Document:

exv4w16

 

  

Exhibit 4.16

SENIOR FACILITY AGREEMENT

Amongst

NEDBANK LIMITED

(acting through its NEDBANK CAPITAL division)

and

HARMONY GOLD MINING COMPANY LIMITED

and

THE GUARANTORS LISTED IN SCHEDULE 2

 

 

Table of Contents

	 	 	 	 	 
	1. PARTIES
	 	 	1	 
	2. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	3. INTRODUCTION
	 	 	24	 
	4. CONDITIONS TO ADVANCE
	 	 	25	 
	5. FACILITY
	 	 	26	 
	6. PURPOSE
	 	 	26	 
	7. UTILISATION
	 	 	26	 
	8. INTEREST
	 	 	29	 
	9. REPAYMENT
	 	 	29	 
	10. PREPAYMENT
	 	 	30	 
	11. PAYMENTS
	 	 	32	 
	12. BREAKAGE COSTS AND BREAKAGE GAINS
	 	 	34	 
	13. ILLEGALITY
	 	 	34	 
	14. GUARANTEE AND INDEMNITY
	 	 	35	 
	15. WARRANTIES AND REPRESENTATIONS
	 	 	38	 
	16. FINANCIAL INFORMATION
	 	 	49	 
	17. POSITIVE UNDERTAKINGS
	 	 	55	 
	18. NEGATIVE UNDERTAKINGS
	 	 	58	 
	19. FINANCIAL COVENANT
	 	 	60	 
	20. EVENTS OF DEFAULT
	 	 	64	 
	21. TAXES
	 	 	71	 
	22. TAX RECEIPTS
	 	 	73	 
	23. INCREASED COSTS
	 	 	73	 
	24. CERTIFICATE OF INDEBTEDNESS
	 	 	75	 
	25. SET-OFF
	 	 	75	 
	26. CHANGE OF PARTY
	 	 	75	 
	27. INTEREST ON ARREAR AMOUNTS AND INDEMNITY
	 	 	80	 
	28. FACILITY AGENT
	 	 	81	 
	29. CONFIDENTIALITY
	 	 	85	 
	30. FEES AND EXPENSES
	 	 	88	 
	31. NOTICES AND DOMICILIA
	 	 	90	 
	32. GOVERNING LAW
	 	 	92	 
	33. JURISDICTION
	 	 	93	 
	34. SEVERABILITY
	 	 	93	 
	35. GENERAL
	 	 	93	 
	36. COUNTERPARTS
	 	 	94	 
	SCHEDULE 1: CONDITIONS
	 	 	103	 
	SCHEDULE 2: THE GUARANTORS
	 	 	107	 
	SCHEDULE 3: DISCLOSED ENCUMBRANCES
	 	 	108	 
	SCHEDULE 4: DISCLOSED INDEBTEDNESS
	 	 	109	 
	SCHEDULE 5: DISCLOSED LOANS
	 	 	111	 
	SCHEDULE 6: DISCLOSED POTENTIAL ENVIRONMENTAL CLAIM
	 	 	112	 
	SCHEDULE 7: TRANSACTION SECURITY
	 	 	113	 
	SCHEDULE 8: FORM OF COMPLIANCE CERTIFICATE
	 	 	114	 
	SCHEDULE 9: FORM OF LENDER’S ACCESSION UNDERTAKING
	 	 	116	 

 

 

	 	 	 	 	 
	SCHEDULE 10: AGREED FORM OF CESSION AND
DELEGATION AGREEMENT
	 	 	118	 
	SCHEDULE 11: FORM OF CONFIDENTIALITY UNDERTAKING
	 	 	131	 
	SCHEDULE 12: PRO FORMA MANAGEMENT ACCOUNT
	 	 	139	 
	SCHEDULE 13: LAST TAX RETURN YEAR
	 	 	141	 

 

 

TERM LOAN AGREEMENT

	1.	 	PARTIES

	1.1	 	The Parties to this Agreement are:

	1.1.1	 	NEDBANK LIMITED (acting through its NEDBANK CAPITAL division);
	 
	1.1.2	 	HARMONY GOLD MINING COMPANY LIMITED; and
	 
	1.1.3	 	THE GUARANTORS AS LISTED IN SCHEDULE 2.

	1.2	 	The Parties agree as set out below.

	2.	 	DEFINITIONS AND INTERPRETATION

	2.1	 	The headings to the clauses and schedules of this Agreement are inserted for reference
purposes only and shall in no way govern or affect the interpretation hereof nor modify nor
amplify the terms of this Agreement nor any clause or schedule hereof.
	 
	2.2	 	Unless inconsistent with the context, the expressions set forth below shall bear the
following meanings and cognate expressions shall bear corresponding meanings:

	2.2.1	 	“Accession Undertaking” means in relation to a New Lender an undertaking substantially in
the form set out in Schedule 9 (Form of Accession Undertakings);

	2.2.2	 	“Advance” means, save as otherwise provided herein, the advance made or to be made by the
Lenders hereunder in the amount of R2 000 000 000 (two billion Rand);

 

 

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	2.2.3	 	“Advance Condition Documents” means the documents listed in Part 1 of Schedule 1 (Advance
Condition Documents);

	2.2.4	 	“Advance Conditions” means the conditions to the making of the Advance listed in Part 2 of
Schedule 1 (Advance Conditions);

	2.2.5	 	“Advance Date” means the day upon which the Lenders make the Advance hereunder, being 28
September 2007 or such later date as may be agreed between the Parties in writing;

	2.2.6	 	“Agreement” means this Senior Facility Agreement read together with the Schedules hereto;

	2.2.7	 	“Applicable Margin” means 2.75% (two comma seven five percent) nacm;

	2.2.8	 	“ARMgold” means African Rainbow Minerals Gold Limited (Registration No. 1997/015869/06), a
public company duly incorporated in accordance with the company laws of South Africa;

	2.2.9	 	“Auditors” means the Borrower’s auditors from time to time provided that the Borrower’s
auditors shall only, save with the prior written consent of the Lenders, be any one or more of
Deloitte & Touche, KPMG Inc., Ernst & Young or PricewaterhouseCoopers Inc.;

	2.2.10	 	“Authorised Signatory” means a person or persons duly authorised to bind the Borrower in
terms of this Agreement and in respect of whom the Borrower shall have delivered to the
Lenders certified specimens of such person’s or persons’ signature(s) together with evidence
satisfactory to the Lenders that such person is duly authorised to bind the Borrower;

	2.2.11	 	“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration, as the case may be;

 

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	2.2.12	 	“Available Facility” means at any time and save as otherwise provided herein, R2 000 000 000
(two billion Rand);

	2.2.13	 	“Bank Costs” means the cost, expressed as a percentage (rounded to the second decimal place)
and on a nacm rate basis, to the Lenders in providing, maintaining or funding the Advance
under the Facility, pursuant to any Law in force within the Republic of South Africa, which
cost shall be determined by the Original Lender at the commencement of each Interest Period
and notified to the Borrower in writing and which costs shall not exceed the costs that the
Original Lender would incur if it remains the sole Lender;

	2.2.14	 	“Borrower” means Harmony Gold Mining Company Limited (Registration No. 1950/038232/06), a
public company duly incorporated in accordance with the company laws of South Africa;

	2.2.15	 	“Breakage Costs” means the amount (if any) by which:

	2.2.15.1	 	the interest (excluding the Applicable Margin) which a Lender should have received for the
period from the date of receipt of all or any part of its participation in the Advance or
Unpaid Sum to the last day of the current Interest Period in respect of the Advance or Unpaid
Sum, had the amount then due or Unpaid Sum received been paid on the last day of that Interest
Period;

	 	 	exceeds:

	2.2.15.2	 	the amount which that Lender would be able to obtain by placing an amount equal to the
amount then due or Unpaid Sum received by it on deposit with a leading bank in the
Johannesburg interbank market for a period starting on the Business Day following receipt or
recovery and ending on the last day of the current Interest Period;

 

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	2.2.16	 	“Breakage Gains” means the amount (if any) by which:

	2.2.16.1	 	the amount which that Lender would be able to obtain by placing an amount equal to the
amount then due or Unpaid Sum received by it on deposit with a leading bank in the
Johannesburg interbank market for a period starting on the Business Day following receipt or
recovery and ending on the last day of the current Interest Period;

	 	 	exceeds:

	2.2.16.2	 	the interest which a Lender should have received for the period from the date of receipt
of all or any part of its participation in the Advance or Unpaid Sum to the last day of the
current Interest Period in respect of the Advance or Unpaid Sum, had the amount then due or
Unpaid Sum received been paid on the last day of that Interest Period;

	2.2.17	 	“Business Day” means any day other than a Saturday, Sunday or an official public holiday in
South Africa (in accordance with the Public Holidays Act, 1994) on which banks are open for
business in South Africa;

	2.2.18	 	“Cash Consideration” shall have the meaning given to it in clause 10.3.2 (Mandatory
Prepayment: Disposal of South African Assets);

	2.2.19	 	“Cession and Delegation Agreement” means the written agreement so titled entered into
between a Lender and a New Lender substantially in the form set out in Schedule 10 (Agreed
Form of Cession and Delegation Agreement), or any other form agreed to between the Borrower
and the Facility Agent;

	2.2.20	 	“Companies Act” means the Companies Act, 1973;

 

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	2.2.21	 	“Compliance Certificate” means a certificate substantially in the form of the letter set out
in Schedule 8 (Form of Compliance Certificate);

	2.2.22	 	“Confidentiality Undertaking” means a confidentiality undertaking in the form set out in
Schedule 11 (Form of Confidentiality Undertaking) or any other form agreed between the
Borrower and the Facility Agent;

	2.2.23	 	“Constitutional Documents” means, in respect of any person at any time, the then current and
up-to-date constitutional documents of such person at such time (including, without
limitation, such person’s memorandum and articles of association, certificate of incorporation
and articles of incorporation);

	2.2.24	 	“Control” means in relation to a company the shares of which are not listed on a stock
exchange any one of the following, namely if another company or legal entity or person
(whether alone or pursuant to an agreement with others):

	2.2.24.1	 	holds or controls more than 50% (fifty percent) of the voting rights (taking into account
when such voting rights can be exercised) in that company; or
	 
	2.2.24.2	 	has the right to appoint or remove the majority of that company’s board of directors; or
	 
	2.2.24.3	 	has the power to ensure the majority of that company’s board of directors will act in
accordance with its wishes;

		 	or if the shares of the company are listed on a stock exchange, “Control” means:

	2.2.24.4	 	the holding of shares or the aggregate of holdings of shares or other securities in a
company entitling the holder thereof to exercise, or

 

Page 6

	 	 	cause to be exercised 35% (thirty-five percent) or more of the voting
rights at shareholder meetings of the company irrespective of whether such
holding or holdings confers de facto control, provided that should there
be other shareholders holding more than 35% (thirty-five percent), 35%
(thirty-five percent) shall be read to refer to “the largest percentage
shareholding held at the time”; or
	 
	2.2.24.5	 	the holding or control by a shareholder or member alone or pursuant to an agreement with
other shareholders or members of more than 35% (thirty-five percent) of the voting rights in
the company irrespective of whether such holding or holdings confers de facto control,
provided that should there be other shareholders holding more than 35% (thirty-five percent),
35% (thirty-five percent) shall be read to refer to “the largest percentage shareholding held
at the time”;

	2.2.25	 	“Default” means an Event of Default or any event or circumstances which would (with the
expiry of a grace period, the giving of notice, the making of any determination under the
Finance Documents or any combination of the foregoing) be an Event of Default;

	2.2.26	 	“Default Interest Rate” means the greater of the Prime Rate plus 2% (two percent), the Repo
Rate plus 2% (two percent), or the Interest Rate plus 2% (two percent);

	2.2.27	 	“Deposit Account” means the bank account specified in clause 7.1 (Utilisation);

	2.2.28	 	“Discharge Date” means the date on which:

	2.2.28.1	 	all the Liabilities (other than contingent liabilities in respect of continuing
indemnities under the Finance Documents under which no claim has been made and which remain
undischarged and

 

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	 	 	payments which may be set aside in terms of clause 2.2.61.3) have been
fully paid and discharged; and

	2.2.28.2	 	the Lenders have no commitment, obligation or liability (whether actual or contingent) to
lend money or provide other financial accommodation to any Obligor under any Finance Document;

	2.2.29	 	“Disposal” means a sale, lease, licence, transfer, loan or other disposal by a person of any
asset, undertaking or business (whether by a voluntary or involuntary single transaction or
series of transactions);

	2.2.30	 	“Distribution” means any payment by way of interest, principal, dividend, fee, royalty or
other distribution or payment by or on behalf of the Borrower to or for the account of any
Shareholder or any person that directly or indirectly controls or is controlled by any
Shareholder;

	2.2.31	 	“Encumbrance” means any mortgage, pledge, lien, assignment or cession conferring security,
hypothecation, security interest, preferential right or trust arrangement or any other
agreement or arrangement, the effect of which is the creation of security;

	2.2.32	 	“Event of Default” means any one or more of the events or circumstances described as an
event of default as set out in clause 20 (Events of Default);

	2.2.33	 	“Environmental Claim” means any claim or proceedings by any person pursuant to an
Environmental Law;

	2.2.34	 	“Environmental Law” means any law applicable to the business conducted by the Group at the
relevant time in any jurisdiction in which the Group conducts business which relates to the
pollution, degradation or protection of the environment or harm to or the protection of human
health, animals or plants and including, without limitation, the National Environmental
Management Act, 1998 and the National Water Act, 1998;

 

Page 8

	2.2.35	 	“Environmental Permits” means any permit, licence, consent, approval and other authorisation
and the filing of any notification, report or assessment required under any Environmental Law
for the operation of the business of the Group on or from the properties owned or used by the
Group;

	2.2.36	 	“Facility” means the term loan facility granted by the Lenders to the Borrower in terms of
this Agreement;

	2.2.37	 	“Facility Agent” means Nedbank;

	2.2.38	 	“Facility Outstandings” means, at any time and in respect of any Lender, the aggregate
amount at that time of all amounts of principal and accrued and unpaid interest due and
payable to that Lender at that time under the Finance Documents;

	2.2.39	 	“Fee Letter” means the letter dated on or about the Signature Date between the Borrower and
Nedbank, setting out the fees payable to Nedbank under clause 30.1 (Arranging and Underwriting
Fees);

	2.2.40	 	“Final Repayment Date” means 29 December 2008 and if that date is not a Business Day, the
next Business Day in that calendar month (if there is one) or the preceding Business Day (if
there is not), or the date upon which the Loan becomes repayable by the Borrower pursuant to
the provisions of this Agreement;

	2.2.41	 	“Finance Documents” means:

	2.2.41.1	 	this Agreement;
	 
	2.2.41.2	 	the Intercreditor Agreement;
	 
	2.2.41.3	 	the Security Documents;

 

Page 9

	2.2.41.4	 	any Accession Undertaking;
	 
	2.2.41.5	 	any Cession and Delegation Agreement;
	 
	2.2.41.6	 	and any other agreement or document that may be designated as a “Finance Document” by
written agreement between the Lender and the Borrower; and
	 
	2.2.41.7	 	any amendment agreement to any Finance Documents listed in 2.2.41.1 to 2.2.41.6;

	2.2.42	 	“Finance Parties” means:

	2.2.42.1	 	the Lenders; and
	 
	2.2.42.2	 	the Facility Agent;

	 	 	and “Finance Party” means, as the context requires, any one of them;
2.2.43 “Financial Close” means the earlier of:

	2.2.43.1	 	the date of the notice by the Facility Agent referred to in clause 4.1 (Conditions to
Advance); and

	2.2.43.2	 	the date on which the Advance is made;

	2.2.44	 	“Financial Covenant” means the financial covenant referred to in clause 19 (Financial
Covenant);

	2.2.45	 	“Financial Year” means, at any time, the annual accounting period of the Group ending on 30
June in each calendar year;

	2.2.46	 	“Group” means the Borrower and each Group Company from time to time;

 

Page 10

	2.2.47	 	“Group Company” means:

	2.2.47.1	 	any subsidiary of the Borrower; and

	2.2.47.2	 	any partnership, unincorporated joint venture or trust in which the Borrower has a, direct
or indirect, partnership or beneficial interest of 50% (fifty percent) or more; and

	2.2.47.3	 	any company, partnership, unincorporated joint venture or trust which is Controlled by the
Borrower,

	 	 	and “Group Companies” means, as the context requires, all of them;

	2.2.48	 	“Guarantee” means the joint and several guarantee provided by each of the Guarantors in
terms of clause 14 (Guarantee and Indemnity) in favour of the Finance Parties for the
obligations of the Borrower hereunder;

	2.2.49	 	“Guarantors” means the companies listed in Schedule 2 (The Guarantors) , and “Guarantor”
means, as the context requires, any one of them;

	2.2.50	 	“Hidden Valley Project” means the project which involves the construction of a gold and
silver mine, which project comprises 4 (four) exploration licences of 966km2 (nine
hundred and sixty-six square kilometres) in the Wau District of Morobe Province, Papua New
Guinea, and is located 210km (two hundred and ten kilometres) north-northwest of Port Moresby
and 90km (ninety kilometres) south-southwest of Lae;

	2.2.51	 	“IFRS” means international accounting standards within the meaning of IAS Regulation
1606/2002 to the extent applicable to the relevant financial statement;

 

Page 11

	2.2.52	 	“Indebtedness” shall be widely construed so as to include any obligation (whether incurred
as principal or surety) for the payment or repayment of money, whether present or future,
actual or contingent;

	2.2.53	 	“Intellectual Property Rights” means any patents, trade marks, service marks, designs,
trading or business names, copyrights, design rights, moral rights, inventions, confidential
information, know-how, domain names, topographical or similar rights, database or other
intellectual property rights and interests and the benefit of all applications and rights to
use (including by way of licence) such assets of each Obligor, in each case whether registered
or unregistered;

	2.2.54	 	“Intercreditor Agreement” means the written agreement titled “Intercreditor Agreement” to be
entered into between the Facility Agent, the Original Lender and a party who becomes a Lender
in accordance with clause 26 (Change of Party) on or before any Cession and Delegation
Agreement becomes effective;

	2.2.55	 	“Interest Payment Date” means the last day of each Interest Period;

	2.2.56	 	“Interest Period” means each period of 3 (three) months (or part thereof) during the Term
commencing on the Advance Date and if:

	2.2.56.1	 	an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period shall instead end on the next Business Day in that calendar month (if there is one) or
the preceding Business Day (if there is not); or

	2.2.56.2	 	an Interest Period would otherwise overrun the Final Repayment Date, it shall be shortened
so that it ends on that date;

	2.2.57	 	“Interest Rate” means a fixed interest rate for each Interest Period equal to the JIBAR plus
the Applicable Margin plus Banking Costs;

 

Page 12

	2.2.58	 	“JIBAR” means the rate per annum determined by the Facility Agent to be equal to either:

	2.2.58.1	 	the quarter-year (91-day) Johannesburg Inter-Bank Agreed Rate as quoted by the South
African Futures Exchange and published on the Quotation Date to fund an amount equal to the
Advance for the Interest Period at or about 11h00 and which appears on the Reuters screen
SAFEY page; or

	2.2.58.2	 	if no such rate appears on such display or if no such display is then available for such
Interest Period, the arithmetic mean (rounded upwards, if not already such a multiple, to the
nearest whole multiple of 1/16th of 1% (one percent) of the mid-market deposit
rates for South African currency deposits as quoted on the respective money markets Reuters
page by the Reference Banks at or about 11h00 on the Quotation Date for such Interest Period;

	 	 	converted to a nacm rate;

	2.2.59	 	“Legal Adviser” means Deneys Reitz Inc. of 82 Maude Street, Sandton;

	2.2.60	 	“Lenders” means:

	2.2.60.1	 	the Original Lender;

	2.2.60.2	 	any person who has become a Party as a Lender in accordance with the terms of clause 26
(Change of Party);

	 	 	which in each case has not ceased to be a Party in accordance with the terms of
this Agreement and “Lender” means, as the context requires, any one of them;

 

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	2.2.61	 	“Liabilities” means all present and future liabilities and obligations at any time of an
Obligor to the Finance Parties under the Finance Documents, both actual and contingent and
whether incurred solely or jointly or in any other capacity together with any of the following
matters relating to or arising in respect of those liabilities or obligations:

	2.2.61.1	 	any refinancing, novation, deferral or extension;

	2.2.61.2	 	any claim for damages or restitution; and

	2.2.61.3	 	any claim as a result of any recovery by that Obligor of a payment or discharge on the
grounds of preference, and any amounts which would be included in any of the above but for any
discharge, non-provability or unenforceability of those amounts in any insolvency or other
proceedings;

	2.2.62	 	“Loan” means the aggregate principal amount for the time being outstanding hereunder;

	2.2.63	 	“Material Adverse Change” means a change in the circumstances existing as at the Signature
Date which in the reasonable opinion of the Facility Agent has or will have a material adverse
effect on:

	2.2.63.1	 	the business, assets, operations, property or condition (consolidated financial or
otherwise) of any of the Obligors or the Group taken as a whole;

	2.2.63.2	 	the ability of any Obligor to perform its obligations under any Finance Document to which
it is a party; or

	2.2.63.3	 	the validity, legality or enforceability of the material terms of any Finance Document or
the rights or remedies of the Lenders thereunder;

 

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	2.2.64	 	“Nedbank” means Nedbank Limited (acting through its Nedbank Capital division) (Registration
No 1951/000009/06)), a public company and registered bank duly incorporated in accordance with
the company and banking laws of South Africa;

	2.2.65	 	“New Lender” has the meaning given thereto in clause 26.2 (Assignment and Transfers by the
Lenders);

	2.2.66	 	“Obligors” means collectively, the Borrower and the Guarantors and “Obligor” shall be a
reference to any one of them, as required by the context;

	2.2.67	 	“Original Financial Statements” means the draft consolidated interim financial statements of
the Group for its financial year ended 30 June 2007, as provided by the Borrower to the
Facility Agent on or before the Signature Date;

	2.2.68	 	“Original Lender” means Nedbank;

	2.2.69	 	“Parties” means the Borrower, the Original Lender, the Facility Agent, the Guarantors and
any person acceding into this Agreement as a Lender, and “Party” means, as the context
requires, any one of them;

	2.2.70	 	“Permitted Disposal” means:

	2.2.70.1	 	any Disposal made by any Group Company on arm’s length terms if that Disposal is not
otherwise restricted by a term of any Finance Document;

	2.2.70.2	 	any Encumbrance that constitutes a Permitted Encumbrance;

	2.2.70.3	 	any other Disposal approved in advance in writing by the Facility Agent;

 

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	2.2.71	 	“Permitted Encumbrances” means:

	2.2.71.1	 	Encumbrances created over any asset or property to secure Indebtedness incurred for the
purpose of financing the purchase, development, improvement or construction thereof;

	2.2.71.2	 	Encumbrances created by operation of law and in the ordinary course of trading provided
that the same are discharged within 90 (ninety) days of their creation or, in the reasonable
opinion of the Facility Agent, are being contested in good faith;

	2.2.71.3	 	any Encumbrance which is existing prior to the Signature Date and which has been disclosed
(i) in Schedule 3 (Disclosed Encumbrances) hereto, or (ii) in the Original Financial
Statements and in all circumstances securing only Indebtedness outstanding at the Signature
Date if the principal amount or original facility thereby secured is not increased after the
Signature Date;

	2.2.71.4	 	any netting or set-off arrangement entered into by the Borrower in the normal course of
its banking arrangements for the purpose of netting debit and credit balances, and only such
arrangements that are in existence at the Signature Date;

	2.2.71.5	 	any landlord hypothecs in respect of property leased by any Obligor which in the aggregate
secure an amount of less than R1 000 000 (one million Rand); and

	2.2.71.6	 	any Encumbrance created in respect of Indebtedness incurred to prepay the Facility in full
in accordance with the provisions of clause 10 (Prepayment) below;

	2.2.71.7	 	any Encumbrance as contemplated in the Finance Documents;

 

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	2.2.71.8	 	any other Encumbrance created with the prior written approval of the Facility Agent;

	2.2.72	 	“Permitted Indebtedness” means:

	2.2.72.1	 	any Indebtedness incurred for the purpose of acquiring new plant, machinery and equipment
up to the market value thereof, and which will not once incurred cause the Financial Covenant
to be breached; and
	 
	2.2.72.2	 	any Indebtedness incurred by any of the Obligors which does not exceed R50 000 000 (fifty
million Rand) in aggregate per annum;
	 
	2.2.72.3	 	any Indebtedness which is existing prior to the Signature Date and which has been (i)
disclosed in Schedule 4 (Disclosed Indebtedness) hereto, or (ii) in the Original Financial
Statements;
	 
	2.2.72.4	 	any Indebtedness incurred to prepay the Facility in accordance with the provisions of
clause 10 (Prepayment) below;
	 
	2.2.72.5	 	any Indebtedness incurred hereunder; and
	 
	2.2.72.6	 	any other Indebtedness made with the prior written approval of the Facility Agent;

	2.2.73	 	“Permitted Loans” means:

	2.2.73.1	 	loans contemplated and permitted by the Finance Documents;

	2.2.73.2	 	trade credit granted in the ordinary course of an Obligor’s day-to-day business upon terms
usual for such trade;

 

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	2.2.73.3	 	loans made by an Obligor to another Obligor (but only if such loans are funded whilst no
Default has occurred which is continuing); or

	2.2.73.4	 	loans existing prior to the Signature Date and which have been (i) disclosed in Schedule 5
(Disclosed Loans) hereto, or (ii) in the Original Financial Statements;

	2.2.73.5	 	loans granted by the Borrower to any and all of the Group Companies, other than the
Obligors or for the purposes of the Hidden Valley Project, which do not exceed R50 000 000
(fifty million Rand) in aggregate during the Term;

	2.2.73.6	 	any other loans made with the prior written approval of the Facility Agent;

	2.2.74	 	“Prime Rate” means the nacm prime overdraft rate of interest from time to time publicly
quoted as such by Nedbank, calculated on a 365 (three hundred and sixty-five) day factor,
irrespective of whether or not the year is a leap year, as certified by any manager of
Nedbank, whose appointment as such it shall not be necessary to prove, which certificate shall
serve as prima facie proof of its contents;

	2.2.75	 	“Quotation Date” means the date upon which the Interest Rate is to be determined for an
Interest Period;

	2.2.76	 	“Ratio Test Date” means the last day of March, June, September and December;

	2.2.77	 	“Ratio Test Period” means each period of 3 (three) months ending on a Ratio Test Date;

	2.2.78	 	“Reference Banks” means Absa Bank Limited, FirstRand Bank Limited, the Standard Bank of
Southern Africa Limited and the Original Lender or

 

Page 18

	 	 	such other bank or banks as may from time to time be agreed in writing between
the Borrower and the Facility Agent;

	2.2.79	 	“Related Party” means any Shareholder and any affiliate of any Shareholder;

	2.2.80	 	“Repo Rate” means on any particular day, the repurchase tender rate on that day quoted by
the South African Reserve Bank;

	2.2.81	 	“RMB” means FirstRand Bank Limited (acting through its Rand Merchant Bank division)
(Registration No. 1929/001225/06), a public company duly incorporated in accordance with the
laws of South Africa;

	2.2.82	 	“Security Cession” means:

	2.2.82.1	 	a cession and pledge in security by the Borrower in favour of the Finance Parties on a
joint and several basis of the Subsidiaries’ Shares, the Borrower’s right, title and interests
in and to the Subsidiaries’ Loans and the Borrower’s right, title and interest in and to the
Deposit Account and all monies or amounts then or at any time hereafter standing to the credit
of the Deposit Account and all rights relating or attaching thereto, including the right to
interest; and

	2.2.82.2	 	a cession and pledge in security by ARMgold in favour of the Finance Parties on a joint
and several basis, of ARMgold’s Shares in and claims against ARMgold/Harmony Joint Investment
Company (Proprietary) Limited and ARMgold/Harmony Freegold Joint Venture Company (Proprietary)
Limited;

	 	 	and “Security Cessions” means both of them, as required by the context;

 

Page 19

	2.2.83	 	“Security Documents” means the Guarantee, the Security Cession and any other agreement or
document that may be designated as a “Security Document” by written agreement between the
Facility Agent and the Borrower;

	2.2.84	 	“Share Consideration” shall have the meaning given to it in clause 10.3.2 (Mandatory
Prepayment: Disposal of South African Assets);

	2.2.85	 	“Shareholder” means any member of the Borrower from time to time;

	2.2.86	 	“Short Term Debt” means the facility granted to the Borrower by RMB for a maximum principal
amount of R500 000 000 (five hundred million Rand), which is to be repaid on or before 28
September 2007;

	2.2.87	 	“Signature Date” means the date of the signature of the Party last signing this Agreement in
time;

	2.2.88	 	“South Africa” means the Republic of South Africa as constituted from time to time;

	2.2.89	 	“Subsidiaries’ Loans” means all loans made the Borrower to the Guarantors from time to time;

	2.2.90	 	“Subsidiaries’ Shares” means all the ordinary shares and preference shares in the issued
share capital of the Guarantors, which are held by the Borrower from time to time (including,
but not limited to, any such shares which may be issued or transferred to the Borrower in the
future);

	2.2.91	 	“Term” means the period from the Advance Date to the earlier of the Final Repayment Date or
any other date on which the Facility Outstandings are repaid in full by the Borrower;

 

Page 20

	2.2.92	 	“Transaction Security” means the security interest created or expressed to be created in
favour of the Finance Parties pursuant to the Security Documents, as stipulated in Schedule 7
(Transaction Security);

	2.2.93	 	“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents;

	2.2.94	 	“VAT” means value added tax including any similar tax which may be imposed in place thereof
from time to time.

