include an Administrator that has been appointed by an Employer Company in terms of this clause 5.
		
	6.
	ANNUAL ACCOUNTS  

Remco shall ensure that a summary appears in the annual financial statements of the Company of the number of Deferred Shares awarded to Participants, the number of Shares that may be utilised for the purposes of this DSP, any changes in such numbers during the Financial Year under review, the number of Shares held by any Employer Company which may be received by Eligible Employees and the number of Shares then under the control of Remco for Settlement to Participants in terms of this DSP. [Sch 14.8]
		
	7.
	AVAILABILITY OF SHARES

The Company shall:
		
	7.1
	ensure that Shares may only be issued or purchased for purposes of the DSP once a Participant (or group of Participants) to whom they will be awarded has been formally identified; [Sch 14.9(a)]

		
	7.2
	ensure that any Shares held for purposes of the DSP will not have their votes at general/annual general meetings taken into account for the purposes of resolutions proposed in terms of the Listings Requirements or for purposes of determining categorisations as detailed in Section 9 of the Listings Requirements. [Sch 14.10]

		
	8.
	COSTS

		
	8.1
	Prior to the Vesting Date, all costs and expenses relating to the DSP, including for the avoidance of doubt, all costs relating to the Administrator, (“Costs”) will be for the Company’s account. 

		
	8.2
	The Company may recover from each Employer Company such Costs as may be attributable to the participation of any of its Employees in the DSP.

		
	8.3
	Notwithstanding the provisions of clauses 8.1 and 8.2, the Company may procure, if applicable, that the relevant Employer Company shall ‐

7
Final DSP - as approved by the JSE

		
	8.3.1
	bear all Costs of and incidental to the implementation and administration of the DSP and shall, as and when necessary, provide all requisite funds and facilities for that purpose;

		
	8.3.2
	provide all secretarial, accounting, administrative, legal and financial advice and services, office accommodation, stationery and so forth for the purposes of the DSP.

		
	8.4
	After the Vesting Date, all Costs and Tax will be for the Participant’s account. 

		
	8.5
	The Participant shall be liable for all Tax payable as a result of benefits due to him in terms of the DSP.

		
	9.
	MAXIMUM NUMBER OF SHARES AVAILABLE FOR THE DSP

		
	9.1
	Subject to 9.3, the aggregate number of Shares that may be Settled under this DSP shall not exceed 25 000 000 Shares (being approximately 5% of the issued share capital of the Company). [Sch 14.1(b)]

		
	9.2
	Subject to 9.3 the maximum number of Shares which any one Participant may receive in terms of the DSP shall not exceed 3 000 000 (being approximately 0.6% of the issued share capital of the Company) Shares. [Sch 14.1(c)]

		
	9.3
	The limit referred to in 9.1 shall exclude: 

		
	9.3.1
	Shares that have been purchased through the JSE in Settlement of Awards; and [Sch 14.9(c)] 

		
	9.3.2
	Awards under the DSP which do not Vest in a Participant as a result of the forfeiture or reacquisition thereof. [Sch 14.3(f)]

		
	9.4
	The limit referred to in 9.1 shall include: 

		
	9.4.1
	Shares that have been issued by the Company in Settlement of Awards; and 

		
	9.4.2
	Shares held in treasury by a subsidiary of the Company that have been used to Settle Awards. 

		
	9.5
	The number of Shares referred to in 9.1 and 9.2 shall be increased or reduced in direct proportion to any adjustment in the Company's issued share capital as provided for in clause 20. [Sch 14.3(a)]

		
	9.6
	In the event of a discrepancy between number of Shares and the percentage it represents, the number will prevail.

		
	10.
	AWARD POLICY AND PERFORMANCE CONDITIONS

		
	10.1
	Remco shall be entitled, subject to the provisions of the DSP and to the approval of the Board, to make and establish a Policy as it deems expedient or necessary for the proper implementation of the DSP.

		
	10.2
	Remco may, from time to time, amend the Policy, provided that the amendments take due account of prevailing market trends and what is regarded as “remuneration best practice” at the time of such amendments.

		
	10.3
	Subject to clauses 16 and 20, once an Award has been made, the Policy which pertains to that specific Award may not be amended or varied unless a change in circumstances has rendered such Policy inappropriate or inapplicable. No such amendment shall disadvantage and/or prejudice any Participant.