	2.3	 	Any reference in this Agreement to:

	2.3.1	 	an “affiliate” means, in relation to any person, a subsidiary of that person or a holding
company of that person or any other subsidiary of that holding company;

	2.3.2	 	a “clause” shall, subject to any contrary indication, be construed as a reference to a
clause hereof;

	2.3.3	 	“continuing”, in the context of an Event of Default, means:

	2.3.3.1	 	where the Event of Default or its consequences are incapable of remedy that Event of
Default is deemed to be continuing unless it has been expressly waived in writing by the
Lender and any conditions of such waiver have been fulfilled to the reasonable satisfaction of
the Lender;

	2.3.3.2	 	in any other case, that Event of Default is deemed to be continuing unless and until
either:

	2.3.3.2.1	 	it has been expressly waived in writing by the Lender and any conditions of such waiver
have been fulfilled to the reasonable satisfaction of the Lender; or

 

Page 21

	2.3.3.2.2	 	it has been remedied within the applicable remedy period by any person and the resulting
position is that which it would have been if such Event of Default had not occurred;

	2.3.4	 	a “holding company” shall be construed in accordance with the Companies Act;

	2.3.5	 	“law” shall be construed as any law (including common or customary law) or statute,
constitution, decree, judgment, treaty, regulation, directive, bye-law, order or any other
legislative measure of any government, supranational, local government, statutory or
regulatory body or court;

	2.3.6	 	“month” means unless the context otherwise requires, a period starting on one day in a
calendar month and ending on the numerically corresponding day in the next succeeding calendar
month except that, where any such period would otherwise end on a day which is not a Business
Day it shall end on the immediately preceding Business Day; provided that if a period starts
on the last Business Day of a calendar month or if there is no numerically corresponding days
in the month in which that period ends, that period shall end on the last Business Day in that
later month (and references to “months” shall be construed accordingly);

	2.3.7	 	“nacm” means nominal annual compounded monthly in arrears;

	2.3.8	 	“nacq” means nominal annual compounded quarterly in arrears;

	2.3.9	 	a “person” shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership (whether or not
having separate legal personality) of two or more of the foregoing;

 

Page 22

	2.3.10	 	“repay” (or any derivative form thereof) shall, subject to any contrary indication, be
construed to include “prepay” or, as the case may be, the corresponding derivate form thereof;

	2.3.11	 	a “Schedule” shall, subject to any contrary indication, be construed as a reference to a
schedule hereof;

	2.3.12	 	a “subsidiary” shall be construed in accordance with the Companies Act;

	2.3.13	 	“tax” shall be construed so as to include any tax, levy, impost or other charge of a similar
nature (including, without limitation, any penalty or interest payable in connection with any
failure to pay or delay in paying any of the same).

	2.4	 	Unless inconsistent with the context or save where the contrary is expressly indicated:

	2.4.1	 	if any provision in a definition is a substantive provision conferring rights or imposing
obligations on any Party, notwithstanding that it appears only in this interpretation clause,
effect shall be given to it as if it were a substantive provision of this Agreement;

	2.4.2	 	when any number of days is prescribed in this Agreement, same shall be reckoned inclusively
of the first and exclusively of the last day unless the last day falls on a day which is not a
Business Day, in which case the last day shall be the next succeeding Business Day;

	2.4.3	 	in the event that the day for payment of any amount due in terms of this Agreement should
fall on a day which is not a Business Day, the relevant day for payment shall be the previous
Business Day;

	2.4.4	 	in the event that the day for performance of any obligation to be performed in terms of this
Agreement should fall on a day which is not a Business

 

Page 23

	 	 	Day, the relevant day for performance shall be the next succeeding Business Day;

	2.4.5	 	any reference in this Agreement to an enactment is to that enactment as at the Signature
Date and as amended or re-enacted from time to time;

	2.4.6	 	any reference in this Agreement to this Agreement or any other agreement or document shall
be construed as a reference to this Agreement or, as the case may be, such other agreement or
document as same may have been, or may from time to time be, amended, varied, novated or
supplemented;

	2.4.7	 	no provision of this Agreement constitutes a stipulation for the benefit of any person who
is not a Party to this Agreement;

	2.4.8	 	references to day/s, month/s or year/s shall be construed as Gregorian calendar day/s,
month/s or year/s;

	2.4.9	 	a reference to a Party includes that Party’s successors-in-title and permitted assigns;

	2.4.10	 	a time of day shall be construed as a reference to Johannesburg time.

	2.5	 	Unless inconsistent with the context, an expression which denotes:

	2.5.1	 	any one gender includes the other genders;
	 
	2.5.2	 	a natural person includes an artificial person and vice versa; and
	 
	2.5.3	 	the singular includes the plural and vice versa.

	2.6	 	The schedules or annexures to this Agreement form an integral part hereof and words and
expressions defined in this Agreement shall bear, unless the context otherwise requires, the
same meaning in such schedules or annexures. To the

 

Page 24

	 	 	extent that there is any conflict between the schedules or annexures to this Agreement
and the provisions of this Agreement, the provisions of this Agreement shall prevail.
	 
	2.7	 	Where any term is defined within the context of any particular clause in this Agreement, the
term so defined, unless it is clear from the clause in question that the term so defined has
limited application to the relevant clause, shall bear the same meaning as ascribed to it for
all purposes in terms of this Agreement, notwithstanding that that term has not been defined
in this interpretation clause.
	 
	2.8	 	The rule of construction that, in the event of ambiguity, the contract shall be interpreted
against the Party responsible for the drafting thereof, shall not apply in the interpretation
of this Agreement.
	 
	2.9	 	The expiration or termination of this Agreement shall not affect such of the provisions of
this Agreement as expressly provide that they will operate after any such expiration or
termination or which of necessity must continue to have effect after such expiration or
termination, notwithstanding that the clauses themselves do not expressly provide for this.
	 
	2.10	 	This Agreement shall be binding on and enforceable by the administrators, trustees, permitted
assigns or liquidators of the Parties as fully and effectually as if they had signed this
Agreement in the first instance and reference to any Party shall be deemed to include such
Party’s administrators, trustees, permitted assigns or liquidators, as the case may be.
	 
	2.11	 	The use of any expression in this Agreement covering a process available under South African
law such as winding-up (without limitation eiusdem generis) shall, if any of the Parties to
this Agreement is subject to the law of any other jurisdiction, be construed as including any
equivalent or analogous proceedings under the law of such other jurisdiction.

 

Page 25

	2.12	 	Where figures are referred to in numerals and in words, if there is any conflict between the
two, the words shall prevail.

	3.	 	INTRODUCTION

	3.1	 	The Borrower wishes to raise finance from the Original Lender in an amount equal to the
Available Facility to fund the Borrower’s capital expenditure in respect of projects, to repay
the Short Term Debt and to pay all fees, costs and expenses due and payable on Financial
Close.
	 
	3.2	 	The Original Lender is willing to make the Facility available to the Borrower for the
purposes set out in clause 3.1 upon the terms and conditions of this Agreement.

	4.	 	CONDITIONS TO ADVANCE

	4.1	 	Save as provided for in clause 4.2 or as the Facility Agent may otherwise agree in writing,
the Advance shall not be made hereunder unless the Facility Agent has confirmed to the
Borrower in writing that:

	4.1.1	 	it has received all of the Advance Condition Documents and that each such document is, in
form and substance, satisfactory to the Facility Agent; and

	4.1.2	 	all of the Advance Conditions have been fulfilled to the satisfaction of, or waived by, the
Facility Agent.

	4.2	 	The Facility Agent may:

	4.2.1	 	waive any of the conditions referred to in this clause 4 and in such event the Facility
Agent may attach to such waiver such requirements and further or other conditions as the
Facility Agent (in its sole discretion) deems fit;

 

Page 26

	4.2.2	 	agree to make the Advance on terms (express or otherwise) that any condition may be
converted to a term of this Agreement and that the obligation thereunder be discharged after
the date of making of the Advance, and in such event the Borrower shall procure that such
obligation is discharged within a period of 5 (five) Business Days after such Advance (or such
other period as the Facility Agent may agree to in writing), and the Facility Agent shall be
entitled on written notice to the Borrower to treat any failure by the Borrower to procure the
discharge of such obligation as an Event of Default.

	4.3	 	The Finance Documents shall terminate 5 (five) Business Days from the Signature Date if
Financial Close is not achieved by such date or such later date as may be agreed by the
Parties in writing. Such termination shall be without prejudice to the Borrower’s obligations
under clause 30.3 (Expenses), and the provisions of clause 2, (Definitions and
Interpretation), clause 30.3 (Expenses), clause 30.5 (Value Added Tax), clause 31 (Notices and
Domicilia), clause 32 (Governing Law), clause 33 (Jurisdiction), clause 34 (Severability),
clause 35 (General), clause 36 (Counterparts) and this clause 4.3 shall remain in force for
such purpose.

	5.	 	FACILITY
	 
	 	 	Subject to the provisions of clause 4 (Conditions to Advance), the Original Lender grants to
the Borrower, upon the terms and subject to the conditions of this Agreement, the Available
Facility.

	6.	 	PURPOSE

	6.1	 	The Facility is intended to fund the Borrower’s capital expenditure in respect of projects,
to repay the Short Term Debt, and all fees, costs and expenses due and payable in the amounts
specified in the Fee Letter on Financial Close, and
accordingly, the Borrower shall apply all amounts raised by it hereunder in or towards
satisfaction of such purposes.

 

Page 27

	6.2	 	Without prejudice to the obligations of the Borrower under clause 6.1, the Finance Parties
shall not be obliged to concern themselves with the application of amounts raised by the
Borrower hereunder.

	7.	 	UTILISATION

	7.1	 	Subject to the terms of this Agreement, the Advance shall be made to the Borrower by the
Original Lender on the Advance Date as follows:

	7.1.1	 	by payment to RMB in discharge of the Borrower’s obligations under the Short Term Debt, in
an aggregate amount of R515 695 867,45 (five hundred and fifteen million six hundred and
ninety-five thousand eight hundred and sixty-seven Rands and forty-five cents), by way of
electronic transfer into the following bank account:

	 	 	 	 	 
	 

	 	Bank:
	 	First National Bank;
	 
	 	 	 	 
	 

	 	Branch:
	 	Corporate Account Services;
	 
	 	 	 	 
	 

	 	Branch code:
	 	25 50 05;
	 
	 	 	 	 
	 

	 	Account number:
	 	5061 9016 740;
	 
	 	 	 	 
	 

	 	Account name:
	 	RMB Money Market;

	7.1.2	 	by payment to Nedbank of the fees, costs and expenses stipulated in the Fee Letter;

	7.1.3	 	by way of electronic transfer, transfer R500 000 000 (five hundred million Rand) into the
following bank account:

 

Page 28

	 	 	 	 	 
	 

	 	Bank:
	 	Absa Bank Limited
	 
	 	 	 	 
	 

	 	Branch:
	 	Virginia
	 
	 	 	 	 
	 

	 	Account number:
	 	40-4873-7227
	 
	 	 	 	 
	 

	 	Account name:
	 	Harmony Treasury Account

	7.1.4	 	by way of electronic transfer, transfer the remaining balance of the Advance into the
following bank account:

	 	 	 	 	 
	 
	 	Bank:	 	Nedbank Limited
	 
	 	 	 	 
	 
	 	Branch:	 	1776605
	 
	 	 	 	 
	 
	 	Account number:	 	1766-000-029
	 
	 	 	 	 
	 
	 	Account name:	 	Domestic Treasury Suspense Account
	 
	 	 	 	 
	 
	 	 	 	Re: 7881 512 733

	 	 	(the “Deposit Account”)

	 	 	Provided that on the Advance Date:

	7.1.4.1	 	no Default has occurred and is continuing; and

	7.1.4.2	 	the representations and warranties set out in clause 15 (Warranties and Representations)
are true; or

	 	 	the Original Lender agrees to make such Advance.

	7.2	 	The Borrower agrees that any payment to RMB and Nedbank pursuant to clauses 7.1.1 and 7.1.2
shall form part of the Advance and the Borrower renounces all benefits of the exception of “no
value received”, “non numeratae pecuniae”, “non causa debiti” and “errore calculi”, the
meaning and effect of which it declares it understands.

	7.3	 	The Borrower acknowledges and agrees that:

 

Page 29

	7.3.1	 	the Original Lender shall not be obliged to make the Advance unless the Advance Conditions
have been fulfilled or waived and the conditions set out in clause 7.1.4.1 and 7.1.4.2 are
met;

	7.3.2	 	no Advance or portion thereof repaid by the Borrower in accordance with the provisions of
this Agreement or otherwise shall be available to be re-advanced to the Borrower by the
Lenders;

	7.3.3	 	the Finance Parties shall not incur any liability to the Borrower in the event of the
Advance under the Facility earmarked for the purposes of clause 6 (Purpose) not being utilised
for such purpose and in such an event, the portion of those payments made from the Facility
will nevertheless be regarded as constituting valid advances and form part of the Loan;

	7.3.4	 	if any monies are advanced in the mistaken belief that the Advance Conditions have been
fulfilled or waived in accordance with this Agreement, and it is subsequently determined that
not all the Advance Conditions have been fulfilled or waived, this Agreement shall be valid
and enforceable in respect of the monies advanced and the Facility, and the Facility Agent
shall be entitled on written notice to the Borrower, to demand immediate payment of the
Facility Outstandings, without prejudice to any other rights or remedies that the Lenders may
have in law.

	8.	 	INTEREST

	8.1	 	The Loan shall bear interest at the Interest Rate which shall:

	8.1.1	 	accrue on a day to day basis over the Term; and

	8.1.2	 	be calculated on the actual number of days elapsed and, for the purposes of calculation,
based on a year of 365 (three hundred and sixty-five) days, irrespective of whether the year
in question is a leap year.

 

Page 30

	8.2	 	All interest accrued on the Loan during the Term (including capitalised interest) shall be
paid by the Borrower on each Interest Payment Date to the Lenders, in accordance with clause
11 (Payments).

	8.3	 	The Facility Agent shall promptly notify the Borrower of the applicable Interest Rate
determined pursuant to the provisions of this Agreement promptly after ascertaining the same.

	9.	 	REPAYMENT

	9.1	 	The Borrower shall, subject to the provisions of clauses 10 (Prepayment) and 20 (Events of
Default), repay the Advance together with all accrued but unpaid interest on the Final
Repayment Date, in accordance with clause 11 (Payments).

	9.2	 	The Borrower shall not repay all or any part of the Loan except at the times and in the
manner expressly provided for in this Agreement and shall not be entitled to reborrow any
amount repaid.

	10.	 	PREPAYMENT

	10.1	 	At any time during the Term, and provided that no Default has occurred that is continuing,
the Borrower may, subject to the provisions of clause 30.2 (Exit Fees), by giving to the
Facility Agent not less than 5 (five) Business Days prior written notice to that effect,
prepay the whole or part of the Facility Outstandings on an Interest Payment Date; provided
that:

	10.1.1	 	no such prepayment shall be in an amount of less than R50 000 000 (fifty million Rand) (or a
greater amount thereof in increments of R10 000 000 (ten million Rand)) or the Facility
Outstandings, whichever is the lesser; and

	10.1.2	 	where such prepayment is as a result of a refinancing (as contemplated in clause 30.2.1
(Exit Fees)):

 

Page 31

	10.1.2.1	 	the Borrower must give the Facility Agent not less than 15 (fifteen) Business Days prior
written notice to that effect; and

	10.1.2.2	 	such prepayment must be of the Facility Outstandings and not a portion thereof.

	10.2	 	Any notice of prepayment pursuant to clause 10.1 shall:

	10.2.1	 	be irrevocable;

	10.2.2	 	specify a date upon which such prepayment is to be made, which date is an Interest Payment
Date;
	 
	10.2.3	 	specify the amount of the prepayment; and
	 
	10.2.4	 	oblige the Borrower to make such prepayment on such date.

	10.3	 	Mandatory Prepayment: Disposal of South African Assets

	10.3.1	 	The Borrower shall given the Facility Agent at least 10 (ten) Business Days written notice,
prior to the occurrence of a Permitted Disposal of an asset located within South Africa of the
Borrower or any Group Company should the amount anticipated to be realised exceed R50 000 000
(fifty million Rand).

	10.3.2	 	The Borrower shall forthwith notify the Lenders in writing of the amount realised (net of
all realisation costs, expenses and taxes) in the form of cash (“Cash Consideration”) and/or
shares (“Share Consideration”) (collectively the “Disposal Amount”) upon the occurrence of the
Permitted Disposal.

	10.3.3	 	Should the Cash Consideration portion of the Disposal Amount exceed R50 000 000 (fifty
million Rand), not later than 20 (twenty) Business

 

Page 32

	 	 	Days after the Permitted Disposal the Borrower shall, by delivering a written
notice (the “Offer Notice”) to the Lenders to that effect, offer to prepay the
Facility Outstandings in an amount equal to the Cash Consideration portion of
the Disposal Amount.

	10.3.4	 	The Facility Agent shall, within 5 (five) Business Days of receipt of the Offer Notice,
advise the Borrower in writing whether it wishes to accept the offer pursuant to clause 10.3.3
and if so the amount (the “Accepted Prepayment Amount”) to be applied in prepayment of the
Facility Outstandings.

	10.3.5	 	The Borrower shall pay to the Facility Agent the Accepted Prepayment Amount within 2 (two)
Business Days of receipt of the Facility Agent’s acceptance thereof. The payment to the
Facility Agent of the Prepayment Amount shall be applied to reduce the Facility
Outstandings by the same amount.

	10.3.6	 	Not later than 20 (twenty) Business Days after each Permitted Disposal, the Borrower shall
grant the Finance Parties (on a joint and several basis) a cession and pledge in security of
the Share Consideration portion of the Disposal Amount, on terms and conditions substantially
similar to the Security Cession granted by ARMgold in respect of its shares in ARMgold/Harmony
Joint Investment Company (Proprietary) Limited and ARMgold/Harmony Freegold Joint Venture
Company (Proprietary) Limited, subject to any restrictions imposed on the Borrower pursuant to
the Disposal in respect of encumbrances and/or disposals of the Share Consideration.

	10.3.7	 	The provisions of this clause 10.3 shall not apply in relation to:

	10.3.7.1	 	any Cash Consideration received in respect of the Disposal by ARMgold of that portion of
its operations known as Orkney 1 — 7
Shafts located in Orkney, North West Province of the Republic of

 

Page 33

	 	 	South
Africa, to Clidet No 759 (Proprietary) Limited (an entity that will be a
wholly owned subsidiary of ARMgold), and the subsequent unbundling of the
shares in Clidet 759 (Proprietary) Limited to Harmony and subsequent sale
to Pamodzi Gold Limited; and

	10.3.7.2	 	25% (twenty-five percent) of the proceeds of the intended Disposal by Randfontein Estates
Limited of the Cooke Dump Tailings Dam located in Randfontein, Gauteng Province of the
Republic of South Africa.

	11.	 	PAYMENTS

	11.1	 	All payments to be made by the Obligors under any Finance Documents shall be governed by the
following provisions:

	11.1.1	 	all such payments shall be made to the Facility Agent, on the due date for such payment, to
such account as the Facility Agent specifies, and any such payment shall discharge, pro tanto,
the corresponding liability to the Finance Parties;

	11.1.2	 	all such payments shall be made for value by no later than 12h00 on the due date for such
payment;

	11.1.3	 	the relevant Obligor shall advise the Facility Agent in writing once such repayment has been
made; and

	11.1.4	 	all such payments shall be made in immediately available, freely transferable, cleared funds
free and clear of set-off, deduction or counterclaim.

	11.2	 	In the event of any payment not being made in full on its due date, appropriated in the first
instance to the payment of any costs, charges or expenses, thereafter

 

Page 34

	 	 	to interest then due and payable, and thereafter in reduction of the principal amount
of the Loan.

	11.3	 	The Borrower shall not have the right to defer, adjust or withhold any payment due to any
Finance Party in terms of or arising out of this Agreement or to obtain deferment of judgement
for such amount or any execution of such judgement by reason of any set-off or counterclaim
due to any other contractual or delictual claims or causes of whatsoever nature or howsoever
arising.

	11.4	 	If, at any time, it shall become impracticable (by reason of any action of any governmental
authority or any change in law, exchange control regulations or any similar event) for the
Borrower to make any payments hereunder in the manner specified in this clause 11 (Payments),
then the Borrower may agree with the Facility Agent alternative arrangements for such payment
to be made; provided that, in the absence of any such agreement, the Borrower shall be obliged
to make all payments due to the Finance Parties in the manner specified herein.

	12.	 	BREAKAGE COSTS AND BREAKAGE GAINS

	12.1	 	If a Lender (or any person on its behalf) receives or recovers all or any part of the
Facility Outstandings otherwise than on the Interest Payment Date of the Interest Period
relating to the Advance:

	12.1.1	 	the Borrower indemnifies and holds that Lender harmless and shall pay to that Lender on
demand an amount equal to all Breakage Costs which that Lender sustains as a consequence of
such receipt or recovery on day other than an Interest Payment Date; or

	12.1.2	 	that Lender shall pay to the Borrower on demand an amount equal to all Breakage Gains which
that Lender has actually realised as a consequence of such receipt or recovery on a day other
than on an Interest Payment Date.

 

Page 35

	12.2	 	A certificate signed by any director or manager of the Facility Agent (whose appointment need
not be proved) as to the amount of any Breakage Costs or Breakage Gains, as the case may be,
shall be prima facie proof of the amount thereof.

	13.	 	ILLEGALITY

	 	 	If, at any time, it is unlawful for any of the Lenders to make, fund or allow to remain
outstanding all or any part of the Advance, then the Facility Agent shall, promptly after
becoming aware of the same, deliver to the Borrower a certificate to that effect and:

	13.1	 	the relevant Lender shall not thereafter be obliged to make the Advance; and

	13.2	 	if the relevant Lender so requires, the Borrower shall on such date as the Facility Agent
shall have specified, having given at least 10 (ten) Business Days’ written notice to that
effect, repay that Lender’s portion of the Facility Outstandings and any repayment so made
shall reduce rateably the remaining obligations of the Borrower under clause 9 (Repayment).

	14.	 	GUARANTEE AND INDEMNITY

	14.1	 	Guarantee and Indemnity

	 	 	Each Guarantor irrevocably and unconditionally jointly and severally:

	14.1.1	 	guarantees to each Finance Party the punctual performance by the Borrower of all the
Borrower’s obligations under the Finance Documents;

	14.1.2	 	undertakes to each Finance Party that whenever the Borrower does not pay any amount when due
under or in connection with any Finance Document, that Guarantor shall directly on demand pay
that amount as if it was the principal obligor; and

 

Page 36

	14.1.3	 	indemnifies each Finance Party directly on demand against any cost, loss or liability
suffered by that Finance Party if any obligation guaranteed by it is or becomes unenforceable,
invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount
which that Finance Party would otherwise have been entitled to recover.

	14.2	 	Continuing Guarantee

	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of
sums payable by the Borrower under the Finance Documents, regardless of any
intermediate payment or discharge in whole or in part.

	14.3	 	Reinstatement

	 	 	If any payment by the Borrower or any discharge given by a Finance Party (whether in
respect of the obligations of the Borrower or any security for those obligations or
otherwise) is avoided or reduced as a result of insolvency or any similar event:

	14.3.1	 	the liability of the Borrower shall continue as if the payment, discharge, avoidance or
reduction had not occurred; and

	14.3.2	 	the relevant Finance Party shall be entitled to recover the value or amount of that security
or payment from the Borrower, as if the payment, discharge, avoidance or reduction had not
occurred.

	14.4	 	Waiver of Defences

	 	 	The obligations of each Guarantor under this clause 14 will, subject to applicable law,
not be affected by an act, omission, matter or thing which, but for this clause, would
reduce, release or prejudice any of its obligations under this clause 14 (without
limitation and whether or not known to it or any Finance Party) including:

 

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	14.4.1	 	any time, waiver or consent granted to, or composition with, the Borrower or other person;

	14.4.2	 	the release of the Borrower or any other person under the terms of any composition or
arrangement with any creditor of any member of the Group;

	14.4.3	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to
perfect, take up or enforce, any rights against, or security over assets of, the Borrower or
other person or any non-presentation or non-observance of any formality or other requirement
in respect of any instrument or any failure to realise the full value of any security;

	14.4.4	 	any incapacity or lack of power, authority or legal personality of or dissolution or change
in the members or status of the Borrower or any other person;

	14.4.5	 	any amendment (however fundamental) or replacement of a Finance Document or any other
document or security;

	14.4.6	 	an unenforceability, illegality or invalidity of any obligation of any person under any
Finance Document or any other document or security; or

	14.4.7	 	any insolvency or similar proceedings.

	14.5	 	Direct Recourse

	 	 	Each Guarantor waives any right it may have of first requiring any Finance Party to
proceed against or enforce any other rights or security or claim payment from any
person before claiming from that Guarantor under this clause 14; provided that prior to
making any demand on any Guarantor under this clause 14 demand shall first have been
made on the Borrower and the Borrower shall have

 

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	 	 	failed to pay the sum or perform the obligation demanded within the requisite period
specified in such demand. This waiver applies irrespective of any law or any provision
of a Finance Document to the contrary.

	14.6	 	Appropriations

	 	 	Until all amounts which may be or become payable by the Borrower under or in connection
with the Finance Documents have been irrevocably paid in full, each Finance Party (or
any agent on its behalf) may apply all monies, security or rights received by it on
account thereof in such manner and order as it sees fit.

	14.7	 	Deferral of Guarantors’ Rights

	 	 	Until all amounts which may be or become payable by the Borrower under or in connection
with the Finance Documents have been irrevocably paid in full and unless the Facility
Agent (acting reasonably) otherwise directs, no Guarantor will exercise any rights
which it may have by reason of performance by it of its obligations under the Finance
Documents:

	14.7.1	 	to be indemnified by the Borrower;

	14.7.2	 	to claim any contribution from any Guarantor; and/or

	14.7.3	 	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of
the rights of the Finance Parties under the Finance Documents, or of any other guarantee or
security taken pursuant to, or in connection with, the Finance Documents by any Finance Party.

 

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	14.8	 	Additional Security

	 	 	This guarantee is in addition to and is not in any way prejudiced by any other
guarantee or security now or subsequently held by any Finance Party.

	15.	 	WARRANTIES AND REPRESENTATIONS

	15.1	 	From the Signature Date, each Obligor hereby represents and warrants to the Lender on a
continuing basis that:

	15.1.1	 	Status

	15.1.1.1	 	It is a limited liability company, duly incorporated and in good standing and validly
existing under the laws of the Republic of South Africa.

	15.1.1.2	 	It has the power to own its assets and carry on its business as it is being conducted or
is contemplated to be conducted.

	15.1.2	 	Power and Authority

	15.1.2.1	 	It has the power to enter into and perform, and has taken all necessary action to
authorise its entry into, and performance of, the Finance Documents to which it is party and
the transactions contemplated by those Finance Documents.

	15.1.2.2	 	No limit on its powers will be exceeded as a result of the borrowings, grant of security
or giving of guarantees or indemnities contemplated by the Finance Documents to which it is a
party.

 

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	15.1.3	 	Authorisations

	15.1.3.1	 	All Authorisations required to enable it lawfully to enter into, exercise its rights and
comply with its obligations under the Finance Documents to which it is a party and to ensure
that the obligations expressed to be assumed by it thereunder are legal, valid, binding and
enforceable have been obtained or effected and are in full force and effect.

	15.1.3.2	 	It is not necessary that any Finance Document be filed, recorded or enrolled with any
court or other authority in South Africa or that any registration or similar tax be paid on or
in relation to any Finance Document;

	15.1.3.3	 	All Authorisations necessary for the conduct of its business, trade and ordinary
activities have been obtained or effected and are in full force and effect.

	15.1.4	 	Constitutional Documents

	15.1.5	 	The execution of the Finance Documents to which it is a party and its exercise of its rights
and performance of its obligations thereunder do not and will not conflict with its
Constitutional Documents.

	15.1.6	 	Binding Obligations

	 	 	The obligations expressed to be assumed by it in each Finance Document to which
it is a party are legal, valid, binding and enforceable obligations.

	15.1.7	 	Non-conflict with Other Obligations

	 	 	The entry into and performance by it of, and the transactions contemplated by,
the Finance Documents to which it is a party and the granting of the

 

Page 41

	 	 	Transaction Security pursuant to the Security Documents to which it is a party
do not and will not conflict with any agreement or instrument binding upon it or
any of its assets, including in particular the R1 700 000 000 (one billion seven
hundred million Rand) 4,875% (four comma eight seven five percent) convertible
bonds (due 2009) issued by the Borrower,

	15.1.8	 	No Default

	15.1.8.1	 	No Default is continuing or might reasonably be expected to result from the making of the
Loan or the entry into, the performance of, or any transaction contemplated by, any Finance
Document.

	15.1.8.2	 	No event or circumstance is continuing which constitutes a breach or default under, or
entitles another party to call for termination of, any material agreement or material
instrument which is binding on it.

	15.1.9	 	No Encumbrances

	15.1.9.1	 	No Encumbrance exists over any of its assets except for Permitted Encumbrances.

	15.1.9.2	 	Other than the Encumbrances created or to be created under the Security Documents, no
Encumbrance will arise solely as a result of the execution of and performance of its rights
and obligations under the Finance Documents.

	15.1.10	 	Indebtedness

	 	 	It has not incurred any Financial Indebtedness except for Permitted
Indebtedness.

 

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	15.1.11	 	No Proceedings Pending or Threatened

	 	 	No investigation, litigation, arbitration or administrative proceedings of or
before any court, arbitral body or government agency which, if adversely
determine, is reasonably likely to result in a Material Adverse Change have been
started against it.

	15.1.12	 	No Winding-Up

	 	 	It has not taken any corporate action, nor have any other steps been taken or
legal proceedings started against it, for its winding-up, dissolution, or
administration or for the enforcement of any security interest over all or any
of its revenues or assets or for the appointment of a receiver, administrator,
administrative receiver, conservator, custodian, trustee or similar officer of
it or of all or any of its assets.

	15.1.13	 	Solvency

	15.1.13.1	 	No Obligor is unable or has admitted its inability to pay its debts as they fall due or
has suspended making payments on any of its debts or, by reason or actual or anticipated
financial difficulties, commenced negotiations with its creditors generally with a view to
rescheduling its indebtedness.

	15.1.13.2	 	A moratorium has not been declared in respect of any of the indebtedness of any Obligor.

	15.1.14	 	Compliance with Laws

	 	 	Without detracting from any other provision of this clause 15, each Obligor is
in compliance with in all material respects the laws of the Republic of South
Africa.

 

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	15.1.15	 	Environmental Compliance

	 	 	Each Obligor, to the extent applicable to it, has:

	15.1.15.1	 	performed and observed in all material respects all Environmental Law, Environmental
Permits and all other material covenants, conditions, restrictions or agreements directly or
indirectly concerned with any contamination, pollution, degradation or waste or the release or
discharge of any toxic or hazardous substance in connection with any real property which is or
was at any time owned, leased, occupied or controlled by it or on which it has conducted any
activity where failure to do so is likely to result in a Material Adverse Change; and

	15.1.15.2	 	obtained all Environmental Permits required by it which are material to properly conduct
its business.

	15.1.16	 	Environmental Claims

	 	 	Save to the extent disclosed in Schedule 6 (Disclosed Potential Environmental
Claim), no Environmental Claim has been commenced against any Obligor where that
claim would be reasonably likely to be adversely determined and which, if so
adversely determined against that Obligor, is likely to result in a Material
Adverse Change.

	15.1.17	 	Deduction of Tax

	 	 	It is not required to make any deduction for or on account of tax from any
payment it may make under any Finance Documents to the Finance Parties.

 

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	15.1.18	 	Taxation

	15.1.18.1	 	Each Obligor has duly and punctually paid and discharged all taxes imposed upon it or its
assets within a time period allowed without incurring penalties except to the extent that:

	15.1.18.1.1	 	payment is being contested in good faith;

	15.1.18.1.2	 	it has maintained adequate provisions for those taxes in accordance with IFRS; and

	15.1.18.1.3	 	payment can be lawfully withheld.

	15.1.18.2	 	Each Obligor is materially overdue in the filing of its tax returns since the years
specified in Schedule 13 (Last Tax Return Year) for each Obligor. Such late filing is due to
bona fide queries having been raised by each of the Obligors with the South African Revenue
Service and/or by the South African Revenue Service with all or any of the Obligors, and for
which proper and adequate provision has been made in the Original Financial Statements.

	15.1.19	 	No Misleading Information

	15.1.19.1	 	To the best of its knowledge and belief (having made due enquiry), all written
information provided by it and supplied to the Facility Agent pursuant to the terms of the
Finance Documents and the transactions contemplated thereby is true and accurate in all
material respects as at the date it was given and is not misleading in any material respects
(whether because of information actually provided or which should have been provided).

 

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	15.1.19.2	 	All written information referred to in this clause 15.1.19 has been disclosed to the
Facility Agent without breaching any confidentiality obligation binding upon it or its assets.

	15.1.19.3	 	It has not knowingly withheld any information which, if disclosed, would reasonably be
expected materially and adversely to affect the decision of the Lenders to provide finance to
the Borrower.

	15.1.20	 	No Breach of Finance Documents
	 
	15.1.21	 	It is not in breach of or in Default under any Finance Document.
	 
	15.1.22	 	No Material Adverse Change

	 	 	Since the Signature Date, no event or series of events has occurred, commenced
or is threatened which is (or the continuation of which is) likely to result in
a Material Adverse Change.

	15.1.23	 	Original Financial Statements

	15.1.23.1	 	The Original Financial Statements were prepared in accordance with IFRS consistently
applied, except to the extent expressly disclosed to the contrary therein.

	15.1.23.2	 	The Original Financial Statements fairly represent the Obligor’s financial condition and
operations (consolidated in the case of the Group) during the relevant financial period,
unless expressly disclosed to the contrary therein.

	15.1.23.3	 	There has been no material adverse change in the business, operations, prospects or
financial condition of any of the Obligors (or the business or consolidated financial
condition of the Group) since the Signature Date.

 

Page 46

	15.1.23.4	 	Upon the Original Financial Statements being audited by the Auditors, there shall be no
material changes thereto, and same shall not be qualified adversely by the Auditors or in any
material respect more severely than to the extent disclosed in the Original Financial
Statements as at the Signature Date.

	15.1.24	 	Financial Statements and Budgets

	15.1.24.1	 	The most recent financial statements delivered pursuant to clause 16.1 (Financial
Statements) have been prepared in accordance with IFRS as applied to the Original Financial
Statements and give a true and fair view of (if audited) or fairly present (if unaudited) the
Group’s consolidated financial condition and each Obligor’s financial condition as at the end
of, and consolidated results of operations for, the period to which they relate.
	 
	15.1.24.2	 	The most recent management accounts delivered pursuant to clause 16.2 (Management
Accounts) fairly present the Group’s consolidated financial position and consolidated results
of operations, for the period to which they relate.
	 
	15.1.24.3	 	The budgets and forecasts supplied under this Agreement were arrived at after careful
consideration and have been prepared in good faith on the basis of recent historical
information and on the basis of assumptions which were reasonable as at the date they were
prepared and supplied.
	 
	15.1.24.4	 	Since the date of the most recent financial statements delivered pursuant to clause 16.1
(Financial Statements) and the most recent management accounts delivered pursuant to clause
16.2 (Management Accounts) there has been no Material Adverse Change in the business, assets
or financial condition of the Group.

 

Page 47

	15.1.25	 	Insurance

	 	 	It maintains insurances on and in relation to its business and assets against
those risks and to the extent as is usual for companies in South Africa carrying
on substantially similar business in South Africa.

	15.1.26	 	Assets and Intellectual Property Rights

	15.1.26.1	 	It has good title to or valid leases or licenses over all of the assets necessary and
material to carry on its business.

	15.1.26.2	 	It owns or has the legal right to use all the Intellectual Property Rights which are
material to the conduct of the business of the Group taken as a whole, or are required by it
in order for it to carry on its business and, as far as it is aware, it will not nor will any
of its subsidiaries, in carrying on its business, infringe any Intellectual Property Rights of
any third party in any way which is likely to result in a Material Adverse Change.

	15.1.26.3	 	None of the Intellectual Property Rights which are material in the context of its
business are, to its knowledge, being infringed nor, to its knowledge, is there any threatened
infringement of those Intellectual Property Rights, by any third party which in any such case
is likely to result in a Material Adverse Change.

	15.1.26.4	 	All registered Intellectual Property Rights owned by it (or any subsidiary of it) and
which are material to the conduct of its business are subsisting, and all actions (including
payment of all fees) required to maintain the same in full force and effect have been taken.

 

Page 48

	15.1.27	 	Pari Passu Ranking

	 	 	Its payment obligations under the Finance Documents to which it is a party rank
at least pari passu with the claims of all its other unsecured and
unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.

	15.1.28	 	Security Interest

	15.1.28.1	 	Subject in each case to any registration specifically required by law:

	15.1.28.1.1	 	each Security Document validly creates the security interest which is expressed to be
created by that Security Document; and

	15.1.28.1.2	 	the Transaction Security created by each Security Document:

	15.1.28.1.2.1	 	ranks and will rank, in respect of all other security interests granted or to be
granted by any Obligor in favour of any person other than the Finance Parties, in the order of
priority it is expressed to rank in the relevant Security Document; and

	15.1.28.1.2.2	 	is not subject to avoidance in the event of any winding-up, dissolution or
administration involving any Obligor.

	15.1.28.2	 	Other than any assets which are either the subject of a Permitted Encumbrance or which
are leased by the relevant Obligor, it is the sole, absolute, legal and, where applicable,
beneficial owner of all assets made subject to the Transaction Security created by each
Security Document.

 

Page 49

	15.1.29	 	No Material Industrial Action

	 	 	No industrial or similar action has been started or threatened against it which
is likely to result in a Material Adverse Change on its ability or the ability
of it to perform its obligations under the Finance Documents to which it is a
Party.

	15.1.30	 	Immunity from Suit

	15.1.30.1	 	In any proceedings taken against it in South Africa in relation to the Finance Documents
to which it is a party, it will not be entitled to claim for itself or any of its assets
immunity from suit, execution, attachment or other legal process.

	15.1.30.2	 	The execution of the Finance Documents to which it is a party constitutes, and its
exercise of its rights and performance of its obligations thereunder will constitute, private
and commercial acts done and performed for private and commercial purposes.

	15.2	 	Each of the warranties given by each of the Obligors in terms of clause 15.1 shall:

	15.2.1	 	prima facie be deemed to be a representation or fact inducing the Finance Parties to enter
into the Finance Documents;

	15.2.2	 	be presumed to be material unless the contrary is proved;

	15.2.3	 	insofar as any of the warranties is promissory or relates to a future event, be deemed to
have been given as at the due date for fulfilment of the promise or for the happening of the
event, as the case may be; and

	15.2.4	 	be a separate warranty and in no way be limited or restricted by reference to or inference
from the terms of any other warranty.

 

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	15.3	 	The Finance Parties are entering into this Agreement relying upon the warranties given by the
Borrower in clause 15.1.

	16.	 	FINANCIAL INFORMATION

	16.1	 	Financial Statements

	16.1.1	 	The Borrower shall:

	16.1.1.1	 	as soon as the same become available, but in any event within 120 (one hundred and twenty)
days after the end of each Financial Year during the Term, deliver to the Facility Agent the
consolidated audited annual financial statements of the Group for such Financial Year;

	16.1.1.2	 	as soon as the same become available, but in any event within 150 (one hundred and fifty)
days after the end of each Financial Year during the Term, deliver to the Facility Agent the
audited annual financial statements of each Guarantor for such Financial Year;

	16.1.1.3	 	as soon as the same become available, but in any event within 60 (sixty) days after the
end of each quarter of each Financial Year during the Term, deliver to the Facility Agent the
consolidated interim quarterly financial statements of the Group (in the form as provided to
the Borrower’s shareholders) for such period.

	16.1.1.4	 	from time to time on the written request of the Facility Agent, furnish the Facility Agent
with such information about the business and financial condition of the Group and/or of each
Obligor as the Facility Agent may reasonably require.

	16.1.2	 	The Borrower shall ensure that:

 

 Page 51 

	16.1.2.1	 	each set of financial statements delivered by it pursuant to
clause 16.1 is prepared on the
same basis as was used in the preparation of the Original Financial Statements and in
accordance with IFRS;

	16.1.2.2	 	each set of financial statements delivered by it pursuant to
this clause 16 is certified by
a duly authorised officer of the Borrower as giving a true and fair view of the financial
condition of the Group (and each Obligor) as at the end of the period to which those financial
statements relate and of the result of its operations during such period; and

	16.1.2.3	 	each set of financial statements delivered by it pursuant to
clause 16.1.1.1 has been audited by
the Auditors.

	16.2	 	Management Accounts

	 	 	The Borrower shall deliver to the Facility Agent as soon as the same become available,
but in any event within 30 (thirty) days after the end of each calendar month of each
Financial Year the consolidated unaudited monthly management accounts of the Group for
that period.

	16.3	 	Compliance Certificate

	16.3.1	 	The Borrower shall deliver to the Facility Agent with each set of financial statements
delivered pursuant to clause 16.1 (Financial Statement), a Compliance Certificate setting out (in
reasonable detail) computations as to compliance with clause 19 (Financial Covenant) as at the
Ratio Test Date; and

	16.3.2	 	Each Compliance Certificate shall be signed by the chief financial officer or the financial
director of the Borrower.

 

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	16.4	 	Board Packs

	 	 	The Borrower shall deliver to the Facility Agent (in sufficient copies for all Lenders
if the Facility Agent so requests under clause 16.10 (Delivery of Information)) copies of
the packs prepared for the meetings of the board of directors of the Group for each
quarter together with the draft minutes of the previous meeting of the board of
directors, within 3 (three) Business Days of publication of the quarterly financial
statements of the Group for such quarter.

	16.5	 	Requirements as to Financial Statements

	16.5.1	 	Each set of financial statements delivered pursuant to clause
clause 16.1 (Financial
Statements) shall be certified by the Group Managing Director or the Group Financial Director
of the Borrower as fairly representing its financial condition as at the date as at which
those financial statements were drawn up.

	16.5.2	 	The Borrower shall procure that each set of financial statements delivered pursuant to
clause 16.1 (Financial Statements) is prepared in accordance with the IFRS, the requirements of
the Companies Act and accounting practises and financial reference periods as promulgated by
the Accounting Practices Board consistent with those applied in the preparation of
the Original Financial Statements.

	16.5.3	 	Clause 16.5.2 shall not apply to the extent that, in relation to any sets of financial
statements, the Borrower notifies the Facility Agent that there has been a change in IFRS or
the accounting practices or reference periods and the Auditors (in the case of its annual
audited financial statements) or the Borrower (in the case of any of its other financial
statements) delivers to the Facility Agent:

 

 Page 53 

	16.5.3.1	 	a description of any change necessary for those financial statements to reflect IFRS,
accounting practices and reference periods upon which the Original Financial Statements were
prepared; and
	 
	16.5.3.2	 	sufficient information, in form and substance as may be reasonably required by the
Facility Agent to enable the Facility Agent to determine whether
clause 19 (Financial Covenant)
has been complied with and make an accurate comparison between the financial position
indicated in those financial statements and the Original Financial Statements.

	16.5.4	 	If the Borrower notifies the Facility Agent of a change in
accordance with clause 16.5.3, then
the Borrower and Facility Agent shall enter into negotiations in good faith with a view to
agreeing:

	16.5.4.1	 	whether or not the change might result in material alteration in the commercial effect of
any of the terms of this Agreement or any other Finance Document; and
	 
	16.5.4.2	 	if so, any amendments to this Agreement or any other Finance Document which may be
necessary to ensure that the change does not result in any material alteration in the
commercial effect of those terms,

	 	 	and if any amendments are agreed they shall take effect and be binding on each
of the Parties in accordance with their terms.

	16.5.5	 	Any reference in this Agreement to “financial statements” shall be construed as a reference
to those financial statements as the same may be adjusted under this
clause 16.5 to reflect the
basis upon which the Original Financial Statements were prepared.

 

 Page 54 

	16.6	 	Requirements as to Management Accounts

	 	 	The monthly management accounts to be delivered pursuant to
clause 16.2 (Management
Accounts) shall be in the form of and contain the information contemplated in Schedule
12 (Pro Forma Management Account).

	16.7	 	Access to Records

	 	 	If a Default is continuing or the Facility Agent reasonably suspects that a Default is
continuing or may occur, each Obligor shall, and the Borrower shall ensure that each
Obligor will, permit the Facility Agent or any of its representatives and professional
advisors free access at all reasonable times and on reasonable notice (at the
Borrower’s cost and expense) to that Obligor’s premises, records, accounts (including
its general ledger), books and assets as that person may require at reasonable times
and upon reasonable notice.

	16.8	 	Information: Miscellaneous

	 	 	The Borrower shall supply to the Facility Agent (in sufficient copies for all Lenders
if the Facility Agent so requests under clause 16.10 (Delivery of Information):

	16.8.1	 	at the same time as they are despatched, copies of all documents despatched by any Obligor
to its shareholders generally (or any class of
them) or despatched by any Obligor to its creditors generally (or any class of
them);
	 
	16.8.2	 	promptly upon becoming aware of them, the details of any litigation, arbitration or
administrative proceedings which are current, threatened or pending against any Obligor which,
if adversely determined against it, would be reasonably likely to have a Material Adverse
Change;

 

 Page 55 

	16.8.3	 	promptly, such further information (including an extract of its general ledger) regarding
the financial condition, business and operations of any Group Company as the Facility Agent
may reasonably request; and
	 
	16.8.4	 	promptly upon it becoming aware of any transfer of shares in any Group Company (not being a
publicly listed entity) and of any change in the beneficial ownership of any Group Company
(not being a publicly listed entity) affecting the Control of that Group Company, provide
details thereof and an updated list of all the shareholders of any Group Company (not being a
publicly listed entity).

	16.9	 	Notification of Default

	16.9.1	 	The Borrower shall notify the Facility Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of its occurrence.
	 
	16.9.2	 	Promptly upon a request by the Facility Agent, the Borrower shall supply to the Facility
Agent a certificate signed by the chief financial officer or the financial director of the
Borrower certifying that no Default is continuing (or if a Default is continuing specifying
the Default and the steps, if any, being taken to remedy it).

	16.10	 	Delivery of Information

	16.10.1	 	Without prejudice to clause 31 (Notices and Domicilia), any documents to be delivered under
this clause 16 may be delivered by the Borrower to the Facility Agent (and by the Facility
Agent to the Lenders) by e-mail where the Facility Agent has expressly agreed, by written
notice to the Borrower, to receive such documents by e-mail and has informed the Borrower of
an e-mail address pursuant to clause 31 (Notices and Domicilia), provided that, for this
purpose, any such notification shall also be followed-up by telefax; or

 

 Page 56 

	16.10.2	 	If a Finance Party requests delivery to it of a paper copy of any document to be delivered
by the Borrower under this clause 16 in place of an electronic copy of such document, it shall
notify the Borrower accordingly. The Facility Agent shall request the Borrower in writing to
provide such paper copies promptly upon receipt of any such notice and the Borrower shall be
obliged promptly to do so.

	17.	 	POSITIVE UNDERTAKINGS

	 	 	Each Obligor hereby each agrees and undertakes, until the Facility Outstandings has been
repaid in full, that it shall:

	17.1	 	Authorisations

	 	 	Obtain, comply with the terms of and do all that is necessary to maintain in full force
and effect all authorisations, approvals, licences and consents required in or by the
laws and regulations of South Africa to enable it lawfully to undertake its business
and to enter into and perform its obligations under the Finance Documents to which it
is a party or to ensure the legality, validity, enforceability or admissibility in
evidence in South Africa of the Finance Documents to which it is a party;

	17.2	 	Compliance with Laws
	 
	 	 	Comply in all material respects with all laws to which it may be subject, and obtain
and comply with all permits and licenses, in each case, to the extent the same are
material to its business.

 

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	17.3	 	Material Adverse Change

	 	 	Promptly inform the Facility Agent in writing of the occurrence of any Default
forthwith upon becoming aware thereof and from time to time, if so requested by the
Facility Agent in writing, confirm to the Facility Agent in writing that, save as
previously notified to the Facility Agent or as notified in such confirmation, no such
Material Adverse Change has occurred and/or is continuing.

	17.4	 	Representations and Warranties

	 	 	Notify the Facility Agent of the occurrence of any event which results in or may
reasonably be expected to result in any of the representations and warranties contained
in clause 15 (Warranties and Representations) being untrue;

	17.5	 	Insurance

	 	 	Maintain insurances on and in relation to its business and assets with reputable
underwriters or insurance companies against those risks and to the extent as is usual
for companies carrying on the same or substantially similar business.

	17.6	 	Pari Passu Ranking

	 	 	Ensure that at all times the claims of the Finance Parties against it under the Finance
Documents to which it is a party rank at least pari passu with the claims of all its
other unsecured creditors save those whose claims are preferred by any bankruptcy,
insolvency, liquidation or other similar laws of general application.

	17.7	 	Environmental Compliance

	 	 	Comply in all material respects with all Environmental Law and obtain and maintain any
Environmental Permits and take all reasonable steps in anticipation

 

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	 	 	of known or published future changes to or obligations under the same, if failure to do so would
reasonably be expected to result in a Material Adverse Change.

	17.8	 	Environmental Claims

	 	 	Inform the Facility Agent in writing as soon as reasonably practicable upon becoming
aware of the same:

	17.8.1	 	if any Environmental Claim has been commenced or (to the best of that Obligor’s knowledge
and belief) is threatened against any member of the Group; or
	 
	17.8.2	 	of any facts or circumstances which will or are reasonably likely to result in any
Environmental Claim being commenced or threatened against any member of the Group,

	 	 	where the claim would, if adversely determined, be reasonably likely to result in a
Material Adverse Change.