PART 3 –DEFERRED SHARE AWARDS
		
	11.
	ANNUAL REMCO DETERMINATION

		
	11.1
	Each year, Remco shall determine and (as contemplated in clause 10), if deemed appropriate, amend the Policy to record the following: 

		
	11.1.1
	which Eligible Employees shall receive an Award;

		
	11.1.2
	the Award Date;

		
	11.1.3
	the Award Value (calculated in accordance with the Policy);

		
	11.1.4
	the number of Deferred  Shares applicable to the Award (calculated in terms of clause 13); and

8
Final DSP - as approved by the JSE

		
	11.1.5
	the Vesting Dates and Vesting Periods applicable to the Award

		
	11.2
	An Award made to an Eligible Employee will vest in equal tranches on more than one Vesting Date and over more than one Vesting Period. 

		
	11.3
	Remco shall set out in the Policy the criteria on which Awards are based in terms of the DSP. The criteria shall be aligned with the strategic objectives of the Company and the DSP (as set out in clause 2 above). 

		
	12.
	AWARDS 

		
	12.1
	Remco may, in its sole and absolute discretion, resolve to make Awards to Eligible Employees. [Sch 14.1(f)]

		
	12.2
	The Employer Company shall, as soon as reasonably practicable on or after the Award Date, notify the Eligible Employee of the Award in an Award Letter.  The Award Letter shall be in the form as prescribed by Remco from time to time and shall specify ‐

		
	12.2.1
	the Award Date;

		
	12.2.2
	the Award Value (calculated in accordance with the Policy);

		
	12.2.3
	the number of Deferred Shares applicable to the Award (calculated in terms of clause 13);

		
	12.2.4
	the Vesting Dates and Vesting Periods applicable to the Award; 

		
	12.2.5
	the provisions of clauses 21 and 22;

		
	12.2.6
	a stipulation that the Award is subject to the provisions of these Rules; and 

		
	12.2.7
	where a copy of the Rules might be obtained for perusal. 

		
	12.3
	Subject to clause 16, an Award is (and Deferred Shares are) personal to a Participant and shall not be capable of being ceded, assigned, transferred or otherwise disposed of or encumbered by a Participant. [Sch 14.1(e)]

		
	12.4
	There shall be no consideration payable for the Award. [Sch 14.1(d)]

		
	12.5
	A Participant shall not be entitled to any dividends (or other distributions made) and shall have no right to vote in respect of Deferred Shares awarded to him in his Award, unless and until the Deferred Shares under his Award are Settled to him in accordance with the provisions of this DSP. [Sch 14.1(e)] [Sch 14.10] 

		
	12.6
	A Prescribed Officer or an Executive Manager (as the case may be) must communicate his acceptance of an Award to his Employer Company. The obligations of an Employer Company under the DSP shall be postponed until such time as the Prescribed Officer or Executive Manager (as the case may be) has indicated his acceptance of the Award. The Employer Company will not be liable for any loss that may be suffered by such Prescribed Officer or Executive Manager (as the case may be) as a result of the postponement of its obligations in terms of this clause 12.6.

		
	12.7
	A Manager shall not be required to communicate his acceptance of an Award to his Employer Company. A Manager may reject an Award within ten days after the date of delivery of the relevant Award Letter to such Manager. An Award which is not rejected in accordance with this clause 12.6 shall automatically be deemed to have been accepted by such Manager. 

		
	12.8
	An Award may be reacquired at any time after the Award Date if the Remco and Participants so agree in writing. 

		
	13.
	CALCULATION OF DEFERRED SHARES 

		
	13.1
	Subject to clause 14, the number of Deferred Shares attributable to an Award shall be calculated by dividing the Award Value by the Award Price and rounding-down the resultant number to the next whole number.

		
	13.2
	The number of Deferred Shares determine the number of Shares that a Participant has a conditional right to receive on the terms of, and subject to the conditions of, the DSP. 