	17.9	 	Default

	 	 	At any time after the occurrence of a Default and for so long as it is continuing, upon
the written request of the Facility Agent with reasonable prior notice, permit
representatives of the Finance Parties during normal office hours, to visit and inspect
any of the premises where its business is conducted, to have access to (and copies of)
accounts and records and shall afford reasonable co-operation at all times to the
Finance Parties and such representatives.

	18.	 	NEGATIVE UNDERTAKINGS

	 	 	The Obligors hereby agrees and undertakes that, until the Facility Outstandings has been
repaid in full none of the Obligors shall, without the prior written consent of the Facility
Agent:

 

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	18.1	 	Financial Indebtedness

	18.1.1	 	Assume, incur or permit to have outstanding any Financial Indebtedness other than Permitted
Indebtedness.

	18.1.2	 	Release or waive any indebtedness owed to it by any Related Party other than for valuable
market consideration.

	18.2	 	Loans and Credit

	 	 	Make any loans, grant any credit (save in the ordinary course of business) or give any
guarantee or indemnity (except as required hereby) to or for the benefit of any person
or otherwise voluntarily assume any liability, whether actual or contingent, in respect
of any obligation of any other person (collectively, “Credit”) other than:

	18.2.1	 	Credit existing at the Signature Date and disclosed in the Original Financial Statements;
	 
	18.2.2	 	Permitted Loans;
	 
	18.2.3	 	any guarantee or indemnity given in respect of Permitted Indebtedness;
	 
	18.2.4	 	Credit granted to any Obligor;
	 
	18.2.5	 	Credit granted for application to the Hidden Valley Project.

	18.3	 	Disposals
	 
	 	 	Enter into a single transaction or a series of transactions (whether related or not)
and whether voluntarily or involuntarily to Dispose of any assets other than pursuant
to a Permitted Disposal.

 

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	18.4	 	Distributions
	 
	 	 	The Borrower shall not pay, make or declare, or resolve to pay, make or declare, any
Distribution.
	 
	18.5	 	Negative Pledge

	18.5.1	 	Save as contemplated by the Finance Documents, not create or permit to subsist any
Encumbrance over any of its assets.
	 
	18.5.2	 	Save as contemplated by the Finance Documents, not:

	18.5.2.1	 	sell, transfer or otherwise dispose of any of its assets to any person who is not an
Obligor on terms whereby they are or may be leased to or re-acquired by it or by any other
Group Company;
	 
	18.5.2.2	 	sell, transfer or otherwise dispose of any of its receivables on recourse terms;
	 
	18.5.2.3	 	enter into any arrangement under which money or the benefit of a bank or other account may
be applied, set-off or made subject to a combination of accounts; or
	 
	18.5.2.4	 	enter into any other preferential arrangement having a similar effect,

	 	 	in circumstances where the arrangement or transaction is entered into primarily
as a method of raising Financial Indebtedness or of financing the acquisition of
an asset.
	 
	18.5.3	 	Clauses 18.5.1 and 18.5.2 and do not apply to Permitted Encumbrances or to Permitted Disposals.

 

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	18.6	 	Acquisitions
	 
	 	 	Not acquire a company or any shares or securities or a business or undertaking (or, in
each case, any interest in any of them), unless acquired in consideration (in whole or
part) for a Permitted Disposal as Share Consideration.

	19.	 	FINANCIAL COVENANT

	19.1	 	The Borrower shall ensure that the consolidated financial condition of the Group, as
evidenced by the Group’s then most recent audited annual or unaudited quarterly interim
consolidated financial statements (adjusted, as the Facility Agent may, acting reasonably,
consider appropriate, to take account of any changes in circumstances which occur after the
date as of which such consolidated financial statements were prepared) shall be such that the
Interest Cover Ratio shall not be less than 3 (three) times.
	 
	19.2	 	In this clause 19:

	19.2.1	 	“Borrowed Money” means of any person, without duplication:

	19.2.1.1	 	all Indebtedness of such person for borrowed money;

	19.2.1.2	 	all Indebtedness of such person under acceptance or documentary credit facilities;
	 
	19.2.1.3	 	all Indebtedness of such person in respect of receivables sold or discounted (otherwise
than on a non-recourse basis);
	 
	19.2.1.4	 	all Indebtedness of such person evidenced by bonds, debentures, notes or other similar
instruments;
	 
	19.2.1.5	 	all Indebtedness of such person to pay the deferred purchase price of property or services
if deferred for more than 60 (sixty) days or 

 

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	 	 	where such deferred amount is primarily designed
to raise finance, except, in any case, trade accounts payable arising in the ordinary course
of business;
	 
	19.2.1.6	 	all Indebtedness of such person under any arrangements (including hire purchase and
conditional sale agreements) treated as finance leases under IFRS;
	 
	19.2.1.7	 	all Indebtedness of such person in connection with any Derivatives Transaction and so that
the amount of such Indebtedness shall be calculated on a marked-to-market basis;
	 
	19.2.1.8	 	all Indebtedness of such person under any repurchase agreement, put options, call options
or other transactions of any kind (whether or not recognised as borrowing under IFRS) which
have the commercial effect of a borrowing or obtaining of credit;
	 
	19.2.1.9	 	all obligations of such person under redeemable preference shares or equivalent equity;
and
	 
	19.2.1.10	 	all Indebtedness of others falling within clauses 19.2.1.1 to
19.2.1.9 above which is guaranteed by
such person;

	19.2.2	 	“Derivative Transaction” means a contract, agreement or transaction which is a rate swap,
basis swap, forward rate transaction, bond option, interest rate option, cap, collar or floor,
or any other similar transaction and/or any combination of such transaction, in each case,
whether on-exchange or otherwise;
	 
	19.2.3	 	“EBITDA” means, in respect of any person, and any period, the consolidated operating profit
before income tax for such period:

 

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	19.2.3.1	 	(to the extent not already excluded) before interest received or receivable and interest
paid or payable;
	 
	19.2.3.2	 	(to the extent not already excluded) adjusted to exclude any gain or loss realised on the
disposal of fixed assets (whether tangible or intangible);
	 
	19.2.3.3	 	(to the extent not already excluded) before deducting any extraordinary costs and before
including extraordinary income;
	 
	19.2.3.4	 	adding back depreciation, amortisation and impairments to the extent already deducted; and
	 
	19.2.3.5	 	plus dividends received in cash from companies consolidated by the equity method to the
extent not already taken into account;

	19.2.4	 	“Interest Cover Ratio” means, in respect of any Ratio Test Period:

	19.2.4.1	 	EBITDA;
	 
	19.2.4.2	 	divided by Total Interest.

	19.2.5	 	“Total Interest” means, in respect of any period, the aggregate accruing during such period
(without duplication and whether or not paid or payable within such period) of, in respect of
the Group on a consolidated
basis (and whether or not the principal or capital obligation by reference to
which any of the following are determined is an obligation of the Group:

	19.2.5.1	 	all interest, acceptance commission, guarantee fees and any other continuing, regular or
periodic costs and expenses in the nature of interest (whether paid, payable or capitalised)
incurred in effecting, servicing or maintaining Borrowed Money;

 

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	19.2.5.2	 	amounts payable (as reduced by amounts receivable) in respect of any Derivatives
Transaction which is an interest rate hedging arrangement entered into to hedge risks arising
in the normal course of business;
	 
	19.2.5.3	 	amounts payable in respect of the R1 700 000 000 (one billion seven hundred million Rand)
4,875% (four comma eight seven five percent) convertible bonds (due 2009) issued by the
Borrower;
	 
	19.2.5.4	 	the interest element of, and ancillary fees payable under, any finance leases.

	19.3	 	All expressions used in the definitions of this clause 19 which are not otherwise defined
herein shall be construed in accordance with IFRS.

	20.	 	EVENTS OF DEFAULT

	20.1	 	Events of Default
	 
	 	 	Each of the events set out in this clause 20.1 is an Event of Default (whether or not
caused by any reason whatsoever outside the control of the Borrower or any other
person).

	20.1.1	 	Non-Payment
	 
	 	 	The Borrower fails to pay any sum due from it hereunder at the time, in the
currency and in the manner specified herein, unless:

	20.1.1.1	 	its failure to pay is caused by an administrative or technical error; and
	 
	20.1.1.2	 	payment is made within 2 (two) Business Days of its due date.

 

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	20.1.2	 	Financial Covenant
	 
	 	 	Any requirement of clause 19 (Financial Covenant) is not satisfied.
	 
	20.1.3	 	Other Obligations
	 
	 	 	Subject to clause 20.2 (Remedy), an Obligor does not comply with any of its
obligations when performance is due under the Finance Documents (other than
those referred to in clause 20.1.1 (Non-Payment), clause
20.1.2 (Financial Covenant) and
clause 20.1.4 (Security)).
	 
	20.1.4	 	Security
	 
	 	 	Any Obligor fails to perform or comply with any of the obligations assumed by it
in a Security Document to which it is a party.
	 
	20.1.5	 	Misrepresentation
	 
	 	 	Any representation or statement made or deemed to be made by any Obligor in the
Finance Documents or any other document delivered by or on behalf of any Obligor
under or in connection with any Finance Document is or proved to have been
incorrect or misleading when made or deemed to be made.
	 
	20.1.6	 	Insolvency

	20.1.6.1	 	Any Obligor is unable to pay its debts as they fall due, commences negotiations with any
one or more of its creditors with a view to the general readjustment or rescheduling of its
Indebtedness or makes a general assignment for the benefit of or a composition, or compromise
with its creditors.

 

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	20.1.6.2	 	Any Obligor takes any corporate action or other steps are taken or legal proceedings are
started by that Obligor for its winding-up (whether provisional or final), dissolution or
administration or for the appointment of a liquidator, receiver, administrator, administrative
receiver, trustee or similar officer of it or of any or all of its revenues and assets.
	 
	20.1.6.3	 	Any execution is levied against, or an encumbrancer takes possession of the whole or any
part of, the property, undertaking or assets of any Obligor and Obligor fails within 10 (ten)
Business Days after becoming aware, or after it should reasonably have become aware, of such
execution, and/or possession, as the case may be, to take the necessary steps to have such
execution, and/or possession, as the case may be, set aside and thereafter successfully pursue
such steps with due diligence.
	 
	20.1.6.4	 	Any Obligor commits an act defined in terms of Section 344 of the Companies Act.

	20.1.7	 	Insolvency Proceedings
	 
	 	 	Any corporate action, legal proceedings or other similar procedure or steps are
taken in relation to:

	20.1.7.1	 	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution or
administration (by way of voluntary arrangement, scheme of arrangement or otherwise) of any
Obligor other than (in respect of any service of an application, or taking of any similar step
for the liquidation, bankruptcy, judicial management, winding-up, dissolution or
administration of the Obligor) where such action is dismissed, withdrawn or discharged within
5 (five) Business Days of its presentation or such step being taken (or, if the Obligor
demonstrates to the Facility Agent’s

 

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	 	 	satisfaction within such 5 (five) Business Days period
that such action is frivolous or vexatious (by way of an opinion by a Senior Counsel of at
least 10 (ten) years standing, that the relevant Obligor has a reasonable prospect of
defending that action));

	20.1.7.2	 	a composition, compromise, assignment or arrangement with the creditors of any Obligor;
	 
	20.1.7.3	 	the appointment of a liquidator, receiver, administrator, administrative receiver,
judicial manager, compulsory manager or other similar officer in respect of any Obligor or any
of its assets; or
	 
	20.1.7.4	 	enforcement of any security interest over any assets of any
Obligor, or any analogous procedure or step is taken in any jurisdiction.

	20.1.8	 	Failure to comply with Final Judgement
	 
	 	 	Any Obligor fails within 10 (ten) Business Days of the due date to comply with
or pay any sum due from it under any final judgement or any final order made or
given by any court of competent jurisdiction.
	 
	20.1.9	 	Cessation of Business

	20.1.9.1	 	Any Obligor suspends, is unable to or ceases for any reason whatsoever to conduct its
normal line of business in the ordinary and regular manner.
	 
	20.1.9.2	 	Any Obligor sells, transfers or otherwise disposes of in any one transaction or a series
of transactions (whether or not related), a material portion of its business or changes its
asset structure and as a result of the disposal, it would in the reasonable opinion of the

 

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	 	 	Facility Agent be unable to perform or observe its obligations under any Finance Document to
which it is a party.

	20.1.10	 	Cross-Default

	20.1.10.1	 	Any indebtedness of any Obligor is not paid when due nor within any originally applicable
grace period.
	 
	20.1.10.2	 	Any indebtedness of any Obligor is declared to be or otherwise becomes due and payable
prior to a specified maturity as a result of an event of default (however described).
	 
	20.1.10.3	 	Any commitment for any indebtedness of any Obligor is cancelled or suspended by a
creditor of that Obligor as a result of an event of default (however described).
	 
	20.1.10.4	 	Any creditor of any Obligor becomes entitled to declare any indebtedness of any Obligor
due and payable prior to its specified maturity as a result of an event of default (however
described).

	20.1.11	 	Acquisition of Control
	 
	 	 	Any acquisition of Control of any Obligor by any person.
	 
	20.1.12	 	Governmental Intervention
	 
	 	 	By or under the authority of any government:

	20.1.12.1	 	the management of any Obligor is wholly or substantially replaced or the authority of any
Obligor in the conduct of its business is wholly or substantially curtailed; or

 

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	20.1.12.2	 	all or a majority of the issued shares of any Obligor, or the whole or any part of its
revenues or assets is seized, nationalised, expropriated or compulsorily acquired.

	20.1.13	 	Repudiation
	 
	 	 	Any Obligor repudiates any Finance Document to which it is a party.
	 
	20.1.14	 	Failure to Maintain Authorisations
	 
	 	 	At any time any Authorisation, act, condition or thing required to be done,
fulfilled or performed in order:

	20.1.14.1	 	to enable any Obligor lawfully conduct its business, or to enter into, exercise its
rights under and perform the obligations expressed to be assumed by it in any Finance Document
to which it is a party;
	 
	20.1.14.2	 	to ensure that the obligations expressed to be assumed by any Obligor in any Finance
Document to which it is a party are legal, valid and binding; or
	 
	20.1.14.3	 	to make any Finance Document to which any Obligor is a party admissible in evidence in
South Africa,

	 	 	is not done, fulfilled or performed.
	 
	20.1.15	 	Unlawfulness

	 	 	It is or becomes unlawful for any Obligor to perform any of its obligations
under the Finance Documents to which it is a party other than any obligations
which the Facility Agent considers to be not material or which it is satisfied
is adequately provided for in any other Finance Document (including a Finance
Document which is entered into in replacement of the

   

 

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	 	 	document under which it was unlawful for such Obligor to perform its
obligations) or unless the Obligor and the Facility Agent agree within a period
of 30 (thirty) days after the occurrence of such unlawfulness or such
unlawfulness comes to the attention of the Facility Agent, whichever is the
earlier, to the amendment or restructuring of such Finance Document in order to
avoid such unlawfulness.

	20.1.16	 	Material Adverse Change

	 	 	Any event (or any series of events) or circumstances occurs (or any existing
circumstance continued) which is likely to result in a Material Adverse Change.

	20.2	 	Remedy

	20.2.1	 	No Event of Default under clause 20.1 (Events of Default) (other than those referred to in
clauses 20.1.1 (Non-Payment), 20.1.2 (Financial Covenant) and 20.1.4 (Security)) will occur
if the failure to comply or circumstance giving rise to the same is capable of remedy and is
remedied within 10 (ten) Business Days, or such further period as the Lenders may agree, of
the Lenders giving notice to the Borrower or any Obligor becoming aware of the failure to
comply.

	20.2.2	 	For the purposes of clause 20.2.1, the events or circumstances referred to in clause 20.1.6
(Insolvency), clause 20.1.8 (Failure to comply with Final Judgement), clause 20.1.9 (Cessation
of Business), clause 20.1.12 (Governmental Intervention), clause 20.1.15 (Unlawfulness) and
clause 20.1.16 (Material Adverse Change) shall be deemed to be incapable of remedy save to the
extent set out therein.

 

 

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	20.3	 	Acceleration
	 
	 	 	If any Event of Default occurs which is continuing, the Facility Agent shall be
entitled, in its sole discretion and without prejudice to any other rights or remedies
which the Lenders may have under any of the Finance Documents or otherwise in terms of
South African law, by written notice to the Borrower:

	20.3.1	 	to claim immediate payment of all Facility Outstandings (including but not limited to
capital and interest and amounts in respect of duties, fees and charges owing by the Borrower
to the Lenders under the Finance Documents) regardless of whether or not such amounts are then
otherwise due and payable, all of which amounts shall, upon the delivery of such a notice,
immediately become due and payable; and/or

	20.3.2	 	to declare the Facility Outstandings to be due and payable upon demand; and/or

	20.3.3	 	demand and be entitled to receive specific performance of the relevant obligation of the
Finance Documents (if any) breached by the Obligor; and/or

	20.3.4	 	take all steps which it regards as desirable in order to enforce, or perfect the security
interest created or evidenced by any one or more Security Document; and/or

	20.3.5	 	cancel the whole or part of the Facility; and/or

	20.3.6	 	claim payment from the Borrower of any and all Breakage Costs, damages, costs and other
amounts incurred directly as a result of such Event of Default less the amount of any Breakage
Gains.

	20.4	 	If pursuant to clause 20.3.2 the Facility Agent declares the Facility Outstandings to be due
and payable on demand of the Facility Agent then, and at any time

 

 

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	 	 	thereafter, the Facility
Agent may by written notice to the Borrower call for repayment of the Facility Outstandings
mutatis mutandis in accordance with clause 20.3 on such date as it may specify in such notice
(whereupon the same shall become due and payable on such date), or withdraw its declaration with effect
from such date as it may specify in such notice.

	21.	 	TAXES

	21.1	 	All payments to be made by the Borrower to the Finance Parties hereunder shall be made free
and clear of and without deduction for or on account of tax unless the Borrower is required to
make such a payment subject to the deduction or withholding of tax, in which case the sum
payable by the Borrower in respect of which such deduction or withholdings is required to be
made shall be increased to the extent necessary to ensure that, after the making of the
required deduction or withholding, each Finance Party receives and retains (free from any
liability in respect of any such deduction or withholding) a net sum equal to the sum which it
would have received and so retained had no such deduction or withholding been made or required
to be made.
	 
	21.2	 	Without prejudice to the provisions of clause 21.1, if any Finance Party is required to make
any payment on account of tax (not being a tax imposed on the net income of the Finance Party
by the jurisdiction in which it is incorporated) or otherwise on or in relation to any sum
received or receivable by it hereunder (including, without limitation, any sum received or
receivable under this clause 21) or any liability in respect of any such payment is asserted,
imposed, levied or assessed against any Finance Party, the Borrower shall, upon demand,
promptly indemnify the Finance Party against such payment or liability, together with any
interest, penalties and expenses payable or incurred in connection therewith; save that in
respect of any Lenders acceding into this Agreement, such indemnity shall only apply to the
extent that the Borrower would have had to indemnify the Original Lender in respect thereof if
it were that Lender.

 

 

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	21.3	 	If any Finance Party intends to make a claim pursuant to clause 21.2, it shall notify the
Borrower of the event by reason of which it is entitled to make such claim; provided that
nothing herein shall require the Finance Party to disclose any confidential information
relating to the organisation of its affairs.
	 
	21.4	 	The liability of the Borrower to any Finance Party in terms of this clause 21 will be reduced
by any tax credit granted to the Finance Party in respect of the tax liabilities referred to
in this clause 21. The Finance Parties undertake to diligently pursue the granting of any
such tax credits; provided that, if in the opinion of the Finance Parties they will not be
successful in obtaining such tax credits, the Facility Agent will be obliged, on written
request by the Borrower to obtain an opinion, at the Borrower’s cost by Senior Counsel of at
least 10 (ten) years’ standing regarding whether there is a reasonable prospect of success in
any such proceedings. In the event that the aforesaid Senior Counsel’s opinion states that
there is a reasonable prospect of success the Finance Parties shall be obliged to pursue the
granting of such tax credits. The Borrower hereby indemnifies and holds the Finance Parties
harmless against, and shall on written demand pay to the Finance Parties, all reasonable costs
incurred by them in pursuing the granting of such tax credits.

	22.	 	TAX RECEIPTS

	22.1	 	If, at any time, the Borrower is required by law to make any deduction or withholding from
any sum payable by it hereunder (or if thereafter there is any change in the rates at which or
the manner in which such deductions or withholdings are calculated), the Borrower shall
promptly notify the Facility Agent.

	22.2	 	If the Borrower makes any payment hereunder in respect of which it is required to make any
deduction or withholding, it shall pay the full amount required to be deducted or withheld to
the relevant taxation or other authority within the time allowed for such payment under
applicable law and shall deliver to the Facility

 

 

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	 	 	Agent, within 30 (thirty) days after it has
made such payment to the applicable authority, an original receipt (or a certified copy
thereof) issued by such authority evidencing the payment to such authority of all amounts so
required to be deducted or withheld in respect of such payment.

	23.	 	INCREASED COSTS

	23.1	 	If, by reason of any change in law or in its interpretation or administration and/or
compliance with any request from or requirement of any central bank or other fiscal, monetary
or other authority applying to banks generally in South Africa (including, without limitation,
a request or requirement which affects the manner in which the Lenders or any holding company
of any Lender is required to or does maintain capital resources having regard to such Lender’s
obligations hereunder and to amounts owing to it hereunder):

	23.1.1	 	a Lender or any holding company of a Lender incurs a cost as a result of that Lender having
entered into and/or performing its obligations under this Agreement and/or assuming or
maintaining a commitment under this Agreement and/or advancing the Facility; and/or

	23.1.2	 	a Lender or any holding company of a Lender is unable to obtain the rate of return on its
overall capital which it would have been able to obtain but for that Lender having entered
into and/or performing its obligations and/or assuming or maintaining a commitment under this
Agreement; and/or

	23.1.3	 	there is any increase in the cost to a Lender or any holding company of a Lender of funding
or maintaining the Loan; and/or

	23.1.4	 	a Lender or any holding company of a Lender becomes liable to make any payment on account of
tax or otherwise (not being a tax imposed on the net income of that Lender by the jurisdiction
in which it is incorporated and being a tax applying to banks generally in South Africa) on or

 

 

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	 	 	calculated by reference to the Advance and/or to any sum received or receivable by it
hereunder,

	 	 	then the Borrower shall, from time to time on demand of the Facility Agent, promptly
pay, or shall procure that one or more Obligors pay, to the Facility Agent for the
account of that Lender amounts sufficient to indemnify it or any such holding company
against, as the case may be:

	23.1.5	 	such cost; or

	23.1.6	 	such reduction in such rate of return (or proportion of such reduction as is attributable to
its obligations hereunder); or

	23.1.7	 	such increased cost (or such proportion of such increased cost as is attributable to its
funding or maintaining the Loan); or

	23.1.8	 	such liability.

	23.2	 	If any Lender intends to make a claim pursuant to clause 23.1, it shall notify the Facility
Agent in writing of the event by reason of which it is entitled to do so and confirming the
amount of its claim; provided that nothing herein shall require that Lender to disclose any
confidential information relating to the organisation of its affairs. Promptly upon receipt
of any notice referred to in this clause 23.2, the Facility Agent shall deliver such notice to
the Borrower.

	24.	 	CERTIFICATE OF INDEBTEDNESS

	 	 	A certificate signed by any director or manager of the Facility Agent (whose appointment need
not be proved) as to the existence of and the amount of Indebtedness by the Borrower to the
Finance Parties, that such amount is due and payable, the amount of interest accrued thereon
and as to any other fact, matter or thing related to the Borrower’s Indebtedness to the
Finance Parties in terms of this Agreement, shall be sufficient proof of the contents and
correctness thereof for the

 

 

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	 	 	purposes of provisional sentence, summary judgment or any other
proceedings, shall be valid as a liquid document for such purpose and shall, in addition, be
prima facie proof for purposes of pleading or trial in any action instituted by the Finance
Parties arising herefrom.

	25.	 	SET-OFF

	 	 	The Borrower authorises the Finance Parties to apply any credit balance to which an Obligor
is entitled on any account of an Obligor with that Finance Party in satisfaction of any sum
due and payable by the Borrower to the Finance Parties hereunder but
unpaid. No Finance Party shall be obliged to exercise any rights given to it by this clause
25.

	26.	 	CHANGE OF PARTY

	26.1	 	No Cession, Delegation or Assignment

	 	 	No Party may cede or assign any of its rights or delegate or transfer any of its
obligations in respect of any Finance Documents or the Facility Outstandings except as
permitted under this clause 26.

	26.2	 	Assignments and Transfers by the Lenders

	26.2.1	 	Subject to clause 26.3 (Conditions of Cession or Delegation), a Lender (the “Existing
Lender”) may (at no expense to any Obligor) cede any of its rights and/or delegate any of its
obligations under this Agreement and any corresponding rights or obligations under any other
Finance Document to any other person without the consent of any Obligor or any other Party
(the “New Lender”), and the Obligors hereby expressly consent to any such cession of rights
and/or delegation of obligations as contemplated herein. To the extent that any splitting of
claims arises as a consequence of any such cession, assignment and/or delegation, as the case
may be, the Obligors hereby consents to such splitting of claims.

 

 

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	26.3	 	Conditions of Cession or Delegation

	26.3.1	 	A cession or delegation as contemplated in clause 26.2 (Assignment and Transfers by the
Lenders) will only be effective if the procedure set out in clause 26.5 (Procedure for
Transfer) is complied with.

	26.3.2	 	If:

	26.3.2.1	 	a Lender cedes, assigns or transfers any of its rights or obligations under the Finance
Documents; and

	26.3.2.2	 	as a result of circumstances existing as at the date on which the cession, assignment,
transfer or change occurs, an Obligor would be obliged to make payment to the New Lender under
clause 21 (Taxes) and clause 23 (Increased Costs),

	 	 	then the New Lender is only entitled to receive payment under that clause or to
enforce or require performance of such obligation to the same extent as the
Existing Lender would have been if the cession, assignment, transfer or change
had not occurred.