9
Final DSP - as approved by the JSE

		
	13.3
	For the avoidance of doubt, the Award of the Deferred Shares does not constitute the issue of Shares nor does it give a Participant the right to Shares until and to the extent that the provisions of the DSP have been satisfied. Accordingly, the Deferred Shares are awarded on the understanding that the Deferred Shares may not be traded or used as security for any obligations and any attempt to trade in Deferred Shares or use them as security for any obligations shall result in the forfeiture of the relevant Deferred Shares. [Sch 14.1(e)]

		
	14.
	VESTING OF DEFERRED SHARES AND SETTLEMENT

		
	14.1
	Subject to clauses 16, 17, 20, 22, and 24, on the Vesting Date, a Participant shall have the right to Settlement of the number of Shares that equals the number of Deferred Shares calculated in terms of clause 13. 

		
	14.2
	The Participant must provide his Employer Company with a Notice ten days before the Vesting Date, confirming that he wants his Award to be Settled in Shares and providing his Employer Company with the details of his brokerage account (“Brokerage Account”) in the Notice.  

		
	14.3
	If the Participant:

		
	14.3.1
	fails to provide his Employer Company with a Notice in accordance with clause 14.2; or 

		
	14.3.2
	fails to provide his Employer Company with the details of his Brokerage Account in his  Notice in accordance with clause 14.2, on the Vesting Date, the Company shall instruct the Broker to sell the Participant’s Shares on the JSE and procure the payment by the relevant Employer Company to the Participant of a cash amount equal to the proceeds from the sale of the Shares (less any applicable Tax payable in accordance with clause 22). For the avoidance of doubt, the Shares sold for purposes of this clause 14.3, shall be sold as part of bulk sale and in calculating the amount of proceeds to be distributed to each Participant the Broker shall apply an average amount attributable to each Share sold in the bulk sale, determined in accordance with the following formula:

Y = (E - F) / G     
Where:
		
	“Y” 
	represents the average amount of proceeds per Share sold as part of the bulk sale;

		
	“E”
	represents the total proceeds from the bulk sale of the Shares; 

		
	“F”
	represents the total amount of costs and securities transfer taxes that are attributable to the bulk sale; and

		
	“G”
	represents the total Shares sold in the bulk sale.

		
	14.4
	For the avoidance of doubt, a Participant may not elect to receive a cash amount in lieu of Shares. A Participant will receive a cash payment (in accordance with clause 14.3) only if he fails to comply with the provisions of clause 14.2. 

		
	14.5
	Notwithstanding 14.1, the Participant shall pay, in such manner as Remco may from time to time prescribe, any such additional amount of which Remco may notify the Participant in respect of any deduction on account of Tax as may be required by Applicable Laws which may arise on the Settlement of Shares to him. 

		
	15.
	ACQUISITION OF SHARES

		
	15.1
	Subject to clause 22, if the Participant elects to be Settled in Shares (and complies with the provisions of clause 14.2), the Company shall instruct the Broker to procure that the number of Shares contemplated in 14.1 are transferred to the Participant’s Brokerage Account as soon as reasonably possible after the Vesting Date. 

		
	15.2
	The Shares will be fully paid up and will rank pari passu with the existing issued Shares, and will have the same voting rights as the existing issued Shares. If the Shares are not yet allotted and issued, the Board will procure that they are allotted, issued and listed on the JSE upon issue. [Sch 14.1(e)]

10
Final DSP - as approved by the JSE

		
	15.3
	The Participant shall have full ownership rights in the Shares delivered to his Brokerage Account. 

		
	15.4
	The Participant shall be personally responsible for maintaining his Brokerage Account and paying all relevant fees associated therewith.

		
	16.
	CLAWBACK, REDUCTION OR FORFEITURE OF AWARD

Clawback in terms of SOX
		
	16.1
	Any Awards made to the Chief Executive Officer and Financial Director may be subject to reduction or forfeiture (in whole or in part) in accordance with section 304 of the Sarbanes Oxley Act, 2002 (“SOX”). 

		
	16.2
	It is foreseeable that there may be a change in law (either in accordance with the Proposed Rule pertaining to “Listing Standards for Recovery of Erroneously Awarded Compensation” outlined in Federal Register, Vol 80, No. 134 dated 14 July 2015, or otherwise) that may extend the application of section 304 of SOX to all Prescribed Officers. If this takes place, any Awards made to Prescribed Officers may also be subject to reduction or forfeiture (in whole or in part) in accordance with section 304 of SOX. 