	26.4	 	Limitation of Responsibility of Existing Lenders

	26.4.1	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation or
warranty and assumes no responsibility to a New Lender for:

	26.4.1.1	 	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents
or any other documents;

	26.4.1.2	 	the financial condition of any Obligor;

 

 

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	26.4.1.3	 	the performance and observance by any Obligor of its obligations under the Finance
Documents or any other documents; or

	26.4.1.4	 	the accuracy of any statements (whether written or oral) made in or in connection with any
Finance Document or any other document,

	 	 	and any representations or warranties implied by law are excluded.

	26.4.2	 	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

	26.4.2.1	 	has made (and shall continue to make) its own independent investigation and assessment of
the financial condition and affairs of each Obligor and its related entities in connection
with its participation in the Finance Documents and has not relied on any
information provided to it by the Existing Lender or any other Finance
Party in connection with any Finance Documents; and

	26.4.2.2	 	will continue to make its own independent appraisal of the creditworthiness of each
Obligor and its related entities whilst any amount is or may be outstanding under the Finance
Documents.

	26.4.3	 	Nothing in any Finance Document obliges an Existing Lender to:

	26.4.3.1	 	accept a re-transfer from a New Lender of any of the rights and obligations assigned or
transferred under this clause 26; or

	26.4.3.2	 	support any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

 

 

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	26.5	 	Procedure for Transfer

	26.5.1	 	Subject to the conditions set out in clause 26.3 (Conditions of Cession or Delegation) a
transfer is effected in accordance with clause 26.5.2 when the Facility Agent:

	26.5.1.1	 	executes an otherwise duly completed Cession and Delegation Agreement delivered to it by
the Existing Lender; and

	26.5.1.2	 	a duly completed Accession Undertaking is delivered to it by the Existing Lender
(“Transfer Date”).

	26.5.2	 	On the Transfer Date:

	26.5.2.1	 	to the extent that in the Cession and Delegation Agreement the Existing Lender seeks to
transfer by cession and delegation its rights and obligations in whole or part (“Transferred
Rights and Obligations”) under the Finance Documents, the Existing Lender shall be released
from the Transferred Rights and Obligations ;

	26.5.2.2	 	each of the Obligors and the New Lender shall assume the Transferred Rights and
Obligations towards one another;

	26.5.2.3	 	the Facility Agent, the New Lender and the other Lenders shall acquire the same rights and
assume the same obligations between themselves as they would have acquired and assumed had the
New Lender been an Original Lender with the rights and/or obligations acquired or assumed by
it as a result of the transfer and to that extent the Existing Lenders shall each be released
from further obligations to each other under the Finance Documents; and

	26.5.2.4	 	the New Lender shall become a party to the relevant Finance Documents as a “Lender”.

 

 

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	26.6	 	Copy of Cession and Delegation Agreement to the Borrower

	 	 	The Facility Agent shall, as soon as reasonably practicable after it has executed a
Cession and Delegation Agreement, send to the Borrower a copy of that Cession and
Delegation Agreement and Accession Undertaking.

	26.7	 	Disclosure of Information

	26.8	 	Any Lender may disclose to any of its affiliates and any other person:

	26.8.1	 	to (or through) whom that Lender cedes, assigns or transfers (or may potentially assign or
transfer) all or any of its rights and obligations under the Finance Documents;

	26.8.2	 	with (or through) whom that Lender enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments are to be made
by reference to, the Finance Documents or any Obligor; or

	26.8.3	 	to whom, and to the extent that, information is required to be disclosed by any applicable
law or regulation,

	 	 	any information about an Obligor, the Group and the Finance Documents as that Lender
shall (acting reasonably) consider appropriate for the purpose of that actual or
potential cession, assignment, transfer or sub-participation if, in relation to clauses
26.8.1 and 26.8.2, the person to whom the information is to be given has entered into a
Confidentiality Undertaking in favour of the relevant Obligor(s) or Group Company(ies).

	26.9	 	No Change of Obligor

	 	 	No Obligor shall cede, assign or transfer any of its rights or delegate any of its
obligations under any Finance Document.

 

 

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	27.	 	INTEREST ON ARREAR AMOUNTS AND INDEMNITY

	27.1	 	Interest calculated at the Default Interest Rate shall accrue on the outstanding balance of
all amounts due and payable but unpaid by the Borrower from time to time in terms of this
Agreement. Such interest shall be calculated on a daily basis from the due date of each such
overdue amount to (but excluding) date of payment thereof, shall be compounded monthly in
arrears and shall be paid by the Borrower on demand.

	27.2	 	The Borrower hereby indemnifies and holds the Finance Parties harmless against any costs,
claim, loss, expense (including legal fees on the scale as between attorney and own client) or
liability together with any VAT thereon, which they may sustain or incur as a consequence of
the occurrence of any Default by the Borrower in the performance of any of the obligations
expressed to be assumed by it in this Agreement.

	28.	 	FACILITY AGENT

	28.1	 	Appointment of the Facility Agent

	28.1.1	 	Each of the Lenders appoints the Facility Agent to act as its agent under and in connection
with the Finance Documents, and authorises the Facility Agent to exercise the rights, powers,
authorities and discretions specifically given to the Facility Agent under or in connection
with the Finance Documents together with any other incidental rights, powers, authorities and
discretions.

	28.1.2	 	Notwithstanding anything to the contrary in this Agreement, the Finance Parties shall, act
through the Facility Agent as contemplated in this clause 28.

	28.1.3	 	There shall be no change to the Facility Agent without the Borrower’s written consent.

 

 

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	28.2	 	Duties of the Facility Agent

	28.2.1	 	The Facility Agent shall promptly forward to a Party the original or a copy of any document
which is delivered to the Facility Agent for that Party by any other Party.

	28.2.2	 	Except where a Finance Document specifically provides otherwise, the Facility Agent is not
obliged to review or check the adequacy, accuracy or completeness of any document it forwards
to another Party.

	28.2.3	 	If the Facility Agent receives notice from a Party referring to this Agreement, describing a
Default and stating that the circumstance described is a Default, it shall promptly notify the
other Finance Parties.

	28.2.4	 	If the Facility Agent is aware of the non-payment of any principal, interest or fee payable
to a Finance Party (other than the Facility Agent) under this Agreement it shall promptly
notify the other Finance Parties.

	28.2.5	 	The Facility Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature.

	28.2.6	 	Nothing in this Agreement constitutes the Facility Agent as a fiduciary of any other person.

	28.2.7	 	The Facility Agent shall not be bound to account to any Lender for any sum or the profit
element of any sum received by it for its own account.

	28.3	 	Business with the Group

	 	 	The Facility Agent may accept deposits from, lend money to and generally engage in any
kind of banking or other business with any member of the Group.

 

 

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	28.4	 	Rights and discretions

	28.4.1	 	The Facility Agent may rely on:

	28.4.1.1	 	any representation, notice or document believed by it to be genuine, correct and
appropriately authorised; and

	28.4.1.2	 	any statement made by a director, authorised signatory or employee of any person regarding
any matters which may reasonably be assumed to be within his knowledge or within his power to
verify.

	28.5	 	The Facility Agent may assume (unless it has received notice to the contrary in its capacity
as agent for the Lenders) that:

	28.5.1	 	no Default has occurred (unless it has actual knowledge of a Default);

	28.5.2	 	any notice or request made by the Borrower is made on behalf of and with the consent and
knowledge of all the Obligors.

	28.6	 	The Facility Agent may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.

	28.7	 	The Facility Agent may act in relation to the Finance Documents through its personnel and
agents.

	28.8	 	The Facility Agent may disclose to any other Party any information it reasonably believes it
has received as agent under this Agreement.

	28.9	 	Notwithstanding any other provision of any Finance Document to the contrary, the Facility
Agent is not obliged to do or omit to do anything if it would or might in its reasonable
opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty
of confidentiality.

 

 

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	28.10	 	Majority Lenders’ instructions

	28.10.1	 	Unless a contrary indication appears in a Finance Document, the Facility Agent shall:

	28.10.1.1	 	exercise any right, power, authority or discretion vested in it as Facility Agent in
accordance with any instructions given to it by the Majority Lenders (or, if so instructed by
the Majority Lenders (as defined in the Intercreditor Agreement), refrain from exercising any
right, power, authority or discretion vested in it as Facility Agent); and

	28.10.1.2	 	not be liable for any act (or omission) if it acts (or refrains from taking any action)
in accordance with an instruction of the Majority Lenders;

	28.10.2	 	Until the Intercreditor Agreement is entered into, all references to “Majority Lenders” in
clause 28.10.1 shall be deemed to be a reference to the Original Lender.

	28.10.3	 	Unless a contrary indication appears in a Finance Document, any instructions given by the
Majority Lenders will be binding on all the Lenders.

	28.10.4	 	The Facility Agent may refrain from acting in accordance with the instructions of the
Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it
may require for any cost, loss or liability (together with any associated VAT) which it may
incur in complying with the instructions.

	28.10.5	 	In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders)
the Facility Agent may act (or refrain from taking action) as it considers to be in the best
interest of the Lenders.

 

 

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	28.10.6	 	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining
that Lender’s consent) in any legal or arbitration proceedings relating to any Finance
Document. This clause 28.10.6 shall not apply to any legal or arbitration proceeding relating
to the perfection, preservation or protection of rights under the Transaction Security
Documents or enforcement of the Transaction Security or Transaction Security Documents.

	28.11	 	Responsibility for documentation

	 	 	The Facility Agent is not:

	28.11.1	 	responsible for the adequacy, accuracy and/or completeness of any information (whether oral
or written) supplied by the Facility Agent, or an Obligor or any other person given in or in
connection with any Finance Document or the transactions contemplated in the Finance
Documents; or

	28.11.2	 	responsible for the legality, validity, effectiveness, adequacy or enforceability of any
Finance Document or the Transaction Security or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance Document
or the Transaction Security.

	28.12	 	Exclusion of liability

	28.12.1	 	The Facility Agent will not be liable for any action taken by it under or in connection
with any Finance Document or the Transaction Security, unless directly caused by its gross
negligence or wilful misconduct.

	28.12.2	 	Nothing in this Agreement shall oblige the Facility Agent to carry out any “know your
customer” or other checks required pursuant to the Financial Intelligence Centre Act, 2002 in
relation to any person on behalf of any Lender and each Lender confirms to the Facility Agent
that it is solely

 

 

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	 	 	responsible for any such checks it is required to carry out and that it may
not rely on any statement in relation to such checks made by the Facility Agent.

	29.	 	CONFIDENTIALITY

	29.1	 	Save with the prior written consent of the Borrower to the contrary, each Finance Party will
keep confidential and will not disclose to any person:

	29.1.1	 	the details of any Finance Document, the details of the negotiations leading to any Finance
Document, and the information handed over to such Party during the course of negotiations and
the Term, as well as the details of all the transactions or Agreements contemplated in any
Finance Document; and

	29.1.2	 	all information relating to the business or the operations and affairs of the Group,

	 	 	(together “Confidential Information”).

	29.2	 	The Finance Parties agree to keep all Confidential Information confidential and to disclose
it only to their officers, directors, employees, consultants, shareholders, professional
advisers and any person to whom any Finance Party wishes to cede any of its rights or delegate
any of its obligations under any of the Finance Documents who:

	29.2.1	 	have a need to know (and then only to the extent that each such person has a need to know);

	29.2.2	 	are aware that the Confidential Information should be kept confidential;

	29.2.3	 	are aware of the disclosing Party’s undertaking in relation to such information in terms of
this Agreement; and

 

 

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	29.2.4	 	have been directed by the disclosing Party to keep the Confidential Information confidential
and have undertaken to keep the Confidential Information confidential.

	29.3	 	The Finance Parties confirm that all employees, officers and directors are contractually
bound to maintain confidentiality and shall procure that each consultant, shareholder and/or
professional advisor enters in a confidentiality undertaking in favour of the Borrower on
substantially the same terms and conditions as this clause 29.

	29.4	 	The obligations of the Finance Parties in relation to the maintenance and non-disclosure of
Confidential Information in terms of this Agreement do not extend to information that:

	29.4.1	 	is disclosed to the receiving Party in terms of this Agreement but at the time of such
disclosure such information is known to be in the lawful possession or control of that Party
and not subject to an obligation of confidentiality; or

	29.4.2	 	is or becomes public knowledge, otherwise than pursuant to a breach of this Agreement by the
Finance Party (or its offices, directors or employee) who received such Confidential
Information; or

	29.4.3	 	is required by the provisions of any law, statute or regulation or during any court
proceedings, or by the rules or regulations of any recognised stock exchange to be disclosed
and subject to the provisions of clause 29.5, the Party required to make the disclosure has
taken all reasonable steps to oppose or prevent the disclosure of and to limit, as far as
reasonably possible, the extent of such disclosure and has consulted with the other Parties
prior to making such disclosure.

	29.5	 	Before any announcement or statement is made as required by any law, statute or regulation,
or the rules or regulations of any recognised stock exchange, the

 

 

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	 	 	affected Party shall use its
reasonable endeavours to provide the other Parties with a written draft of the proposed
announcement or statement at least 48 (forty-eight) hours before the proposed time of the
announcement and the Parties shall also use their reasonable endeavours to agree the wording
and timing of all public announcements and statements relating to Confidential Information.
If a written draft of the proposed announcement cannot be provided to the other Parties or
agreement cannot be reached, by the time that any such announcement or statement must be made,
the Party in question shall be free to make the relevant announcement or statement
notwithstanding that such agreement has not been reached, but in so doing it shall not
disclose more than the minimum information that it is compelled to disclose. Copies of any
public announcement or statement shall be given to the other Party in the most expeditious
manner reasonably available.

	29.6	 	The Finance Parties each agree to notify the Borrower in the event of a disclosure of the
Confidential Information under clause 29.4.3, or upon a breach of this clause 29 coming to the
relevant Finance Party’s knowledge.

	29.7	 	If so requested by the Borrower in writing, the Finance Parties shall use reasonable
endeavours to enforce their rights against any offices, director , employee and/or
representative who breaches clause 29.2.

	29.8	 	The provisions of this clause 29 shall survive the termination of this Agreement, but shall
terminate 24 (twenty-four) months from the termination of this Agreement.

	29.9	 	The Finance Parties acknowledge that some or all of the Confidential Information is or may be
price-sensitive information and that the use of such information may be regulated or
prohibited by applicable legislation relating to insider dealing, and the Finance Parties
shall not use any of the Confidential Information for unlawful purposes.

	30.	 	FEES AND EXPENSES

 

 

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	30.1	 	Fees

	 	 	The Borrower shall pay to the Original Lender on the Advance Date the fees contemplated
in the Fee Letter, in the amounts agreed and on the dates stipulated therein.

	30.2	 	Exit Fees

	30.2.1	 	Should the Borrower pre-pay any sum pursuant to clause 10 (Prepayment) and such prepayment
is not funded by way of:

	30.2.1.1	 	cash generated by the business operations of the Group; and/or
	 
	30.2.1.2	 	a Permitted Disposal; and/or
	 
	30.2.1.3	 	the raising of ordinary share capital,

	 	 	the Borrower shall pay to the Lenders an exit fee in an amount equal to 1% (one
percent) of the Facility Outstandings should the prepayment occur on a date
falling before the 1st (first) anniversary of Financial Close, plus
VAT thereon on the date of prepayment pursuant to clause 10 (Prepayment).

	30.3	 	Expenses

	30.3.1	 	The Borrower shall pay to, or at the direction of, the Facility Agent all reasonable
expenses (including legal expenses on the scale as between attorney and own client, printing
and out-of-pocket expenses) incurred by the Finance Parties in connection with the
negotiation, preparation and completion of the Finance Documents and any related documents,
including without limitation all fees and expenses payable to the Legal Adviser, within 30
(thirty) days of invoice.

 

 

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	30.3.2	 	The Borrower shall on demand pay to, or at the direction of, the Facility Agent all expenses
(including legal and out-of-pocket expenses on the attorney and own client scale), charges and
disbursements and fees of a like nature, including all taxes, incurred by the Finance Parties
in preserving, enforcing or defending, or attempting to preserve, enforce or defend, any of
their rights under the Finance Documents or any such related documents, save where the
Borrower successfully disputes that the Finance Parties are entitled to enforce any such
rights.

	30.4	 	Stamp Duty
	 
	 	 	The Borrower shall pay all stamp, documentary and other similar duties and taxes to
which any of the Finance Documents or any such related documents may be subject or give
rise and indemnifies the Finance Parties from and against any losses or liabilities
which the Finance Parties may incur as a result of any delay or omission by the
Borrower to pay any such duties or taxes.
	 
	30.5	 	Value Added Tax
	 
	 	 	The amounts stated in the Finance Documents to be payable by the Borrower are exclusive
of VAT and accordingly the Borrower shall pay on demand:

	30.5.1	 	any VAT properly chargeable in respect of services to the Borrower as contemplated by any of
the Finance Documents (including any VAT chargeable by a Finance Party under the Finance
Documents); and

	30.5.2	 	any VAT chargeable in the case of goods or services supplied to, or other costs, fees and
expenses incurred by, a Finance Party in connection with the Finance Documents and which are
to be met by the Borrower or in respect of which the Borrower has agreed to indemnify the
Finance Party.

 

 

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	31.	 	NOTICES AND DOMICILIA

	31.1	 	Notices

	31.1.1	 	Each Party chooses the address set out opposite its name below as its address to which any
written notice in connection with this Agreement may be addressed.

	 	 	 	 	 	 	 
	31.1.1.1

	 	Original Lender:
	 	4th Floor,	 	 
	 

	 	 	 	F Block	 	 
	 

	 	 	 	135 Rivonia Road	 	 
	 

	 	 	 	Sandown	 	 
	 

	 	 	 	SANDTON	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Telefax No.:
	 	(011) 295 3902
	 

	 	 	 	Attention :
	 	Head: Project Management
	 
	 	 	 	 	 	 
	31.1.1.2

	 	Facility Agent:
	 	4th Floor,	 	 
	 

	 	 	 	F Block	 	 
	 

	 	 	 	135 Rivonia Road	 	 
	 

	 	 	 	Sandown	 	 
	 

	 	 	 	SANDTON	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Telefax No.:
	 	(011) 295 3902
	 

	 	 	 	Attention :
	 	Head: Project Management
	 
	 	 	 	 	 	 
	31.1.1.3

	 	Borrower:
	 	Block 27	 	 
	 

	 	 	 	Randfontein Office Park	 	 
	 

	 	 	 	Cnr Main Reef Road and Ward Avenue	 	 
	 

	 	 	 	RANDFONTEIN	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	Telefax No.:
	 	(011) +27 11 411 2070
	 

	 	 
	 	Attention :
	 	The Company Secretary

	31.1.2	 	Any notice or communication required or permitted to be given in terms of this Agreement
shall be valid and effective only if in writing but it shall be

 

 

Page 92

	 	 	competent to give notice by telefax transmitted to its telefax number set out
opposite its name above.
	 
	31.1.3	 	Either Party may by written notice to the other Party change its chosen address and/or
telefax number for the purposes of clause 31.1.1 to any other address and/or telefax number,
provided that the change shall become effective on the 14th (fourteenth) day after
the receipt of the notice by the addressee.
	 
	31.1.4	 	Any notice to a Party contained in a correctly addressed envelope and delivered by hand to a
responsible person during ordinary business hours at its chosen physical address in terms of
clause 31.1.1, shall be deemed to have been received on the day of delivery.
	 
	31.1.5	 	Any notice by telefax to a Party at its telefax number shall be deemed to have been received
on the 1st (first) Business Day after the date of transmission.
	 
	31.1.6	 	Notwithstanding anything to the contrary herein contained, a written notice or communication
actually received by a Party shall be an adequate written notice or communication to it,
notwithstanding that it was not sent to or delivered at its chosen address and/or telefax
number.

	31.2	 	Domicilia

	31.2.1	 	Each of the Parties chooses its physical address referred to in clause 31.1 (Notices) as its
domicilium citandi et executandi at which documents in legal proceedings in connection with
this Agreement may be served.
	 
	31.2.2	 	Either Party may by written notice to the other Party change its domicilium from time to
time to another address, not being a post office box or a poste restante, in South Africa;
provided that any such change shall only be effective on the 14th (fourteenth) day
after deemed receipt of the notice by

 

 

Page 93

	 	 	the other Party pursuant to clause 31.1.4 (Notices) or 31.1.5 (Notices), as the
case may be.

	32.	 	GOVERNING LAW
	 
	 	 	The entire provisions of this Agreement shall be governed by and construed in accordance with
the laws of South Africa.
	 
	33.	 	JURISDICTION
	 
	 	 	The Parties hereby irrevocably and unconditionally consent to the non-exclusive jurisdiction
of the Witwatersrand Local Division of the High Court of South Africa (or any successor to
that division) in regard to all matters arising from this Agreement.
	 
	34.	 	SEVERABILITY
	 
	 	 	Each provision in this Agreement is severable from all others, notwithstanding the manner in
which they may be linked together or grouped grammatically, and if in terms of any judgment
or order, any provision, phrase, sentence, paragraph or clause is found to be defective or
unenforceable for any reason, the remaining provisions, phrases, sentences, paragraphs and
clauses shall nevertheless continue to be of full force. In particular, and without limiting
the generality of the aforegoing, the Parties hereto acknowledge their intention to continue
to be bound by this Agreement notwithstanding that any provision may be found to be
unenforceable or void or voidable, in which event the provision concerned shall be severed
from the other provisions, each of which shall continue to be of full force.
	 
	35.	 	GENERAL

	35.1	 	This document constitutes the sole record of the agreement between the Parties in regard to
the subject matter thereof.

 

 

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	35.2	 	No Party shall be bound by any express or implied term, representation, warranty, promise or
the like, not recorded herein.
	 
	35.3	 	No addition to, variation or consensual cancellation of this Agreement and no extension of
time, waiver or relaxation or suspension of any of the provisions or terms of this Agreement
shall be of any force or effect unless in writing and signed by or on behalf of all the
Parties.
	 
	35.4	 	No latitude, extension of time or other indulgence which may be given or allowed by any Party
to any other Party in respect of the performance of any obligation hereunder or enforcement of
any right arising from this Agreement and no single or partial exercise of any right by any
Party shall under any circumstances be construed to be an implied consent by such Party or
operate as a waiver or a novation of, or otherwise affect any of that Party’s rights in terms
of or arising from this Agreement or estop such Party from enforcing, at any time and without
notice, strict and punctual compliance with each and every provision or term hereof.
	 
	35.5	 	The Parties undertake at all times to do all such things, to perform all such acts and to
take all such steps and to procure the doing of all such things, the performance of all such
actions and the taking of all such steps as may be open to them and necessary for or
incidental to the putting into effect or maintenance of the terms, conditions and import of
this Agreement.
	 
	35.6	 	Save as is specifically provided in this Agreement, no Party shall be entitled to cede,
assign or delegate any of its rights or obligations under this Agreement without the prior
written consent of the other Parties affected by such transfer of rights or obligations, which
consent may not unreasonably be withheld or delayed.

 

 

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	36.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts and by different Parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same Agreement.

THE NEXT PAGE IS THE SIGNATURE PAGE

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	NEDBANK LIMITED
	 

	 	(acting through its NEDBANK CAPITAL division)
	 

	 	(as “Original Lender” and “Facility Agent”)
	 
	 	 
	 

	 	 
	 

	 	Name:
	 

	 	Capacity:
	 

	 	Who warrants his authority hereto
	 
	 

	 	 
	 

	 	Name: Brad Maxwell
	 

	 	Capacity:
	 

	 	Who warrants his authority hereto

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	HARMONY GOLD MINING COMPANY LIMITED
	 

	 	(as “Borrower”)
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	AFRICAN RAINBOW MINERALS GOLD LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

     SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	EVANDER GOLD MINES LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	ARMGOLD/HARMONY JOINT INVESTMENT COMPANY
	 

	 	(PROPRIETARY) LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	ARMGOLD/HARMONY FREEGOLD JOINT VENTURE COMPANY
	 

	 	(PROPRIETARY) LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

     SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	RANDFONTEIN ESTATES LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

SIGNED at SANDTON on this the 27TH day of SEPTEMBER 2007

	 	 	 
	 

	 	For and on behalf of
	 

	 	AVGOLD LIMITED
	 

	 	(as “Guarantor”)
	 
	 

	 	 
	 

	 	Name: Frank Abbott
	 

	 	Capacity: Director
	 

	 	Who warrants his authority hereto

 

 

SCHEDULE 1

CONDITIONS

Part 1: Advance Condition Documents

	1.	 	The Borrower

	1.1	 	A copy of the Constitutional Documents of the Borrower.
	 
	1.2	 	A copy of a resolution of the board of directors of the Borrower:

	1.2.1	 	approving the terms of, and the transactions contemplated by, the Finance Documents to which
it is a party and resolving to execute those Finance Documents;

	1.2.2	 	authorising a specified person or persons to execute the Finance Documents to which it is a
party on its behalf; and

	1.2.3	 	authorising a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices to be signed and/or despatched by it under or in connection with the
Finance Documents to which it is a party.

	1.3	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 1.2.

	1.4	 	A certificate signed by an Authorised Signatory of the Borrower confirming that borrowing the
Available Facility would not cause any borrowing or similar limit in its Constitutional
Documents binding on it to be exceeded.

	1.5	 	A certificate by an Authorised Signatory of the Borrower certifying that the copy of each
document referred to in paragraphs 1.1 to 1.4 (both inclusive) is correct, complete and in
full force and effect as at a date no earlier than the Signature Date.

	1.6	 	A certificate of an Authorised signatory of the Borrower stating that:

 

 

	1.6.1	 	the representations and warranties given by the Borrower in clause 15
(Warranties and Representations) of this Agreement shall be correct in all
material respects at Financial Close; and
	 
	1.6.2	 	no Default shall have occurred at the date of Financial Close which is continuing.

	2.	 	The Guarantors

	2.1	 	A copy of the Constitutional Documents of each Guarantor.
	 
	2.2	 	A copy of a resolution of the board of directors or other governing body of each Guarantor:

	2.2.1	 	approving the terms of, and the transactions contemplated by, the Finance Documents to which
it is a party and resolving to execute those Finance Documents;

	2.2.2	 	authorising a specified person or persons to execute the Finance Documents to which it is a
party on its behalf; and

	2.2.3	 	authorising a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices to be signed and/or despatched by it under or in connection with the
Finance Documents to which it is a party.

	2.3	 	A specimen of the signature of each person authorised by the resolution referred to in
paragraph 2.1.

	2.4	 	A certificate signed by an Authorised Signatory of each Guarantor confirming that
guaranteeing the Facility Outstandings would not cause any guaranteeing or similar limit in
its Constitutional Documents binding on it to be exceeded.