Reduction or Forfeiture 
		
	16.3
	Remco may exercise its discretion to determine that a Prescribed Officer’s or Executive Manager’s Award is subject to reduction or forfeiture (in whole or in part) if: 

		
	16.3.1
	there is reasonable evidence of misbehaviour or material error by a Prescribed Officer or Executive Manager (as the case may be); or

		
	16.3.2
	the financial performance of the Group, the Company, the Employer Company or the relevant business unit for any Financial Year in respect of which an Award is based have subsequently appeared to be materially inaccurate; or

		
	16.3.3
	the Group, the Company, the Employer Company or the relevant business unit suffers a material downturn in its financial performance, for which the Prescribed Officer or Executive Manager (as the case may be) can be seen to have some liability; or

		
	16.3.4
	the Group, the Company, the Employer Company or the relevant business unit suffers a material failure of risk management, for which the Prescribed Officer or Executive Manager (as the case may be) can be seen to have some liability, or in any other circumstances if the Remco determines that it is reasonable to subject the Awards of one or more Prescribed Officers or Executive Managers (as the case may be) to reduction or forfeiture.

		
	16.4
	To the extent that this clause 16 applies to a Prescribed Officer or Executive Manager (as the case may be), the Remco shall determine if the Prescribed Officer’s or Executive Manager’s (as the case may be) Award shall be forfeited in whole or in part and, if Remco does so determine that all or a portion of the Prescribed Officer’s or Executive Manager’s (as the case may be) Award shall be forfeited, that Award shall be forfeited with effect from the date of the determination. 

		
	16.5
	Remco may postpone the Vesting Date in respect of any Prescribed Officer or Executive Manager (as the case may be) if, at the Vesting Date, there is an ongoing investigation or other procedure being carried on to determine whether the forfeiture provisions apply in respect of a Prescribed Officer or Executive Manager (as the case may be), or the Remco decides that further investigation is warranted. In such event, the Vesting Date shall be deemed to be the date upon which the investigation or procedure has been completed and the Remco has determined that the Prescribed Officer’s or Executive Manager’s (as the case may be) Award shall not be forfeited. 

		
	17.
	TERMINATION OF EMPLOYMENT [SCH 14.1(H)]

		
	17.1
	Subject to clause 1.2.8, if a Participant ceases to be employed by the Group by reason of a No Fault Termination prior to the Vesting Date, a pro rata portion of the current tranche of the Deferred Shares shall Vest on the 

11
Final DSP - as approved by the JSE

Date of Termination of Employment and shall be Settled in accordance with clause 14, unless Remco determines otherwise. The pro rata portion of the current tranche of Deferred Shares that Vest, will be calculated as a percentage of the number of months served in the twelve-month Vesting Period in which the Date of Termination of Employment takes place. The balance of the Deferred Shares will lapse and shall be deemed to have been reacquired. 
An example of the calculation referred to in clause 17.1 is as follows:
An Award is made on 1 September 2019 of 150 000 Deferred Shares, which will Vest in equal tranches over the following three years
First Vesting Date: 1 September 2020 (50 000 Shares)
Second Vesting Date: 1 September 2021 (50 000 Shares)
Third Vesting Date: 1 September 2022 (50 000 Shares)
The Participant receives 50 000 Shares on 1 September 2020 
The Participant ceases to be employed by the Group by reason of a No Fault Termination on 30 January 2021
The Participant will (in addition to the Shares received on 1 September 2020) be entitled to the pro-rata portion of his second tranche as follows:
(4/12 months) x 50 000 Shares = 16 666 Shares
The balance of his Award is forfeited
		
	17.2
	Subject to clause1.2.8, if a Participant ceases to be employed by the Group by reason of a Fault Termination, his Award shall be deemed to have been reacquired, unless Remco determines otherwise. 

12
Final DSP - as approved by the JSE

PART 4 – GENERAL
		
	18.
	INSOLVENCY

		
	18.1
	All unvested Awards shall be deemed to have been reacquired, and accordingly not entitle a Participant to Settlement, upon the Participant making an application for the voluntary surrender of his estate or his estate being otherwise sequestrated or any attachment of any interest of a Participant (including, inter alia, as a result of divorce proceedings) under the DSP, unless Remco, in its discretion, determines otherwise and then subject to such terms and conditions as Remco may determine.

		
	18.2
	If the Company is placed in final liquidation, the Secretary shall notify the Participant thereof in writing and all Awards that have not been Settled at the date of notification shall be forfeited. [Sch 14.1(e)]

		
	19.
	POOR PERFORMANCE AND DISCIPLINARY PROCEDURES  

In the event of pending disciplinary or poor performance procedures against any Participant, or the contemplation of such procedures, then the Vesting and/or Settlement of any Award shall be suspended until the final conclusion of such procedures, at which time the Award shall Vest and/or be Settled, or the provisions of clause 16 shall be applied, whichever is applicable. [Sch 14.1(h)]
		
	20.
	ADJUSTMENTS

		
	20.1
	Notwithstanding anything to the contrary contained herein but subject to 20.5, if the Company makes a Special Distribution and/or if the Company restructures its capital in that it ‐ [Sch 14.3]

		
	20.1.1
	undertakes a rights offer; or

		
	20.1.2
	is placed in liquidation for purposes of reorganisation; or

		
	20.1.3
	is party to a scheme of arrangement affecting the structuring of its share capital; or

		
	20.1.4
	undertakes a conversion, redemption, subdivision or consolidation of its ordinary share capital; or

		
	20.1.5
	undertakes a bonus or capitalisation issue,

such adjustments shall be made to the rights of Participants as may be determined to be fair and reasonable to the Participants concerned by Remco; provided that any adjustments pursuant to this 20.1 shall be confirmed by the Auditors and should give a Participant the entitlement to the same proportion of the equity capital as he was previously entitled, and should any Participant be aggrieved, he may utilise the dispute procedures set out in clause 26.  No adjustments shall be required in terms of this clause 20.1 if the provisions of clauses 20.5 to 20.7 are applicable, or in the event of an issue by the Company of any securities or securities convertible into Shares as consideration for an acquisition.
		
	20.2
	The Auditors will confirm to the JSE, in writing, that any adjustments made in terms of clause 20.1 are in accordance with the provisions of the DSP. Such written confirmation will be provided to the JSE at the time that the adjustments are finalised. [Sch 14.3(d)]

		
	20.3
	Any adjustments made in terms of clause 20.1 will be reported in the Company’s annual financial statements in the year during which the adjustment is made. [Sch 14.3 (e)] 

		
	20.4
	For the purposes of 20.1, the Company shall be deemed to make a "Special Distribution" if it distributes Shares or any other asset (including cash) to its shareholders -

		
	20.4.1
	in the course of, and as part of any unbundling, reorganisation, rationalisation, compromise, arrangement or reconstruction (including the amalgamation of two or more companies or entities);

		
	20.4.2
	in the course of, or as part of, a reduction of capital (including a share repurchase);

		
	20.4.3
	as a special dividend or other payment in terms of the Companies Act; or

13

		
	20.4.4
	in the course or in anticipation of the deregistration or liquidation of a company for any of the above purposes;

provided that this clause 20.2 shall not apply to the normal annual interim and final cash or scrip dividends declared by a Company.
		
	20.5
	No adjustments shall be required in terms of clause 20.1 in the event of the issue of equity securities as consideration for an acquisition in terms of clause 20.6, the issue of securities for cash and the issue of equity securities for a vendor consideration placing. [Sch 14.3(c)]

		
	20.6
	Subject to clause 20.7, if the Company undergoes a Change of Control after an Award Date, then the rights of Participants under the DSP are to be accommodated on a basis which shall be determined by Remco to be fair and reasonable to Participants. [Sch 14.1(g)]

		
	20.7
	If  the Company undergoes a Change of Control pursuant to a transaction, the terms of which make provision for Participants' rights under the DSP are to be accommodated on a basis which is determined by an independent merchant bank to be fair and reasonable to Participants, the provisions of clause 20.5 shall not apply; provided that, in such an event, if a Participant's employment by any member of the Group is terminated for any reason whatsoever (including his resignation but excluding the manner contemplated in clause 1.2.8) within 12 months following the Implementation Date he shall be entitled to be Settled on mutatis mutandis the basis of clause 20.5 had clause 20.5 been applicable.  [Sch 14.1(g)]