	2.5	 	A certificate by an Authorised Signatory of each Guarantor certifying that the copy of each
document referred to in paragraphs 2.1 to 2.4 (both inclusive) is correct, complete and in
full force and effect as at a date no earlier than the Signature Date.

	2.6	 	A certificate by an Authorised Signatory of each Guarantor stating that the representations
and warranties given by that Guarantor in clause 15 (Warranties and Representations) of this
Agreement shall be correct in all material respects at Financial Close.

 

 

	3.	 	Legal opinions

	3.1	 	A legal opinion from Cliffe Dekker Inc. addressed to the Lender relating, inter alia, to the
due execution by each Obligor of the Finance Documents to which it is a party, and the
authority of each Obligor to enter into the Finance Documents to which it is a party.

	4.	 	Finance Documents

	4.1	 	A duly executed original of each of the following:

	4.1.1	 	this Agreement;
	 
	4.1.2	 	the cession in securitatem debiti and pledge of the Subsidiaries’ Shares and the Deposit
Account by the Borrower in favour of the Finance Parties;
	 
	4.1.3	 	the cession in securitatem debiti and pledge of ARMgold’s shares in ARMgold/Harmony Joint
Investment Company (Proprietary) Limited and ARMgold/Harmony Freegold Joint Venture Company
(Proprietary) Limited by ARMgold in favour of the Finance Parties.

	4.2	 	Each of the following in relation to shares pledged pursuant to the Security Documents:

	4.2.1	 	the original share certificates in respect of such shares;

	4.2.2	 	an original share transfer form duly signed by the pledgor of such shares and blank as to
transferee; and

	4.2.3	 	a resolution of the directors of the company, the shares of which are pledged, acknowledging
such pledge and agreeing to give effect to any transfer of such shares pursuant to the terms
of such pledge.

	4.3	 	All notices required to be delivered and all acknowledgements required to be received under
the terms of any Security Document.

	5.	 	Financial Information
	 
	 	 	A copy of the Original Financial Statements.

 

 

	6.	 	Fee Letter

	 	 	The execution of the Fee Letter.

Part 2: Advance Conditions

The Lenders shall only be obliged to make the Advance in terms of this Agreement if:

	1.	 	no Default shall have occurred or be continuing;

	2.	 	the warranties and representations made in clause 15 (Warranties and Representations) of this
Agreement shall be correct and will be correct in all material respects immediately after the
making of the Advance;

	3.	 	in the reasonable opinion of the Facility Agent there has been no Material Adverse Change in
either the Borrower or any of the Obligors since the date of the Original Financial Statements
which could be expected to affect the ability of the Borrower to fulfil its obligations in
terms of the Finance Documents in an adverse manner;

	4.	 	in the reasonable opinion of the Facility Agent there has been no Material Adverse Change
since the Signature Date.

 

 

SCHEDULE 2

THE GUARANTORS

	1.	 	African Rainbow Minerals Gold Limited;
	 
	2.	 	Evander Gold Mines Limited;
	 
	3.	 	ARMgold/Harmony Joint Investment Company (Proprietary) Limited;
	 
	4.	 	ARMgold/Harmony Freegold Joint Venture Company (Proprietary) Limited;
	 
	5.	 	Randfontein Estates Limited;
	 
	6.	 	Avgold Limited;

 

 

SCHEDULE 3

DISCLOSED ENCUMBRANCES

Nil

 

 

SCHEDULE 4

DISCLOSED INDEBTEDNESS

	1.	 	R1 700 000 000 (one billion seven hundred million Rand) 4,875% (four comma eight seven five
percent) convertible bonds (due 2009) issued by the Borrower

	2.	 	As per Annexure 4.1

 

 

Annexure 4.1

[SEE SEPARATE DOCUMENT]

 

 

SCHEDULE 5

DISCLOSED LOANS

A loan still to be advanced to Pamodzi Gold Limited by the Borrower of a principal amount not
exceeding R33 000 000 (thirty three million Rand); provided that the funds to be advanced are
received by the Borrower pursuant to the exercise of the Borrower’s put option to sell certain
preference shares held by the Borrower to Pamodzi Resources (Proprietary) Limited for an amount of
not less than R57 000 000 (fifty-seven million Rand).

 

 

SCHEDULE 6

DISCLOSED POTENTIAL ENVIRONMENTAL CLAIM

The Borrower has been advised that the Department of Water Affairs and Forestry (“DWAF”) may issue
a directive in terms of the National Water Act, 1998 to entities who are conducting or who have
conducted mining activities in the Wonderfontein Catchment area, which entities may include the
Borrower and/or one or more Group Companies, relating to the alleged contamination of Wonderfontein
Spruit and the rehabilitation and remediation thereof.

 

 

SCHEDULE 7

TRANSACTION SECURITY

	1.	 	Cession in security of the Borrower’s right, title and interest in and to the Subsidiaries’
Shares, the Subsidiaries’ Loans and the Deposit Account, and pledge of the Subsidiaries’
Shares by the Borrower in favour of the Finance Parties on a joint and several basis.

Cession in security of ARMgold’s right, title and interest in and to its shares in
ARMgold/Harmony Joint Investment Company (Proprietary) Limited and ARMgold/Harmony Freegold
Joint Venture Company (Proprietary) Limited (the “ARMgold Shares”) and pledge of the ARMgold
Shares by ARMgold in favour of the Finance Parties on a joint and several basis.

 

 

SCHEDULE 8

FORM OF COMPLIANCE CERTIFICATE

	 	 	 
	To:

	 	Nedbank Limited (acting through its Nedbank Capital division) (as “Lender”)

135 Rivonia Road

Sandown

2196

Attention: [•]
	 
	 	 
	And to:

	 	[•]

(as Lender)
	 
	 	 
	And to:

	 	[insert]
	 
	 	 
	[Date]
	 	 

Dear Sirs

	SENIOR FACILITY AGREEMENT ENTERED INTO BETWEEN inter alia NEDBANK LIMITED (ACTING THROUGH ITS
NEDBANK CAPITAL division), HARMONY GOLD MINE LIMITED (“BORROWER”) AND VARIOUS SUBSIDIARIES OF THE
BORROWER DATED [     ] 2007 (the “Facility Agreement”)

	1.	 	We refer to the Facility Agreement. This is a Compliance Certificate, and terms used in this
Compliance Certificate have the same meaning as in the Facility Agreement.

	2.	 	This Compliance Certificate is in respect of the Ratio Test Period ended [ ] (being the
Ratio Test Date), pursuant to clause 19 (Financial Covenant) of the CTA.

	3.	 	We confirm that in respect of the Ratio Test Date:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Compliance
	 	 	As Calculated	 	Covenant	 	(Yes/No)
	Interest Cover Ratio
	 	 	 	 	 	 

	4.	 	[We confirm that no Default is continuing.]*

 

			
	*	 	If this statement cannot be made, the Certificate
should identify any Default that is continuing and the steps, if any, being
taken to remedy it.

 

 

For and on behalf of

HARMONY GOLD MINING COMPANY LIMITED

	 	 	 
	 

	 	 
	Name:
	 	 
	Capacity:
	 	 
	Who warrants his authority hereto
	 	 

 

 

SCHEDULE 9

FORM OF LENDER’S ACCESSION UNDERTAKING

ACCESSION UNDERTAKING

	 	 	 
	To:

	 	Nedbank Limited (acting through its Nedbank Capital division)

(as “Facility Agent”)

135 Rivonia Road

Sandown

2196

Attention: [•]
	 
	 	 
	From:

	 	[Insert full name of New Lender] (the “New Lender”)
	 
	 	 
	[Date]
	 	 
	 
	 	 
	Dear Sirs
	 	 

SENIOR FACILITY AGREEMENT ENTERED INTO BETWEEN inter alia NEDBANK LIMITED (ACTING THROUGH ITS
NEDBANK CAPITAL DIVISION), HARMONY GOLD MINE LIMITED (“BORROWER”) AND VARIOUS SUBSIDIARIES OF THE
BORROWER DATED [     ] 2007 (the “Facility Agreement”)

	1.	 	We refer to the Facility Agreement.

	2.	 	This is an Accession Undertaking, and terms used in this Accession Undertaking have the same
meaning as in the Facility Agreement.

	3.	 	This Accession Undertaking is delivered to Nedbank as the Facility Agent pursuant to clause
26 (Change of Party) of the Facility Agreement.

	4.	 	In consideration of the New Lender being accepted as a Lender for the purposes of the
Facility Agreement, and the other relevant Finance Documents (if any) pursuant to the Facility
Agreement, the New Lender hereby confirms that, as from the date of acceptance of this
Accession Undertaking by the Existing Lenders, it:

 

 

	4.1	 	intends to be Party to the Facility Agreement and the other relevant Finance
Documents as a Lender;

	4.2	 	undertakes to perform all the obligations expressed in the Facility Agreement, and the other
relevant Finance Documents (if any) to be assumed by a Lender to the extent that such
obligations have been delegated to the New Lender as described in the Cession and Delegation
Agreement relating to this Accession Undertaking;

	4.3	 	agrees that it shall be bound by all the provisions of the Facility Agreement and the other
relevant Finance Documents (if any) as if it had been an original party to those Finance
Documents as a Lender; and

	4.4	 	accepts the benefits conferred upon the Lenders under the Finance Documents, including in
particular the Security Documents.

	5.	 	This Accession Undertaking may be executed in any number of counterparts and this has the
same effect as if the signatures on the counterparts were on a single copy of this Accession
Undertaking.

	6.	 	This Accession Undertaking shall be governed by and construed in accordance with the laws of
South Africa.

For and on behalf of

[NEW LENDER]

	 	 	 
	 

Name:

	 	 
	Capacity:
	 	 
	Who warrants his authority hereto
	 	 
	 
	 	 
	For and on behalf of
	 	 
	NEDBANK LIMITED (acting through its Nedbank Capital division)
	(as “Facility Agent”)
	 	 
	 
	 	 
	 

Name:

	 	 
	Capacity:
	 	 
	Who warrants his authority hereto
	 	 

 

 

SCHEDULE 10

AGREED FORM OF CESSION AND DELEGATION AGREEMENT

THIS SALE, CESSION AND DELEGATION AGREEMENT is dated                                          and made BETWEEN:

	(1)	 	[•] (the “Existing Lender”); and
	 
	(2)	 	[•] (the “New Lender”); and
	 
	(3)	 	NEDBANK LIMITED (acting through its Nedbank Capital division) (as “Facility Agent”).

IT IS AGREED as follows:

	1.	 	INTERPRETATION

	1.1	 	In this Agreement, unless inconsistent with the context, all capitalised terms shall have the
respective meanings assigned to such terms below, all capitalised terms for which no meanings
have been assigned herein shall have the meanings assigned to them in the Senior Facility
Agreement, and cognate terms shall have corresponding meanings:

	1.1.1	 	“this Agreement” means this Agreement, together with all schedules and appendices hereto and
any written and signed amendments to the aforementioned;

	1.1.2	 	“the Borrower” means Harmony Gold Mining Company Limited (Registration No. 1950/038232/06),
a public company, incorporated under the laws of South Africa;

	1.1.3	 	“the Effective Date” means, notwithstanding the Signature Date [•];

	1.1.4	 	“Effective Date Facility Outstandings” means the aggregate principal amount owing by the
Borrower to the Existing Lender under the Senior Facility Agreement as at the Effective Date
which has not been prepaid or repaid irrevocably, unconditionally and in full;

 

 

	1.1.5	 	“Existing Lender” means [•], (Registration No. [INSERT]), a [public]
company incorporated under the laws of South Africa;
	 
	1.1.6	 	“Facility Agent” means Nedbank;
	 
	1.1.7	 	“nacm” means nominal annual compounded monthly in arrear;

	1.1.8	 	“Nedbank” means Nedbank Limited (acting through its Nedbank Capital division) (Registration
No. 1951/000009/06), a public company incorporated under the laws of South Africa, which is
registered as a bank in terms of the Banks Act, 1990;

	1.1.9	 	“the New Lender” means [•] (Registration No. [•]), a [public] company
incorporated under the laws of South Africa;

	1.1.10	 	“Parties” means the Existing Lender and the New Lender and “Party” means, as the context
requires, either of them;

	1.1.11	 	“the Prime Rate” means the nacm prime overdraft rate of interest from time to time publicly
quoted as such by Nedbank, calculated on a 365 (three hundred and sixty five) day factor,
irrespective of whether or not the year is a leap year, as certified by any manager of
Nedbank, whose appointment as such it shall not be necessary to prove, which certificate shall
serve as prima facie proof of its contents;

	1.1.12	 	“Senior Facility Agreement” means the written agreement titled the “Senior Facility
Agreement”, entered into between Nedbank, the Borrower and the Guarantors as listed in
Schedule 2 thereto on or about [     ] 2007;

	1.1.13	 	“the Signature Date” means the date of last signature of this Agreement;

	1.1.14	 	“the Sold Rights and Obligations” means that amount of the Existing Lender’s right, title
and interest:

	1.1.14.1	 	under the Finance Documents insofar as they relate to the Facility;
	 
	1.1.14.2	 	to the Effective Date Facility Outstandings;

	 	 	as stipulated in Annexure “A” as being sold by the Existing Lender to the New
Lender;

 

 

	1.1.15	 	“South Africa” means the Republic of South Africa;

	1.1.15.1	 	any reference to the singular includes the plural and vice versa;
	 
	1.1.15.2	 	any reference to natural persons includes legal persons and vice versa;
	 
	1.1.15.3	 	any reference to a gender includes the other genders;

	1.1.15.4	 	any reference to an enactment is to that enactment as at the Signature Date and as amended
or re-enacted from time to time.

	1.2	 	If any definition contains a substantive provision conferring rights or imposing obligations
on any party, effect shall be given to it as if it were a substantive provision in the body of
this Agreement, notwithstanding that it is only in the definition clause.

	1.3	 	Words and expressions defined in any sub-clause shall, for the purposes of the clause of
which that sub-clause forms part, bear the meaning assigned to such words and expressions in
that sub-clause.

	1.4	 	The headnotes to the clauses of this Agreement have been inserted for reference purposes only
and shall in no way govern or affect the interpretation hereof.

	1.5	 	When any number of days is prescribed, same shall be reckoned inclusively of the first and
exclusively of the last day.

	1.6	 	Reference to day/s shall be construed as any day, irrespective of whether or not it is a
Business Day.

	1.7	 	Reference to month/s means a period starting on one day in a calendar month and ending on the
day preceding the numerically corresponding day in the next calendar month, except that:

	1.7.1	 	if the day preceding such numerically corresponding day is not a Business Day, that period
shall end on the next Business Day in that next calendar month if there is one, or if there is
not, on the immediately preceding Business Day; and

	1.7.2	 	if there is no numerically corresponding day in the next calendar month, that period shall
end on the last Business Day in such next calendar month;

 

 

	1.8	 	Reference to calendar month/s shall be construed as one or more of the twelve named
periods into which a year is divided in terms of the Gregorian calendar.

	1.9	 	Where any act is to be performed on a day which is not a Business Day, such act shall be
performed on the Business Day immediately preceding such day.

	1.10	 	Where figures are referred to in numerals and in words, if there is any conflict between the
two, the words shall prevail.

	2.	 	SALE AND PURCHASE

	 	 	The Existing Lender hereby sells to the New Lender, which hereby purchases from the Existing
Lender, with effect from the Effective Date, the Sold Rights and Obligations.

	3.	 	PURCHASE PRICE

	3.1	 	As consideration for the sale of the Sold Rights and Obligations, the New Lender shall pay to the Existing Lender
the amount of R[     ] ([     ]) (“the purchase price”) which shall be paid by the New
Lender to the Existing Lender on the Effective Date in immediately available funds, free of any deductions, exchange or other
charges by electronic transfer into the following bank account:
	 
	 	 	Account name:
	 
	 	 	Bank :
	 
	 	 	Branch :
	 
	 	 	Code :
	 
	 	 	Account Number : .

	3.2	 	The purchase price shall, if it is not paid on the Effective Date, bear interest from the
Effective Date to the date of payment at the Prime Rate.

	3.3	 	The Parties record that the sale of the Sold Rights and Obligations pursuant to this
Agreement is the transfer of a “debt security” (as defined in Section 2(2) of the VAT Act) and
is accordingly exempt from VAT under Section 12(a) of the VAT Act.

	3.4	 	Notwithstanding the provisions of clause 3.3, if the sale of the Sold Rights and Obligations
is subject to VAT, the purchase price shall be deemed to be

 

 

	3.5	 	exclusive of VAT, which shall be payable by the New Lender to the Existing Lender
against delivery by the Existing Lender to the New Lender of a valid tax invoice in
respect thereof.

	4.	 	DELIVERY

	4.1	 	Against payment by the New Lender to the Existing Lender of the purchase price as provided
for in clause 3, and with effect on the Effective Date, the Existing Lender hereby:

	4.1.1	 	cedes, assigns and transfers the Sold Rights and Obligations to the New Lender; and

	4.1.2	 	delegates to the New Lender all of the Existing Lender’s obligations under the Finance
Documents to the extent related to the Sold Rights and Obligations,

	 	 	without recourse to the Existing Lender.

	4.2 

4.2.1	 	The New Lender hereby accepts:

the cession, assignment and transfer of the Sold Rights and Obligations to the New Lender;
and

	4.2.2	 	the delegation to the New Lender of the Existing Lender’s obligations under the Finance
Documents to the extent related to the Sold Rights and Obligations, which obligations the New
Lender hereby assumes;

	 	 	without recourse to the Existing Lender.

	4.3	 	The New Lender hereby irrevocably binds itself in favour of the parties to each of the
Finance Documents to the terms of the Finance Documents, as if it had been a party thereto and
any Finance Party shall be entitled to accept the benefit of this clause 4.3 and any other
benefits conferred on it in terms of this Agreement at any time.
	 
	4.4	 	It is recorded that the Obligors have, in terms of clause 26.2 (Change of Party) of the
Senior Facility Agreement, consented to the cession and delegation herein recorded.

 

 

	5.	 	DELIVERY OF NOTICE

	 	 	The Facility Agent shall, within 5 (five) Business Days from the Effective Date, despatch
written notices to the Obligors and to any Lender which is not a party hereto of the sale,
cession, assignment and transfer of the Sold Rights and Obligations pursuant to this
Agreement.

	6.	 	REPRESENTATIONS AND WARRANTIES

	6.1	 	Each party represents and warrants to the other party on the Signature Date, the Effective
Date and on each day between those dates that:

	6.1.1	 	it is a company duly organised and existing under the laws of the jurisdiction in which it
is incorporated;

	6.1.2	 	it has the power to enter into and to exercise its rights and perform its obligations under
this Agreement;

	6.1.3	 	all corporate and other actions required to authorise the execution of this Agreement by it
and the performance by it of its obligations under this Agreement have been duly taken;

	6.1.4	 	the obligations expressed to be assumed by it in this Agreement are legal and valid
obligations binding on it in accordance with the respective terms thereof;

	6.1.5	 	the execution of this Agreement and the exercise by it of its rights and the performance of
its obligations under this Agreement do not and will not conflict with:

	6.1.5.1	 	any agreement to which it is a party or which is binding on it or any of its assets;

	6.1.5.2	 	its constitutive documents and rules and regulations; or

	6.1.5.3	 	any applicable law, regulation or official or judicial order.

	6.2	 	The Existing Lender hereby represents and warrants to the New Lender on the Signature Date,
the Effective Date and on each day between those dates that:

	6.2.1	 	to the best of its knowledge and belief, the Finance Documents have not been terminated or
cancelled and are of full force and effect;

 

 

	6.2.2	 	it has the right to sell and cede, assign and transfer the Sold Rights and
Obligations to the New Lender;

	6.2.3	 	the Sold Rights and Obligations are capable of being sold and ceded, assigned and
transferred to the New Lender free of any encumbrances;

	6.2.4	 	prior to the cession, assignment and transfer of the Sold Rights and Obligations recorded in
this Agreement, it has not ceded, assigned or transferred any of the Sold Rights and
Obligations to any person;

	6.2.5	 	no Obligor has been released by it from its obligations under the Finance Documents,

	 	 	provided that, save as set out in this clause 6.2, the Existing Lender gives no
representations or warranties express or implied in connection with the sale of the
Sold Rights and Obligations pursuant to this Agreement.

	7.	 	LIMITATIONS

	7.1	 	Unless expressly agreed to the contrary in this Agreement, the Existing Lender makes no
representation or warranty and assumes no responsibility to the New Lender for:

	7.1.1	 	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents
or any other documents;

	7.1.2	 	the financial condition or creditworthiness of any Obligor;

	7.1.3	 	the performance and observance by any Obligor of its obligations under the Finance Documents
or any other documents;

	7.1.4	 	the accuracy of any representations, warranties or statements (whether written or oral) by
any Obligor made in or in connection with any of the Finance Documents or any other document.

	 	 	and any representations or warranties implied by law are excluded.
	 
	7.2	 	The New Lender confirms to the Existing Lender that it:

	7.2.1	 	has made (and shall continue to make) its own independent investigation and assessment of
the financial condition and affairs of the Obligors in connection with its participation in
the Finance Documents and has not relied on any information provided to it by the Existing

 

 

	7.2.2	 	Lender in connection with any of the Finance Documents or on any
representation or warranty made by the Existing Lender other than those set out
in clause 6; and

	7.2.3	 	will continue to make its own independent appraisal of the creditworthiness of the Obligors
whilst any amount is or may be outstanding under the Finance Documents.

	7.3	 	Nothing in any of the Finance Documents or this Agreement obliges the Existing Lender to:

	7.3.1	 	accept a re-transfer from the New Lender of any of the rights ceded, assigned and
transferred and obligations delegated under this Agreement;

	7.3.2	 	support any losses directly or indirectly incurred by the New Lender by reason of the
non-performance by any Obligor of its obligations under the Finance Documents or otherwise; or

	7.3.3	 	provide the New Lender with any credit or other information concerning the affairs,
financial condition or business of any Obligor or any other third party.

	8.	 	NOTICES AND DOMICILIA

	8.1	 	The parties choose domicilia citandi et executandi for all purposes under this Agreement,
whether in respect of court process, notices or other documents or communications of
whatsoever nature, the following, addresses:

	8.1.1	 	the Existing Lender at [                                               ];
	 
	8.1.2	 	the New Lender at [                                                             ].

	8.2	 	A party may change that party’s address for this purpose to another physical address in South
Africa, by notice in writing.

	8.3	 	All notices shall be in writing and be deemed (unless the contrary is proved) to have been
duly given -

	8.3.1	 	on delivery, if delivered to the addressee’s physical address;

 

 

	8.3.2	 	on the Business Day after dispatch, if sent to the party’s then telefax
number;

	8.3.3	 	1 (one) Business Day after delivery, if delivered by a recognised international courier
service to the addressee’s physical address.

	8.4	 	Notwithstanding anything to the contrary contained in this Agreement, a written notice or
communication actually received by one of the parties from another including by way of telex
or facsimile transmission shall be adequate written notice or communication to such party.

	9.	 	GENERAL

	9.1	 	No variation of this Agreement shall be of any force and effect unless reduced to writing and
signed by the parties or their authorised Facility Agents.

	9.2	 	No failure or delay on the part of a party to exercise any power, right or remedy under this
Agreement shall operate as a waiver thereof, nor shall any single or partial exercise by a
party of any power, right or remedy preclude other or further exercise thereof or the exercise
of any power, right or remedy. The remedies provided in this Agreement are cumulative and are
not exclusive of any remedies provided by law.

	9.3	 	This Agreement, together with all the annexures and schedules thereto, constitutes the whole
agreement between the parties and there are no warranties, promises, representations or
inducements, whatsoever, which have been made by or on behalf of any party regarding the
subject matter hereof, unless such warranties, promises, representations are contained herein.

	9.4	 	All legal costs, charges and disbursements incurred by any party in successfully enforcing or
defending any provisions of this Agreement or any claim or action thereunder, shall be payable
by the unsuccessful party on the scale as between attorney and his own client.

	9.5	 	Each party shall bear its own costs and expenses in connection with the negotiation and
drafting of this Agreement.

	10.	 	GOVERNING LAW

	 	 	This Agreement and all matters or disputes incidental thereto or arising therefrom shall in
all respects be governed by and construed in accordance with the laws of South Africa,
including all matters of construction, validity and performance.

 

 

	11.	 	COUNTERPARTS
	 
	 	 	If any of the parties or the signatories of any of the parties signs this Agreement in
counterparts, the counterparts, taken together, shall constitute one agreement.
	 
	12.	 	SEVERABILITY
	 
	 	 	Each phrase, sentence, paragraph and clause in this Agreement is severable, the one from the
other, notwithstanding the manner in which they may be linked together or grouped
grammatically and if in terms of any judgment or order any phrase, sentence, paragraph or
clause is found to be defective or unenforceable for any reason the remaining phrases,
sentences, paragraphs and clauses as the case may be, shall nevertheless be and continue to
be of full force and effect.
	 
	13.	 	COSTS

	13.1	 	If, in any legal or arbitration proceedings relating to the enforcement by either party of
its rights in terms of this Agreement, a court or arbitrator awards costs to any party, such
costs shall be determined and recoverable on the scale as between an attorney and own client
and shall include collection charges, the costs incurred by such party in endeavouring to
enforce such rights prior to the institution of legal or arbitration proceedings and the costs
incurred in connection with the satisfaction or enforcement of any judgment or arbitration
award in favour of such party in relation to its rights in terms of or arising out of this
Agreement.

	13.2	 	Each of the parties shall bear its own costs of and incidental to the negotiation,
preparation and signature of this Agreement.

 

 

SIGNED at                                          on this the            day of             
         2007

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	Name:
	 

	 	Capacity:
	 

	 	Who warrants his authority hereto

 

 

SIGNED at                                          on this the           day of                      2007

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	Name:
	 

	 	Capacity:
	 

	 	Who warrants his authority hereto

 

 

ANNEXURE “A”

ANNEXURE “A” TO CESSION AND DELEGATION AGREEMENT

Effective Date Facility Outstandings      :      R [•]

Sold Rights and Obligations to New Lender                :      R [•]

Commitment of Existing Lender after the Effective Date           :      R [•]

 

 

SCHEDULE 11

FORM OF CONFIDENTIALITY UNDERTAKING

	 	 	 
	To:

	 	[Insert name of Potential New Lender.]
	 