		
	21.
	REACQUISITION  

If, in terms of any provision of the DSP, any Award or portion of an Award is deemed to have been reacquired, the Company is hereby irrevocably and in rem suam nominated, constituted and appointed as the sole attorney and agent of the Participant concerned in that Participant's name, place and stead to sign and execute all such documents and do all such things as are necessary for that purpose. [Sch 14.3(f)]
		
	22.
	TAX LIABILITY

		
	22.1
	Notwithstanding any other provision in these Rules (including clause 14.4), if the Company or an Employer Company is obliged (or would suffer a disadvantage of any nature if they were not) to account for, withhold or deduct any Tax in any jurisdiction which is payable in respect of, or in connection with, the making of any Award, the Settlement to a Participant of Shares, the payment of a cash amount and/or otherwise in connection with the DSP, then the Company or the Employer Company (as the case may be) shall be entitled to account for, withhold or deduct such Tax from any amount due to the Participant and the Company and/or the Employer Company shall be relieved from the obligation to Settle any Shares to a Participant or to pay any amount to a Participant in terms of the DSP until the Tax has been discharged in full. 

		
	22.2
	The Participant agrees that the Company may instruct the Broker to sell some or all of the Shares to be Settled to the Participant and to remit payment to the relevant person of the relevant amounts out of the proceeds of the sale in discharge of the Tax.

		
	22.3
	Only Prescribed Officers may elect to make payment to the relevant Employer Company of an amount equal to the Tax, in which event Shares will not be sold by the Company to settle the Participant’s Tax obligations.

		
	22.4
	The Company is hereby irrevocably and in rem suam nominated, constituted and appointed as the sole attorney and agent of a Participant, in that Participant's name, place and stead to sign and execute all such documents and do all such things as are necessary to give effect to the provisions of clause 22.2.  

		
	23.
	LISTINGS AND LEGAL REQUIREMENTS

		
	23.1
	Notwithstanding any other provision of the DSP -

		
	23.1.1
	no Shares shall be Settled on any Participant or received pursuant to this DSP if Remco determines, in their sole discretion, that such Settlement will or may violate any Applicable Laws, the Listings 

14

Requirements or the listings requirements of any other securities exchange on which the Shares of the Company are listed; and
		
	23.1.2
	the Company shall apply for the listing of all Shares which are Settled to Participants on the JSE.

		
	23.2
	Despite the occurrence of a Vesting Date, all Participants shall be subject to the Group’s policies and procedures relating to trading in the Company’s securities, the Financial Markets Act and the Listings Requirements and no Participant shall undertake any action in respect of that Participant’s Shares that will cause the Company to breach its obligations in terms of the Financial Markets Act or the Listings Requirements. 

		
	23.3
	The Company will ensure that no Shares are Settled for the DSP at a time when such acquisition is prohibited by the provisions of the Financial Markets Act or the Listings Requirements. To the extent that the Company is unable to deliver the Shares to a Participant as a result of the provisions of the Financial Markets Act or the Listings Requirements, the Company will deliver the Shares to the Participant as soon as possible after the restriction is lifted; provided that the Company will not be liable for any loss that may be suffered by the Participant as a result of the postponement of delivery in terms of this clause 23. [Sch 14.9(e)] [Sch 14.9(f)]

		
	23.4
	Whilst the companies in the Group will make every effort to Settle Shares within a reasonable period of time for purposes of satisfying their obligations under the DSP, they do not guarantee that they will be able to do so within set time periods. As such, the Group will not be liable for any loss that may be suffered by the Participant as a result of any fluctuations in the Share price, or for any other reason. 

		
	24.
	AMENDMENT OF THE DSP  

		
	24.1
	It shall be competent for Remco to amend any of the provisions of the DSP subject to the prior approval (if required) of every stock exchange on which the Shares are for the time being listed; provided that no such amendment affecting the Vested rights of any Participant shall be effected without the prior written consent of the Participant concerned, and provided further that no such amendment affecting any of the following matters shall be competent unless it is sanctioned by ordinary resolution of 75% (seventy-five percent) of the shareholders of the Company in a general meeting, excluding all of the votes attached to Shares owned or controlled by existing Participants in the DSP ‐ [Sch 14.2]

		
	24.1.1
	the definition of Eligible Employees and Participants;

		
	24.1.2
	the definition of Award Price;

		
	24.1.3
	the calculation of the total number of Shares which may be received for the purpose of or pursuant to the DSP;

		
	24.1.4
	the calculation of the maximum number of Shares which may be received by any Participant in terms of the DSP;

		
	24.1.5
	the amount payable by a Participant under the DSP (if any); [Sch 14.1(d)]

		
	24.1.6
	the voting, dividend, transfer or other rights (including rights on liquidation of the Company) which may attach to any or Award; [Sch 14.10] [Sch 14.1(e)]

		
	24.1.7
	the provisions in these Rules dealing with the rights (whether conditional or otherwise) in and to the Deferred Shares of Participants who leave the employment of the Group prior to Vesting;  

		
	24.1.8
	the basis for Awards in terms of these Rules; 

		
	24.1.9
	the treatment of Awards in instances of mergers, takeovers or corporate actions; 

		
	24.1.10
	the termination rights of Participants; and [Sch 14.1(h)]

		
	24.1.11
	the provisions of this clause 24.

15

		
	24.2
	Subject to approval from the JSE, clause 24.1 will not apply to any amendment which is:

		
	24.2.1
	minor and to benefit the administration of the DSP;

		
	24.2.2
	to take account of any changes in legislation; or

		
	24.2.3
	to obtain or maintain favourable Tax, exchange control or regulatory treatment for the Company, any Employer Company or any present or future Participant.

		
	24.3
	Without derogating from the provisions of clause 24.1, if it should become necessary or desirable by reason of the provisions of Applicable Laws at any time after the signing of these Rules, to amend the provisions of these Rules so as to preserve the substance of the provisions contained in these Rules but to amend the form so as to achieve the objectives embodied in these Rules in the best manner, having regard to such Applicable Laws and without prejudice to the Participants concerned, then Remco may (with the prior approval (if required) of every stock exchange on which the Shares are at the time listed) amend these Rules accordingly.

		
	25.
	STRATE

Notwithstanding any provision in these Rules, the Company shall not be obliged to deliver to the Participant share certificates in respect of the Shares settled to him in terms of these Rules but shall instead be obliged to procure such electronic transactions and/or entries and to deliver to the Participant such documents (if any) as may be required to reflect his rights in and to such Shares pursuant to the provisions of the Companies Act, the Financial Markets Act, the Rules of the Central Securities Depository (being Share Transactions Totally Electronic Limited) and the requirements of the JSE.  
		
	26.
	DISPUTES

		
	26.1
	Should any dispute of whatever nature arise from or in connection with these Rules (including an urgent dispute), then the dispute shall, unless the parties thereto otherwise agree in writing, be referred to the Group Chief Executive. 

		
	26.2
	In the event that the Group Chief Executive is unable to resolve the dispute, it shall be referred to the Chairman of Remco who, together with the Remco, shall decide thereon, and that decision shall be final and binding on all parties to the dispute. 

		
	26.3
	However, if the dispute relates, directly or indirectly, to the Group Chief Executive, the dispute shall be referred to the Chairman of Remco directly, who, together with the Remco, shall decide thereon and that decision shall be final and binding on all parties to the dispute. 

		
	26.4
	This clause is severable from the rest of these Rules and shall remain in effect even if these Rules are terminated for any reason.

		
	27.
	DATA PROTECTION

		
	27.1
	By participating in the DSP, a Participant is deemed to agree and consent to:

		
	27.1.1
	the collection, use and processing by the Employer Company of Personal Information relating to the Participant, for all purposes reasonably connected with the administration of the DSP;

		
	27.1.2
	the Employer Company, Company, and any member of the Group transferring Personal Information to or between any of such persons for all purposes reasonably connected with the administration of the DSP and the use of such Personal Information by such persons for all purposes reasonably connected with the administration of the DSP;

		
	27.1.3
	the transfer to and retention of such Personal Information by any third party anywhere in the world for all purposes reasonably connected with the administration of the DSP.

16

		
	28.
	PROFITS AND LOSSES AND TERMINATION OF THE DSP

		
	28.1
	The Company shall bear any losses sustained by the DSP which are not recovered from Employer Companies in terms of clause 8.  Furthermore, the Company shall be entitled to receive and be paid any profits made in respect of the purchase, acquisition, sale or disposal of Shares.