	 	 
	Re:

	 	     The Agreement:
	 

	 	     Borrower:
	 

	 	     Date:
	 

	 	     Amount:
	 

	 	     Agent:
	Dear Sirs
	 	 

SENIOR FACILITY AGREEMENT ENTERED INTO BETWEEN inter alia NEDBANK CAPITAL (a division of NEDBANK
LIMITED), HARMONY GOLD MINE LIMITED (“BORROWER”) AND VARIOUS SUBSIDIARIES OF THE BORROWER DATED [     ] 2007

We
understand that you are considering [acquiring]1 /[arranging the acquisition
of]2 an interest in the Facility (the “Acquisition”). In consideration of us agreeing
to make available to you certain information, by your signature of a copy of this letter you agree
as follows:

	1.	 	In this letter, terms defined in the Facility Agreement shall, unless the context otherwise
requires, have the same meaning and the words and expressions set forth below shall bear the
following meanings and cognate expressions shall bear corresponding meanings:

	1.1	 	“Confidential Information” means any information relating to the Borrowers, the Group, the
Facility Agreement and/or the Acquisition provided to you by us or any of our affiliates or
advisers, in whatever form, and includes information given orally and any document, electronic
file or any other way of representing or recording information which contains or is derived or
copied from such information but excludes information that:

 

			
	1	 	Delete if addressee is acting as broker or agent.
	 
	2	 	Delete if addressee is acting as principal.

 

 

	1.1.1	 	is or becomes public knowledge other than as a direct or indirect result
of any breach of this letter; or

	1.1.2	 	is known by you before the date the information is disclosed to you by us or any of our
affiliates or advisers or is lawfully obtained by you thereafter, other than from a source
which is connected with the Group and which, in either case, as far as you are aware, has not
been obtained in violation of, and is not otherwise subject to, any obligation of
confidentiality;

	1.2	 	“Permitted Purpose” means [subject to the terms of this letter, passing on information to a
prospective purchaser for the purpose
of]3 considering and evaluating whether to
enter into the Acquisition; and

	1.3	 	“Purchaser Group” means you, and each of your affiliates.

	2.	 	Confidentiality Undertaking

	 	 	You undertake:

	2.1	 	undertake to keep the Confidential Information confidential and not to disclose it to anyone
except as provided for by paragraph 2.2 and to ensure that the Confidential Information is
protected with security measures and a degree of care that would apply to your own
confidential information,

	2.2	 	undertake to use the Confidential Information only for the Permitted Purpose,

	2.3	 	undertake to use all reasonable endeavours to ensure that any person to whom you pass any
Confidential Information (unless disclosed under paragraph
[2.2
or]4 2.3)
acknowledges and complies with the provisions of this letter as if that person were also a
party to it, and

	2.4	 	confirm that all of your employees, officers and directors are contractually bound to
maintain confidentiality and shall procure that should any employee, officer or director not
be so bound that such employee enters into a confidentiality undertaking in favour of the
Borrower on substantially the same terms and conditions set out in this letter;

 

			
	3	 	Delete if addressee is acting as principal.
	 
	4	 	Delete as applicable.

 

 

	2.5	 	undertake to procure that each professional advisor, shareholder and/or consultant
enters into a confidentiality undertaking in favour of the Borrower on substantially
the same terms and conditions as set out in this letter.

 

 

	3.	 	Permitted Disclosure

	 	 	We agree that you may disclose Confidential Information:

	3.1	 	to members of the Purchaser Group and their officers, directors, employees and professional
advisers to the extent necessary for the Permitted Purpose and to any auditors of members of
the Purchaser Group, to the extent that they have undertaken to keep the Information
Confidential;

	3.2	 	[subject to the requirements of the Facility Agreement, in accordance with the Permitted
Purpose so long as any prospective purchaser has delivered a letter to you in equivalent form
to this letter.]

	3.3	 	subject to the requirements of the Facility Agreement, to any person to (or through) whom you
assign or transfer (or may potentially assign or transfer) all or any of the rights, benefits
and obligations which you may acquire under the Facility Agreement or with (or through) whom
you enter into (or may potentially enter into) any sub-participation in relation to, or any
other transaction under which payments are to be made by reference to, the Facility Agreement
or the Borrowers or any member of the Group so long as that person has delivered a letter to
you in equivalent form to this letter; and

	3.4	 	where requested or required by any court of competent jurisdiction or any competent judicial,
governmental, supervisory or regulatory body;

	3.5	 	where required by the rules of any stock exchange on which the shares or other securities of
any member of the Purchaser Group are listed or;

	3.6	 	where required by the laws or regulations of any country with jurisdiction over the affairs
of any member of the Purchaser Group.

	4.	 	Notification of Required or Unauthorised Disclosure
	 
	 	 	You agree (to the extent permitted by law) to inform us of the full circumstances of any
disclosure under paragraph 2.4 or upon becoming aware that Confidential Information has been
disclosed in breach of this letter.
	 
	5.	 	Return of Copies
	 
	 	 	If we so request in writing, you shall return all Confidential Information supplied to you by
us and destroy or permanently erase all copies of Confidential Information made by you and
use all reasonable endeavours to ensure that anyone to whom you have supplied any
Confidential Information destroys or permanently erases such Confidential Information and any
copies made by them, in each case save to the extent

 

 

	 	 	that you or the recipients are required to retain any such Confidential Information by any
applicable law, rule or regulation or by any competent judicial, governmental, supervisory or
regulatory body or in accordance with internal policy, or where the Confidential Information
has been disclosed under paragraph 2.4.
	 
	6.	 	Continuing Obligations
	 
	 	 	The obligations in this letter are continuing and, in particular, shall survive the
termination of any discussions or negotiations between you and us. Notwithstanding the
previous sentence, the obligations in this letter shall cease:

	6.1	 	if you become a party to or otherwise acquire (by assignment or sub-participation) an
interest, direct or indirect, in the Facility Agreement;

	6.2	 	24 (twenty-four) months from the date of this letter.

	7.	 	No Representation, Consequences of Breach, etc
	 
	 	 	You acknowledge and agree that neither we [nor our
principal]5 nor any member of
the Group nor any of our or their respective officers, employees or advisers (each a
“Relevant Person”):

	7.1	 	make any representation or warranty, express or implied, as to, or assume any responsibility
for the accuracy, reliability or completeness of any of the Confidential Information or any
other information supplied by us or the assumptions on which it is based or

	7.2	 	shall be under any obligation to update or correct any inaccuracy in the Confidential
Information or any other information supplied by us or be otherwise liable to you or any other
person in respect to the Confidential Information or any such information; and

	7.3	 	we [or our
principal]6 or members of the Group may be irreparably harmed by the
breach of the terms hereof and damages may not be an adequate remedy; each Relevant Person
may be granted an injunction or specific performance for any threatened or actual breach of
the provisions of this letter by you.

 

			
	5
	 	Delete if letter is sent out by the Seller rather than
the Seller’s broker or agent.
	 
	6	 	Delete if letter is sent out by the Seller rather than
the Seller’s broker or agent.

 

 

	8.	 	Sole Agreement, No Implied Terms, No Variation, Extensions and Waivers

	8.1	 	This letter constitutes the sole record of the agreement between us and you (each, a “Party",
and collectively the “Parties") in regard to the subject matter hereof.

	8.2	 	No Party shall be bound by any express or implied term, representation, warranty, promise or
the like, not recorded in this letter.

	8.3	 	No addition to, variation or consensual cancellation of this letter and no extension of time,
waiver or relaxation or suspension of any of the provisions or terms hereof shall be of any
force or effect unless in writing and signed by or on behalf of all the Parties.

	8.4	 	No latitude, extension of time or other indulgence which may be given or allowed by any Party
to any other Party in respect of the performance of any obligation hereunder or enforcement of
any right arising from this letter and no single or partial exercise of any right by any Party
shall under any circumstances be construed to be an implied consent by such Party or operate
as a waiver or a novation of, or otherwise affect any of that Party’s rights in terms of or
arising from this letter or estop such Party from enforcing, at any time and without notice,
strict and punctual compliance with each and every provision or term hereof.

	9.	 	Inside Information
	 
	 	 	You acknowledge that some or all of the Confidential Information is or may be price-sensitive
information and that the use of such information may be regulated or prohibited by applicable
legislation relating to insider dealing and you undertake not to use any Confidential
Information for any unlawful purpose.
	 
	10.	 	Nature of Undertakings
	 
	 	 	The undertakings given by you under this letter are given to us and (without implying any
fiduciary obligations on our part) are also given by the benefit of [our
principal]7 the Borrowers and each other member of the Group.
	 
	11.	 	Governing Law and Jurisdiction

	11.1	 	This letter (including the agreement constituted by your acknowledgment of its terms) shall
be governed by and construed in accordance with the laws of South

 

			
	7	 	Delete if letter is sent out by the Seller rather than
the Seller’s broker or agent.

 

 

	11.2	 	Africa and the parties submit to the non-exclusive jurisdiction of the
Witwatersrand Local Division of the High Court of South Africa (or any successor to
that Division) in regard to all matters arising from this letter.
	 
	11.3	 	Please acknowledge your agreement to the above by signing and returning the enclosed copy.

 

 

Yours faithfully

	 	 	 	 	 
	 	 	 
	For and on behalf of	 	 
	[Seller/Seller’s agent/broker]	 	 
	 
	 	 	 	 
	To:

	 	[Seller]	 	 
	 

	 	[Seller’s agent/broker]	 	 
	 	 	The Borrowers and each other member of the Group
	 
	 	 	 	 
	We acknowledge and agree to the above.	 	 
	 
	 	 	 	 
	 	 	 
	For and on behalf of	 	 
	[Potential Purchaser/Purchaser’s agent/broker]	 	 

 

 

SCHEDULE 12

PRO FORMA MANAGEMENT ACCOUNT

Total SA summary — monthly

South Africa

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PRODUCTION	 	Jul-07	 	 	Aug-07	 
	 	 	 	 	Quality ounces
	 	 	 	 	 	 	 	 
	 	1	 	 	- Tons Milled
	 	 	488,215	 	 	 	482,764	 
	 	2	 	 	- Recovery Grade
	 	 	5.23	 	 	 	5.79	 
	 	3	 	 	- Kilograms Produced
	 	 	2,551	 	 	 	2,795	 
	 	4	 	 	- Working Cost per Kg
	 	 	121,199	 	 	 	107,227	 
	 	5	 	 	- Working Cost per Ton
	 	 	633	 	 	 	621	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Growth projects
	 	 	 	 	 	 	 	 
	 	6	 	 	- Tons Milled
	 	 	130,987	 	 	 	142,097	 
	 	7	 	 	- Recovery Grade
	 	 	5.33	 	 	 	5.39	 
	 	8	 	 	- Kilograms Produced
	 	 	698	 	 	 	766	 
	 	9	 	 	- Working Cost per Kg
	 	 	146,833	 	 	 	128,836	 
	 	10	 	 	- Working Cost per Ton
	 	 	783	 	 	 	695	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Leveraged ounces
	 	 	 	 	 	 	 	 
	 	11	 	 	- Tons Milled
	 	 	322,483	 	 	 	401,826	 
	 	12	 	 	- Recovery Grade
	 	 	3.78	 	 	 	4.10	 
	 	13	 	 	- Kilograms Produced
	 	 	1,219	 	 	 	1,648	 
	 	14	 	 	- Working Cost per Kg
	 	 	194,534	 	 	 	161,583	 
	 	15	 	 	- Working Cost per Ton
	 	 	735	 	 	 	663	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Opencast
	 	 	 	 	 	 	 	 
	 	16	 	 	- Tons Milled
	 	 	120,003	 	 	 	115,328	 
	 	17	 	 	- Recovery Grade
	 	 	1.66	 	 	 	2.12	 
	 	18	 	 	- Kilograms Produced
	 	 	199.67	 	 	 	244.25	 
	 	19	 	 	- Working Cost per Kg
	 	 	95,847	 	 	 	126,072	 
	 	20	 	 	- Working Cost per Ton
	 	 	159	 	 	 	267	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Surface & Clean Up
	 	 	 	 	 	 	 	 
	 	21	 	 	- Tons Milled
	 	 	762,815	 	 	 	733,036	 
	 	22	 	 	- Recovery Grade
	 	 	0.30	 	 	 	0.30	 
	 	23	 	 	- Kilograms Produced
	 	 	226.29	 	 	 	217.74	 
	 	24	 	 	- Working Cost per Kg
	 	 	85,775	 	 	 	89,682	 
	 	25	 	 	- Working Cost per Ton
	 	 	25	 	 	 	27	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	26	 	 	Total Kilograms Produced
	 	 	4,894.08	 	 	 	5,671.48	 
	 
	 	27	 	 	R/Kg — Revenue
	 	 	149,071	 	 	 	154,803	 
	 	28	 	 	R/Kg — Working Costs
	 	 	140,445	 	 	 	126,082	 
	 	29	 	 	R/Ton Working Costs
	 	 	377	 	 	 	381	 
	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PRODUCTION	 	Jul-07	 	 	Aug-07	 
	 	 	 	 	FINANCIAL
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Quality ounces
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	30	 	 	- Revenue
	 	 	380,556	 	 	 	433,337	 
	 	31	 	 	- Production Costs
	 	 	309,215	 	 	 	299,705	 
	 	 	 	 	 
	 	32	 	 	- Total U/g Profit/(Loss)
	 	 	71,341	 	 	 	133,632	 
	 	 	 	 	 
	 
	 	 	 	 	Growth projects
	 	 	 	 	 	 	 	 
	 	33	 	 	- Revenue
	 	 	104,234	 	 	 	118,750	 
	 	34	 	 	- Production Costs
	 	 	102,510	 	 	 	98,707	 
	 	 	 	 	 
	 	35	 	 	- Total U/g Profit/(Loss)
	 	 	1,724	 	 	 	20,042	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Leveraged ounces
	 	 	 	 	 	 	 	 
	 	36	 	 	- Revenue
	 	 	181,624	 	 	 	254,620	 
	 	37	 	 	- Production Costs
	 	 	237,074	 	 	 	266,337	 
	 	 	 	 	 
	 	38	 	 	- Total U/g Profit/(Loss)
	 	 	(55,450	)	 	 	(11,717	)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Opencast
	 	 	 	 	 	 	 	 
	 	39	 	 	- Revenue
	 	 	29,498	 	 	 	37,588	 
	 	40	 	 	- Production Costs
	 	 	19,138	 	 	 	30,793	 
	 	 	 	 	 
	 	41	 	 	- Total U/g Profit/(Loss)
	 	 	10,360	 	 	 	6,795	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Surface
	 	 	 	 	 	 	 	 
	 	42	 	 	- Revenue
	 	 	33,654	 	 	 	33,668	 
	 	43	 	 	- Production Costs
	 	 	19,410	 	 	 	19,527	 
	 	 	 	 	 
	 	44	 	 	- Total Surface Profit/(Loss)
	 	 	14,244	 	 	 	14,141	 
	 	 	 	 	 
	 	45	 	 	Total Working Profit/(Loss)
	 	 	42,219	 	 	 	162,893	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Capital expenditure
	 	 	 	 	 	 	 	 
	 	 	 	 	Quality ounces
	 	 	 	 	 	 	 	 
	 	46	 	 	- On-going development
	 	 	42,863	 	 	 	46,016	 
	 	47	 	 	- Project capital
	 	 	38,955	 	 	 	30,335	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Growth projects
	 	 	 	 	 	 	 	 
	 	48	 	 	- On-going development
	 	 	10,914	 	 	 	12,392	 
	 	49	 	 	- Project capital
	 	 	70,456	 	 	 	64,232	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Leveraged ounces
	 	 	 	 	 	 	 	 
	 	50	 	 	- On-going development
	 	 	25,243	 	 	 	28,179	 
	 	51	 	 	- Project capital
	 	 	8,665	 	 	 	8,385	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Opencast
	 	 	 	 	 	 	 	 
	 	52	 	 	- Project capital
	 	 	439	 	 	 	1,903	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	53	 	 	Total — OGD
	 	 	79,021	 	 	 	86,586	 
	 	54	 	 	Total — Project capital
	 	 	118,515	 	 	 	104,855	 
	 	 	 	 	 

 

 

SCHEDULE 13

LAST TAX RETURN YEAR

	 	 	 	 	 
	 	 	Company	 	Latest submitted returns
	1	 	Harmony Gold Mining Company Limited
	 	2001
	 	 	 
	 
	2	 	Armgold
	 	2005
	 	 	 
	 
	3	 	Evander
	 	2005
	 	 	 
	 
	4	 	ARMgold / Harmony Joint Investment Company
	 	2005
	 	 	 
	 
	5	 	ARMgold / Harmony Freegold Joint Venture Company
	 	2005
	 	 	 
	 
	6	 	Avgold Limited
	 	2002
	 	 	 
	 
	7	 	Randfontein Estated Limited
	 	2001exv4w17

 

    

Exhibit 4.17

CESSION AND PLEDGE IN SECURITY

By

AFRICAN RAINBOW MINERALS GOLD LIMITED

(as “Cedent”)

in favour of

NEDBANK LIMITED

(acting through its NEDBANK CAPITAL division)

(as “Original Lender” and “Facility Agent”)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	PARTIES
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	INTERPRETATION
	 	 	1	 
	 
	 	 	 	 	 	 
	3.

	 	INTRODUCTION
	 	 	9	 
	 
	 	 	 	 	 	 
	4.

	 	CESSION AND PLEDGE
	 	 	9	 
	 
	 	 	 	 	 	 
	5.

	 	WARRANTIES AND REPRESENTATIONS IN RESPECT OF THE SHARES AND THE RIGHTS AND INTERESTS
	 	 	9	 
	 
	 	 	 	 	 	 
	6.

	 	DELIVERY OF DOCUMENTS
	 	 	12	 
	 
	 	 	 	 	 	 
	7.

	 	RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE SHARES
	 	 	13	 
	 
	 	 	 	 	 	 
	8.

	 	REALISATION
	 	 	14	 
	 
	 	 	 	 	 	 
	9.

	 	EXERCISE OF RIGHTS
	 	 	16	 
	 
	 	 	 	 	 	 
	10.

	 	APPROPRIATION OF PROCEEDS
	 	 	17	 
	 
	 	 	 	 	 	 
	11.

	 	DURATION
	 	 	17	 
	 
	 	 	 	 	 	 
	12.

	 	ADDITIONAL SECURITY
	 	 	17	 
	 
	 	 	 	 	 	 
	13.

	 	BORROWER BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES
	 	 	17	 
	 
	 	 	 	 	 	 
	14.

	 	FURTHER CESSIONS
	 	 	18	 
	 
	 	 	 	 	 	 
	15.

	 	RIGHTS AND INTERESTS TO BE KEPT FREE OF ENCUMBRANCES
	 	 	18	 
	 
	 	 	 	 	 	 
	16.

	 	EXEMPTION FROM LIABILITY
	 	 	19	 
	 
	 	 	 	 	 	 
	17.

	 	KEEPING, INSPECTION AND DELIVERY OF RECORDS
	 	 	19	 
	 
	 	 	 	 	 	 
	18.

	 	CERTIFICATE OF INDEBTEDNESS
	 	 	19	 
	 
	 	 	 	 	 	 
	19.

	 	RENUNCIATION OF BENEFITS
	 	 	19	 
	 
	 	 	 	 	 	 
	20.

	 	STIPULATION FOR THE BENEFIT OF NEW LENDERS
	 	 	20	 
	 
	 	 	 	 	 	 
	21.

	 	NOTICES AND DOMICILIA
	 	 	20	 

 

 

	 	 	 	 	 	 	 
	22.

	 	GOVERNING LAW
	 	 	22	 
	 
	 	 	 	 	 	 
	SCHEDULE 1 : SUBSIDIARIES	 	 	26	 

 

 

CESSION AND PLEDGE IN SECURITY

	1.	 	PARTIES

	1.1	 	The Parties to this Agreement are:

	1.1.1	 	AFRICAN RAINBOW MINERALS GOLD LIMITED; and
	 
	1.1.2	 	NEDBANK LIMITED (acting through its NEDBANK CAPITAL division).

	1.2	 	The Parties agree as set out below.

	2.	 	INTERPRETATION

	2.1	 	The headings to the clauses, schedules and annexures of this Agreement are for reference
purposes only and shall in no way govern or affect the interpretation of nor modify nor
amplify the terms of this Agreement nor any clause, schedule or annexure hereof.
	 
	2.2	 	Unless the context dictates otherwise, the words and expressions set forth below shall bear
the following meanings and cognate expressions shall bear corresponding meanings:

	2.2.1	 	“Agreement” means this Cession and Pledge in Security and its Schedule;
	 
	2.2.2	 	“Business Day” means any day other than a Saturday, Sunday or an official public holiday in
South Africa (in accordance with the Public Holidays Act, 1994) and is a day on which banks
are open for business in South Africa;

 

 

Page 2.

	2.2.3	 	“Cedent” means African Rainbow Minerals Gold Limited (Registration No. 1997/015869/06), a
public company duly incorporated in accordance with the company laws of South Africa;
	 
	2.2.4	 	“Claims” means all current and future claims that the Cedent may have against the
Subsidiaries by virtue of its shareholding in the Subsidiaries, whether in the form of
shareholder loans or otherwise and the benefit of any security interest for the time being
held by the Cedent in respect of such claims;
	 
	2.2.5	 	“Deposit Rate” means the publicly quoted overnight call deposit rate of interest (per
centum, per annum, compounded monthly in arrears and calculated on a 365 day year factor
(irrespective of whether or not the year is a leap year)) from time to time published by
Nedbank as certified by any manager of Nedbank (whose appointment and/or designation need not
be proved) and whose certificate shall constitute prima facie proof of such rate;
	 
	2.2.6	 	“Documents of Title” means the share certificates and other documents of title referred to
in clauses 6.1.1 and 6.1.2 below;

	2.2.7	 	“Effective Date” means the later of:

	 
	2.2.7.1	 	28 September 2007; and
	 
	2.2.7.2	 	the date of Financial Close;

	2.2.8	 	“Event of Default” shall bear the meaning set out in the Senior Facility Agreement;

 

Page 3.

	2.2.9	 	“Facility” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.10	 	“Facility Agent” means Nedbank;
	 
	2.2.11	 	“Financial Close” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.12	 	“Finance Documents” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.13	 	“Finance Parties” means the Lenders and the Facility Agent, and “Finance Party” means any
one of them, as the context requires;
	 
	2.2.14	 	“Guarantors” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.15	 	“Harmony” means Harmony Gold Mining Company Limited (Registration No. 1950/038232/06), a
public company duly incorporated in accordance with the company laws of South Africa;
	 
	2.2.16	 	“Lenders” shall bear the meaning set out in the Senior Facility Agreement, and being as at
the Signature Date the Original Lender;
	 
	2.2.17	 	“Nedbank” means Nedbank Limited (acting through its Nedbank Capital division) (Registration
No. 1951/000009/06), a public company and registered bank duly incorporated in accordance with
the company and banking laws of South Africa;
	 
	2.2.18	 	“Original Lender” means Nedbank;

 

Page 4.

	2.2.19	 	“Parties” means the Finance Parties and the Cedent and “Party” shall, as the context
requires, be a reference to either one of them;
	 
	2.2.20	 	“Rights and Interests” means all the Cedent’s rights of any nature whatsoever to and
interest of any nature whatsoever in:

	2.2.20.1	 	the Shares; and
	 
	2.2.20.2	 	the Claims

whether actual, prospective or contingent, direct or indirect, whether a claim
to payment of money or to performance of any other obligation, and whether or
not the said rights and interest were within the contemplation of the Parties at
the Signature Date;

	2.2.21	 	“Secured Obligations” means any and all indebtedness or obligations of the Cedent to the
Finance Parties (whether actual or contingent, present or future) arising out of the Finance
Documents;
	 
	2.2.22	 	“Senior Facility Agreement” means the Senior Facility Agreement entered into between
Harmony, Nedbank (in its capacity as “Original Lender” and as “Facility Agent”), the Cedent,
Randfontein Estates Limited, Evander Gold Mines Limited, Avgold Limited, ARMgold/Harmony Joint
Investment Company (Proprietary) Limited and ARMgold/Harmony Freegold Joint Venture Company
(Proprietary) Limited on or about the same date as this Agreement, pursuant to which Nedbank
grants the Cedent a term loan facility of R2 000 000 000 (two billion Rand);
	 
	2.2.23	 	“Shares” means the ordinary shares in the issued share capital of the Subsidiaries, from
time to time, which are held by the Cedent (including,

 

Page 5.

	 	 	but not limited to, any such shares which may be issued or transferred to the Cedent in the future);
	 
	2.2.24	 	“Signature Date” means the date of the signature of the Party last signing this Agreement in
time;
	 
	2.2.25	 	“South Africa” means the Republic of South Africa as constituted from time to time;
	 
	2.2.26	 	“Subsidiaries” means the companies listed in Schedule 1 hereto and “Subsidiary” means any
one of them, as the context requires;

	2.3	 	Any reference in this Agreement to:

	2.3.1	 	an “affiliate” means, in relation to any person, a subsidiary of that person or a holding
company of that person or any other subsidiary of that holding company;
	 
	2.3.2	 	a “clause” shall, subject to any contrary indication, be construed as a reference to a
clause hereof;
	 
	2.3.3	 	a “holding company” shall be construed in accordance with the Companies Act, No. 61 of 1973
(as amended);
	 
	2.3.4	 	“law” shall be construed as any law (including common or customary law) or statute,
constitution, decree, judgment, treaty, regulation, directive, bye-law, order or any other
legislative measure of any government, supranational, local government, statutory or
regulatory body or court;
	 
	2.3.5	 	a “Schedule” or “Annexure” shall, subject to any contrary indication, be construed as a
reference to a schedule or annexure hereof;

 

Page 6.

	2.3.6	 	a “subsidiary” shall be construed in accordance with the Companies Act, No. 61 of 1973 (as
amended);
	 
	2.3.7	 	“tax” shall be construed so as to include any tax, levy, impost or other charge of a similar
nature (including, without limitation, any penalty or interest payable in connection with any
failure to pay or delay in paying any of the same);
	 
	2.3.8	 	a “person” shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership (whether or not
having separate legal personality) of two or more of the foregoing.

	2.4	 	Unless inconsistent with the context or save where the contrary is expressly indicated:

	2.4.1	 	if any provision in a definition is a substantive provision conferring rights or imposing
obligations on any Party, notwithstanding that it appears only in this interpretation clause,
effect shall be given to it as if it were a substantive provision of this Agreement;
	 
	2.4.2	 	when any number of days is prescribed in this Agreement, same shall be reckoned exclusively
of the first and inclusively of the last day unless the last day falls on a day which is not a
Business Day, in which case the last day shall be the next succeeding Business Day;
	 
	2.4.3	 	in the event that the day for payment of any amount due in terms of this Agreement should
fall on a day which is not a Business Day, the relevant day for payment shall be the previous
Business Day;

 

Page 7.