		
	28.2
	The DSP shall terminate if Remco so resolves.  Any deficit arising from the winding up of the DSP shall be borne by the Company, to the extent not recovered by the Company from Employer Companies.

		
	29.
	DOMICILIUM AND NOTICES

		
	29.1
	The parties choose domicilium citandi et executandi for all purposes arising from the DSP, including the giving of any notice, the payment of any sum, the serving of any process, as follows ‐

		
	29.1.1
	the Company: 

	
		
	Physical address:
	Harmony Randfontein Office Park, 
Cnr Main Reef Road and Ward Avenue, 
Randfontein, 
1759

	Postal address:
	PO Box 2, 
Randfontein, 
1760

	E-mail:
	companysecretariat@harmony.co.za

	For attention:
	The Secretary

		
	29.1.2
	each Participant: 

The chosen address and/or email address of each Participant shall be the address and/or email address of that Participant reflected in the records of the Group’s payroll system from time to time.
		
	29.2
	Each of the parties shall be entitled from time to time, by written notice to the other, to vary its domicilium to any other physical address and/or (in the case of a Participant) his email address; provided in the case of a Participant such variation is also made to his details on the Group's payroll system.

		
	29.3
	Any notice given and any payment made by any party to the other which ‐

		
	29.3.1
	is delivered by hand during the normal business hours of the addressee (for attention: the Secretary in the case of the Company) at the addressee's domicilium for the time being shall be rebuttably presumed to have been received by the addressee at the time of delivery;

		
	29.3.2
	is posted by prepaid registered post from an address within the Republic of South Africa to the addressee (for attention: the Secretary in the case of the Company) at the addressee's domicilium for the time being shall be rebuttably presumed to have been received by the addressee on the seventh day after the date of posting.

		
	29.4
	Any notice given by any party to any other party which is transmitted by electronic mail to the addressee at the addressee's electronic address for the time being shall be presumed, until the contrary is proved by the addressee, to have been received by the addressee on the date of successful transmission thereof.

		
	30.
	COMPLIANCE  

		
	30.1
	The Company shall comply with (and procure compliance by all members of the Group with) all Applicable Laws. The DSP shall at all times be operated and administered subject to all Applicable Laws. [Sch 14 Generally]

		
	30.2
	Without derogating from the generality of the aforegoing, the Company shall ensure compliance with Schedule 14 and paragraphs 3.63 to 3.74 of the Listings Requirements of the JSE. [Sch 14.9(d)] 

17

		
	30.3
	The Company, by its signature hereto, undertakes to procure compliance by every Employer Company with these Rules.

		
	31.
	GENERAL PROVISIONS

		
	31.1
	To the extent that shareholder approval is required to authorise any performance by the Group as contemplated in the DSP, such performance shall only take place once the requisite shareholder approval has been obtained. To the extent that the requisite shareholder approval is not obtained, Remco shall exercise its discretion in determining the appropriate response. In certain circumstances, Remco may be obliged to inform the Participants that their rights under the DSP have been postponed or forfeited. The Company will not be liable for any loss that may be suffered by the Participant as a result of such postponement or forfeiture. 

		
	31.2
	The receipt of an Award in any year by a Participant does not create any rights and/or expectations that the same Participant shall be entitled to any further Awards in any subsequent years. An Employee’s eligibility to receive Awards shall be determined annually by Remco. 

		
	31.3
	The DSP and participation in it shall not form part of any contract of employment between any Employer Company and any Employee and the rights and obligations of any individual under the terms of his office or employment with the Employer Company shall not be affected by his participation in the DSP. This DSP shall not entitle a Participant any right to continued employment nor shall it afford an individual additional rights to compensation or damages for any loss or potential loss which he may suffer (by reason of being unable to receive Shares or otherwise) in consequence of the termination of any office or employment within the Group for any reason whatsoever, regardless of whether such termination of employment was lawful, unlawful, fair or unfair.

		
	31.4
	The DSP shall not confer on any person any legal or equitable rights (including, for the avoidance of doubt, any voting rights or rights to receive dividends) against any Employer Company directly or indirectly, or give rise to any cause of action at law or in equity against any Employer Company.

		
	31.5
	The DSP shall be governed by and construed in accordance with the laws of the Republic of South Africa.

18

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