	2.4.4	 	in the event that the day for performance of any obligation to be performed in terms of this
Agreement should fall on a day which is not a Business Day, the relevant day for performance
shall be the subsequent Business Day;
	 
	2.4.5	 	any reference in this Agreement to an enactment is to that enactment as at the Signature
Date and as amended or re-enacted from time to time;
	 
	2.4.6	 	any reference in this Agreement to this Agreement or any other agreement or document shall
be construed as a reference to this Agreement or, as the case may be, such other agreement or
document as say may have been, or may from time to time be, amended, varied, novated or
supplemented;
	 
	2.4.7	 	references to day/s, month/s or year/s shall be construed as Gregorian calendar day/s,
month/s or year/s;
	 
	2.4.8	 	a reference to a Party includes that Party’s successors-in-title and permitted assigns.

	2.5	 	Unless inconsistent with the context, an expression which denotes:

	2.5.1	 	any one gender includes the other genders;
	 
	2.5.2	 	a natural person includes an artificial person and vice versa; and
	 
	2.5.3	 	the singular includes the plural and vice versa.

	2.6	 	The Schedules or Annexures to this Agreement form an integral part hereof and words and
expressions defined in this Agreement shall bear, unless the context otherwise requires, the
same meaning in such Schedules or Annexures. To the extent that there is any conflict between
the Schedules or Annexures to this 

 

Page 8.

	 	 	Agreement and the provisions of this Agreement, the provisions of this Agreement shall prevail.

	2.7	 	Where any term is defined within the context of any particular clause in this Agreement, the
term so defined, unless it is clear from the clause in question that the term so defined has
limited application to the relevant clause, shall bear the same meaning as ascribed to it for all purposes in terms of this Agreement,
notwithstanding that that term has not been defined in this interpretation clause.
	 
	2.8	 	The rule of construction that, in the event of ambiguity, the contract shall be interpreted
against the Party responsible for the drafting thereof, shall not apply in the interpretation
of this Agreement.
	 
	2.9	 	The expiration or termination of this Agreement shall not affect such of the provisions of
this Agreement as expressly provide that they will operate after any such expiration or
termination or which of necessity must continue to have effect after such expiration or
termination, notwithstanding that the clauses themselves do not expressly provide for this.
	 
	2.10	 	This Agreement shall be binding on and enforceable by the estates, heirs, executors,
administrators, trustees, permitted assigns or liquidators of the Parties as fully and
effectually as if they had signed this Agreement in the first instance and reference to any
Party shall be deemed to include such Party’s estate, heirs, executors, administrators,
trustees, permitted assigns or liquidators, as the case may be.
	 
	2.11	 	The use of any expression in this Agreement covering a process available under South African
law such as winding-up (without limitation eiusdem generis) shall, if any of the Parties to
this Agreement is subject to the law of any other jurisdiction, be construed as including any
equivalent or analogous proceedings under the law of such other jurisdiction.

 

Page 9.

	2.12	 	Where figures are referred to in numerals and in words, if there is any conflict between the
two, the words shall prevail.

	3.	 	INTRODUCTION

	3.1	 	Harmony, Nedbank and the Guarantors have entered into the Senior Facility Agreement in terms
of which Nedbank, as the “Original Lender”, will make a loan facility available to the Cedent
on the terms as set out in the Senior Facility Agreement.
	 
	3.2	 	As security for the due performance of the Secured Obligations, the Cedent has agreed to
pledge the Shares and cede to the Finance Parties on a joint and several basis, all the Rights
and Interests on the terms and conditions of this Agreement.

	4.	 	CESSION AND PLEDGE

	4.1	 	With effect from the Effective Date, the Cedent hereby pledges all of the Shares to the
Finance Parties, jointly and severally, and cedes, assigns, transfers and makes over to the
Finance Parties, jointly and severally, all of the Rights and Interests, as security for the
due, proper and timeous payment and performance in full of all of the Secured Obligations, on
the terms and conditions set out in this Agreement, which pledge and cession, assignment and
transfer Nedbank, as the “Original Lender” and the “Facility Agent” hereby accepts on behalf
of the Finance Parties.
	 
	4.2	 	The Cedent shall obtain all third party consents required to fulfil its obligations detailed
in clause 4.1 above.

 

Page 10.

	5.	 	WARRANTIES AND REPRESENTATIONS IN RESPECT OF THE SHARES AND THE RIGHTS AND INTERESTS

	5.1	 	The Cedent, on each day that this Agreement is in force:

	5.1.1	 	warrants and represents that it is and will be the sole and beneficial owner of all the
Shares and the Rights and Interests to the exclusion of all others
and (save as set out in the Finance Documents) no person has an option or right
of refusal over those Shares or the Rights and Interests;
	 
	5.1.2	 	warrants and represents that the Shares pledged and the Rights and Interests ceded to the
Finance Parties under this Agreement have not been pledged, ceded (either outright or as
security), discounted, factored, mortgaged under notarial bond or otherwise, or otherwise
disposed of, nor are they subject to any other rights in favour of any person (including
without limitation any rights of pre-emption) other than in terms of and as set out in the
Finance Documents;
	 
	5.1.3	 	warrants and represents that the Shares are fully paid for;
	 
	5.1.4	 	warrants and represents that all obligations undertaken by it under this Agreement have been
authorised by all necessary corporate action and all necessary legislative, administrative or
other governmental action;
	 
	5.1.5	 	warrants and represents that the issue of the pledge and cession under this Agreement and
the fulfilment of its obligations in accordance with the terms thereof do not contravene any
law, regulation or any contractual obligation binding on it;

 

Page 11.

	5.1.6	 	agrees and undertakes not to exercise any and all rights in respect of the Shares and the
Rights and Interests which it may have in conflict with the rights of the Finance Parties
under this Agreement;
	 
	5.1.7	 	acknowledges that it may not cede, assign, transfer or pledge or in any other manner
encumber or deal with the Shares or the Rights and Interests without the prior written consent
of the Facility Agent;
	 
	5.1.8	 	agrees that on the occurrence of any Event of Default, it will forthwith pay over to the
Facility Agent (on behalf of the Finance Parties) any interest,
dividend or other benefits of any nature accrued and/or received in respect of
the Shares and the Rights and Interests relating to the period after such a
breach by depositing the same into a nominated account as the Facility Agent may
from time to time direct in writing; and
	 
	5.1.9	 	undertakes and agrees to the extent possible to prevent any variation of the value of, or
rights relating to, the Shares and the Rights and Interests or any of them without the prior
written consent of the Facility Agent.

	5.2	 	Should any of the Shares and/or the Rights and Interests be subject to any right in breach of
the representation and warranty in clause 5.1.2, then, without prejudice to any other rights
that the Finance Parties may have, any reversionary or other interests the Cedent may have in
the said Shares and/or Rights and Interests, as the case may be, are also ceded jointly and
severally to the Finance Parties, and if the holder of that cession or right is entitled to
possession of any of the documents referred to in clause 6 below, and it exercises that right,
then the Cedent shall deliver photocopies of the documents to Facility Agent (on behalf of the
Finance Parties), and as soon as the holder of that cession or right ceases to be entitled to
possession or gives up possession, the Cedent shall deliver the relevant documents to the
Facility Agent (on behalf of the Finance Parties).

 

Page 12.

	5.3	 	It is recorded that Nedbank, as the “Facility Agent” and the “Original Lender” has entered
into the Finance Documents on the strength of and relying on the warranties and
representations in this clause 5, each of which shall be deemed to be separate warranties and
representations, given without prejudice to any other warranty or representation, and deemed
to be material representations inducing the Finance Parties to enter into the Finance
Documents to which they are a party.

	6.	 	DELIVERY OF DOCUMENTS

	6.1	 	In order to perfect the pledge of the Shares, the Cedent shall deliver to the Facility Agent
on behalf of all of the Finance Parties:

	6.1.1	 	the original share certificates in respect of the Shares; and
	 
	6.1.2	 	share transfer forms duly signed by the Cedent as transferor and blank as to transferee;

prior to the date of Financial Close, or in respect of Shares not currently owned by
the Cedent, as soon as such documents are available, as the case may be.

	6.2	 	It is agreed the Facility Agent will hold possession of the Documents of Title on behalf of
all of the Finance Parties.
	 
	6.3	 	The Facility Agent on behalf of all of the Finance Parties shall be entitled to retain
possession of the Documents of Title, and to deal with them in accordance with the provisions
of the Finance Documents until all the Secured Obligations have been unconditionally and
irrevocably finally discharged or released, as the case may be, whereupon the Documents of
Title shall be returned to the Cedent.

 

Page 13.

	6.4	 	When Rights and Interests are evidenced by a document, or when the Cedent holds security for
any obligation in respect of such Rights and Interests and the security is evidenced by a
document, the Cedent shall immediately deliver a certified copy of that document to the
Facility Agent.
	 
	6.5	 	In addition to the documents referred to above, the Cedent shall deliver to the Facility
Agent any other documents relating to the Shares and the Rights and Interests for which the
Facility Agent may at any time reasonably call, which documents shall be delivered to the
Facility Agent within a reasonable period, as agreed between the Facility Agent and the Cedent, and, failing such agreement, within 10 (ten) Business Days.
	 
	6.6	 	The Cedent shall generally do everything that may be required by the Facility Agent for the
purposes of and to give effect to this Agreement, failing which the Facility Agent may, if
possible, attend thereto and recover from the Cedent any expenses incurred in doing so.
	 
	6.7	 	The rights of the Finance Parties under this Agreement are joint and several and,
accordingly, subject to clauses 8 and 9, the Facility Agent on behalf of any Finance Party
shall, subject to the terms of the Finance Documents, be entitled to exercise such Finance
Party’s rights in terms of this Agreement independently of any other Finance Party, without
recourse to any other Finance Party in satisfaction of the claims of such Finance Party
against the Cedent under this Agreement.

	7.	 	RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE SHARES

	7.1	 	This pledge and cession operates in respect of all rights, powers and privileges attaching to
the Shares and Rights and Interests, including but not limited to those set out in 7.2 below
and such rights, powers and privileges shall accordingly vest in the Finance Parties or the
Facility Agent on behalf of the 

 

Page 14.

	 	 	Finance Parties with the power to exercise them (jointly and
severally) either in their own names or in the name of the Cedent, upon the occurrence of an
Event of Default. Alternatively, the Cedent shall, if the Facility Agent so directs, exercise
those rights, powers and privileges in its own name in accordance with the Facility Agent’s
directions upon the occurrence of an Event of Default.

	7.2	 	Such rights, powers and privileges attaching to the Shares include (but shall not be limited
to) the following:

	7.2.1	 	to receive payment of that portion of the dividends and other benefits which become due in
respect of the Shares from time to time;
	 
	7.2.2	 	the right to exercise any rights to appoint directors to the Boards of the Subsidiaries; and
	 
	7.2.3	 	the right to attend every general meeting of the shareholders of the Subsidiaries and to
exercise the votes attaching to the Shares at such meeting.

	7.3	 	For the avoidance of doubt, for so long as there is no occurrence of an Event of Default, the
provisions of clauses 7.1 and 7.2 above will not apply.

	8.	 	REALISATION

	8.1	 	Upon the occurrence of an Event of Default, the Cedent hereby irrevocably and unconditionally
authorises and empowers the Facility Agent, without any further authority or consent of any
nature whatsoever required from the Cedent, and in its own name or the name, in any of the
Finance Parties or in the name of the Cedent, to:

 

Page 15.

	8.1.1	 	exercise all the rights, powers and privileges attaching to the Shares and the Rights and
Interests;
	 
	8.1.2	 	authorise any director of the Facility Agent to sign, on behalf of the Cedent and in the
name of the Cedent, any security transfer form or other document that may be necessary to give
effect to any sale of any of the Shares or Rights and Interests made by the Finance Parties in
terms of this clause 8;
	 
	8.1.3	 	receive payment for, delivery of and/or performance in respect of, the Shares or Rights and
Interests in its own name;
	 
	8.1.4	 	sell or purchase or otherwise realise or transfer all or some of the Shares or the Rights
and Interests on such terms and in such manner as the Facility Agent may in their sole
discretion decide;
	 
	8.1.5	 	institute any legal proceedings which the Facility Agent may deem necessary in connection
with any sale, purchase or other transfer of any of the Shares and Rights and Interests;
and/or
	 
	8.1.6	 	compromise any Right and Interest, grant any extension or other indulgence in respect of any
such Right and Interest, or agree to vary the terms of any such Right and Interest, or realise
any security or suretyship held for any such Right and Interest.

	8.2	 	On the Facility Agent taking any action in terms of clause 8.1, the Cedent shall on demand by
the Facility Agent:

	8.2.1	 	notify all persons required by the Facility Agent in writing that payment for, delivery of
or performance in respect of the relevant Shares and Rights and Interests must be made to the
Facility Agent and that payment, delivery or performance to the Cedent or to anyone else will
not constitute valid payment,

 

Page 16.

	 	 	delivery or performance, and the Facility Agent shall be
entitled to do likewise. The Cedent shall on demand by the Facility Agent provide proof that
such notification has been duly given;

	8.2.2	 	refuse to accept any payment, delivery or performance tendered in respect of any of the
Shares and Rights and Interests and order that such payment, delivery or performance be
tendered to the Facility Agent;
	 
	8.2.3	 	without charge, permit the Facility Agent to have access to and to work at the Cedent’s
premises and to use the Cedent’s facilities and personnel for the purposes of enforcing its
rights under this Agreement;
	 
	8.2.4	 	if the Cedent fails to fulfil promptly is obligations detailed in the Finance Documents to
which it is a party, the Facility Agent may cause such obligations to be fulfilled and recover
from the Cedent any expenses incurred by the Facility Agent; and/or
	 
	8.2.5	 	at its own cost, carry out any directions the Facility Agent may give in regard to the
realisation of the Shares and the Rights and Interests and sign any document or do any other
act necessary to vest the Rights and Interests in the Finance Parties or otherwise necessary
to perfect the cessions.

	8.3	 	Any amount realised by the Facility Agent, on the realisation of the Shares and/or the Rights
and Interests in terms of this clause 8, which is in excess of the amount owing by the Cedent
to the Finance Parties in respect of the Secured Obligations, shall be repayable to the Cedent
within 10 (ten) Business Days after the complete, unconditional and irrevocable fulfilment of
all of the Secured Obligations together with interest thereon calculated at the Deposit Rate
from

 

Page 17.

	 	 	the date of receipt of such amount by the Facility Agent to the date of refund to the
Borrower.

	9.	 	EXERCISE OF RIGHTS

The rights of the Finance Parties under this Agreement:

	9.1	 	may be exercised as often as necessary;
	 
	9.2	 	may be exercised in respect of all or any of the Secured Obligations;
	 
	9.3	 	may be exercised by the Facility Agent on behalf of all the Finance Parties;
	 
	9.4	 	are cumulative and not exclusive of their rights under general law; and
	 
	9.5	 	may be waived only in writing and specifically.

	10.	 	APPROPRIATION OF PROCEEDS

The Facility Agent may appropriate all amounts received pursuant to the collection, sale or
other realisation of the Shares and/or the Rights and Interests to the repayment of amounts
due and payable by the Borrower under the Senior Facility Agreement in such manner as the
Facility Agent in its sole discretion sees fit.

	11.	 	DURATION

This Agreement is a continuing covering security and will terminate only upon the
unconditional and irrevocable final discharge or release, as the case may be, of all the
Secured Obligations. In particular, this Agreement shall not terminate by reason solely of
the fact that there may at any time be no or reduced obligations or debts owing by the Cedent
to the Finance Parties.

 

Page 18.

	12.	 	ADDITIONAL SECURITY

This Agreement is in addition to and not in substitution for any other security held or
hereafter to be held by the Finance Parties the Cedent or any third party in connection with
the Secured Obligations or otherwise and the Facility Agent shall, without prejudice to its
rights hereunder, be entitled to release any such additional security held by it.

	13.	 	BORROWER BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES

	13.1	 	The Cedent agrees that on signature hereof it will be bound in terms of this Agreement to the
full extent thereof, despite the fact that:

	13.1.1	 	any intended additional security from the Cedent for the debts secured by this Agreement may
not be obtained or protected or may be released or may cease to be held for any other reason;
	 
	13.1.2	 	the Finance Parties and the Cedent may agree a variation or novation of the Senior Facility
Agreement;
	 
	13.1.3	 	the Facility Agent may grant any indulgences to the Cedent or may not exercise any one or
more of its rights hereunder or under the Senior Facility Agreement, either timeously or at
all; and
	 
	13.1.4	 	any other fact or circumstance may arise (including any act or omission by the Finance
Parties) on which the Cedent might otherwise be able to rely on a defence based on waiver
(other than an express waiver) or estoppel.

	13.2	 	If the Cedent suffers any loss arising from any of the facts, circumstances, acts or
omissions referred to above, the Cedent will have no claim against the Finance Parties in
respect thereof.

 

Page 19.

	14.	 	FURTHER CESSIONS

Save as contemplated by the Finance Documents, the Cedent shall not grant any further
cessions of the Rights and Interests.

	15.	 	RIGHTS AND INTERESTS TO BE KEPT FREE OF ENCUMBRANCES

The Cedent shall at all times keep the Rights and Interests free of judicial attachments,
notarial bonds and other encumbrances, and shall not prejudice, compromise, grant any
indulgences or agree to vary the terms of any document creating any Right and Interest or
release any security held in respect of any Right and Interest without the prior written
consent of the Facility Agent.

	16.	 	EXEMPTION FROM LIABILITY

The Finance Parties and their officers, trustees, agents, beneficiaries, employees and
advisors shall not be liable for any loss or damage, whether direct, indirect,
consequential or otherwise, suffered by the Cedent arising from any cause in connection with
this Agreement, whether the loss or damage results from delict, negligence or any other cause
and whether this Agreement has been terminated or not, other than as a result of the Finance
Party’s gross negligence or wilful misconduct.

	17.	 	KEEPING, INSPECTION AND DELIVERY OF RECORDS

The Cedent shall at all times keep up-to-date records of the Rights and Interests ceded as
security to the Finance Parties and shall comply with any reasonable directions the Facility
Agent may give in regard to the keeping of those records.

 

Page 20.

	18.	 	CERTIFICATE OF INDEBTEDNESS

A certificate signed by an officer of any of the Facility Agent whose appointment need not be
proved, reflecting:

	18.1	 	the amount owing by the Cedent to the Finance Parties under the Finance Documents and the due
date for payment of such amounts; and/or
	 
	18.2	 	the amount(s) realised by the realisation or sale of all or any of the Cedent’s Security
Rights and the date(s) of realisation thereof;

will be prima facie evidence of the contents thereof.

	19.	 	RENUNCIATION OF BENEFITS

The Cedent hereby renounces the legal benefits and exceptions of non numeratae pecuniae, non
causa debiti, revision of accounts and errore calculi, the Cedent declaring itself to be
fully acquainted with the full meaning and effect of this renunciation.

	20.	 	STIPULATION FOR THE BENEFIT OF NEW LENDERS

The provisions of this Agreement, which confer benefits upon the Finance Parties, shall
constitute stipulations for the benefit of any person becoming a Lender in accordance with
the provisions of clause 26 (Change of Party) of the Senior Facility Agreement, capable of
acceptance by such person at any time. To the extent that a splitting of claims arises as a
result of the provisions of this clause 20, the Borrower hereby consents to such splitting of
claims.

 

Page 21.

	21.	 	NOTICES AND DOMICILIA

	21.1	 	Notices

	21.1.1	 	Each Party chooses the addresses set out opposite its name below as its addresses to which
any written notice in connection with this Agreement may be addressed.

	 	 	 	 	 	 	 
	21.1.1.1

	 	Lenders:
	 	 	 	4th Floor, F Block

135 Rivonia Road

SANDTON
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
Attention
	 	:

:
	 	(011) 295 3902

Head: Project Management
	 
	 	 	 	 	 	 
	21.1.1.2

	 	Facility Agent:
	 	 	 	4th Floor, F Block

135 Rivonia Road

SANDTON
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
Attention
	 	:

:
	 	(011) 295 3902

Head: Project Management
	 
	 	 	 	 	 	 
	21.1.1.3

	 	Cedent:
	 	 	 	Block 27

Randfontein Office Park

Cnr Main Reef Road and Ward Avenue

RANDFONTEIN
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
Attention
	 	:

:
	 	27 11 411 2070

The Company Secretary

	21.1.2	 	Any notice or communication required or permitted to be given in terms of this Agreement
shall be valid and effective only if in writing but it shall be competent to give notice by
telefax transmitted to its telefax number set out opposite its name above.
	 
	21.1.3	 	Either Party may by written notice to the other Party change its chosen address and/or
telefax number for the purposes of clause 21.1.1 to any

 

Page 22.

	 	 	other address) and/or telefax number,
provided that the change shall become effective on the 14th (fourteenth) day after
the receipt of the notice by the addressee.

	21.1.4	 	Any notice to a Party contained in a correctly addressed envelope and delivered by hand to a
responsible person during ordinary business hours at its chosen physical address in terms of
clause 21.1.1, shall be deemed to have been received on the day of delivery.
	 
	21.1.5	 	Any notice by telefax to a Party at its telefax number shall be deemed to have been received
on the 1st (first) Business Day after the date of transmission.
	 
	21.1.6	 	Notwithstanding anything to the contrary herein contained, a written notice or communication
actually received by a Party shall be an adequate written notice or communication to it,
notwithstanding that it was not sent to or delivered at its chosen address and/or telefax
number.

	21.2	 	Domicilia

	21.2.1	 	Each of the Parties chooses its physical address referred to in clause 21.1 as its
domicilium citandi et executandi at which documents in legal proceedings in connection with
this Agreement may be served.
	 
	21.2.2	 	Either Party may by written notice to the other Party change its domicilium from time to
time to another address, not being a post office box or a poste restante, in South Africa;
provided that any such change shall only be effective on the fourteenth day after deemed
receipt of the notice by the other Party pursuant to clause 21.1.4 or 21.1.5, as the case may
be.

 

Page 23.

	22.	 	GOVERNING LAW

The entire provisions of this Agreement shall be governed by and construed in accordance with
the laws of South Africa.

	23.	 	JURISDICTION

The Parties hereby irrevocably and unconditionally consent to the non-exclusive jurisdiction
of the Witwatersrand Local Division of the High Court of South Africa (or any successor to
that division) in regard to all matters arising from this Agreement.

	24.	 	SEVERABILITY

Each provision in this Agreement is severable from all others, notwithstanding the manner in
which they may be linked together or grouped grammatically, and if in terms of any judgment
or order, any provision, phrase, sentence, paragraph or clause is found to be defective or
unenforceable for any reason, the remaining provisions, phrases, sentences, paragraphs and
clauses shall nevertheless continue to be of full force. In particular, and without limiting
the generality of the aforegoing, the Parties hereto acknowledge their intention to continue
to be bound by this Agreement notwithstanding that any provision may be found to be
unenforceable or void or voidable, in which event the provision concerned shall be severed
from the other provisions, each of which shall continue to be of full force.

	25.	 	GENERAL

	25.1	 	This document constitutes the sole record of the agreement between the Parties in regard to
the subject matter thereof.
	 
	25.2	 	No Party shall be bound by any express or implied term, representation, warranty, promise or
the like, not recorded herein.

 

Page 24.

	25.3	 	No addition to, variation or consensual cancellation of this Agreement and no extension of
time, waiver or relaxation or suspension of any of the provisions or terms of this Agreement
shall be of any force or effect unless in writing and signed by or on behalf of all the
Parties.
	 
	25.4	 	No latitude, extension of time or other indulgence which may be given or allowed by any Party
to any other Party in respect of the performance of any obligation hereunder or enforcement of
any right arising from this Agreement and no single or partial exercise of any right by any
Party shall under any circumstances be construed to be an implied consent by such Party or
operate as a waiver or a novation of, or otherwise affect any of that Party’s rights in terms
of or arising from this Agreement or estop such Party from enforcing, at any time and without
notice, strict and punctual compliance with each and every provision or term hereof.
	 
	25.5	 	The Parties undertake at all times to do all such things, to perform all such acts and to
take all such steps and to procure the doing of all such things, the performance of all such
actions and the taking of all such steps as may be open to them and necessary for or
incidental to the putting into effect or maintenance of the terms, conditions and import of
this Agreement.
	 
	25.6	 	Save as is specifically provided in this Agreement, no Party shall be entitled to cede or
delegate any of its rights or obligations under this Agreement without the
prior written consent of the other Parties affected by such transfer of rights or
obligations, which consent may not unreasonably be withheld or delayed.

	26.	 	COSTS

	26.1	 	The Cedent shall bear the costs of and incidental to the negotiation, preparation and
execution of this Agreement.

 

Page 25.

	26.2	 	All legal costs incurred by either Party in consequence of any default of the provisions of
this Agreement by the other Party shall be payable on demand by the defaulting Party on the
scale as between attorney and own client and shall include collection charges, the costs
incurred by the non-defaulting Party in endeavouring to enforce such rights prior to the
institution of legal proceedings and the costs incurred in connection with the satisfaction or
enforcement of any judgement awarded in favour of the non-defaulting Party in relation to its
rights in terms of or arising out of this Agreement.

	27.	 	COUNTERPARTS

This Agreement may be executed in any number of counterparts and by different Parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same Agreement.

THE NEXT PAGE IS THE SIGNATURE PAGE

 

Page 26.

SIGNED at SANDTON on this the 27th day of SEPTEMBER 2007.

	 	 	 	 	 
	 	 	For and on behalf of
	 	 	NEDBANK LIMITED (acting through its
	 	 	NEDBANK CAPITAL division)
	 	 	(as “Original Lender” and “Facility Agent”)
	 
	 	 	 	 
	 

	 	 

Name:

Capacity:

Who warrants his authority hereto
	 	 
	 
	 	 	 	 
	 

	 	 

Name:

Capacity:

Who warrants his authority hereto
	 	 

SIGNED at SANDTON on this the 27th day of SEPTEMBER 2007.

	 	 	 	 	 
	 	 	For and on behalf of
	 	 	AFRICAN RAINBOW MINERALS GOLD
	 	 	LIMITED
	 	 	(as “Cedent”)
	 
	 	 	 	 
	 

	 	 

Name:

Capacity:

Who warrants his authority hereto
	 	 

 

Page 27.

SCHEDULE 1

SUBSIDIARIES

	1.	 	ARMgold/Harmony Joint Investment Company (Proprietary) Limited;
	 
	2.	 	ARMgold/Harmony Freegold Joint Venture Company (Proprietary) Limited.

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